Document:

Exhibit

SECOND AMENDED AND RESTATED 
RIGHTS AGREEMENT 
 
AMTECH SYSTEMS, INC. 
 
and 
 
COMPUTERSHARE TRUST COMPANY, N.A. 
Rights Agent 
Dated as of October 1, 2015 

Table of Contents
	
				
	 
	 
	 
	Page Number

	Section 1.
	 
	Certain Definitions
	3

	Section 2.
	 
	Appointment of Rights Agent
	9

	Section 3.
	 
	Issue of Rights Certificates
	9

	Section 4.
	 
	Form of Rights Certificates
	11

	Section 5.
	 
	Countersignature and Registration
	12

	Section 6.
	 
	Transfer, Split Up, Combination and Exchange of Rights Certificates; Mutilated, Destroyed, Lost or Stolen Rights Certificates
	12

	Section 7.
	 
	Exercise of Rights; Purchase Price; Expiration Date of Rights
	13

	Section 8.
	 
	Cancellation and Destruction of Rights Certificates
	15

	Section 9.
	 
	Reservation and Availability of Capital Stock
	15

	Section 10.
	 
	Securities Record Date
	16

	Section 11.
	 
	Adjustment of Purchase Price, Number and Kind of Shares or Number of Rights

	17

	Section 12.
	 
	Certificate of Adjusted Purchase Price or Number of Shares

	23

	Section 13.
	 
	Consolidation, Merger or Sale or Transfer of Assets or Earning Power

	23

	Section 14.
	 
	Fractional Rights and Fractional Shares

	26

	Section 15.
	 
	Rights of Action
	27

	Section 16.
	 
	Agreement of Rights Holders
	28

	Section 17.
	 
	Rights Certificate Holder Not Deemed a Stockholder

	28

	Section 18.
	 
	Concerning the Rights Agent
	28

	Section 19.
	 
	Merger or Consolidation or Change of Name of Rights Agent
	29

	Section 20.
	 
	Rights and Duties of Rights Agent
	29

	Section 21.
	 
	Change of Rights Agent
	31

	Section 22.
	 
	Issuance of New Rights Certificates
	32

	Section 23.
	 
	Redemption and Termination

	33

	Section 24.
	 
	Exchange
	33

	Section 25.
	 
	Notice of Certain Events

	34

	Section 26.
	 
	Notices

	35

	Section 27.
	 
	Supplements and Amendments

	36

	Section 28.
	 
	Successors

	36

	Section 29.
	 
	Determinations and Actions by the Board, Etc

	36

	Section 30.
	 
	Benefits of this Agreement
	36

	Section 31.
	 
	Severability
	37

	Section 32.
	 
	Governing Law
	37

	Section 33.
	 
	Counterparts
	37

	Section 34.
	 
	Descriptive Headings
	37

	Section 35.
	 
	Force Majeure
	37

                    

SECOND AMENDED AND RESTATED 
RIGHTS AGREEMENT
This SECOND AMENDED AND RESTATED RIGHTS AGREEMENT, dated as of October 1, 2015 (this “Rights Agreement”), between Amtech Systems, Inc., an Arizona corporation (the “Company”), and Computershare Trust Company, N.A., as Rights Agent (the “Rights Agent”). 
WHEREAS, on May 17, 1999 (the “Rights Dividend Declaration Date”), the Board of Directors of the Company (the “Board”) authorized the issuance of, and declared a dividend payable in, one right for each share of Common Stock of the Company outstanding at the close of business on June 9, 1999 (the “Record Date”), each such right initially representing the right to purchase one one-thousandth of a share of Preferred Stock of the Company having the rights, powers and preferences set forth in the form of Certificate of Designation, Preferences and Rights attached hereto as Exhibit A, upon the terms and subject to the conditions hereinafter set forth (individually, a “Right” and collectively, the “Rights”); 
WHEREAS, the Board of Directors of the Company further authorized the issuance of one (as such number may hereinafter be adjusted pursuant to the provisions of Section 11(q) hereof) Right for each share of Common Stock issued between the Record Date (whether originally issued or delivered from the Company’s treasury) and the Distribution Date, and, in certain circumstances provided in Section 22 of this Agreement, after the Distribution Date;
WHEREAS, the Company and American Securities Transfer & Trust, Inc., as the original rights agent, entered into the Rights Agreement, dated as of May 17, 1999; 
WHEREAS, the Company and Rights Agent entered into the Amended and Restated Rights Agree, dated as of December 15, 2008 (the “Prior Agreement”);
WHEREAS, the Board has determined that it is in the best interest of the Company and its shareholders to amend and restate the Prior Agreement, and the Rights Agent has agreed to the amendment and restatement of the Prior Agreement, in each case, as set forth herein;
WHEREAS, the Company has determined that, pursuant to Sections 27 and 29 of the Prior Agreement, the Prior Agreement may be amended and restated as set forth herein, without the approval of the holders of Rights; 
NOW, THEREFORE, in consideration of the premises and the mutual agreements herein set forth, the parties hereby agree as follows: 

Section 1.  Certain Definitions.  For purposes of this Agreement, the following terms have the meanings indicated:  
(a)“Acquiring Person” shall mean collectively any Person who or which, together with all Affiliates and Associates of such Person, shall be the Beneficial Owner of 15% or more of the shares of Common Stock then outstanding (other than as a result of a Permitted Offer) or was such a Beneficial Owner at any time after the date hereof, whether or not such Person together with all Affiliates or Associates of such Person continues to be the Beneficial Owner of 15% or more of the then outstanding Common Stock. Notwithstanding the foregoing, (A) the term “Acquiring Person” shall not include (i) the Company, (ii) any Subsidiary of the Company, (iii) any employee benefit plan of the Company or of any Subsidiary of the 

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Company, (iv) any Person or entity organized, appointed or established by the Company for or pursuant to the terms of any such plan (including, without limitation, any trust or other entity organized, appointed, established or holding common stock for or pursuant to the terms of any such plan),  (v) any Person together with all Affiliates and Associates of such Person who or which becomes the Beneficial Owner of 15% or more of the then outstanding shares of Common Stock as a result of the acquisition of Common Stock directly from the Company, or (vi) any Person that the Board determines  is exempt from this Rights Agreement, which determination shall be made in the sole and absolute discretion of the Board; provided, however, that such determination is made by the Board prior to any Triggering Event; provided, further, that such Person is only exempt from this Rights Agreement for the sole purpose and in accordance with the terms and conditions on which the Board approved such exemption from this Rights Agreement; provided, further, that within five (5) Business Days of the Board making any determination under this clause (vi), the Company shall provide written notification of such determination to the Rights Agent (each of (i) through (vi), an “Exempted Person”); (B) no Person shall become an “Acquiring Person” as a result of an acquisition of Common Stock by the Company which, by reducing the number of such shares then outstanding, increases the proportionate number of shares beneficially owned by such Person together with all Affiliates and Associates of such Person to 15% or more of the outstanding Common Stock, except that if such Person, after such share purchases by the Company, becomes the Beneficial Owner of additional shares of Common Stock constituting 1% or more of the then outstanding shares of Common Stock other than pursuant to a Permitted Offer, such Person shall be deemed to be an “Acquiring Person”; and (C) if the Board determines in good faith that a Person, together with all Affiliates and Associates of such Person, who would otherwise be an “Acquiring Person” has become such inadvertently, and such Person, together with all Affiliates and Associates of such Person, divests as promptly as practicable a sufficient number of shares of Common Stock so that such Person, together with all Affiliates and Associates of such Person, would no longer be an Acquiring Person (or, in the case solely of Derivative Common Shares (as such term is hereinafter defined), such Person terminates the subject derivative transaction or transactions or disposes of the subject derivative security or securities, or establishes to the satisfaction of the Board of Directors that such Derivative Common Shares are not held with any intention of changing or influencing control of the Company), then such Person shall not be deemed to be an “Acquiring Person”. The term “outstanding”, when used with reference to a Person’s Beneficial Ownership of securities of the Company, shall mean the number of such securities then issued and outstanding together with the number of such securities not then actually issued and outstanding which such Person would be deemed to beneficially own hereunder. For the avoidance of doubt, both parties to any transaction involving Derivative Common Shares shall be considered one “Acquiring Person” (with regard to the Derivative Common Shares) for purposes of this Rights Agreement. 
(b)“Act” shall mean the Securities Act of 1933, as amended. 
(c)“Adjustment Shares” shall have the meaning set forth in Section 11(a)(ii) of this Agreement. 
(d)“Affiliate” shall have the meaning set forth in Rule 12b-2 of the General Rules and Regulations under the Exchange Act as amended and in effect on the date hereof. 
(e)“Associate” of a Person shall mean (i) with respect to a corporation (other than the Company or a majority-owned Subsidiary of the Company), any officer or director thereof or of any Subsidiary (as such term is hereinafter defined) thereof, or any Beneficial Owner (as such term is hereinafter defined) of 10% or more of any class of equity security thereof, (ii) with respect to an association, joint venture or other unincorporated organization, any officer or director thereof or of a Subsidiary thereof or any Beneficial Owner of 10% or more ownership interest therein, (iii) with respect to a partnership, any general partner thereof or any limited partner thereof who is, directly or indirectly, the Beneficial Owner of a 10% or greater ownership interest therein, (iv) with respect to a limited liability company, any officer, director or manager thereof or of a Subsidiary thereof or any member thereof who is, directly or indirectly, the Beneficial Owner of a 10% or greater ownership interest therein, (v) with respect to a business trust, any officer or trustee thereof or of any Subsidiary thereof, (vi) with respect to any other trust or an estate, any trustee, executor or 

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similar fiduciary or any Person who has a 10% or greater interest as a beneficiary in the income from or principal of such trust or estate, (vii) with respect to a natural person, any relative or spouse of such person, or any relative of such spouse, who has the same home as such person or who is a director or officer of the registrant or any of its parents or subsidiaries, and (viii) any Affiliate of such Person. 
(f)A Person shall be deemed the “Beneficial Owner” of, and shall be deemed to “beneficially own,” any securities: 
(i)which such Person or any of such Person’s Affiliates or Associates, directly or indirectly, has the right or obligation to acquire (whether such right or obligation is exercisable immediately or only after the passage of time or the fulfillment of a condition or any or all of the foregoing) pursuant to any agreement, arrangement or understanding (whether or not in writing) or upon the exercise of conversion rights, exchange rights, other rights (other than the Rights), warrants or options, or otherwise; provided, however, that a Person shall not be deemed the “Beneficial Owner” of, or to beneficially own,” (A) securities tendered pursuant to a tender or exchange offer made by or on behalf of such Person or any of such Person’s Affiliates or Associates until such tendered securities are accepted for purchase or exchange, or (B) securities issuable upon exercise of Rights at any time prior to the occurrence of a Triggering Event, or (C) securities issuable upon exercise of Rights from and after the occurrence of a Triggering Event which Rights were acquired by such Person or any of such Person’s Affiliates or Associates prior to the Distribution Date or pursuant to Section 3(a) or Section 22 hereof (“Original Rights”) or pursuant to Section 11(i) hereof in connection with an adjustment made with respect to any Original Rights; 
(ii)which such Person or any of such Person’s Affiliates or Associates, directly or indirectly, has the right to vote or dispose of or has “beneficial ownership” of (as determined pursuant to Rule 13d-3 of the General Rules and Regulations under the Exchange Act as amended and in effect on the date hereof), including pursuant to any agreement, arrangement or understanding, whether or not in writing; provided, however, that a Person shall not be deemed the “Beneficial Owner” of, or to “beneficially own,” any security under this subparagraph (ii) as a result of an agreement, arrangement or understanding to vote such security if such agreement, arrangement or understanding: (A) arises solely from a revocable proxy or consent given in response to a public proxy or consent solicitation made pursuant to, and in accordance with, the applicable provisions of the rules and regulations under the Exchange Act as amended and as in effect on the date hereof, and (B) is not also then reportable by such Person on Schedule 13D under the Exchange Act (or any comparable or successor report, other than by reference to a proxy or consent solicitation being conducted by such Person);
(iii)which are beneficially owned, directly or indirectly, by any other Person (or any Affiliate or Associate thereof) with which such Person (or any of such Person’s Affiliates or Associates) has any agreement, arrangement or understanding (whether or not in writing), for the purpose of acquiring, holding, voting (except pursuant to a revocable proxy as described in the proviso to subparagraph (ii) of this paragraph (f)) or disposing of any voting securities of the Company; provided, however, that nothing in this paragraph (f) shall cause a person engaged in business as an underwriter of securities to be the “Beneficial Owner” of, or to “beneficially own,” any securities acquired through such person’s participation in good faith in a bona fide firm commitment underwriting until the expiration of forty days after the date of such acquisition. Notwithstanding anything in this definition of Beneficial Owner to the contrary, a Person who, prior to the Distribution Date, is a member of the Board or an officer of the Company or who is an Affiliate or Associate of a member of the Board or officer of the Company (each, an “Excluded Person”) shall not be deemed to “beneficially own” shares of Common Stock held by another Excluded Person solely by reason of any agreement, arrangement or understanding, written or otherwise, entered into in opposition to any transaction or in support of a Permitted Offer; or
(iv)that are the subject of a derivative transaction entered into by such Person, or derivative security acquired by such Person, which gives such Person the economic equivalent of ownership of an amount of such securities due to the fact that the value of the derivative is explicitly determined by reference to the price or value of such securities, without regard to whether (a) such derivative conveys any 

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voting rights in such securities to such Person, (b) the derivative is required to be, or capable of being, settled through delivery of such securities, or (c) such Person may have entered into other transactions that hedge the economic effect of such derivative. In determining the number of Common Shares deemed Beneficially Owned by virtue of the operation of this Section 1.3(iv), the subject Person shall be deemed to Beneficially Own (without duplication) the number of Common Shares that are synthetically owned pursuant to such derivative transactions or such derivative securities. Such Common Shares that are deemed so Beneficially Owned pursuant to the operation of this Section 1.3(iv) shall be referred to herein as “Derivative Common Shares.”
(g)“Board” shall have the meaning set forth in the Recitals of this Agreement. 
(h)“Business Day” shall mean any day other than a Saturday, Sunday or a day on which banking institutions in the State of Arizona or the Commonwealth of Massachusetts are authorized or obligated by law or executive order to close. 
(i)“Close of business” on any given date shall mean 5:00 p.m., New York City time, on such date; provided, however, that if such date is not a Business Day it shall mean 5:00 p.m., New York City time, on the next succeeding Business Day. 
(j)“Common Stock” shall mean the common stock, par value $0.001 per share, of the Company (or in the event of a subdivision, combination or reclassification with respect to such shares of Common Stock, the shares of Common Stock resulting from such subdivision, combination or reclassification), except, subject to the proviso in Section 13(b) of this Agreement, that “Common Stock” when used with reference to any Person other than the Company (A) which shall be organized in corporate form, shall mean the capital stock or other equity security or equity interest with the greatest voting power to control the management of such Person or, if such other Person is a Subsidiary of another Person, the Person or Persons which ultimately control such first-mentioned Person, or (B) which shall not be organized in corporate form, shall mean units of beneficial interest which shall represent the right to participate in profits, losses, deductions and credits of such Person and which shall be entitled to exercise the greatest voting power to direct the management of such Person, or if such other Person is a Subsidiary of another Person, the Person or Persons which ultimately control such first-mentioned Person. 
(k)“Common Stock Equivalents” shall have the meaning set forth in Section 11(a)(iii) of this Agreement. 
(l)“Company” shall have the meaning set forth in the Preamble. 
(m)“Current Market Price” shall have the meaning set forth in Section 11(d(i). 
(n)“Current Value” shall have the meaning set forth in Section 11(a)(iii) of this Agreement. 
(o)“Distribution Date” shall have the meaning set forth in Section 3(a) of this Agreement. 
(p)“Equivalent preferred stock” shall have the meaning set forth in Section 11(b) of this Agreement. 
(q)“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended and in effect on the date hereof. 
(r)“Exchange Ratio” shall have the meaning set forth in Section 24(a) hereof. 
(s)“Excluded Person” shall have the meaning set forth in Section 1(f) of this Agreement. 
(t)“Exempted Person” shall have the meaning set forth in Section 1(a) of this Agreement. 
(u)“Expiration Date” shall have the meaning set forth in Section 7(a) of this Agreement. 
(v)“Final Expiration Date” shall have the meaning set forth in Section 7(a) of this Agreement.
(w)“Interested Stockholder” shall mean any Acquiring Person or any Affiliate or Associate of an Acquiring Person or any other Person in which such Acquiring Person, Affiliate or Associate has an interest, or any other Person acting directly or indirectly on behalf of or in concert with any such Acquiring Person, Affiliate or Associate. 
(x)“NASDAQ” shall mean the National Association of Securities Dealers Automated Quotation System. 

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(y)“Original Rights” shall have the meaning set forth in Section 1(f)(i) of this Agreement. 
(z)“Permitted Offer” shall mean an acquisition of shares of Common Stock pursuant to a tender offer or an exchange offer for all outstanding shares of Common Stock that meets all of the following requirements: 
(i)the consideration of the offer is cash or publicly traded securities and, in the case of a cash offer, is fully-financed; 
(ii)such offer remains open for at least 60 calendar days from the date it commenced (within the meaning of Rule 14d-2(a), as in effect on the date hereof, under the Exchange Act); 
(iii)on or prior to the date such offer is commenced (within the meaning of Rule 14d-2(a), as in effect on the date hereof, under the Exchange Act), the Person on whose behalf such offer is being made has, and has provided to the Company, firm written commitments from responsible financial institutions, which have been accepted by such Person (or one of its Affiliates), to provide, subject only to customary terms and conditions, funds for such offer which, when added to the amount of cash and cash equivalents which such Person then has available and has irrevocably committed in writing to the Company to utilize for purposes of such offer, will be sufficient to pay for all shares of Common Stock then outstanding and all related expenses; 
(iv)shares representing at least a majority of the Common Stock then outstanding as of the day immediately prior to the date of commencement of such offer (within the meaning of Rule 14d-2(a), as in effect on the date hereof, under the Exchange Act), but excluding therefrom any shares of Common Stock beneficially owned immediately prior to such offer by the Person on whose behalf such offer is being made and such Person’s Affiliates and Associates, are tendered and purchased pursuant to such offer; 
(v)prior to or on the date that such offer is commenced (within the meaning of Rule 14d-2(a), as currently in effect, under the Exchange Act), the Person on whose behalf such offer is being made makes an irrevocable written commitment to the Company (A) to consummate a transaction or transactions promptly upon the completion of such offer in which the consideration in such transaction or transactions is fully-financed cash or publicly-traded securities and whereby all shares of Common Stock not purchased in such offer will be acquired at the same price per share of Common Stock paid in such offer, provided that the Board shall have granted any approvals required to enable such Person to consummate such transaction or transactions following consummation of such offer without obtaining the vote of any other stockholder, (B) that such Person will not make any amendment to the original offer which reduces the per share price offered (other than a reduction to reflect any dividend declared by the Company after the commencement of such offer or any material change in the capital structure of the Company initiated by the Company after the commencement of such offer, whether by way of recapitalization, reorganization, repurchase or otherwise), changes the form of consideration offered, reduces the number of shares being sought or which is in any other respect materially adverse to the holders of Common Stock (other than the Person on whose behalf such Offer is being made and such Person’s Affiliates and Associates); and
(vi)such offer is at a price and on other terms determined by at least a majority of the members of the Board, after receiving an opinion from one or more nationally recognized investment banking firms selected by the Board that the price offered is fair, from a financial point of view, to be (A) fair (taking into account all factors which the Board may deem relevant, including, without limitation, the Company’s long-term prospects and prices which could reasonably be achieved if the Company or its assets were sold on an orderly basis designed to realize maximum value) to stockholders (other than the Person or any Affiliate or Associate hereof on whose behalf the offer is being made) and (B) otherwise in the best interests of the Company and its stockholders (other than the Person or any Affiliate or Associate thereof on whose behalf the offer is being made) taking into account all factors that the Board may deem relevant; provided, however, that (1) such determination is made by the Board prior to the purchase of shares under such tender offer or exchange offer, and (2) a majority of the members of the Board are independent (within the meaning of Rule 4200 of the NASDAQ Stock Market rules (or any successor rule) and under applicable Nevada case law) and disinterested (each such member is neither an Acquiring Person or a Person on whose 

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behalf the tender offer for Common Stock is being made, nor an Affiliate, Associate, nominee or representative of an Acquiring Person or a Person on whose behalf the tender offer for Common Stock is being made). 
(aa)“Person” shall mean any individual, firm, corporation, partnership, limited liability company, trust or other entity, and shall include any successor (by merger or otherwise) thereof or thereto. 
(ab)“Preferred Stock” shall mean shares of Series A Participating Preferred Stock, par value $0.001 per share, of the Company (or in the event of a subdivision, combination or reclassification with respect to such shares of Preferred Stock, the shares of Preferred Stock resulting from such subdivision, combination or reclassification), and, to the extent that there is not a sufficient number of shares of Series A Participating Preferred Stock authorized to permit the full exercise of the Rights, any other series of preferred stock of the Company designated for such purpose containing terms substantially similar to the terms of the Series A Participating Preferred Stock. 
(ac)“Principal Party” shall have the meaning set forth in Section 13(b) of this Agreement. 
(ad)“Prior Agreement” shall have the meaning set forth in the Recitals of this Agreement. 
(ae)“Purchase Price” shall have the meaning set forth in Section 4(a) of this Agreement. 
(af)“Record Date” shall have the meaning set forth in the Recitals of this Agreement. 
(ag)“Redemption Date” shall have the meaning set forth in Section 7(a) of this Agreement. 
(ah)“Redemption Price” shall have the meaning set forth in Section 23 of this Agreement. 
(ai)Rights” shall have the meaning set forth in the first “WHEREAS” clause at the beginning of this Agreement. 
(aj)“Rights Agent” shall have the meaning set forth in the introductory paragraph of this Agreement. 
(ak)“Rights Agreement” shall have the meaning set forth in the Recitals of this Agreement. 
(al)“Rights Certificates” shall have the meaning set forth in Section 3(a) of this Agreement. 
(am)“Rights Dividend Declaration Date” shall have the meaning set forth in the Recitals of this Agreement. 
(an)“Section 11(a)(ii) Event” shall have the meaning set forth in Section 11(a)(ii) of this Agreement. 
(ao)“Section 11(a)(ii) Trigger Date” shall have the meaning set forth in Section 11(a)(iii) of this Agreement. 
(ap)“Section 13 Event” shall mean any event described in clauses (x), (y) or (z) of Section 13(a) of this Agreement. 
(aq)“Spread” shall have the meaning set forth in Section 11(a)(iii) of this Agreement. 
(ar)“Stock Acquisition Date” shall mean the earlier of the date of (i) the public announcement (which, for purposes of this definition, shall include, without limitation, a report filed under the Exchange Act) by the Company or an Acquiring Person that an Acquiring Person has become such or (ii) the public disclosure of facts by the Company or an Acquiring Person indicating that an Acquiring Person has become an Acquiring Person, which date may occur prior to the Record Date; provided, however, that if such Person is determined not to have become an Acquiring Person pursuant to Section 1(a)(C) hereof, then no Stock Acquisition Date shall be deemed to have occurred. 
(as)“Subsidiary” shall mean, with reference to any Person, any corporation or other Person of which an amount of voting securities sufficient to elect at least a majority of the directors or others having similar authority over such corporation or other Person is beneficially owned, directly or indirectly, by such first-named Person, or otherwise controlled by such first-named Person. 
(at)“Substitution Period” shall have the meaning set forth in Section 11(a)(iii) of this Agreement. 
(au)“Summary of Rights” shall have the meaning set forth in Section 3(b) of this Agreement. 
(av)“Trading Day” shall have the meaning set forth in Section 11(d)(i) of this Agreement. 

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(aw)“Transaction” shall mean any merger, consolidation or sale of assets or earning power described in Section 13(a) hereof or any acquisition of Common Stock which, without regard to any required approval of the Company, would result in a Person becoming an Acquiring Person. Notwithstanding the foregoing, a Transaction shall not include any transaction that would result in a Person becoming an Acquiring Person which the Board, in its absolute and sole discretion and prior to its consummation, has determined to be exempt from this Rights Agreement; provided, however, that such transaction must be conducted on precisely the same terms and conditions on which the Board approved such transaction to be exempt from this Rights Agreement (an “Exempt Transaction”).  Within five (5) Business Days of the Board making a determination under the preceding sentence that a transaction is an Exempt Transaction, the Company shall provide written notification of such determination to the Rights Agent.
(ax)“Triggering Event” shall mean any Section 11(a)(ii) Event or any Section 13 Event. No Exempt Transaction shall be a Triggering Event for purposes of this Rights Agreement.
(ay)“Vote” shall mean, with respect to any entity, the ability to cast a vote at a stockholders’, members’ or comparable meeting of such entity with respect to the election of directors, managers or other members of such entity’s governing body, or the ability to cast a general partnership or comparable vote. 
(az)“Voting Power” shall mean, with respect to any entity as at any date, the aggregate number of Votes outstanding as at such date in respect of such entity. 
(ba)“Voting Securities” shall mean the Common Stock and any other securities of the Company the holders of which are ordinarily, in the absence of contingencies, entitled to Vote, even though the right to such Vote has been suspended by the happening of such a contingency. 
(bb)“Voting Stock” shall mean (i) the Common Stock of the Company and (ii) any other shares of capital stock of the Company entitled to vote generally in the election of directors. For purposes of this Agreement, Voting Stock shall include securities of the type referred to in clauses (i) and (ii) above that trade on a “when issued” basis on a national securities exchange or an inter-dealer quotation system. For purposes of this Agreement, a stated percentage of the Voting Stock shall mean a number of shares of the Voting Stock as shall equal in voting power that stated percentage of the total voting power of the then outstanding shares of Voting Stock in the election of a majority of the Board or in respect of any merger, consolidation, sale of all or substantially all of the Company’s assets, liquidation, dissolution or winding up. 

Section 2.  Appointment of Rights Agent.  The Company hereby appoints the Rights Agent to act as rights agent for the Company in accordance with the terms and conditions hereof, and the Rights Agent hereby accepts such appointment. The Company may from time to time appoint such co-Rights Agents as it may deem necessary or desirable, upon ten (10) days’ prior written notice to the Rights Agent. The Rights Agent shall have no duty to supervise, and in no event shall be liable for, the acts or omissions of any such co-Rights Agent. 

Section 3.  Issue of Rights Certificates.  
(a)Until the earlier of (i) the Close of business on the tenth Business Day after the Stock Acquisition Date (or, if the tenth Business Day after the Stock Acquisition Date occurs before the Record Date, the close of business on the Record Date), or (ii) the Close of business on the tenth Business Day (or such later date as the Board shall determine) after the date of the earlier of commencement by any Person (other than an Exempted Person) of, or the first public announcement of the intention of any Person (other than an Exempted Person) to commence, a tender or exchange offer (other than a Permitted Offer) the consummation of which would result in any Person becoming an Acquiring Person (including any such date which is on or after the date of this Agreement and prior to the issuance of the Rights) (the earlier of (i) and (ii) being herein referred to as the “Distribution Date”), (x) the Rights will be evidenced (subject to the provisions of Section 3(b) of this Agreement) by the certificates for the Common Stock registered in the names of the record holders of the Common Stock (which certificates for Common Stock shall be deemed also to be certificates for Rights) and not by separate certificates, and (y) the Rights will be transferable only 

9

in connection with the transfer of the underlying shares of Common Stock (including a transfer to the Company); provided, however, that if a tender or exchange offer is terminated prior to the occurrence of a Distribution Date, then no Distribution Date shall occur as a result of such tender or exchange offer. The Board may defer the date set forth in clause (ii) of the preceding sentence (with prompt written notice thereof to the Rights Agent) to a specified later date or to an unspecified later date, each to be determined by action of the Board. As soon as practicable after the Distribution Date, the Company shall prepare and execute, the Rights Agent will countersign, and the Company will send or cause to be sent (and the Rights Agent will, if requested and provided with all necessary information, send) by first-class, insured, postage prepaid mail, to each record holder of the Common Stock as of the Close of business on the Distribution Date, at the address of such holder shown on the registry books for the Common Stock of the Company, one or more rights certificates, in substantially the form of Exhibit B hereto (the “Rights Certificates”), evidencing one Right for each share of Common Stock so held, subject to adjustment as provided herein. In the event that an adjustment in the number of Rights per share of Common Stock has been made pursuant to Section 11(q) hereof, at the time of distribution of the Rights Certificates, the Company shall make the necessary and appropriate rounding adjustments (in accordance with Section 14(a) hereof) so that Rights Certificates representing only whole numbers of Rights are distributed and cash is paid in lieu of any fractional Rights. As of and after the Distribution Date, the Rights will be evidenced solely by such Rights Certificates and may be transferred by the transfer of the Rights Certificate as permitted hereby, separately and apart from any transfer of one or more shares of Common Stock. 
(b)As promptly as practicable following the Record Date, the Company will send a copy of a Summary of Rights, in substantially the form attached hereto as Exhibit C (the “Summary of Rights”), by first-class, postage prepaid mail, to each record holder of the Common Stock as of the Close of business on the Record Date, at the address of such holder shown on the records of the transfer agent. With respect to certificates for the Common Stock outstanding as of the Record Date, until the Distribution Date, the Rights will be evidenced by such certificates for the Common Stock and the record holders of the Common Stock shall also be the record holders of the associated Rights. Until the earlier of the Distribution Date or the Expiration Date, the transfer of any certificates representing shares of Common Stock in respect of which Rights have been issued shall also constitute the transfer of the Rights associated with such shares of Common Stock. 
(c)The Company shall promptly notify the Rights Agent in writing upon the occurrence of the Distribution Date and, if such notification is given orally, the Company shall confirm same in writing on or prior to the Business Day next following. Until such notice is received by the Rights Agent, the Rights Agent may presume conclusively for all purposes that the Distribution Date has not occurred. 
(d)Rights shall be issued in respect of all shares of Common Stock which are issued (whether originally issued or from the Company’s treasury) after the Record Date but prior to the earlier of the Distribution Date or the Expiration Date, and, in certain circumstances provided in Section 22 of this Agreement, after the Distribution Date. Certificates representing such shares of Common Stock shall also be deemed to be certificates for Rights and shall bear the following legend: 
This certificate also evidences and entitles the holder hereof to certain Rights as set forth in the Second Amended and Restated Rights Agreement between Amtech Systems, Inc., an Arizona corporation (the “Company”), and Computershare Trust Company, N.A., dated as of October 1, 2015, as it may be amended from time to time (the “Rights Agreement”), the terms of which are hereby incorporated herein by reference and a copy of which is on file at the principal offices of the Company. Under certain circumstances, as set forth in the Rights Agreement, such Rights will be evidenced by separate certificates and will no longer be evidenced by this certificate. The Company will mail to the holder of this certificate a copy of the Rights Agreement, as in effect on the date of mailing, without charge, promptly after receipt of a written request therefor. Under certain circumstances set forth in the Rights Agreement, Rights issued to, or Beneficially Owned or held by, any Person who is, was or becomes 

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an Acquiring Person or any Affiliate or Associate thereof (as such terms are defined in the Rights Agreement), whether currently Beneficially Owned or held by or on behalf of such Person or by any subsequent holder, may become null and void. 
With respect to such certificates containing the foregoing legend, until the earlier of the Distribution Date or the Expiration Date, the Rights associated with the Common Stock represented by such certificates shall be evidenced by such certificates alone and record holders of Common Stock shall also be the record holders of the associated Rights, and the transfer of any of such certificates shall also constitute the transfer of the Rights associated with the Common Stock represented by such certificates. In the event the Company purchases or acquires any Common Stock after the Record Date but prior to the Distribution Date, any Rights associated with such Common Stock shall be deemed canceled and retired so that the Company shall not be entitled to exercise any Rights associated with the Common Stock which are no longer outstanding. Notwithstanding this paragraph (d), the omission of a legend shall not affect the enforceability of any part of this Rights Agreement or the rights of any holder of the Rights. 
(e)In addition, in connection with the issuance or sale of shares of Common Stock following the Distribution Date and prior to the Expiration Date, the Company (i) shall, with respect to shares of Common Stock so issued or sold (x) pursuant to the exercise of stock options or under any employee plan or arrangement or (y) upon the exercise, conversion or exchange of other securities issued by the Company prior to the Distribution Date and (ii) may, in any other case, if deemed necessary or appropriate by the Board, issue Rights Certificates representing the appropriate number of Rights in connection with such issuance or sale; provided that no such Rights Certificate shall be issued if, and to the extent that, (i) the Company shall be advised by counsel that such issuance would create a significant risk of material adverse tax consequences to the Company or the Person to whom such Rights Certificate would be issued or (ii) appropriate adjustment shall otherwise have been made in lieu of the issuance thereof. 

Section 4.  Form of Rights Certificates.  
(a)The Rights Certificates (and the forms of election to purchase and of assignment to be printed on the reverse thereof) shall each be substantially in the form set forth in Exhibit B hereto and may have such marks of identification or designation and such legends, summaries or endorsements printed thereon as the Company may deem appropriate (but which do not affect the rights, duties or immunities of the Rights Agent) and as are not inconsistent with the provisions of this Agreement, or as may be required to comply with any applicable law or with any rule or regulation made pursuant thereto, or with any rule or regulation of any stock exchange or inter-dealer quotation system or transactor reporting system on which or with whom the Rights may from time to time be listed or quoted, or to conform to usage or otherwise. Subject to the provisions of Section 11 and Section 22 hereof, the Rights Certificates, whenever distributed, shall entitle the record holders thereof to purchase such number of one one-thousandths of a share of Preferred Stock as shall be set forth therein at the price set forth therein (such exercise price per one one-thousandth of a share, the “Purchase Price”), but the amount and the type of securities purchasable upon the exercise of each Right and the Purchase Price thereof shall be subject to adjustment as provided herein. 
(b)Any Rights Certificate issued pursuant to Section 3(a) or Section 22 hereof that represents Rights Beneficially Owned by: (i) an Acquiring Person or any Associate or Affiliate of an Acquiring Person, (ii) a transferee of an Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee after the Acquiring Person becomes such, or (iii) a transferee of an Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee prior to or concurrently with the Acquiring Person becoming such and receives such Rights pursuant to either (A) a transfer (whether or not for consideration) from the Acquiring Person to holders of equity interests in such Acquiring Person or to any Person with whom such Acquiring Person has any continuing agreement, arrangement or understanding regarding the transferred Rights or (B) 

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a transfer which the Board has determined is part of a plan, arrangement or understanding which has as a primary purpose or effect avoidance of Section 7(e) hereof, and any Rights Certificate issued pursuant to Section 6 or Section 11 hereof upon transfer, exchange, replacement or adjustment of any other Rights Certificate referred to in this sentence, shall contain (to the extent the Rights Agent has notice thereof and to the extent feasible) the following legend: 
The Rights represented by this Rights Certificate are or were beneficially owned by a Person who was or became an Acquiring Person or an Affiliate or Associate of an Acquiring Person (as such terms are defined in the Rights Agreement). Accordingly, this Rights Certificate and the Rights represented hereby may become, or may have already become, null and void in the circumstances specified in Section 7(e) of such Agreement. 
The provisions of Section 7(e) of this Agreement shall be operative whether or not the foregoing legend is contained in any such Rights Certificate. 

Section 5.  Countersignature and Registration.  
(a)The Rights Certificates shall be executed on behalf of the Company by its Chairman of the Board, its Chief Executive Officer, its President, its Chief Financial Officer or any Vice President, either manually or by facsimile signature, and shall have affixed thereto the Company’s seal or a facsimile thereof which shall be attested by the Secretary or an Assistant Secretary of the Company, either manually or by facsimile signature. The Rights Certificates shall be countersigned by an authorized signatory of the Rights Agent, either manually or by facsimile signature, and shall not be valid for any purpose unless so countersigned. In case any officer of the Company who shall have signed any of the Rights Certificates shall cease to be such officer of the Company before countersignature by the Rights Agent and issuance and delivery by the Company, such Rights Certificates, nevertheless, may be countersigned by an authorized signatory of the Rights Agent and issued and delivered by the Company with the same force and effect as though the person who signed such Rights Certificates had not ceased to be such officer of the Company. Any Rights Certificates may be signed on behalf of the Company by any person who, at the actual date of the execution of such Rights Certificate, shall be a proper officer of the Company to sign such Rights Certificate, although at the date of the execution of this Rights Agreement any such person was not such an officer. 
(b)Following the Distribution Date and receipt by the Rights Agent of notice to that effect and all other relevant information referred to in Section 3(a), the Rights Agent will keep or cause to be kept, at its office designated for such purpose, books for registration and transfer of the Rights Certificates issued hereunder. Such books shall show the names and addresses of the respective record holders of the Rights Certificates, the number of Rights evidenced on its face by each of the Rights Certificates and the date of each of the Rights Certificates. The Company and Rights Agent may deem and treat the person in whose name any Rights Certificate (or prior to the Distribution Date, the associated Common Stock certificate) is recorded on the books for the registration and transfer of Rights (or, the Common Stock) as the absolute owner thereof, for all purposes whatsoever, and neither the Company nor the Rights Agent shall be affected by any notice to the contrary. 

Section 6.  Transfer, Split Up, Combination and Exchange of Rights Certificates; Mutilated, Destroyed, Lost or Stolen Rights Certificates.  
(a)Subject to the provisions of Section 4(b), Section 7(e), Section 7(f), Section 11, Section 14, Section 23 and Section 24 hereof, at any time after the Close of business on the Distribution Date, and at or prior to the Close of business on the Expiration Date, any Rights Certificate or Certificates (other than 

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Rights Certificates representing Rights that have become null and void pursuant to Section 7(e) or that have been exchanged pursuant to Section 24 hereof) may be transferred, split up, combined or exchanged for another Rights Certificate or Certificates, entitling the record holder to purchase a like number of one one-thousandths of a share of Preferred Stock (or, following a Triggering Event, Common Stock, other securities, cash or other assets, as the case may be) as the Rights Certificate or Certificates surrendered then entitled such holder (or former holder in the case of a transfer) to purchase. Any record holder desiring to transfer, split up, combine or exchange any Rights Certificate or Certificates shall make such request in writing in a form acceptable and delivered to the Rights Agent, and shall surrender the Rights Certificate or Certificates to be split up, combined or exchanged at the office of the Rights Agent designated for such purpose. Neither the Rights Agent nor the Company shall be obligated to take any action whatsoever with respect to the transfer of any such surrendered Rights Certificate or Certificates until the record holder shall have (i) properly completed and signed the certificate contained in the form of assignment on the reverse side of such Rights Certificate or Certificates, (ii) provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates thereof, or of the Rights evidenced thereby, as the Company or the Rights Agent shall reasonably request, and (iii) paid a sum sufficient to cover any tax or charge that may be imposed in connection with any transfer, split up, combination or exchange of Rights Certificates as required by Section 9(e) hereof. Thereupon, the Rights Agent shall, subject to Section 4(b), Section 7(e), Section 7(f), Section 11, Section 14, Section 23 and Section 24 hereof, countersign and deliver to the Person entitled thereto a Rights Certificate or Rights Certificates, as the case may be, as so requested. The Company or the Rights Agent may require payment by the record holder of a Rights Certificate of a sum sufficient to cover any applicable tax or governmental charge that may be imposed in connection with any transfer, split up, combination or exchange of Rights Certificates, and the Company and the Rights Agent shall have no duty or obligation under this Section unless and until it is satisfied that all such taxes and/or governmental charges have been paid. 
(b)Subject to the provisions of Section 4(b), Section 7(e), Section 7(f), Section 11, Section 14, Section 23 and Section 24 hereof, upon receipt by the Company and the Rights Agent of evidence reasonably satisfactory to them of the loss, theft, destruction or mutilation of a Rights Certificate, and, in case of loss, theft or destruction, of indemnity or security to the Rights Agent and the Company satisfactory to the Rights Agent and the Company and reimbursement to the Company and the Rights Agent of all reasonable expenses incidental thereto, and upon surrender to the Rights Agent and cancellation of the Rights Certificate, if mutilated, the Company will execute and deliver a new Rights Certificate of like tenor to the Rights Agent for countersignature and delivery to the record holder in lieu of the Rights Certificate so lost, stolen, destroyed or mutilated. 

Section 7.  Exercise of Rights; Purchase Price; Expiration Date of Rights.  
(a)Subject to Section 7(e), Section 7(f) and Section 14 hereof, the record holder of any Rights Certificate may exercise the Rights evidenced thereby (except as otherwise provided herein including, without limitation, the restrictions on exercisability set forth in Section 9(c), Section 11(a)(ii), Section 11(a)(iii), Section 23(a) and Section 24(b) hereof) in whole or in part at any time after the Distribution Date upon surrender of the Rights Certificate, with the form of election to purchase and the certificate on the reverse side thereof duly executed, to the Rights Agent at the office of the Rights Agent designated for such purpose, along with a signature guarantee and such other and further documentation as the Rights Agent may reasonably request, together with payment of the aggregate Purchase Price with respect to the total number of one one-thousandths of a share of Preferred Stock (or, following the occurrence of a Triggering Event, Common Stock or other securities, cash or other assets, as the case may be) as to which such surrendered Rights are then exercisable, at or prior to the earlier of (i) the Close of business on December 14, 2018 (the “Final Expiration Date”), (ii) the time at which the Rights are redeemed as provided in Section 23 hereof (the “Redemption Date”), (iii) the time at which such Rights are exchanged as provided in Section 24 hereof, or (iv) the 

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consummation of a transaction contemplated by Section 13(d) hereof (the earliest of (i), (ii), (iii) and (iv) being herein referred to as the “Expiration Date”). 
(b)The Purchase Price for each one one-thousandth of a share of Preferred Stock pursuant to the exercise of a Right shall initially be $51.60, and shall be subject to adjustment from time to time as provided in Sections 11 and 13(a) hereof and shall be payable in accordance with paragraph (c) below. 
(c)Upon receipt of a Rights Certificate representing exercisable Rights, with the form of election to purchase and the certificate duly executed and properly completed, accompanied by payment, with respect to each Right so exercised, of the Purchase Price per one one-thousandth of a share of Preferred Stock (or other shares, securities, cash or other assets, as the case may be) to be purchased as set forth below and an amount equal to any tax or charge required to be paid by the holder of such Rights Certificate in accordance with Section 9 hereof, the Rights Agent shall, subject to Section 20(k) hereof, thereupon promptly (i) (A) requisition from any transfer agent of the shares of Preferred Stock (or make available, if the Rights Agent is the transfer agent for such shares) certificates for the total number of one one-thousandths of a share of Preferred Stock to be purchased, and the Company hereby irrevocably authorizes its transfer agent to comply with all such requests, or (B) if the Company shall have elected to deposit the total number of shares of Preferred Stock issuable upon exercise of the Rights hereunder with a depositary agent, requisition from the depositary agent depositary receipts representing such number of one one-thousandths of a share of Preferred Stock as are to be purchased (in which case certificates for the shares of Preferred Stock represented by such receipts shall be deposited by the transfer agent with the depositary agent) and the Company will direct the depositary agent to comply with such request, (ii) when appropriate, requisition from the Company the amount of cash, if any, to be paid in lieu of fractional shares in accordance with Section 14 hereof, (iii) after receipt of such certificates or depositary receipts, cause the same to be delivered to or upon the order of the record holder of such Rights Certificate, registered in such name or names as may be designated by such holder, and (iv) when appropriate, after receipt thereof, deliver such cash, if any, to or upon the order of the record holder of such Rights Certificate. The payment of the Purchase Price (as such amount may be reduced pursuant to Section 11(a)(iii) hereof) shall be made in cash or by certified bank check or bank draft payable to the order of the Company, in each case in lawful money of the United States of America. In the event that the Company is obligated to issue other securities (including Common Stock) of the Company, pay cash and/or distribute other property pursuant to Section 11(a) hereof, the Company will make all arrangements necessary so that such other securities, cash and/or other property are available for distribution by the Rights Agent, if and when necessary to comply with this Agreement. The Company reserves the right to require, prior to the occurrence of a Triggering Event that, upon any exercise of Rights, a number of Rights be exercised so that only whole shares of Preferred Stock would be issued. 
(d)In case the record holder of any Rights Certificate shall exercise less than all the Rights evidenced thereby, a new Rights Certificate evidencing Rights equivalent to the Rights remaining exercisable and unexercised shall be issued by the Rights Agent and delivered to, or upon the order of, the record holder of such Rights Certificate, registered in such name or names as may be designated by such holder, subject to the provisions of Section 14 hereof. 
(e)Notwithstanding anything in this Agreement to the contrary, from and after the first occurrence of a Section 11(a)(ii) Event, any Rights beneficially owned by (i) an Acquiring Person or an Affiliate or Associate of an Acquiring Person, (ii) a transferee of an Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee after the Acquiring Person becomes such, or (iii) a transferee of an Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee prior to or concurrently with the Acquiring Person becoming such and receives such Rights pursuant to either (A) a transfer (whether or not for consideration) from the Acquiring Person to holders of equity interests in such Acquiring Person or to any Person with whom the Acquiring Person has any continuing agreement, arrangement or understanding regarding the transferred Rights or (B) a transfer which the Board has determined is part of a plan, arrangement or understanding which has the purpose or effect the avoidance of this Section 7(e), shall become null and void without any further action, and any record holder of such Rights shall have no rights 

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whatsoever with respect to such Rights, whether under any provision of this Agreement or otherwise. The Company shall use all reasonable efforts to ensure that the provisions of this Section 7(e) and Section 4(b) hereof are complied with, but neither the Rights Agent nor the Company shall have any liability to any record holder of Rights Certificates or any other Person as a result of the Company’s failure to make any determinations with respect to an Acquiring Person or its Affiliates, Associates or transferees hereunder. The Company or the Rights Agent may require (or cause any transfer agent of the Company to require) any Person who submits a Rights Certificate (or a certificate representing shares of Common Stock that evidences, or but for the provisions of this Section 7(e) would evidence, Rights) for transfer on the registry books or to exercise the Rights represented thereby to establish to the satisfaction of the Company in its sole discretion that such Rights have not become null and void pursuant to the provisions of this Section 7(e). 
(f)Notwithstanding anything in this Agreement to the contrary, neither the Rights Agent nor the Company shall be obligated to undertake any action with respect to a record holder upon the occurrence of any purported exercise as set forth in this Section 7 unless such holder shall have (i) properly completed and duly executed the certificate contained in the form of election to purchase set forth on the reverse side of the Rights Certificate surrendered for such exercise, and (ii) provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner), or Affiliates or Associates thereof, or any transferee referred to in clause (ii) or (iii) of Section 7(e) hereof, or of the Rights evidenced thereby, in any such case, as the Company or the Rights Agent shall reasonably request. 

Section 8.  Cancellation and Destruction of Rights Certificates.  All Rights Certificates surrendered for the purpose of exercise, transfer, split up, combination or exchange shall, if surrendered to the Company or any of its agents, be delivered to the Rights Agent for cancellation or in canceled form, or, if surrendered to the Rights Agent, shall be canceled by it, and no Rights Certificates shall be issued in lieu thereof except as expressly permitted by any of the provisions of this Agreement. The Company shall deliver to the Rights Agent for cancellation and retirement, and the Rights Agent shall so cancel and retire, any other Rights Certificate purchased or acquired by the Company otherwise than upon the exercise thereof. The Rights Agent shall deliver all cancelled Rights Certificates to the Company, or shall, at the written request of the Company, destroy such canceled Rights Certificates in accordance with applicable law and regulations, and in such case shall deliver a certificate of destruction to the Company. 

Section 9.  Reservation and Availability of Capital Stock.  
(a)The Company covenants and agrees that it will cause to be reserved and kept available out of its authorized and unissued shares of Preferred Stock (and, following the occurrence of a Triggering Event, out of its authorized and unissued shares of Common Stock and/or other securities or out of its authorized and issued shares held in its treasury), the number of shares of Preferred Stock (and, following the occurrence of a Triggering Event, Common Stock and/or other securities) that, as provided in this Agreement, including Section 11(a)(iii) hereof, will be sufficient to permit the exercise in full of all outstanding Rights in accordance with this Agreement. 
(b)So long as the shares of Preferred Stock (and, following the occurrence of a Triggering Event, Common Stock and/or other securities) issuable and deliverable upon the exercise of the Rights may be listed on any national securities exchange or national automated quotation system, the Company shall use its best efforts to cause, from and after such time as the Rights become exercisable (but only to the extent that it is reasonably likely that the Rights will be exercised), all shares reserved for such issuance to be listed on such exchange or authorized to be quoted on such quotation system upon official notice of issuance upon such exercise. 
(c)If then required by applicable law, the Company shall use its best efforts to (i) file, as soon as practicable following the earliest date after the first occurrence of a Section 11(a)(ii) Event on which the consideration to be delivered by the Company upon exercise of the Rights has been determined in accordance with Section 11(a)(iii) hereof, a registration statement under the Act with respect to the securities 

15

purchasable upon exercise of the Rights on an appropriate form, (ii) cause such registration statement to become effective as soon as practicable after such filing, and (iii) cause such registration statement to remain effective (with a prospectus at all times meeting the requirements of the Act) until the earlier of (A) the date as of which the Rights are no longer exercisable for such securities, (B) the Expiration Date or (C) the date the Company receives an opinion of counsel to the effect that the maintenance of such registration statement in effect is no longer necessary. If then required by applicable law, the Company will also take such action as may be appropriate under, or to ensure compliance with, the securities or “blue sky” laws of the various states in connection with the exercisability of the Rights. The Company may temporarily suspend, for a period of time not to exceed one hundred twenty (120) days after the date set forth in clause (i) of the first sentence of this Section 9(c), the exercisability of the Rights in order to prepare and file such registration statement and permit it to become effective or to comply with such blue sky laws.
Upon any such suspension, the Company shall make a public announcement, and shall give simultaneous written notice to the Rights Agent, stating that the exercisability of the Rights has been temporarily suspended, as well as a public announcement, and simultaneous written notice to the Rights Agent, at such time as the suspension is no longer in effect. In addition, if the Company shall determine that a registration statement is required following the Distribution Date, the Company may temporarily suspend the exercisability of the Rights until such time as a registration statement has been declared effective, and shall provide the Rights Agent with written notice of such suspension. Notwithstanding any provision of this Agreement to the contrary, the Rights shall not be exercisable in any jurisdiction if the requisite qualification in such jurisdiction shall not have been obtained, the exercise thereof shall not be permitted under applicable law or a registration statement shall not have been declared effective. 
(d)The Company covenants and agrees that it will take all such action as may be necessary to ensure that all one one-thousandths of a share of Preferred Stock (and, following the occurrence of a Triggering Event, Common Stock and/or other securities, as the case may be) delivered upon exercise of Rights shall, at the time of delivery of the certificates for such shares, Common Stock, or other securities, as the case may be (subject to payment of the Purchase Price), be duly and validly authorized and issued, and fully paid and nonassessable including, without limitation, effecting such changes to the accounts of the Company as may be necessary to accomplish the foregoing purposes. 
(e)The Company further covenants and agrees that it will pay when due and payable any and all taxes and governmental charges which may be payable in respect of the issuance or delivery of the Rights Certificates and of any certificates for a number of one one-thousandths of a share of Preferred Stock (or Common Stock or other securities, as the case may be) upon the exercise of the Rights. The Company shall not, however, be required to pay any tax or charge which may be payable in respect of any transfer or delivery of Rights Certificates to a Person other than, or the issuance or delivery of certificates or depositary receipts for a number of one one-thousandths of a share of Preferred Stock (or Common Stock and/or other securities, as the case may be) in respect of a name other than that of, the record holder of the Rights Certificates evidencing Rights surrendered for exercise or to issue or deliver any certificates for a number of one one-thousandths of a share of Preferred Stock (or, following the occurrence of a Triggering Event, Common Stock or other securities, as the case may be) in a name other than that of the record holder upon the exercise of any Rights until such tax or charge shall have been paid (any such tax or charge being payable by the holder of such Rights Certificate at the time of surrender) or until it has been established to the Company’s or the Rights Agent’s satisfaction that no such tax or charge is due. 

Section 10.  Securities Record Date.  Each person in whose name any certificate for a number of one one-thousandths of a share of Preferred Stock (or Common Stock and/or other securities, as the case may be) is issued upon the exercise of Rights shall for all purposes be deemed to have become the holder of 

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record of such fractional shares of Preferred Stock (or Common Stock and/or other securities, as the case may be) represented thereby on, and such certificate shall be dated, the date upon which the Rights Certificate evidencing such Rights was duly surrendered and payment of the Purchase Price (and all applicable taxes or charges) was made; provided, however, that if the date of such surrender and payment is a date upon which the Preferred Stock (or Common Stock and/or other securities, as the case may be) transfer books of the Company are closed, such Person shall be deemed to have become the record holder of such shares (fractional or otherwise) on, and such certificate shall be dated, the next succeeding Business Day on which the Preferred Stock (or Common Stock and/or other securities, as the case may be) transfer books of the Company are open. Prior to the exercise of the Rights evidenced thereby, the record holder of a Rights Certificate shall not be entitled to any rights of a stockholder of the Company with respect to shares for which the Rights shall be exercisable, including, without limitation, the right to vote, to receive dividends or other distributions or to exercise any preemptive rights, and shall not be entitled to receive any notice of any proceedings of the Company, except as provided herein. 

Section 11.  Adjustment of Purchase Price, Number and Kind of Shares or Number of Rights.  The Purchase Price, the number and kind of shares covered by each Right and the number of Rights outstanding are subject to adjustment from time to time as provided in this Section 11. 
(a)(i)    In the event the Company shall at any time after the date of this Agreement (A) declare a dividend on the Preferred Stock payable in shares of Preferred Stock, (B) subdivide the outstanding Preferred Stock, (C) combine the outstanding Preferred Stock into a smaller number of shares, or (D) issue any shares of its capital stock in a reclassification of the Preferred Stock (including any such reclassification in connection with a consolidation or merger in which the Company is the continuing or surviving corporation), except as otherwise provided in this Section 11(a) and Section 7(e) hereof, the Purchase Price in effect at the time of the record date for such dividend or of the effective date of such subdivision, combination or reclassification, and the number and kind of shares of Preferred Stock or capital stock, as the case may be, issuable on such date, shall be proportionately adjusted so that the record holder of any Right exercised after such time shall be entitled to receive, upon payment of the Purchase Price then in effect, the aggregate number and kind of shares of Preferred Stock or capital stock, as the case may be, which, if such Right had been exercised immediately prior to such date and at a time when the Preferred Stock transfer books of the Company were open, he would have owned upon such exercise and been entitled to receive by virtue of such dividend, subdivision, combination or reclassification. If an event occurs which would require an adjustment under both this Section 11(a)(i) and Section 11(a)(ii) hereof, the adjustment provided for in this Section 11(a)(i) shall be in addition to, and shall be made prior to, any adjustment required pursuant to Section 11(a)(ii) hereof. 
(i)Subject to Section 24 hereof, in the event any Person, alone or together with its Affiliates and Associates, shall, at any time after the Rights Dividend Declaration Date, become an Acquiring Person (such an event being referred to herein as a “Section 11(a)(ii) Event”), then, promptly following the occurrence of such Section 11(a)(ii) Event, proper provision shall be made by the Company so that each holder of a Right (except as provided below and in Section 7(e) hereof) shall have the right to receive, upon exercise thereof at the then current Purchase Price in accordance with the terms of this Agreement, in lieu of fractional interests in shares of Preferred Stock, such number of shares of Common Stock of the Company as shall equal the result obtained by (x) multiplying the then current Purchase Price by the then number of one one-thousandths of a share of Preferred Stock for which a Right was exercisable immediately prior to the first occurrence of a Section 11(a)(ii) Event at issue, and (y) dividing that product (which, following such first occurrence, shall thereafter be referred to as the “Purchase Price” for each Right and for all purposes of this Agreement) by 50% of the Current Market Price (determined pursuant to Section 11(d) hereof) per share of Common Stock on the date of such first occurrence (such number of shares being referred to as the “Adjustment Shares”); provided, however, that if the transaction that would otherwise give rise to the foregoing adjustment is also subject to the provisions of Section 13 hereof, then only the provisions 

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of Section 13 hereof shall apply and no adjustment shall be made pursuant to this Section 11(a)(ii). The Company shall give the Rights Agent written notice of the identity of any such Acquiring Person, Associate or Affiliate, or the nominee of any of the foregoing, and the Rights Agent may rely on such notice in carrying out its duties under this Agreement and shall be deemed not to have any knowledge of the identity of any such Acquiring Person, Associate or Affiliate, or the nominee of any of the foregoing unless and until it shall have received such notice. 
(ii)Subject to such limitations existing as of the date hereof as are necessary to prevent a default under any agreement to which the Company is a party, in the event that the number of shares of Common Stock which are authorized by the Company’s articles of incorporation, as amended, but not outstanding or reserved for issuance for purposes other than upon exercise of the Rights are not sufficient to permit the exercise in full of the Rights in accordance with the foregoing subparagraph (ii) of this Section 11(a), the Company, acting by resolution of its Board shall (A) determine the excess of (x) the value of the Adjustment Shares issuable upon the exercise of a Right determined as set forth below (the “Current Value”), over (y) the Purchase Price (such excess, the “Spread”), and (B) with respect to each Right (subject to Section 7(e) hereof), make adequate provision to substitute for the Adjustment Shares, upon the exercise of a Right and payment of the applicable Purchase Price, (1) cash, (2) a reduction in the Purchase Price, (3) Common Stock or other equity securities of the Company (including, without limitation, shares or units of shares of preferred stock, such as the Preferred Stock, which the Board has deemed to have essentially the same value or economic rights as shares of Common Stock (such shares of preferred stock or other equity securities being referred to as “Common Stock Equivalents”), (4) debt securities of the Company, (5) other assets, or (6) any combination of the foregoing, having an aggregate value equal to the Current Value (less the amount of any reduction in the Purchase Price), where such aggregate value has been determined by the Board based upon the advice of a nationally recognized investment banking firm selected by the Board; provided, however, that if the Company shall not have made adequate provision to deliver value pursuant to clause (B) above within thirty (30) days following the date on which the Company’s right of redemption pursuant to Section 23(a) expires (such date being referred to herein as the “Section 11(a)(ii) Trigger Date”), then the Company shall be obligated to deliver, upon the surrender for exercise of a Right and without requiring payment of the Purchase Price (other than an amount equal to the par value of the shares of Common Stock to be issued), shares of Common Stock (to the extent available) and then, if necessary, cash, which shares and/or cash have an aggregate value equal to the Spread. If the Board determines in good faith that it is likely that sufficient additional shares of Common Stock could be authorized for issuance upon exercise in full of the Rights, the thirty (30) day period set forth above may be extended to the extent necessary, but not more than ninety (90) days after the Section 11(a)(ii) Trigger Date, in order that the Company may seek stockholder approval for the authorization of such additional shares (such thirty (30) day period, as it may be extended, is herein called the “Substitution Period”).
To the extent that action is to be taken pursuant to the first and/or second sentences of this Section 11(a)(iii), the Company (1) shall provide, subject to Section 7(e) hereof, that such action shall apply uniformly to all outstanding Rights, and (2) may suspend the exercisability of the Rights until the expiration of the Substitution Period in order to seek such stockholder approval for such authorization of additional shares and/or to decide the appropriate form of distribution to be made pursuant to such first sentence and to determine the value thereof. In the event of any such suspension, the Company shall make a public announcement and shall give simultaneous written notice to the Rights Agent stating that the exercisability of the Rights has been temporarily suspended, as well as a public announcement, and simultaneous written notice to the Rights Agent, at such time as the suspension is no longer in effect. For purposes of this Section 11(a)(iii), the Current Value of each Adjustment Share shall be the Current Market Price per share of the Common Stock on the Section 11(a)(ii) Trigger Date, and the per share or per unit value of any Common Stock Equivalent shall be deemed to equal the Current Market Price per share of the Common Stock on such date. 

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(b)In case the Company shall fix a record date for the issuance of rights, options or warrants to all record holders of Preferred Stock entitling them to subscribe for or purchase (for a period expiring within forty-five (45) calendar days after such record date) Preferred Stock (or shares having the same rights, privileges and preferences as the shares of Preferred Stock (“equivalent preferred stock”)) or securities convertible into Preferred Stock or equivalent preferred stock at a price per share of Preferred Stock or per share of equivalent preferred stock (or having a conversion price per share, if a security convertible into Preferred Stock or equivalent preferred stock) less than the Current Market Price per share of Preferred Stock on such record date, the Purchase Price to be in effect after such record date shall be determined by multiplying the Purchase Price in effect immediately prior to such record date by a fraction, the numerator of which shall be the number of shares of Preferred Stock and equivalent preferred stock outstanding on such record date, plus the number of shares of Preferred Stock and equivalent preferred stock which the aggregate offering price of the total number of shares of Preferred Stock and/or equivalent preferred stock so to be offered (and/or the aggregate initial conversion price of the convertible securities so to be offered) would purchase at such Current Market Price, and the denominator of which shall be the number of shares of Preferred Stock and equivalent preferred stock outstanding on such record date, plus the number of additional shares of Preferred Stock and/or equivalent preferred stock to be offered for subscription or purchase (or into which the convertible securities so to be offered are initially convertible). In case such subscription price may be paid by delivery of consideration part or all of which may be in a form other than cash, the value of such consideration shall be as determined in good faith by the Board, whose determination shall be described in a statement filed with the Rights Agent and shall be binding on the Rights Agent and the holders of the Rights. Shares of Preferred Stock and equivalent preferred stock owned by or held for the account of the Company shall not be deemed outstanding for the purpose of any such computation. Such adjustment shall be made successively whenever such a record date is fixed, and in the event that such rights or warrants are not so issued, the Purchase Price shall be adjusted to be the Purchase Price which would then be in effect if such record date had not been fixed. 
(c)In case the Company shall fix a record date for a distribution to all record holders of Preferred Stock (including any such distribution made in connection with a consolidation or merger in which the Company is the continuing or surviving corporation) of evidences of indebtedness, cash (other than a regular quarterly cash dividend out of the earnings or retained earnings of the Company), assets (other than a dividend payable in Preferred Stock, but including any dividend payable in stock other than Preferred Stock) or subscription rights or warrants (excluding those referred to in Section 11(b) hereof), the Purchase Price to be in effect after such record date shall be determined by multiplying the Purchase Price in effect immediately prior to such record date by a fraction, the numerator of which shall be the Current Market Price (as determined pursuant to Section 11(d) hereof) per share of Preferred Stock on such record date, less the fair market value (as determined in good faith by the Board, whose determination shall be described in a statement filed with the Rights Agent and shall be binding on the Rights Agent and the holders of the Rights) of the portion of the cash, assets or evidences of indebtedness so to be distributed or of such subscription rights or warrants applicable to a share of Preferred Stock and the denominator of which shall be such Current Market Price per share of Preferred Stock. Such adjustments shall be made successively whenever such a record date is fixed, and in the event that such distribution is not so made, the Purchase Price shall be adjusted to be the Purchase Price which would have been in effect if such record date had not been fixed. 
(d)(i)  For the purpose of any computation hereunder, other than computations made pursuant to Section 11(a)(iii) hereof, the “Current Market Price” per share of Common Stock on any date shall be deemed to be the average of the daily closing prices per share of such Common Stock for the thirty (30) consecutive Trading Days immediately prior to but not including such date, and for purposes of computations made pursuant to Section 11(a)(iii) hereof, the Current Market Price per share of Common Stock on any date shall be deemed to be the average of the daily closing prices per share of such Common 

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Stock for the ten (10) consecutive Trading Days immediately following but not including such date; provided, however, that in the event that the Current Market Price per share of the Common Stock is determined during a period following the announcement by the issuer of such Common Stock of (A) a dividend or distribution on such Common Stock payable in shares of such Common Stock or securities convertible into shares of such Common Stock (other than the Rights), or (B) any subdivision, combination or reclassification of such Common Stock, and the ex-dividend or ex-distribution date for such dividend or distribution, or the record date for such subdivision, combination or reclassification shall not have occurred prior to the commencement of the requisite thirty (30) Trading Day or ten (10) Trading Day period, as set forth above, then, and in each such case, the Current Market Price shall be properly adjusted to reflect the current market per share equivalent. The closing price for each day shall be the last sale price, regular way, or, in case no such sale takes place on such day, the average of the closing bid and asked prices, regular way, in either case as reported in the principal consolidated transaction reporting system with respect to securities listed or admitted to trading on the NASDAQ or, if the shares of Common Stock are not listed or admitted to trading on the NASDAQ, as reported in the principal consolidated transaction reporting system with respect to securities listed on the principal national securities exchange on which the shares of Common Stock are listed or admitted to trading or, if the shares of Common Stock are not listed or admitted to trading on any national securities exchange, the last sale price, regular way, or, if such last sale price is not reported, the average of the high bid and low asked prices in the over-the-counter market, as reported by NASDAQ or such other system then in use, or, if on any such date the shares of Common Stock are not quoted by any such organization, the average of the closing bid and asked prices as furnished by a professional market maker making a market in the Common Stock selected by the Board. If on any such date no market maker is making a market in the Common Stock, the fair value of such shares on such date as determined in good faith by the Board shall be used. The term “Trading Day” shall mean a day on which the principal national securities exchange on which the shares of Common Stock are listed or admitted to trading is open for the transaction of business or, if the shares of Common Stock are not listed or admitted to trading on any national securities exchange, a Business Day. If the Common Stock is not publicly held or not so listed or traded, Current Market Price per share shall mean the fair value per share as determined in good faith by the Board, whose determination shall be described in a statement filed with the Rights Agent and shall be conclusive for all purposes. 
(i)For the purpose of any computation hereunder, the Current Market Price per share of Preferred Stock shall be determined in the same manner as set forth above for the Common Stock in clause (i) of this Section 11(d) (other than the last sentence thereof). If the Current Market Price per share of Preferred Stock cannot be determined in the manner provided above or if the Preferred Stock is not publicly held or listed or traded in a manner described in clause (i) of this Section 11(d), the Current Market Price per share of Preferred Stock shall be conclusively deemed to be an amount equal to 1000 (as such number may be appropriately adjusted for such events as stock splits, stock dividends and recapitalizations with respect to the Common Stock occurring after the date of this Agreement) multiplied by the Current Market Price per share of the Common Stock. If neither the Common Stock nor the Preferred Stock is publicly held or so listed or traded, Current Market Price per share of the Preferred Stock shall mean the fair value per share as determined in good faith by the Board, whose determination shall be described in a statement filed with the Rights Agent and shall be conclusive for all purposes. For all purposes of this Agreement, the Current Market Price of one one-thousandth of a share of Preferred Stock shall be equal to the Current Market Price of one share of Preferred Stock divided by 1000. 
(e)Anything herein to the contrary notwithstanding, no adjustment in the Purchase Price shall be required unless such adjustment would require an increase or decrease of at least one percent (1%) in the Purchase Price; provided, however, that any adjustments which by reason of this Section 11(e) are not required to be made shall be carried forward and taken into account in any subsequent adjustment. All calculations under this Section 11 shall be made to the nearest cent or to the nearest hundred-thousandth of a share of Common Stock or other share or one-millionth of a share of Preferred Stock, as the case may be. Notwithstanding the first sentence of this Section 11(e), any adjustment required by this Section 11 shall be 

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made no later than the earlier of (i) three (3) years from the date of the transaction which mandates such adjustment, or (ii) the Expiration Date. 
(f)If as a result of an adjustment made pursuant to Section 11(a)(ii) or Section 13(a) hereof, the holder of any Right thereafter exercised shall become entitled to receive any shares of capital stock other than Preferred Stock, thereafter the number of such other shares so receivable upon exercise of any Right and the Purchase Price thereof shall be subject to adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to the Preferred Stock contained in Sections 11(a), (b), (c), (e), (g), (h), (i), (j), (k) and (m), and the provisions of Sections 7, 9, 10, 13 and 14 hereof with respect to the Preferred Stock shall apply on like terms to any such other shares. 
(g)All Rights originally issued by the Company subsequent to any adjustment made to the Purchase Price hereunder shall evidence the right to purchase, at the adjusted Purchase Price, the number of one one-thousandths of a share of Preferred Stock purchasable from time to time hereunder upon exercise of the Rights, all subject to further adjustment as provided herein. 
(h)Unless the Company shall have exercised its election as provided in Section 11(i), upon each adjustment of the Purchase Price as a result of the calculations made in Sections 11(b) and (c), each Right outstanding immediately prior to the making of such adjustment shall thereafter evidence the right to purchase, at the adjusted Purchase Price, that number of one one-thousandths of a share of Preferred Stock (calculated to the nearest one-millionth) obtained by (i) multiplying (x) the number of one one-thousandths of a share covered by a Right immediately prior to this adjustment, by (y) the Purchase Price in effect immediately prior to such adjustment of the Purchase Price, and (ii) dividing the product so obtained by the Purchase Price in effect immediately after such adjustment of the Purchase Price. 
(i)The Company may elect on or after the date of any adjustment of the Purchase Price to adjust the number of Rights, in lieu of any adjustment in the number of one one-thousandths of a share of Preferred Stock purchasable upon the exercise of a Right. Each of the Rights outstanding after the adjustment in the number of Rights shall be exercisable for the number of one one-thousandths of a share of Preferred Stock for which a Right was exercisable immediately prior to such adjustment. Each Right held of record prior to such adjustment of the number of Rights shall become that number of Rights (calculated to the nearest one-millionth) obtained by dividing the Purchase Price in effect immediately prior to adjustment of the Purchase Price by the Purchase Price in effect immediately after adjustment of the Purchase Price. The Company shall make a public announcement and shall give simultaneous written notice to the Rights Agent of its election to adjust the number of Rights, indicating the record date for the adjustment, and, if known at the time, the amount of the adjustment to be made. This record date may be the date on which the Purchase Price is adjusted or any day thereafter, but, if the Rights Certificates have been issued, shall be at least ten (10) days later than the date of the public announcement. If Rights Certificates have been issued, upon each adjustment of the number of Rights pursuant to this Section 11(i), the Company shall, as promptly as practicable, cause to be distributed to holders of Rights Certificates on such record date Rights Certificates evidencing, subject to Section 14 hereof, the additional Rights to which such holders shall be entitled as a result of such adjustment, or, at the option of the Company, shall cause to be distributed to such holders in substitution and replacement for the Rights Certificates held by such holders prior to the date of adjustment, and upon surrender thereof, if required by the Company, new Rights Certificates evidencing all the Rights to which such holders shall be entitled after such adjustment. Rights Certificates so to be distributed shall be issued, executed and countersigned in the manner provided for herein (and may bear, at the option of the Company, the adjusted Purchase Price) and shall be registered in the names of the holders of record of Rights Certificates on the record date specified in the public announcement. 
(j)Irrespective of any adjustment or change in the Purchase Price or the number by one one-thousandths of a share of Preferred Stock issuable upon the exercise of the Rights, the Rights Certificates theretofore and thereafter issued may continue to express the Purchase Price per one one-thousandths of a share and the number of one one-thousandths of a share which were expressed in the initial Rights Certificates issued hereunder. 

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(k)Before taking any action that would cause an adjustment reducing the Purchase Price below the then par value, if any, of the number of one one-thousandths of a share of Preferred Stock, or the par value, if any, of any shares of any other capital stock issuable upon exercise of the Rights, the Company shall take any corporate action which may, in the opinion of its counsel, be necessary in order that the Company may validly and legally issue such number of fully paid and non-assessable one one-thousandths of a share of Preferred Stock (or such other shares) at such adjusted Purchase Price. If upon any exercise of the Rights, a holder is to receive a combination of Common Stock and Common Stock Equivalents, a portion of the consideration paid upon such exercise, equal to at least the then par value of a share of Common Stock, shall be allocated as the payment for each share of Common Stock so received. 
(l)In any case in which this Section 11 shall require that an adjustment in the Purchase Price be made effective as of a record date for a specified event, the Company may elect to defer (with prompt written notice thereof to the Rights Agent), until the occurrence of such event, the issuance to the record holder of any Right exercised after such record date the number of one one-thousandths of a share of Preferred Stock and other capital stock or securities of the Company, if any, issuable upon such exercise over and above the number of one one-thousandths of a share of Preferred Stock, and other capital stock or securities of the Company, if any, issuable upon such exercise on the basis of the Purchase Price in effect prior to such adjustment; provided, however, that the Company shall deliver to such holder a due bill or other appropriate instrument evidencing such holder’s right to receive such additional shares (fractional or otherwise) or securities upon the occurrence of the event requiring such adjustment. 
(m)Anything in this Section 11 to the contrary notwithstanding, the Company shall be entitled to make such reductions in the Purchase Price, in addition to those adjustments expressly required by this Section 11, as and to the extent that in its good faith judgment the Board shall determine to be advisable in order that any (i) consolidation or subdivision of the Preferred Stock, (ii) issuance wholly for cash of any shares of Preferred Stock at less than the Current Market Price thereof, (iii) issuance wholly for cash of shares of Preferred Stock or securities which by their terms are convertible into or exchangeable for shares of Preferred Stock, (iv) stock dividends, or (v) issuance of rights, options or warrants referred to in this Section 11, hereafter made by the Company to holders of its Preferred Stock shall not be taxable to such holders. 
(n)The Company covenants and agrees that it shall not, at any time after the Distribution Date and so long as the Rights have not been redeemed pursuant to Section 23 hereof or exchanged pursuant to Section 24 hereof, (i) consolidate with any other Person (other than a Subsidiary of the Company in a transaction which complies with Section 11(p) hereof), (ii) merge with or into any other Person (other than a Subsidiary of the Company in a transaction which complies with Section 11(p) hereof), or (iii) sell or transfer (or permit any Subsidiary to sell or transfer), in one transaction, or a series of related transactions, assets or earning power aggregating more than 50% of the assets or earning power of the Company and its Subsidiaries (taken as a whole) to any other Person or Persons (other than the Company and/or any of its Subsidiaries in one or more transactions each of which complies with Section 11(p) hereof), if (x) at the time of or immediately after such consolidation, merger or sale there are any articles of incorporation or bylaw provisions or any rights, warrants or other instruments or securities outstanding or agreements in effect or other actions taken which would substantially diminish or otherwise eliminate the benefits intended to be afforded by the Rights or (y) prior to, simultaneously with or immediately after such consolidation, merger or sale, the stockholders of the Person who constitutes, or would constitute, the Principal Party for purposes of Section 13(a) hereof shall have received a distribution of Rights previously owned by such Person or any of its Affiliates and Associates, and (z) the form or nature of organization of the Principal Party would preclude or limit the exercise of Rights or otherwise diminish or substantially limit the benefits intended to be afforded by the Rights. 
(o)The Company shall not consummate any such consolidation, merger, sale or transfer unless prior thereto the Company and such other person shall have executed and delivered to the Rights Agent a supplemental agreement evidencing compliance with Section 11(n). 

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(p)The Company covenants and agrees that, after the Distribution Date, it will not, except as permitted by Section 23, Section 24 or Section 27 hereof, take (or permit any Subsidiary to take) any action if at the time such action is taken it is reasonably foreseeable that such action will diminish substantially or otherwise eliminate the benefits intended to be afforded by the Rights. 
(q)Anything in this Agreement to the contrary notwithstanding, in the event that the Company shall at any time after the Rights Dividend Declaration Date and prior to the Distribution Date (i) declare or pay any dividend on the outstanding shares of Common Stock payable in shares of Common Stock, (ii) subdivide or split the outstanding shares of Common Stock into a greater number of shares, or (iii) combine or consolidate the outstanding shares of Common Stock into a smaller number of shares or effect a reverse split of the outstanding shares of Common Stock, then, and in each such event, the number of Rights associated with each share of Common Stock then outstanding, or issued or delivered thereafter but prior to the Distribution Date, shall be proportionately adjusted so that the number of Rights thereafter associated with each share of Common Stock following any such event shall equal the result obtained by multiplying the number of Rights associated with each share of Common Stock immediately prior to such event by a fraction the numerator of which shall be the total number of shares of Common Stock outstanding immediately prior to the occurrence of the event and the denominator of which shall be the total number of shares of Common Stock outstanding immediately following the occurrence of such event. 

Section 12.  Certificate of Adjusted Purchase Price or Number of Shares.  Whenever an adjustment is made or any event affecting the Rights or their exercisability (including without limitation an event which causes the Rights to become null and void) occurs as provided in Section 11 and Section 13 hereof, the Company shall (a) promptly prepare a certificate setting forth such adjustment or describing such event, and a brief, reasonably detailed statement of the facts, computations and methodology accounting for such adjustment, (b) promptly file with the Rights Agent, and with each transfer agent for the Preferred Stock and the Common Stock, a copy of such certificate, and (c) mail a brief summary thereof to each record holder of a Rights Certificate (or, if prior to the Distribution Date, to each record holder of a certificate representing shares of Common Stock) in accordance with Section 26 hereof. The Rights Agent shall be fully protected in relying on any such certificate and on any adjustment or statement therein contained and shall have no duty or liability with respect to, and shall not be deemed to have knowledge of, any adjustment or any such event unless and until it shall have received such certificate. 

Section 13.  Consolidation, Merger or Sale or Transfer of Assets or Earning Power.  
(a)In the event that, following the Stock Acquisition Date (which for purposes of this Section 13(a) only shall also include the date of the first public announcement (including, without limitation, a report filed pursuant to Section 13(d) under the Exchange Act) that any Person (other than the Company, any Subsidiary of the Company, any employee benefit plan of the Company or of any Subsidiary of the Company, or any Person or entity organized, appointed or established by the Company for or pursuant to the terms of any such plan), together with any of such Person’s Affiliates and Associates, has become the Beneficial Owner of 15% or more of the shares of Common Stock then outstanding pursuant to a Permitted Offer), directly or indirectly, (x) the Company shall consolidate with, or merge with and into, any other Person (other than a Subsidiary of the Company in a transaction which complies with Section 11(p) hereof), and the Company shall not be the continuing or surviving corporation of such consolidation or merger, (y) any Person (other than a Subsidiary of the Company in a transaction which complies with Section 11(p) hereof) shall consolidate with, or merge with or into, the Company, and the Company shall be the continuing or surviving corporation of such consolidation or merger and, in connection with such consolidation or merger, all or part of the outstanding shares of Common Stock shall be changed into or exchanged for stock or other securities of any other Person or cash or any other property, or (z) the Company shall sell or otherwise transfer (or one or more of its Subsidiaries shall sell or otherwise transfer), in one transaction or a series of related transactions, assets or earning power aggregating more than 50% of the assets or earning power of the Company and its 

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Subsidiaries (taken as a whole) to any Person or Persons (other than the Company or any Subsidiary of the Company in one or more transactions each of which complies with Section 11(p) hereof), then, upon the first occurrence of such event (except as may be contemplated by Section 13(d) hereof), proper provision shall be made so that: (i) each holder of a Right, except as provided in Section 7(e) hereof, shall thereafter have the right to receive, upon the exercise thereof at the then current Purchase Price, in accordance with the terms of this Agreement, such number of validly authorized and issued, fully paid, non-assessable and freely tradeable shares of Common Stock of the Principal Party (as such term is hereinafter defined), not subject to any liens, encumbrances, rights of first refusal or other adverse claims, as shall be equal to the result obtained by (1) multiplying the then current Purchase Price by the number of one one-thousandths of a share of Preferred Stock for which a Right is exercisable immediately prior to the first occurrence of a Section 13 Event (or, if a Section 11(a)(ii) Event has occurred prior to the first occurrence of a Section 13 Event, multiplying the number of such one one-thousandths of a share for which a Right was exercisable immediately prior to the first occurrence of a Section 11(a)(ii) Event by the Purchase Price in effect immediately prior to such first occurrence), and dividing that product (which, following the first occurrence of a Section 13 Event, shall be referred to as the “Purchase Price” for each Right and for all purposes of this Agreement) by (2) 50% of the Current Market Price (determined pursuant to Section 11(d)(i) hereof) per share of the Common Stock of such Principal Party on the date of consummation, provided that the Purchase Price and the number of shares of Common Stock of such Principal Party issuable upon exercise of each Right shall be further adjusted as provided in Section 11(f) of this Agreement to reflect any events occurring in respect of such Principal Party after the date of such Section 13 Event; (ii) such Principal Party shall thereafter be liable for, and shall assume, by virtue of such Section 13 Event, all the obligations and duties of the Company pursuant to this Agreement; (iii) the term “Company” shall thereafter be deemed to refer to such Principal Party, it being specifically intended that the provisions of Section 11 hereof shall apply only to such Principal Party following the first occurrence of a Section 13 Event; (iv) such Principal Party shall take such steps (including, but not limited to, the reservation of a sufficient number of shares of its Common Stock) in connection with the consummation of any such transaction as may be necessary to assure that the provisions hereof shall thereafter be applicable, as nearly as reasonably may be, in relation to its shares of Common Stock thereafter deliverable upon the exercise of the Rights; and (v) the provisions of Section 11(a)(ii) hereof shall be of no effect following the first occurrence of any Section 13 Event.
(b)“Principal Party” shall mean 
(i)in the case of any transaction described in clause (x) or (y) of the first sentence of Section 13(a): (A) the Person that is the issuer of any securities into which shares of Common Stock of the Company are converted in such merger or consolidation, or if there is more than one such issuer, the issuer of the shares of Common Stock which has the greatest aggregate market value of shares outstanding, or (B) if no securities are so issued, (1) the Person that is the other party to the merger, if such Person survives said merger, or, if there is more than one such Person, the Person the shares of Common Stock of which has the greatest aggregate market value of shares outstanding or (2) if the Person that is the other party to the merger does not survive the merger, the Person that does survive the merger (including the Company if it survives) or (3) the Person resulting from the consolidation; and 
(ii)in the case of any transaction described in clause (z) of the first sentence of Section 13(a), the Person that is the party receiving the greatest portion of the assets or earning power transferred pursuant to such transaction or transactions or, if each Person that is a party to such transaction or transactions receives the same portion of the assets or earning power so transferred or if the Person receiving the greatest portion of the assets or earning power cannot be determined, whichever of such Persons as is the issuer of the shares of Common Stock having the greatest aggregate market value of shares outstanding; provided, however, that in any such case, (1) if the Common Stock of such Person is not at such time and has not been continuously over the preceding twelve (12) month period registered under Section 12 of the Exchange Act, and such Person is a direct or indirect Subsidiary of another Person the Common Stock of which is and has been so registered, “Principal Party” shall refer to such other Person; (2) in case such Person 

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is a Subsidiary, directly or indirectly, of more than one Person, the Common Stocks of two or more of which are and have been so registered, “Principal Party” shall refer to whichever of such Persons is the issuer of the Common Stock having the greatest aggregate market value of shares outstanding; and (3) in case such Person is owned, directly or indirectly, by a joint venture formed by two or more Persons that are not owned, directly or indirectly, by the same Person, the rules set forth in (1) and (2) above shall apply to each of the chains of ownership having an interest in such joint venture as if such party were a “Subsidiary” of both or all of such joint venturers and the Principal Parties in each such chain shall bear the obligations set forth in this Section 13 in the same ratio as their direct or indirect interests in such Person bear to the total of such interests. 
(c)The Company shall not consummate any such consolidation, merger, sale or transfer unless the Principal Party covenants and agrees that it will cause to be reserved and kept available out of its authorized and unissued shares of Common Stock or out of its authorized and issued shares held in its treasury, the number of shares of its Common Stock that will be sufficient to permit the exercise in full of all outstanding Rights under this Section 13 and unless prior thereto the Company and such Principal Party shall have executed and delivered to the Rights Agent a supplemental agreement confirming that the requirements set forth in paragraphs (a) and (b) of this Section 13 shall be promptly performed in accordance with their terms and further providing that, as soon as practicable after executing such agreement pursuant to this Section 13, the Principal Party will: 
(i)prepare and file a registration statement under the Act, with respect to the Rights and the securities purchasable upon exercise of the Rights on an appropriate form, and will use its best efforts to cause such registration statement to (A) become effective as soon as practicable after such filing and (B) remain effective (with a prospectus at all times meeting the requirements of the Act) until the Expiration Date and similarly comply with applicable state securities laws; 
(ii)use its best efforts, if the shares of Common Stock of the Principal Party shall be listed or admitted to trading on a national securities exchange or NASDAQ to list or admit to trading (or continue the listing of) the Rights and the securities purchasable upon exercise of the Rights on such securities exchange or NASDAQ and, if the shares of Common Stock of the Principal Party shall not be listed or admitted to trading on a national securities exchange or NASDAQ, to cause the Rights and the securities purchasable upon exercise of the Rights to be eligible for trading in the over-the-counter market and reported by such other system then in use; 
(iii)deliver to record holders of the Rights historical financial statements for the Principal Party and each of its Affiliates which comply in all respects with the requirements for registration on Form 10 (or any successor form) under the Exchange Act; and 
(iv)obtain waivers of any rights of first refusal or preemptive rights in respect of the shares of Common Stock of the Principal Party subject to purchase upon exercise of outstanding Rights. 
The provisions of this Section 13 shall similarly apply to successive mergers or consolidations or sales or other transfers. In the event that a Section 13 Event shall occur at any time after the occurrence of a Section 11(a)(ii) Event, the Rights which have not theretofore been exercised shall thereafter become exercisable in the manner described in Section 13(a). If, for any reason, the Rights cannot be exercised for Common Stock of the Company or such Principal Party, then a holder of Rights will have the right to exchange such Rights for cash from the Company or such Principal Party in an amount equal to the number of shares of such Common Stock such holder would otherwise be entitled to purchase times 50% of the then Current Market Price, as determined pursuant to Section 11(d)(i) hereof, of such stock of such Principal Party or the Company. If, for any reason, including, without limitation, such Principal Party is an individual, private partnership or private company, the foregoing formulation cannot be applied to determine the cash amount into which the Rights are exchangeable, then the Board, based upon advice from one or more nationally recognized investment banking firms, shall determine such amount reasonably and with utmost good faith to the holders of Rights. Any such determination shall be binding and final. 

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(d)Notwithstanding anything in this Agreement to the contrary, Section 13 shall not be applicable to a transaction described in subparagraphs (x) and (y) of Section 13(a) if (i) such transaction is consummated with a Person or Persons who acquired shares of Common Stock pursuant to a Permitted Offer (or a wholly owned Subsidiary of any such Person or Persons), (ii) the price per share of Common Stock offered in such transaction is not less than the price per share of Common Stock paid to all record holders of shares of Common Stock whose shares were purchased pursuant to such Permitted Offer, and (iii) the form of consideration being offered to the remaining record holders of shares of Common Stock pursuant to such transaction is the same as the form of consideration paid pursuant to such Permitted Offer. Upon consummation of any such transaction contemplated by this Section 13(d), all Rights hereunder shall expire. 
(e)The Company shall not enter into any transaction of the kind referred to in this Section 13 if at the time of such transaction there are any rights, warrants, instruments or securities outstanding or any agreements or arrangements which, as a result of the consummation of such transaction, would substantially diminish or otherwise eliminate the benefits intended to be afforded by the Rights. Without limiting the generality of the preceding sentence, in case the Principal Party which is to be a party to a transaction of the kind referred to in this Section 13 has a provision in any of its authorized securities or in its certificate or articles of incorporation or bylaws or other instrument governing its corporate affairs (or organizational affairs if organized other than in corporate form), which provision would have the effect of (i) causing such Principal Party to issue, in connection with, or as a consequence of, the consummation of a transaction of the kind referred to in this Section 13, Common Stock of such Principal Party at less than the then Current Market Price per share (determined pursuant to Section 11(d)(i)) or securities exercisable for or convertible into Common Stock of such Principal Party at less than such then Current Market Price per share (other than to holders of Rights pursuant to this Section 13) or (ii) providing for any special payment, tax or similar provisions in connection with the issuance of Common Stock of such Principal Party pursuant to the provisions of Section 13; then, in such event, the Company shall not consummate any such transaction unless prior thereto the provision in question of such Principal Party shall have been canceled, waived or amended so as to avoid any of the effects referred to in clauses (i) and (ii) of this paragraph, or the authorized securities shall have been redeemed, so that the applicable provision will have no effect in connection with, or as a consequence of, the consummation of the proposed transaction. 

Section 14.  Fractional Rights and Fractional Shares.  
(a)The Company shall not be required to issue fractions of Rights, except prior to the Distribution Date as provided in Section 11(q) hereof, or to distribute Rights Certificates which evidence fractional Rights. In lieu of such fractional Rights, there shall be paid to the record holders of the Rights Certificates with regard to which such fractional Rights would otherwise be issuable, an amount in cash equal to the same fraction of the current market value of a whole Right. For purposes of this Section 14(a), the current market value of a whole Right shall be the closing price of the Rights for the Trading Day immediately prior to the date on which such fractional Rights would have been otherwise issuable. The closing price of the Rights for any day shall be the last sale price, regular way, or, in case no such sale takes place on such day, the average of the closing bid and asked prices, regular way, in either case as reported in the principal consolidated transaction reporting system with respect to securities listed or admitted to trading on the NASDAQ or, if the Rights are not listed or admitted to trading on the NASDAQ, as reported in the principal consolidated transaction reporting system with respect to securities listed on the principal national securities exchange on which the Rights are listed or admitted to trading, or if the Rights are not listed or admitted to trading on any national securities exchange, the last sale price or, if such last sale price is not reported, the average of the high bid and low asked prices in the over-the-counter market, as reported by NASDAQ or such other system then in use or, if on any such date the Rights are not quoted by any such organization, the average of the closing bid and asked prices as furnished by a professional market maker making a market in 

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the Rights selected by the Board. If on any such date no such market maker is making a market in the Rights, the fair value of the Rights on such date as determined in good faith by the Board shall be used. 
(b)The Company shall not be required to issue fractions of shares of Preferred Stock (other than, except as provided in Section 7(c), fractions which are integral multiples of one one-thousandth of a share of Preferred Stock) upon exercise of the Rights or to distribute certificates which evidence fractional shares of Preferred Stock (other than fractions which are integral multiples of one one-thousandth of a share of Preferred Stock). Fractions of shares of Preferred Stock in integral multiples of one one-thousandth of a share of Preferred Stock may, at the election of the Company, be evidenced by depositary receipts, pursuant to an appropriate agreement between the Company and a depositary selected by it; provided, however, that such agreement shall provide that the holders of such depositary receipts shall have the rights, privileges and preferences to which they are entitled as beneficial owners of the shares of Preferred Stock represented by such depositary receipts. In lieu of fractional shares of Preferred Stock that are not integral multiples of one one-thousandth of a share of Preferred Stock, the Company may pay to the record holders of Rights Certificates at the time such Rights are exercised as herein provided an amount in cash equal to the same fraction of the current market value of one one-thousandth of a share of Preferred Stock. For purposes of this Section 14(b), the current market value of one one-thousandth of a share of Preferred Stock shall be one one-thousandth of the closing price of a share of Preferred Stock (as determined pursuant to Section 11(d)(ii) hereof) for the Trading Day immediately prior to the date of such exercise. 
(c)Following the occurrence of a Triggering Event, the Company shall not be required to issue fractions of shares of Common Stock or distribute certificates which evidence fractional shares of Common Stock. In lieu of fractional shares of Common Stock the Company may pay to the record holders of Rights Certificates at the time such Rights are exercised as herein provided an amount in cash equal to the same fraction of the current market value of one share of Common Stock. For purposes of this Section 14(c), the current market value of one share of Common Stock shall be determined in a manner set forth in Section 11(d)(i) hereof for the Trading Day immediately prior to the date of such exercise. 
(d)The record holder of a Right by the acceptance of the Rights expressly waives his right to receive any fractional Rights or any fractional shares (other than, except as provided in Section 7(c), fractions which are integral multiples of one one-thousandth of a share of Preferred Stock) upon exercise of a Right or to receive any certificates which evidence such Rights or shares, except as permitted by this Section 14. 
(e)Whenever a payment for fractional Rights or fractional shares is to be made by the Rights Agent, the Company shall (i) promptly prepare and deliver to the Rights Agent a certificate setting forth in reasonable detail the facts related to such payments and the prices and/or formulas utilized in calculating such payments, and (ii) provide sufficient monies to the Rights Agent in the form of fully collected funds to make such payments. The Rights Agent shall be fully protected in relying upon such a certificate and shall have no duty with respect to, and shall not be deemed to have knowledge of any payment for fractional Rights or fractional shares under any Section of this Agreement relating to the payment of fractional Rights or fractional shares unless and until the Rights Agent shall have received such a certificate and sufficient monies. 

Section 15.  Rights of Action.  All rights of action in respect of this Agreement, excepting the rights of action given to the Rights Agent, are vested in the respective record holders of the Rights Certificates (and, prior to the Distribution Date, the record holders of the Common Stock); and any record holder of any Rights Certificate (or, prior to the Distribution Date, of the Common Stock), without the consent of the Rights Agent or of the record holder of any other Rights Certificate (or, prior to the Distribution Date, of the Common Stock), may, in his own behalf and for his own benefit, enforce, and may institute and maintain any suit, action or proceeding against the Company to enforce, or otherwise act in respect of, his right to exercise the Rights evidenced by such Rights Certificate in the manner provided in such Rights Certificate and in this Agreement. Without limiting the foregoing or any remedies available to the record holders of Rights, it is 

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specifically acknowledged that such holders of Rights would not have an adequate remedy at law for any breach by the Company of this Agreement and shall be entitled to specific performance of the obligations hereunder and injunctive relief against actual or threatened violations by the Company of the obligations hereunder of any Person subject to this Agreement. After a Triggering Event, holders of Rights shall be entitled to reissue the reasonable costs and expenses, including attorneys’ fees, incurred by them to enforce the provisions of this Agreement. 

Section 16.  Agreement of Rights Holders.  Every holder of a Right, by accepting the same, consents and agrees with the Company and the Rights Agent and with every other holder of a Right that: 
(a)prior to the Distribution Date, the Rights will be transferable only in connection with the transfer of Common Stock; 
(b)after the Distribution Date, the Rights Certificates are transferable only on the transfer books of the Rights Agent if surrendered at the office of the Rights Agent designated for such purpose, duly endorsed or accompanied by a proper instrument of transfer and with the appropriate forms and certificates fully executed; 
(c)subject to Section 6(a) and Section 7(f) hereof, the Company and the Rights Agent may deem and treat the person in whose name a Rights Certificate (or, prior to the Distribution Date, the associated Common Stock certificate) is registered on the transfer books of the Rights Agent as the absolute owner thereof and of the Rights evidenced thereby (notwithstanding any notations of ownership or writing on the Rights Certificates or the associated Common Stock certificate made by anyone other than the Company or the Rights Agent) for all purposes whatsoever, and neither the Company nor the Rights Agent shall be required to be affected by any notice to the contrary; 
(d)notwithstanding anything in this Agreement to the contrary, neither the Company nor the Rights Agent nor any of their directors, officers, employees, or agents shall have any liability to any holder of a Right or other Person as a result of its inability to perform any of its obligations under this Agreement by reason of any preliminary or permanent injunction or other order, judgment, decree or ruling (whether interlocutory or final) issued by a court or by a governmental, regulatory, self-regulatory or administrative agency or commission, or any statute, rule, regulation or executive order promulgated or enacted by any governmental authority, prohibiting or otherwise restraining performance of such obligations; provided, however, the Company must use its reasonable efforts to have any such injunction, order, judgment, decree or ruling lifted or otherwise overturned as soon as possible; and 
(e)Rights that become Beneficially Owned by the Persons specified in Section 7(e) hereof are automatically null and void pursuant to that Section. 

Section 17.  Rights Certificate Holder Not Deemed a Stockholder.  No holder, as such, of any Rights Certificate shall be entitled to vote, receive dividends or be deemed for any purpose the holder of the number of one one-thousandths of a share of Preferred Stock or any other securities of the Company which may at any time be issuable on the exercise of the Rights represented thereby, nor shall anything contained herein or in any Rights Certificate be construed to confer upon the holder of any Rights Certificate, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting stockholders (except as provided in Section 25 hereof), or to receive dividends or subscription rights, or otherwise, until the Right or Rights evidenced by such Rights Certificate shall have been exercised in accordance with the provisions hereof. 

Section 18.  Concerning the Rights Agent.  
(a)The Company agrees to pay to the Rights Agent reasonable compensation as shall be agreed upon in writing between the Company and the Rights Agreement for all services rendered by it hereunder and, from time to time, on demand of the Rights Agent, its reasonable expenses and counsel fees 

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and other disbursements incurred in the preparation, negotiation, execution, delivery, amendment and administration of this Agreement and the exercise and performance of its duties hereunder. The Company also agrees to indemnify the Rights Agent including its members, directors, officers, employees, shareholders and agents, for, and to hold it harmless against, any loss, liability, damage, judgment, fine, penalty, claim, demand, settlement, cost or expense (including, without limitation, the reasonable fees and expenses of legal counsel) incurred without gross negligence, bad faith or willful misconduct on the part of the Rights Agent, for any action taken, suffered or omitted by the Rights Agent in connection with the acceptance, administration, exercise and performance of its duties under this Agreement, including, without limitation, the costs and expenses of defending against and appealing any claim of liability arising therefrom, directly or indirectly. The provisions of this Section 18 and Section 20 below shall survive the exercise or expiration of the Rights, the termination of this Agreement, or the resignation or removal of the Rights Agent. The costs and expenses incurred in enforcing this right of indemnification shall be paid by the Company. 
(b)The Rights Agent shall be authorized and protected and shall incur no liability for or in respect of any action taken, suffered or omitted by it in connection with its acceptance and administration of this Agreement and the exercise and performance of its duties hereunder, in reliance upon any Rights Certificate or certificate for Common Stock or for other securities of the Company, instrument of assignment or transfer, power of attorney, endorsement, affidavit, letter, notice, direction, consent, certificate, statement, or other paper or document believed by it to be genuine and to be signed, executed, and where necessary, verified, guaranteed or acknowledged, by the proper Person or Persons, or otherwise upon the advice of counsel as set forth in Section 20 hereof.  The Rights Agent shall not be deemed to have any knowledge of any event of which it was supposed to receive notice thereof hereunder, and the Rights Agent shall be fully protected and shall incur no liability for failing to take any action in connection therewith, unless and until it has received such notice in writing.

Section 19.  Merger or Consolidation or Change of Name of Rights Agent.  
(a)Any Person into which the Rights Agent or any successor Rights Agent may be merged or with which it may be consolidated, or any Person resulting from any merger or consolidation to which the Rights Agent or any successor Rights Agent shall be a party, or any Person succeeding to the corporate trust or stock transfer business of the Rights Agent or any successor Rights Agent, shall be the successor to the Rights Agent under this Agreement without the execution or filing of any paper or any further act on the part of any of the parties hereto, provided, that such Person would be eligible for appointment as a successor Rights Agent under the provisions of Section 21 hereof. In case at the time such successor Rights Agent shall succeed to the agency created by this Agreement, any of the Rights Certificates shall have been countersigned but not delivered; any such successor Rights Agent may adopt the countersignature of a predecessor Rights Agent and deliver such Rights Certificates so countersigned; and in case at that time any of the Rights Certificates shall not have been countersigned, any successor Rights Agent may countersign such Rights Certificates either in the name of the predecessor Rights Agent or in the name of the successor Rights Agent; and in all such cases such Rights Certificates shall have the full force provided in the Rights Certificates and in this Agreement. 
(b)In case at any time the name of the Rights Agent shall be changed and at such time any of the Rights Certificates shall have been countersigned but not delivered, the Rights Agent may adopt the countersignature under its prior name and deliver Rights Certificates so countersigned; and in case at that time any of the Rights Certificates shall not have been countersigned, the Rights Agent may countersign such Rights Certificates either in its prior name or in its changed name; and in all such cases such Rights Certificates shall have the full force provided in the Rights Certificates and in this Agreement. 

Section 20.  Rights and Duties of Rights Agent.  The Rights Agent undertakes to perform only the duties and obligations expressly set forth in this Agreement, and no implied duties or obligations, upon 

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the following terms and conditions, by all of which the Company and the holders of Rights Certificates, by their acceptance thereof, shall be bound: 
(a)The Rights Agent may consult with legal counsel (who may be legal counsel for the Company or an employee of the Rights Agent), and the advice or opinion of such counsel shall be full and complete authorization and protection to the Rights Agent and the Rights Agent shall incur no liability for or in respect of any action taken, suffered or omitted by it and in accordance with such advice or opinion. 
(b)Whenever in the performance of its duties under this Agreement the Rights Agent shall deem it necessary or desirable that any fact or matter (including, without limitation, the identity of any Acquiring Person and the determination of “Current Market Price”) be proved or established by the Company prior to taking, suffering or omitting to take any action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established by a certificate signed by the Chairman of the Board, any Vice Chairman, the President, any Vice President, the Treasurer, any Assistant Treasurer, the Secretary or any Assistant Secretary of the Company and delivered to the Rights Agent; and such certificate shall be full and complete authorization and protection to the Rights Agent and the Rights Agent shall incur no liability for or in respect of any action taken, suffered or omitted by it under the provisions of this Agreement in reliance upon such certificate. 
(c)The Rights Agent shall be liable hereunder to the Company and any other Person only for its own gross negligence, bad faith or willful misconduct (each as determined by a final, non-appealable, judgment of a court of competent jurisdiction); provided, however, that the Rights Agent shall under no circumstances be liable for indirect, consequential, special, punitive or incidental damages (including but not limited to lost profits) under any provisions of this Agreement, even if the Rights Agent has been advised of or has foreseen the possibility or likelihood of such damages.  Notwithstanding anything in this Agreement to the contrary, the liability of the Rights Agent under this Agreement will be limited to the amount of the annual fees paid by the Company to the Rights Agent during the twelve (12) months immediately preceding the event for which recovery from the Rights Agent is being sought. 
(d)The Rights Agent shall not be liable for or by reason of any of the statements of fact or recitals contained in this Agreement or in the Rights Certificates or be required to verify the same (except as to its countersignature on such Rights Certificates), but all such statements and recitals are and shall be deemed to have been made by the Company only. 
(e)The Rights Agent shall not have any liability or be under any responsibility in respect of the validity of this Agreement or the execution and delivery hereof (except the due execution hereof by the Rights Agent) or in respect of the validity or execution of any Rights Certificate (except its countersignature thereof); nor shall it be responsible for any breach by the Company of any covenant or condition contained in this Agreement or in any Rights Certificate; nor shall it be responsible for any adjustment required under the provisions of Section 11 or Section 13 hereof or responsible for the manner, method or amount of any such adjustment or the ascertaining of the existence of facts that would require any such adjustment (except with respect to the exercise of Rights evidenced by Rights Certificates after actual notice of any such adjustment, upon which the Rights Agent may rely); nor shall it by any act hereunder be deemed to make any representation or warranty as to the authorization or reservation of any shares of Common Stock or Preferred Stock to be issued pursuant to this Agreement or any Rights Certificate or as to whether any shares of Common Stock, Preferred Stock or other securities, will when so issued, be validly authorized and issued, fully paid and nonassessable. 
(f)The Company agrees that it will perform, execute, acknowledge and deliver or cause to be performed, executed, acknowledged and delivered all such further and other acts, instruments and assurances as may reasonably be required by the Rights Agent for the carrying out or performing by the Rights Agent of the provisions of this Agreement. 
(g)The Rights Agent is hereby authorized and directed to accept instructions with respect to the performance of its duties hereunder from any one of the Chairman of the Board, any Vice Chairman, the President, the Chief Executive Officer, the Chief Financial Officer, the Chief Accounting Officer, any 

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Vice President, the Secretary, any Assistant Secretary, the Treasurer or any Assistant Treasurer of the Company, and to apply to such officers for advice or instructions in connection with its duties, and such instructions shall be full authorization and protection to the Rights Agent and the Rights Agent shall not be liable for or in respect of any action taken, suffered or omitted by it in accordance with instructions of any such officer or for any delay in acting while waiting for those instructions. The Rights Agent shall be fully authorized and protected in relying upon the most recent instructions received by any such officer. 
(h)The Rights Agent and any stockholder, affiliate, director, officer or employee of the Rights Agent may buy, sell or deal in any of the Rights or other securities of the Company or become pecuniarily interested in any transaction in which the Company may be interested, or contract with or lend money to the Company or otherwise act as fully and freely as though the Rights Agent were not Rights Agent under this Agreement. Nothing herein shall preclude the Rights Agent or any such stockholder, affiliate, director, officer or employee from acting in any other capacity for the Company or for any other Person. 
(i)The Rights Agent may execute and exercise any of the rights or powers hereby vested in it or perform any duty hereunder either itself (through its directors, officers or employees) or by or through its attorneys or agents, and the Rights Agent shall not be answerable or accountable for any act, omission, default, neglect or misconduct of any such attorneys or agents or for any loss to the Company or any other Person resulting from any such act, omission, default, neglect or misconduct. 
(j)No provision of this Agreement shall require the Rights Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder or in the exercise of its rights if it believes that repayment of such funds or adequate indemnification against such risk or liability is not reasonably assured to it. 
(k)If, with respect to any Rights Certificate surrendered to the Rights Agent for exercise or transfer, the certificate attached to the form of assignment or form of election to purchase, as the case may be, has either not been completed or indicates an affirmative response to clause 1 and/or 2 thereof, the Rights Agent shall not take any further action with respect to such requested exercise or transfer without first consulting with the Company. 
(l)The Rights Agent shall have no responsibility to the Company, any holders of Rights or any holders of shares of Common Stock for interest or earnings on any moneys held by the Rights Agent pursuant to this Agreement. 
(m)The Rights Agent shall not be required to take notice or be deemed to have notice of any event or condition hereunder, including, but not limited to, a Distribution Date, a Redemption Date, any adjustment of the Purchase Price of the Common Stock, and adjustment to the Purchase Price of the Preferred Stock, the existence of an Acquiring Person or any other event or condition that may require action by the Rights Agent, unless the Rights Agent shall be specifically notified in writing of such event or condition by the Company, and all notices or other instruments required by this Agreement to be delivered to the Rights Agent must, in order to be effective, be received by the Rights Agent as specified in Section 26 hereof, and in the absence of such notice so delivered, the Rights Agent may conclusively assume no such event or condition exists. 

Section 21.  Change of Rights Agent.  The Rights Agent or any successor Rights Agent may resign and be discharged from its duties under this Agreement upon thirty (30) days’ notice in writing to the Company in the manner set forth in Section 26 herein.  In the event the transfer agency relationship in effect between the Company and the Rights Agent terminates, the Rights Agent will be deemed to have resigned automatically and be discharged from its duties under this Agreement as of the effective date of such termination, and the Company shall be responsible for sending any required notice. The Company may remove the Rights Agent or any successor Rights Agent upon thirty (30) days’ notice in writing, mailed to the Rights Agent or successor Rights Agent, as the case may be, and shall provide notice thereof to each transfer agent of the Common Stock and Preferred Stock, by registered or certified mail, and to the holders of the Rights Certificates in accordance with Section 26 hereof, or, if prior to the Distribution Date, to the holders of Rights through any 

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filing made by the Company pursuant to the Exchange Act. If the Rights Agent shall resign or be removed or shall otherwise become incapable of acting, the Company shall appoint a successor to the Rights Agent. If the Company shall fail to make such appointment within a period of thirty (30) days after giving notice of such removal or after it has been notified in writing of such resignation or incapacity by the resigning or incapacitated Rights Agent or by the record holder of a Rights Certificate (who shall, with such notice, submit his Rights Certificate for inspection by the Company), then the Company shall become the Rights Agent until a successor Rights Agent has been appointed, and any record holder of any Rights Certificate or the Rights Agent may apply to any court of competent jurisdiction for the appointment of a new Rights Agent. Any successor Rights Agent, whether appointed by the Company or by such a court, shall be (a) a Person organized and doing business under the laws of the United States or of the State of Arizona or the State of New York (or of any other state of the United States so long as such corporation is authorized to do business as a banking institution in the State of Arizona or the State of New York), in good standing, and is subject to supervision or examination by federal or state authority and which has at the time of its appointment as Rights Agent a combined capital and surplus of at least $50,000,000 or (b) an Affiliate of a Person described in clause (a).
After appointment, the successor Rights Agent shall be vested with the same powers, rights, duties and responsibilities as if it had been originally named as Rights Agent without further act or deed; but the predecessor Rights Agent shall deliver and transfer to the successor Rights Agent any property at the time held by it hereunder, and execute and deliver any further assurance, conveyance, act or deed necessary for the purpose, but the Rights Agent shall not be required to make any additional expenditure or assume any additional liability in connection with the foregoing. Not later than the effective date of any such appointment, the Company shall file notice thereof in writing with the predecessor Rights Agent and each transfer agent of the Common Stock and the Preferred Stock, and mail a notice thereof in writing to the registered holders of the Rights Certificates in accordance with Section 26 hereof, or, if prior to the Distribution Date, give notice to the holders of Rights through any filing made by the Company pursuant to the Exchange Act. Failure to give any notice provided for in this Section 21, however, or any defect therein, shall not affect the legality or validity of the resignation or removal of the Rights Agent or the appointment of the successor Rights Agent, as the case may be. 

Section 22.  Issuance of New Rights Certificates.  Notwithstanding any of the provisions of this Agreement or of the Rights to the contrary, the Company may, at its option, issue new Rights Certificates evidencing Rights in such form as may be approved by its Board to reflect any adjustment or change in the Purchase Price and the number or kind or class of shares or other securities or property purchasable under the Rights Certificates made in accordance with the provisions of this Agreement. In addition, in connection with the issuance or sale of shares of Common Stock following the Distribution Date and prior to the redemption or expiration of the Rights, the Company (a) shall, with respect to shares of Common Stock so issued or sold pursuant to the exercise of stock options or under any employee plan or arrangement, granted or awarded as of the Distribution Date, or upon the exercise, conversion or exchange of securities issued by the Company on or prior to the Distribution Date, and (b) may, in any other case, if deemed necessary or appropriate by the Board, issue Rights Certificates representing the appropriate number of Rights in connection with such issuance or sale; provided, however, that (i) no such Rights Certificates shall be issued and this sentence shall be null and void ab initio if, and to the extent that, the Company shall be advised by counsel that such issuance would create a significant risk of material adverse tax consequences to the Company or the Person to whom such Rights Certificate would be issued, and (ii) no such Rights Certificate shall be issued 

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if, and to the extent that, appropriate adjustment shall otherwise have been made in lieu of the issuance thereof. 

Section 23.  Redemption and Termination.  
(a)The Board, at its option, at any time prior to the earlier of (i) the close of business on the tenth Business Day following the Stock Acquisition Date (or, if the Stock Acquisition Date shall have occurred prior to the Record Date, the close of business on the tenth Business Day following the Record Date), or (ii) the time at which the Rights expire pursuant to this Agreement, redeem all but not less than all the then outstanding Rights at a redemption price of $0.001 per Right (such redemption price being hereinafter referred to as the “Redemption Price”). Notwithstanding anything contained in this Agreement to the contrary, the Rights shall not be exercisable after the first occurrence of a Section 11(a)(ii) Event until such time as the Company’s right of redemption hereunder has expired. The Company may, at its option, pay the Redemption Price in cash, shares of Common Stock (based on the Current Market Price of the Common Stock at the time of redemption) or any other form of consideration deemed appropriate by the Board. The redemption of the Rights may be made effective at such time, on such basis and with such conditions as the Board in its sole discretion may establish. 
(b)Immediately upon the action of the Board ordering the redemption of the Rights pursuant to Section 23(a) (or at such later time as the Board may establish for the effectiveness of such redemption), notice of which shall have been provided to the Rights Agent, and without any further action and without any notice, the right to exercise the Rights will terminate and the only right thereafter of the holders of Rights shall be to receive the Redemption Price for each Right so held. Promptly after the action by the Board ordering the redemption of the Rights becoming effective, the Company shall provide notice of such redemption to the holders of the then outstanding Rights, with prompt written notice thereof to the Rights Agent, each in accordance with Section 26 hereof (provided that the failure to provide, or any defect in, such notice shall not affect the legality or validity of such redemption). Any notice which is provided in the manner herein provided shall be deemed given, whether or not the record holder receives the notice. Each such notice of redemption will state the method by which the payment of the Redemption Price will be made. 

Section 24.  Exchange.  
(a)The Board may, at its option, at any time after any Person becomes an Acquiring Person, exchange all or part of the then outstanding and exercisable Rights (which shall not include Rights that have become null and void pursuant to the provisions of Section 7(e) hereof) for shares of Common Stock at an exchange ratio of one share of Common Stock per Right, appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring after the date hereof (such exchange ratio being hereinafter referred to as the “Exchange Ratio”), provided that the shares of Common Stock so exchanged shall be of the same class or series which the holders of such Rights would have been entitled to receive upon the exercise thereof. Notwithstanding the foregoing, the Board shall not be empowered to effect such exchange at any time after any Person (other than an Exempted Person), together with all Affiliates and Associates of such Person, becomes the Beneficial Owner of Voting Securities of the Company then outstanding representing 50% or more of the Voting Power of the Company. 
(b)Immediately upon the action of the Board ordering the exchange of any Rights pursuant to Section 24(a) and without any further action and without any notice, the right to exercise such Rights shall terminate and the only right thereafter of the holders of such Rights shall be to receive that number of shares of Common Stock equal to the number of such Rights held by such holder multiplied by the Exchange Ratio, provided that the shares of Common Stock so exchanged shall be of the same class or series which the holder of such Rights would have been entitled to receive upon the exercise thereof. The Company shall promptly make a public announcement of any such exchange (with prompt written notice thereof to the Rights Agent); provided, however, that the failure to make, or any defect in, such public announcement shall not affect the legality or validity of such exchange. Promptly after the action of the Board ordering the exchange of the 

33

Rights becoming effective, the Company shall provide notice of such exchange to the holders of the then outstanding Rights in accordance with Section 26 hereof (provided that the failure to give, or any defect in, such notice shall not affect the validity of such exchange). Any notice which is mailed in the manner provided in Section 26 hereof shall be deemed given, whether or not the holder receives the notice. Each such notice of exchange will state the method by which the exchange of the shares of Common Stock for Rights will be effected and, in the event of any partial exchange, the number of Rights which will be exchanged. Any partial exchange shall be effected based on the number of Rights (other than Rights which have become null and void pursuant to the provisions of Section 7(e) hereof) held by each holder of Rights.
(c)In the event that there shall not be authorized and unissued shares of the applicable class or series of Common Stock and/or authorized and issued shares of the applicable class or series of Common Stock held in its treasury sufficient to permit any exchange of Rights as contemplated in accordance with this Section 24, the Company shall take all such action as may be necessary to authorize additional shares of the applicable class or series of Common Stock for issuance upon exchange of the Rights. In the event the Company shall, after good faith effort, be unable to take all such action as may be necessary to authorize such additional shares of the applicable class or series of Common Stock, the Company shall substitute, for each share of such class or series of Common Stock that would otherwise be issuable upon exchange of a Right, a number of shares of the applicable series of Preferred Stock or fraction thereof (subject to Section 14(b) hereof) such that the Current Market Price per share of the applicable series of Preferred Stock multiplied by such number or fraction is equal to the Current Market Price per share of such class or series of Common Stock as of the date of issuance of such shares of such series of Preferred Stock or fraction thereof. 
(d)The Company shall not be required to issue fractions of shares of Common Stock or to distribute certificates which evidence fractional shares of Common Stock. In lieu of such fractional shares of Common Stock, the Company shall pay to the registered holders of the Rights Certificates with regard to which such fractional shares of Common Stock would otherwise be issuable an amount in cash equal to the same fraction of the Current Market Price per share of the applicable class or series of Common Stock as of the Trading Day immediately prior to the record date of exchange pursuant to this Section 24. 

Section 25.  Notice of Certain Events.  
(a)In case the Company shall propose, at any time after the Distribution Date, (i) to pay any dividend payable in stock of any class to the holders of Preferred Stock or to make any other distribution to the holders of Preferred Stock (other than a regular quarterly cash dividend out of earnings or retained earnings of the Company), or (ii) to offer to the holders of Preferred Stock rights or warrants to subscribe for or to purchase any additional shares of Preferred Stock or shares of stock of any class or any other securities, rights or options, or (iii) to effect any reclassification of its Preferred Stock (other than a reclassification involving only the subdivision of outstanding shares of Preferred Stock), or (iv) to effect any consolidation or merger into or with any other Person (other than a Subsidiary of the Company in a transaction which complies with Section 11(p) hereof), or to effect any sale or other transfer (or to permit one or more of its Subsidiaries to effect any sale or other transfer), in one transaction or a series of related transactions, of more than 50% of the assets or earning power of the Company and its Subsidiaries (taken as a whole) to any other Person or Persons (other than the Company and/or any of its Subsidiaries in one or more transactions each of which complies with Section 11(p) hereof), or (v) to effect the liquidation, dissolution or winding up of the Company, then, in each such case, the Company shall give to each holder of a Rights Certificate and to the Rights Agent, in accordance with Section 26 hereof, a notice of such proposed action, which shall specify the record date for the purposes of such stock dividend, distribution of rights or warrants, or the date on which such reclassification, consolidation, merger, sale, transfer, liquidation, dissolution, or winding up is to take place and the date of participation therein by the holders of the shares of Preferred Stock, if any such date is to be fixed, and such notice shall be so given in the case of any action covered by clause (i) or (ii) above at least ten (10) days prior to the record date for determining holders of the shares of Preferred 

34

Stock for purposes of such action, and in the case of any such other action, at least ten (10) days prior to the date of the taking of such proposed action or the date of participation therein by the holders of the shares of Preferred Stock whichever shall be the earlier.
(b)In the event that a Section 11(a)(ii) Event shall occur, then in any such case (i) the Company shall as soon as practicable thereafter give to the Rights Agent and to each holder of a Rights Certificate, in accordance with Section 26 hereof, a notice of the occurrence of such event, which shall specify the event and the consequences of the event to holders of Rights under Section 11(a)(ii) hereof, and (ii) all references in the preceding paragraph to Preferred Stock shall be deemed thereafter to refer to Common Stock and/or, if appropriate, other securities of the Company. 

Section 26.  Notices.  Notices or demands authorized by this Agreement to be given or made by the Rights Agent or by the holder of any Rights Certificate to or on the Company shall be sufficiently given or made if sent by overnight delivery service or first-class mail, postage prepaid, addressed (until another address is filed in writing with the Rights Agent) or by facsimile transmission as follows: 
	
			
	 
	Amtech Systems, Inc.  

	 
	131 South Clark Drive  

	 
	Tempe, AZ  85281  

	 
	Attention: Chief Financial Officer  

	 
	Facsimile No: (480) 967-5146  

	 
	  

	 
	With a copy to:  

	 
	  

	 
	Squire Patton Boggs (US) LLP  

	 
	1 East Washington Street

	 
	Suite 2700

	 
	Phoenix, AZ  85004 

	 
	Attention: 
	Christopher D. Johnson, Esq.   

	 
	 
	Jaime R. Daddona, Esq.

	 
	Facsimile No: (602) 253-8129  

Subject to the provisions of Section 21, any notice or demand authorized by this Agreement to be given or made by the Company or by the holder of any Rights Certificate to or on the Rights Agent shall be sufficiently given or made upon receipt by the Rights Agent, if sent by overnight delivery service or registered or certified mail, postage prepaid, addressed (until another address is filed in writing with the Company) or by facsimile transmission as follows: 
	
		
	 
	Computershare Trust Company, N.A.  

	 
	250 Royall Street  

	 
	Canton, MA 02021  

	 
	Attention: Client Services  

Notices or demands authorized by this Agreement to be given or made by the Company or the Rights Agent to the holder of any Rights Certificate (or, if prior to the Distribution Date, to the holder of certificates representing shares of Common Stock) shall be sufficiently given or made if sent by overnight delivery service or first-class mail, postage prepaid, addressed to such holder at the address of such holder as shown on the registry books of the Company as held and maintained by the Rights Agent (or, if prior to the Distribution Date, on the registry books of the transfer agent for the Common Stock of the Company). 

35

Section 27.  Supplements and Amendments.  Subject to the provisions of this Section 27, for so long as the Rights are then redeemable, the Company may in its sole and absolute discretion, and the Rights Agent shall if the Company so directs, supplement or amend any provision of this Agreement without the approval of any holders of the Rights. At any time when the Rights are no longer redeemable, but subject to the provisions of this Section 27, the Company may, and the Rights Agent shall if the Company so directs, supplement or amend this Agreement without the approval of any holders of Rights Certificates in order to (i) cure any ambiguity, (ii) correct or supplement any provision contained herein which may be defective or inconsistent with any other provisions herein, (iii) shorten or lengthen any time period hereunder, or (iv) change or supplement the provisions hereunder in any manner which the Company may deem necessary or desirable; provided that no such supplement or amendment adversely affects the interests of the holders of Rights as such (other than an Acquiring Person or an Affiliate or Associate of an Acquiring Person) and no such amendment may cause the Rights again to become redeemable or cause the Agreement again to become amendable other than in accordance with this sentence. Upon the delivery of a certificate from an appropriate officer of the Company and, if requested by the Right Agent, an opinion of counsel, which states that the proposed supplement or amendment is in compliance with the terms of this Section 27, the Rights Agent shall execute such supplement or amendment; provided, however, that the Rights Agent may, but shall not be obligated to, enter into any such supplement or amendment which adversely affects the Rights Agent’s own rights, duties, obligations or immunities under this Agreement and the Rights Agent shall not be bound by supplements or amendments not executed by it. Notwithstanding anything contained in this Agreement to the contrary, no supplement or amendment shall be made which changes the Redemption Price. Prior to the Distribution Date, the interests of the holders of Rights shall be deemed coincident with the interests of the holders of Common Stock. 

Section 28.  Successors.  All the covenants and provisions of this Agreement by or for the benefit of the Company or the Rights Agent shall bind and inure to the benefit of their respective successors and assigns hereunder. 

Section 29.  Determinations and Actions by the Board, Etc.  For all purposes of this Agreement, any calculation of the number of shares of Common Stock outstanding at any particular time, including for purposes of determining the particular percentage of such outstanding shares of Common Stock of which any Person is the Beneficial Owner, shall be made in accordance with the last sentence of Rule 13d-3(d)(1)(i) of the General Rules and Regulations under the Exchange Act as amended and in effect on the date hereof. The Board, except as otherwise specifically provided for herein, shall have the exclusive power and authority to administer this Agreement and to exercise all rights and powers specifically granted to the Board or to the Company, or as may be necessary or advisable in the administration of this Agreement, including, without limitation, the right and power to (i) interpret the provisions of this Agreement, and (ii) make all determinations deemed necessary or advisable for the administration of this Agreement (including a determination to redeem or not redeem the Rights or to amend the Agreement). All such actions, calculations, interpretations and determinations (including, for purposes of clause (y) below, all omissions with respect to the foregoing) which are done or made by the Board in good faith, shall (x) be final, conclusive and binding on the Company, the Rights Agent, the holders of the Rights Certificates (and, prior to the Distribution Date, record holders of the Common Stock) and all other parties, and (y) not subject the Board to any liability to the holders of the Rights. The Rights Agent is entitled always to assume the Company’s Board acted in good faith and shall be fully protected and incur no liability in reliance thereon. 

36

Section 30.  Benefits of this Agreement.  Nothing in this Agreement shall be construed to give to any Person other than the Company, the Rights Agent and the record holders of the Rights Certificates (and, prior to the Distribution Date, record holders of the Common Stock) any legal or equitable right, remedy or claim under this Agreement; but this Agreement shall be for the sole and exclusive benefit of the Company, the Rights Agent and the record holders of the Rights Certificates (and, prior to the Distribution Date, record holders of the Common Stock).
 
Section 31.  Severability.  If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated; provided, however, that notwithstanding anything in this Agreement to the contrary, if any such term, provision, covenant or restriction is held by such court or authority to be invalid, void or unenforceable and the Board determines in its good faith judgment that severing the invalid language from this Agreement would adversely affect the purpose or effect of this Agreement, the right of redemption set forth in Section 23 hereof shall be reinstated and shall not expire until the close of business on the tenth Business Day (or such longer period of time as permitted pursuant to Section 27 of this Agreement) following the date of such determination by the Board. Without limiting the foregoing, if any provision requiring that a determination be made by less than the entire Board (or at a time or with the concurrence of a group of directors consisting of less than the entire Board) is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, such determination shall then be made by the Board in accordance with applicable law and the Company’s Certificate of Incorporation and Bylaws. 

Section 32.  Governing Law.  This Agreement, each Right and each Rights Certificate issued hereunder shall be deemed to be a contract made under the laws of the State of Arizona and for all purposes shall be governed by and construed in accordance with the laws of such State applicable to contracts made and to be performed entirely within such State; provided, however, that all provisions regarding the rights, duties, obligations and immunities of the Rights Agent shall be governed by and construed in accordance with the laws of the State of New York applicable to contracts made and to be performed entirely within such State.
 
Section 33.  Counterparts.  This Agreement may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.  A signature to this Agreement transmitted electronically shall have the same authority, effect, and enforceability as an original signature.

Section 34.  Descriptive Headings.  Descriptive headings of the several Sections of this Agreement are inserted for convenience only and shall not control or affect the meaning or construction of any of the provisions hereof. 

Section 35.  Force Majeure.  Notwithstanding anything to the contrary contained herein, the Rights Agent shall not be liable for any delays or failures in performance resulting from acts beyond its reasonable control including, without limitation, acts of nature, terrorist acts, shortage of supply, breakdowns or malfunctions, interruptions or malfunction of computer facilities, or loss of data due to power failures or mechanical difficulties with information storage or retrieval systems, labor difficulties, war, or civil unrest.

[Signature page follows]

37

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed, all as of the day and year first above written. 
	
			
	 
	AMTECH SYSTEMS, INC.  

	 
	  

	 
	  

	 
	By:  /s/ Bradley C. Andersen

	 
	Name: Bradley C. Anderson 

	 
	Title: Executive Vice President & Chief Financial Officer

	 
	  

	 
	  

	 
	COMPUTERSHARE TRUST COMPANY, N.A.,  

	 
	as Rights Agent  

	 
	  

	 
	  

	 
	By:  
	/s/ Patrick Hayes

	 
	 
	Name: Patrick Hayes

	 
	Title: VP & Manager

38

EXHIBIT A 
SECOND AMENDED AND RESTATED 
CERTIFICATE OF DESIGNATION OF RIGHTS, PREFERENCES 
AND PRIVILEGES OF 
SERIES A PARTICIPATING PREFERRED STOCK 
OF 
AMTECH SYSTEMS, INC. 
Amtech Systems Inc., a corporation organized and existing under the laws of the State of Arizona (the “Corporation”), in accordance with the provisions of Section 10-0001 thereof, DOES HEREBY CERTIFY: 
That pursuant to the authority conferred upon the Board of Directors by the Articles of Incorporation, as amended, of the said Corporation, the said Board of Directors on December 9, 2008, adopted this Second Amended and Restated Certificate of Designation of Rights, Preferences and Privileges of Series A Participating Preferred Stock with the following designations, powers, preferences and relative and other special rights and the qualifications, limitations and restrictions (all terms used herein which are defined in the Articles of Incorporation, as amended, shall be deemed to have the meanings provided therein): 
1. DESIGNATION AND AMOUNT.  The shares of such series shall be designated as “Series A Participating Preferred Stock” and the number of shares constituting such series shall initially be 100,000 with no par value, such number of shares to be subject to increase or decrease by action of the Board of Directors. 
2. DIVIDENDS AND DISTRIBUTIONS. 
(a) Subject to the prior and superior rights of the holders of any shares of any series of Preferred Stock ranking prior and superior to the shares of Series A Participating Preferred Stock with respect to dividends, the holders of shares of Series A Participating Preferred Stock shall be entitled to receive, when, as and if declared by the Board of Directors out of funds legally available for the purpose, quarterly dividends payable in cash on the last day of March, June, September and December in each year (each such date being referred to herein as a “Quarterly Dividend Payment Date”), commencing on the first Quarterly Dividend Payment Date after the first issuance of a share or fraction of a share of Series A Participating Preferred Stock, in an amount per share (rounded to the nearest cent) equal to the greater of (a) $5.00 or (b) subject to the provision for adjustment hereinafter set forth, 1000 times the aggregate per share amount of all cash dividends, and 1000 times the aggregate per share amount (payable in kind) of all non-cash dividends or other distributions other than a dividend payable in shares of Common Stock or a subdivision of the outstanding shares of Common Stock (by reclassification or otherwise), declared on the Common Stock, $.01 par value, of the Corporation (the “Common Stock”) since the immediately preceding Quarterly Dividend Payment Date, or, with respect to the first Quarterly Dividend Payment Date, since the first issuance of any share or fraction of a share of Series A Participating Preferred Stock. In the event the Corporation shall at any time after May 17, 1999 (the “Rights Declaration Date”), (i) declare any dividend on Common Stock payable in shares of Common Stock, (ii) subdivide the outstanding Common Stock, or (iii) combine the outstanding Common Stock into a smaller number of shares, then in each such case the amount to which holders of shares of Series A Participating Preferred Stock were entitled immediately prior to such event 

A - 1

under clause (b) of the preceding sentence shall be adjusted by multiplying such amount by a fraction the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event. 
(b) The Corporation shall declare a dividend or distribution on the Series A Participating Preferred Stock as provided in paragraph (a) above concurrently with its declaration of a dividend or distribution on the Common Stock (other than a dividend payable in shares of Common Stock); provided that, in the event no dividend or distribution shall have been declared on the Common Stock during the period between any Quarterly Dividend Payment Date and the next subsequent Quarterly Dividend Payment Date, a dividend of $5.00 per share of the Series A Participating Preferred Stock shall nevertheless be payable on such subsequent Quarterly Dividend Payment Date. 
(c) Dividends shall begin to accrue and be cumulative on outstanding shares of Series A Participating Preferred Stock from the Quarterly Dividend Payment Date next preceding the date of issue of such shares unless the date of issue of such shares is prior to the record date for the first Quarterly Dividend Payment Date, in which case dividends on such shares shall begin to accrue from the date of issue of such shares, or unless the date of issue is a Quarterly Dividend Payment Date or is a date after the record date for the determination of holders of shares of Series A Participating Preferred Stock entitled to receive a quarterly dividend and before such Quarterly Dividend Payment Date, in either of which events such dividends shall begin to accrue and be cumulative from such Quarterly Dividend Payment Date. Accrued but unpaid dividends shall not bear interest. Dividends paid on the shares of Series A Participating Preferred Stock in an amount less than the total amount of such dividends at the time accrued and payable on such shares shall be allocated pro rata on a share-by-share basis among all such shares at the time outstanding. The Board of Directors may fix a record date for the determination of holders of shares of Series A Participating Preferred Stock entitled to receive payment of a dividend or distribution declared thereon, which record date shall be no more than thirty (30) days prior to the date fixed for the payment thereof. 
3. VOTING RIGHTS.  The holders of shares of Series A Participating Preferred Stock shall have voting rights as set forth in Section 3.7 of the Bylaws of the Corporation. 
4. CERTAIN RESTRICTIONS. 
(a) Whenever quarterly dividends or other dividends or distributions payable on the Series A Participating Preferred Stock as provided herein are in arrears, thereafter and until all accrued and unpaid dividends and distributions, whether or not declared, on shares of Series A Participating Preferred Stock outstanding shall have been paid in full, the Corporation shall not (i) declare or pay dividends on, make any other distributions on, or redeem or purchase or otherwise acquire for consideration any shares of stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series A Participating Preferred Stock; (ii) declare or pay dividends on or make any other distributions on any shares of stock ranking on a parity (either as to dividends or upon liquidation, dissolution or winding up) with the Series A Participating Preferred Stock, except dividends paid ratably on the Series A Participating Preferred Stock and all such parity stock on which dividends are payable or in arrears in proportion to the total amounts to which the holders of all such shares are then entitled; (iii) purchase or otherwise acquire for consideration any shares of Series A Participating Preferred Stock, except in accordance with a purchase offer made in writing or by publication (as determined by the Board of Directors) to all holders of such shares upon such terms as the Board of Directors, after consideration of the annual dividend rates and other rights and preferences of the series, shall determine in good faith will result in fair and equitable treatment to the holders of such series. 

A - 2

(b) The Corporation shall not permit any subsidiary of the Corporation to purchase or otherwise acquire for consideration any shares of stock of the Corporation unless the Corporation could, under paragraph (a) of this subsection, purchase or otherwise acquire such shares at such time and in such manner. 
5. REACQUIRED SHARES.  Any shares of Series A Participating Preferred Stock purchased or otherwise acquired by the Corporation in any manner whatsoever shall be retired promptly after the acquisition thereof. 
6. LIQUIDATION, DISSOLUTION OR WINDING UP. 
(a) Upon any liquidation (voluntary or otherwise), dissolution or winding up of the Corporation, no distribution shall be made to the holders of shares of stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series A Participating Preferred Stock unless, prior thereto, the holders of shares of Series A Participating Preferred Stock shall have received $51.60 per share, plus an amount equal to accrued and unpaid dividends and distributions thereon, whether or not declared, to the date of such payment (the “Series A Liquidation Preference”). 
(b) In the event, however, that there are not sufficient assets available to permit payment in full of the Series A Liquidation Preference and the liquidation preferences of all other series of preferred stock, if any, which rank on a parity with the Series A Participating Preferred Stock then such remaining assets shall be distributed ratably to the holders of such parity shares in proportion to their respective liquidation preferences. 
7. NO REDEMPTION.  The shares of Series A Participating Preferred Stock shall not be redeemable. 
8. RANKING.  The Series A Participating Preferred Stock shall rank equal to all other series of the Corporation’s Preferred Stock as to the payment of dividends and the distribution of assets. 
9. AMENDMENT.  The Articles of Incorporation, as amended, of the Corporation shall not be further amended in any manner which would materially alter or change the powers, preferences or special rights of the Series A Participating Preferred Stock so as to affect them adversely without the affirmative vote of the holders of two-thirds (2/3) or more of the outstanding shares of the Series A Participating Preferred Stock, voting separately as a class. 
10. FRACTIONAL SHARES.  Series A Participating Preferred Stock may be issued in fractions of a share which shall entitle the holder, in proportion to such holder’s fractional shares, to exercise voting rights, receive dividends, participate in distributions and to have the benefit of all other rights of holders of Series A Participating Preferred Stock. 

A - 3

EXHIBIT B 
FORM OF RIGHTS CERTIFICATE 
	
		
	Certificate No. R-
	________ Rights

NOT EXERCISABLE AFTER DECEMBER 14, 2018 OR EARLIER IF REDEEMED BY THE COMPANY OR THE OCCURRENCE OF A SECTION 11(a)(ii) EVENT (AS DEFINED IN THE RIGHTS AGREEMENT). THE RIGHTS ARE SUBJECT TO REDEMPTION, AT THE OPTION OF THE COMPANY, AT $.001 PER RIGHT ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. UNDER CERTAIN CIRCUMSTANCES, RIGHTS BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT) AND ANY SUBSEQUENT HOLDER OF SUCH RIGHTS SHALL BECOME NULL AND VOID. THE RIGHTS REPRESENTED BY THIS RIGHTS CERTIFICATE ARE OR WERE BENEFICIALLY OWNED BY A PERSON WHO WAS OR BECAME AN ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT) OR A SUBSEQUENT HOLDER OF SUCH RIGHTS. ACCORDINGLY, THIS RIGHTS CERTIFICATE AND THE RIGHTS REPRESENTED HEREBY SHALL BECOME, OR MAY ALREADY HAVE BECOME, NULL AND VOID IN THE CIRCUMSTANCES SPECIFIED IN SECTION 7(e) OF SUCH AGREEMENT AND MAY NOT BE TRANSFERRED TO ANY PERSON. 
RIGHTS CERTIFICATE 
AMTECH SYSTEMS, INC. 
This certifies that _____________________________, or registered assigns, is the registered owner of the number of Rights set forth above, each of which entitles the owner thereof, subject to the terms, provisions and conditions of the Rights Agreement, dated as of December 15, 2008, as it may from time to time be supplemented or amended (the “Rights Agreement”), between Amtech Systems, Inc., an Arizona corporation (the “Company”), and Corporate Stock Transfer, Inc., a Colorado corporation, the Rights Agent (the “Rights Agent”), to purchase from the Company at any time prior to 5:00 P.M. (New York City time) on December 14, 2018 (the “Final Expiration Date”) at the office of the Rights Agent designated for such purpose, or its successors as Rights Agent, one one-thousandth of a fully paid, nonassessable share of Series A Participating Preferred Stock (the “Preferred Stock”) of the Company, at a purchase price of $51.60 per one one-thousandth of a share (the “Purchase Price”), upon presentation and surrender of this Rights Certificate with the Form of Election to Purchase and related Certificate duly executed and properly completed. The number of Rights evidenced by this Rights Certificate (and the number of one one-thousandth of a share which may be purchased upon exercise thereof) set forth above, and the Purchase Price per share set forth above, are the number and Purchase Price as of December 15, 2008, based on the Preferred Stock as constituted at such date. As provided in the Rights Agreement, the Purchase Price, the number and kind of shares of Preferred Stock or other securities of the Company or any other Person (as such term is defined in the Rights Agreement) or other property, which may be purchased upon the exercise of the Rights evidenced by this Rights Certificate, and the timing of permitted exercise, are subject to modification and adjustment upon the happening of certain events including a Triggering Event (as such term is defined in the Rights Agreement). 
Upon the occurrence of a Section 11(a)(ii) Event (as such term is defined in the Rights Agreement), if the Rights evidenced by this Rights Certificate are beneficially owned by (i) an Acquiring Person or an 

B - 1

Affiliate or Associate of an Acquiring Person (as such terms are defined in the Rights Agreement), (ii) a transferee of an Acquiring Person or of any such Associate or Affiliate, or (iii) under certain circumstances specified in the Rights Agreement, a transferee of a person who, after such transfer, became an Acquiring Person or an Affiliate or Associate of an Acquiring Person, such Rights shall become null and void and no holder hereof shall have any right with respect to such Rights from and after the occurrence of such Section 11(a)(ii) Event. 
This Rights Certificate is subject to all of the terms, provisions and conditions of the Rights Agreement, which terms, provisions and conditions are hereby incorporated herein by reference and made a part hereof and to which Rights Agreement reference is hereby made for a full description of the rights, limitations of rights, obligations, duties and immunities hereunder of the Rights Agent, the Company and the holders of the Rights Certificates, which limitations of rights include the temporary suspension of the exercisability of such Rights under the specific circumstances set forth in the Rights Agreement. Copies of the Rights Agreement are on file at the above-mentioned office of the Rights Agent and are also available upon written request to the Rights Agent. 
This Rights Certificate, with or without other Rights Certificates, upon surrender at the office of the Rights Agent designated for such purpose, may be exchanged for another Rights Certificate or Rights Certificates of like tenor and date evidencing Rights entitling the holder to purchase a like aggregate number of one one-thousandths of a share of Preferred Stock or other securities of the Company or another Person or other property as the Rights evidenced by the Rights Certificate or Rights Certificates surrendered shall have entitled such holder to purchase. If this Rights Certificate shall be exercised in part, the holder shall be entitled to receive upon surrender hereof another Rights Certificate or Rights Certificates for the number of whole Rights not exercised. 
Subject to the provisions of the Rights Agreement, the Rights evidenced by this Certificate may be redeemed by the Company at its option at a redemption price of $0.001 per Right at any time prior to the earlier of the close of business on (i) the tenth business day following the Stock Acquisition Date, and (ii) the Final Expiration Date. In addition, subject to the provisions of the Rights Agreement, each Right evidenced by this Certificate may be exchanged by the Company at its option for one share of Common Stock of the Company (subject to adjustment for any stock split, stock dividend or similar transaction) following the Stock Acquisition Date and prior to the time an Acquiring Person owns 50% or more of the shares of Common Stock then outstanding. 
No fractional shares of Preferred Stock will be issued upon the exercise of any Right or Rights evidenced hereby (other than fractions which are integral multiples of one one-thousandth of a share of Preferred Stock, which may, at the election of the Company, be evidenced by depositary receipts), but in lieu thereof a cash payment will be made, as provided in the Rights Agreement. 
No holder of this Rights Certificate, as such, shall be entitled to vote or receive dividends or be deemed for any purpose the holder of shares of Preferred Stock or of any other securities of the Company which may at any time be issuable on the exercise hereof, nor shall anything contained in the Rights Agreement or herein be construed to confer upon the holder hereof, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting stockholders (except as provided in the Rights Agreement), or to receive dividends or subscription rights, or otherwise, until the Right or Rights evidenced by this Rights Certificate shall have been exercised as provided in the Rights Agreement. 

B - 2

This Rights Certificate shall not be valid or obligatory for any purpose until it shall have been countersigned by the Rights Agent. 
WITNESS the facsimile signature of the proper officers of the Company and its corporate seal. 
	
			
	Dated as of ____________, 20__.  
	AMTECH SYSTEMS, INC.  

	  

	  

	  
	By:  

	 
	 

	  
	Title:   

	
			
	ATTEST:  
	 

	  
	 

	  
	 

	Name:  
	 

	Title:  
	 

	  
	 

	  
	 

	Countersigned:  
	 

	  
	 

	  
	,

	as Rights Agent  
	 

	  
	 

	By:  
	 
	 

	 
	Name:     
	 

	 
	Title:    

B - 3

 [Form of Reverse Side of Rights Certificate] 
FORM OF ASSIGNMENT 
(To be executed by the registered holder if such 
holder desires to transfer the Rights Certificate.) 
	
		
	       FOR VALUE RECEIVED  
	 

	
		
	hereby sells, assigns and transfers unto  
	 

	 

	(Please print name and address of transferee)

	
		
	 
	 this Rights

	Certificate, together with all right, title and interest therein, and does hereby irrevocably constitute and appoint ___________________________________ Attorney, to transfer the within Rights Certificate on the books of the within-named Company, with full power of substitution.

	
						
	Dated: 
	 
	            
	 
	 

	  
	 
	Signature  

Signature Guaranteed: 

Signatures must be guaranteed by a participant in the Securities Transfer Agent Medallion Program, the Stock Exchanges Medallion Program or the New York Stock Exchange, Inc. Medallion Signature Program. A notary public is not sufficient.

B - 4

Certificate
The undersigned hereby certifies by checking the appropriate boxes that: 
(1) this Rights Certificate [ ] is [ ] is not being sold, assigned and transferred by or on behalf of a Person who is or was an Acquiring Person or an Affiliate or Associate of an Acquiring Person (as such terms are defined pursuant to the Rights Agreement); 
(2) after due inquiry and to the best knowledge of the undersigned, it [ ] did [ ] did not acquire the Rights evidenced by this Rights Certificate from any Person who is, was or subsequently became an Acquiring Person or an Affiliate or Associate of an Acquiring Person. 
	
						
	Dated: 
	 
	            
	 
	 

	  
	 
	Signature  

Signature Guaranteed: 

Signatures must be guaranteed by a participant in the Securities Transfer Agent Medallion Program, the Stock Exchanges Medallion Program or the New York Stock Exchange, Inc. Medallion Signature Program. A notary public is not sufficient.
NOTICE
The signature to the foregoing Assignment and Certificate must correspond to the name as written upon the face of this Rights Certificate in every particular, without alteration or enlargement or any change whatsoever. 

B - 5

FORM OF ELECTION TO PURCHASE
     (To be executed if holder desires to 
exercise Rights represented by the Rights Certificate.) 
To: AMTECH SYSTEMS, INC.: 
The undersigned hereby irrevocably elects to exercise _______ Rights represented by this Rights Certificate to purchase the shares of Preferred Stock issuable upon the exercise of the Rights (or such other securities of the Company or of any other Person which may be issuable upon the exercise of the Rights) and requests that certificates for such shares be issued in the name of and delivered to: 
	
		
	Please insert social security or taxpayer identification number  
	  

	 
	 

	(Please print name and address) 

If such number of Rights shall not be all the Rights evidenced by this Rights Certificate, a new Rights Certificate for the balance of such Rights shall be registered in the name of and delivered to: 
	
		
	Please insert social security or taxpayer identification number  
	  

	 
	 

	(Please print name and address) 

	
						
	Dated: 
	 
	            
	 
	 

	  
	 
	Signature  

Signature Guaranteed: 

Signatures must be guaranteed by a participant in the Securities Transfer Agent Medallion Program, the Stock Exchanges Medallion Program or the New York Stock Exchange, Inc. Medallion Signature Program. A notary public is not sufficient.

B - 6

Certificate
The undersigned hereby certifies by checking the appropriate boxes that: 
(1) the Rights evidenced by this Rights Certificate [ ] are [ ] are not being exercised by or on behalf of a Person who is or was an Acquiring Person or an Affiliate or Associate of an Acquiring Person (as such terms are defined pursuant to the Rights Agreement); 
(2) after due inquiry and to the best knowledge of the undersigned, it [ ] did [ ] did not acquire the Rights evidenced by this Rights Certificate from any Person who is, was or became an Acquiring Person or an Affiliate or Associate of an Acquiring Person. 
	
						
	Dated: 
	 
	            
	 
	 

	  
	 
	Signature  

Signature Guaranteed: 

Signatures must be guaranteed by a participant in the Securities Transfer Agent Medallion Program, the Stock Exchanges Medallion Program or the New York Stock Exchange, Inc. Medallion Signature Program. A notary public is not sufficient.
NOTICE
The signature to the foregoing Election to Purchase and Certificate must correspond to the name as written upon the face of this Rights Certificate in every particular, without alteration or enlargement or any change whatsoever. 

B - 7

EXHIBIT C
SECOND AMENDED AND RESTATED RIGHTS AGREEMENT 
AMTECH SYSTEMS, INC. 
Summary of Rights
	
			
	Distribution and
Transfer of Rights;
Rights Certificate:
	        
	The Board of Directors of Amtech Systems, Inc. (the “Company”) has authorized the issuance of a dividend of one Right for each Amtech Systems, Inc. Common Share outstanding. Prior to the Distribution Date referred to below, the Rights will be evidenced by and trade with the certificates for the Common Shares. After the Distribution Date, the Company will mail Rights certificates to the Company’s shareholders and the Rights will become transferable apart from the Common Shares.

	 
	 
	  

	Distribution Date:
	 
	Rights will separate from the Common Shares and become exercisable following (a) the tenth business day (or such later date as may be determined by the Company’s Board of Directors) after a person or group acquires beneficial ownership of 15% or more of the Company’s Common Shares or (b) the tenth business day (or such later date as may be determined by the Company’s Board of Directors) after a person or group announces a tender or exchange offer, the consummation of which would result in ownership by a person or group of 15% or more of the Company’s Common Shares, unless waived by the Company’s Board of Directors in its sole discretion.

	 
	 
	 

	Preferred Stock 
Purchasable Upon 
Exercise of Rights:
	 
	After the Distribution Date, each Right will entitle the holder to purchase for $51.60 (the “Exercise Price”), a fraction of a share of the Company’s Preferred Shares with economic attributes substantially equivalent to one of the Company’s Common Shares.

	 
	 
	 

	Flip-In:
	 
	If an acquirer (an “Acquiring Person”) obtains 15% or more of the Company’s Common Shares, then each Right (other than Rights owned by an Acquiring Person or its affiliates) will entitle the holder thereof to purchase, for the Exercise Price, a number of the Company’s Common Shares having a then-current market value of twice the Exercise Price.

	 
	 
	 

	Flip-Over:
	 
	If, after an Acquiring Person obtains 15% or more of the Company’s Common Shares, (a) the Company merges into another entity, (b) an acquiring entity merges into the Company or (c) the Company sells more than 50% of the Company’s assets or earning power, then each Right (other than Rights owned by an Acquiring Person or its affiliates) will entitle the holder thereof to purchase, for the Exercise Price, a number of Common Shares of the person engaging in the transaction having a then current market value of twice the Exercise Price.

	 
	 
	 

	Exchange Provision:
	 
	At any time after the date on which an Acquiring Person obtains 15% or more of the Company’s Common Shares and prior to the acquisition by the Acquiring Person of 50% of the outstanding Common Shares, the Board of Directors of the Company may exchange the Rights (other than Rights owned by the Acquiring Person or its affiliates), in whole or in part, for Common Shares of the Company at an exchange ratio of one Common Share per Right (subject to adjustment).

	 
	 
	 

	Redemption of the 
Rights:
	 
	Rights will be redeemable at the Company’s option for $0.001 per Right at any time on or prior to the fifth day (or such later date as may be determined by the Company’s Board of Directors) after public announcement that a Person has acquired beneficial ownership of 15% or more of the Company’s Common Shares.

	 
	 
	 

C - 1

	
			
	Expiration of the 
Rights:
	 
	The Rights expire on the earliest of (a) December 14, 2018 or (b) exchange or redemption of the Rights as described above.

	 
	 
	 

	Amendment of Terms 
of Rights:
	 
	The terms of the Rights and the Rights Agreement may be amended in any respect without the consent of the Rights holders on or prior to the Distribution Date; thereafter, the terms of the Rights and the Rights Agreement may be amended without the consent of the Rights holders in order to cure any ambiguities or to make changes which do not adversely affect the interests of Rights holders (other than the Acquiring Person). 

	 
	 
	 

	Voting Rights:
	 
	Rights will not have any voting rights.

	 
	 
	 

	Anti-Dilution 
Provisions:
	 
	Rights will have the benefit of certain customary anti-dilution provisions.

	 
	 
	 

	Taxes:
	 
	The Rights distribution should not be taxable for federal income tax purposes. However, following an event which renders the Rights exercisable or upon redemption of the Rights, stockholders may recognize taxable income.

The foregoing is a summary of certain principal terms of the Rights Agreement only and is qualified in its entirety by reference to the Second Amended and Restated Preferred Shares Rights Agreement dated as of October 1, 2015 between the Company and Computershare Trust Company, N.A., as Rights Agent (the “Rights Agreement”). The Rights Agreement may be amended from time to time. A copy of the Rights Agreement was filed with the Securities and Exchange Commission as an Exhibit to a Current Report on Form 8-K dated [ ]. A copy of the Rights Agreement is available free of charge from the Company. 

C - 2Exhibit 10.1

 

EXECUTION

 

LOAN AGREEMENT

 

Dated as of September 30, 2015

 

between

 

ARC NY1440BWY1, LLC,

 

as Borrower,

 

and

 

H/2 FINANCIAL FUNDING I LLC,

 

as Lender

 

     

     

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	ARTICLE I GENERAL TERMS	1
	 	 	 
	Section 1.1.	The Loan; Term	1
	 	 	 
	Section 1.2.	Interest and Principal	35
	 	 	 
	Section 1.3.	Method and Place of Payment	37
	 	 	 
	Section 1.4.	Taxes; Regulatory Change	37
	 	 	 
	Section 1.5.	Interest Rate Cap Agreements	38
	 	 	 
	Section 1.6.	Release	39
	 	 	 
	ARTICLE II VOLUNTARY PREPAYMENT AND ASSUMPTION	43
	 	 	 
	Section 2.1.	Voluntary Prepayment	43
	 	 	 
	Section 2.2.	Transfers of Equity Interests in Borrower	44
	 	 	 
	Section 2.3.	Retail Unit Release	45
	 	 	 
	ARTICLE III ACCOUNTS	49
	 	 	 
	Section 3.1.	Cash Management Account	49
	 	 	 
	Section 3.2.	Distributions from Cash Management Account	50
	 	 	 
	Section 3.3.	Loss Proceeds Account	51
	 	 	 
	Section 3.4.	Basic Carrying Costs Escrow Account	51
	 	 	 
	Section 3.5.	Intentionally Omitted	52
	 	 	 
	Section 3.6.	Capital Expenditure Reserve Account	53
	 	 	 
	Section 3.7.	[Reserved]	53
	 	 	 
	Section 3.8.	Cash Flow Sweep Reserve Account	53
	 	 	 
	Section 3.9.	Unfunded Obligations Account	54
	 	 	 
	Section 3.10.	Intentionally Omitted	56
	 	 	 
	Section 3.11.	Account Collateral	56
	 	 	 
	Section 3.12.	Bankruptcy	57
	 	 	 
	ARTICLE IV REPRESENTATIONS	57
	 	 	 
	Section 4.1.	Organization	57
	 	 	 
	Section 4.2.	Authorization	58
	 	 	 
	Section 4.3.	No Conflicts	58
	 	 	 
	Section 4.4.	Consents	58
	 	 	 
	Section 4.5.	Enforceable Obligations	58

 

    	-i-

     

    

 

TABLE OF CONTENTS

(continued)

 

	 	 	Page
	 	 	 
	Section 4.6.	No Default	58
	 	 	 
	Section 4.7.	Payment of Taxes	58
	 	 	 
	Section 4.8.	Compliance with Law	59
	 	 	 
	Section 4.9.	ERISA	59
	 	 	 
	Section 4.10.	Investment Company Act	59
	 	 	 
	Section 4.11.	No Bankruptcy Filing	59
	 	 	 
	Section 4.12.	Other Debt	59
	 	 	 
	Section 4.13.	Litigation	60
	 	 	 
	Section 4.14.	Leases; Material Agreements	60
	 	 	 
	Section 4.15.	Full and Accurate Disclosure	61
	 	 	 
	Section 4.16.	Financial Condition	61
	 	 	 
	Section 4.17.	Single-Purpose Requirements	61
	 	 	 
	Section 4.18.	Use of Loan Proceeds	62
	 	 	 
	Section 4.19.	Not Foreign Person	62
	 	 	 
	Section 4.20.	Labor Matters	62
	 	 	 
	Section 4.21.	Title	62
	 	 	 
	Section 4.22.	No Encroachments	63
	 	 	 
	Section 4.23.	Physical Condition	63
	 	 	 
	Section 4.24.	Fraudulent Conveyance	63
	 	 	 
	Section 4.25.	Management	63
	 	 	 
	Section 4.26.	Condemnation	63
	 	 	 
	Section 4.27.	Utilities and Public Access	64
	 	 	 
	Section 4.28.	Environmental Matters	64
	 	 	 
	Section 4.29.	Assessments	64
	 	 	 
	Section 4.30.	No Joint Assessment	65
	 	 	 
	Section 4.31.	Separate Lots	65
	 	 	 
	Section 4.32.	Permits; Certificate of Occupancy	65
	 	 	 
	Section 4.33.	Flood Zone	65
	 	 	 
	Section 4.34.	Security Deposits	65
	 	 	 
	Section 4.35.	Intentionally Omitted	65

 

    	-ii-

     

    

 

TABLE OF CONTENTS

(continued)

 

	 	 	Page
	 	 	 
	Section 4.36.	Insurance	65
	 	 	 
	Section 4.37.	Intentionally Omitted	65
	 	 	 
	Section 4.38.	Estoppel Certificates	65
	 	 	 
	Section 4.39.	Federal Trade Embargos	66
	 	 	 
	Section 4.40.	Survival	66
	 	 	 
	ARTICLE V AFFIRMATIVE COVENANTS	66
	 	 	 
	Section 5.1.	Existence; Licenses	66
	 	 	 
	Section 5.2.	Maintenance of Property	66
	 	 	 
	Section 5.3.	Compliance with Legal Requirements	67
	 	 	 
	Section 5.4.	Impositions and Other Claims	67
	 	 	 
	Section 5.5.	Access to Property	68
	 	 	 
	Section 5.6.	Cooperate in Legal Proceedings	68
	 	 	 
	Section 5.7.	Leases	68
	 	 	 
	Section 5.8.	Plan Assets, etc	70
	 	 	 
	Section 5.9.	Further Assurances	70
	 	 	 
	Section 5.10.	Management of Collateral	71
	 	 	 
	Section 5.11.	Notice of Material Event	72
	 	 	 
	Section 5.12.	Annual Financial Statements	72
	 	 	 
	Section 5.13.	Quarterly Financial Statements	72
	 	 	 
	Section 5.14.	Monthly Financial Statements	73
	 	 	 
	Section 5.15.	Insurance	74
	 	 	 
	Section 5.16.	Casualty and Condemnation	78
	 	 	 
	Section 5.17.	Annual Budget; Approved Future Funding Budget	81
	 	 	 
	Section 5.18.	Venture Capital Operating Companies; Nonbinding Consultation	81
	 	 	 
	Section 5.19.	Compliance with Encumbrances and Material Agreements	81
	 	 	 
	Section 5.20.	Prohibited Persons	82
	 	 	 
	Section 5.21.	Condominium	82
	 	 	 
	ARTICLE VI NEGATIVE COVENANTS	83
	 	 	 
	Section 6.1.	Liens on the Collateral	83
	 	 	 
	Section 6.2.	Ownership	83

 

    	-iii-

     

    

 

TABLE OF CONTENTS

(continued)

 

	 	 	Page
	 	 	 
	Section 6.3.	Transfer; Prohibited Change of Control	83
	 	 	 
	Section 6.4.	Debt	83
	 	 	 
	Section 6.5.	Dissolution; Merger or Consolidation	83
	 	 	 
	Section 6.6.	Change in Business	84
	 	 	 
	Section 6.7.	Debt Cancellation	84
	 	 	 
	Section 6.8.	Affiliate Transactions	84
	 	 	 
	Section 6.9.	Misapplication of Funds	84
	 	 	 
	Section 6.10.	Jurisdiction of Formation; Name	84
	 	 	 
	Section 6.11.	Modifications and Waivers	84
	 	 	 
	Section 6.12.	ERISA	85
	 	 	 
	Section 6.13.	Alterations and Expansions	85
	 	 	 
	Section 6.14.	Advances and Investments	86
	 	 	 
	Section 6.15.	Single-Purpose Entity	86
	 	 	 
	Section 6.16.	Zoning and Uses	86
	 	 	 
	Section 6.17.	Waste	87
	 	 	 
	ARTICLE VII DEFAULTS	87
	 	 	 
	Section 7.1.	Event of Default	87
	 	 	 
	Section 7.2.	Remedies	90
	 	 	 
	Section 7.3.	Application of Payments after an Event of Default	91
	 	 	 
	ARTICLE VIII CONDITIONS PRECEDENT	91
	 	 	 
	Section 8.1.	Conditions Precedent to Closing	91
	 	 	 
	ARTICLE IX MISCELLANEOUS	94
	 	 	 
	Section 9.1.	Successors	94
	 	 	 
	Section 9.2.	GOVERNING LAW	94
	 	 	 
	Section 9.3.	Modification, Waiver in Writing, Approval of Lender	95
	 	 	 
	Section 9.4.	Notices	95
	 	 	 
	Section 9.5.	TRIAL BY JURY	96
	 	 	 
	Section 9.6.	Headings	97
	 	 	 
	Section 9.7.	Assignment; Participation	97
	 	 	 
	Section 9.8.	Severability	98

 

    	-iv-

     

    

 

TABLE OF CONTENTS

(continued)

 

	 	 	Page
	 	 	 
	Section 9.9.	Preferences; Waiver of Marshalling of Assets	98
	 	 	 
	Section 9.10.	Remedies of Borrower	99
	 	 	 
	Section 9.11.	Offsets, Counterclaims and Defenses	99
	 	 	 
	Section 9.12.	No Joint Venture	99
	 	 	 
	Section 9.13.	Conflict; Construction of Documents	99
	 	 	 
	Section 9.14.	Brokers and Financial Advisors	100
	 	 	 
	Section 9.15.	Counterparts	100
	 	 	 
	Section 9.16.	Estoppel Certificates	100
	 	 	 
	Section 9.17.	General Indemnity; Payment of Expenses	101
	 	 	 
	Section 9.18.	No Third-Party Beneficiaries	104
	 	 	 
	Section 9.19.	Recourse	104
	 	 	 
	Section 9.20.	Right of Set-Off	106
	 	 	 
	Section 9.21.	Exculpation of Lender	107
	 	 	 
	Section 9.22.	Servicer	107
	 	 	 
	Section 9.23.	No Fiduciary Duty	107
	 	 	 
	Section 9.24.	Borrower Information	109
	 	 	 
	Section 9.25.	PATRIOT Act Records	111
	 	 	 
	Section 9.26.	Prior Agreements	111
	 	 	 
	Section 9.27.	Publicity	111
	 	 	 
	Section 9.28.	Delay Not a Waiver	111
	 	 	 
	Section 9.29.	Schedules and Exhibits Incorporated	112

 

    	-v-

     

    

 

Exhibits

 

	A	Organizational Chart
	B	Form of Tenant Notice
	C	Form of Tenant Estoppel

 

Schedules

 

	A	Property
	B	Exception Report
	C	[Reserved]
	D	Unfunded Obligations
	E	Rent Roll
	F	Material Agreements
	G	Form of Draw Request
	H	Approved Future Funding Budget
	I	Approved Base Building Work
	J	Retail Unit
	K	Deemed Consent Notice Parties
	L	Approved Servicers

 

    	i

     

    

 

LOAN AGREEMENT

 

This Loan Agreement (this “Agreement”)
is dated September 30, 2015 and is between H/2 FINANCIAL FUNDING I LLC, a Delaware limited liability company, as lender (together
with its successors and permitted assigns, including any lawful holder of any portion of the Indebtedness directly, as hereinafter
defined, “Lender”), and ARC NY1440BWY1, LLC, a Delaware limited liability company, a Delaware limited liability
company, as borrower (together with its permitted successors and assigns, “Borrower”).

 

RECITALS

 

Borrower desires to obtain from Lender the
Loan (as hereinafter defined) in connection with the financing of the property known as 1440 Broadway, New York County, New York.

 

Lender is willing to make the Loan on the
terms and subject to the conditions set forth in this Agreement if Borrower joins in the execution and delivery of this Agreement,
the Notes and the other Loan Documents.

 

In consideration of the agreements, provisions
and covenants contained herein and in the other Loan Documents, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Lender and Borrower agree as follows:

 

DEFINITIONS

 

(a)          When
used in this Agreement, the following capitalized terms have the following meanings:

 

“Acceptable Counterparty”
means any counterparty to an Interest Rate Cap Agreement that (1) initially has (a) either (i) a long-term unsecured debt rating
or counterparty rating of A+ or higher from S&P or (ii) a short-term unsecured debt rating of A-1 or higher from S&P, and
(b) a long-term unsecured debt rating of A1 or higher from Moody’s and (2) thereafter maintains (a) a long-term unsecured
debt rating or counterparty rating of A- or higher from S&P and (b) a long-term unsecured debt rating of A3 or higher from
Moody’s.

 

“Account Collateral” means,
collectively, the Collateral Accounts and all sums at any time held, deposited or invested therein, together with any interest
and other earnings thereon, and all securities and investment property credited thereto and all proceeds thereof (including
proceeds of sales and other dispositions), whether accounts, general intangibles, chattel paper, deposit accounts, instruments,
documents or securities.

 

“Additional Mezzanine Lender”
has the meaning set forth in Section 9.17(a).

 

“Additional Mezzanine Loan”
has the meaning set forth in Section 9.17(a).

 

“Affiliate” means, as to
any Person, any other Person that, directly or indirectly, is in Control of, is Controlled by or is under common Control with such
Person.

 

     

     

    

 

“Agent” has the meaning
set forth in Section 9.7(b).

 

“Agreement” means this
Loan Agreement, as the same may from time to time hereafter be amended, restated, replaced, supplemented or otherwise modified
in accordance herewith.

 

“ALTA” means the American
Land Title Association, or any successor thereto.

 

“Alteration” means any
demolition, alteration, installation, improvement or expansion of or to the Property or any portion thereof.

 

“Annual Budget” means a
capital and operating expenditure budget for the Property prepared by Borrower that specifies amounts sufficient to maintain the
Property at a standard at least equal to that maintained on the Closing Date.

 

“Appraisal” means an as-is
appraisal of the Property that is prepared by a member of the Appraisal Institute selected by Lender and reasonably approved by
Borrower, meets the minimum appraisal standards for national banks promulgated by the Comptroller of the Currency pursuant to Title
XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, as amended (FIRREA) and complies with the Uniform
Standards of Professional Appraisal Practice (USPAP).

 

“Approved Annual Budget”
has the meaning set forth in Section 5.17.

 

“Approved Base Building Work”
means those capital expenditures identified on Schedule I.

 

“Approved Future Funding Capital
Expenditures” means those capital expenditures for renovation work at the Property pursuant to the Approved Future Funding
Budget.

 

“Approved Costs” means
Approved Leasing Costs and Approved Future Funding Capital Expenditures.

 

“Approved Costs Reconciliation Report”
has the meaning set forth in Section 5.13(a)(iv).

 

“Approved Future Funding Budget”
means the budget for Approved Future Funding Capital Expenditures and Approved Leasing Costs attached as Schedule H, which
has been approved by Lender.

 

“Approved Leasing Costs”
means those leasing costs for new Leases executed in accordance with Section 5.7, pursuant to the Approved Future Funding
Budget.

 

“Approved Management Agreement”
means that certain Management Agreement, dated as of December 19, 2013, between Borrower and the initial Approved Property Manager,
and any other management agreement that is reasonably approved by Lender, in each case as the same may be amended, restated, replaced,
supplemented or otherwise modified in accordance herewith.

 

    	2

     

    

 

“Approved Property Manager”
means CBRE, Inc. or any other management company reasonably approved by Lender, in each case unless and until Lender requests the
termination of that management company pursuant to Section 5.10(d).

 

“Approved Servicer” shall
mean the parties set forth on Schedule L.

 

“Approved Work” has the
meaning set forth in Section 1.7(c).

 

“Assignment” has the meaning
set forth in Section 9.7(b).

 

“Assignment of Interest Rate Cap
Agreement” means each collateral assignment of an interest rate cap agreement executed by Borrower and an Acceptable
Counterparty in accordance herewith, each of which must be in the form executed by Borrower and the initial Acceptable Counterparty
on the Closing Date, as the same may from time to time be amended, restated, replaced, supplemented or otherwise modified in accordance
herewith.

 

“Available Funds” means,
as of any date of determination, remaining Revenues from the Property after payment of all Operating Expenses, debt service on
the Loan and Mezzanine Loan and other amounts then due and payable or required to be reserved under the Loan Documents.

 

“Bankruptcy Code” has the
meaning set forth in Section 7.1(d).

 

“Basic Carrying Costs Escrow Account”
has the meaning set forth in Section 3.4(a).

 

“Borrower” has the meaning
set forth in the first paragraph of this Agreement.

 

“Borrower Tax” means any
U.S. Tax and any present or future tax, assessment or other charge or levy imposed by, or on behalf of, any jurisdiction through
which or from which payments due hereunder are made (or any taxing authority thereof).

 

“Borrower’s Pro Rata Share”
means 30%.

 

“Budgeted Operating Expenses”
means, with respect to any calendar month, (i) an amount equal to the Operating Expenses (excluding non-cash items) budgeted for
such calendar month as set forth in the then-applicable Approved Annual Budget, or (ii) such greater amount as shall equal Borrower’s
actual Operating Expenses for such month, except that during the continuance of a Cash Flow Sweep Period such greater amount shall
in no event exceed 110% of the amount specified in clause (i) of this definition without the prior written consent of Lender, not
to be unreasonably withheld, delayed or conditioned, provided that no such consent shall be required in connection with
expenditures for non-discretionary items and expenditures required to be made by reason of the occurrence of any emergency (i.e.,
an unexpected event that threatens imminent harm to persons or property at the Property) and with respect to which it would be
impracticable, under the circumstances, to obtain Lender’s prior consent thereto.

 

    	3

     

    

 

“Business Day” means any
day other than (i) a Saturday and a Sunday and (ii) a day on which federally insured depository institutions in the State
of New York or the state in which the offices of Lender, its trustee, its Servicer or its Servicer’s collection account are
located 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 a day on which banks are open for dealing in foreign currency and exchange
in London.

 

“Capital Expenditure” means
hard and soft costs incurred by Borrower with respect to replacements and capital repairs made to the Property (including repairs
to, and replacements of, structural components, roofs, building systems, parking garages and parking lots), in each case to the
extent capitalized in accordance with GAAP.

 

“Capital Expenditure Reserve Account”
has the meaning set forth in Section 3.6(a).

 

“Cash Flow Sweep Period”
means (i) from the Payment Date in October 2017 until the Payment Date in October 2018, any period from (A) the conclusion of any
Test Period during which the Debt Yield is less than 6.0%, to (B) the conclusion of any month thereafter during which the Debt
Yield is equal to or greater than 7.0%, (ii) from the Payment Date in October 2018 until the Maturity Date, any period from (A)
the conclusion of any Test Period during which the Debt Yield is less than 7.0%, to (B) the conclusion of any month thereafter
during which the Debt Yield is equal to or greater than 8.0%, and (iii) any period during the continuance of a Mezzanine Loan Event
of Default (and if those financial reports required under Sections 5.12 and 5.13 that are required to calculate
Debt Yield are not delivered to Lender within five (5) Business Days after Borrower receives written notice of Borrower's failure
to timely deliver such reports, a Cash Flow Sweep Period due to a Debt Yield test failure shall be deemed to have commenced and
be ongoing, unless and until such reports are delivered and they indicate that, in fact, no Cash Flow Sweep Period due to a Debt
Yield test failure is ongoing).

 

“Cash Flow Sweep Reserve Account”
has the meaning set forth in Section 3.8(a).

 

“Cash Management Account”
has the meaning set forth in Section 3.1(b).

 

“Cash Management Agreement”
means that certain cash management agreement, dated as of the Closing Date, among Borrower, Lender and the Cash Management Bank
that maintains the Cash Management Account as of the Closing Date, as the same may from time to time be amended, restated, replaced,
supplemented or otherwise modified in accordance herewith.

 

“Cash Management Bank”
means, individually and collectively, the Eligible Institution(s) at which the Collateral Accounts (other than the Clearing Account
and Operating Account) are maintained.

 

    	4

     

    

 

“Casualty” means a fire,
explosion, flood, collapse, earthquake or other casualty affecting all or any portion of the Property.

 

“Cause” means, with respect
to an Independent Director, (i) acts or omissions by such Independent Director that constitute systematic and persistent or willful
disregard of such Independent Director’s duties, (ii) such Independent Director has been indicted or convicted for any crime
or crimes of moral turpitude or dishonesty or for any violation of any Legal Requirements, (iii) such Independent Director no longer
satisfies the requirements set forth in the definition of “Independent Director”, (iv) the fees charged for the services
of such Independent Director are materially in excess of the fees charged by the other providers of Independent Directors listed
in the definition of “Independent Director” or (v) any other reason for which the prior written consent of Lender shall
have been obtained.

 

“Certificates” means, collectively,
any senior and/or subordinate notes, debentures or pass-through certificates, or other evidence of indebtedness, or debt or equity
securities, or any combination of the foregoing, representing a direct or beneficial interest, in whole or in part, in the Loan.

 

“Clearing Account” has
the meaning set forth in Section 3.1(a).

 

“Clearing Account Agreement”
has the meaning set forth in Section 3.1(a).

 

“Clearing Account Bank”
means an Eligible Institution chosen by Borrower and reasonably satisfactory to Lender.

 

“Closing Date” means 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 all
assets owned from time to time by Borrower including the Property, the Revenues and all other tangible and intangible property
in respect of which Lender is granted a Lien under the Loan Documents, and all proceeds thereof.

 

“Collateral Account” means
each of the accounts and sub-accounts established pursuant to Article III hereof.

 

“Component Spread” has
the meaning set forth in Section 1.1(c).

 

“Condemnation” means a
taking or voluntary conveyance of all or part of the 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.

 

“Condominium”
shall have the meaning set forth in Section 2.3(d)(iv).

 

    	5

     

    

 

“Condominium Act” means,
collectively, all Legal Requirements applicable to the Condominium.

 

“Condominium Conversion
Amendments” shall have the meaning set forth in Section 2.3(d)(vii).

 

“Condominium Conversion
Notice” shall have the meaning set forth in Section 2.3(d)(i).

 

“Condominium Documents”
shall have the meaning set forth in Section 2.3(d)(v).

 

“Condominium Units”
shall have the meaning set forth in Section 2.3(d)(iv).

 

“Contingent Obligation”
means, with respect to any Person, any obligation of such Person directly or indirectly guaranteeing any Debt of any other Person
in any manner and any contingent obligation to purchase, to provide funds for payment, to supply funds to invest in any other Person
or otherwise to assure a creditor against loss.

 

“Control” of any Person
means the ownership, directly or indirectly, of at least 51% of the equity interests in, and the right to at least 51% of the distributions
from, such entity, together with the possession, directly or indirectly, of the power to direct or cause the direction of the management
or policies of such entity, whether through the ability to exercise voting power, by contract or otherwise (“Controlled”
and “Controlling” each have the meanings correlative thereto).

 

“Damages” to a Person means
any and all liabilities, obligations, losses, demands, damages, penalties, assessments, actions, causes of action, judgments, proceedings,
suits, claims, costs, expenses and disbursements of any kind or nature whatsoever (including reasonable attorneys’ fees and
other costs of defense and/or enforcement whether or not suit is brought), fines, charges, fees, settlement costs and disbursements
imposed on, incurred by or asserted against such party, whether based on any federal or state laws, statutes, rules or regulations
(including securities and commercial laws, statutes, rules or regulations and Environmental Laws), on common law or equitable cause
or on contract or otherwise; provided, however, that “Damages” shall not include special, consequential or punitive
damages, except to the extent imposed upon Lender by one or more third parties.

 

“DBRS” means DBRS, Inc.
or its applicable affiliate.

 

“Debt” means, with respect
to any Person, without duplication:

 

(i)          all
indebtedness of such Person to any other party (regardless of whether such indebtedness is evidenced by a written instrument such
as a note, bond or debenture), including indebtedness for borrowed money or for the deferred purchase price of property or services;

 

(ii)         all
letters of credit issued for the account of such Person and all unreimbursed amounts drawn thereunder;

 

    	6

     

    

 

(iii)        all
indebtedness secured by a Lien on any property owned by such Person (whether or not such indebtedness has been assumed) except
obligations for impositions that are not yet due and payable;

 

(iv)        all
Contingent Obligations of such Person;

 

(v)         all
payment obligations of such Person under any interest rate protection agreement (including any interest rate swaps, floors, collars
or similar agreements) and similar agreements;

 

(vi)        any
material actual or contingent liability to any Person or Governmental Authority with respect to any employee benefit plan (within
the meaning of Section 3(3) of ERISA) pursuant to Title IV of ERISA, Section 302 of ERISA or Section 412 of the Code.

 

“Debt Yield” means, as
of any date of determination, the fraction, expressed as a percentage, where (i) the numerator is equal to In-Place NOI for the
most recently ended Test Period and (ii) the denominator is equal to the sum of the Principal Indebtedness and the Mezzanine Loan
Principal Indebtedness as of such date of determination.

 

“Debt Yield Threshold”
means 8.25%.

 

“Deemed Consent Notice Parties”
means the parties set forth on Schedule K or such other parties notified by Lender to Borrower in accordance with this Agreement.

 

“Default” means the occurrence
of any event that, but for the giving of notice or the passage of time, or both, would be an Event of Default.

 

“Default Rate” means, with
respect to any Note or Note Component, the greater of (x) 5% per annum in excess of the interest rate otherwise applicable to such
Note or Note Component hereunder and (y) 1% per annum in excess of the Prime Rate from time to time; provided that, if the foregoing
would result in an interest rate in excess of the maximum rate permitted by applicable law, the Default Rate shall be limited to
the maximum rate permitted by applicable law.

 

“Disclosure Document” shall
mean any registration statement, preliminary or final private placement memorandum or prospectus or other disclosure document or
other written marketing materials used in any public or private placement of the Loan (or portion thereof) or the Certificates
in a Securitization, participation or assignment (including, in each of the foregoing cases, any amendments or supplements thereto).

 

“Draw Request” means a
written request for an advance of the Future Funding Component in form attached hereto as Schedule G or otherwise reasonably
acceptable to Lender setting forth the amount of the Future Funding Component desired, the Approved Costs to which such requested
advance relates and containing the supporting information contemplated by Section 1.7(b).

 

    	7

     

    

 

“Eligible Account” means
(i) a segregated account maintained with a federal or state-chartered depository institution or trust company that complies with
the definition of Eligible Institution, or (ii) a segregated trust account or accounts maintained with the corporate trust
department of a federal depository institution or state-chartered depository institution that has an investment-grade rating and
is subject to regulations regarding fiduciary funds on deposit under, or similar to, Title 12 of the Code of Federal Regulations
Section 9.10(b) that, in either case, has corporate trust powers, acting in its fiduciary capacity.

 

“Eligible Institution”
means (x) Bank of America, N.A., (y) Wells Fargo Bank, N.A., or (z) an institution (i) whose commercial paper, short-term debt
obligations or other short-term deposits are rated at least “A–1” by S&P, “P–1” by Moody’s
and “F–1” by Fitch, and whose long-term senior unsecured debt obligations are rated at least “A-”
by S&P, “A” by Fitch, and “A2” by Moody’s and whose deposits are insured by the FDIC or (ii)
otherwise reasonably approved by Lender.

 

“Embargoed Person” means
any Person subject to trade restrictions under any Federal Trade Embargo.

 

“Engineering Report” means
a structural and seismic engineering report or reports (including a “probable maximum loss” calculation, if applicable)
with respect to the Property prepared by an independent engineer reasonably approved by Lender and delivered to Lender in connection
with the Loan, and any amendments or supplements thereto delivered to Lender.

 

“Environmental Claim” means
any written notice, claim, proceeding, notice of proceeding, investigation, demand, abatement order or other order or directive
by any Person or Governmental Authority alleging or asserting liability with respect to Borrower or the Property arising out of,
based on, in connection with, or resulting from (i) the actual or alleged presence, Use or Release of any Hazardous Substance,
(ii) any actual or alleged violation of any Environmental Law, or (iii) any actual or alleged injury or threat of injury to property,
health or safety, natural resources or to the environment caused by Hazardous Substances.

 

“Environmental Indemnity”
means that certain environmental indemnity agreement executed by Borrower and Guarantor as of the Closing Date, as the same may
from time to time be amended, restated, replaced, supplemented or otherwise modified in accordance herewith.

 

    	8

     

    

 

“Environmental Laws” means
any and all present and future federal, state and local laws, statutes, ordinances, orders, rules, regulations and the like, as
well as common law, any judicial or administrative orders, decrees or judgments thereunder, and any permits, approvals, licenses,
registrations, filings and authorizations, in each case as now or hereafter in effect, relating to (i) the pollution, protection
or cleanup of the environment related to Hazardous Substances, (ii) the impact of Hazardous Substances on property, health or safety,
(iii) the Use or Release of Hazardous Substances, (iv) occupational safety and health, industrial hygiene or the protection of
human, plant or animal health or welfare related to Hazardous Substances or (v) the liability for or costs of other actual or threatened
danger to health or the environment related to Hazardous Substances. The term “Environmental Law” includes,
but is not limited to, the following statutes, as amended, any successors thereto, and any regulations promulgated pursuant thereto,
and any state or local statutes, ordinances, rules, regulations and the like addressing similar issues: the Comprehensive Environmental
Response, Compensation and Liability Act; the Emergency Planning and Community Right-to-Know Act; the Hazardous Materials Transportation
Act; the Resource Conservation and Recovery Act (including Subtitle I relating to underground storage tanks); the Clean Water Act;
the Clean Air Act; the Toxic Substances Control Act; the Safe Drinking Water Act; the Occupational Safety and Health Act; the Federal
Water Pollution Control Act; the Federal Insecticide, Fungicide and Rodenticide Act; the Endangered Species Act; the National Environmental
Policy Act; and the River and Harbors Appropriation Act. The term “Environmental Law” also includes, but is
not limited to, any present and future federal state and local laws, statutes ordinances, rules, regulations and the like, as well
as common law, conditioning transfer of property upon a negative declaration or other approval of a Governmental Authority of the
environmental condition of a property; or requiring notification or disclosure of Releases of Hazardous Substances or other environmental
conditions of a property to any Governmental Authority or other Person, whether or not in connection with transfer of title to
or interest in property.

 

“Environmental Reports”
means that certain Phase I Environmental Site Assessment prepared by CBRE, Inc., a Delaware corporation, d/b/a IVI Assessment Services
and dated as of August 26, 2015 and any other “Phase I Environmental Site Assessments” as referred to
in the ASTM Standards on Environmental Site Assessments for Commercial Real Estate, E 1527-13 (and, if necessary, “Phase
II Environmental Site Assessments”), prepared by an independent environmental auditor reasonably approved by Lender and delivered
to Lender in connection with the Loan and any amendments or supplements thereto delivered to Lender, and shall also include any
other environmental reports delivered after the Closing Date to Lender pursuant to this Agreement and the Environmental
Indemnity.

 

“ERISA” means the Employee
Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated thereunder.

 

“ERISA Affiliate,” at any
time, means each trade or business (whether or not incorporated) that would, at the time, be treated together with Borrower as
a single employer under Title IV or Section 302 of ERISA or Section 412 of the Code.

 

“Event of Default” has
the meaning set forth in Section 7.1.

 

“Exception Report” means
the report prepared by Borrower and attached to this Agreement as Schedule B, setting forth any exceptions to the representations
set forth in Article IV.

 

“Exculpated Person” means
each Person that is an affiliate, equityholder, beneficiary, trustee, member, officer, director, agent, manager, independent manager,
employee or partner of Borrower or Guarantor, directly or indirectly.

 

“Extension Term” has the
meaning set forth in Section 1.1(d).

 

    	9

     

    

 

“FACTA” means Sections
1471 through 1474 of the Code, the regulations, including any subsequent amendments, and administrative guidance promulgated thereunder
(or which may be promulgated in the future), and any requirements imposed by any applicable jurisdiction pursuant to an intergovernmental
agreement relating to such provisions and guidance, which such jurisdiction has entered into with the United States (including
any implementing legislation enacted as a result thereof).

 

“Federal Trade Embargo”
means any federal law imposing trade restrictions, including (i) the Trading with the Enemy Act, as amended, and each of the
foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended), (ii) the
International Emergency Economic Powers Act (50 U.S.C. §§ 1701 et seq., as amended), (iii) any enabling legislation
or executive order relating to the foregoing, (iv) Executive Order 13224, and (v) the PATRIOT Act.

 

“Fiscal Quarter” means
each three-month period ending on March 31, June 30, September 30 and December 31 of each year, or such other fiscal quarter of
Borrower as Borrower may select from time to time with the prior consent of Lender, such consent not to be unreasonably withheld,
delayed or conditioned; provided that Borrower shall have a one-time right to change the Fiscal Year without Lender approval as
provided in Section 5.12(b).

 

“Fiscal Year” means the
12-month period ending on December 31 of each year, or such other fiscal year of Borrower as Borrower may select from time to time
with the prior consent of Lender, not to be unreasonably withheld, delayed or conditioned; provided that Borrower shall have a
one-time right to change the fiscal year without Lender approval as provided in Section 5.12(b).

 

“Fitch” means Fitch, Inc.
and its successors.

 

“Force Majeure” means a
delay due to acts of God, governmental restrictions, stays, judgments, orders, decrees, enemy actions, civil commotion, fire, casualty,
strikes, work stoppage, shortages of labor or materials or similar causes beyond the reasonable control of Borrower; provided
that (1) any period of Force Majeure shall apply only to performance of the obligations necessarily affected by such circumstance
and shall continue only so long as Borrower is continuously and diligently using all reasonable efforts to minimize the effect
and duration thereof; and (2) Force Majeure shall not include the unavailability or insufficiency of funds.

 

“Form W-8BEN” means Form
W-8BEN (Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding) of the Department of Treasury of the
United States of America, and any successor form.

 

“Form W-8ECI” means Form
W-8ECI (Certificate of Foreign Person’s Claim for Exemption from Withholding of Tax on Income Effectively Connected with
the Conduct of a Trade or Business in the United States) of the Department of the Treasury of the United States of America, and
any successor form.

 

    	10

     

    

 

“Form W-9” means Form W-9
(Request for Taxpayer Identification Number and Certification) of the Department of the Treasury of the United States of America,
and any successor form.

 

“Future Funding Component”
means a portion of the Loan of up to a maximum amount of $20,000,000 solely to fund the Approved Costs.

 

“Future Funding Note(s)”
means, collectively, (i) that certain promissory note, dated as of the Closing Date, made by Borrower to the order of Lender, designated
the “A1-FF Note”, in the maximum principal amount of up to $10,000,000 and (ii) that certain promissory note, dated
as of the Closing Date, made by Borrower to the order of Lender, designated the “A2-FF Note”, in the maximum principal
amount of up to $10,000,000, which notes evidence the Future Funding Component of the Loan, as each such note may be replaced by
multiple Notes or divided into multiple Note Components in accordance with Section 1.1(c) and as otherwise assigned (in
whole or in part), amended, restated, replaced, supplemented or otherwise modified in accordance herewith.

 

“GAAP” means generally
accepted accounting principles in the United States of America, consistently applied.

 

“Governmental Authority”
means any federal, state, county, regional, local or municipal government, any bureau, department, agency or political subdivision
thereof and any Person with jurisdiction exercising executive, legislative, judicial, regulatory or administrative functions of
or pertaining to government (including any court).

 

“Guarantor” means, collectively,
on a joint and several basis, NY REIT and NYROP.

 

“Guaranty” means that certain
guaranty, dated as of the Closing Date, executed by Guarantor for the benefit of Lender, as the same may be amended, restated,
replaced, supplemented or otherwise modified in accordance herewith.

 

“Hazardous Substances”
means any and all substances (whether solid, liquid or gas) defined, listed, or otherwise classified as pollutants, hazardous wastes,
hazardous substances, hazardous materials, extremely hazardous wastes, toxic substances, toxic pollutants, contaminants, pollutants
or words of similar meaning or regulatory effect under any present or future Environmental Laws or the presence of which on, in
or under the Property is prohibited or requires investigation or remediation under Environmental Law, including petroleum and petroleum
by-products, asbestos and asbestos-containing materials, toxic mold, polychlorinated biphenyls, lead and radon, and compounds containing
them (including gasoline, diesel fuel, oil and lead-based paint), pesticides and radioactive materials, flammables and explosives
and compounds containing them, but excluding those substances commonly used in the operation and maintenance of properties of kind
and nature similar to those of the Property that are used at the Property in compliance with all Environmental Laws and in a manner
that does not result in contamination of the Property or in a Material Adverse Effect.

 

    	11

     

    

 

“Inapplicable Tax” means
any of the following Taxes applied as to a Lender Party or required to be deducted or withheld from a remittance or payment to
a Lender Party: Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in
each case, applied by reason of such Lender Party being organized under the laws of, or having its principal office or, in the
case of Lender, its applicable lending office located in, the jurisdiction which imposes such Tax (or any political subdivision
thereof).

 

“Increased Costs” has the
meaning set forth in Section 1.4(d).

 

“Indebtedness” means the
Principal Indebtedness, together with interest and all other obligations and liabilities of Borrower under the Loan Documents,
including all transaction costs payable by Borrower, Spread Maintenance Premiums and other amounts due or to become due to Lender
pursuant to this Agreement, under the Notes or in accordance with any of the other Loan Documents, and all other amounts, sums
and expenses reimbursable by Borrower to Lender hereunder or pursuant to the Notes or any of the other Loan Documents.

 

“Indemnified Liabilities”
has the meaning set forth in Section 9.19(b).

 

“Indemnified Parties” has
the meaning set forth in Section 9.17.

 

“Independent Director”
of any corporation or limited liability company means an individual who is provided by CT Corporation, Corporation Service Company,
National Registered Agents, Inc., Wilmington Trust Company, Stewart Management Company, Lord Securities Corporation or, if none
of those companies is then providing professional independent directors or managers, another nationally-recognized company reasonably
approved by Lender, in each case that is not an Affiliate of Borrower and that provides professional independent directors or managers
and other corporate services in the ordinary course of its business, and is not, and has never been, and will not while serving
as Independent Director be, any of the following:

 

(i)          a
member (other than an independent, non-economic “special” member), partner, equityholder, manager, director, officer
or employee of such corporation or limited liability company or any of its equityholders or Affiliates (other than as an independent
director or manager such corporation or limited liability company or an Affiliate of such corporation or limited liability company
that is not in the direct chain of ownership of such corporation or limited liability company and that is required by a creditor
to be a single purpose bankruptcy remote entity, provided that such independent director or manager is employed by a company that
routinely provides professional independent directors or managers);

 

(ii)         a
creditor, supplier or service provider (including provider of professional services) to such corporation or limited liability company
or any of its equityholders or Affiliates (other than a nationally recognized company that routinely provides professional independent
managers or directors and that also provides lien search and other similar services to such corporation or limited liability company
or any of its equityholders or affiliates in the ordinary course of business);

 

    	12

     

    

 

(iii)        a
family member of any such member, partner, equityholder, manager, director, officer, employee, creditor, supplier or service provider;
or

 

(iv)        a
Person that Controls (whether directly, indirectly or otherwise) any of the Persons described in clause (i), (ii) or (iii) above.

 

A natural person who otherwise satisfies the foregoing definition
other than subparagraph (i) by reason of being the Independent Director of a Single-Purpose Entity affiliated with the corporation
or limited liability company in question shall not be disqualified from serving as an Independent Director of such corporation
or limited liability company, provided that the fees that such natural person earns from serving as Independent Director of affiliates
of such the corporation or limited liability company in any given year constitute in the aggregate less than 5% of such natural
person’s annual income for that year. The same natural persons may not serve as Independent Directors of a corporation or
limited liability company and, at the same time, serve as Independent Directors of an equityholder or member of such corporation
or limited liability company.

 

“Initial Advance” means
a portion of the Loan in the principal amount of $265,000,000.

 

“Initial Advance Note(s)”
means (i) that certain promissory note, dated as of the Closing Date, made by Borrower to the order of Lender, designated the “A1
Note”, in the original principal amount of $82,500,000, (ii) that certain promissory note, dated as of the Closing Date,
made by Borrower to the order of Lender, designated the “A2 Note”, in the original principal amount of $82,500,000,
and (iii) that certain promissory note, dated as of the Closing Date, made by Borrower to the order of Lender, designated the “A3
Note”, in the original principal amount of $100,000,000, which notes evidence the Initial Advance of the Loan, as each such
note may be replaced by multiple Notes or divided into multiple Note Components in accordance with Section 1.1(c) and as
otherwise assigned (in whole or in part), amended, restated, replaced, supplemented or otherwise modified in accordance herewith.

 

“In-Place NOI” means, with
respect to any Test Period, Net Operating Income for such Test Period, subject to the following adjustments:

 

		(i)	base rents under Qualified Leases shall be adjusted to
reflect annualized rents under Qualified Leases in place as of the end of such Test Period;

 

		(ii)	management fees shall be adjusted to reflect a management
fee equal to the greater of the actual management fee and the Maximum Management Fee; and

 

		(iii)	Taxes shall be adjusted to reflect annualized Taxes based
on the most recent assessment as of the end of such Test Period, with a corresponding adjustment to reimbursements of such Taxes
under Qualified Leases.

 

In-Place NOI shall be determined by Lender
in its sole but reasonable discretion and shall be binding and conclusive absent manifest error.

 

    	13

     

    

 

“Insurance Requirements”
means, collectively, (i) all material terms of any insurance policy required pursuant to this Agreement and (ii) all
material regulations and then-current standards applicable to or affecting the Property or any portion thereof or any use or condition
thereof, which may, at any time, be recommended by the board of fire underwriters, if any, having jurisdiction over the Property,
or any other body exercising similar functions.

 

“Interest Accrual Period”
means, with respect to any specified Payment Date, the period from and including the 6th day of the calendar month preceding such
Payment Date to but excluding the 6th day of the calendar month containing such specified Payment Date (or, if either such 6th
day is not a Business Day, the Interest Accrual Period shall be based upon the immediately succeeding Business Day). Notwithstanding
the foregoing, the first Interest Accrual Period 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 first day of such Interest Accrual Period.

 

“Interest Rate Cap Agreement”
means an interest rate cap confirmation between an Acceptable Counterparty and Borrower, relating to the initial term of the Loan
or the Extension Term, as applicable, pursuant to Section 1.5, which is in form and substance reasonably satisfactory to
Lender (together with an interest rate cap agreement and schedules relating thereto, which are consistent in form and substance
with the terms set forth in such confirmation).

 

“Lease” means any lease,
license, letting, concession, occupancy agreement, sublease to which Borrower is a party, or other agreement (whether written or
oral and whether now or hereafter in effect) under which Borrower is a lessor, sublessor, licensor or other grantor existing as
of the Closing Date or thereafter entered into by Borrower, in each case pursuant to which any Person is granted a possessory interest
in, or right to use or occupy all or any portion of any space in the Property, and every modification or amendment thereof, and
every guarantee of the performance and observance of the covenants, conditions and agreements to be performed and observed by the
other party thereto.

 

“Leasing Commissions” means
leasing commissions required to be paid by Borrower in connection with the leasing of space to Tenants at the Property pursuant
to Leases entered into by Borrower in accordance herewith and payable in accordance with third-party/arm’s-length written
brokerage agreements or in accordance with the Approved Management Agreement, provided that the commissions payable pursuant
thereto are commercially reasonable based upon the then current brokerage market for property of a similar type and quality to
the Property in the geographic market in which the Property is located (or, in the case of leasing commissions payable pursuant
to an Approved Management Agreement, not in excess of the leasing commissions set forth in such Approved Management Agreement as
of the Closing Date).

 

    	14

     

    

 

“Legal Requirements” meansall
governmental statutes, laws, rules, orders, regulations, ordinances, judgments, decrees and injunctions of Governmental Authorities
(including Environmental Laws and zoning restrictions) affecting Borrower, Guarantor, the Property or any other Collateral or any
portion thereof or the construction, ownership, use, alteration or operation thereof, or any portion thereof (whether now or hereafter
enacted and in force), and all permits, licenses and authorizations and regulations relating thereto.

 

“Lender” has the meaning
set forth in the first paragraph of this Agreement and in Section 9.7.

 

“Lender 80% Determination”
means a reasonable determination by Lender that, based on a current or updated Appraisal, a broker’s price opinion or other
written determination of value using a commercially reasonable valuation method reasonably satisfactory to Lender, the fair market
value of the Property securing the Loan at the time of such determination (but excluding any value attributable to property that
is not an interest in real property within the meaning of section 860G(a)(3)(A) of the Code) is at least 80% of the Loan’s
adjusted issue price within the meaning of the Code.

 

“Lender Party” has the
meaning set forth in Section 1.4(b).

 

“LIBOR” means the rate
per annum calculated as set forth below:

 

(i)          On
each Interest Determination Date, LIBOR for the applicable period will be the rate for deposits in United States dollars for a
one-month period which appears as the London interbank offered rate on the display designated as “LIBOR01” on the Reuters
Screen (or such other page as may replace that page on that service, or such page or replacement therefor on any successor service)
as the London interbank offered rate as of 11:00 a.m., London time, on such date.

 

(ii)         With
respect to an Interest Determination Date on which no such rate appears as the London interbank offered rate on “LIBOR01”
on the Reuters Screen (or such other page as may replace that page on that service, or such page or replacement therefor on any
successor service) as described above, LIBOR for the applicable period will be determined on the basis of the rates at which deposits
in United States dollars are offered by the Reference Banks at approximately 11:00 a.m., London time, on such date to prime banks
in the London interbank market for a one-month period (each a “Reference Bank Rate”). Lender shall request the
principal London office of each of the Reference Banks to provide a quotation of its Reference Bank Rate. If at least two such
quotations are provided, LIBOR for such period will be the arithmetic mean of such quotations. If fewer than two quotations are
provided, LIBOR for such period will be the arithmetic mean of the rates quoted by major banks in New York City, reasonably selected
by Lender, at approximately 11:00 a.m., New York City time, on such date for loans in United States dollars to leading European
banks for a one-month period.

 

All percentages resulting from any calculations
or determinations referred to in this definition will be rounded to the nearest multiple of 1/1000 of 1% and all U.S. dollar amounts
used in or resulting from such calculations will be rounded to the nearest cent (with one-half cent or more being rounded upwards).

 

    	15

     

    

 

“LIBOR Loan” means the
Loan at such time as interest thereon accrues at a rate of interest based upon LIBOR.

 

“Lien” means any mortgage,
lien (statutory or other), pledge, hypothecation, assignment, security interest, or any other encumbrance or charge on or affecting
any Collateral or any portion thereof, or any interest therein (including any conditional sale or other title retention agreement,
any sale -leaseback, any financing lease or similar transaction having substantially the same economic effect as any of the
foregoing, the filing of any financing statement or similar instrument under the Uniform Commercial Code or comparable law of any
other domestic jurisdiction, and mechanics’, materialmen’s and other similar liens and encumbrances, as well as any
option to purchase, right of first refusal, right of first offer or similar right).

 

“Loan” means the loan evidenced
by the Notes and this Agreement, including the Initial Advance and any Future Funding Component, in an amount up to the Loan Amount
advanced to Borrower by Lender pursuant to the terms of this Agreement.

 

“Loan Amount” means the
sum of (i) the Initial Advance and (ii) the maximum amount of the Future Funding Component.

 

“Loan Documents” means
this Agreement, the Notes, the Mortgage (and related financing statements), the Environmental Indemnity, the Subordination of Property
Management Agreement, the Cash Management Agreement, the Clearing Account Agreement, the Guaranty, each Assignment of Interest
Rate Cap Agreement, the Operating Account Agreement, the Unfunded Obligations Guaranty and all other agreements, instruments, certificates
and documents reasonably necessary to effectuate the granting to Lender of first-priority Liens on the Collateral or otherwise
in reasonable satisfaction of the requirements of this Agreement or the other documents listed above evidencing and/or securing
the Loan or hereafter entered into by Lender and Borrower in connection with the Loan, as all of the aforesaid may be amended,
restated, replaced, supplemented or otherwise modified from time to time in accordance herewith.

 

“Loss Proceeds” means amounts,
awards or payments payable to Borrower or Lender in respect of all or any portion of the Property in connection with a Casualty
or Condemnation thereof (after the deduction therefrom and payment to Borrower and Lender, respectively, of any and all reasonable
expenses incurred respectively by Borrower or Lender in the recovery thereof, including all reasonable attorneys’ fees and
disbursements, the fees of insurance experts and adjusters and the costs incurred in any litigation or arbitration with respect
to such Casualty or Condemnation).

 

“Loss Proceeds Account”
has the meaning set forth in Section 3.3(a).

 

“Major Lease” means any
Lease that (i) when aggregated with all other Leases at the Property with the same Tenant (or an Affiliate of any such Tenant),
and assuming the exercise of all rights to lease additional space contained in such Lease, is expected to cover more than 40,000
rentable square feet, (ii) contains an option or right to purchase all or any portion of the Property, (iii) is with an Affiliate
of Borrower as Tenant, (iv) if entered into during the continuance of an Event of Default (but prior to acceleration of the Loan
or other exercise of remedies by Lender hereunder), when aggregated with all other Leases at the Property with the same Tenant
(or an Affiliate of any such Tenant), and assuming the exercise of all rights to lease additional space contained in such Lease,
is expected to cover more than 10,000 rentable square feet or (v) is entered into following acceleration of the Loan or other exercise
of remedies by Lender.

 

    	16

     

    

 

“Manager” shall mean New
York Recovery Advisors LLC.

 

“Material Adverse Effect”
means a material adverse effect upon (i) Borrower’s title to the Property, (ii) the ability of the Property to generate net
cash flow sufficient to service the Loan, (iii) the ability of Borrower or Guarantor to perform in all material respects any
material provision of any Loan Document to which it is a party, (iv) Lender’s ability to enforce and derive the principal
benefit of the security intended to be provided by the Mortgage and the other Loan Documents, or (v) the value, use or enjoyment
of the Property or the operation or occupancy thereof.

 

“Material Agreements” means
each contract and agreement (other than Leases) relating to the Property, or otherwise imposing obligations on Borrower, under
which Borrower would have the obligation to pay more than $250,000 per annum and that cannot be terminated by Borrower without
cause upon 60 days’ notice or less without payment of a termination fee, or that is with an Affiliate of Borrower.

 

“Material Alteration” means
any Alteration to be performed by or on behalf of Borrower at the Property that (i) is reasonably expected to result in a Material
Adverse Effect or (ii) is reasonably expected to cost in excess of the Threshold Amount, as reasonably determined by an independent
architect reasonably approved by Borrower (except for Alterations in connection with (a) Tenant Improvements under and pursuant
to Leases existing as of the Closing Date (pursuant to the terms thereof in existence as of the Closing Date) or Leases or modifications
to Leases thereafter entered into in accordance with this Agreement, (b) restoration of the Property following a Casualty or Condemnation
in accordance with this Agreement, (c) the Approved Future Funding Capital Expenditures and (d) the Approved Base Building Work),
or (iii) will permit any Tenant to terminate its Lease or abate rent in
either case pursuant to the terms of its Lease.

 

“Maturity Date” means the
second to last Business Day in the Interest Accrual Period ending in October 2019, as same may be extended in accordance with Section
1.1(d), or such earlier date as may result from acceleration of the Loan in accordance with this Agreement.

 

“Maximum Management Fee”
means 3.0% of the gross revenues of the Property per annum.

 

“Mezzanine Borrower” means
ARC NY1440BWY1 MEZZ, LLC, a Delaware limited liability company.

 

    	17

     

    

 

“Mezzanine Lender” means
Paramount Group Fund VIII 1440 Broadway Mezz LP, a Delaware limited partnership, or any successor or assign thereof as “Lender”
under and as defined in the Mezzanine Loan Agreement identified to Lender in writing.

 

“Mezzanine Loan” means
that certain mezzanine loan made on the date hereof by Mezzanine Lender to Mezzanine Borrower.

 

“Mezzanine Loan Agreement”
means that certain Mezzanine Loan Agreement, dated as of the date hereof, by and between Mezzanine Lender and Mezzanine Borrower,
pursuant to which the Mezzanine Loan was made, as the same may be amended, restated, replaced, supplemented or otherwise modified
from time to time in accordance with this Agreement.

 

“Mezzanine Loan Amount”
means $40,000,000.

 

“Mezzanine Loan Default”
means a “Default” under and as defined in the Mezzanine Loan Agreement.

 

“Mezzanine Loan Documents”
means the “Loan Documents” as defined in the Mezzanine Loan Agreement.

 

“Mezzanine Loan Event of Default”
means an “Event of Default” under and as defined in the Mezzanine Loan Agreement.

 

“Mezzanine Loan Principal Indebtedness”
means the “Principal Indebtedness” as defined in the Mezzanine Loan Agreement.

 

“Mezzanine Loan Release Price”
means “Release Price” under and as defined in the Mezzanine Loan Agreement.

 

“Mezzanine Note” means
the “Note” under and as defined in the Mezzanine Loan Agreement.

 

“Monthly Capital Expenditure Amount”
means $12,498.60.

 

“Moody’s” means Moody’s
Investors Service, Inc. and its successors.

 

“Mortgage” means that certain
amended, restated and consolidated mortgage, assignment of rents and leases, security agreement and fixture filing encumbering
the Property executed by Borrower as of the Closing Date, as the same may from time to time be amended, restated, replaced, supplemented
or otherwise modified in accordance herewith.

 

“Mortgage Loan Percentage”
means the ratio, expressed as a percentage of (a) the then outstanding Principal Indebtedness to (b) the sum of the then outstanding
Principal Indebtedness and the Mezzanine Loan Principal Indebtedness.

 

    	18

     

    

 

“Net Operating Income”
means, with respect to any Test Period, the excess of (i) Operating Income for such Test Period minus (ii) Operating Expenses
for such Test Period.

 

“Net Sales Proceeds” shall
mean the gross proceeds from the sale of the Retail Unit, less reasonable and customary out-of-pocket closing costs actually incurred
by Borrower, including brokerage commissions, closing costs and transfer taxes in connection with the sale not to exceed, in the
aggregate, 10% of the gross purchase price of the Retail Unit; provided that such costs are equivalent to what would be paid to
a third party on an arm’s-length basis, including any such costs payable to an Affiliate of the Borrower.

 

“New Mezzanine Loan” has
the meaning set forth in Section 9.24(b).

 

“Nonconsolidation Opinion”
means the opinion letter, dated the Closing Date, delivered by Borrower’s counsel to Lender and addressing issues relating
to substantive consolidation of Borrower in bankruptcy.

 

“Note(s)” means the Initial
Advance Note and the Future Funding Note, as such notes may be replaced by multiple Notes or divided into multiple Note Components
in accordance with Section 1.1(c) and as otherwise assigned (in whole or in part), amended, restated, replaced, supplemented
or otherwise modified in accordance herewith.

 

“Note Component” has the
meaning set forth in Section 1.1(c).

 

“NY REIT” means New York
REIT, Inc., a Maryland corporation.

 

“NYROP” means New York
Recovery Operating Partnership, L.P., a Delaware limited partnership.

 

“OFAC List” means the list
of specially designated nationals and blocked persons subject to financial sanctions that is maintained by the U.S. Treasury Department,
Office of Foreign Assets Control and any other similar list maintained by the U.S. Treasury Department, Office of Foreign Assets
Control pursuant to any applicable governmental statutes, laws, rules, orders, regulations, ordinances, judgments, decrees and
injunctions of Governmental Authorities, including trade embargo, economic sanctions, or other prohibitions imposed by Executive
Order of the President of the United States. The OFAC List currently is accessible at http://www.treasury.gov/ofac/downloads/t11sdn.pdf.

 

“Officer’s Certificate”
means a certificate delivered to Lender that is signed by an authorized officer of Borrower and certifies the information therein
to the best of such officer’s knowledge.

 

“Operating Account” means
an Eligible Account maintained by the Approved Property Manager or Borrower at an Eligible Institution, which account (i) shall
not contain amounts unrelated to the Property or be otherwise commingled with amounts unrelated to the Property and (ii) is subject
to an Operating Account Agreement.

 

    	19

     

    

 

“Operating Account Agreement”
means an agreement relating to the Operating Account, dated as of the date hereof, among Lender, Borrower and the Eligible Institution
at which such account is maintained, pursuant to which such account is pledged to the Lender and the Approved Property Manager
or Borrower is given full access to the funds on deposit therein but provides for the discontinuance of such access upon receipt
by such Eligible Institution of written notice from Lender of the occurrence and continuance of an Event of Default, as such agreement
may be amended, restated, replaced, supplemented or otherwise modified in accordance herewith.

 

“Operating Expenses” means,
for any period, all operating, renting, administrative, management, legal, bad debt expense, and other ordinary expenses of Borrower
and the Property during such period, determined in accordance with GAAP; provided, however, that such expenses shall
not include (i) depreciation, amortization or other non-cash items, (ii) interest, principal or any other sums due and owing with
respect to the Loan or the Mezzanine Loan, (iii) income taxes or other taxes in the nature of income taxes, (iv) Capital Expenditures,
(v) costs of Tenant Improvements or Leasing Commissions, (vi) Approved Costs and (v) equity distributions.

 

“Operating Income” means,
for any period, all operating income and other revenue from the Property for such period, including, without limitation, actual
in-place base rents under bona fide Qualified Leases and actual percentage rent and expense reimbursements under Qualified Leases,
in each case, determined in accordance with GAAP (but without straight-lining of rents or amortization related to market lease
intangibles), other than (i) Loss Proceeds (but Operating Income will include rental loss insurance proceeds to the extent allocable
to such period), (ii) any revenue attributable to a Lease that is not a Qualified Lease, (iii) any revenue attributable to a Lease
to the extent it is paid more than 30 days prior to the due date (provided that such revenue shall be included in the calculation
of Operating Income for the period that is within 30 days of the due date), (iv) any interest income from any source, (v) any repayments
received from any third party of principal loaned or advanced to such third party by Borrower, (vi) any proceeds resulting from
the Transfer of all or any portion of the Collateral, (vii) sales, use and occupancy or other taxes on receipts required to be
accounted for by Borrower to any government or governmental agency, (viii) Termination Fees, and (ix) any other extraordinary or
non-recurring items.

 

“Participation” has the
meaning set forth in Section 9.7(b).

 

“PATRIOT Act” means the
Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (Title III of
Pub. L. 107-56 (signed into law October 26, 2001), as amended from time to time.

 

“Payment Date” means, with
respect to each Interest Accrual Period, the first day of the calendar month in which such Interest Accrual Period ends; provided,
that in connection with a Securitization, Lender shall have a one-time right to change the Payment Date so long as a corresponding
change to the Interest Accrual Period is also made. Whenever a Payment Date is not a Business Day, the entire amount that would
have been due and payable on such Payment Date shall instead be due and payable on the immediately preceding Business Day. Notwithstanding
the foregoing, the Maturity Date shall be the second to last Business Day of the Interest Accrual Period in which the Maturity
Date falls; provided that, prior to a Securitization, interest shall be payable on the Maturity Date for the period through but
excluding the Maturity Date.

 

    	20

     

    

 

“Permits” means all licenses,
permits, variances and certificates used in connection with the ownership, operation, use or occupancy of the Property (including
certificates of occupancy, business licenses, state health department licenses, licenses to conduct business and all such other
permits, licenses, consents, approvals and rights, obtained from any Governmental Authority concerning ownership, operation, use
or occupancy of the Property).

 

“Permitted Debt” means:

 

(i)          the
Indebtedness;

 

(ii)         Taxes
not yet delinquent;

 

(iii)        tenant
allowances and Capital Expenditure costs required under Leases or otherwise permitted to be incurred under the Loan Documents that
are paid on or prior to the date when due;

 

(iv)        Trade
Payables not represented by a note, customarily paid by Borrower within 60 days of incurrence and in fact not more than 60 days
outstanding, which are incurred in the ordinary course of Borrower’s ownership and operation of the Property, in amounts
not exceeding 2.0% of the maximum Loan Amount in the aggregate;

 

provided, that the foregoing shall not prohibit the
direct incurrence of unsecured debt or the direct issuance of preferred equity by NY REIT or NYROP.

 

“Permitted Encumbrances”
means:

 

(i)          the
Liens created by the Loan Documents;

 

(ii)         all
Liens and other matters specifically disclosed on Schedule B-1 or B-2 of the Title Insurance Policy;

 

(iii)        Liens,
if any, for Taxes not yet delinquent;

 

(iv)        mechanics’,
materialmen’s or similar Liens, if any, and Liens for delinquent taxes or impositions, in each case only if being diligently
contested in good faith and by appropriate proceedings, provided that no such Lien is in imminent danger of foreclosure
and provided further that either (a) each such Lien is released or discharged of record or fully insured over by
the title insurance company issuing the Title Insurance Policy within 30 days of its creation, or (b) Borrower deposits with Lender,
by the expiration of such 30-day period, an amount equal to 130% of the dollar amount of such Lien or a bond in the aforementioned
amount from such surety, and upon such terms and conditions, as is reasonably satisfactory to Lender, as security for the payment
or release of such Lien; and

 

    	21

     

    

 

(v)         rights
of existing and future Tenants as tenants only pursuant to written Leases entered into in conformity with the provisions of this
Agreement; and

 

(vi)        easements, rights of way,
reciprocal easement agreements and instruments of a similar nature that do not materially impair the value, use or operation of
the Property.

 

“Permitted Investments”
means the following, subject to the qualifications hereinafter set forth:

 

(i)          direct
obligations of, or obligations fully and unconditionally guaranteed as to principal and interest by, the U.S. government or any
agency or instrumentality thereof, when such obligations are backed by the full faith and credit of the United States of America
and have maturities not in excess of one year;

 

(ii)         federal
funds, unsecured certificates of deposit, time deposits, banker’s acceptances, and repurchase agreements, each having maturities
of not more than 90 days, of any commercial bank organized under the laws of the United States of America or any state thereof
or the District of Columbia, the short-term debt obligations of which are rated A-1+ by S&P, F1+ by Fitch and P-1 by Moody’s
(and if the term is between one and three months A1 by Moody’s) and, if it has a term in excess of three months, the long-term
debt obligations of which are rated AAA (or the equivalent) by each of the Rating Agencies, and that (a) is at least “adequately
capitalized” (as defined in the regulations of its primary Federal banking regulator) and (b) has Tier 1 capital (as defined
in such regulations) of not less than $1,000,000,000;

 

(iii)        deposits
that are fully insured by the Federal Deposit Insurance Corp. (FDIC);

 

(iv)        commercial
paper rated A–1+ by S&P, F1+ by Fitch and P-1 Moody’s (and if the term is between one and three months A1 by Moody’s)
and having a maturity of not more than 90 days;

 

(v)         any
money market funds that (a) has substantially all of its assets invested continuously in the types of investments referred to in
clause (i) above, (b) has net assets of not less than $5,000,000,000, and (c) has a rating of AAAm or AAAm-G from S&P, Aaa
by Moody’s and the highest rating obtainable from Fitch; and

 

(vi)        such
other investments reasonably approved by Lender.

 

    	22

     

    

 

Notwithstanding the foregoing, “Permitted Investments”
(i) shall exclude any security with the Standard & Poor’s “r” symbol (or any other Rating Agency’s
corresponding symbol) attached to the rating (indicating high volatility or dramatic fluctuations in their expected returns because
of market risk), as well as any mortgage-backed securities and any security of the type commonly known as “strips”;
(ii) shall not have maturities that exceed the time periods set forth above; (iii) shall be limited to those instruments that
have a predetermined fixed dollar of principal due at maturity that cannot vary or change; and (iv) shall exclude any investment
where the right to receive principal and interest derived from the underlying investment provides a yield to maturity in excess
of 120% of the yield to maturity at par of such underlying investment. Interest on Permitted Investments may either be fixed or
variable, and any variable interest must be tied to a single interest rate index plus a single fixed spread (if any), and move
proportionately with that index. No Permitted Investments shall require a payment above par for an obligation if the obligation
may be prepaid at the option of the issuer thereof prior to its maturity. Except as expressly provided for above, all Permitted
Investments shall mature or be redeemable upon the option of the holder thereof on or prior to the earlier of (x) three months
from the date of their purchase or (y) the Business Day preceding the day before the date such amounts are required to be
applied hereunder.

 

“Person” means any natural
person, corporation, limited liability company, partnership, joint venture, estate, trust, unincorporated association or Governmental
Authority and any fiduciary acting in such capacity on behalf of any of the foregoing.

 

“Plan Assets” means assets
of any (i) employee benefit plan (as defined in Section 3(3) of ERISA) subject to Part 4, Subtitle B, Title I of ERISA, (ii)
plan (as defined in Section 4975(e)(1) of the Code) subject to Section 4975 of the Code, or (iii) governmental plan (as defined
in Section 3(32) of ERISA) subject to federal, state or local laws, rules or regulations substantially similar to Part 4, Subtitle
B, Title I of ERISA or Section 4975 of the Code.

 

“Policies” has the meaning
set forth in Section 5.15(b).

 

“Prime Rate” means the
rate of interest published in The Wall Street Journal from time to time as the “Prime Rate.” If more than one “Prime
Rate” is published in The Wall Street Journal for a day, the average of such “Prime Rates” shall be used, and
such average shall be rounded to the nearest 1/1000th of one percent (0.001%). If The Wall Street Journal ceases to publish the
“Prime Rate,” Lender shall select in its reasonable discretion an equivalent publication that publishes such “Prime
Rate,” and if such “Prime Rates” are no longer generally published or are limited, regulated or administered
by a governmental or quasigovernmental body, then Lender shall reasonably select a comparable interest rate index.

 

“Prime Rate Loan” means
the Loan at such time as interest thereon accrues at a rate of interest based upon the Prime Rate.

 

“Prime Rate Spread” means,
in connection with any conversion of the Loan to a Prime Rate Loan, the difference (expressed as the number of basis points) between
(a) the sum of LIBOR, determined as of the Interest Determination Date for which LIBOR was last available, plus the applicable
Spread, minus (b) the Prime Rate on such Interest Determination Date; provided, however, that if such difference is a negative
number, then the Prime Rate Spread shall be zero.

 

“Principal Indebtedness”
means the principal balance of the Loan outstanding from time to time.

 

    	23

     

    

 

“Prior Loan” has the meaning
set forth in Section 4.17(c).

 

“Prohibited Change of Control”
means the occurrence of any of the following: (i) the failure of Borrower to be Controlled by NYROP, (ii) the failure of any other
Required SPE to be Controlled by NYROP, (iii) the failure of NYROP to be Controlled by NY REIT or by one or more Qualified Equityholders,
(iv) Manager or an Affiliate of Manager shall cease to be the advisor of NY REIT or (v) any Transfer of 50% or more of the direct
or indirect equity interests in Manager or any change in Control of Manager (but shall exclude any such Transfer or any such change
in Control resulting from the acquisition by AR Global Investments, LLC, of any interests, directly or indirectly, in Manager);
provided, however, that any occurrence of the foregoing resulting from the exercise by Mezzanine Lender or any Additional Mezzanine
Lender of their respective rights and/or remedies under the Mezzanine Loan Documents or Additional Mezzanine Loan Documents, as
applicable, shall not be deemed a Prohibited Change of Control.

 

“Prohibited Pledge” has
the meaning set forth in Section 7.1(f).

 

“Prohibited Transferee”
means SL Green, Empire Realty, Starwood Capital, or any of their respective Affiliates.

 

“Property” means the real
property described on Schedule A, together with all buildings and other improvements thereon and all personal property
appurtenant thereto.

 

“Qualified Equityholder”
means (i) NY REIT, (ii) a bank, savings and loan association, investment bank, insurance company, trust company, commercial credit
corporation, pension plan, pension fund or pension advisory firm, mutual fund, real estate investment trust, government entity
or plan, real estate company, investment fund or an institution substantially similar to any of the foregoing; provided that, in
each case under this clause (ii), such Person (x) has total shareholder’s equity in excess of $1,000,000,000 (exclusive of
the Property), and (y) is regularly engaged in the business of owning and operating comparable properties in major metropolitan
areas or (iii) Mezzanine Lender or any Additional Mezzanine Lender (or their respective designees) upon its acquisition of the
equity interest in Borrower through foreclosure or a transfer in lieu of foreclosure.

 

“Qualified Guaranty” means
a guaranty, in form and substance reasonably satisfactory to Lender, provided to Lender by Guarantor or any replacement Guarantor
in accordance herewith.

 

“Qualified Lease” means
a Lease to a Tenant that is paying rent (or is not paying rent because it is subject to a free rent period pursuant to the terms
of the applicable Lease) and in occupancy at the Property, is not in default under its Lease beyond applicable notice and cure
periods, and is not the subject of a bankruptcy or similar insolvency proceeding (unless such Tenant has assumed such Lease in
bankruptcy); provided that if a Tenant has provided notice to Borrower that it intends to vacate within three months of the applicable
date of determination, the related Lease shall not constitute a Qualified Lease.

 

    	24

     

    

 

“Qualified Letter of Credit”
means an irrevocable, unconditional, freely transferable, clean sight draft evergreen letter of credit in favor of Lender, with
respect to which Borrower has no reimbursement obligation, entitling Lender to draw thereon in New York, New York, issued by a
domestic Eligible Institution or the U.S. agency or branch of a foreign Eligible Institution and accompanied by an instrument reasonably
acceptable to Lender whereby the applicant/obligor under such letter of credit shall have waived all rights of subrogation against
Borrower thereunder.

 

“Rating Agency” shall mean,
prior to the final Securitization of the Loan, each of S&P, Moody’s, DBRS and Fitch, or any other nationally-recognized
statistical rating agency that has been engaged by Lender to provide the rating for a Securitization of the Loan and, after the
final Securitization of the Loan, shall mean any of the foregoing that have rated and continue to rate any of the Certificates
(excluding unsolicited ratings).

 

“Rating Condition” means,
with respect to any applicable proposed action after a Securitization, the receipt by Lender of confirmation in writing from each
of the Rating Agencies that such action shall not result, in and of itself, in a downgrade, withdrawal, or qualification of any
rating then assigned to any outstanding Certificates. No Rating Condition shall be regarded as having been satisfied unless and
until any conditions imposed on the effectiveness of any confirmation from any Rating Agency shall have been satisfied. Lender
shall have the right in its sole discretion to waive a Rating Condition requirement with respect to any Rating Agency that Lender
determines has declined to review the applicable proposal.

 

“Reference Banks” means
four major banks in the London interbank market selected by Lender.

 

“Regulatory Change” means
any change after the Closing Date in federal, state or foreign laws or regulations or the adoption or the making, after such date,
of any interpretations, directives or requests applying to a class of banks or companies controlling banks, including Lender, of
or under any federal, state or foreign laws or regulations (whether or not having the force of law) by any court or governmental
or monetary authority charged with the interpretation or administration thereof; provided that notwithstanding anything herein
to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives
thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank for
International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States
or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Regulatory Change”,
regardless of the date enacted, adopted or issued if enacted, adopted or issued after the date hereof.

 

“Release” with respect
to any Hazardous Substance means any release, deposit, discharge, emission, leaking, leaching, spilling, seeping, migrating, injecting,
pumping, pouring, emptying, escaping, dumping, disposing or other movement of Hazardous Substances into the indoor or outdoor environment
(including the movement of Hazardous Substances through ambient air, soil, surface water, ground water, wetlands, land or subsurface
strata), and “Released” has the meaning correlative thereto.

 

“Release Date” has the
meaning set forth in Section 2.3.

 

    	25

     

    

 

“Release Price” means,
with respect to the Retail Unit, the greater of (i) the Mortgage Loan Percentage of $125,000,000 and (ii) the Mortgage Loan Percentage
of the Net Sales Proceeds.

 

“REMIC” means a “real
estate mortgage investment conduit” as defined in Section 860D of the Code.

 

“Rent Roll” has the meaning
set forth in Section 4.14(a).

 

“Retail Unit” means the
suites identified on Exhibit J totaling approximately 52,900 square feet.

 

“Required SPE” means Borrower
and any Single-Purpose Equityholder.

 

“Revenues” means all rents
(including percentage rent), rent equivalents, moneys payable as damages pursuant to a Lease or in lieu of rent or rent equivalents
(including all Termination Fees), royalties (including all oil and gas or other mineral royalties and bonuses), income, receivables,
receipts, revenues, deposits (including security, utility and other deposits), accounts, cash, issues, profits, charges for services
rendered, and other consideration of whatever form or nature received by or paid to or for the account of or benefit of Borrower
from any and all sources including any 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 and proceeds,
if any, from business interruption or other loss of income insurance.

 

“S&P” means Standard
& Poor’s Ratings Services, a division of the McGraw-Hill Companies, Inc., and its successors.

 

“SAS” means Strategic Asset
Services LLC, a Delaware limited liability company and any of its Affiliates.

 

“Securitization” means
a transaction in which all or any portion of the Loan is deposited into one or more trusts or entities that issue Certificates
to investors, or a similar transaction; and the term “Securitize” and “Securitized” have
meanings correlative to the foregoing.

 

“Securitization Vehicle”
means the issuer of Certificates in a Securitization of the Loan.

 

“Service” means the Internal
Revenue Service or any successor agency thereto.

 

“Servicer” means the entity
or entities appointed by Agent from time to time to serve as servicer and/or special servicer of the Loan. If at any time no entity
is so appointed, the term “Servicer” shall be deemed to refer to Agent.

 

“Severed Loan Documents”
has the meaning set forth in Section 7.2(e).

 

    	26

     

    

 

“Single Member LLC” means
a limited liability company that either (x) has only one member, or (y) has multiple members, none of which is a Single-Purpose
Equityholder.

 

“Single-Purpose Entity”
means a Person that:

 

(a)         was
formed under the laws of the State of Delaware solely for the purpose (i) in the case of Borrower of acquiring, owning, leasing,
operating, managing, improving and financing an ownership interest in the Property, or (ii) in the case of a Single-Purpose Equityholder
of acquiring and holding an ownership interest in Borrower;

 

(b)         does
not engage in any business unrelated to (i) the Property, or (ii) in the case of a Single-Purpose Equityholder, its ownership interest
in Borrower;

 

(c)         does
not own any assets other than those related to (i) its interest in the Property, or (ii) in the case of a Single-Purpose Equityholder,
its ownership interest in Borrower (and in the case of Borrower, does not and will not own any assets on which Lender does not
have a Lien, other than excess cash and other funds that have been released to Borrower pursuant hereto or as otherwise permitted
hereunder);

 

(d)         except
as otherwise expressly permitted by the Loan Documents, has not engaged, sought or consented to and will not engage in, seek or
consent to any dissolution, winding up, liquidation, consolidation, merger, asset sale (except as expressly permitted by the Loan
Documents), transfer of partnership or membership interests or the like, or amendment of its limited partnership agreement, articles
of incorporation, articles of organization, certificate of formation or operating agreement (as applicable);

 

(e)         has
remained and intends to remain solvent and has maintained and intends to maintain adequate capital in light of its contemplated
business operations, provided that the foregoing shall not require such Person’s partners, members or shareholders to make
any additional capital contributions to such Person;

 

(f)          has
not failed and will not fail to correct any known misunderstanding regarding the separate identity of such entity;

 

(g)         has
maintained and will maintain its accounts, books and records, financial statements, stationery, invoices and checks separate and
apart from any other Person; provided, however, that the Borrower may consolidate its tax returns with the tax returns of its Affiliates
in accordance with GAAP, provided that any such consolidated financial statements do not suggest in any way that such Person’s
assets are available to satisfy the claims of its affiliate’s creditors;

 

(h)         has
maintained and will maintain its books, records, resolutions and agreements as official records;

 

(i)          has
not commingled and will not commingle its funds or assets with those of any other Person;

 

    	27

     

    

 

(j)          has
held and will hold its assets in its own name;

 

(k)         has
conducted and will conduct its business in its name only, and has not and will not use any trade name;

 

(l)          has
paid and will pay its own liabilities, including the salaries of its own employees, out of its own funds and assets, provided that
the foregoing shall not require such Person’s partners, members or shareholders to make any additional capital contributions
to such Person;

 

(m)        has
observed and will observe all partnership, corporate or limited liability company formalities, as applicable;

 

(n)         does
not have any Debt other than (i) in the case of Borrower, Permitted Debt, or (ii) in the case of a Single-Purpose Equityholder,
reasonable and customary administrative expenses and state franchise taxes;

 

(o)         is
subject to and complies with all of the limitations on powers and separateness requirements set forth in the organizational documentation
of such Person as of the Closing Date;

 

(p)         has
not and will not assume or guarantee or become obligated for the debts of any other Person or hold out its credit as being available
to satisfy the obligations of any other Person except as provided under and contemplated by the Loan Documents;

 

(q)         has not and will not acquire
obligations or securities of its partners, members or shareholders;

 

(r)          has
allocated and will allocate fairly and reasonably shared expenses, including shared office space, and uses separate stationery
and invoices;

 

(s)         except
in connection with the Loan and as provided under and contemplated by the Loan Documents, has not pledged and will not pledge its
assets for the benefit of any other Person;

 

(t)          has
held itself out and identified itself and will hold itself out and identify itself as a separate and distinct entity under its
own name and not as a division or part of any other Person;

 

(u)         has
maintained and will maintain its assets in such a manner that it will not be costly or difficult to segregate, ascertain or identify
its individual assets from those of any other Person;

 

(v)         has
not made and will not make loans to any Person;

 

(w)        has
not identified and will not identify its partners, members or shareholders, or any Affiliate of any of them, as a division or part
of it;

 

    	28

     

    

 

(x)          has
not entered into or been a party to, and will not enter into or be a party to, any transaction with its partners, members, shareholders
or Affiliates except in the ordinary course of its business and on terms which are intrinsically fair and not materially less favorable
to it than would be obtained in a comparable arm's length transaction with an unrelated third party;

 

(y)         has and will have no obligation
to indemnify its partners, officers, directors, or members, as the case may be, or has such an obligation that is fully subordinated
to the Indebtedness and will not constitute a claim against Borrower if Borrower’s cash flow in excess of the amount required
to pay the Indebtedness is insufficient to pay such obligation;

 

(z)         will
consider the interests of its creditors in connection with all corporate, partnership or limited liability company actions, as
applicable;

 

(aa)       maintains a sufficient
number of employees, if any, in light of its contemplated business operations;

 

(bb)      conducts its business
so that the assumptions made with respect to it that are contained in the Nonconsolidation Opinion shall at all times be true and
correct in all material respects;

 

(cc)       has
two Independent Directors on its board of directors or board of managers, or has a Single-Purpose Equityholder with two Independent
Directors on such Single-Purpose Equityholder’s board of directors or board of managers, and has organizational documents
that (i) provide that the Independent Directors consider only the interests of Borrower, including its creditors, and shall have
no fiduciary duties to Borrower’s equityholders (except to the extent of their respective interests in Borrower), and (ii)
prohibit the replacement of any Independent Director without Cause and without giving at least two Business Days’ prior written
notice to Lender and the Rating Agencies (except in the case of the death, legal incapacity, or voluntary non-collusive resignation
of an Independent Director, in which case no prior notice to Lender or the Rating Agencies shall be required in connection with
the replacement of such Independent Director with a new Independent Director that is provided by any of the companies listed in
the definition of “Independent Director”);

 

(cc)       if
such entity is a Single Member LLC, has organizational documents that provide that upon the occurrence of any event (other than
a permitted equity transfer) that causes its sole member to cease to be a member while the Loan is outstanding, the Special Member
(as defined in the Borrower’s LLC Agreement) shall automatically be admitted as the sole member of the Single Member LLC
and shall preserve and continue the existence of the Single Member LLC without dissolution;

 

(dd)       files
its own tax returns separate from those of any other Person, except to the extent it is treated as a “disregarded entity”
for tax purposes and is not required to file tax returns under applicable law, and pays any taxes required to be paid under applicable
law only from its own funds; and

 

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(ee)       has
by-laws or an operating agreement, or has a Single-Purpose Equityholder with by-laws or an operating agreement, which provides
that, for so long as the Loan is outstanding, such Person shall not take or consent to any of the following actions except to the
extent expressly permitted in this Agreement and the other Loan Documents:

 

		(i)	the engagement by such Person (and, in the case of a Single-Purpose
Equityholder, the engagement by Borrower) in any business other than the acquisition, development, management, leasing, ownership,
maintenance, financing and operation of the Property and activities incidental thereto (and, in the case of a Single-Purpose Equityholder,
activities incidental to the acquisition and ownership of its interest in Borrower);

 

		(ii)	the filing, or consent to the filing, of a bankruptcy or
insolvency petition, any general assignment for the benefit of creditors or the institution of any other insolvency proceeding,
the seeking or consenting to the appointment of a receiver, liquidator, assignee, trustee, sequestrator, custodian or any similar
official in respect of such Person, admitting in writing such Person’s inability to pay its debts generally as they become
due, or the taking of any action in furtherance of any of the foregoing, in each case, in respect of itself or, in the case of
a Single-Purpose Equityholder, in respect of Borrower, without the affirmative vote of both of its Independent Directors; and

 

		(iii)	any amendment or modification of any provision of its (and,
in the case of a Single-Purpose Equityholder, Borrower’s) organizational documents relating to qualification as a “Single-Purpose
Entity”.

 

“Single-Purpose Equityholder”
means a Single-Purpose Entity that (x) is a limited liability company or corporation formed under the laws of the State of Delaware,
(y) owns at least a 1% direct equity interest in Borrower, and (z) serves as the general partner or managing member of Borrower.

 

“Spread” means:

 

(i)          
with respect to any Initial Advance Note, initially 3.180189% (as adjusted on any Future Funding Date such that the weighted average
of the Spreads on the Initial Advance Note, the Future Funding Note and the Mezzanine Note, weighted on the balance of the corresponding
outstanding principal balances of such Notes as of such Future Funding Date, equals 3.55%) and with respect to any Future Funding
Note, 3.55%; and

 

(ii)         following
the bifurcation of any Note into multiple Note Components pursuant to Section 1.1(c), the weighted average of the Component
Spreads of such Note Components at the time of determination, weighted on the basis of the corresponding outstanding principal
balances of such Note Components at the time of determination, which weighted average shall be the same as the Spread on the applicable
Note prior to such bifurcation.

 

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“Spread Maintenance Premium”
means the sum of (i) with respect to any prepayment of the Loan evidenced by the Initial Advance Note, including in connection
with the release of the Retail Unit in accordance with Section 2.3 prior to the end of the Spread Maintenance Period, an
amount equal to the product of (a) the principal amount so prepaid, times (b) the applicable Spread, times (c) 1/360,
times (d) the number of days from (but excluding) (x) prior to a Securitization, the date such prepayment is made and (y)
after a Securitization, the conclusion of the Interest Accrual Period in which such prepayment is made, in each case through and
including the last day of the Spread Maintenance Period plus (ii) with respect to any prepayment of the Loan evidenced by
the Future Funding Note, including in connection with the release of the Retail Unit in accordance with Section 2.3 prior
to the end of the Spread Maintenance Period, an amount equal to the product of (a) the principal amount so prepaid, times
(b) the applicable Spread, times (c) 1/360, times (d) the number of days from (but excluding) (x) prior to a Securitization,
the date such prepayment is made and (y) after a Securitization, the conclusion of the Interest Accrual Period in which such prepayment
is made, in each case through and including the last day of the Spread Maintenance Period.

 

“Spread Maintenance Period”
means the period from the Closing Date to March 30, 2017.

 

“Strike Rate” 4.0%.

 

“Subordination of Property Management
Agreement” means that certain consent and agreement of manager and subordination of management agreement executed by
Borrower and the Approved Property Manager as of the Closing Date, as the same may from time to time be amended, restated, replaced,
supplemented or otherwise modified in accordance herewith.

 

“Survey” means current
land title survey of the Property, certified to Borrower, the title company issuing the Title Insurance Policy and Lender and their
respective successors and assigns, in form and substance reasonably satisfactory to Lender.

 

“Taxes” means all real
estate and personal property taxes, assessments, fees, taxes on rents or rentals, water rates or sewer rents, facilities and other
governmental, municipal and utility district charges or other similar taxes or assessments now or hereafter levied or assessed
or imposed against the Property or Borrower with respect to the Property or rents therefrom or that may become Liens upon the Property,
without deduction for any amounts reimbursable to Borrower by third parties.

 

“Tenant” means any Person
liable by contract or otherwise to pay monies (including a percentage of gross income, revenue or profits) pursuant to a Lease.

 

“Tenant Improvements” means,
collectively, (i) tenant improvements to be undertaken for any Tenant that are required to be completed by or on behalf of Borrower
pursuant to the terms of such Tenant’s Lease, and (ii) tenant improvements paid or reimbursed through allowances to a Tenant
pursuant to such Tenant’s Lease.

 

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“Tenant Notice” has the
meaning set forth in Section 3.1(a).

 

“Termination Fee” has the
meaning set forth in Section 3.9(g).

 

“Test Period” means each
12-month period ending on the last day of any calendar month.

 

“Threshold Amount” means
an amount equal to 10.0% of the sum of the Loan Amount and Mezzanine Loan Amount.

 

“Title Insurance Policy”
means an American Land Title Association lender’s title insurance policy or a comparable form of lender’s title insurance
policy approved for use in the applicable jurisdiction, in form and substance reasonably satisfactory to Lender.

 

“Trade Payables” means
unsecured amounts payable by or on behalf of Borrower for or in respect of the operation of the Property in the ordinary course
and that would under GAAP be regarded as ordinary expenses, including amounts payable to suppliers, vendors, contractors, mechanics,
materialmen or other Persons providing property or services to the Property or Borrower and the capitalized amount of any ordinary-course
financing leases.

 

“Transfer” means the sale
or other whole or partial conveyance of all or any portion of the Collateral or any direct or indirect interest therein to a third
party, including granting of any purchase options, rights of first refusal, rights of first offer or similar rights in respect
of any portion of the Collateral or the subjecting of any portion of the Collateral to restrictions on transfer; except that the
conveyance of a space lease at the Property in accordance herewith shall not constitute a Transfer.

 

“Unfunded Obligations”
means the items described in Schedule D.

 

“Unfunded Obligations Account”
has the meaning set forth in Section 3.9(a).

 

“Unfunded Obligations Amount”
means $5,309,628.

 

“Unfunded Obligations Guaranty”
means that certain unfunded obligations guaranty, dated as of the Closing Date, executed by Guarantor for the benefit of Lender,
as the same may be amended, restated, replaced, supplemented or otherwise modified in accordance herewith.

 

“Use” means, with respect
to any Hazardous Substance, the generation, manufacture, processing, distribution, handling, possession, use, discharge, placement,
treatment, disposal, disposition, removal, abatement, recycling or storage of such Hazardous Substance or transportation of such
Hazardous Substance.

 

“U.S. Person” means a United
States person within the meaning of Section 7701(a)(30) of the Code.

 

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“U.S. Tax” means any present
or future tax, assessment or other charge or levy imposed by or on behalf of the United States of America or any taxing authority
thereof.

 

“Waste” means any intentional
material abuse or intentional destructive use (whether by action or inaction) of the Property.

 

(b)          Rules
of Construction. Unless otherwise specified, (i) all references to sections, schedules and exhibits are to sections, schedules
and exhibits in or to this Agreement, (ii) all meanings attributed to defined terms in this Agreement shall be equally applicable
to both the singular and plural forms of the terms so defined, (iii) “including” means “including, but not limited
to”, (iv) “mortgage” means a mortgage, deed of trust, deed to secure debt or similar instrument, as applicable,
and “mortgagee” means the secured party under a mortgage, deed of trust, deed to secure debt or similar instrument,
(v) the words “hereof,” “herein,” “hereby,” “hereunder” and words of similar import
when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision, article, section or other
subdivision of this Agreement, (vi) unless otherwise indicated, all references to “this Section” shall refer to the
Section of this Agreement in which such reference appears in its entirety and not to any particular clause or subsection or such
Section, (vii) the use of the phrases “an Event of Default exists”, “during the continuance of an Event of Default”
or similar phrases in the Loan Documents shall not be deemed to grant Borrower any right to cure an Event of Default except as
expressly provided herein, and (viii) terms used herein and defined by cross-reference to another agreement or document shall have
the meaning set forth in such other agreement or document as of the Closing Date, notwithstanding any subsequent amendment or restatement
of or modification to such other agreement or document. Except as otherwise indicated, all accounting terms not specifically defined
in this Agreement shall be construed in accordance with GAAP, as the same may be modified in this Agreement. Notwithstanding anything
herein to the contrary, including the references to any Mezzanine Loan or Mezzanine Loan Documents, nothing in this Agreement creates
an obligation of Borrower with respect to any Mezzanine Loan Documents, and Borrower has no obligation to comply with, and shall
not otherwise be liable under, any Mezzanine Loan Document.

 

    	33

     

    

 

ARTICLE
I

 

GENERAL
TERMS

 

Section
1.1.          The Loan; Term. 
The Loan shall be advanced in accordance with the provisions of Section 1.7 hereof and the Initial Advance shall be
evidenced by the Initial Advance Notes and the Future Funding Component shall be evidenced by the Future Funding Notes that
shall each bear interest as described in this Agreement at a per annum rate as provided in Section 1.2(a). Each of the
Notes shall be pari passu and of equal rank without priority or preference of one over the other. Interest payable hereunder
shall be computed on the basis of a 360-day year and the actual number of days elapsed in the related Interest Accrual
Period.

 

(b)         The
Loan shall be secured by the Collateral pursuant to the Mortgage and the other Loan Documents.

 

(c)         Upon
written notice from Lender to Borrower, any Note will be deemed to have been subdivided into multiple components (“Note
Components”). Each Note Component shall have such notional balance as Lender shall specify in such notice and an interest
rate equal to the sum of LIBOR plus such amount as Lender shall specify in such notice (“Component Spread”);
provided that the sum of the principal balances of all Note Components shall at all times (i.e., no “rate creep”)
equal the then-current Principal Indebtedness, and the weighted average of the Component Spreads, weighted on the basis of their
respective principal balances, shall equal the percentage set forth in clause (i) of the definition of “Spread” (except
following repayments of principal during the continuance of an Event of Default). Borrower shall be treated as the obligor with
respect to each of the Note Components, and Borrower acknowledges that each Note Component may be individually beneficially owned
by a separate Person subject to the terms hereof regarding the Assignment of the Loan. The Note Components need not be represented
by separate physical Notes, but if requested by Lender, each Note Component shall be represented by a separate physical Note, in
which case Borrower shall execute and return to Lender each such Note promptly following Borrower’s receipt of an execution
copy thereof.

 

(d)         Borrower
shall have one option to extend the scheduled Maturity Date of the Loan to the Payment Date in the month containing the one-year
anniversary of the scheduled Maturity Date (the period of the extension, an “Extension Term”), provided that,
as a condition to such Extension Term (i) Borrower shall deliver to Lender written notice of such extension at least 30 and not
more than 90 days prior to the scheduled Maturity Date; (ii) no Event of Default shall be continuing on either the date of such
notice or the Maturity Date as theretofore in effect; (iii) the Debt Yield for the Property for the Test Period ending immediately
prior to the Maturity Date as theretofore in effect shall be no less than the Debt Yield Threshold; provided that if the Debt Yield
is less than the Debt Yield Threshold, Borrower shall be permitted to prepay the Loan in the amount required to cause the Debt
Yield to equal the applicable Debt Yield Threshold, which prepayment shall be made pursuant to, and in accordance with, Section
2.1 but without the notice required thereunder, (iv) Borrower shall have obtained an Interest Rate Cap Agreement for the applicable
Extension Term and collaterally assigned such Interest Rate Cap Agreement to Lender pursuant to an Assignment of Interest Rate
Cap Agreement; (v) Borrower shall have paid a fee in an amount equal to 0.75% of the Principal Indebtedness; and (vi) Borrower
shall have reimbursed Lender for all reasonable out-of-pocket expenses incurred by Lender in connection with such extension. If
Borrower fails to exercise any extension option in accordance with the provisions of this Agreement, such extension option, and
any subsequent extension option hereunder, will automatically cease and terminate.

 

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Section 1.2.          Interest
and Principal.

 

(a)         On
each Payment Date, Borrower shall pay to Lender (to be applied to each Note on a pro rata, pari passu basis) interest on the Principal
Indebtedness for the applicable Interest Accrual Period at a rate per annum equal to (i) at any time the Loan is a LIBOR Loan,
the sum of LIBOR, determined as of the Interest Determination Date immediately preceding such Interest Accrual Period, plus
the applicable Spread and (ii) at any time the Loan is a Prime Rate Loan, the sum of the Prime Rate, determined as of the Interest
Determination Date immediately preceding such Interest Accrual Period, plus the applicable Prime Rate Spread (except that
in each case, interest shall be payable on the Indebtedness, including due but unpaid interest, at the Default Rate with respect
to any portion of such Interest Accrual Period falling during the continuance of an Event of Default). As of the Closing Date,
the Loan is a LIBOR Loan, and except as provided in Section 1.2(e), the Loan shall at all times be a LIBOR Loan. Notwithstanding
the foregoing, on the Closing Date, Borrower shall pay interest from and including the Closing Date through the end of the first
Interest Accrual Period, in lieu of making such payment on the first Payment Date following the Closing Date (unless the Closing
Date falls on a Payment Date, in which case, no interest will be collected on the Closing Date, and Borrower shall make the payment
required pursuant to this Section commencing on the first Payment Date following the Closing Date) and the next payment of interest
shall be due and payable on the next subsequent Payment Date.

 

(b)         No
prepayments of the Loan shall be permitted except for (i) prepayments made pursuant to Section 2.1, Section 2.3 and
Section 5.4 and (ii) prepayments resulting from Casualty or Condemnation as described in Section 5.16. The entire
outstanding Principal Indebtedness, together with all interest thereon through (x) prior to a Securitization, the Maturity Date
and (y) after a Securitization, the end of the Interest Accrual Period in which the Maturity Date falls (calculated as if such
Principal Indebtedness were outstanding for the entire Interest Accrual Period) and in each case all other amounts then due under
the Loan Documents shall be due and payable by Borrower to Lender on the Maturity Date.

 

(c)         If
all or any portion of the Principal Indebtedness is paid to Lender during the Spread Maintenance Period following acceleration
of the Loan (except as a result of a Casualty or Condemnation), Borrower shall pay to Lender an amount equal to the applicable
Spread Maintenance Premium. Amounts received in respect of the Indebtedness during the continuance of an Event of Default shall
be applied toward interest, principal and other components of the Indebtedness (in such order as Lender shall determine) before
any such amounts are applied toward payment of any Spread Maintenance Premium that is due and payable, with the result that any
Spread Maintenance Premium that is due and payable shall accrue as the Principal Indebtedness is repaid but no amount received
from Borrower shall constitute payment of a Spread Maintenance Premium until the remainder of the Indebtedness shall have been
paid in full. Borrower acknowledges that (i) a prepayment during the Spread Maintenance Period will cause damage to Lender; (ii)
the Spread Maintenance Premium is intended to compensate Lender for the loss of its investment and the expense incurred and time
and effort associated with making the Loan, which will not be fully repaid if the Loan is prepaid; (iii) it will be extremely difficult
and impractical to ascertain the extent of Lender’s damages caused by a prepayment after an acceleration or any other prepayment
during the Spread Maintenance Period; and (iv) the Spread Maintenance Premium represents Lender’s and Borrower’s reasonable
estimate of Lender’s damages from the prepayment and is not a penalty.

 

    	35

     

    

 

(d)         Any
payments of interest and/or principal not paid when due hereunder shall bear interest at the applicable Default Rate from and after
the expiration of applicable notice and cure periods and, in the case of all payments due hereunder other than the repayment of
the Principal Indebtedness on the Maturity Date if not paid when due, when paid shall be accompanied by a late fee in an amount
equal to the lesser of 5% of such unpaid sum and the maximum amount permitted by applicable law, in order to defray a portion of
the expense incurred by Lender in handling and processing such delinquent payment and to compensate Lender for the loss of the
use of such delinquent payment.

 

(e)         In
the event that Lender shall determine in its reasonable discretion that by reason of circumstances affecting the interbank Eurodollar
market, adequate and reasonable means do not exist for ascertaining LIBOR in accordance with the definition thereof, then the Loan
shall be converted to a Prime Rate Loan effective as of the commencement of the Interest Accrual Period following the date of such
determination, and Lender shall give notice thereof to Borrower by telephone at least one day prior to the applicable Interest
Determination Date (which notice shall thereafter be promptly confirmed by Lender in writing). If, pursuant to this Section, any
portion of the Loan has been converted to a Prime Rate Loan and Lender thereafter determines in its reasonable discretion that
the events or circumstances that resulted in such conversion are no longer applicable, the Loan shall be converted to a LIBOR Loan
effective as of the commencement of the Interest Accrual Period following the date of such determination, and Lender shall give
notice thereof to Borrower by telephone at least one day prior to the applicable Interest Determination Date (which notice shall
thereafter be promptly confirmed by Lender in writing). Borrower shall pay to Lender, promptly following demand, any additional
amounts necessary to compensate Lender for any reasonable out-of-pocket costs incurred by Lender in making any conversion in accordance
with this Section. In the event any Note has been divided into multiple Notes or Note Components pursuant to Section 1.1(c),
upon any conversion of the Loan pursuant to this Section the interest rate applicable to such Notes or Note Components shall be
proportionately adjusted to reflect such conversion. Except as provided in this Section, the Loan shall at all times be a LIBOR
Loan. In no event shall Borrower have the right to convert a LIBOR Loan to a Prime Rate Loan.

 

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Section 1.3.          Method
and Place of Payment. Except as otherwise specifically provided in this Agreement,
all payments and prepayments under this Agreement and the Notes 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 the account specified from time to time by Lender. Any funds received by Lender after such time
shall be deemed to have been paid on the next succeeding Business Day. Lender shall notify Borrower in writing of any changes
in the account to which payments are to be made. If the amount received from Borrower (or from the Cash Management Account pursuant
to Section 3.2(b)) is less than the sum of all amounts then due and payable hereunder and as a result an Event of Default
has occurred, such amount shall be applied, at Lender’s sole discretion, either toward the components of the Indebtedness
(e.g., interest, principal and other amounts payable hereunder) and the Notes and Note Components, in such sequence as
Lender shall elect in its sole discretion, or toward the payment of Property expenses. Whenever any payment to be made hereunder
or under any other Loan Document shall be stated to be due on a day that is not a Business Day, the due date thereof shall be
the immediately preceding Business Day.

 

Section 1.4.          Taxes;
Regulatory Change.

 

(a)          Borrower
shall indemnify Lender and hold Lender harmless from and against any present or future stamp, documentary or other similar or related
taxes or other similar or related charges now or hereafter imposed, levied, collected, withheld or assessed by any Governmental
Authority by reason of the execution and delivery of the Loan Documents and any consents, waivers, amendments and enforcement of
rights under the Loan Documents.

 

(b)          Reasonably
promptly following Borrower’s request, the Lender at the time the Initial Advance is made and any Person to whom there has
been an Assignment shall complete and deliver to Borrower a duly executed Form W-9 certifying that it is not subject to backup
withholding or an appropriate IRS Form W-8, as applicable. If Borrower is required by law to withhold or deduct any amount from
any payment hereunder in respect of any Borrower Tax, Borrower shall withhold or deduct the appropriate amount, remit such amount
to the appropriate Governmental Authority and pay to the Lender and each Person to whom there has been an Assignment or Participation
of the Loan (Lender and all such Persons, collectively, “Lender Parties” and each individually, a “Lender
Party”) such additional amounts as are necessary in order that the net payment of any amount due hereunder, after deduction
for or withholding in respect of any Borrower Tax imposed with respect to such payment, will not be less than the amount stated
in this Agreement to be then due and payable; except that the foregoing obligation to pay such additional amounts shall not apply
to (i) Inapplicable Taxes; (ii) any amount of U.S. Tax in effect and applicable to payments to Lender on the date of this Agreement,
provided that Borrower requests from Lender, if necessary to prevent the imposition of such U.S. Tax, a Form W-9 or W-8, as applicable,
reasonably in advance of when withholding in respect of such U.S. Tax would be required absent the receipt of such form; (iii)
with respect to payments made under this Agreement to any Lender Party to whom there has been an Assignment or Participation, any
amount of U.S. Tax imposed, to the extent that the receipt of additional amounts in respect of such U.S. Tax would entitle the
Lender Party to receive greater payment than the assignor would have been entitled to receive with respect to the rights assigned,
unless such assignment shall have been made at a time when the circumstances giving rise to such greater payment did not exist;
(iv) any U.S. federal withholding taxes imposed under FATCA; or (v) any amount of Borrower Taxes imposed solely by reason of the
failure by an assignee to comply with Section 9.7(c). If Borrower shall fail to pay any Borrower Taxes or other amounts
that Borrower is required to pay pursuant to this Section, and Lender or any Person to whom there has been an Assignment or Participation
of a Loan pays the same, Borrower shall reimburse Lender or such Person promptly following demand therefore in the currency in
which such taxes or other amounts are paid, whether or not such taxes were correctly or legally asserted, together with interest
thereon from and including the date of payment to but excluding the date of reimbursement at a rate per annum equal to the rate
required to be paid under Section 1.2(a) for the first five (5) Business Days from and including the date of payment and
demand to Borrower and the Default Rate thereafter.

 

    	37

     

    

 

(c)          Within
30 days after paying any amount from which it is required by law to make any deduction or withholding, and within 30 days after
it is required by law to remit such deduction or withholding to any relevant taxing or other authority, Borrower shall deliver
to Lender reasonably satisfactory evidence of such deduction, withholding or payment (as the case may be).

 

(d)          If,
as a result of any Regulatory Change, any reserve, special deposit or similar requirements relating to any extensions of credit
or other assets of, or any deposits with, Lender or any holder of all or a portion of the Loan is imposed, modified or deemed applicable
and the result is to increase the cost to such Lender or such holder of making or holding the Loan, or to reduce the amount receivable
by Lender or such holder hereunder in respect of any portion of the Loan by an amount deemed by Lender or such holder in its reasonable
discretion to be material (such increases in cost and reductions in amounts receivable, “Increased Costs”),
then Borrower agrees that it will pay to Lender or such holder upon Lender’s or such holder’s request such additional
amount or amounts as will compensate Lender and/or such holder for such Increased Costs to the extent that such Increased Costs
are reasonably allocable to the Loan and are also being paid by borrowers under similar loans held by Lender or such holder. Lender
will notify Borrower in writing of any event occurring after the Closing Date that will entitle Lender or any holder of the Loan
to compensation pursuant to this Section as promptly as practicable after it obtains knowledge thereof and determines to request
such compensation and will designate a different lending office if such designation will avoid the need for, or reduce the amount
of, such compensation and will not, in the reasonable judgment of such Lender, be otherwise disadvantageous to such Lender. If
such Lender shall fail to notify Borrower of any such event within six (6) months following the end of the month during which such
event occurred, then Borrower’s liability for any amounts described in this Section incurred by such Lender as a result of
such event shall be limited to those attributable to the period occurring subsequent to the date that is six (6) months prior to
the date upon which such Lender actually notified Borrower of the occurrence of such event. Notwithstanding the foregoing, in no
event shall Borrower be required to compensate Lender or any holder of the Loan for any portion of the income or franchise taxes
of Lender or such holder, whether or not attributable to payments made by Borrower. If a Lender requests compensation under this
Section, Borrower may, by notice to Lender, require that such Lender furnish to Borrower a statement setting forth in reasonable
detail the basis for requesting such compensation and the method for determining the amount thereof.

 

Section 1.5.          Interest
Rate Cap Agreements.

 

(a)          On
or prior to the Closing Date, Borrower shall obtain, and thereafter maintain in effect, an Interest Rate Cap Agreement, which shall
be coterminous with the initial term of the Loan and have a notional amount equal to the Initial Advance. Any initial Interest
Rate Cap Agreement shall have a strike rate equal to or less than the Strike Rate.

 

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(b)          If
Borrower exercises any of its options to extend the term of the Loan pursuant to Section 1.1(d), on or prior to the commencement
of the applicable Extension Term, Borrower shall obtain, and thereafter maintain in effect, an Interest Rate Cap Agreement having
(x) a term coterminous with such Extension Term, (y) a notional amount at least equal to the Principal Indebtedness as of the first
day of such Extension Term, and (z) a strike rate equal to or less than the Strike Rate.

 

(c)          Borrower
shall collaterally assign to Lender pursuant to an Assignment of Interest Rate Cap Agreement all of its right, title and interest
in any and all payments under each Interest Rate Cap Agreement and shall deliver to Lender an executed counterpart of such Interest
Rate Cap Agreement and obtain the consent of the Acceptable Counterparty to such collateral assignment (as evidenced by the Acceptable
Counterparty’s execution of such Collateral Assignment of Interest Rate Cap Agreement).

 

(d)          Borrower
shall comply with all of its material obligations under the terms and provisions of each Interest Rate Cap Agreement. All amounts
paid under an Interest Rate Cap Agreement shall be deposited directly into the Clearing Account. Borrower shall take all actions
reasonably requested by Lender to enforce Lender’s rights under the Interest Rate Cap Agreement in the event of a default
by the counterparty thereunder and shall not waive, amend or otherwise modify any of its rights thereunder without the approval
of Lender, not to be unreasonably withheld, delayed or conditioned.

 

(e)          If,
at any time during the term of the Loan, the counterparty to the Interest Rate Cap Agreement then in effect ceases to be an Acceptable
Counterparty and thereafter fails to abide by the requirements set forth in such Interest Rate Cap Agreement with respect to ratings
downgrades, then Borrower shall promptly obtain a replacement Interest Rate Cap Agreement satisfying the requirements set forth
in paragraph (a) or (b) above, as applicable, with a counterparty that is an Acceptable Counterparty.

 

(f)          In
connection with closing of the Loan and at any time that Borrower obtains a replacement Interest Rate Cap Agreement pursuant to
this Section, Borrower shall deliver to Lender a legal opinion or opinions from counsel to the applicable Acceptable Counterparty
(which counsel may be internal counsel) with respect to the Interest Rate Cap Agreement in form and substance reasonably satisfactory
to Lender.

 

Section 1.6.          Release.
Upon payment of the Indebtedness in full when permitted or required hereunder, Lender shall execute instruments prepared by Borrower
and reasonably satisfactory to Lender, which, at Borrower’s election and at Borrower’s sole cost and expense either
(a) release and discharge all Liens on all Collateral securing payment of the Indebtedness (subject to Borrower’s obligation
to pay any associated fees and expenses), including all balances in the Collateral Accounts; or (b) assign such Liens (and the
Loan Documents) to a new lender designated by Borrower. Any release or assignment provided by Lender pursuant to this Section
shall be without recourse, representation or warranty of any kind other than that the Loan is not subject to any Lien.

 

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Section 1.7.          Advances.

 

(a)          On
the Closing Date, subject to the terms and conditions of this Agreement, Lender shall advance the Initial Advance to Borrower.

 

(b)          Subject
to the terms and conditions contained herein, the Future Funding Component will be available to Borrower solely to fund the Approved
Costs. If Borrower desires that funds from the Future Funding Component be advanced, Borrower shall submit a Draw Request to Lender
specifying a date (each, a “Future Funding Date”) not less than 10 nor more than 20 Business Days after Lender’s
receipt of such Draw Request on which Borrower would like such advance to be made, which Draw Request shall be in the form attached
hereto as Schedule G, provided that Borrower shall not be entitled to more than one advance of the Future Funding
Component during any calendar month. Lender shall advance the requested portion of the Future Funding Component on each applicable
Future Funding Date to the Operating Account, subject to the satisfaction of the following conditions precedent on or prior to
the applicable Future Funding Date:

 

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

 

(ii)         Borrower
shall deliver to Lender invoices evidencing that the costs for which such advance is requested are due and payable, and Borrower
shall deliver to Lender an Officer’s Certificate confirming that all such costs have been previously paid by Borrower or
will be paid from the proceeds of the requested advance and that all conditions precedent to such advance required under this Section
1.7(b);

 

(iii)        no
mechanics or materialmen’s lien or encumbrance shall have been filed and remain in effect against any Property with respect
to work done by or on behalf of Borrower (unless bonded as required under applicable law or otherwise in a manner reasonably satisfactory
to Lender);

 

(iv)        Borrower
shall have provided to Lender (A) reasonable evidence establishing that Borrower has applied any amounts previously received by
it in accordance with this Section 1.7 for the expenses to which specific draws made hereunder relate; (B) releases or waivers
of mechanics’ and materialmen’s liens (conditioned only on payment to the extent that such payments are costs for which
such advance is requested) from all Persons furnishing work or materials with respect to Approved Costs being funded hereunder;
and (C) with respect to disbursements for Approved Costs relating to any single capital improvement costing in excess of $500,000
in the aggregate (whether disbursed in a lump sum or multiple installments), if requested by Lender, a reasonably satisfactory
site inspection;

 

(v)         the
Title Policy shall have been endorsed and down-dated in a manner reasonably satisfactory to Lender to increase the coverage by
the amount of each advance of the Future Funding Component through the date of each such advance with no additional title change
or exception not approved by Lender in its reasonable discretion;

 

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(vi)        if
Lender shall have determined that based on the most recent Approved Costs Reconciliation Report that the actual costs incurred
by Borrower for Approved Costs exceed the amounts provided in the Approved Future Funding Budget for the applicable Approved Costs
(provided that Borrower shall be permitted to reallocate cost savings from completed line items or up to five percent (5%) between
line items without Lender approval), Borrower shall deposit in the Operating Account the amount of such shortfall or Borrower shall
have otherwise provided Lender with reasonably satisfactory evidence of Borrower’s prior payment of such shortfall costs
or the ability of Borrower to make such payments;

 

(vii)       (A)
Borrower shall have delivered to Lender evidence reasonably satisfactory to Lender that Borrower has contributed or will simultaneously
contribute cash equity for deposit in the Operating Account of Borrower’s Pro Rata Share of the amount of the costs which
are the subject of such Draw Request (or Borrower has otherwise paid such costs) or (B) Borrower has Excess Cash Flow in the Operating
Account in an amount equal to at least the Borrower’s Pro Rata Share of the amount of the costs which are the subject of
such Draw Request or (C) Borrower shall provide reasonably satisfactory evidence that Borrower has paid Borrower’s Pro Rata
Share of the amount of the costs which are subject to the related Draw Request (it being agreed with respect to all of this clause
(vii) that Lender shall not be obligated to fund more than 70% of the amount of the costs which are the subject of the related
Draw Request);

 

(viii)      in connection with each advance
of the Future Funding Component that results in Lender having advanced $10,000,000 in the aggregate since the last update to the
notional amount of the Interest Rate Cap Agreement (a) the notional amount of the initial Interest Rate Cap Agreement shall have
been increased to an amount at least equal to the Principal Indebtedness after the advance resulting in the aggregate advances
of the Future Funding Component of $10,000,000 and $20,000,000, respectively or (b) Borrower shall deliver to Lender a separate
Interest Rate Cap Agreement with a notional amount equal to the cumulative advances since the last update to the notional amount
of the Interest Rate Cap Agreement and otherwise satisfying the requirements of Section 1.5; and

 

(ix)         Borrower
shall have delivered to Lender such other information and documents as may be reasonably required by Lender supporting the costs
shown in such Draw Request or the other requirements of this Section 1.7(b).

 

(c)          Promptly
upon completion of any work funded by a Draw Request (the “Approved Work”), if requested by Lender, Borrower
shall deliver evidence to Lender of the issuance of a temporary certificate of occupancy or the equivalent thereof, if required
by law, for the Approved Work and evidence reasonably satisfactory to Lender demonstrating compliance with all Legal Requirements
pertaining to the construction of such Approved Work; provided, that with respect to any Approved Work for which such a
temporary certificate of occupancy shall have been issued, Borrower shall use commercially reasonable efforts to obtain and deliver
evidence to Lender of the issuance of an unconditional, permanent certificate of occupancy to the extent available under applicable
law.

 

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(d)          Regardless
of whether or not the Borrower shall have given Lender any direction as to the party to whom any advance shall be disbursed, during
the continuance of an Event of Default, Lender may make any requested advance or portion thereof directly to any person or entity
due payment in connection with a Draw Request, and the execution of this Agreement by Borrower constitutes an irrevocable direction
and authorization to so advance during the continuance of an Event of Default, at the election of Lender. No further direction
or authorization from Borrower shall be necessary to make such direct advances to each such other Person, and all such direct advances
shall satisfy the obligations of Lender under this Agreement and shall be and become a part of the Principal Indebtedness as fully
as if made directly to Borrower, regardless of the disposition thereof by such Person.

 

(e)          No
advance shall constitute an approval or acceptance by Lender of any construction work, a waiver of any condition precedent to any
further advance, or preclude Lender from thereafter requiring the Borrower to satisfy such condition precedent which was not waived
in accordance with the terms hereof. No waiver by Lender of any condition precedent or obligation shall preclude Lender from requiring
such condition or obligation to be met prior to making any other advance or from thereafter declaring the failure to satisfy such
condition or obligation to be a Default or an Event of Default.

 

(f)            If
the event that there is more than one Future Funding Note, upon satisfaction of the applicable conditions set forth in this Section
1.7, the holders of such Future Funding Notes shall fund any requested advance of the Future Funding Component sequentially
in accordance with the numerical designation of the applicable Future Funding Note, until each Future Funding Note is fully funded.

 

(g)          All
advances of the Future Funding Component shall be evidenced by the Future Funding Notes in accordance with Section 1.1(a)
hereof. Any obligations and rights relating to the Future Funding Component pursuant to Section 1.7(b)-(f) hereof shall
be the sole obligations and rights of the holders of the Future Funding Notes and any reference to Lender in Sections 1.7(b)-(e)
hereof shall be deemed to mean solely the holders of the Future Funding Note. Notwithstanding anything to the contrary contained
herein, the holders of the Initial Advance Notes shall have no obligation hereunder to make any advance of the Future Funding Component,
it being acknowledged that the obligation to make any advance of the Future Funding Component shall solely be the obligation of
the holders of the Future Funding Notes. No claim may be made by Borrower against any holder of the Initial Advance Notes or the
directors, officers, employees, attorneys or agents of any holder of the Initial Advance Notes for any damages of any nature whatsoever
in respect of any claim whatsoever for breach of the obligations of the holders of the Future Funding Notes to make an advance
of the Future Funding Component in accordance with the terms of Section 1.7(b) hereof, and Borrower hereby waives, releases
and agrees not to sue any holder of the Initial Advance Notes upon any claim for any such damages.

 

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ARTICLE
II

 

VOLUNTARY
PREPAYMENT AND ASSUMPTION

 

Section 2.1.          Voluntary
Prepayment.

 

(a)          Borrower
shall have the right, at its option, upon 30 days’ prior written notice to Lender, to prepay the Loan in whole or in part
at any time, provided that Borrower shall make a simultaneous and pro-rata prepayment of the Mezzanine Loan, with the result that
the ratio of the Principal Indebtedness to the Mezzanine Loan Principal Indebtedness remains unchanged. Each such prepayment shall
be accompanied by (i) the amount of interest that would have been earned on the Loan during the Interest Accrual Period relating
to the applicable Payment Date (if prepaid on a Payment Date) or the succeeding Payment Date (if prepaid on any date other than
a Payment Date) had the prepayment not occurred and (ii) except as otherwise provided herein, the Spread Maintenance Premium if
such prepayment occurs during the Spread Maintenance Period. Following any such prepayment, Borrower may release or transfer, free
and clear of the Lien of the Loan Documents, a portion of the notional amount of the Interest Rate Cap Agreement equal to the amount
of such prepayment. Borrower’s notice of prepayment shall create an obligation of Borrower to prepay the Loan as set forth
therein, but may be rescinded with five (5) Business Days’ written notice to Lender (of the original or extended date, but
subject to payment of any reasonable out-of-pocket costs and expenses resulting from such rescission) or extended by up to thirty
(30) days by written notice to Lender delivered no less five (5) Business Days prior to the intended prepayment.

 

(b)          If
any Note has been bifurcated into multiple Note Components pursuant to Section 1.1(c), so long as no Event of Default is
then continuing, all prepayments of the Loan shall be applied to the Note Components pro rata. During the continuance of an Event
of Default, any prepayment of the Loan shall be applied in such order as Lender shall determine in its sole discretion.

 

(c)          If
the Debt Yield is less than the applicable Debt Yield Threshold as of the Test Period immediately prior to the Extension Term,
Borrower shall be permitted to (but not obligated to) prepay a portion of the Loan (and Mezzanine Borrower shall make a simultaneous
pro rata prepayment of the Mezzanine Loan) in the aggregate amount required to cause the Debt Yield to equal or exceed the Debt
Yield Threshold, which prepayment shall be accompanied by interest on the principal amount so prepaid through the (x) prior to
a Securitization, the date such prepayment is made and (y) after a Securitization, the end of the Interest Accrual Period in which
such prepayment is made; provided, however, that none of the Future Funding Components shall be used to prepay the Loan.

 

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(d)          Borrower
shall be permitted to (but not obligated to) prepay a portion of the Loan (and Mezzanine Borrower shall make a simultaneous pro
rata prepayment of the Mezzanine Loan) in the aggregate amount necessary to increase the Debt Yield to avoid the commencement of
a Cash Flow Sweep Period or, if there is an ongoing Cash Flow Sweep Period, to cause the termination of such Cash Flow Sweep Period,
which prepayment shall be accompanied by interest on the principal amount so prepaid through (x) prior to a Securitization, the
date such prepayment is made and (y) after a Securitization, the end of the Interest Accrual Period in which such prepayment is
made; provided, however, that none of the Future Funding Component shall be used to prepay the Loan. So long no Event of Default
is then continuing, Borrower shall have the right (but not the obligation) to direct Lender to use funds in the Cash Flow Sweep
Reserve Account, if any, to prepay the Loan and make a simultaneous pro rata prepayment of the Mezzanine Loan in the aggregate
amount necessary to increase the Debt Yield to avoid the commencement of a Cash Flow Sweep Period or, if there is an ongoing Cash
Flow Sweep Period, to cause the termination of such Cash Flow Sweep Period.

 

Section 2.2.          Transfers
of Equity Interests in Borrower.

 

(a)           No direct or indirect equity interests
in Borrower shall be conveyed or otherwise transferred to any Person without Lender’s approval (in its sole discretion),
except in connection with a foreclosure by Mezzanine Lender under the Mezzanine Loan or any Additional Mezzanine Lender under the
Additional Mezzanine Loan Documents, or unless the following conditions are satisfied:

 

(i)          no
Event of Default shall be continuing at the time of such conveyance or transfer;

 

(ii)         no
Prohibited Change of Control or Prohibited Pledge shall occur as a result thereof;

 

(iii)        if
such conveyance or transfer results in any Person acquiring more than 49% of the direct or indirect equity interest in any Required
SPE (even if not constituting a Prohibited Change of Control), Borrower shall have delivered to Lender with respect to such Person
a new non-consolidation opinion or modification to the Nonconsolidation Opinion in substantially the form of the Nonconsolidation
Opinion or otherwise approved by Lender, such approval not to be unreasonably withheld, delayed or conditioned;

 

(iv)        Borrower
shall have paid the reasonable out-of-pocket costs and expenses (if any) of the Rating Agencies and reimbursed Lender for its reasonable
out-of-pocket costs and expenses incurred in connection with any such conveyance or transfer, provided that no fee shall be payable
to Lender or Servicer or Rating Agencies with respect to such transfer; and

 

(v)         Lender
shall have received 10 days advance written notice of such conveyance or transfer; and

 

(vi)        if,
as a result of such conveyance or transfer, there is a new guarantor, such guarantor (a) is a Qualified Equityholder and (b) shall
execute and deliver a new recourse guaranty and environmental indemnity in form and substance substantially similar to that delivered
to Lender at closing of the Loan.

 

(b)          Notwithstanding
the foregoing, the following shall be permitted without Lender’s consent or the payment of any fees or (except as noted below)
satisfaction of any other condition:

 

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(i)          the
offer, sale, listing, transfer or issuance by NY REIT of (i) securities that are listed on the New York Stock Exchange, the NASDAQ
Global Select Market or another nationally recognized stock exchange or (ii) securities that are sold in the ordinary course of
business and in accordance with all applicable legal requirements to investors in a manner consistent with previous offerings and
sales conducted by NY REIT or its Affiliates to date; or

 

(ii)         subject
to satisfaction of the conditions in Sections 2.2(a)(iii), 2.2(a)(iv) and 2.2(a)(vi), the merger or acquisition
of all, or substantially all, of the direct or indirect interests in NYROP by any Person provided that at all times NYROP is Controlled
by NY REIT or by one or more Qualified Equityholders.

 

Section 2.3.          Retail
Unit Release.

 

(a)          From
and after a Condominium Conversion in accordance with Section 2.3(d), provided no Event of Default shall have occurred and
be continuing, Borrower shall have the right to obtain a release of the lien of the Mortgage (and related Loan Documents) on the
Retail Unit upon satisfaction of the following conditions precedent as reasonably determined by Lender:

 

(i)          not
less than 30 days, nor more than 90 days, prior to the date on which the Borrower proposes a release to occur (the “Release
Date”), Borrower shall provide to Lender a notice specifying the proposed Release Date, which notice shall be revocable
without penalty by Borrower up to two Business Days prior to the Release Date (subject to payment by Borrower of any reasonable
out-of-pocket costs and expenses incurred by Lender in connection with the release), provided that Borrower shall have the right
to adjourn the Release Date for a period of up to 30 days by delivering notice of such adjournment to Lender prior to the then-scheduled
Release Date;

 

(ii)         such
release shall be in connection with a bona fide sale of the Retail Unit to a third party that is not an Affiliate of either Borrower
or Guarantor pursuant to an arms-length transaction;

 

(iii)        Borrower
shall make a principal payment to be applied against the principal balance of the Loan in accordance with Section 2.1 in
an aggregate amount equal to the Release Price, together with the amount of interest theretofore accrued but unpaid in respect
of the principal amount so prepaid, plus the amount of interest that would have accrued on the principal amount so prepaid had
it remained outstanding through (x) prior to a Securitization, the date such prepayment is made and (y) after a Securitization,
end of the Interest Accrual Period in which such prepayment is made and, in each case if applicable, the Spread Maintenance Premium;

 

(iv)        Lender
shall have received reasonably satisfactory evidence that the Mezzanine Borrower shall have satisfied all of the conditions to
the proposed release set forth in the Mezzanine Loan Agreement, including a principal payment against the Mezzanine Loan equal
to the Mezzanine Loan Release Price;

 

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(v)         Borrower
shall have complied in all material respects with all requirements of and obtained all approvals, if any, required under any Leases
and/or Material Agreements (including, without limitation, those documents related to the creation or operation of a condominium
association or similar regime) applicable to the release of the Retail Unit, and the release shall not violate in any material
respect any of the provisions of any of the foregoing (except to the extent such provisions have been waived or otherwise amended
in such a manner that Borrower is no longer in violation thereof);

 

(vi)        after
giving effect to such release, the Debt Yield for the remaining Property is at least equal to the greater of (x) the Debt Yield
for the Property (including the Retail Unit) immediately prior to giving effect to such release and (y) 8.0%;

 

(vii)       after giving effect to such release,
the Lender 80% Determination shall have been satisfied;

 

(viii)      Borrower
shall deliver to Lender an Officer’s Certificate certifying that the requirements set forth in this Section 2.4 have
been satisfied; and

 

(ix)         Borrower
shall pay all reasonable out-of-pocket costs and expenses of Lender actually incurred in connection with the release of the Retail
Unit, including without limitation Lender’s reasonable attorneys’ fees and expenses.

 

(b)          In
connection with a release of the Retail Unit in accordance with the provisions of Section 2.3(a), Borrower shall submit
to Lender, not less than five Business Days prior to the Release Date, a release of Lien and related Loan Documents or applicable
documents severing a portion of the Mortgage securing the Release Price paid and assigning the same (and related Loan Documents)
for execution by the Lender with respect to the Retail Unit. Such release shall be in a form appropriate in the jurisdiction in
which the Retail Unit is located and shall contain standard provisions protecting the rights of a releasing lender. In addition,
Borrower shall use commercially reasonable efforts to promptly deliver to Lender such other documentation as Lender may reasonably
request (if the same is customary for such release) in connection with such release to evidence such release.

 

(c)          In
connection with a release of the Retail Unit in accordance with the provisions of Section 2.3(a), at Borrower’s sole
cost and expense, Lender shall reasonably cooperate with Borrower to structure such release in a manner requested by Borrower (including
interim transfers to a newly formed single-purpose entity) provided the same does not impair Lender’s remaining Collateral,
the continued validity of any of the Loan Documents or result in a waiver of any of the requirements of Section 2.3(a) or
any of Borrower’s obligations under the Loan Documents.

 

(d)          In
connection with the release of the Retail Unit, Borrower shall have the right to convert the entire Property to a commercial condominium
form of ownership (a “Condominium Conversion”), subject to the terms and full satisfaction of all of the conditions
precedent set forth below:

 

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(i)          Lender
shall have received at least sixty (60) days prior notice of the date of the proposed Condominium Conversion (the “Condominium
Conversion Notice”), which notice may be revoked or postponed upon three (3) Business Days notice to Lender; provided
that Borrower reimburses Lender for any reasonable out-of-pocket costs and expenses, including reasonable attorney’s fees
and disbursements, actually incurred by Lender in connection with the proposed Condominium Conversion;

 

(iii)        no
Event of Default has occurred and is continuing on the date Lender receives the Condominium Conversion Notice or on the date of
the consummation of the Condominium Conversion;

 

(iv)        the resulting condominium regime
provided for thereunder (the “Condominium”) shall consist of commercial condominium units (each, a “Condominium
Unit” and, collectively, the “Condominium Units”) and related common area with a cost-sharing program
between the Condominium Units and Lender shall have approved the Condominium Units, common area, the portions of the Property to
be included therein, and the cost-sharing program in Lender’s reasonable discretion;

 

(v)         
Lender shall have received and approved in its reasonable discretion all documents, conveyances, instruments and agreements to
be entered into in connection with the Condominium Conversion, including, without limitation, the applicable condominium declaration
and bylaws (such documents, instruments and agreements, collectively, the “Condominium Documents”);

 

(vi)        the implementation of the Condominium Conversion will not result in the violation of any Legal Requirements or the terms of
any Permitted Encumbrances, Leases or Material Agreements in any material respect, or give rise to any termination,
cancellation or abatement right under any Lease, Permitted Encumbrance or other Material Agreement affecting or relating to the
use and/or operation of the Property and Borrower shall have delivered to Lender an Officer’s Certificate certifying as to
the foregoing;

 

(vii)       Lender
shall have received such usual and customary documents, instruments, financing statements and other agreements and assurances as
may be reasonably required by Lender to reflect the Condominium Conversion in the Loan Documents, including, but not limited to,
an amendment to the Mortgage and amendments and reaffirmations to the terms and conditions hereof and of the other Loan Documents
reasonably required by Lender in connection with the Condominium Conversion, the Condominium Documents and/or the other terms and
provisions of this Section (but otherwise not imposing any other material changes to the Loan Documents and not increasing Borrower’s
obligations or Lender’s rights or reducing Borrower’s rights or Lender’s obligations under the Loan Documents)
(such amendments, collectively, the “Condominium Conversion Amendments”);

 

(viii)      Borrower shall have delivered to Lender
evidence such that Lender may reasonably conclude that (A) after giving effect to the Condominium Conversion and the implementation
of the terms and conditions set forth in this Section 2.3(d), each Condominium Unit shall be a separate tax lot, and (B)
Borrower has obtained all necessary approvals, consents or permits and made all necessary filings under all applicable Legal Requirements
with respect to the Condominium Conversion and the implementation of the terms and conditions set forth in this Section 2.3(d)
(whether from applicable Governmental Authorities, parties to Permitted Encumbrances affecting the Property or otherwise);

 

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(ix)         In
connection with the Condominium Conversion and the implementation of the terms and conditions set forth in this Section 2.3(d),
Borrower shall have delivered to Lender such other information reflecting such Condominium Conversion and implementation, including
condominium board estoppels, approvals or other documents or instruments as may be reasonably requested by Lender;

 

(x)          Borrower shall pay all of Lender’s
reasonable out-of-pocket costs and expenses (including, without limitation, reasonable attorneys’ fees and expenses) in connection
with the Condominium Conversion and the implementation of the terms and conditions of this Section 2.3(d);

 

(xi)         Lender
shall have received reasonably satisfactory evidence that the Mezzanine Borrower shall have satisfied all of the conditions to
the Condominium Conversion set forth in the Mezzanine Loan Agreement;

 

(xii)        Borrower shall have delivered and paid for in full such endorsements, supplements and amendments to the Title Insurance Policy
as may be reasonably required by Lender to reflect the Condominium Conversion and the implementation of the terms and conditions
of this Section 2.3(d), including a so-called condominium endorsement to the Title Insurance Policy insuring the
creation of the Condominium, confirming no change in the priority of the Mortgage (provided the Mortgage will be subject to the
Condominium Documents as provided in Section 2.3(d)(xiii) below) or in the amount of the insurance or the coverage under
the Title Insurance Policy and insuring the rights and benefits under any reciprocal easement or similar agreement created in connection
with the Condominium Conversion; and

 

(xiii)       Borrower shall submit to Lender, not
less than ten (10) days prior to the date of such Condominium Conversion, a subordination of lien (and related Loan Documents)
to the Condominium Documents for execution by Lender, which such subordination shall only be executed and effective upon the consummation
of the Condominium Conversion in accordance with the applicable terms and conditions hereof. Such subordination shall be in a form
appropriate in the jurisdiction in which the Property is located and shall otherwise be reasonably satisfactory to Lender; in addition,
Borrower shall provide an Officer’s Certificate certifying that such subordination documentation (A) is in compliance with
all applicable Legal Requirements, (B) will effect such subordination in accordance with the terms of this Agreement and (C) will
not otherwise impair or otherwise adversely affect the liens, security interests and other rights of Lender under the Loan Documents
(subject to the subordination documentation).

 

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ARTICLE
III

ACCOUNTS

 

Section 3.1.          Cash
Management Account.

 

(a)          On
or prior to the Closing Date, Borrower shall establish and thereafter maintain with the Clearing Account Bank a lockbox account
into which all Revenues from the Property will be deposited (the “Clearing Account”). As a condition precedent
to the closing of the Loan, Borrower shall cause the Clearing Account Bank to execute and deliver an agreement (as modified or
replaced in accordance herewith, a “Clearing Account Agreement”) which provides, inter alia, that
Borrower shall have no access to funds in the Clearing Account and that at the end of each Business Day the Clearing Account Bank
will remit all amounts contained therein directly into the Operating Account; provided that during the continuance of an
Event of Default or Cash Flow Sweep Period the Lender shall terminate such remittances to the Operating Account and shall direct
that all funds in the Clearing Account be remitted directly into the Cash Management Account. Within five Business Days following
the Closing Date, Borrower shall deliver to each Tenant at the Property a written notice (a “Tenant Notice”)
in the form of Exhibit B instructing that (i) all payments under the Leases shall thereafter be remitted by them directly
to, and deposited directly into, the Clearing Account, and (ii) such instruction may not be rescinded unless and until such Tenant
receives from Borrower or Lender a copy of Lender’s written consent to such rescission. Borrower shall send a copy of each
such written notice to Lender and shall redeliver such notices to each Tenant until such time as such Tenant complies therewith.
Borrower shall cause all cash Revenues relating to the Property and all other money received by Borrower or the Approved Property
Manager with respect to the Property (other than tenant security deposits required to be held in escrow accounts) to be deposited
in the Clearing Account by the end of the first Business Day following Borrower’s or the Approved Property Manager’s
receipt thereof.

 

(b)          On
or prior to the Closing Date, Borrower shall establish and thereafter maintain with the Cash Management Bank an account (the “Cash
Management Account”) pursuant to the Cash Management Agreement. During the continuance of an Event of Default or if the
Clearing Account Bank fails to comply with the Clearing Account Agreement or ceases to be an Eligible Institution, Lender shall
have the right at any time, upon not less than 30 days’ prior written notice to Borrower, to replace the Clearing Account
Bank with any Eligible Institution at which Eligible Accounts may be maintained (provided that unless there is a continuing Event
of Default, the choice of new Clearing Account Bank shall be subject to the reasonable approval of Borrower) that will promptly
execute and deliver to Lender a Clearing Account Agreement reasonably satisfactory to Lender and, so long as no Event of Default
is continuing, Borrower.

 

(c)          Borrower
shall maintain at all times an Operating Account into which amounts may be deposited from time to time pursuant to ‎Sections
3.1(a) and ‎3.2(b). Borrower shall not permit any amounts unrelated to the Property to be commingled with amounts
on deposit in the Operating Account and shall cause all amounts payable with respect to Operating Expenses and Capital Expenditures
for the Property to be paid from the Operating Account or the Cash Management Account and subaccounts thereof (to the extent required
or permitted hereunder) and no other account. Borrower shall deliver to Lender each month the monthly bank statement related to
such Operating Account. So long as no Event of Default is continuing, Borrower shall have full access to and shall be permitted
to withdraw amounts from the Operating Account for the purpose of paying bona fide Property expenses incurred in accordance with
this Agreement, to make equity distributions from the Operating Account,
and to otherwise use in any manner and for any purpose that Borrower so determines; provided, however, that during the continuance
of a Cash Flow Sweep Period, Borrower shall only be permitted to make one equity distribution during such Cash Flow Sweep Period
in an amount no greater than the balance of the Operating Account on the date prior to the commencement of such Cash Flow Sweep
Period (excluding any amounts in the Operating Account required to pay Property expenses that are due and payable as of such date).
During the continuance of an Event of Default, all amounts contained in the Operating Account shall be remitted to the Cash Management
Account.

 

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Section 3.2.          Distributions
from Cash Management Account.

 

(a)          Intentionally
omitted.

 

(b)          On
each Payment Date during the continuance of a Cash Flow Sweep Period, provided no Event of Default is continuing (and, if and to
the extent Lender so elects in its sole discretion, during the continuance of an Event of Default until the Loan has been accelerated),
Lender shall transfer amounts from the Cash Management Account, to the extent available therein, to make such payments in the following
order of priority:

 

(i)          to
the Basic Carrying Costs Escrow Account, the amounts then required to be deposited therein pursuant to Section 3.4;

 

(ii)         to
Lender, the amount of all scheduled or delinquent interest and principal on the Loan and all other amounts then due and payable
under the Loan Documents (with any amounts in respect of principal paid last);

 

(iii)        to
the Operating Account, an amount equal to the Budgeted Operating Expenses for the month in which such Payment Date occurs; provided
that the amounts disbursed to such account pursuant to this clause (iii) shall be used by Borrower solely to pay Budgeted Operating
Expenses for such month (Borrower agreeing that, in the event that such Budgeted Operating Expenses exceed the actual operating
expenses for such month, such excess amounts shall be remitted by Borrower to the Cash Management Account prior to the next succeeding
Payment Date) and provided further that no amounts will be disbursed to Borrower in respect of the fees of the Approved
Property Manager to the extent such fees exceed the Maximum Management Fee;

 

(iv)        to
the Capital Expenditure Reserve Account, the amount required to be deposited therein pursuant to Section 3.6;

 

(v)         until
Lender shall have received notice from Mezzanine Lender that the Mezzanine Loan has been repaid in full and provided that no Event
of Default is then continuing, to Mezzanine Lender, all scheduled interest then due and payable or past due and payable to Mezzanine
Lender under the Mezzanine Loan Agreement, as specified by Mezzanine Lender pursuant to Mezzanine Lender’s written instructions
to Lender; and

 

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(vi)        all
remaining amounts to the Cash Flow Sweep Reserve Account, including if an Event of Default is continuing and Lender makes the election
described in Section 3.2(b) above.

 

(c)          If
on any Payment Date the amount in the Cash Management Account is insufficient to make all of the transfers described above (other
than the payment to Mezzanine Lender under clause (v) above and the remittances of excess cash to the Cash Flow Sweep Reserve Account
or the Operating Account), then Borrower shall remit to the Cash Management Account on such Payment Date the amount of such deficiency.
If Borrower fails to remit such amount to the Cash Management Account or otherwise to provide to Lender evidence that the obligations
for which such remittances are to be paid or have been paid on any Payment Date, the same shall constitute an immediate Event of
Default and, in addition to all other rights and remedies provided for under the Loan Documents, Lender may disburse and apply
the amounts in the Collateral Accounts in accordance with Section 3.11(c).

 

(d)          All
transfers of Borrower’s funds from the Cash Management Account or other sources to or for the benefit of Mezzanine Lender
or Mezzanine Borrower pursuant to this Agreement, the Cash Management Agreement or any of the other Loan Documents, are intended
by Borrower and Mezzanine Borrower to constitute, and shall constitute, distributions from Borrower to Mezzanine Borrower in accordance
with the Delaware Limited Liability Company Act.

 

(e)          Lender
may conclusively rely upon any notice received from Mezzanine Lender with respect to the amount then payable under the applicable
Mezzanine Loan Agreement and with respect to the occurrence, continuance or termination of any Mezzanine Loan Event of Default.
Lender shall be under no duty to inquire into or investigate the validity, accuracy or content of any such notice.

 

Section 3.3.          Loss
Proceeds Account.

 

(a)          Upon
the occurrence of a Casualty or Condemnation, Lender will establish and maintain an Eligible Account (which may be a subaccount
of the Cash Management Account) for the purpose of depositing any Loss Proceeds (the “Loss Proceeds Account”).

 

(b)          Provided
no Event of Default is continuing, funds in the Loss Proceeds account shall be applied in accordance with Section 5.16.

 

Section 3.4.          Basic
Carrying Costs Escrow Account.

 

(a)          Lender
will establish and maintain an Eligible Account (which may be a subaccount of the Cash Management Account) for the purpose of reserving
amounts payable by Borrower in respect of Taxes and insurance premiums (the “Basic Carrying Costs Escrow Account”).

 

(b)          On
the Closing Date, the Basic Carrying Costs Escrow Account shall be funded in an amount equal to the sum of (i) an amount sufficient
to pay all Taxes by the 30th day prior to the date they come due, assuming subsequent monthly fundings on Payment Dates
of 1/12 of projected annual Taxes, plus (ii) an amount sufficient to pay all insurance premiums by the 30th day
prior to the date they come due, assuming subsequent monthly fundings on Payment Dates of 1/12 of projected annual insurance premiums.

 

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(c)          On
each subsequent Payment Date, Borrower shall deposit or cause to be deposited therein (unless deposited pursuant to Section
3.2(b)) an amount equal to the sum of:

 

(A)         1/12
of the Taxes that Lender reasonably estimates, based on information provided by Borrower, will be payable during the next ensuing
12 months, plus

 

(B)         1/12
of the insurance premiums that Lender reasonably estimates, based on information provided by Borrower, will be payable during the
next ensuing 12 months;

 

provided, however, that if at any time Lender
reasonably determines that the amount in the Basic Carrying Costs Escrow Account will not be sufficient to accumulate (upon payment
of subsequent monthly amounts in accordance with the provisions of this Agreement) the full amount of all installments of Taxes
and insurance premiums by the date on which such amounts come due, then Lender shall notify Borrower of such determination and
Borrower shall increase its monthly payments to the Basic Carrying Costs Escrow Account by the amount that Lender reasonably estimates
is sufficient to achieve such accumulation.

 

(d)          Borrower
shall provide Lender with copies of all tax and insurance bills relating to the Property promptly after Borrower’s receipt
thereof. Lender will apply amounts in the Basic Carrying Costs Escrow Account toward the purposes for which such amounts are deposited
therein. In connection with the making of any payment from the Basic Carrying Costs Escrow Account, Lender may cause such payment
to be made according to any bill, statement or estimate provided by Borrower or procured from the appropriate public office or
insurance carrier, without inquiry into the accuracy of such bill, statement or estimate or into the validity of any Tax, assessment,
sale, forfeiture, Tax lien or title or claim thereof unless given written advance notice by Borrower of such inaccuracy, invalidity
or other contest.

 

(e)          Intentionally
Omitted.

 

(f)          Notwithstanding
the terms and provisions of this Section 3.4, Borrower shall not be required to reserve any amounts for payment of insurance
premiums as otherwise required by this Section 3.4 for so long as (A) Borrower shall have provided Lender with evidence
that insurance satisfying the requirements set forth in Section 5.15 of this Agreement has been obtained under a blanket
policy of insurance and thereafter provides Lender with evidence of the payment of premiums in respect thereof at least 10 days
prior to the date on which such payment would become delinquent, and (B) no Event of Default is continuing. During the continuance
of an Event of Default or at any time that Borrower shall have failed to deliver to Lender the evidence required by the immediately
preceding sentence, amounts in respect of insurance premiums shall be reserved in accordance with this Section 3.4.

 

Section 3.5.          Intentionally
Omitted.

 

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Section 3.6.          Capital
Expenditure Reserve Account.

 

(a)          Lender
will establish and maintain an Eligible Account (which may be a subaccount of the Cash Management Account) for the purpose of reserving
amounts in respect of Capital Expenditures (the “Capital Expenditure Reserve Account”).

 

(b)          Beginning
on the Payment Date in October 2019 and on each Payment Date thereafter, Borrower shall deposit or cause to be deposited (unless
deposited pursuant to Section 3.2(b)) into the Capital Expenditure Reserve Account an amount equal to the Monthly Capital
Expenditure Amount.

 

(c)          Upon
the request of Borrower at any time that no Event of Default is continuing (but not more often than once per calendar month), no
more than twenty (20) days after delivery to Lender of the items required or requested by Lender under Section 3.6(c)(i)
through (iii) below, Lender shall cause disbursements to Borrower from the Capital Expenditure Reserve Account to reimburse
Borrower for (i) Capital Expenditures that are consistent with the Annual Budget or, as applicable, the Approved Annual Budget,
(ii) unbudgeted extraordinary Capital Expenditures approved by Lender in its reasonable discretion or (iii) Approved Base Building
Work, in Lender’s reasonable discretion; provided that:

 

(i)          Borrower
shall deliver to Lender invoices evidencing that the costs for which such disbursements are requested are due and payable;

 

(ii)         Borrower
shall deliver to Lender an Officer’s Certificate confirming that all such costs have been previously paid by Borrower or
will be paid from the proceeds of the requested disbursement and that all conditions precedent to such disbursement required by
this Section 3.6 have been satisfied; and

 

(iii)        Lender
may condition the making of a requested disbursement on (1) reasonable evidence establishing that Borrower has applied any amounts
previously received by it in accordance with this Section for the expenses to which specific draws made hereunder relate and (2)
with respect to disbursements for Capital Expenditures relating to any single capital improvement costing in excess of $500,000
in the aggregate (whether disbursed in a lump sum or multiple installments), (x) a reasonably satisfactory site inspection, and
(y) receipt of lien releases and waivers from any contractors, subcontractors and others with respect to such amounts (which may
be conditioned on payment).

 

Section 3.7.          [Reserved].

 

Section 3.8.          Cash
Flow Sweep Reserve Account.

 

(a)          Lender
will establish and maintain an Eligible Account (which may be a subaccount of the Cash Management Account) for the deposit of amounts
required to be deposited therein in accordance with Section 3.2(b) (the “Cash Flow Sweep Reserve Account”).

 

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(b)          Provided
that no Event of Default is then continuing, Lender shall release (i) to Lender and Mezzanine Lender, amounts required to make
the prepayment permitted under Section 2.1(d) if and as directed by Borrower, (ii) to the Operating Account all amounts
then contained in the Cash Flow Sweep Reserve Account within three (3) Business Days after the date that such Event of Default
or Cash Flow Sweep Period is no longer continuing, as applicable, if Borrower delivers to Lender evidence reasonably satisfactory
to Lender establishing that no Cash Flow Sweep Period is then continuing and (iii) subject to Lender’s approval in its sole
discretion, to the Operating Account any amounts permitted to be funded in accordance with Section 3.6(c) to the extent
the Capital Expenditure Account does not contain sufficient funds to fund such amounts. Such a release shall not preclude the subsequent
commencement of a Cash Flow Sweep Period and the deposit of amounts into the Cash Flow Sweep Reserve Account as set forth in Section
3.2(b).

 

Section 3.9.          Unfunded
Obligations Account.

 

(a)          If
the Unfunded Obligations Amount is greater than zero, Lender shall establish and maintain an Eligible Account (which may be a subaccount
of the Cash Management Account) for the purpose of reserving for Unfunded Obligations required to be funded by Borrower (the “Unfunded
Obligations Account”).

 

(b)          On
the Closing Date, Borrower shall deposit into the Unfunded Obligations Account an amount equal to the Unfunded Obligations Amount.
Borrower and Lender acknowledge that Borrower has provided the Unfunded Obligations Guaranty in accordance with Section 3.9(f)
in lieu of reserving the Unfunded Obligations Amount.

 

(c)          Borrower
shall perform its obligations in respect of the Unfunded Obligations when and as due under the respective Leases or other applicable
agreements in a good and workmanlike manner and free of all Liens upon completion.

 

(d)          After
funding the Unfunded Obligations Account, upon the request of Borrower at any time that no Event of Default is continuing (but
not more often than once per calendar month) no more than twenty (20) days after delivery to Lender of the items required or requested
by Lender under Section 3.9(d)(i) through (iii) below, Lender shall cause disbursements to Borrower from the Unfunded
Obligations Account to reimburse Borrower for the costs and expenses incurred in the performance of Unfunded Obligations, provided
that

 

(i)          Borrower
shall deliver to Lender invoices evidencing that the costs for which such disbursements are requested are due and payable;

 

(ii)         Borrower
shall deliver to Lender an Officer’s Certificate confirming that all such costs have been previously paid by Borrower or
will be paid from the proceeds of the requested disbursement and that all conditions precedent to such disbursement required by
this Section 3.9 have been satisfied; and

 

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(iii)        Lender
may condition the making of a requested disbursement on (1) reasonable evidence establishing that Borrower has applied any amounts
previously received by it in accordance with this Section for the expenses to which specific draws made hereunder relate and (2)
with respect to disbursements for any single Unfunded Obligation costing in excess of $500,000 in the aggregate (whether disbursed
in a lump sum or multiple installments), (x) reasonably satisfactory site inspections, if applicable, and (y) if applicable,
receipt of lien releases and waivers from any contractors, subcontractors and others with respect to such amounts (which may be
conditioned on payment).

 

(e)          Upon
payment or performance, as applicable, of the Unfunded Obligations identified on any line on Schedule D, and provided no
Event of Default is then continuing, the remainder of the portion of the Unfunded Obligations Account held for such line item (as
shown adjacent to such line item on Schedule D) shall promptly be remitted to Borrower, except that any amounts in respect
of free rent shall be remitted to the Cash Management Account if there is a Cash Flow Sweep Period in effect. Upon the payment
or performance in full of all Unfunded Obligations, provided no Event of Default or Cash Flow Sweep Period is then continuing,
any amounts then remaining in the Unfunded Obligations Account shall promptly be remitted to the Operating Account and the Unfunded
Obligations Account will no longer be maintained.

 

(f)          Borrower,
at its election, may replace the amounts required to be deposited into the Unfunded Obligations Account by delivering to Lender
either (i) one or more Qualified Letters of Credit in amount(s) equal to the amounts being so replaced or (ii) a Qualified Guaranty
for the amount equal to the amounts being so replaced (and provided no Event of Default is continuing, upon delivery of any such
Qualified Letter of Credit or Qualified Guaranty, as applicable, any of the amounts so replaced shall be promptly remitted to Borrower).
Lender shall be entitled to draw on any such Qualified Letter of Credit, and hold the proceeds of such draws as additional Collateral,
immediately and without further notice, (a) upon the occurrence and during the continuance of any Event of Default, (b) if Borrower
shall not have delivered to Lender, no less than 30 days prior to the termination of any Qualified Letter of Credit, a replacement
Qualified Letter of Credit reasonably satisfactory to Lender, or (c) if Borrower shall not have delivered to Lender, within 10
days after Lender has delivered written notice to Borrower that the issuer of such Qualified Letter of Credit ceases to be an Eligible
Institution, a replacement Qualified Letter of Credit reasonably satisfactory to Lender. Lender shall be entitled to enforce any
such Qualified Guaranty, and hold the proceeds of such enforcement as additional Collateral, immediately and without further notice,
(a) upon the occurrence and during the continuance of any Event of Default or (b) if the Guarantor is replaced pursuant to Section
2.2 and Borrower shall not have delivered to Lender a replacement Qualified Guaranty reasonably satisfactory to Lender from
such new guarantor. Provided no Event of Default is continuing, if so requested by Borrower in writing, Borrower shall have the
right to replace any Qualified Letter of Credit or Qualified Guaranty delivered to Lender pursuant to this Section by remitting
to the Unfunded Obligations Account the amount that would have been contained therein as of such date had Borrower not delivered
such Qualified Letter of Credit or Qualified Guaranty and the deposits required pursuant to this Agreement had been made into the
Unfunded Obligations Account (reduced by any subsequent payment by Borrower of any Unfunded Obligations as set forth on Schedule
D), and upon depositing such amount into the Unfunded Obligations Account, (i) Lender shall return to Borrower the applicable
Qualified Letter of Credit and Borrower shall be permitted to cancel the same, or, as applicable (ii) the Qualified Guaranty shall
terminate and have no further force and effect. Upon the earlier of (x) payment of all Unfunded Obligations and (y) repayment of
the Indebtedness in full, (i) any Qualified Letter of Credit held by Lender pursuant to this Section shall be promptly returned
to Borrower, and Borrower shall be permitted to cancel the same and (ii) any Qualified Guaranty held by Lender pursuant to this
Section shall terminate and have no further force and effect.

 

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(g)          Whenever
a Lease is terminated, whether by buy-out, cancellation, default or otherwise, and Borrower receives any payment, fee or penalty
in respect of such termination (a “Termination Fee”), Borrower shall promptly cause such Termination Fee to
be deposited into the Unfunded Obligations Account. Provided no Event of Default is continuing, (i) Lender shall disburse such
Termination Fee or portion thereof to Borrower no later than ten (10) days after written request of Borrower in respect of Leasing
Commissions and Tenant Improvement costs incurred by Borrower in connection with a replacement Lease entered into in accordance
with the terms of this Agreement in respect of the space covered by such terminated Lease and (ii) unless a Cash Flow Sweep Period
is continuing, the remainder of such Termination Fee or portion thereof, if any, shall be remitted to the Operating Account after
the space covered by such terminated Lease has been relet, the replacement Tenant is in occupancy and has commenced paying rent
under the replacement Lease and all Leasing Commissions and Tenant Improvement costs relating to such space have been paid.

 

(h)          Notwithstanding
anything to the contrary contained in this Section, Borrower shall not be required to reserve any amounts in the Unfunded Obligations
Account to the extent such Unfunded Obligations are included in the Approved Costs nor shall the Unfunded Obligations Guaranty
cover such amounts.

 

Section 3.10.         
Intentionally Omitted

 

Section 3.11.         Account
Collateral.

 

(a)          Borrower
hereby pledges the Account Collateral to Lender as security for the Indebtedness, together with all rights of a secured party with
respect thereto, it being the intention of the parties that such pledge shall be a perfected first-priority security interest.
Each Collateral Account shall be an Eligible Account under the sole dominion and control of Lender subject to the terms hereof.
Subject to the terms hereof, Borrower shall have no right to make withdrawals from any of the Collateral Accounts other than the
Operating Account. Funds in the Collateral Accounts shall not be commingled with any other monies at any time. Borrower shall execute
any additional documents that Lender in its reasonable discretion may require and shall provide all other evidence reasonably requested
by Lender to evidence or perfect its first-priority security interest in the Account Collateral. Funds in the Collateral Accounts
shall be invested only in Permitted Investments, which Permitted Investments shall be credited to the related Collateral Account.
All income and gains from the investment of funds in the Collateral Accounts other than the Basic Carrying Costs Escrow Account
shall be retained in the Collateral Accounts from which they were derived. Unless otherwise required by applicable law, all income
and gains from the investment of funds in the Basic Carrying Costs Escrow Account shall be for the account of Lender in consideration
of its administration of such Collateral Account, and Lender shall have the right at any time to withdraw such amounts from the
Basic Carrying Costs Escrow Account. All reasonable fees of the Cash Management Bank and the Clearing Account Bank shall be paid
by Borrower pursuant to the Clearing Account Agreement and Cash Management Agreement, respectively. After the Loan and all other
Indebtedness have been paid in full, the Collateral Accounts shall be closed and the balances therein, if any, shall be paid to
Borrower.

 

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(b)          The
insufficiency of amounts contained in the Collateral Accounts shall not relieve Borrower from its obligation to fulfill all covenants
contained in the Loan Documents.

 

(c)          During
the continuance of an Event of Default, Lender may, in its sole discretion, apply funds in the Collateral Accounts, and funds resulting
from the liquidation of Permitted Investments contained in the Collateral Accounts, either toward the components of the Indebtedness
(e.g., interest, principal and other amounts payable hereunder), the Loan, the Note Components and the Notes in such sequence
as Lender shall elect in its sole discretion, and/or toward the payment of Property expenses.

 

Section 3.12.         Bankruptcy.
Borrower and Lender acknowledge and agree that upon the filing of a bankruptcy petition by or against Borrower under the Bankruptcy
Code, the Account Collateral and the Revenues (whether then already in the Collateral Accounts, or then due or becoming due thereafter)
shall be deemed not to be property of Borrower’s bankruptcy estate within the meaning of Section 541 of the Bankruptcy Code.
If, however, a court of competent jurisdiction determines that, notwithstanding the foregoing characterization of the Account
Collateral and the Revenues by Borrower and Lender, the Account Collateral and/or the Revenues do constitute property of Borrower’s
bankruptcy estate, then Borrower and Lender further acknowledge and agree that all such Revenues, whether due and payable before
or after the filing of the petition, are and shall be cash collateral of Lender. Borrower acknowledges that Lender does not consent
to Borrower’s use of such cash collateral and that, in the event Lender elects (in its sole discretion) to give such consent,
such consent shall only be effective if given in writing signed by Lender. Except as provided in the immediately preceding sentence,
Borrower shall not have the right to use or apply or require the use or application of such cash collateral (i) unless Borrower
shall have received a court order authorizing the use of the same, and (ii) Borrower shall have provided such adequate protection
to Lender as shall be required by the bankruptcy court in accordance with the Bankruptcy Code.

 

ARTICLE
IV

 

REPRESENTATIONS

 

Borrower represents to Lender that, as of
the Closing Date, except as set forth in the Exception Report:

 

Section 4.1.          Organization.

 

(a)          Each
Required SPE is duly organized, validly existing and in good standing under the laws of the State of Delaware, and is in good standing
in each other jurisdiction where ownership of its properties or the conduct of its business requires it to be so, and each Required
SPE has all power and authority under such laws and its organizational documents and all material governmental licenses, authorizations,
consents and approvals required to carry on its business as now conducted.

 

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(b)          The
organizational chart contained in Exhibit A is true and correct as of the date hereof.

 

Section 4.2.          Authorization.
Borrower has the power and authority to enter into this Agreement and the other Loan Documents, to perform its obligations hereunder
and thereunder and to consummate the transactions contemplated by the Loan Documents and has by proper action duly authorized
the execution and delivery of the Loan Documents.

 

Section 4.3.          No
Conflicts. Neither the execution and delivery of the Loan Documents, nor the consummation
of the transactions contemplated therein, nor performance of and compliance with the terms and provisions thereof will (i) violate
or conflict with any provision of its formation and governance documents, (ii) violate any Legal Requirement, regulation (including
Regulation U, Regulation X or Regulation T), order, writ, judgment, injunction, decree or permit applicable to it, (iii) violate
or conflict with contractual provisions of, or cause an event of default under, any indenture, loan agreement, mortgage, contract
or other Material Agreement to which Borrower, Guarantor or any of their direct or indirect equityholders is a party or may be
bound, or (iv) result in or require the creation of any Lien or other charge or encumbrance upon or with respect to the Collateral
in favor of any Person other than Lender.

 

Section 4.4.          Consents.
No consent, approval, authorization or order of, or qualification with, any court or Governmental Authority is required in connection
with the execution, delivery or performance by Borrower of this Agreement or the other Loan Documents, except for any of the foregoing
that have already been obtained.

 

Section 4.5.          Enforceable
Obligations. This Agreement and the other Loan Documents have been duly executed
and delivered by Borrower and constitute Borrower’s legal, valid and binding obligations, enforceable in accordance with
their respective terms, subject to bankruptcy, insolvency and similar laws of general applicability relating to or affecting creditors’
rights and to general equity principles. The Loan Documents are not subject to any right of rescission, offset, abatement, counterclaim
or defense by Borrower or Guarantor, including the defense of usury or fraud.

 

Section 4.6.          No
Default. No Default or Event of Default will exist immediately following the making
of the Loan.

 

Section 4.7.          Payment
of Taxes. Borrower has filed, or caused to be filed, all tax returns (federal,
state and local) required to be filed and paid all amounts of taxes due (including interest and penalties) except for taxes that
are not yet delinquent and has paid all other taxes, fees, assessments and other governmental charges (including mortgage recording
taxes, documentary stamp taxes and intangible taxes) owing by it necessary to preserve the Liens in favor of Lender.

 

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Section 4.8.          Compliance
with Law. Borrower, the Property and the use thereof comply in all material respects
with all applicable Insurance Requirements and Legal Requirements, including building and zoning ordinances and codes, except
as specified in the zoning report delivered to or obtained by Lender in connection with closing. The Property conforms to current
zoning requirements (including requirements relating to parking) and is neither an illegal nor a legal nonconforming use except
as specified in the zoning report delivered to or obtained by Lender in connection with the origination of the Loan. Borrower
is not in default or violation of any order, writ, injunction, decree or demand of any Governmental Authority the violation of
which could materially adversely affect the Property or the condition (financial or otherwise) or business of Borrower. There
has not been committed by or on behalf of Borrower or, to Borrower’s knowledge, any other person in occupancy of or involved
with the operation or use of the Property, any act or omission affording any federal Governmental Authority or any state or local
Governmental Authority the right of forfeiture as against the Property or any portion thereof or any monies paid in performance
of its obligations under any of the Loan Documents. Neither Borrower nor Guarantor has purchased any portion of the Property with
proceeds of any illegal activity.

 

Section 4.9.          ERISA.
Neither Borrower nor any ERISA Affiliate of Borrower has incurred any liability, whether actual or contingent, under Title IV
or Section 302 of ERISA or Section 412 of the Code or maintains or contributes to, or is or has been required to maintain or contribute
to, any employee benefit plan (as defined in Section 3(3) of ERISA) subject to Title IV or Section 302 of ERISA or Section 412
of the Code, as of the date hereof or within the six (6) year period ending on the date hereof. The consummation of the transactions
contemplated by this Agreement will not constitute or result in any non-exempt prohibited transaction under Section 406 of ERISA,
Section 4975 of the Code or substantially similar provisions under federal, state or local laws, rules or regulations; provided
that Borrower shall not be deemed to have breached its representations and warranties set forth in this Section 4.9 by
reason of the occurrence of a non-exempt prohibited transaction resulting from Lender’s use of Plan Assets to fund, acquire
or hold an interest in the Loan (or any portion thereof).

 

Section 4.10.        Investment
Company Act. Borrower is not an “investment company”, or a company
“controlled” by an “investment company”, registered or required to be registered under the Investment
Company Act of 1940, as amended.

 

Section 4.11.        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.
Borrower does not have knowledge of any Person contemplating the filing of any such petition against it. During the ten year period
preceding the Closing Date, no petition in bankruptcy has been filed by or against any Required SPE, Guarantor, any of their respective
affiliates or any Person that owns or controls, directly or indirectly, 10% or more of the beneficial ownership interests in Borrower
or Guarantor and no such Persons have been convicted of a felony. Borrower has not received notice of and is not otherwise aware
of any Tenant under a Major Lease contemplating or having filed any of the foregoing actions.

 

Section 4.12.        Other
Debt. Borrower does not have any outstanding Debt other than Permitted Debt.

 

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Section 4.13.        Litigation.
There are no actions, suits, proceedings, arbitrations or governmental investigations by or before any Governmental Authority
or other court or agency now filed or otherwise pending, and to Borrower’s knowledge there are no such actions, suits, proceedings,
arbitrations or governmental investigations threatened, against or affecting Borrower, Guarantor or the Collateral, in each case,
and none of the matters listed in the Exception Report contrary to the representation in this Section 4.13, even if determined
against Borrower or the Collateral, would reasonably be expected to have a Material Adverse Effect).

 

Section 4.14.      Leases;
Material Agreements.

 

(a)          Borrower
has delivered to Lender true and complete copies of all Leases, including all modifications and amendments thereto. No person has
any possessory interest in the Property or right to occupy the same except under and pursuant to the provisions of the Leases.
The rent roll attached to this Agreement as Schedule E (the “Rent Roll”) is accurate and complete in
all material respects as of the Closing Date. The security deposits being held by Borrower (including bonds or letters of credit
being held in lieu of cash security deposits) are set forth on the Rent Roll, and except as indicated on the Rent Roll or Exception
Report, no Tenant has any termination options (except in connection with a Casualty or Condemnation), no Tenant has any extension
or renewal rights (except as set forth in its Lease), no Tenant or other party has any option, right of first refusal or similar
preferential right to purchase all or any portion of the Property, no fixed rent has been paid more than 30 days in advance of
its due date (other than prepayment of first month’s rent as provided in the applicable Leases) and no payments of rent are
more than 30 days delinquent. Each of the following is true and correct with respect to each Lease: 

 

(i)          such
Lease is valid and enforceable and is in full force and effect;

 

(ii)         Borrower
is the sole owner of the entire lessor’s interest in such Lease;

 

(iii)        such
Lease is an arm’s-length agreement with bona fide, independent third parties;

 

(iv)        none
of the Revenues reserved in such Lease have been assigned or otherwise pledged or hypothecated by Borrower (except such pledge
or hypothecation that will be fully terminated and released in connection with the filing and recordation of the Mortgage and except
for the Liens contemplated pursuant to the Loan Documents);

 

(v)         neither
Borrower nor, to Borrower’s knowledge, any other party under such Lease is in default thereunder in any material respect;

 

(vi)        to
Borrower’s knowledge, there exist no offsets or defenses by any tenant under any Lease to the payment of any portion of the
rents thereunder.

 

(vii)       no
brokerage commissions or finders fees are due and payable regarding any Lease; and

 

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(viii)      (A)
except for the Unfunded Obligations, all work to be performed by the landlord under such Lease as of the Closing Date has been
substantially performed, all Tenants have accepted possession of their respective premises under such Lease, all contributions
to be made by the landlord to the Tenants thereunder as of the Closing Date have been made and all other conditions to each Tenant’s
obligations thereunder as of the Closing Date have been satisfied and (B) to Borrower’s knowledge, no Tenant has the right
to require Borrower to perform or finance material Tenant Improvements or Material Alterations and no material Leasing Commissions
are owed or would be owed by Borrower upon the exercise of any Tenant’s existing renewal or expansion options under such
Lease.

 

(b)          There
are no Material Agreements except as described in Schedule F. Borrower has made available to Lender true and complete copies
of all Material Agreements. Each Material Agreement has been entered into at arm’s length in the ordinary course of business
by or on behalf of Borrower. The Material Agreements are in full force and effect and, there are no defaults thereunder by Borrower
or, to Borrower’s knowledge, any other party thereto. Borrower is not in default in any material respect in the performance,
observance or fulfillment of any of the obligations, covenants or conditions contained in any Permitted Encumbrance or any other
agreement or instrument to which it is a party or by which it or the Property is bound.

 

Section 4.15.        Full
and Accurate Disclosure. No statement of fact heretofore delivered by Guarantor
or Borrower to Lender in writing in respect of the Guarantor, Property or Borrower knowingly contains any untrue statement of
a material fact or omits to state any material fact necessary to make statements contained therein not misleading unless subsequently
corrected (except that the foregoing representation, as it relates to any Environmental Report, Engineering Report, Title Policy
and zoning report delivered to Lender in connection with the closing of the Loan, shall be limited to Borrower’s knowledge).
There is no fact, event or circumstance presently known to Borrower that has not been disclosed to Lender that has had or could
reasonably be expected to result in a Material Adverse Effect.

 

Section 4.16.        Financial
Condition. Borrower has heretofore delivered to Lender financial statements and
operating statements with respect to the Property for the past three calendar years, and trailing twelve-month operating statements.
Such statements are accurate and complete in all material respects and fairly present in accordance with GAAP the financial position
of Borrower in all material respects as of their respective dates and do not knowingly omit to state any material fact necessary
to make statements contained therein not misleading. Since the delivery of such data, except as otherwise disclosed in writing
to Lender, there have occurred no changes or circumstances that have had or are reasonably expected to result in a Material Adverse
Effect.

 

Section 4.17.      Single-Purpose
Requirements.

 

(a)          Each
Required SPE is now, and has always been since its formation, a Single-Purpose Entity and has conducted its business in substantial
compliance with the provisions of its organizational documents. Borrower has never (i) owned any property other than the Property
and related personal property, (ii) engaged in any business, except the ownership, leasing and operation of the Property or (iii)
had any material contingent or actual obligations or liabilities unrelated to the Property.

 

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(b)          Borrower
has provided Lender with true, correct and complete copies of (i) Borrower’s current financial statements, and (ii) Borrower’s
current operating agreement or partnership agreement, as applicable, together with all amendments and modifications thereto.

 

(c)          On
or prior to the Closing Date, Borrower shall have been fully released from any loan (other than the Loan) secured by the Property
or any of the Collateral (a “Prior Loan”), and Borrower shall not have any continuing liability, actual or contingent,
for any Prior Loan, and no recourse whatsoever against any portion of the Property shall be available to satisfy any Prior Loan
under any circumstances.

 

Section 4.18.        Use
of Loan Proceeds. 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 Regulations T, U or X of the Board of Governors
of the Federal Reserve System or for any other purpose that would be inconsistent with such Regulations T, U or X or any other
Regulations of such Board of Governors, or for any purpose prohibited by Legal Requirements or by the terms and conditions of
the Loan Documents. The Loan is solely for the business purpose of Borrower or for distribution to Borrower’s equityholders
in accordance with Legal Requirements and no portion thereof shall be used for personal, consumer, household or similar purposes.

 

Section 4.19.        Not
Foreign Person. Borrower is not a “foreign person” within the meaning
of Section 1445(f)(3) of the Code.

 

Section 4.20.        Labor
Matters. Borrower has no employees and is not a party to any collective bargaining
agreements.

 

Section 4.21.        Title.
Borrower owns insurable fee simple title to the Property and title to the related personal property owned by Borrower, to the
Collateral Accounts and to any other Collateral, in each case free and clear of all Liens whatsoever except the Permitted Encumbrances.
The Permitted Encumbrances do not and will not, individually or in the aggregate, materially and adversely affect or interfere
with the value, or current or contemplated use or operation, of the Property, or the security intended to be provided by the Mortgage,
the ability of the Property to generate net cash flow sufficient to service the Loan or Borrower’s ability to pay its obligations
as and when they come due, including its ability to repay the Indebtedness in accordance with the terms of the Loan Documents.
Except as insured over by a Title Insurance Policy, Borrower has not received written notice of (and otherwise has no actual knowledge
of) any claims for payment for work, labor or materials affecting the Property that are or may become a Lien prior to, or of equal
priority with, the Liens created by the Loan Documents. No creditor of Borrower other than Lender has in its possession any goods
that constitute or evidence the Collateral.

 

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Section 4.22.        No
Encroachments. Except as shown on the Survey, to Borrower’s knowledge, all
of the improvements on the Property lie wholly within the boundaries and building restriction lines of the Property, and no improvements
on adjoining property encroach upon the Property, and no easements or other encumbrances upon the Property encroach upon any of
the improvements, so as, in either case, to materially adversely affect the value, use or marketability of the Property, except
those that are insured against by a Title Insurance Policy.

 

Section 4.23.        Physical
Condition.

 

(a)          Except
for matters set forth in the Engineering Reports, to Borrower’s knowledge, the Property and all building systems (including
sidewalks, parking lots, storm drainage system, roof, plumbing system, HVAC system, fire protection system, electrical system,
equipment, elevators, exterior sidings and doors, irrigation system and all structural components) are free of all material damage
and are in good condition, order and repair in all respects material to the Property’s use, operation and value.

 

(b)          Except
as set forth in the Engineering Report, Borrower is not aware of any material structural or other material defect or damages in
the Property, whether latent or otherwise.

 

(c)          Borrower
has not received and is not aware of any other Person’s receipt of notice from any insurance company or bonding company of
any defects or inadequacies in the Property that would, alone or in the aggregate, adversely affect in any material respect the
insurability of the same or cause the imposition of extraordinary premiums or charges thereon or of any termination or threatened
termination of any policy of insurance or bond.

 

Section 4.24.        Fraudulent
Conveyance. Borrower has not entered into any of the Loan Documents with the actual
intent to hinder, delay or defraud any creditor. Borrower has received reasonably equivalent value in exchange for its obligations
under the Loan Documents. On the Closing Date, the fair salable value of Borrower’s aggregate assets is and will, immediately
following the making of the Loan and the use and disbursement of the proceeds thereof, be greater than Borrower’s probable
aggregate liabilities (including subordinated, unliquidated, disputed and Contingent Obligations). Borrower’s aggregate
assets do not and, immediately following the making of the Loan and the use and disbursement of the proceeds thereof will not,
constitute unreasonably small capital to carry out its business as conducted or as proposed to be conducted. Borrower does not
intend to, and does not believe that it will, incur debts and liabilities (including Contingent Obligations 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).

 

Section 4.25.        Management.
Except for any Approved Management Agreement, no property management agreements are in effect with respect to the Property. The
Approved Management Agreement is in full force and effect and, to Borrower’s knowledge, there is no event of default thereunder
by any party thereto and, to Borrower’s knowledge, no event has occurred that, with the passage of time and/or the giving
of notice would constitute a default thereunder.

 

Section 4.26.        Condemnation.
Borrower has not received written notice that a Condemnation has been commenced or is contemplated or threatened with respect
to all or any portion of the Property or for the relocation of roadways providing access to the Property.

 

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Section 4.27.        Utilities
and Public Access. The Property has adequate rights of access to dedicated public
ways (and makes no material use of any means of access or egress that is not pursuant to such dedicated public ways or recorded,
irrevocable rights-of-way or easements) and is adequately served by all public utilities, including water and sewer (or well and
septic), necessary to the continued use and enjoyment of the Property as presently used and enjoyed.

 

Section 4.28.        Environmental
Matters. Except as disclosed in the Environmental Reports:

 

(i)          To
Borrower’s knowledge, no Hazardous Substances are located at, on, in or under the Property or have been handled, manufactured,
generated, stored, processed, or disposed of at, on, in or under, or have been Released from, the Property. Without limiting the
foregoing, to Borrower’s knowledge, there is not present at, on, in or under the Property, any PCB-containing equipment,
asbestos or asbestos containing materials, underground storage tanks or surface impoundments for any Hazardous Substance, lead
in drinking water (except in concentrations that comply with all Environmental Laws), or lead-based paint. To Borrower’s
knowledge, there is no threat of any Release of any Hazardous Substance migrating to the Property.

 

(ii)         To
Borrower’s knowledge, the Property is in compliance in all material respects with all Environmental Laws applicable to the
Property (which compliance includes, but is not limited to, the possession of, and compliance with, all environmental, health and
safety permits, approvals, licenses, registrations and other governmental authorizations required in connection with the ownership
and operation of the Property under all Environmental Laws). Borrower has not received written notice that an Environmental Claim
is pending with respect to the Property, nor, to Borrower’s knowledge, is any threatened, nor are there any consent decrees
or other decrees, consent orders, administrative orders or other orders, or other administrative or judicial requirements outstanding
under any Environmental Law with respect to Borrower or the Property.

 

(iii)        No
Liens are presently recorded with the appropriate land records under or pursuant to any Environmental Law with respect to the Property
and, to Borrower’s knowledge, no Governmental Authority has been taking any action to subject the Property to Liens under
any Environmental Law.

 

(iv)        There
have been no material environmental investigations, studies, audits, reviews or other analyses conducted by or that are in the
possession of Borrower in relation to the Property that have not been made available to Lender.

 

Section 4.29.        Assessments.
Borrower has not received written notice of any pending or, to Borrower’s knowledge, proposed special or other assessments
for public improvements or otherwise affecting the Property, nor are there any contemplated improvements to the Property that
may result in such special or other assessments. No extension of time for assessment or payment by Borrower of any federal, state
or local tax has been requested in writing by Borrower.

 

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Section 4.30.        No
Joint Assessment. Borrower has not suffered, permitted or initiated the joint assessment
of the Property (i) with any other real property constituting a separate tax lot, or (ii) with any personal property,
or any other procedure whereby the Lien of any Taxes that may be levied against such other real property or personal property
shall be assessed or levied or charged to the Property as a single Lien.

 

Section 4.31.        Separate
Lots. No portion of the Property is part of a tax lot that also includes any real
property that is not Collateral.

 

Section 4.32.        Permits;
Certificate of Occupancy. Borrower has obtained all material Permits necessary
for the present and contemplated use and operation of the Property. The uses being made of the Property are in conformity in all
material respects with the certificate of occupancy and/or material Permits for the Property and any other material restrictions
or covenants affecting the Property, if any.

 

Section 4.33.        Flood
Zone. None of the improvements on the Property is located in an area identified
by the Federal Emergency Management Agency or the Federal Insurance Administration as a “100 year flood plain” or
as having special flood hazards (including Zones A and V), or, to the extent that any portion of the Property is located in such
an area, the Property is covered by flood insurance meeting the requirements set forth in Section 5.15(a)(ii).

 

Section 4.34.        Security
Deposits. Borrower is in compliance in all material respects with all Legal Requirements
relating to security deposits.

 

Section 4.35.        Intentionally
Omitted.

 

Section 4.36.        Insurance.
Borrower has obtained insurance policies reflecting the insurance coverages, amounts and other requirements set forth in this
Agreement. All premiums on such insurance policies required to be paid as of the Closing Date have been paid for the current policy
period. To Borrower’s knowledge as to Persons other than Borrower, no Person, including Borrower, has done, by act or omission,
anything that would impair the coverage of any such policy.

 

Section 4.37.        Intentionally
Omitted. .

 

Section 4.38.        Estoppel
Certificates. Borrower has requested estoppel certificates from each Tenant on
the form heretofore agreed by Lender and has delivered to Lender true and complete copies of each estoppel certificate received
back from any Tenant prior to the Closing Date.

 

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Section 4.39.        Federal
Trade Embargos. Guarantor and each Required SPE is in compliance with all Federal
Trade Embargos in all material respects. To Borrower’s knowledge, no Embargoed Person owns any direct or indirect equity
interest in any Required SPE. To Borrower’s knowledge, no Tenant at the Property is identified on the OFAC List. Borrower
has implemented procedures, and will consistently apply those procedures throughout the term of the Loan, to ensure that the foregoing
representations and warranties remain true and correct in all material respects during the term of the Loan. The representations
and warranties set forth in this Section are made only to Borrower’s knowledge with respect to the direct and/or indirect
ownership of any shares of stock in NY REIT.

 

Section 4.40.        Survival.
All of the representations of Borrower set forth in this Agreement and in the other Loan Documents shall survive for so long as
any portion of the Indebtedness is outstanding. All representations, covenants and agreements made by Borrower 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. On the date of any Securitization, on not less than five (5) Business Days’
prior written notice, Borrower shall deliver to Lender a certification (x) confirming that all of the representations contained
in this Agreement are true and correct as of the date of such Securitization, or (y) otherwise specifying any changes in or qualifications
to such representations as of such date as may be necessary to make such representations consistent with the facts as they exist
on such date.

 

ARTICLE
V

 

AFFIRMATIVE COVENANTS

 

Borrower covenants and agrees as follows:

 

Section 5.1.          Existence;
Licenses. Each Required SPE shall do or cause to be done all things necessary to
remain in existence. Borrower shall do or cause to be done all things necessary to preserve, renew and keep in full force and
effect all rights, licenses, Permits, franchises, certificates of occupancy, consents, approvals and other agreements reasonably
necessary for the continued use and operation of the Property. Each Required SPE shall deliver to Lender a copy of each amendment
or other modification to any of its organizational documents promptly after the execution thereof. Each Required SPE shall at
all times elect to be treated for tax purposes as a “disregarded entity” that is not taxable as a corporation for
U.S. federal tax purposes.

 

Section 5.2.          Maintenance
of Property.

 

(a)          Borrower
shall cause the Property to be maintained in good and safe working order and repair, reasonable wear and tear excepted, and in
keeping with the condition and repair of properties of a similar use, value, age, nature and construction. Borrower shall not use,
maintain or operate the Property in any manner that constitutes a public or private nuisance or that makes void, voidable, or cancelable
the premium of, any insurance then in force with respect thereto. Subject to Section 6.13, no improvements or equipment
located at or on the Property shall be removed, demolished or materially altered without the prior written consent of Lender (except
for replacement of equipment in the ordinary course of Borrower’s business with items of the same utility and of equal or
greater value and sales of obsolete equipment no longer needed for the operation of the Property) which consent shall not be unreasonably
withheld, conditioned or delayed, and Borrower shall from time to time make, or cause to be made, all reasonably necessary and
desirable repairs, renewals, replacements, betterments and improvements to the Property. Borrower shall not make any change in
the use of the Property that would materially increase the risk of fire or other hazard arising out of the operation of the Property,
or do or permit to be done thereon anything that may in any way impair the value of the Property in any material respect or the
Lien of the Mortgage or otherwise cause or reasonably be expected to result in a Material Adverse Effect. Borrower shall not install
or permit to be installed on the Property any underground storage tank. Borrower shall not, without the prior written consent of
Lender, permit any drilling or exploration for or extraction, removal, or production of any minerals from the surface or the subsurface
of the Property, regardless of the depth thereof or the method of mining or extraction thereof.

 

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(b)          Borrower
shall perform to completion all Approved Base Building Work in a good and workmanlike manner and in accordance with Schedule
I and the Approved Annual Budget (if applicable).

 

Section 5.3.          Compliance
with Legal Requirements. Borrower shall comply with, in all material respects,
and shall cause the Property to comply with and be operated, maintained, repaired and improved in compliance with, all Legal Requirements,
Insurance Requirements and all material contractual obligations by which Borrower is legally bound.

 

Section 5.4.          Impositions
and Other Claims. Subject to Lender’s obligations set forth in Section
3.4(d) so long as no Event of Default is continuing, Borrower shall pay and discharge all taxes, assessments and governmental
charges levied upon it, its income and its assets as and when such taxes, assessments and charges are due and payable, as well
as all lawful claims for labor, materials and supplies or otherwise, subject to any rights to contest contained in the definition
of Permitted Encumbrances. Borrower shall file all federal, state and local tax returns and other reports that it is required
by law to file. If any law or regulation applicable to Lender, any Note, any of the Collateral or the Mortgage is enacted that
deducts from the value of property for the purpose of taxation any Lien thereon, or imposes upon Lender the payment of the whole
or any portion of the taxes or assessments or charges or Liens required by this Agreement to be paid by Borrower, or changes in
any way the laws or regulations relating to the taxation of mortgages or security agreements or debts secured by mortgages or
security agreements or the interest of the mortgagee or secured party in the property covered thereby, or the manner of collection
of such taxes, so as to affect the Mortgage, the Indebtedness or Lender, then Borrower, upon demand by Lender, shall pay such
taxes, assessments, charges or Liens, or reimburse Lender for any amounts paid by Lender. Following any such demand, Borrower
shall have the right, upon 30 days advance written notice to Lender, to repay the Indebtedness in full (but not in part) without
the payment of any Spread Maintenance Premium, prepayment premium or prepayment fee. In addition, if in the reasonable opinion
of Lender’s counsel it would be unlawful to require Borrower to make such payment or the making of such payment might result
in the imposition of interest beyond the maximum amount permitted by applicable law, Lender may elect to declare all of the Indebtedness
to be due and payable 90 days from the giving of written notice by Lender to Borrower without the payment of any Spread Maintenance
Premium. prepayment premium, or prepayment fee.

 

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Section 5.5.          Access
to Property. Subject to the rights of Tenants pursuant to their Leases, Borrower
shall permit agents, representatives and employees of Lender and the Servicer to enter and inspect the Property or any portion
thereof, and/or inspect, examine, audit and copy the books and records of Borrower (including all recorded data of any kind or
nature, regardless of the medium of recording), at such reasonable times as may be requested by Lender upon reasonable advance
notice. If Lender shall determine in its reasonable discretion that an Event of Default exists, the reasonable, out-of-pocket
cost of such inspections, examinations, copying or audits shall be borne by Borrower, including the cost of all follow up or additional
investigations, audits or inquiries deemed reasonably necessary by Lender. The cost of such inspections, examinations, audits
and copying, if not paid for by Borrower following demand, may be added to the Indebtedness and shall bear interest thereafter
until paid at the Default Rate.

 

Section 5.6.          Cooperate
in Legal Proceedings. Except with respect to any claim by Borrower against Lender,
Borrower shall cooperate fully with Lender with respect to any proceedings before any Governmental Authority that may in any material
way affect the rights of Lender hereunder or under any of the Loan Documents and, in connection therewith, Lender may, at its
election, participate or designate a representative to participate in any such proceedings.

 

Section 5.7.          Leases.

 

(a)          Borrower
shall furnish Lender with executed copies of all Leases. All new Leases and renewals or amendments of Leases must (i) be entered
into on an arms-length basis with Tenants that are not Affiliates of Borrower and whose identity and creditworthiness is appropriate
for tenancy in property of comparable quality, (ii) provide for rental rates and other economic terms that, taken as a whole, are
at least equivalent to then-existing market rates, based on the applicable market, and otherwise contain terms and conditions that
are commercially reasonable, (iii) have an initial term of not more than 10 years, (iv) not reasonably be expected to result in
a Material Adverse Effect and (v) be subject and subordinate to the Mortgage and contain provisions for the agreement by the Tenant
thereunder to attorn to Lender and any purchaser at a foreclosure sale subject to Lender’s agreement not to disturb such
Tenant’s use of the applicable demised premises absent an event of default by such Tenant under its applicable Lease, such
attornment to be self-executing and effective upon acquisition of title to the Property by any purchaser at a foreclosure sale.
Lender, at the request of Borrower (and at Borrower’s sole cost and expense), shall enter into a subordination, attornment
and non-disturbance agreement on Lender’s then standard form (with such modifications thereto as may be reasonably acceptable
to Lender) or on such other form reasonably satisfactory to Lender and Borrower, with respect to any Major Lease entered into after
the Closing Date that expressly requires the delivery of a subordination, attornment and non-disturbance agreement.

 

(b)          Any
Lease that does not conform to the standards set forth in Section 5.7(a) shall be subject to the prior written consent of
Lender, which consent shall not be unreasonably withheld, delayed or conditioned. In addition, all new Leases that are Major Leases,
and all terminations, renewals and amendments of Major Leases, and any surrender of rights under any Major Lease (except in accordance
with the terms of such Major Lease), shall be subject to the prior written consent of Lender, which consent shall not be unreasonably
withheld, delayed or conditioned. With respect to every consent or approval or waiver of the Lender required or requested under
this Section 5.7(b), such consent shall be deemed given if the following conditions are met:

 

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(i)          no
Event of Default shall have occurred and be continuing (either at the date of any notices specified below or as of the effective
date of any deemed approval);

 

(ii)         Borrower
shall have sent Lender an email request for approval with respect to such matter to the Deemed Consent Notice Parties and otherwise
in accordance with the applicable terms and conditions hereof (the “Initial Notice”), which such Initial Notice
shall have been (A) accompanied by any and all required information and documentation relating thereto as may be reasonably required
in order to approve or disapprove such matter (the “Approval Information”) and (B) marked in bold lettering
with the following language: “LENDER’S RESPONSE IS REQUIRED WITHIN SEVEN (7) BUSINESS DAYS OF RECEIPT OF THIS NOTICE
PURSUANT TO THE TERMS OF A LOAN AGREEMENT BETWEEN THE UNDERSIGNED AND LENDER” and the subject line containing the Initial
Notice shall have been marked “PRIORITY-DEEMED APPROVAL MAY APPLY”;

 

(iii)        Lender
shall have failed to approve or disapprove the request set forth in the Initial Notice within the aforesaid time-frame;

 

(iv)        Borrower
shall have sent Lender an email request for approval with respect to such matter to the Deemed Consent Notice Parties and otherwise
in accordance with the applicable the terms and conditions hereof (the “Second Notice”), which such Second Notice
shall have been (A) accompanied by the Approval Information and (B) marked in bold lettering with the following language: “LENDER’S
RESPONSE IS REQUIRED WITHIN FIVE (5) BUSINESS DAYS OF RECEIPT OF THIS NOTICE PURSUANT TO THE TERMS OF A LOAN AGREEMENT BETWEEN
THE UNDERSIGNED AND LENDER” and the subject line containing the Second Notice shall have been marked “PRIORITY-DEEMED
APPROVAL MAY APPLY”; and

 

(v)         Lender
shall have failed to approve or disapprove the request set forth in the Second Notice within the aforesaid time-frame.

 

(c)          Borrower
shall (i) observe and punctually perform all the material obligations imposed upon the lessor under the Leases, including
satisfaction of all Unfunded Obligations; (ii) enforce all of the material terms, covenants and conditions contained in the
Leases on the part of the lessee thereunder to be observed or performed, short of termination thereof, except that Borrower may
terminate any Lease following a material default thereunder by the respective Tenant; (iii) not collect any of the rents thereunder
more than one month in advance; (iv) not execute any assignment of lessor’s interest in the Leases or associated rents
other than the assignment of rents and leases under the Mortgage; (v) not cancel or terminate any guarantee of any of the
Major Leases without the prior written consent of Lender, which consent shall not be unreasonably withheld, delayed or conditioned;
and (vi) not permit any subletting of any space covered by a Lease or an assignment of the Tenant’s rights under a Lease,
except in strict accordance with the terms of such Lease. Borrower shall deliver to each new Tenant a Tenant Notice upon execution
of such Tenant’s Lease, and promptly thereafter deliver to Lender a copy thereof and evidence of such Tenant’s receipt
thereof.

 

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(d)          Security
deposits of Tenants under all Leases shall be held in compliance with Legal Requirements and any provisions in Leases relating
thereto. Borrower shall maintain books and records of sufficient detail to identify all security deposits of Tenants separate and
apart from any other payments received from Tenants. Subject to Legal Requirements, any bond or other instrument held by Borrower
in lieu of cash security shall name Lender as payee or mortgagee thereunder or be fully assignable to Lender. Borrower hereby pledges
to Lender each such bond or other instrument as security for the Indebtedness. Upon the occurrence of an Event of Default, Borrower
shall, upon Lender’s request, deposit with Lender in an Eligible Account pledged to Lender an amount equal to the aggregate
security deposit of the Tenants (and any interest theretofore earned on such security deposits and actually received by Borrower),
and any such bonds, that Borrower had not returned to the applicable Tenants or applied in accordance with the terms of the applicable
Lease (and failure to do so shall constitute a misappropriation of funds pursuant to Section 9.19(b)).

 

(e)          Borrower
shall promptly deliver to Lender a copy of each written notice from a Tenant under any Major Lease claiming that Borrower is in
default in the performance or observance of any of the material terms, covenants or conditions thereof to be performed or observed
by Borrower. Borrower shall use commercially reasonable efforts to provide in each Major Lease executed after the Closing Date
to which Borrower is a party that any Tenant delivering any such notice shall send a copy of such notice directly to Lender.

 

Section 5.8.          Plan
Assets, etc. Borrower will do, or cause to be done, all things necessary to ensure
that it will not be deemed to hold Plan Assets at any time; provided, however, that Borrower shall not fail to satisfy this requirement
by reason of any use of Plan Assets by Lender to fund, acquire or hold an interest in the Loan (or any portion thereof).

 

Section 5.9.          Further
Assurances. Borrower shall, at Borrower’s sole cost and expense, from time
to time as reasonably requested by Lender, execute, acknowledge, record, register, file and/or deliver to Lender such other instruments,
agreements, certificates and documents (including amended or replacement mortgages), and Borrower hereby consents to the filing
by Lender of any Uniform Commercial Code financing statements, in each case as may reasonably be required to confirm, perfect
and maintain the Liens securing or intended to secure the obligations of Borrower and the rights of Lender under the Loan Documents
and do and execute all 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 may be reasonably required to perfect and maintain
the Liens. Upon foreclosure, the appointment of a receiver or any other relevant action, Borrower shall, at its sole cost and
expense, cooperate fully and completely to effect the assignment or transfer of any license, permit, agreement or any other right
necessary or useful to the operation of the Collateral. Upon receipt of an affidavit of Lender as to the loss, theft, destruction
or mutilation of any Note and the indemnification by Lender of Borrower in connection therewith, Borrower will issue, in lieu
thereof, a replacement Note in the same principal amount thereof and in the form thereof.

 

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Section 5.10.         Management
of Collateral.

 

(a)          The
Property shall be managed at all times by an Approved Property Manager pursuant to an Approved Management Agreement. Pursuant to
the Subordination of Property Management Agreement, the Approved Property Manager shall agree that its Approved Management Agreement
and all fees thereunder (including any incentive fees) are subject and subordinate to the Indebtedness. Borrower may from time
to time appoint an Approved Property Manager to manage the Property pursuant to an Approved Management Agreement, provided that
(i) no Event of Default is then continuing, (ii) Lender receives at least 30 days’ prior written notice of same, (iii) such
successor manager shall execute and deliver to Lender for Lender’s benefit a Subordination of Property Management Agreement
in form and substance reasonably satisfactory to Lender, and (iv) if such Approved Property Manager is an Affiliate of Borrower,
Borrower shall deliver to Lender a new nonconsolidation opinion reasonably acceptable to Lender or a modification to the Nonconsolidation
Opinion, in either case with respect to such Approved Property Manager and new management agreement. The per annum fees of the
Approved Property Manager (including any incentive fees) shall not, at any time, exceed the Maximum Management Fee.

 

(b)          Borrower
shall cause each Approved Property Manager (including any successor Approved Property Manager) to maintain at all times worker’s
compensation insurance as required by Governmental Authorities.

 

(c)          Borrower
shall notify Lender in writing of any default of Borrower or the Approved Property Manager under the Approved Management Agreement,
after the expiration of any applicable cure periods, of which Borrower has actual knowledge. Lender shall have the right, after
reasonable notice to Borrower and in accordance with the Subordination of Management Agreement, to cure defaults of Borrower under
the Approved Management Agreement. Any out-of-pocket expenses incurred by Lender to cure any such default shall constitute a part
of the Indebtedness and shall be due from Borrower upon demand by Lender.

 

(d)          In
the event that (i) an Event of Default shall be continuing, (ii) any foreclosure, conveyance in lieu of foreclosure or other similar
transaction following an Event of Default shall have occurred, (iii) a material default by the Approved Property Manager under
the Approved Management Agreement (after the expiration of any applicable notice and/or cure periods) shall be continuing, (iv)
the Approved Property Manager files or is the subject of a petition in bankruptcy, (v) a trustee or receiver is appointed for the
Approved Property Manager’s assets or the Approved Property Manager makes an assignment for the benefit of creditors, or
(vi) the Approved Property Manager is adjudicated insolvent, then, in any such case, Lender may, in its sole discretion, require
Borrower to terminate the Approved Management Agreement and require Borrower to engage an Approved Property Manager reasonably
approved by Lender to serve as replacement Approved Property Manager pursuant to an Approved Management Agreement.

 

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Section 5.11.         Notice
of Material Event. Borrower shall give Lender prompt notice (containing reasonable
detail) of (i) any material change in the financial or physical condition of the Property, as reasonably determined by Borrower,
including the termination or cancellation of any Major Lease and the termination or cancellation of terrorism or other insurance
required by this Agreement, (ii) any notice from the Approved Property Manager, to the extent such notice relates to a matter
that could reasonably be expected in Borrower’s reasonable opinion to result in a Material Adverse Effect, (iii) any litigation
or governmental proceedings pending or threatened in writing against Borrower or the Property that is reasonably expected to result
in a Material Adverse Effect, (iv) the insolvency or bankruptcy filing of any Required SPE or Guarantor or, to the knowledge of
Borrower, an Affiliate of any of the foregoing, (v) any Mezzanine Loan Default or Mezzanine Loan Event of Default of which it
is aware and (vi) any other circumstance or event that could reasonably be expected in Borrower’s reasonable opinion to
result in a Material Adverse Effect of which it is aware.

 

Section 5.12.         Annual
Financial Statements.

 

(a)          As
soon as available, and in any event within 120 days after the close of each Fiscal Year, Borrower shall furnish to Lender, in an
Excel spreadsheet file in electronic format (which may be via an intralinks site at Borrower’s sole cost and expense), or,
in the case of predominantly text documents, in Adobe pdf format, annual unaudited financial statements of Borrower, including
a balance sheet and operating statement of Borrower as of the end of such year, together with related statements of operations,
which statements shall be accompanied by an Officer’s Certificate certifying that the same are true, correct and complete
and were prepared in accordance with GAAP applied on a consistent basis. Together with Borrower’s annual financial statements,
Borrower shall furnish to Lender, in an Excel spreadsheet file in electronic format (which may be via an intralinks site at Borrower’s
sole cost and expense), or, in the case of predominantly text documents, in Adobe pdf format:

 

(i)           then
current rent roll, Tenant sales reports and occupancy reports; and

 

(ii)          such
other information as Lender shall reasonably request and to the extent the same is in Borrower’s possession or otherwise
regularly prepared by Borrower in the ordinary course.

 

(b)          Borrower
shall have a one-time right, without Lender’s consent, to change its Fiscal Year (and corresponding Fiscal Quarters) upon
not less than 60 days prior written notice to Lender; provided that the Fiscal Quarter and Fiscal Year shall in all cases be 3
months and 12 months, respectively; provided, further, that notwithstanding such change, Borrower shall deliver the interim financial
statements and other information required by Section 5.13 for the Fiscal Quarters theretofore in effect at the time of such
change in Borrower’s Fiscal Year.

 

Section 5.13.         Quarterly
Financial Statements. As soon as available, and in any event within 45 days after
the end of each Fiscal Quarter (including year-end), Borrower shall furnish to Lender, in an Excel spreadsheet file in electronic
format (which may be via an intralinks site at Borrower’s sole cost and expense), or, in the case of predominantly text
documents, in Adobe pdf format, quarterly and year-to-date unaudited financial statements, prepared for such fiscal quarter with
respect to Borrower, including a balance sheet and operating statement of Borrower as of the end of such Fiscal Quarter, together
with related statements of operations, setting forth in comparative form the corresponding figures for the same period for the
preceding fiscal year, which statements shall be accompanied by an Officer’s Certificate certifying that the same are true,
correct and complete and were prepared in accordance with GAAP applied on a consistent basis, subject to changes resulting from
normal year-end adjustments. Each such quarterly report shall be accompanied by the following, in an Excel spreadsheet file in
electronic format (which may be via an intralinks site at Borrower’s sole cost and expense), or, in the case of predominantly
text documents, in Adobe pdf format:

 

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(i)          a
statement in reasonable detail that calculates In-Place NOI for each of the Fiscal Quarters in the Test Period ending in such Fiscal
Quarter, in the case of each such Fiscal Quarter, ending at the end thereof;

 

(ii)         copies
of each of the Leases signed during such quarter;

 

(iii)        then
current rent roll, Tenant sales reports and occupancy reports;

 

(iv)        a
reconciliation report of the actual costs with respect to Approved Costs paid in the prior calendar quarter against such costs
included in the Approved Future Funding Budget (each such report, an “Approved Costs Reconciliation Report”),
which report shall be accompanied by an Officer’s Certificate certifying that such report is true, complete and correct in
all material respects; and

 

(v)         such
other information as Lender shall reasonably request and to the extent the same is in Borrower’s possession or otherwise
regularly prepared by Borrower in the ordinary course.

 

Section 5.14.         Monthly
Financial Statements.

 

(a)          During
the continuance of an Event of Default or Cash Flow Sweep Period, Borrower shall furnish within 45 days after the end of each calendar
month (other than the calendar month immediately following the final calendar month of any Fiscal Year or Fiscal Quarter), in an
Excel spreadsheet file in electronic format (which may be via an intralinks site at Borrower’s sole cost and expense), or,
in the case of predominantly text documents, in Adobe pdf format, monthly and year-to-date unaudited financial statements prepared
for the applicable month with respect to Borrower, including a balance sheet and operating statement as of the end of such month,
together with related statements of income, setting forth in comparative form the corresponding figures for the same period for
the preceding fiscal year and for those set forth in the Annual Budget, which statements shall be accompanied by an Officer’s
Certificate certifying that the same are true, correct and complete and were prepared in accordance with GAAP applied on a consistent
basis, subject to changes resulting from normal year-end adjustments. Each such monthly report shall be accompanied by the following:

 

(i)          then
current rent roll, occupancy and leasing status reports; and

 

(ii)         An
Approved Costs Reconciliation Report for the prior calendar month, which report shall be accompanied by an Officer’s Certificate
certifying that such report is true, complete and correct in all material respects; and

 

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(iii)        such
other information as Lender shall reasonably request and to the extent the same is in Borrower’s possession or otherwise
regularly prepared by Borrower in the ordinary course.

 

(b)          If
Borrower fails to provide to Lender those financial statements and other information specified in Sections 5.12, 5.13
and this Section 5.14 that are required to calculate Debt Yield (i) within five (5) Business Days after Borrower receives
written notice of Borrower's failure to deliver such reports, then a Cash Flow Sweep Period with respect to a Debt Yield test failure
shall be deemed to have commenced for all purposes hereunder and shall continue until such failure is remedied and the financial
statements delivered to Lender evidence that no Cash Flow Sweep Period due to a Debt Yield test failure is in effect or (ii) within
ten (10) Business Days after Borrower receives written notice of Borrower's failure to timely deliver such reports, then such failure
shall, at Lender’s election, constitute an Event of Default.

 

Section 5.15.         Insurance.

 

(a)          Borrower
shall obtain and maintain with respect to the Property, for the mutual benefit of Borrower and Lender at all times, the following
policies of insurance:

 

(i)          insurance
against loss or damage by standard perils included within the classification “All Risks” or “Special Form”
Causes of Loss, including coverage for damage caused by windstorm (including named storm) and hail. Such insurance shall (A) be
in an amount equal to the full insurable value on a replacement cost basis of the Property and, if applicable, all related furniture,
furnishings, equipment and fixtures (without deduction for physical depreciation); (B) have deductibles acceptable to Lender (but
in any event not in excess of $50,000, except in the case of windstorm and earthquake coverage, which shall have deductibles not
in excess of 5% of the total insurable value of the Property); (C) be paid in full when due and payable; (D) be written on a “Replacement
Cost” basis, waiving depreciation, (E) be written on a no coinsurance form or contain an “Agreed Amount” endorsement,
waiving all coinsurance provisions; (F) include ordinance or law coverage on a replacement cost basis, with no co-insurance provisions,
containing Coverage A: “Loss Due to Operation of Law” (with a limit equal to replacement cost), Coverage B: “Demolition
Cost” and Coverage C: “Increased Cost of Construction” coverages each with limits of no less than 10% of replacement
cost or such lesser amounts as Lender may require in its sole discretion; (G) permit that the improvements and other property covered
by such insurance be rebuilt at another location in the event that such improvements and other property cannot be rebuilt at the
location on which they are situated as of the date hereof. If such insurance excludes mold, then Borrower shall implement a mold
prevention program reasonably satisfactory to Lender;

 

(ii)         if
any material portion of the Property is located in an area identified in the Federal Register by the Federal Emergency Management
Agency as having special flood hazards, flood insurance in an amount equal to the maximum limit of coverage available under the
National Flood Insurance Program, plus such additional excess limits as shall be requested by Lender, with a deductible not in
excess of $50,000;

 

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(iii)        commercial
general liability insurance, including broad form coverage of property damage, contractual liability for insured contracts and
personal injury (including bodily injury and death), to be on the so-called “occurrence” form containing minimum limits
per occurrence of not less than $1,000,000 with not less than a $2,000,000 general aggregate for any policy year (with a per location
aggregate if the Property is on a blanket policy), with a deductible not in excess of $50,000. In addition, at least $100,000,000
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 related court costs and attorneys’ fees and disbursements;

 

(iv)        rental
loss and/or business interruption insurance covering actual loss sustained during restoration from all risks required to be covered
by the insurance provided for herein, including clauses (i), (ii), (v), (vii), (viii)
and (ix) of this Section, and covering the 18 month period from the date of any Casualty and containing an extended period
of indemnity endorsement covering the 12 month period commencing on the date on which the Property has been restored, as reasonably
determined by the applicable insurer (even if the policy will expire prior to the end of such period). The amount of such insurance
shall be increased from time to time as and when the gross revenues from the Property increase;

 

(v)         insurance
for steam boilers, air conditioning equipment, high pressure piping, machinery and equipment, pressure vessels or similar apparatus
now or hereafter installed in any of the improvements (without exclusion for explosions) and insurance against loss of occupancy
or use arising from any breakdown, in such amounts as are generally available and are generally required by institutional lenders
for properties comparable to the Property, in each case, with a deductible not in excess of $50,000;

 

(vi)        worker’s
compensation insurance with respect to all employees of Borrower as and to the extent required by any Governmental Authority or
Legal Requirement and employer’s liability coverage of at least $1,000,000 (if applicable);

 

(vii)       during
any period of repair or restoration, and only if the property and liability coverage forms do not otherwise apply, commercial general
liability and umbrella liability insurance covering claims related to the repairs or restoration at the Property that are not covered
by or under the terms or provisions of the insurance provided for in Section 5.15(a)(iii) (and the insurance provided for
in Section 5.15(a)(i) shall, in addition to the requirements set forth in such Section, (1) be written in a so-called builder’s
risk completed value form or equivalent coverage, including coverage for 100% of the total costs of construction on a non-reporting
basis and against all risks insured against pursuant to clauses (i), (ii), (iv), (v), (viii)
and (ix) of Section 5.15(a) and (2) include permission to occupy the Property);

 

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(viii)      if
the Property is located in seismic zone 3 or 4 and the PML/SEL is greater
than 20%, as required by Lender, earthquake insurance (A) with minimum coverage equivalent to the greater of 1.0x SUL
(scenario upper loss) and 1.5x SEL (scenario expected loss) multiplied by the full replacement cost of the building plus business
income, (B) having a deductible not in excess of 5% of the total insurable value of the Property, and (C) if the Property is legally
nonconforming under applicable zoning ordinances and codes, containing ordinance of law coverage in amounts as required by Lender;

 

(ix)         so
long as the Terrorism Risk Insurance Program Reauthorization Act of 2007 (“TRIPRA”) or a similar or subsequent
statute is in effect, terrorism insurance for foreign and domestic acts (as such terms are defined in TRIPRA or similar or subsequent
statute) in an amount equal to the full replacement cost of the Property (plus twelve months of business interruption coverage).
If TRIPRA or a similar or subsequent statute is not in effect, then provided that terrorism insurance is commercially available,
Borrower shall be required to carry terrorism insurance throughout the term of the Loan as required by the preceding sentence,
but in such event Borrower shall not be required to spend on terrorism insurance coverage more than two times the amount of the
insurance premium that is payable at such time in respect of the property and business interruption/rental loss insurance required
hereunder on a stand alone-basis (without giving effect to the cost of terrorism and earthquake components of such casualty and
business interruption/rental loss insurance), and if the cost of terrorism insurance exceeds such amount, Borrower shall purchase
the maximum amount of terrorism insurance available with funds equal to such amount. In either such case, such insurance shall
not have a deductible in excess of $50,000;

 

(x)          auto
liability coverage for all owned and non-owned vehicles, including rented and leased vehicles containing minimum limits per occurrence
of $1,000,000 (if applicable); and

 

(xi)         such
other insurance as may from time to time be reasonably requested by Lender and commonly required or carried for similar structures
similar in value, occupancy and geographical location to the Property.

 

(b)          All
policies of insurance (the “Policies”) required pursuant to this Section shall be issued by one or more insurers
having a rating of at least “A” by S&P and “A2” by Moody’s, if Moody’s rates such insurer
and is rating the Certificates, or by a syndicate of insurers through which at least 75% of the coverage (if there are 4 or fewer
members of the syndicate) or at least 60% of the coverage (if there are 5 or more members of the syndicate) is with insurers having
such ratings (provided that the first layers of coverage are from insurers rated at least “A” by S&P and “A2”
by Moody’s, if Moody’s rates such insurer and is rating the Certificates, and all such insurers shall have ratings
of not less than “BBB+” by S&P and “Baa1” by Moody’s, if Moody’s rates such insurer and
is rating the Certificates).

 

(c)          All
Policies required pursuant to this Section:

 

(i)          shall
contain deductibles that, in addition to complying with any other requirements expressly set forth in Section 5.15(a), are
approved by Lender (such approval not to be unreasonably withheld, delayed or conditioned, but subject to the requirements of each
Rating Agency) and are no larger than is customary for similar policies covering similar properties in the geographic market in
which the Property is located;

 

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(ii)         shall
be maintained throughout the term of the Loan without cost to Lender and shall name Borrower as the named insured;

 

(iii)        with
respect to casualty and rental or business interruption insurance policies, shall contain a standard noncontributory mortgagee
clause naming Lender and its successors and assigns as their interests may appear as first mortgagee and loss payee;

 

(iv)        with
respect to liability policies, except for workers compensation, employers liability and auto liability, shall name Lender and its
successors and assigns as their interests may appear as additional insureds;

 

(v)         with
respect to casualty and rental or business interruption insurance policies, shall either be written on a no coinsurance form or
contain an endorsement providing that neither Borrower nor Lender nor any other party shall be a co-insurer under such Policies;

 

(vi)        with
respect to casualty and rental or business interruption insurance policies, shall contain an endorsement or other provision providing
that Lender shall receive at least 30 days’ prior written notice of cancellation thereof(or, in the case of cancellation
due to non-payment of premium, 10 days’ prior written notice);

 

(vii)       with
respect to casualty and rental or business interruption insurance policies, shall contain an endorsement providing that no act
or negligence of Borrower or any foreclosure or other proceeding or notice of sale relating to the Property shall affect the validity
or enforceability of the insurance insofar as a mortgagee is concerned;

 

(viii)      shall
not contain provisions that would make Lender liable for any insurance premiums thereon or subject to any assessments thereunder;

 

(ix)         shall
contain a waiver of subrogation against Lender, as applicable;

 

(x)          may
be in the form of a blanket policy, provided that Borrower shall provide evidence reasonably satisfactory to Lender that the insurance
premiums for the Property are separately allocated to the Property, and such blanket policy shall provide the same protection as
would a separate Policy as reasonably determined by Lender, subject to review and reasonable approval by Lender based on the schedule
of locations and values, if requested by Lender. In any event, the limits of such blanket policy must be sufficient to maintain
coverage on a total insured value basis for all locations, including the Property, in the aggregate within a 1,000 foot radius
(the “Radius”) of the Property; and

 

(xi)         shall
otherwise be reasonably satisfactory in form and substance to Lender and shall contain such other provisions as Lender deems reasonably
necessary or desirable to protect its interests.

 

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(d)          Borrower
shall pay the premiums for all Policies as the same become due and payable. Complete copies of such Policies shall be delivered
to Lender promptly upon request. Not later than 30 days prior to the expiration date of each Policy, Borrower shall deliver to
Lender evidence, reasonably satisfactory to Lender, of its renewal. Borrower shall promptly forward to Lender a copy of each written
notice received by Borrower of any modification, reduction or cancellation of any of the Policies or of any of the coverages afforded
under any of the Policies. Within 30 days after request by Lender, Borrower shall obtain such increases in the amounts of coverage
required hereunder as may be reasonably requested by Lender, taking into consideration changes in the value of money over time,
changes in liability laws, changes in prudent customs and practices, and the like.

 

(e)          If
at any time Lender is not in receipt of written evidence that all Policies are in full force and effect when and as required hereunder,
Lender shall have the right, after notice to Borrower, to take such action as Lender deems necessary to protect its interest in
the Property, including the obtaining of such insurance coverage as Lender in its sole discretion deems appropriate (but limited
to the coverages and amounts required hereunder). All premiums, costs and expenses (including attorneys' fees and expenses) incurred
by Lender in connection with such action or in obtaining such insurance and keeping it in effect shall be paid by Borrower to Lender
upon demand and, until paid, and shall bear interest at the Default Rate.

 

(f)          In
the event of foreclosure of the Mortgage or other transfer of title to the Property in extinguishment in whole or in part of the
Indebtedness, all right, title and interest of Borrower in and to the Policies then in force with respect to the Property and all
proceeds payable thereunder shall thereupon vest in the purchaser at such foreclosure or in Lender or other transferee in the event
of such other transfer of title.

 

Section 5.16.         Casualty
and Condemnation.

 

(a)          Borrower
shall give prompt notice to Lender of any Casualty or Condemnation or of the actual or threatened commencement of proceedings that
would result in a Condemnation.

 

(b)          Lender
may participate in any proceedings for any taking by any public or quasi-public authority accomplished through a Condemnation or
any transfer made in lieu of or in anticipation of a Condemnation, to the extent permitted by law. Upon Lender’s request,
Borrower shall deliver to Lender all instruments reasonably requested by it to permit such participation. Borrower shall, at its
sole cost and expense, diligently prosecute any such proceedings, and shall consult with Lender, its attorneys and experts, and
cooperate with them in the carrying on or defense of any such proceedings. Borrower shall not consent or agree to a Condemnation
or action in lieu thereof without the prior written consent of Lender in each instance, which consent shall not be unreasonably
withheld, delayed or conditioned in the case of a taking of an immaterial portion of the Property.

 

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(c)          Lender
may (x) jointly with Borrower settle and adjust any claims, (y) during the continuance of an Event of Default, settle
and adjust any claims without the consent or cooperation of Borrower, or (z) allow Borrower to settle and adjust any claims;
except that if no Event of Default is continuing, Borrower may settle and adjust claims aggregating not in excess of the Threshold
Amount if such settlement or adjustment is carried out in a competent and timely manner, but Lender shall be entitled to collect
and receive any and all Loss Proceeds to the extent provided herein. The reasonable expenses incurred by Lender in the adjustment
and collection of Loss Proceeds shall become part of the Indebtedness and shall be reimbursed by Borrower to Lender upon demand
therefor.

 

(d)          All
Loss Proceeds from any Casualty or Condemnation shall be immediately deposited into the Loss Proceeds Account (monthly rental loss/business
interruption proceeds to be initially deposited into the Loss Proceeds Account and subsequently deposited into the Clearing Account
in installments as and when the lost rental income covered by such proceeds would have been payable). Following the occurrence
of a Casualty, Borrower, subject to receipt of the Loss Proceeds, shall in a reasonably prompt manner proceed to restore, repair,
replace or rebuild the Property to be of at least equal value and of substantially the same character as prior to the Casualty,
all in accordance with the terms hereof applicable to Alterations; provided that Borrower’s obligations under this Section
5.16(d) shall not be limited by the sufficiency of Loss Proceeds for the cost of such restoration. If any Condemnation or Casualty
occurs as to which, in the reasonable judgment of Lender:

 

(i)          in
the case of a Casualty, the cost of restoration would not exceed 25% of the Loan Amount and the Casualty does not render untenantable,
or result in the cancellation of Leases covering, more than 25% of the gross rentable area of the Property;

 

(ii)         in
the case of a Condemnation, the Condemnation does not render untenantable, or result in the cancellation of Leases covering, more
than 25% of the gross rentable area of the Property;

 

(iii)        restoration
of the Property is reasonably expected to be completed prior to the expiration of rental interruption insurance and at least six
months prior to the Maturity Date;

 

(iv)        after
such restoration, the fair market value of the Property is reasonably expected to equal at least the fair market value of the Property
immediately prior to such Casualty (assuming the affected portion of the Property is relet); and

 

(v)         all
necessary approvals and consents from Governmental Authorities will be obtained to allow the rebuilding and re-occupancy of the
Property;

 

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or if Lender otherwise elects to allow Borrower to restore the
Property, then, provided no Event of Default is continuing, the Loss Proceeds after receipt thereof by Lender and reimbursement
of any reasonable expenses incurred by Lender in connection therewith shall be applied to the cost of restoring, repairing, replacing
or rebuilding the Property or part thereof subject to the Casualty or Condemnation, in the manner set forth below (and Borrower
shall commence, as promptly and diligently as practicable, to prosecute such restoring, repairing, replacing or rebuilding of the
Property in a workmanlike fashion and in accordance with applicable law to a status at least equivalent to the quality and character
of the Property immediately prior to the Condemnation or Casualty). Provided that no Event of Default shall have occurred and be
then continuing, Lender shall disburse such Loss Proceeds to Borrower upon Lender’s being furnished with (i) evidence
reasonably satisfactory to it of the estimated cost of completion of the restoration, (ii) if the cost of completion of the
restoration plus payment of debt service on the Loan during the period of restoration exceeds the amount then contained in the
Loss Proceeds Account, funds in an amount equal to such excess, which funds shall be remitted into the Loss Proceeds Account as
additional Collateral for the Loan, and (iii) such architect’s certificates, waivers of lien, contractor’s sworn
statements, title insurance endorsements, bonds, plats of survey and such other evidences of cost, payment and performance as Lender
may reasonably request; and Lender may, in any event, require that all plans and specifications for restoration reasonably estimated
by Lender to exceed the Threshold Amount be submitted to and approved by Lender prior to commencement of work (which approval shall
not be unreasonably withheld, delayed or conditioned). If Lender reasonably estimates that the cost to restore will exceed the
Threshold Amount, Lender may retain a local construction consultant reasonably approved by Borrower to inspect such work and review
Borrower’s request for payments and Borrower shall, within thirty (30) days after demand therefor by Lender, reimburse Lender
for the reasonable fees and expenses of such consultant (which fees and expenses shall constitute Indebtedness). No payment shall
exceed 90% of the value of the work performed from time to time until such time as 50% of the restoration (calculated based on
the anticipated aggregate cost of the work) has been completed, and amounts retained prior to completion of 50% of the restoration
shall not be paid prior to the final completion of the restoration. Funds other than Loss Proceeds shall be disbursed prior to
disbursement of such Loss Proceeds, and at all times the undisbursed balance of such proceeds remaining in the Loss Proceeds Account,
together with any additional funds irrevocably and unconditionally deposited therein or irrevocably and unconditionally committed
for that purpose, shall be at least sufficient in the reasonable judgment of Lender to pay for the cost of completion of the restoration
free and clear of all Liens or claims for Lien.

 

(e)          Borrower
shall cooperate with Lender in obtaining for Lender the benefits of any Loss Proceeds lawfully or equitably payable to Lender in
connection with the Property. Lender shall be reimbursed for any expenses reasonably incurred in connection therewith (including
reasonable attorneys’ fees and disbursements, and, if reasonably necessary to collect such proceeds, the expense of an Appraisal
on behalf of Lender) out of such Loss Proceeds or, if insufficient for such purpose, by Borrower.

 

(f)          If
Borrower is not entitled to apply Loss Proceeds toward the restoration of the Property pursuant to Section 5.16(d) and Lender
elects not to permit such Loss Proceeds to be so applied, such Loss Proceeds shall be applied on the first Payment Date following
such election to the prepayment of the Principal Indebtedness and shall be accompanied by interest through the end of the applicable
Interest Accrual Period (calculated as if the amount prepaid were outstanding for the entire Interest Accrual Period) without payment
of the Spread Maintenance Premium or any other penalty or fee. If any Note has been bifurcated into multiple Notes or Note Components
pursuant to Section 1.1(c), all prepayments of the Loan made by Borrower in accordance with this Section shall be applied
to the Notes or Note Components pro rata.

 

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(g)          Notwithstanding
the foregoing provisions of this Section, if the Loan is included in a REMIC and immediately following a release of any portion
of the applicable Property from the Lien of the Loan Documents in connection with a Casualty or Condemnation the Loan would fail
to satisfy a Lender 80% Determination (taking into account the planned restoration of the Property), then Borrower shall prepay
the Principal Indebtedness in accordance with Section 5.16(f) in an amount equal to either (i) so much of the Loss Proceeds
as are necessary to cause the Lender 80% Determination to be satisfied, or if the aggregate Loss Proceeds are insufficient for
such purpose, then 100% of such Loss Proceeds, or (ii) a lesser amount, provided that Borrower delivers to Lender an opinion of
counsel, in form and substance reasonably satisfactory to Lender and delivered by counsel reasonably satisfactory to Lender, opining
that such release of Property from the Lien does not cause any portion of the Loan to cease to be a “qualified mortgage”
within the meaning of section 860G(a)(3) of the Code.

 

Section 5.17.         Annual
Budget; Approved Future Funding Budget.

 

(a)          Within
30 days of the commencement of each Fiscal Year during the term of the Loan, and within 30 days after the commencement of any Cash
Flow Sweep Period or Event of Default, Borrower shall deliver to Lender an Annual Budget for the Property for the ensuing Fiscal
Year and, promptly after preparation thereof, any subsequent revisions to the Annual Budget, which delivery shall be for informational
purposes only so long as no Cash Flow Sweep Period or Event of Default is continuing. During the continuance of any Cash Flow Sweep
Period or Event of Default, such Annual Budget and any revisions thereto shall be subject to Lender’s reasonable approval
(the Annual Budget, as so approved, the “Approved Annual Budget”). Borrower shall not amend any Approved Annual
Budget more than once in any 30-day period. For so long as Lender shall have not yet approved (if required) any Annual Budget or
any revisions thereto, the Annual Budget in effect prior to any such request for approval shall remain in effect.

 

(b)          The
initial Approved Future Funding Budget for the Property is attached hereto as Schedule H. Any revisions thereto shall be
subject to Lender’s approval, which approval shall not be unreasonably withheld so long as no Event of Default is continuing.
Borrower shall not seek Lender’s consent for any amendments to the Approved Future Funding Budget more than once in any 30-day
period.

 

Section 5.18.         Venture
Capital Operating Companies; Nonbinding Consultation. Solely to the extent that
Lender or any direct or indirect holder of an interest in the Loan must qualify as a “venture capital operating company”
(as defined in Department of Labor Regulation 29 C.F.R. § 2510.3-101), Lender shall have the right to consult with and advise
Borrower regarding significant business activities and business and financial developments of Borrower, provided that any such
advice or consultation or the result thereof shall be completely nonbinding on Borrower.

 

Section 5.19.         Compliance
with Encumbrances and Material Agreements. Borrower covenants and agrees as follows:

 

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(i)          Borrower
shall comply in all material respects with all material terms, conditions and covenants of each Material Agreement and each material
Permitted Encumbrance, including any reciprocal easement agreement, ground lease, declaration of covenants, conditions and restrictions,
and any condominium arrangements.

 

(ii)         Borrower
shall promptly deliver to Lender a true and complete copy of each and every notice of default received by Borrower with respect
to any material obligation of Borrower under the provisions of any Material Agreement and/or Permitted Encumbrance.

 

(iii)        Borrower
shall deliver to Lender copies of any written notices of default or event of default relating to any Material Agreement and/or
Permitted Encumbrance served by Borrower.

 

(iv)        Without
the prior written consent of Lender, not to be unreasonably withheld, conditioned or delayed, Borrower shall not grant or withhold
any material consent, approval or waiver under any Material Agreement or Permitted Encumbrance unless no Event of Default is continuing
and the same would not be reasonably likely in Borrower’s reasonable opinion to have a Material Adverse Effect.

 

(v)         Borrower
shall deliver to each other party to any Permitted Encumbrance and any Material Agreement notice of the identity of Lender and
each assignee of Lender of which Borrower is aware if such notice is provided for thereunder.

 

(vi)        Borrower
shall use commercially reasonable efforts to enforce, short of termination thereof, the performance and observance of each and
every material term, covenant and provision of each Material Agreement and Permitted Encumbrance to be performed or observed, if
any.

 

Section 5.20.         Prohibited
Persons. No Required SPE or any of their direct or indirect equityholders shall
(i) knowingly conduct any business, or engage in any transaction or dealing, with any Embargoed Person, including the making or
receiving of any contribution of funds, goods, or services, to or for the benefit of a Embargoed Person, or (ii) knowingly 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 Federal Trade Embargo. Borrower shall cause the representation set forth in Section 4.39 to remain true and correct
at all times. The covenants set forth in this Section 5.20 shall not apply to the direct and/or indirect ownership of any
shares of stock in NY REIT.

 

Section 5.21.         Condominium.
From and after the consummation of a Condominium Conversion, Borrower
shall comply with each of the following:

 

(a)          Borrower
shall pay all common charges and other assessments as required by the Condominium Documents in respect of the remaining Property
and shall promptly, following demand, exhibit to Lender receipts for all such payments;

 

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(b)          Borrower
shall not, unless directed otherwise in writing by Lender, without first obtaining Lender’s prior written consent, not to
be unreasonably withheld, (i) vote for, consent to or permit to occur any modification of, or amendment to, any material provision
of the Condominium Documents; provided, however, Lender’s approval shall not be required for amendments to
the Condominium Documents containing disclosures or other provisions required to be made by Legal Requirements; (ii) in the event
of damage to or destruction of the Property, vote in opposition to a motion to repair, restore or rebuild, unless the Indebtedness
will be repaid in full pursuant to Section 5.16 or Borrower is obligated to apply Loss Proceeds toward the repayment of
the Loan pursuant to Section 5.16(d); (iii) partition or subdivide any Condominium Units, or combine any Condominium Unit
with another Condominium Unit; (iv) consent to the termination of the Condominium; or (v) vote in favor of the imposition of special
assessments for capital improvements pursuant to the Condominium Documents unless such capital improvements are otherwise permissible
or approved hereunder.

 

(c)          Borrower
shall fully and faithfully observe, keep and perform, in all material respects, each and every material requirement, condition,
covenant, agreement and provisions under the Condominium Act and the Condominium Documents on the part of Borrower to be observed,
kept and performed. Borrower shall promptly deliver to Lender a copy of any notice of default received by Borrower with respect
to any obligation of Borrower under the provisions of the Condominium Documents or the Condominium Act.

 

ARTICLE
VI

 

NEGATIVE COVENANTS

 

Section 6.1.          Liens
on the Collateral. No Required SPE shall permit or suffer the existence of any
Lien on any of its assets, other than Permitted Encumbrances.

 

Section 6.2.          Ownership.
Borrower shall not own any assets other than the Property and related personal property and fixtures located therein or used in
connection therewith.

 

Section 6.3.          Transfer;
Prohibited Change of Control. Borrower shall not Transfer any Collateral other
than in compliance with Section 2.3 and other than the replacement or other disposition of personal property and fixtures
in the ordinary course of business, and Borrower shall not hereafter file a declaration of condominium with respect to the Property
(except in connection with the release of the Retail Unit in accordance with Section 2.3(d)). No Transfer or pledge of
any direct or indirect equity interest in Borrower that would constitute a Prohibited Change of Control or Prohibited Pledge shall
occur.

 

Section 6.4.          Debt.
Borrower shall not have any Debt, other than Permitted Debt.

 

Section 6.5.          Dissolution;
Merger or Consolidation. No Required SPE shall dissolve, terminate, liquidate,
merge with or consolidate into another Person.

 

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Section 6.6.          Change
in Business. Borrower shall not 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.

 

Section 6.7.          Debt
Cancellation. Borrower shall not cancel or otherwise forgive or release any material
claim or Debt owed to it by any Person, except for adequate consideration or in the ordinary course of its business.

 

Section 6.8.          Affiliate
Transactions. Borrower shall not enter into, or be a party to, any transaction
with any Affiliate of Borrower, except on terms that are intrinsically fair, commercially reasonable and substantially similar
to those that Borrower would have obtained in a comparable arm’s length transaction with an unrelated third party.

 

Section 6.9.          Misapplication
of Funds. Borrower shall not (a) distribute any Revenue or Loss Proceeds in violation
of the provisions of this Agreement (and shall promptly cause the reversal of any such distributions made in error of which Borrower
becomes aware), (b) fail to remit amounts to the Clearing Account as required by Section 3.1, (c) make any distributions
to equityholders during the continuance of a Cash Flow Sweep Period or Event of Default unless expressly permitted hereunder,
or (d) misappropriate any security deposit or portion thereof.

 

Section 6.10.         Jurisdiction
of Formation; Name. Borrower shall not change its jurisdiction of formation, its
jurisdiction of fiscal residence or name without receiving Lender’s prior written consent not to be unreasonably withheld
and promptly providing Lender such information and replacement Uniform Commercial Code financing statements and legal opinions
as Lender may reasonably request in connection therewith.

 

Section 6.11.         Modifications
and Waivers. Unless otherwise consented to in writing by Lender (which consent
shall not be unreasonably withheld, conditioned or delayed):

 

(i)          Borrower
shall not amend, modify, terminate, renew, or surrender any material rights or remedies under any Lease, or enter into any Lease,
except in compliance with Section 5.7;

 

(ii)         No
Required SPE shall terminate, amend or modify its organizational documents (including any operating agreement, limited partnership
agreement, by-laws, certificate of formation, certificate of limited partnership or certificate of incorporation) in any material
manner;

 

(iii)        Borrower
shall not terminate, amend or modify the Approved Management Agreement in any material manner; and

 

(iv)        Borrower
shall not (x) enter into any Material Agreement, or amend, modify, surrender or waive any material rights or remedies under any
Material Agreement, except, in each case, on arms-length commercially reasonable terms, (y) terminate any Material Agreement, except
for terminations in connection with a material default thereunder, or (y) default in its obligations under any Material Agreement.

 

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Section 6.12.         ERISA.

 

(a)          Borrower
shall not maintain or contribute to, or agree to maintain or contribute to, or permit any ERISA Affiliate of Borrower to maintain
or contribute to or agree to maintain or contribute to, any employee benefit plan (as defined in Section 3(3) of ERISA) subject
to Title IV or Section 302 of ERISA or Section 412 of the Code.

 

(b)          Borrower
shall not engage in a non-exempt prohibited transaction under Section 406 of ERISA, Section 4975 of the Code, or substantially
similar provisions under federal, state or local laws, rules or regulations or in any transaction that would cause any obligation
or action taken or to be taken hereunder (or the exercise by Lender of any of its rights under the Notes, this Agreement, the Mortgage
or any other Loan Document) to be a non-exempt prohibited transaction under such provisions; provided that Borrower shall not be
deemed to have breached the covenants set forth in this Section 6.12(b) by reason of the occurrence of a non-exempt prohibited
transaction resulting from Lender’s use of Plan Assets to fund, acquire or hold an interest in the Loan (or any portion thereof).

 

Section 6.13.         Alterations
and Expansions. During the continuance of any Cash Flow Sweep Period or Event of
Default, Borrower shall not incur or contract to incur any capital improvements requiring Capital Expenditures that are not consistent
with the Approved Annual Budget, Schedule I, or the Approved Future Funding Budget or as otherwise may be required pursuant
to any Lease entered into in accordance with this Agreement. Borrower shall not perform, undertake, contract to perform or consent
to any Material Alteration without the prior written consent of Lender, which consent (in the absence of an Event of Default)
shall not be unreasonably withheld, delayed or conditioned, but may be conditioned on the delivery of additional collateral in
the form of cash or cash equivalents acceptable to Lender in respect of the amount by which any such Material Alteration exceeds
the Threshold Amount. If Lender’s consent is requested hereunder with respect to a Material Alteration, Lender may retain
a construction consultant to review such request and, if such request is granted, Lender may retain a construction consultant
to inspect the work from time to time. Borrower shall, on demand by Lender, reimburse Lender for the reasonable fees and disbursements
of such consultant. With respect to every consent or approval or waiver of the Lender required or requested under this Section
6.13, such consent shall be deemed given if the following conditions are met:

 

(i)          no
Event of Default shall have occurred and be continuing (either at the date of any notices specified below or as of the effective
date of any deemed approval);

 

(ii)         Borrower
shall have sent Lender an email request for approval with respect to such matter to the Deemed Consent Notice Parties and otherwise
in accordance with the applicable terms and conditions hereof (the “Initial Notice”), which such Initial Notice
shall have been (A) accompanied by any and all required information and documentation relating thereto as may be reasonably required
in order to approve or disapprove such matter (the “Approval Information”) and (B) marked in bold lettering
with the following language: “LENDER’S RESPONSE IS REQUIRED WITHIN SEVEN (7) BUSINESS DAYS OF RECEIPT OF THIS NOTICE
PURSUANT TO THE TERMS OF A LOAN AGREEMENT BETWEEN THE UNDERSIGNED AND LENDER” and the subject line containing the Initial
Notice shall have been marked “PRIORITY-DEEMED APPROVAL MAY APPLY”;

 

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(iii)        Lender
shall have failed to approve or disapprove the request set forth in the Initial Notice within the aforesaid time-frame;

 

(iv)        Borrower
shall have submitted a second request for approval with respect to such matter to the Deemed Consent Notice Parties and otherwise
in accordance with the applicable terms and conditions hereof (the “Second Notice”), which such Second Notice
shall have been (A) accompanied by the Approval Information and (B) marked in bold lettering with the following language: “LENDER’S
RESPONSE IS REQUIRED WITHIN FIVE (5) BUSINESS DAYS OF RECEIPT OF THIS NOTICE PURSUANT TO THE TERMS OF A LOAN AGREEMENT BETWEEN
THE UNDERSIGNED AND LENDER” and the subject line containing the Second Notice shall have been marked “PRIORITY-DEEMED
APPROVAL MAY APPLY”; and

 

(v)         Lender
shall have failed to failed to approve or disapprove the request set forth in the Second Notice within the aforesaid time-frame.

 

Section 6.14.         Advances
and Investments. Borrower shall not lend money or make advances to any Person,
or purchase or acquire any stock, obligations or securities of, or any other interest in, or make any capital contribution to,
any Person, except for Permitted Investments.

 

Section 6.15.         Single-Purpose
Entity. No Required SPE shall cease to be a Single-Purpose Entity. No Required
SPE shall remove or replace any Independent Director without Cause and without providing at least two Business Days’ advance
written notice thereof to Lender and the Rating Agencies.

 

Section 6.16.         Zoning
and Uses. Borrower shall not do any of the following without the prior written
consent of Lender:

 

(i)          initiate
or support any limiting change in the permitted uses of the Property (or to the extent applicable, zoning reclassification of the
Property) or any portion thereof, seek any variance under existing land use restrictions, laws, rules or regulations (or, to the
extent applicable, zoning ordinances) applicable to the Property, or use or permit the use of the Property in a manner that would
result in the use of the Property becoming a nonconforming use under applicable land-use restrictions or zoning ordinances or that
would violate the terms of any Lease, Material Agreement or Legal Requirement (and if under applicable zoning ordinances the use
of all or any portion of the Property is a nonconforming use, Borrower shall not cause or permit such nonconforming use to be discontinued
or abandoned);

 

(ii)         impose
or consent to the imposition of any restrictive covenants, easements or encumbrances upon the Property in any manner that is reasonably
likely to have a Material Adverse Effect; provided, however, Borrower shall be permitted to impose a condominium regime on the
Property in accordance with Section 2.3(d) in connection with the release of the Retail Unit;

 

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(iii)        execute
or file any subdivision plat affecting the Property, or institute, or permit the institution of, proceedings to alter any tax lot
comprising the Property; or

 

(iv)        permit
or consent to the Property’s being used by the public or any Person in such manner as might make possible a claim of adverse
usage or possession or of any implied dedication or easement.

 

Section 6.17.         Waste.
Borrower shall not commit or permit any Waste on the Property, nor take any actions that might invalidate any insurance carried
on the Property (and Borrower shall promptly correct any such actions of which Borrower becomes aware).

 

ARTICLE
VII

DEFAULTS

 

Section 7.1.          Event
of Default. The occurrence of any one or more of the following events shall be,
and shall constitute the commencement of, an “Event of Default” hereunder (any Event of Default that has occurred
shall continue unless and until waived by Lender in writing in its sole discretion):

 

(a)          Payment.

 

(i)          Borrower
shall default in the payment when due of any principal or interest owing hereunder or under the Notes (including any mandatory
prepayment required hereunder); or

 

(ii)         Borrower
shall default, and such default shall continue for at least five (five) Business Days after notice to Borrower that such amounts
are owing, in the payment when due of fees, expenses or other amounts owing hereunder, under the Notes or under any of the other
Loan Documents (other than principal and interest owing hereunder or under the Notes).

 

(b)          Representations.
Any representation made by Borrower in any of the Loan Documents, or in any report, certificate, financial statement or other instrument,
agreement or document furnished to Lender shall have been false or misleading in any material respect (or, with respect to any
representation that itself contains a materiality qualifier, in any respect) as of the date such representation was made; provided,
however, that if (A) such misrepresentation was not intentional and is not reasonably likely to have a Material Adverse
Effect, and (B) the condition causing the representation or warranty to be false is susceptible of being cured, the same shall
be an Event of Default hereunder only if the same is not cured within thirty (30) days after written notice to Borrower from Lender;

 

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(c)          Other
Loan Documents. Any Loan Document shall fail to be in full force and effect or to convey the material Liens, rights, powers
and privileges purported to be created thereby (except to the extent caused by Lender) and Borrower shall fail to promptly comply
with Section 5.9 to remedy such failure within ten (10) Business Days after Borrower receives written notice thereof; or
a default by Borrower under any of the other Loan Documents or Material Agreements that continues beyond applicable notice and
cure periods set forth in such Loan Documents or Material Agreements, or a default by Borrower shall occur under the Approved Management
Agreement, in each case, beyond the expiration of any applicable cure period.

 

(d)          Bankruptcy,
etc.

 

(i)          Any
Required SPE or Guarantor shall commence a voluntary case concerning itself under Title 11 of the United States Code (as amended,
modified, succeeded or replaced, from time to time, the “Bankruptcy Code”);

 

(ii)         any
Required SPE or Guarantor shall commence any other voluntary proceeding under any reorganization, arrangement, adjustment of debt,
relief of creditors, dissolution, insolvency or similar law of any jurisdiction whether now or hereafter in effect relating to
such Required SPE, or shall dissolve or otherwise cease to exist;

 

(iii)        there
is commenced against any Required SPE or Guarantor an involuntary case under the Bankruptcy Code or any such other involuntary
proceeding or other insolvency or similar laws, which remains undismissed for a period of 90 days after commencement;

 

(iv)        any
Required SPE or Guarantor is adjudicated insolvent or bankrupt;

 

(v)         any
Required SPE or Guarantor suffers appointment of any custodian or the like for it or for any substantial portion of its property
and such appointment continues unchanged or unstayed for a period of 90 days after commencement of such appointment;

 

(vi)        any
Required SPE or Guarantor makes a general assignment for the benefit of creditors; or

 

(vii)       any
Required SPE or Guarantor takes any action for the purpose of effecting any of the foregoing.

 

(e)          Prohibited
Change of Control. A Prohibited Change of Control shall occur.

 

(f)          Equity
Pledge; Preferred Equity. Any direct or indirect equity interest in or right to distributions from Borrower shall be subject
to a pledge in favor of any Person, or Borrower or any holder of a direct or indirect interest in Borrower shall issue preferred
equity (or debt granting the holder thereof rights substantially similar to those generally associated with preferred equity),
except that the following shall be permitted:

 

(i)          any
pledge of direct or indirect equity interests in and rights
to distributions from NY REIT or NYROP;

 

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(ii)         the
pledge of equity interests in Borrower securing the Mezzanine Loan; and

 

(iii)        the
issuance of direct or indirect preferred equity interests in NY REIT or NYROP (or debt granting the holder thereof rights substantially
similar to those generally associated with preferred equity).

 

Any of the foregoing events in this subsection (f) shall be
referred to in this Agreement as a “Prohibited Pledge”.

 

(g)          Insurance.
Borrower shall fail to maintain in full force and effect all Policies required hereunder .

 

(h)          ERISA;
Negative Covenants. A default beyond applicable notice and grace periods shall occur in the due performance or observance by
Borrower of any term, covenant or agreement contained in Section 5.8 or in Article VI; provided that such default
shall not constitute an Event of Default unless and until it shall remain uncured for 10 Business Days after Borrower receives
written notice thereof.

 

(i)          Legal
Requirements. Borrower shall fail to cure properly any material violations of Legal Requirements affecting all or any portion
of the Property within 30 days after Borrower first receives written notice of any such violations; provided, however,
if any such violation is reasonably susceptible of cure, but not within such 30 day period, then Borrower shall be permitted up
to an additional 30 days to cure such violation provided that Borrower commences a cure within such initial 30 day period and thereafter
diligently and continuously pursues such cure.

 

(j)          Other
Covenants. A default shall occur in the due performance or observance by Borrower of any term, covenant or agreement (other
than those referred to in any other subsection of this Section) contained in this Agreement or in any of the other Loan Documents,
except that in the case of a default that can be cured by the payment of money, such default shall not constitute an Event of Default
unless and until it shall remain uncured for 10 days after Borrower receives written notice thereof; and in the case of a default
that cannot be cured by the payment of money but is susceptible of being cured within 30 days, such default shall not constitute
an Event of Default unless and until it remains uncured for 30 days after Borrower receives written notice thereof, provided that
promptly following its receipt of such written notice, Borrower delivers written notice to Lender of its intention and ability
to effect such cure within such 30 day period; and if such non-monetary default is not cured within such 30 day period despite
Borrower’s diligent efforts but is susceptible of being cured within 90 additional days, then Borrower shall have such additional
time as is reasonably necessary to effect such cure, but in no event in excess of 120 days from Borrower’s receipt of Lender’s
original notice, provided that Borrower promptly delivers written notice to Lender of its intention and ability to effect such
cure prior to the expiration of such 120 day period.

 

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Section 7.2.          Remedies.

 

(a)          During
the continuance of an Event of Default, Lender may by written notice to Borrower, in addition to any other rights or remedies available
pursuant to this Agreement, the Notes, the Mortgage and the other Loan Documents, at law or in equity, declare by written notice
to Borrower all or any portion of the Indebtedness to be immediately due and payable, whereupon all or such portion of the Indebtedness
shall so become due and payable, and Lender may enforce or avail itself of any or all rights or remedies provided in the Loan Documents
against Borrower and the Collateral (including all rights or remedies available at law or in equity); provided, however,
that, notwithstanding the foregoing, if an Event of Default specified in Section 7.1(d) shall occur, then (except as specified
in Section 7.2(f)) the Indebtedness shall immediately become due and payable without the giving of any notice or other action by
Lender. Any 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 in this Agreement or in the other Loan Documents.

 

(b)          If
Lender forecloses on any Collateral, Lender shall apply all net proceeds of such foreclosure to repay the Indebtedness, 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 remaining Collateral. At the election of Lender, the Notes shall be deemed to have been accelerated only to the
extent of the net proceeds actually received by Lender with respect to the Property and applied in reduction of the Indebtedness.

 

(c)          During
the continuance of any Event of Default (including an Event of Default resulting from a failure to satisfy the insurance requirements
specified herein), Lender may, but without any obligation to do so and without notice to or demand on Borrower and without releasing
Borrower from any obligation hereunder, take any action to cure such Event of Default. Lender may enter upon any or all of the
Property upon reasonable notice to Borrower for such purposes or appear in, defend, or bring any action or proceeding to protect
its interest in the Collateral or to foreclose the Mortgage or collect the Indebtedness. The costs and expenses incurred by Lender
in exercising rights under this Section (including reasonable attorneys’ fees), with interest at the Default Rate for the
period after notice from Lender that such costs or expenses were incurred to the date of payment to Lender, shall constitute a
portion of the Indebtedness, shall be secured by the Mortgage and other Loan Documents and shall be due and payable to Lender upon
demand therefor.

 

(d)          Interest
shall accrue on any judgment obtained by Lender in connection with its enforcement of the Loan at a rate of interest equal to the
Default Rate.

 

(e)          Notwithstanding
the availability of legal remedies, Lender will be entitled to obtain specific performance, mandatory or prohibitory injunctive
relief, or other equitable relief requiring Borrower to cure or refrain from repeating any Default.

 

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(f)          Notwithstanding
anything herein to the contrary, if an event specified in Section 7.1(d) occurs solely in respect of Guarantor and not any
Required SPE, then such event shall not constitute an Event of Default or result in an acceleration of the Loan unless, in each
case, Lender so determines in its sole discretion by written notice to Borrower; and unless and until Lender sends such notice,
a Cash Flow Sweep Period shall be deemed to have commenced for all purposes hereunder, which Cash Flow Sweep Period shall continue
until the Loan is repaid in full.

 

Section 7.3.          Application
of Payments after an Event of Default. Notwithstanding anything to the contrary
contained herein, during the continuance of an Event of Default, all amounts received by Lender in respect of the Loan shall be
applied at Lender’s sole discretion either toward the components of the Indebtedness (e.g., Lender’s expenses
in enforcing the Loan, interest, principal and other amounts payable hereunder) and the Notes or Note Components in such sequence
as Lender shall elect in its sole discretion, or toward the payment of Property expenses.

 

ARTICLE
VIII

 

CONDITIONS PRECEDENT 

 

Section 8.1.          Conditions
Precedent to Closing. This Agreement shall become effective on the date that all
of the following conditions shall have been satisfied or waived by Lender which satisfaction or waiver shall be evidenced by Lender’s
funding of the Initial Advance to Borrower (unless such conditions are addressed in a post-closing agreement mutually agreed between
and reasonably acceptable to Lender and Borrower):

 

(a)          Loan
Documents. Lender shall have received a duly executed copy of each Loan Document. Each Loan Document that is to be recorded
in the public records shall be in form suitable for recording.

 

(b)          Collateral
Accounts. Each of the Collateral Accounts shall have been established and funded to the extent required under Article III.

 

(c)          Opinions
of Counsel. Lender shall have received, in each case in form and substance reasonably satisfactory to Lender, (i) a New York
legal opinion, (ii) a legal opinion with respect to the laws of the state in which the Property is located, (iii) a bankruptcy
nonconsolidation opinion with respect to each Person owning more than a 49% direct or indirect equity interest in any Required
SPE, and any Affiliated property manager, and (iv) a Delaware legal opinion regarding matters related to Single Member LLC’s.

 

(d)          Organizational
Documents. Lender shall have received all documents reasonably requested by Lender relating to the existence of Borrower, the
validity of the Loan Documents and other matters relating thereto, in form and substance reasonably satisfactory to Lender, including:

 

(i)          Authorizing
Resolutions. To the extent the required authorizations are not contained directly in the organizational documents of any Required
SPE and Guarantor, certified copies of the resolutions authorizing the execution and delivery of the Loan Documents by Guarantor
and Borrower.

 

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(ii)         Organizational
Documents. Certified copies of the organizational documents of Guarantor and each Required SPE (including any certificate of
formation, certificate of limited partnership, certificate of incorporation, operating agreement, limited partnership agreement
or by-laws), in each case together with all amendments thereto.

 

(iii)        Certificates
of Good Standing or Existence. Certificates of good standing or existence for Guarantor and each Required SPE issued as of
a recent date by its state of organization and by the state in which the Property is located.

 

(iv)        Intentionally
Omitted.

 

(e)         Lease;
Material Agreements. Lender shall have received true, correct and complete copies of all Leases and all Material Agreements.

 

(f)          Lien
Search Reports. Lender shall have received reasonably satisfactory reports of Uniform Commercial Code, tax lien, bankruptcy
and judgment searches conducted by a search firm acceptable to Lender with respect to the Property, Guarantor, each Required SPE
and Borrower’s immediate predecessor, if any, such searches to be conducted in such locations as Lender shall have requested.

 

(g)         No
Default or Event of Default. No Default or Event of Default shall have occurred and be continuing on such date immediately
after the execution and delivery of this Agreement.

 

(h)         No
Injunction. No Legal Requirement shall exist, 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.

 

(i)          Representations.
The representations in this Agreement and in the other Loan Documents shall be true and correct in all material respects on and
as of the Closing Date with the same effect as if made on such date.

 

(j)          Estoppel
Letters. Borrower shall have received and delivered to Lender estoppel certificates from such parties and in such form and
substance as shall be reasonably satisfactory to Lender, each of which shall specify that Lender and its successors and assigns
may rely thereon.

 

(k)         No
Material Adverse Effect. No event or series of events shall have occurred that Lender reasonably believes has had or is reasonably
expected to result in a Material Adverse Effect.

 

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(l)          Transaction
Costs. Borrower shall have paid all transaction costs (or provided for the direct payment of such transaction costs by Lender
from the proceeds of the Loan).

 

(m)         Insurance.
Lender shall have received certificates of insurance on ACORD Form 25 for liability insurance and ACORD Form 28 for casualty insurance
demonstrating insurance coverage in respect of the 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 and its successors
and assigns are named as additional insured on each liability policy, and that each casualty policy and rental interruption policy
contains a loss payee and mortgagee endorsement in favor of Lender, its successors and assigns.

 

(n)         Title.
Lender shall have received a marked, signed commitment to issue, or a signed pro-forma version of, a Title Insurance Policy in
respect of the Property, listing only such exceptions as are reasonably satisfactory to Lender. If the Title Policy is to be issued
by, or if disbursement of the proceeds of the Loan are to be made through, an agent of the actual insurer under the Title Policy
(as opposed to the insurer itself), the actual insurer shall have issued to Lender for Lender’s benefit a so-called “Insured
Closing Letter.”

 

(o)         Zoning.
Lender shall have received evidence reasonably satisfactory to Lender that the Property is in compliance with all applicable zoning
requirements (including a zoning report, a zoning endorsement if obtainable and a letter from the applicable municipality if obtainable).

 

(p)         Permits;
Certificate of Occupancy. Lender shall have received a copy of all Permits necessary for the use and operation of the Property
and the certificate(s) of occupancy, if required, for the Property, all of which shall be in form and substance reasonably satisfactory
to Lender.

 

(q)         Engineering
Report. Lender shall have received a current Engineering Report with respect to the Property, which report shall be in form
and substance reasonably satisfactory to Lender.

 

(r)          Environmental
Report. Lender shall have received an Environmental Report (not more than six months old) with respect to the Property that
discloses no material environmental contingencies with respect to the Property.

 

(s)         Survey.
Lender shall have received a Survey with respect to the Property in form and substance reasonably satisfactory to Lender.

 

(t)          Appraisal.
Lender shall have obtained an Appraisal of the Property satisfactory to Lender.

 

(u)         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.

 

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(v)         Financial
Information. Lender shall have received financial information relating to Guarantor, Borrower and the Property that is reasonably
satisfactory to Lender.

 

(w)        Annual
Budget. Lender shall have received the Annual Budget for the current calendar year (and, if the Closing Date occurs in December,
the Annual Budget for the next calendar year).

 

(x)          Know
Your Customer Rules. At least 10 days prior to the Closing Date, the Lender shall have received all documentation and other
information required by bank regulatory authorities under applicable “know-your-customer” and anti-money laundering
rules and regulations, including the PATRIOT Act.

 

(y)         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 proceedings, all other documents (including all documents referred
to in this Agreement and not appearing as exhibits to this Agreement) and all legal matters in connection with the Loan shall be
reasonably satisfactory in form and substance to Lender.

 

ARTICLE
IX

 

MISCELLANEOUS

 

Section 9.1.          Successors.
Except as otherwise provided in this Agreement, whenever in this Agreement any of the parties to this Agreement is referred to,
such reference shall be deemed to include the successors and permitted 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 Lender and its successors and permitted
assigns.

 

Section 9.2.          GOVERNING
LAW.

 

(A)        THIS AGREEMENT SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

(B)         ANY
LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR BORROWER ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE OTHER LOAN
DOCUMENTS (OTHER THAN ANY ACTION IN RESPECT OF THE CREATION, PERFECTION OR ENFORCEMENT OF A LIEN OR SECURITY INTEREST CREATED PURSUANT
TO ANY LOAN DOCUMENTS NOT GOVERNED BY THE LAWS OF THE STATE OF NEW YORK) MAY BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN THE
BOROUGH OF MANHATTAN, NEW YORK, NEW YORK. BORROWER AND LENDER HEREBY (i) IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, ANY OBJECTION THAT THEY 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,
(ii) IRREVOCABLY SUBMIT TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUCH SUIT, ACTION OR PROCEEDING, AND (iii) IRREVOCABLY
CONSENT TO SERVICE OF PROCESS BY MAIL, PERSONAL SERVICE OR IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW, AT THE ADDRESS SPECIFIED
IN SECTION 9.4 (AND AGREES THAT SUCH SERVICE AT SUCH ADDRESS IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER ITSELF IN
ANY SUCH SUIT, ACTION OR PROCEEDING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT).

 

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Section 9.3.          Modification,
Waiver in Writing, Approval of Lender. Except as otherwise specifically provided
herein, neither this Agreement nor any other Loan Document may be amended, changed, waived, discharged or terminated, nor shall
any consent or approval of Lender be granted hereunder, unless such amendment, change, waiver, discharge, termination, consent
or approval is in writing signed by Lender. After a Securitization (if any), wherever Lender’s approval is required hereunder,
whether subject to Lender’s sole or reasonable discretion, such approval may be conditioned upon satisfaction of the Rating
Condition; provided that where Lender’s reasonable discretion is required, such Rating Condition may only be required if
obtaining a Rating Condition in such situation is then customary under the circumstances in the CMBS market with respect to commercial
mortgage loans similar to the Loan and the applicable Rating Agency(ies) in fact so require such Rating Condition to be satisfied.

 

Section 9.4.          Notices.
All notices, consents, approvals and requests required or permitted hereunder or under any other Loan Document shall be given
in writing by expedited prepaid delivery service, either commercial or United States Postal Service, with proof of delivery or
attempted delivery, addressed as follows (or as a pdf attachment to an e-mail address to the respective addresses specified below,
immediately followed by one of the other delivery methods provided). Any party hereto may change its address and other contact
information for purposes hereof at any time by sending a written notice to the other parties to this Agreement in the manner provided
for in this Section 9.4. A notice shall be deemed to have been given when delivered or upon refusal to accept delivery.

 

If to Lender:

 

c/o H/2 Capital Partners

375 Park Avenue

Twentieth Floor

New York, New York 10152

Attention: Daniel Ottensoser

E-mail: dottensoser@h2cp.com

 

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with copies to:

 

c/o H/2 Capital Partners

375 Park Avenue

Twentieth Floor

New York, New York 10152

Attention: William Stefko, Esq.

E-mail: wstefko@h2sas.com

 

and

 

Cleary Gottlieb Steen & Hamilton LLP

One Liberty Plaza

New York, New York 10006

Attention: Kimberly Blacklow, Esq.

E-mail: kblacklow@cgsh.com

 

If to Borrower:

 

c/o New York Recovery Advisors, LLC

405 Park Avenue, 7th Floor

New York, NY 10022

Attn: Legal Department

E-Mail: MEad@nyrt.com

 

With a copy to

 

c/o New York Recovery Advisors, LLC

405 Park Avenue, 7th Floor

New York, NY 10022

Attn: Michael Happel

E-Mail: Mhappel@nyrt.com

 

 

with a copy to:

 

Arnold & Porter LLP

399 Park Avenue

New York, NY 10022

Attn: John Busillo, Esq.

E-Mail: John.Busillo@aporter.com

 

Section 9.5.          TRIAL
BY JURY. LENDER AND BORROWER, TO THE FULLEST EXTENT THAT THEY MAY LAWFULLY DO SO,
HEREBY AGREE NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVE ANY RIGHT TO TRIAL BY JURY FULLY TO
THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THE LOAN DOCUMENTS, OR ANY CLAIM, COUNTERCLAIM OR OTHER
ACTION ARISING IN CONNECTION THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY LENDER AND
BORROWER AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD
OTHERWISE ACCRUE. LENDER AND BORROWER ARE EACH HEREBY INDIVIDUALLY AUTHORIZED TO FILE A COPY OF THIS SECTION 9.5 IN ANY
PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER.

 

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Section 9.6.          Headings.
The Article and Section headings in this Agreement are included in this Agreement for convenience of reference only and shall
not constitute a part of this Agreement for any other purpose.

 

Section 9.7.          Assignment;
Participation.

 

(a)          Except
as expressly set forth in Article II, Borrower may not sell, assign or otherwise transfer any rights, obligations or other
interest of Borrower in or under the Loan Documents.

 

(b)          Lender
and each assignee of all or a portion of the Loan, at their sole cost and expense, shall have the right from time to time in its
discretion and without the consent of Borrower to sell, assign, syndicate, Securitize, encumber, hypothecate or otherwise transfer
one or more of the Notes or any interest therein (in each case, an “Assignment”) and/or sell a participation
interest in one or more of the Notes (a “Participation”) to any Person other than, so long as no Event of Default
is continuing, a Prohibited Transferee. Borrower shall and shall cause Guarantor to reasonably cooperate with Lender, at Lender’s
request and sole cost and expense, in order to effectuate any such Assignment, including, without limitation: (i) making changes
to the Loan Documents, provided such changes do not result in any increase in the obligations or liabilities of Borrower or decrease
in the rights or remedies of Borrower or increase in the rights and remedies of Lender or decrease in the obligations or liabilities
of Lender; (ii) bifurcating the Loan pursuant to Section 9.24(b); (iii) promptly delivering updated information, legal opinions
and documents in substantially the form delivered on the Closing Date relating to each Required SPE, Guarantor, the Property,
the Approved Property Manager and any Tenants as Lender may reasonably request and reasonably be available to Borrower in connection
with such Assignment; (iv) participating (including senior management of Borrower or Guarantor) in a bank or investor meeting if
requested by Lender; and (v) cooperating with Lender in connection with the preparation of marketing materials related to the Loan.
In the case of an Assignment, (i) each assignee shall have, to the extent of such Assignment, the rights, benefits and obligations
of the assigning Lender as a “Lender” hereunder and under the other Loan Documents, (ii) the assigning Lender
shall, to the extent that rights and obligations hereunder have been assigned by it pursuant to an Assignment, relinquish its rights
and be released from its obligations under this Agreement arising from and after the date of such Assignment, and (iii) SAS shall
serve as agent (“Agent”) for all Lenders and shall be the sole party to whom notices, requests and other communications
shall be addressed and the sole party authorized to grant or withhold consents hereunder on behalf of the Lenders (subject, in
each case, to appointment of a Servicer, pursuant to Section 9.22, to receive such notices, requests and other communications
and/or to grant or withhold consents, as the case may be). Agent shall maintain, or cause to be maintained, as non-fiduciary agent
for Borrower, a register on which it shall enter the name or names of the registered owner or owners from time to time of the Notes.
Upon effectiveness of any Assignment of any Note in part, Borrower will promptly provide to the assignor and the assignee separate
Notes in the amount of their respective interests (but, if applicable, with a notation thereon that it is given in substitution
for and replacement of an original Note or any replacement thereof), and otherwise in the form of such Note, upon return of the
Note then being replaced provided in no event shall such Notes exceed the then outstanding principal amount of the Loan. Each potential
or actual assignee, participant or investor in a Securitization, and each Rating Agency, shall be entitled to receive from Lender
all information received by Lender under this Agreement; provided that Lender shall not provide to any such parties any information
relating to the Guarantor or any properties owned by Guarantor (other than the Property) that Borrower has identified as confidential
unless (i) it obtains a customary confidentiality undertaking (or deemed undertaking) from the recipient thereof and reasonably
acceptable to Borrower and (ii) the applicable information or materials are not otherwise available in the public domain. After
the effectiveness of any Assignment, the party conveying the Assignment shall provide notice to Borrower and each Lender of the
identity and address of the assignee. Notwithstanding anything in this Agreement to the contrary, after an Assignment, the assigning
Lender (in addition to the assignee) shall continue to have the benefits of any indemnifications contained in this Agreement that
such assigning Lender had prior to such assignment with respect to matters occurring prior to the date of such assignment.

 

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(c)          If,
pursuant to this Section, any interest in this Agreement or any Note is transferred to any transferee, such transferee shall, promptly
upon receipt of written request from Borrower, furnish to Borrower Form W-9, Form W-8BEN or Form W-8ECI, as applicable.

 

Section 9.8.          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. All covenants hereunder shall be given independent effect so that if a particular action or condition is not
permitted by any of such covenants, the fact that it would be permitted by an exception to, or would otherwise be within the limitations
of, another covenant shall not avoid the occurrence of a Default or an Event of Default if such action is taken or condition exists.

 

Section 9.9.          Preferences;
Waiver of Marshalling of Assets. 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 the Loan Documents. Lender shall have the continuing and exclusive right to apply or reverse and reapply only during continuance
of an Event of Default any and all payments by Borrower to any portion of the obligations of Borrower hereunder and under the
Loan Documents. If any payment to Lender is 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 the obligations hereunder or portion thereof intended to be satisfied by such payment shall be revived and
continue in full force and effect, as if such payment had not been made. Borrower hereby waives any legal right otherwise available
to Borrower that would require the sale of any Collateral either separate or apart from other Collateral, or require Lender to
exhaust its remedies against any Collateral before proceeding against any other Collateral. Without limiting the foregoing, to
the fullest extent permitted by law, Borrower hereby waives and shall not assert any rights in respect of a marshalling of Collateral,
a sale in the inverse order of alienation, any homestead exemption, the administration of estates of decedents, or any other matters
whatsoever to defeat, reduce or affect the right of Lender under the Loan Documents to a sale of the Collateral or any portion
thereof in any sequence and any combination as determined by Lender in its sole discretion.

 

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Section 9.10.         Remedies
of Borrower. If a claim is made that Lender or its agents have unreasonably delayed
acting or acted unreasonably in any case where by law or under this Agreement or the other Loan Documents any of such Persons
has an obligation to act promptly or reasonably, Borrower agrees that no such Person shall be liable for any monetary damages,
and Borrower’s sole remedy shall be limited to commencing an action seeking specific performance, injunctive relief and/or
declaratory judgment; provided, however, that the forgoing shall not prevent Borrower from obtaining a monetary judgment
against Lender if it is determined by a court of competent jurisdiction that Lender acted with gross negligence, bad faith or
willful misconduct. Notwithstanding anything herein to the contrary, Borrower shall not assert, and hereby waives, any claim against
Lender and/or its affiliates, directors, employees, attorneys, agents or sub-agents, on any theory of liability, for special,
indirect, consequential or punitive damages (whether or not the claim therefor is based on contract, tort or duty imposed by any
applicable Legal Requirement) arising out of, as a result of, or in any way related to, the Loan Agreement or any other Loan Document
or any agreement or instrument contemplated hereby or thereby or referred to herein or therein, the transactions contemplated
hereby or thereby, the Loan or the use of the proceeds thereof or any act or omission or event occurring in connection therewith,
and Borrower hereby waives, releases and agrees not to sue upon any such claim for any such damages, whether or not accrued and
whether or not known or suspected to exist in its favor.

 

Section 9.11.         Offsets,
Counterclaims and Defenses. All payments made by Borrower hereunder or under the
other Loan Documents shall be made irrespective of, and without any deduction for, any offsets, counterclaims or defenses. Borrower
waives the right to assert a counterclaim, other than a mandatory or compulsory counterclaim, in any action or proceeding brought
against it by Lender arising out of or in any way connected with the Notes, this Agreement, the other Loan Documents or the Indebtedness.
Any assignee of Lender’s interest in the Loan shall take the same free and clear of all offsets, counterclaims or defenses
against the assigning Lender.

 

Section 9.12.         No
Joint Venture. Nothing in this Agreement is intended to create a joint venture,
partnership, tenancy-in-common or joint tenancy relationship between Borrower and Lender, nor to grant Lender any interest in
the Property other than that of mortgagee or lender.

 

Section 9.13.         Conflict;
Construction of Documents. In the event of any conflict between the provisions
of this Agreement and the provisions of the other Loan Documents, the provisions of this Agreement shall prevail. The parties
acknowledge that they were each represented by competent counsel in connection with the negotiation, drafting and execution 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.

 

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Section 9.14.         Brokers
and Financial Advisors. Borrower represents that neither it nor Guarantor has dealt
with any financial advisors, brokers, underwriters, placement agents, agents or finders in connection with the transactions contemplated
by this Agreement. Lender represents that it has not dealt with any financial advisors, brokers, underwriters, placement agents,
agents or finders in connection with the transactions contemplated by this Agreement. Borrower and Lender agree to indemnify and
hold each 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 Borrower or Lender, as applicable, in connection
with the transactions contemplated in this Agreement. The provisions of this Section shall survive the expiration and termination
of this Agreement and the repayment of the Indebtedness.

 

Section 9.15.         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. Any counterpart delivered by facsimile, pdf or other electronic
means shall have the same import and effect as original counterparts and shall be valid, enforceable and binding for the purposes
of this Agreement.

 

Section 9.16.         Estoppel
Certificates.

 

(a)          Borrower
shall execute, acknowledge and deliver to Lender, within ten (10) days after receipt of Lender’s written request therefor
at any time from time to time, a statement in writing setting forth (A) the Principal Indebtedness, (B) the date on which
installments of interest and/or principal were last paid, (C) to Borrower’s knowledge any offsets or defenses to the
payment of the Indebtedness, (D) that the Notes, this Agreement, the Mortgage and the other Loan Documents are valid, legal
and binding obligations and have not been modified or if modified, giving particulars of such modification, (E) that neither Borrower
nor, to Borrower’s knowledge, Lender, is in default under the Loan Documents (or specifying any such default), (F) that all
Leases are in full force and effect and have not been modified (except in accordance with the Loan Documents) or identifying which
Leases have been terminated or modified, (G) to Borrower’s knowledge, whether or not any of the Tenants under the Leases
or any counterparties under the Material Agreements are in material default under the Leases or the Material Agreements, as applicable
(setting forth the specific nature of any such material defaults) and (H) such other matters as Lender may reasonably request.
Any prospective purchaser of any interest in the Loan shall be permitted to rely on such certificate.

 

(b)          Upon
Lender’s written request, Borrower shall use commercially reasonable efforts to obtain from each Tenant and thereafter promptly
deliver to Lender duly executed estoppel certificates substantially in the form set forth on Exhibit C from any one or more
Tenants specified by Lender, attesting to such facts regarding the Leases as Lender may reasonably require, including attestations
that each Lease covered thereby is in full force and effect with no material defaults thereunder on the part of any party (or identifying
any material defaults thereunder), that rent has not been paid more than one month in advance, except as security, and that the
Tenant claims no defense or offset against the full and timely performance of its obligations under the Lease or otherwise in the
form accepted by Lender from applicable Tenants at the closing of the Loan. Borrower shall not be required to deliver such certificates
more frequently than one time in any 12-month period, other than the 12-month period during which a Securitization occurs or is
attempted.

 

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Section 9.17.         General
Indemnity; Payment of Expenses.

 

(a)          Borrower,
at its sole cost and expense, shall protect, indemnify, reimburse, defend and hold harmless Lender and its officers, partners,
members, directors, trustees, advisors, employees, agents, Affiliates, successors and assigns of any and all of the foregoing (collectively,
the “Indemnified Parties”) for, from and against any and all Damages of any kind or nature whatsoever that may
be imposed on, incurred by, or asserted against any of the Indemnified Parties, in any way relating to or arising out of Lender’s
interest in the Loan; provided, however, that no Indemnified Party shall have the right to be indemnified hereunder
to the extent that such Damages (i) have been found by a final, non-appealable judgment of a court of competent jurisdiction to
have resulted from the gross negligence, fraud or willful misconduct of such Indemnified Party, (ii) arise from any action taken
by any Person (other than Borrower, Guarantor, or any other Person that, directly or indirectly, Controls, is Controlled by or
is under common Control with Guarantor) from and after a Transfer approved by Lender in accordance with the terms hereof of the
entire Property or a transfer of all of the direct and indirect equity interests of Borrower to a Person that is not an Affiliate
of Guarantor, (iii) arise from any action taken by any Person (other than Borrower, Guarantor, or any other Person that, directly
or indirectly, Controls, is Controlled by or is under common Control with Guarantor) from and after an Indemnified Party obtains
title to the Property, whether by foreclosure, deed-in-lieu of foreclosure or otherwise in connection with any exercise of Lender’s
remedies pursuant to the Loan Documents, or any actions taken by any Person (other than Borrower, Guarantor or any other Person
that, directly or indirectly, Controls, is Controlled by, or is under common Control with Guarantor) on or after the date on which
a receiver, trustee, liquidator, or conservator is appointed, at Lender’s request, to take control of the Property, or (iv)
arise from any action taken (a) by Mezzanine Lender or, to the extent there is any other mezzanine lender (“Additional
Mezzanine Lender”) with respect to any additional mezzanine loan (“Additional Mezzanine Loan”) under
Section 9.24(b), during any period in which either Mezzanine Lender or Additional Mezzanine Lender exercises Control of
any Required SPE, Borrower, Mezzanine Borrower and/or the Property under the Mezzanine Loan Documents or the loan documents evidencing
the Additional Mezzanine Loan, as applicable, or (b) by any Person (other than Borrower, Guarantor, or any other Person that, directly
or indirectly, Controls, is Controlled by or is under common Control with Guarantor) from and after a mezzanine foreclosure or
assignment-in-lieu thereof. Further, to the extent that any Damage arises out of or is based upon any Disclosure Document, the
foregoing indemnity shall be limited to Damages arising to the extent of any untrue statement or omission of a material fact made
therein in reliance upon and in conformity with information furnished to Lender by or on behalf of Borrower in connection with
the preparation of the Disclosure Document and provided, further, that Borrower shall have no liability therefor if Borrower is
not provided a reasonable opportunity to review such Disclosure Document or to the extent that any Indemnified Party or any other
Person failed to accurately transcribe information provided by Borrower to Lender or its agent or employee or to include any portions
of the information provided by Borrower.

 

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(b)          If
for any reason (including violation of law or public policy) the undertakings to defend, indemnify, pay and hold harmless set forth
in this Section are unenforceable in whole or in part or are otherwise unavailable to an Indemnified Party or insufficient to hold
it harmless, then Borrower shall contribute to the amount paid or payable by the Indemnified Party as a result of any Damages the
maximum amount Borrower is permitted to pay under Legal Requirements. The obligations of Borrower under this Section will be in
addition to any liability that Borrower may otherwise have hereunder and under the other Loan Documents. 

 

(c)          To
the extent any Indemnified Party has notice of a claim for which it intends to seek indemnification hereunder, such Indemnified
Party shall give prompt written notice thereof to Borrower, provided that failure by Lender to so notify Borrower will not relieve
Borrower of its obligations under this Section, except to the extent that Borrower suffers actual prejudice as a result of such
failure. In connection with any claim for which indemnification is sought hereunder, Borrower shall have the right to defend the
applicable Indemnified Party (if requested by the applicable Indemnified Party, in the name of such Indemnified Party) from such
claim by attorneys and other professionals reasonably approved by the applicable Indemnified Party. Upon assumption by Borrower
of any defense pursuant to the immediately preceding sentence, Borrower shall have the right to control such defense, provided
that the Applicable Indemnified Party shall have the right to reasonably participate in such defense and Borrower shall not consent
to the terms of any compromise or settlement of any action defended by Borrower in accordance with the foregoing without the prior
consent of the applicable Indemnified Party (not to be unreasonably withheld, conditioned or delayed), unless such compromise or
settlement (i) includes an unconditional release of the applicable Indemnified Party from all liability arising out of such action
and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act, by or on behalf of the applicable
Indemnified Party. The applicable Indemnified Party shall have the right to retain its own counsel if (i) Borrower shall have failed
to employ counsel reasonably satisfactory to the applicable Indemnified Party in a timely manner, or (ii) the applicable Indemnified
Party shall have been advised by counsel that there are actual or potential material conflicts of interest between Borrower and
the applicable Indemnified Party, including situations in which there are one or more legal defenses available to the applicable
Indemnified Party that are different from or additional to those available to Borrower. So long as Borrower is conducting the defense
of any action defended by Borrower in accordance with the foregoing in a prudent and commercially reasonable manner, Lender and
the applicable Indemnified Party shall not compromise or settle such action defended without Borrower's consent, which shall not
be unreasonably withheld or delayed. Subject to the other provisions of this Section 9.17(c), upon demand, Borrower shall
pay or, in the sole discretion of the applicable Indemnified Party, reimburse the applicable Indemnified Party for the payment
of reasonable fees and disbursements of attorneys, engineers, environmental consultants, laboratories and other professionals retained
by the Applicable Indemnified Party in accordance with this Section in connection with defending any claim subject to indemnification
hereunder. In no event shall Borrower have any obligation to pay for more than one attorney to represent, collectively, any and
all Indemnified Parties.

 

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(d)          Any
amounts payable to Lender by reason of the application of this Section shall be secured by the Mortgage and shall become immediately
due and payable and shall bear interest at a rate per annum equal to the rate required to be paid under Section 1.2(a) for
the first five (5) Business Days from the date Damages are sustained by the Indemnified Parties and Borrower has received written
demand for payment and the Default Rate thereafter until paid.

 

(e)          The
provisions of and undertakings and indemnification set forth in this Section shall survive the satisfaction and payment in full
of the Indebtedness and termination of this Agreement.

 

(f)          Borrower
shall reimburse Lender upon receipt of written notice from Lender for (i) all reasonable, out-of-pocket costs and expenses incurred
by Lender (or any of its affiliates) in connection with the origination of the Loan, including reasonable legal fees and disbursements,
accounting fees, and the costs of the Appraisal, the Engineering Report, the Title Insurance Policy, the Survey, the Environmental
Report and any other third-party diligence materials; (ii) all out-of-pocket costs and expenses incurred by Lender (or any of its
affiliates) in connection with (A) third-party fees for monitoring Borrower’s ongoing performance of and compliance with
Borrower’s material agreements and covenants contained in this Agreement and the other Loan Documents on its part to be performed
or complied with after the Closing Date, including confirming compliance with environmental and insurance requirements (but in
no event shall Borrower be responsible for regular servicing fees), (B) the negotiation, preparation, execution, delivery and administration
of any consents, amendments, waivers or other modifications to this Agreement and the other Loan Documents and any other documents
or matters relating hereto (including Leases, Material Agreements, and Permitted Encumbrances) to the extent such modifications
or reviews are requested by Borrower or required under the Loan Documents (unless as to the items required under the Loan Documents,
Lender is required to pay for the same pursuant to the terms of the Loan Documents), (D) filing, registration and recording fees
and expenses and other similar expenses incurred in creating and perfecting the Liens in favor of Lender pursuant to this Agreement
and the other Loan Documents (including the filing, registration or recording of any instrument of further assurance) and subject
to the provisions of this Agreement, federal, state, county and municipal, taxes (including, if applicable, intangible taxes),
search fees, title insurance premiums, duties, imposts, assessments and charges arising out of or in connection with the execution
and delivery of the Loan Documents, any mortgage supplemental thereto, any security instrument with respect to the Collateral or
any instrument of further assurance, (E) enforcing or preserving any rights, in response to third party claims or the prosecuting
or defending of any action or proceeding or other litigation, in each case against, under or affecting Borrower, this Agreement,
the other Loan Documents or any Collateral, and (F) the satisfaction of any Rating Condition in respect of any matter required
or requested by Borrower hereunder; and (iii) all actual out-of-pocket costs and expenses (including reasonable attorney’s
fees and, if the Loan has been Securitized, special servicing fees) incurred by Lender (or any of its Affiliates) in connection
with the enforcement of any obligations of Borrower, or an Event of Default or a reasonably imminent Event of Default by Borrower,
under the Loan Documents, including any actual or attempted foreclosure, deed-in-lieu of foreclosure, refinancing, restructuring,
settlement or workout and any insolvency or bankruptcy proceedings (including any applicable transfer taxes). Without limiting
the foregoing, Borrower shall pay all out-of-pocket costs, expenses and fees of Lender and its Servicer, operating advisor and
securitization trustee resulting from an Event of Default or a reasonably imminent Event of Default or requests by Borrower (including
enforcement expenses and any liquidation fees, workout fees, special servicing fees, operating advisor consulting fees or any other
similar fees and interest payable on advances made by the Servicer or the securitization trustee with respect to delinquent debt
service payments or expenses of curing Borrower’s defaults under the Loan Documents, and any expenses paid by Servicer or
a trustee in respect of the protection and preservation of the Property, such as payment of taxes and insurance premiums); and
the costs of all property inspections and/or Appraisals (or any updates to any existing inspection or Appraisal) that Servicer
may be required to obtain due to a request by Borrower or the occurrence of an Event of Default or a reasonably imminent Event
of Default.

 

    	103

     

    

 

Section 9.18.         No
Third-Party Beneficiaries. This Agreement and the other Loan Documents are solely
for the benefit of Lender and Borrower, and nothing contained in this Agreement or the other Loan Documents shall be deemed to
confer upon anyone other than Lender, Borrower and Indemnified Parties any right to insist upon or to enforce the performance
or observance of any of the obligations contained herein or therein. All conditions to the obligations of Lender to make the Loan
hereunder are imposed solely and exclusively for the benefit of Lender, and no other Person shall have standing to require satisfaction
of such conditions in accordance with their terms or be entitled to assume that Lender will refuse to make the Loan in the absence
of strict compliance with any or all thereof, and no other Person shall under any circumstances be deemed to be a beneficiary
of such conditions, any or all of which may be freely waived in whole or in part by Lender if, in Lender’s sole discretion,
Lender deems it advisable or desirable to do so.

 

Section 9.19.         Recourse.

 

(a)          Subject
to the qualifications in Sections 9.19(b) and 9.19(c) below, Lender shall not enforce Borrower’s obligation
to pay the Indebtedness by any action or proceeding wherein a deficiency judgment or other judgment establishing personal liability
shall be sought against Borrower or any of its affiliates, or any Exculpated Person, except for foreclosure actions or any other
appropriate actions or proceedings with respect to the Collateral in order to fully exercise Lender’s remedies in respect
of, and to realize upon, the Collateral, and except for any actions to enforce any obligations expressly assumed or guaranteed
by Guarantor under the Guaranty, Unfunded Obligations Guaranty and Environmental Indemnity and Borrower under the Environmental
Indemnity or any guarantor, indemnitor or similar party that becomes a party to any of the foregoing agreements or enters into
any replacement guaranties or indemnities (whether or not such party is an Exculpated Person) under the Loan Documents.

 

(b)          Borrower
shall indemnify Lender and hold Lender harmless from and against any and all Damages to Lender (including reasonable legal and
other expenses of enforcing the obligations of Borrower under this Section) resulting from or arising out of any of the following
(the “Indemnified Liabilities”):

 

(i)          fraud
or intentional misrepresentation by Borrower, Guarantor or any Affiliated agent of the foregoing;

 

    	104

     

    

 

(ii)         intentional
misapplication or misappropriation of insurance proceeds, Loss Proceeds, Revenues or security deposits in violation of the Loan
Documents;

 

(iii)        wrongful
removal, destruction or material physical Waste of any material portion of the Collateral;

 

(iv)        failure
to apply Available Funds, if any, and if reserved by Lender for such purpose, made available to Borrower, toward payment of any
Taxes or charges (including charges for labor and materials) that create Liens on the Property, unless (i) contested in good faith
and otherwise in accordance with the terms of the Loan Documents or (ii) resulting from Lender’s failure to make required
disbursements from reserves maintained for such purpose under the Loan Documents;

 

(v)         failure
to apply Available Funds, if any, and if reserved by Lender for such purpose, made available to Borrower, toward payment of insurance
premiums and insurance deductibles unless resulting from Lender’s failure to make required disbursements from reserves maintained
for such purpose under the Loan Documents;

 

(vi)        Intentionally
omitted.

 

(vii)       willful
misconduct by Borrower, Guarantor or any Affiliated agent of any of the foregoing (including any wrongful contest not pursued in
good faith to the validity of the Loan Documents or wrongful acts not conducted in good faith to interfere, hinder, delay or obstruct
Lender’s pursuit of its remedies under the Loan Documents);

 

(viii)      the
failure of any Required SPE to be, and to at all times have been, in all material respects, a Single-Purpose Entity, regardless
of whether such failure to have been a Single-Purpose Entity prior to the date hereof has been disclosed to Lender, and including
Damages due to such failure, arising from or related to (x) the actions, conduct and/or operating history of Borrower (or any Person
merged into Borrower) prior to the Closing Date and (y) Borrower’s ownership (or the ownership of any Person merged into
Borrower) of assets prior to the Closing Date that do not constitute a portion of the Collateral but excluding any breach resulting
solely from a failure of the Property to generate sufficient cash flow or a failure of Guarantor to contribute additional capital,
provided that Borrower shall not have any liability under this Section 9.19(b)(viii) if Borrower cures any such failure
within ten (10) Business Days after Borrower receives written notice thereof; and

 

(ix)         Borrower’s
obtaining additional Debt to the extent prohibited by this Agreement.

 

    	105

     

    

 

(c)          In
addition to the foregoing, the Loan shall be fully recourse to Borrower, if (i) Borrower Transfers the Property or any other Collateral,
voluntarily grants a mortgage or similar Lien on the Collateral, or there is a Prohibited Change of Control or Prohibited Pledge,
in each case, in violation of the Loan Documents, (ii) any petition for bankruptcy, insolvency, dissolution or liquidation under
the Bankruptcy Code or any similar federal or state law is filed by, consented to, or acquiesced in by, any Required SPE, (iii)
any Required SPE or any of their respective Affiliates (including Guarantor) shall have colluded with other creditors to cause
an involuntary filing under the Bankruptcy Code or similar federal or state law with respect to any Required SPE, or any Required
SPE shall have terminated one or more of the Independent Directors for the purpose of facilitating a bankruptcy filing, or (iv)
any Required SPE fails to be, and to at all times have been, a Single-Purpose Entity, which failure results in a substantive consolidation
of Borrower with any Affiliate in a bankruptcy or similar proceeding (or the filing of a motion by Borrower, Guarantor or any of
their respective Affiliates for substantive consolidation in a bankruptcy or similar proceeding citing any such breach).

 

(d)          The
foregoing limitations on personal liability shall in no way impair or constitute a waiver of the validity of the Notes, the Indebtedness
secured by the Collateral, or the Liens on the Collateral, or the right of Lender, as mortgagee or secured party, to foreclose
and/or enforce its rights with respect to the Collateral after an Event of Default. Nothing in this Agreement shall be deemed to
be a waiver of any right which Lender may have under the Bankruptcy Code to file a claim for the full amount of the debt owing
to Lender by Borrower or to require that all Collateral shall continue to secure all of the Indebtedness owing to Lender in accordance
with the Loan Documents. Lender may seek a judgment on the Notes (and, if necessary, name Borrower in such suit) as part of judicial
proceedings to foreclose on any Collateral or as a prerequisite to any such foreclosure or to confirm any foreclosure or sale pursuant
to power of sale thereunder, and in the event any suit is brought on the Notes, or with respect to any Indebtedness or any judgment
rendered in such judicial proceedings, such judgment shall constitute a Lien on and may be enforced on and against the Collateral
and the rents, profits, issues, products and proceeds thereof. Nothing in this Agreement shall impair the right of Lender to accelerate
the maturity of the Notes upon the occurrence of an Event of Default that is continuing, nor shall anything in this Agreement impair
or be construed to impair the right of Lender to seek personal judgments, and to enforce all rights and remedies under applicable
law, jointly and severally against Guarantor under the Guaranty, Unfunded Obligations Guaranty and Environmental Indemnity and
Borrower under the Environmental Indemnity or any guarantor, indemnitor or similar party that becomes a party to any of the foregoing
agreements or enters into any replacement guaranties or indemnities to the extent allowed by any applicable Loan Documents. The
provisions set forth in this Section are not intended as a release or discharge of the obligations due under the Notes or under
any Loan Documents, but are intended as a limitation, to the extent provided in this Section, on Lender’s right to sue for
a deficiency or seek a personal judgment except as required in order to realize on the Collateral.

 

Section 9.20.         Right
of Set-Off. In addition to any rights now or hereafter granted under applicable
law or otherwise, and not by way of limitation of any such rights, during the continuance of an Event of Default, Lender may from
time to time, without presentment, demand, protest or other notice of any kind (all of such rights being hereby expressly waived),
set-off and appropriate and apply any and all deposits (general or special) and any other indebtedness at any time held or owing
by Lender (including branches of Lender wherever located) to or for the credit or the account of Borrower against the obligations
and liabilities of Borrower to Lender hereunder, under the Notes, the other Loan Documents or otherwise, irrespective of whether
Lender shall have made any demand hereunder and although such obligations, liabilities or claims, or any of them, may be contingent
or unmatured, and any such set-off shall be deemed to have been made immediately upon the occurrence of an Event of Default even
though such charge is made or entered on the books of Lender subsequent thereto.

 

    	106

     

    

 

Section 9.21.         Exculpation
of Lender. Lender neither undertakes nor assumes any responsibility or duty to
Borrower or any other party to select, review, inspect, examine, supervise, pass judgment upon or inform Borrower or any third
party of (a) the existence, quality, adequacy or suitability of Appraisals of the Property or other Collateral, (b) any
environmental report, or (c) any other matters or items, including engineering, soils and seismic reports that are contemplated
in the Loan Documents. Any such selection, review, inspection, examination and the like, and any other due diligence conducted
by Lender, is solely for the purpose of protecting Lender’s rights under the Loan Documents, and shall not render Lender
liable to Borrower or any third party for the existence, sufficiency, accuracy, completeness or legality thereof.

 

Section 9.22.         Agent;
Servicer. Lender shall delegate any and all rights and obligations of Lender hereunder
and under the other Loan Documents to the Agent upon notice by Lender to Borrower, whereupon any notice or consent from the Agent
to Borrower, and any action by Agent on Lender’s behalf, shall have the same force and effect as if Agent were Lender. Lender
hereby advises Borrower that as of the date hereof, SAS is designated by Lender as Agent. Until Lender notifies Borrower
in writing that the Agent has been terminated as Agent for cause, the Agent
shall serve as the primary point of contact for Borrower with respect to the Loan and shall process all of Borrower’s
requests for approval hereunder (including, without limitation, approval of Draw Requests and approval of any Major Lease). Borrower
shall have the right to rely on instructions and other communications received from the Agent
to the same extent as if such instructions or other communications were received directly from Lender. Agent shall be permitted
to delegate certain administrative duties hereunder to a Servicer upon written notice to Borrower, but shall retain all other
obligations as the primary point of contact with Borrower hereunder. In addition, in connection with any Securitization of the
Loan, master servicer, primary servicer and special servicer shall each be SAS or an Approved Servicer, subject to dismissal for
cause. So long as no Event of Default is continuing, the appointment or replacement of any Agent or Servicer shall be subject
to Borrower’s reasonable consent, except that Borrower’s consent shall not be required for the appointment of an Approved
Servicer as Agent or Servicer hereunder. So long as no Event of Default and Mezzanine Loan Event of Default is continuing, the
Loan and the Mezzanine Loan shall have the same Agent, subject to removal for cause.

 

Section 9.23.         No
Fiduciary Duty.

 

(a)          Borrower
acknowledges that, in connection with this Agreement and the other Loan Documents, Lender has relied upon and assumed the accuracy
and completeness of all of the financial, legal, regulatory, accounting, tax and other information provided to, discussed with
or reviewed by Lender for such purposes, and Lender does not assume any liability therefor or responsibility for the accuracy,
completeness or independent verification thereof. Lender, its Affiliates and their respective equityholders and employees (for
purposes of this Section, the “Lending Parties”) have no obligation to conduct any independent evaluation or
appraisal of the assets or liabilities (including any contingent, derivative or off-balance sheet assets and liabilities) of Guarantor,
Borrower or any other Person or any of their respective affiliates or to advise or opine on any related solvency or viability issues.

 

    	107

     

    

 

(b)          It
is understood and agreed that (i) the Lending Parties shall act under this Agreement and the other Loan Documents as an independent
contractor, (ii) the transaction described herein is an arm’s-length commercial transactions between the Lending Parties,
on the one hand, and Borrower, on the other, (iii) each Lending Party is acting solely as principal and not as the agent or fiduciary
of Borrower, Guarantor or their respective affiliates, stockholders, employees or creditors or any other Person and (iv) nothing
in this Agreement or the other Loan Documents shall be deemed to create (A) a fiduciary duty (or other implied duty) on the party
of any Lending Party to Guarantor, Borrower, any of their respective affiliates, stockholders, employees or creditors, or any other
Person or (B) a fiduciary or agency relationship between Guarantor, Borrower or any of their respective affiliates, stockholders,
employees or creditors, on the one hand, and the Lending Parties, on the other. Borrower agrees that neither it nor Guarantor nor
any of their respective Affiliates shall make, and hereby waives, any claim against the Lending Parties based on an assertion that
any Lending Party has rendered advisory services of any nature or respect, or owes a fiduciary or similar duty to Borrower, Guarantor
of their respective Affiliates, stockholders, employees or creditors. Nothing in this Agreement or the other Loan Documents is
intended to confer upon any other Person (including Affiliates, stockholders, employees or creditors of Borrower and Guarantor)
any rights or remedies by reason of any fiduciary or similar duty.

 

(c)          Borrower
acknowledges that it has been advised that the Lending Parties are a financial services and asset management firm that provides
certain financial and asset management services. In the ordinary course of these activities, the Lending Parties may make or hold
a broad array of investments and actively trade debt and equity securities (or related derivative securities) and/or financial
instruments (including loans) for their own account and for the accounts of their customers and may at any time hold long and short
positions in such securities and/or instruments. Such investment and other activities may involve securities and instruments of
Affiliates of Borrower, including Guarantor, as well as of other Persons that may (i) be involved in transactions arising from
or relating to the Loan, (ii) be customers or competitors of Borrower, Guarantor and/or their respective Affiliates, or (iii) have
other relationships with Borrower, Guarantor and/or their respective Affiliates. In addition, the Lending Parties may provide financial
advisory services to such other Persons. The Lending Parties may also co-invest with, make direct investments in, and invest or
co-invest client monies in or with funds or other investment vehicles managed by other parties, and such funds or other investment
vehicles may trade or make investments in securities of Affiliates of Borrower, including Guarantor, or such other Persons. The
Transaction may have a direct or indirect impact on the investments, securities or instruments referred to in this Section 9.23(c).
Although the Lending Parties in the course of such other activities and relationships may acquire information about the Loan, the
Lending Parties shall have no obligation to disclose such information, or the fact that the Lending Parties are in possession of
such information, to Borrower, Guarantor or any of their respective Affiliates or to use such information on behalf of Borrower,
Guarantor or any of their respective Affiliates

 

    	108

     

    

 

(d)          Borrower
acknowledges and agrees that Borrower has consulted its own legal and financial advisors to the extent it deemed appropriate and
that it is responsible for making its own independent judgment with respect to this Agreement and the other Loan Documents and
the process leading thereto.

 

Section 9.24.         Borrower
Information.  

 

(a)          Borrower
shall make available to Lender all information concerning its business and operations that Lender may reasonably request. Lender
shall have the right to disclose any and all information provided to Lender by Borrower or Guarantor regarding Borrower, Guarantor,
the Loan and the Property (i) to Affiliates of Lender and to Lender’s agents and advisors, (ii) to any actual or potential
assignee, transferee or participant in connection with the contemplated Assignment or Securitization of all or any portion of the
Loan or any participations therein, and to any investors or prospective investors in the Certificates, and their respective advisors
and agents, including the operating advisor, or to any direct or indirect contractual counterparties (or the professional advisors
thereto) to any swap or derivative transaction relating to Borrower and its obligations, or to any Person that is a party to a
repurchase agreement with respect to the Loan, (iii) to any Rating Agency in connection with a Securitization or as otherwise required
in connection with a disposition of the Loan, (iv) to any Person necessary in connection with the exercise of any remedies hereunder
or under any other Loan Document following and during the continuance of an Event of Default and (v) to any governmental agency,
including the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the FDIC, the Securities and Exchange
Commission and any other regulatory authority that may exercise authority over Lender or any investor in the Certificates (including
the Servicer, the Securitization trustee and their respective agents and employees) or any representative thereof, and to the National
Association of Insurance Commissioners, in each case if requested by such governmental agency or otherwise required to comply with
the applicable rules and regulations of such governmental agency or if required pursuant to legal or judicial process, and (vi)
in any Disclosure Document, provided Borrower’s liability with respect to the Disclosure Document shall be limited as provided
in the last sentence of Section 9.17(a). In addition, Lender may disclose the existence of this Agreement and the information
about this Agreement to service providers to Lender in connection with the administration and management of this Agreement and
the other Loan Documents, including the Committee on Uniform Securities Identification Procedure (CUSIP). Each party hereto (and
each of their respective Affiliates, employees, representatives or other agents) may disclose to any and all Persons, without limitation
of any kind, the tax treatment and tax structure of the Loan and all materials of any kind (including opinions and other tax analyses)
that are provided to any such party relating to such tax treatment and tax structure. For the purpose of this Section, “tax
structure” means any facts relevant to the federal income tax treatment of the Loan but does not include information relating
to the identity of any of the parties hereto or any of their respective Affiliates. Notwithstanding the above, Lender shall not
provide or incorporate any information or materials relating to Guarantor or any properties owned by the Guarantor (other than
the Property) that Borrower has identified as confidential, unless (x) Lender obtains a customary confidentiality undertaking (or
deemed undertaking) from the recipient or (y) the information or materials is otherwise available in the public domain.

 

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(b)          In
connection with any Assignment, Borrower and Guarantor agree that they shall reasonably cooperate (including the formation of additional
borrower entities) at Lender’s request and at Lender’s sole cost and expense to replace the initial Note with two or
more replacement Notes (which may include component notes and/or senior and junior notes) and, if requested by Lender, deliver
to Lender, together with such replacement Notes, an opinion of counsel with respect to the due authorization and enforceability
of such replacement Notes; and/or recast the Loan into a mortgage loan and one or more levels of mezzanine loans to bankruptcy
remote equityholders of Borrower, secured by pledges of certificated equity interests in the customary manner (each, a “New
Mezzanine Loan”), which New Mezzanine Loan shall be evidenced by a complete set of loan documents that are based on the
Loan Documents, with customary conforming changes to reflect structural differences between mortgage and mezzanine debt (and the
existing Loan Documents shall likewise be amended to reflect the existence of such New Mezzanine Loan in a customary manner); or
if a mezzanine loan was originated in connection with the closing of the Loan, reallocate the respective principal amounts and/or
interest rates of the Loan and such mezzanine loan and/or create new layers of mezzanine debt; provided with respect to each of
the foregoing that (i) the aggregate principal balance and weighted average interest rates of the Notes and mezzanine notes immediately
following the consummation of any such transaction shall be the same as immediately prior thereto and shall continue to be the
same (i.e., no “rate creep”) throughout the term (except in the case of application of principal following and during
the continuance of an Event of Default) and (ii) the foregoing shall not result in any changes to the material terms of the Loan
or result in an increase in Borrower’s obligations or liabilities or a decrease in Borrower’s rights and remedies under
the Loan Documents or increase in Lender’s rights and remedies or decrease in Lender’s obligations or liabilities.
In connection with any New Mezzanine Loan, Borrower shall obtain and deliver to Lender at Lender’s sole cost and expense
(1) UCC title insurance coverage, (2) a mezzanine endorsement to its owner’s policy of title insurance, and (3) such legal
opinions and other deliverables as are customarily delivered in connection with the closing of mezzanine loans; and Borrower shall
cause the Approved Property Manager and any other applicable third parties to enter into agreements with the holder of the New
Mezzanine Loan that are substantially identical as those entered into with the initial holder of the Loan. Notwithstanding anything
to the contrary herein requiring that cooperation with Lender not result in any adverse effect on Borrower or Guarantor the parties
agree that prepayments shall be applied among the components of the Loan, including any mezzanine loan, on a pro-rata basis, unless
an Event of Default is continuing, in which case Lender shall be permitted to require that such amounts be applied sequentially,
starting with the most senior tranche, which may have the effect of increasing the weighted average interest rate of the Loan and
the New Mezzanine Loan.

 

(c)          If
requested by Lender, Borrower shall review factual information regarding Borrower, Guarantor or the Property before it is included
in any Disclosure Document provided to Borrower by Lender and shall, within 10 days of Borrower’s receipt thereof, advise
Lender in writing of any misstatement of a material fact or omission of a material fact required to be stated therein or necessary
in order to make the statements made, in the light of the circumstances under which they were made, not misleading; provided, that
if Borrower shall fail to respond within such 10-day period, Borrower shall be deemed to have confirmed the accuracy of such information.
Borrower’s liability hereunder shall be limited as provided in the last sentence of Section 9.17(a). The foregoing
shall be at Lender’s sole cost and expense. 

 

    	110

     

    

 

Section 9.25.         PATRIOT
Act Records. Lender hereby notifies Borrower that pursuant to the requirements
of the PATRIOT Act, it is required to obtain, verify and record information that identifies Borrower and Guarantor, which information
includes the name and address of Borrower and Guarantor and other information that will allow Lender to identify Borrower or Guarantor
in accordance with the PATRIOT Act.

 

Section 9.26.         Prior
Agreements. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS CONTAIN THE ENTIRE AGREEMENT
OF THE PARTIES HERETO AND THERETO IN RESPECT OF THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY, AND ALL PRIOR AGREEMENTS AMONG
OR BETWEEN SUCH PARTIES, WHETHER ORAL OR WRITTEN, INCLUDING ANY TERM SHEETS, CONFIDENTIALITY AGREEMENTS AND COMMITMENT LETTERS,
ARE SUPERSEDED BY THE TERMS OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (EXCEPT THAT ANY ORIGINATION FEE SPECIFIED IN ANY TERM
SHEET, COMMITMENT LETTER OR FEE LETTER SHALL BE AN OBLIGATION OF BORROWER AND SHALL BE PAID AT CLOSING, AND ANY INDEMNIFICATIONS,
AND THE LIKE PROVIDED FOR THEREIN SHALL SURVIVE THE CLOSING, EXCEPT TO THE EXTENT OTHERWISE PROVIDED HEREIN).

 

Section 9.27.         Publicity.
If the Loan is made, Lender may issue press releases, advertisements and other promotional materials describing in general terms
or in detail Lender's participation in such transaction, and may utilize photographs of the Property in such promotional materials
subject to the reasonable approval of Borrower in writing prior to the issuance thereof. Borrower shall not make any references
to Lender in any press release, advertisement or promotional material issued by Borrower or Guarantor, unless Lender shall have
reasonably approved of the same in writing prior to the issuance of such press release, advertisement or promotional material.
Nothing in the foregoing shall require Lender’s prior consent for any release of information with respect to this Loan,
the Loan Documents or Lender required to be made by Borrower or its Affiliates by applicable Governmental Authority or applicable
Legal Requirements (including, without limitation, any filings with the U.S. Securities and Exchange Commission); provided that
Lender shall have at least one Business Day to review and comment on any public filing made by Borrower or any of its Affiliates
that refers to Lender or any of its Affiliates by name.

 

Section 9.28.         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,
under any other Loan Document or under 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 hereunder or under 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 Notes or the other Loan Documents, or to declare a default
for failure to effect prompt payment of any such other amount.

 

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Section 9.29.         Schedules
and Exhibits Incorporated. The Schedules and Exhibits annexed hereto are hereby
incorporated herein as a part of this Agreement with the same effect as if set forth in the body hereof.

 

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Lender and Borrower are executing this Agreement
as of the date first above written.

 

	 	LENDER:
	 	 
	 	H/2 FINANCIAL FUNDING I LLC, a Delaware limited liability company
	 	 
	 	By:	/s/ Ben Doramus
	 	 	Name: Ben Doramus
	 	 	Title: Authorized Signatory
	 	 	 
	 	By:	/s/ William C. Stefko
	 	 	Name: William C. Stefko
	 	 	Title: Authorized Signatory

 

	 	BORROWER:
	 	 
	 	ARC NY1440BWY1, LLC, a Delaware limited
	 	liability company
	 	 
	 	By: ARC NY1440BWY1 Mezz, LLC,
	 	its sole member
	 	 
	 	By: New York Recovery Operating Partnership, L.P., its sole member
	 	 
	 	By: New York REIT, Inc.,
	 	its general partner
	 	 
	 	By:	/s/ Michael Ead
	 	Name: Michael Ead
	 	Title: Authorized Signatory

 

     

     

    

 

Exhibit A

 

Organizational Chart

 

     

     

    

 

Exhibit B

 

Form of Tenant Notice

 

[BORROWER’S LETTERHEAD]

 

___________, 20__

 

		Re:	Lease dated [________], 20__ between [________], as Landlord, and [_____], as Tenant, concerning premises known as [________]
(the “Building”).

 

Dear Tenant:

 

The undersigned hereby directs and authorizes
you to make all rental payments and other amounts payable by you pursuant to your lease as follows:

 

(x)          If
the payment is made by wire transfer, you shall transfer the applicable funds to the following account::

 

Bank:

Account Name

Account No.:

ABA No.:

Contact:

 

If the payment is made by check, you shall
deliver your payment to the following address: [LOCKBOX ADDRESS].

 

The instructions set forth herein are
irrevocable and are not subject to modification by us in any manner. Only [name of then-current Lender], or its successors and
assigns, may by written notice to you rescind or modify the instructions contained herein.

 

Thank you in advance for your cooperation
and if you have any questions, please call _________ at (___) ___-_________.

 

	 	Very truly yours,
	 	 
	 	 

 

     

     

    

 

Exhibit C

 

Form of Tenant Estoppel

 

TENANT ESTOPPEL CERTIFICATE

1440 BROADWAY, NEW YORK, NEW YORK

 

By LEASE AGREEMENT
dated ________________ (“Lease”), the undersigned (“Tenant”) has leased from ARC NY1440BWY1,
LLC, a Delaware limited liability company (“Landlord”) the leased premises located at 1440 Broadway, New York,
New York, 10018, which are more particularly described in the Lease (as defined below). Landlord, as owner of the property (“Property”)
of which the leased premises are a part, is has entered into an agreement to refinance the Property with [_____________] and its
affiliates and one or more mezzanine lenders (together with their respective successors and/or assigns, collectively, “Lender”)
who, as a condition to the refinance of the Property, has required this Tenant Estoppel Letter.

 

The undersigned ("Tenant")
hereby certifies as follows:

 

1.          Schedule
A contains a true, correct and complete description of the documents evidencing the lease and all amendments and modifications
thereto (collectively, the "Lease");

 

2.          Tenant
is the tenant under the Lease;

 

3.          The
terms of the Lease contained in Schedule A are true and correct;

 

4.          Tenant
is not entitled to any offsets, abatements, deductions or otherwise against the rent payable under the Lease from and after the
date hereof, including free rent periods, except as may be indicated on Schedule A;

 

5.          The
Lease is in full force and effect and, except as may be indicated on Schedule A, has not been assigned, modified, supplemented
or amended in any way and Tenant has no notice of any assignment, pledge or hypothecation by the landlord ("Landlord")
under the Lease or of the rentals thereunder;

 

6.          The
Lease represents the entire agreement between Tenant and Landlord with respect to the Premises;

 

7.          All
construction and other obligations of a material nature to be performed by Landlord have been satisfied, except as may be indicated
on Schedule A;

 

8.          Any
payments by Landlord to Tenant for tenant improvements which are required under the Lease have been made, except as may be indicated
on Schedule A;

 

     

     

    

 

9.          On
this date, there are no existing defenses or offsets which Tenant has against the enforcement of the Lease by Landlord and Tenant
has no knowledge of any event which with the giving of notice, the passage of time or both would constitute a default by Tenant,
or to the best of Tenant's knowledge, a default by Landlord, under the Lease.

 

10.        No
rental (including expense reimbursements), other than for the current month, has been paid in advance, except as may be indicated
on Schedule A;

 

12.        Tenant
has not filed on its behalf, nor to Tenant's knowledge, has any party initiated against Tenant, proceedings for relief under bankruptcy,
insolvency, or other proceedings;

 

13.        Except
as set forth on Schedule A, Tenant has no purchase, renewal, expansion, rights of first offer, rights of first refusal,
exclusives, right to lease other premises, or rights to have Landlord perform Tenant's obligations under leases of other premises..

 

14.        Tenant has no right to terminate the Lease except as set forth in Schedule A.

 

The truth and accuracy
of the certifications contained herein may be relied upon by (i) Landlord, (ii) any purchaser of the Property ("Purchaser"),
(iii) any and each lender ("Lender") of Landlord or Purchaser (or any of their respective direct or indirect owners),
and its successors, participants, assigns and transferees, (iv) any rating agency or trustee involved in a securitization of one
or more loans made by a Lender, and (v) any servicer of any such loan (collectively, the "Reliance Parties"),
and said certifications shall be binding upon Tenant and its successors and assigns, and inure to the benefit of the Reliance Parties.

 

	 	Very truly yours,
	 	 
	 	______________________________________,
	 	a ____________________________
	 	 
	 	By:	 	 
	 	 	 
	 	Name:	 	 
	 	Title:	 	 
	 	 	 
	 	Date:	 	 

     

     

    

 

SCHEDULE A

 

	(1)	Name of Tenant:  _____________________________
	 	 
	(2)	Lease Date:  _____________________________
	 	 
	(3)	List of Lease Documents (including any amendments and modifications):
	 	 
	(4)	Lease Commencement Date: _______________________________
	 	 
	(5)	Current Lease Expiration Date:  _____________________________
	 	 
	(6)	Leased Premises (Suite/Floor):  _____________________________
	 	 
	(7)	Current Monthly Base Rent:                  $__________;                  paid
    through: __________
	 	 
	 	Tenant has the following abatement(s) remaining: ____
	 	 
	(8)	Base Year for Tax and Expense Reimbursement (if applicable): _______
	 	 
	(9)	Security Deposit:  $__________
	 	 
	(10)	Percentage Rent (if applicable): _____
	 	 
	(11)	Assignees/Subtenants: ____
	 	 
	(12)	Lease Guarantor(s): __________
	 	 
	(13)	Outstanding Tenant Allowance: __________

 

	(14)	Purchase, Renewal, Expansion, etc. Rights: ________________
	 	 
	(15)	Termination Option(s): ________________________________________

 

     

     

    

 

Schedule A

 

Property

 

ALL THAT CERTAIN PLOT, PIECE OR PARCEL OF LAND, SITUATE, LYING
AND BEING IN THE BOROUGH OF MANHATTAN, CITY, COUNTY AND STATE OF NEW YORK, BOUNDED AND DESCRIBED AS FOLLOWS:

 

BEGINNING AT A POINT ON THE NORTHERLY SIDE OF 40TH STREET DISTANT
279 FEET 6 INCHES WESTERLY FROM THE NORTHWESTERLY CORNER OF AVENUE OF THE AMERICAS (FORMERLY SIXTH AVENUE) AND 40TH STREET;

 

RUNNING THENCE WESTERLY, ALONG THE NORTHERLY SIDE OF 40TH STREET,
203 FEET 10 1⁄2 INCHES TO THE INTERSECTION OF THE EASTERLY SIDE OF BROADWAY WITH THE NORTHERLY SIDE OF 40TH STREET;

 

THENCE NORTHERLY, ALONG THE EASTERLY SIDE OF BROADWAY, 128 FEET
1 1⁄2 INCHES TO THE SOUTHERLY LINE OF LOT NUMBER 191 ON "MAP OF PROPERTY BELONGING TO THE CORPORATION OF THE CITY OF
NEW YORK, SITUATED IN THE VICINITY OF THE DISTRIBUTING RESERVOIR", DECEMBER 1844 BY DANIEL EWEN, C.S., FILED IN THE OFFICE
OF THE REGISTER OF THE COUNTY OF NEW YORK;

 

THENCE EASTERLY, ALONG THE SOUTHERLY LINE OF SAID LOT, 92 FEET
8 1⁄2 INCHES TO THE WESTERLY LINE OF LOT NUMBER 189 ON SAID MAP;

 

THENCE SOUTHERLY, PARALLEL WITH AVENUE OF THE AMERICAS AND ALONG
THE WESTERLY LINE OF LOT NUMBER 189, 24 FEET 8 1⁄4 INCHES TO THE CENTER LINE OF THE BLOCK;

 

THENCE EASTERLY, ALONG THE SAME, 59 FEET 11 1⁄2 INCHES
TO THE EASTERLY SIDE OF THE PREMISES ON WHICH THE HOTEL VENDOME STANDS OR FORMERLY STOOD;

 

THENCE NORTHERLY, ALONG THE SAME, 98 FEET 9 INCHES TO THE SOUTHERLY
SIDE OF 41ST STREET AT A POINT 173 FEET 2 1⁄2 INCHES EAST OF BROADWAY AS MEASURED ALONG THE SOUTHERLY SIDE OF 41ST STREET;

 

THENCE EASTERLY, ALONG THE SOUTHERLY SIDE OF 41ST STREET, 65
FEET 1 1⁄2 INCHES TO THE WESTERLY LINE OF LOT NUMBER 184 ON SAID MAP;

 

THENCE SOUTHERLY, ALONG THE SAME, 98 FEET 9 INCHES TO THE CENTER
LINE OF THE BLOCK;

 

THENCE EASTERLY, ALONG THE CENTER LINE OF THE BLOCK, 20 FEET
6 INCHES;

 

THENCE SOUTHERLY, PARALLEL WITH AVENUE OF
THE AMERICAS, 98 FEET 9 INCHES TO THE POINT OR PLACE OF BEGINNING.

 

     

     

    

 

Schedule B

 

Exception Report

 

Sec. 4.14(a)(vii)  2nd Half of CVS leasing commission
is outstanding ($875,000)

 

Sec. 4.14(a) Innerworkings has a Termination Option

 

Sec. 4.14(a)(viii) Unfunded Obligations

		-	CVS 2nd Half Leasing Commission - $875,000

		-	CVS tenant allowance (“Tenant Fund”) for installation of Vertical Transportation System - $750,000

		-	Landlord Work for the 1st and 2nd floor as detailed in Exhibit 6.2 of the CVS Lease (To be priced)

		-	The Gap tenant allowance (“Tenant Fund”) related to tenant’s Initial Alterations- $1,079,505

		-	40th Street Lobby Renovation Soft Costs – $42,300

		-	14th & 15th Floor Prebuild Soft Costs - $107,050

		-	2nd Floor Pre-Build Construction – $455,773

		-	As described in the following chart, leasing commissions could become due if any of the tenants listed in the chart below exercise
a renewal option in its lease.

 

	Tenant	 	LCs if

Tenant

Exercises

Renewal?	 	Conditions	 	Renewal

Option
	Mizuho	 	Yes	 	If TT properly exercises a renewal option and there is no other broker representing them.	 	Yes, w/ Notice by 3/3/2025
	 	 	 	 	 	 	 
	Broadway Office Suites	 	Yes	 	If TT properly exercises a renewal option and there is no other broker representing them.	 	Yes, w/ Notice by 5/31/2021
	 	 	 	 	 	 	 
	Innerworkings	 	Yes	 	If TT properly exercises a renewal option.	 	Yes, w/ Notice by 11/30/2017
	 	 	 	 	 	 	 
	Macys	 	Yes	 	If TT properly exercises a renewal option and there is no other broker representing them.	 	Yes, w/ Notice by 7/31/2022

 

Sec. 4.17  Borrower had been a borrower and/or guarantor
pursuant to that Second Amended and Restated Credit Agreement, dated as of April 14, 2014, as amended by that certain First Amendment
to Second Amended and Restated Credit Agreement, dated as of August 27, 2015, and as may be further amended, restated modified,
consolidated, or supplemented from time to time, between New York Recovery Operating Partnership, L.P., Capital One, National Association,
as administrative agent, New York REIT, Inc., a Maryland corporation, and certain lenders party thereto.

 

     

     

    

 

Sec. 4.38 Estoppel Certificates - Sent to the following tenants:

Advance Magazine

Aquantive

Broadway Office Suites

Citi Bank

Cogent

CVS

Dell

FedEx

Innerworkings

Liz Claiborne (Kate Spade)

Macy's

Mexicue

Mizuho Capital Markets Corp.

MT News

Oren's Daily Roast

RentPath (Primedia)

Republic Clothing

StubHub

Subway

TASC

The Gap

Western Union

 

     

     

    

 

Schedule C

 

[Reserved]

 

     

     

    

 

Schedule D

 

Unfunded Obligations

 

     

     

    

 

Schedule E

 

Rent Roll

 

     

     

    

 

Schedule F

 

Material Agreements

 

That certain Service Contract between ARC
NY1440BWY1, LLC and WH CHRISTIAN & SONS INC dated as of July 18, 2014.

 

     

     

    

 

Schedule G

 

Form of Draw Request

 

This certificate (the
“Draw Request”) is delivered in connection with that certain Loan Agreement dated as of September [__], 2015
(the “Loan Agreement”), by and between H/2 FINANCIAL FUNDING LLC, (together with its successors and permitted
assigns, the “Lender”) and ARC NY1440BWY1, LLC
(the “Borrower”). Unless otherwise defined herein, capitalized terms used in this certificate shall have the
meanings set forth in the Loan Agreement.

 

[________________], in [his/her] capacity
as [_______________________] of the Borrower hereby certifies as follows:

 

		1.	Borrower requests a disbursement from the Future Funding
Component on [________], 20[__] (the “Funding Date”) in the amount of $[________] to the Operating Account.

 

		2.	The requested advance of the Future Funding Component shall
be applied solely to fund the Approved Costs.

 

		3.	Borrower has obtained partial or complete lien releases
and waivers from any contractors, subcontractors, materialmen for all Approved Costs completed as of the date hereof (which may
be conditioned on payment) and for which any prior Future Funding Advance have been previously disbursed pursuant to the Loan
Agreement and, as of the date hereof, there are no mechanics, materialmen or other Liens on the Property relating to the Approved
Costs (unless bonded as required under applicable law or otherwise in a manner reasonably satisfactory to Lender).

 

		4.	Borrower has satisfied or will satisfy prior to the Funding
Date all conditions precedent set forth in Section 1.7(b) of the Loan Agreement with respect to the Future Funding Advance.

 

		5.	Schedule A accurately sets forth the costs of the
Approved Costs with respect to which the Future Funding Advance is requested.

 

IN WITNESS WHEREOF, I have signed this certificate on the date
first written above.

 

	 	ARC NY1440BWY1, LLC
	 	 
	 	By:	ARC NY1440BWY1 Mezz, LLC, its sole member
	 	 	 
	 	 	By:	 New York Recovery Operating Partnership, L.P., its sole member
	 	 	 	 
	 	 	 	By:	 New York REIT, Inc., its general partner
	 	 	 	 	 
	 	 	 	 	By:	 
	 	 	 	 	 	Name:
	 	 	 	 	 	Title:

 

     

     

    

 

Schedule H

 

Approved Future Funding Budget

 

[See attached]

 

     

     

    

 

Schedule I

 

Approved Base Building
Work

 

[see attached]

 

     

     

    

 

Schedule J

 

Retail Unit

 

	Current Tenant	 	Suite	 	SF	 
	 Western Union Financial Services	 	Retail 0101/Mezz	 	 	6,004	 
	 Oren's Time Square LLC	 	Retail 0103	 	 	1,149	 
	 CVS	 	Retail 0104/105	 	 	22,185	 
	 Vacant	 	Retail 0104B	 	 	911	 
	 M T News Inc.	 	Retail 0106	 	 	808	 
	 Mexicue 1440, LLC	 	Retail 0107	 	 	1,142	 
	 Federal Express	 	Retail 0109	 	 	2,509	 
	 Subway Real Estate Corp	 	Retail 0110	 	 	1,760	 
	 Vacant	 	Retail 0111	 	 	780	 
	 Vacant	 	BSMT	 	 	15,652	 
	Total	 	 	 	 	52,900	 

 

     

     

    

 

Schedule K

 

Deemed Consent Notice
Parties

 

To:  H2Operations@h2cp.com

cc: dottensoser@h2cp.com, etam@h2cp.com, bgross@h2sas.com,
creichle@h2sas.com, wstefko@h2cp.com

 

     

     

    

 

Schedule L

 

Approved Servicers

 

Bank of America, N.A.

Berkadia Commercial Mortgage

C-III Asset Management

Midland Loan Services

Pacific Life Insurance Company

Principal Global Investors

Prudential Asset Resources

Situs

Strategic Asset Services LLC

TriMont Real Estate

Wells Fargo Bank, N.A.

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