Document:

EXECUTION COPY

 

LOAN AGREEMENT

 

THIS LOAN AGREEMENT
(this “Agreement”) is made effective as of the 12th day of July, 2012, by and between PEOPLE’S
UNITED BANK, a federal savings bank having an office at 850 Main Street, Bridgeport, Connecticut 06604 (the “Lender”),
ARC NYKNGHW001, LLC, a Delaware limited liability company, ARC NYKNGHW002, LLC, a Delaware limited liability company,
and ARC NYKNGHW003, LLC, a Delaware limited liability company, each having an address c/o American Realty Capital, 405 Park
Avenue, 15th Floor, New York, New York 10022 (collectively, the “Borrower”), and NEW YORK RECOVERY OPERATING
PARTNERSHIP, L.P., a Delaware limited partnership, having an address c/o American Realty Capital,
405 Park Avenue, 15th Floor, New York, New York 10022 (the “Guarantor”).

 

RECITALS:

 

A.           The
Borrower has made a request to the Lender for a permanent mortgage loan in the original principal amount of Twenty Million Two
Hundred Thousand and 00/100 Dollars ($20,200,000.00) (the “Loan”).

 

B.           The
Lender desires to make the Loan, and the Borrower desires to enter into the Loan, all upon the terms and conditions hereinafter
set forth.

 

NOW, THEREFORE,
the parties mutually agree, represent and warrant as follows:

 

ARTICLE
I  THE LOAN

 

1.1
- Type and Amount of Loan.  Subject to the satisfaction of the terms and conditions hereof and at the
discretion of the Lender, and in reliance on the representations and warranties contained herein and in the other Loan Documents
(as hereinafter defined), the Lender agrees to furnish the Loan to the Borrower, to be secured by, among other things, (a) a first
mortgage (the “Mortgage”) encumbering the Borrower’s fee simple ownership of the real property commonly
known as 1100-1114 Kings Highway, 2067-2073 Coney Island Avenue and 2091-2097 Coney Island, Brooklyn, New York and being more
particularly described in Schedule A attached hereto and the buildings and other improvements now or hereafter located
thereon (the “Property”). The Loan shall be used to (a) refinance existing debt on the Property, and (b) pay
related closing expenses.

 

1.2
- Interest and Repayment of Principal of Loan.  A copy of the Amended and Restated Promissory Note evidencing
the Loan (the “Note”) is attached hereto as Schedule B, and contains all the terms relative to
the repayment of principal, the payment of interest and the rates at which interest shall accrue.

 

1.3
- Guaranty of Recourse Obligations.   The
Guarantor shall unconditionally guaranty certain aspects of the Loan, and the payment and obligations of Borrower under the Interest
Rate Swap Agreement (as such term is defined in the Note), on a limited recourse basis pursuant to

 

Loan Agreement

 

    	 

    	 

    

 

the
terms of a limited guaranty (the “Guaranty of Recourse Obligations”), in form and substance acceptable to the
Lender. 

 

1.4
- Maturity. The entire balance of the Loan shall be due and payable on August
1, 2017 (the “Maturity Date”), if not sooner paid or accelerated.

 

ARTICLE
II RESERVES

 

2.1
- Tax and Insurance Reserve Account.  

 

(a)          On
the date hereof, Lender shall establish the following account for purposes of holding the funds to be deposited by Borrower pursuant
to Section 5 of the Mortgage and this Section 2.1: a “Tax and Insurance Reserve Account” (the “Tax and Insurance
Reserve Account”). The Tax and Insurance Reserve Account shall be a custodial account established by Lender and shall
not constitute a trust fund. At Lender’s option, funds deposited into the Tax and Insurance Reserve Account may be commingled
with other money held by Lender or its servicer. Borrower acknowledges and agrees that the Tax and Insurance Reserve Account is
subject to the sole dominion, control and discretion of Lender, its authorized agents or designees, subject to the terms hereof.
Borrower shall not have the right to make any withdrawals from the Tax and Insurance Reserve Account, all of such rights being
reserved to, and solely exercised by, Lender pursuant to and in accordance with the terms of this Agreement and the other Loan
Documents.

 

(b)          As
set forth further in Section 5 of the Mortgage, Borrower shall deposit in escrow with Lender, together with and in addition to
the monthly payments of principal and interest payable under the terms of the Note, a sum equal to one twelfth of the annual real
estate taxes, insurance premiums and other charges and assessments for the Property, as set forth further in Section 5 of the Mortgage.
On the date hereof, Borrower has deposited in the Tax and Insurance Reserve Account an amount sufficient to cover necessary accrued
tax deposits, insurance premiums and other charges and assessments.

 

(c)          Notwithstanding
the foregoing, the requirements set forth in this Section 2.1 for the Borrower to pay deposits for insurance premiums shall not
be applicable with respect to the Property, as long as and only to the extent that the following conditions are satisfied: (i)
satisfactory evidence with respect to the timely payment of the insurance premiums is furnished to Lender within the time frames
otherwise required in the Mortgage or otherwise promptly upon the request of Lender; and (ii) no Event of Default has occurred
and is continuing under this Agreement or any of the other Loan Documents.

 

2.2 - Lockbox Agreement.
On or prior to the closing of the Loan, (i) Lender and Borrower shall enter into a Lockbox Service Agreement (the “Lockbox
Agreement”) pursuant to which and in accordance with Lender shall rent a post office box (the “Lockbox”)
for the benefit of Borrower, and (ii) the Borrower shall instruct all tenants (the “Existing Tenants”) under
the Existing Leases (as hereinafter defined), as well as any and all new tenants at the Property, to send any and all rent payments
to be made by the Existing Tenants to the Borrower under the Existing Leases, as well as any and all rent payments to be made by
any and all such

 

    	2

    	 

    

 

new tenants, directly
to the Lockbox. The Borrower further acknowledges and agrees that: (a) the monthly payments of interest-only due under the Loan
shall automatically be deducted from the funds in the Lockbox prior to the deposit of such funds in the Deposit Account (as such
term is defined in the Lockbox Agreement); (b) if, for any reason, the amount of the funds available in or from the Lockbox is
insufficient to pay the monthly installments of interest (and any other sums) then due and owing under the Loan Documents, the
Borrower shall timely pay to Lender the amount of the shortfall; (c) Lender shall have the right to apply the funds in or from
the Lockbox (and the Deposit Account) towards the Loan upon the occurrence of an Event of Default (as hereinafter defined), in
whatever order or priority Lender shall determine; and (d) the funds in or from the Lockbox (and the Deposit Account) shall serve
as additional collateral for the Loan.

 

2.3
- Interest on Tax and Insurance Reserve Account.  Borrower shall not be entitled to any earnings or interest,
if any, on funds deposited into the Tax and Insurance Reserve Account.

 

2.4
- Application upon Event of Default.  Notwithstanding anything to the contrary contained herein or in
any of the other Loan Documents, upon the occurrence of an Event of Default: (i) any amounts deposited into or remaining in the
Tax and Insurance Reserve Account, the Lockbox and/or the Deposit Account shall be for the account of Lender and may be withdrawn
by Lender to be applied in any manner towards the Loan as Lender may elect in Lender’s discretion, and (ii) Borrower shall
have no further rights in respect of the Tax and Insurance Reserve Account, the Lockbox and/or the Deposit Account.

 

ARTICLE
III COLLATERAL

 

3.1
- Collateral.  In addition to other items of collateral or security as provided elsewhere herein, or in
the other Loan Documents, the Loan shall be secured by:

 

(a)          Mortgage.  A
first and valid lien upon the Borrower’s fee simple interest in the Property, which Property is known by the street addresses
of 1100-1114 Kings Highway, 2067-2073 Coney Island Avenue and 2091-2097 Coney Island Avenue, Brooklyn, New York, and Property
consists of approximately 0.81 acres of land improved with three (3) retail/office buildings containing approximately 61,318 square
feet of gross leasable area.

 

(b)          Security
Agreement. A first and valid blanket lien on and security interest in and to all (i) revenues, receipts, income, accounts,
accounts receivable and other receivables of Borrower including, without limitation, revenues, income receivables and accounts
relating to or arising from rentals, rent equivalent income, income and profits from the Property; (ii) all general intangibles,
chattel paper instruments, letters of credit and inventory and all other assets of Borrower; and (iii) all personal property and
fixtures of Borrower, whether now owned or later acquired.

 

(c)          Rents
and Leases.

 

(i)          A
general assignment of rents and leases, in form and substance satisfactory to Lender of all leases and rents now existing or arising
in the future. The

 

    	3

    	 

    

 

form and
content of all leases shall be acceptable to Lender and its counsel. Each and every lease or rental agreement involving any part
of the Property must be subordinate to the mortgage and any and all modifications, renewals, extensions and/or replacements of
said mortgage. Borrower shall not: (a) enter into any lease, sublease or other rental agreement concerning leased space in excess
of 5,000 square feet; or (b) amend or modify any leases in any material manner (as long as the same shall not create a default
under Section 5.1(g) of this Agreement), which shall include, but not be limited to, any decreases in the rent, changes in the
term or changes that otherwise increase the landlord’s obligations thereunder or decrease the tenant’s obligations
thereunder, in each of the cases under the foregoing sub-paragraphs (a) and (b) without Lender’s prior written approval of
said lease or rental agreement (or amendment or modification), which approval shall not be unreasonably withheld, conditioned or
delayed, and in no event shall any lease or rental agreement contain any option or rights of first refusal to purchase the Property.
Borrower shall cause any tenant and/or occupant whose lease is not automatically subordinate to the Lender’s mortgage on
terms and conditions acceptable to the Lender to duly execute and deliver to the Lender a subordination, ratification, non-disturbance
and attornment agreement, which agreement shall be satisfactory and in form and substance to the Lender and shall provide, among
other terms, that (i) tenant acknowledges the assignment of its lease or rental agreement to the Lender; (ii) upon notification
from the Lender, the tenant and/or occupant shall pay, without set off or deduction, all rent and other sums due under its lease
and/or rental agreement directly to the Lender or its designee regardless of whether or not said tenant or occupant receives a
notice to the contrary from the Borrower; (iii) the Lender shall not be responsible for refunding any security deposits unless
the Lender has actually received said deposits; (iv) that the parties will not modify, amend, cancel, surrender, or pledge or assign
the lease without the Lender’s consent; and (v) that the tenant will not terminate the lease by reason of landlord’s
default without at least ten (10) days’ written notice to the Lender and an opportunity to cure the default; and containing
such other provisions as the Lender may reasonably require. If any lease approved by the Lender provides that the tenant under
that lease is entitled to a nondisturbance agreement from the Lender the Lender agrees to issue such nondisturbance as long as
such tenant is not in any way affiliated with or owned or controlled by Borrower. Lender agrees, however, not to exercise any such
assignments until such time as an Event of Default exists hereunder or under the Loan Documents. Attached hereto as Schedule
C is a true and accurate rent roll (the “Rent Roll”) of tenants currently occupying any portion of the Property.

 

(ii)         After
closing, all new leases at the Property and the tenants thereunder, and any renewals or amendments to any of the Existing Leases
shall be subject to the Lender’s prior written approval (all such new leases, and all such renewals or amendments, “Approved
Leases,” and all such new tenants thereunder, the “Approved Tenants”); provided, however, Lender’s
approval shall not be required with respect to the new leases concerning the leasing of space of less than 5,000 square feet nor
with respect to the exercise of the extension of the term of any Approved Leases pursuant to and in accordance with an option to
extend as set forth in any such Approved Leases.

 

    	4

    	 

    

 

(iii)        Lender
is authorized to notify lessees of the existence of such assignments. Lender agrees, however, not to exercise any such assignments
until such time as a default or event of default exists under the Loan documents beyond any applicable cure periods under the documents
evidencing and securing the Loan.

 

(iv)         If
the Lender should so require, the written lease subordination, ratification and attornment agreements described hereinabove shall
be recorded in the appropriate land records.

 

(d)          Interest
Rate Swap. Borrower shall at all times (at Borrower’s sole cost and expense) maintain in effect until the Loan
is fully satisfied the Interest Rate Swap Agreement (as such term is defined in the Note) with an Acceptable Counterparty (as such
term is defined below in Section 8.22 hereof), and otherwise in accordance with the terms and conditions outlined in Section 8.22
hereof. Borrower hereby assigns to Lender all of its rights and benefits (but none of its obligations or liabilities, if any) in,
to and under the Interest Rate Swap Agreement and upon Lender’s request shall execute and deliver any additional documents
required by Lender to further effectuate such assignment. Borrower shall not assign its interest under the Interest Rate Swap Agreement
to any party other than Lender. Borrower shall use the sums payable to Borrower under the Interest Rate Swap Agreement solely for
Borrower’s liabilities and obligations first, with respect to this Agreement and the other Loan Documents and second, other
expenses directly attributable to the operation of the Property and none of such sums payable to Borrower under the Interest Rate
Swap Agreement shall be diverted by Borrower and/or utilized for any other purpose unless all such current liabilities and obligations
to Lender and current expenses attributable to the operation of the Property have been fully paid and satisfied. The Interest Rate
Swap Agreement and the Loan Documents are cross-defaulted and cross-collateralized. The failure of Borrower to comply with this
paragraph shall constitute a misappropriation of funds.

 

(e)          Additional
Security.  In addition, the Loan shall be secured by such additional collateral documents relating to the Property
and the improvements thereon as the Lender may require.

 

(f)          Loan
Documents. All of the foregoing, and all other documents executed by Borrower or Guarantor in connection with the Loan
being collectively referred to as the “Loan Documents”.

 

ARTICLE
IV REPRESENTATIONS AND WARRANTIES

 

To induce the Lender
to enter into this Agreement and make the Loan provided for herein, the Borrower and Guarantor (where applicable) hereby represent
and warrant as of the date hereof and further represent and warrant throughout the term of this Agreement as follows:

 

4.1
- Organization.  The Borrower is a limited liability company, and the Guarantor is a limited partnership,
each duly organized, validly existing and in good standing under the laws of the state of its organization, has the power and
authority to own its own properties and assets and

 

    	5

    	 

    

 

to carry on its business
as now being conducted and is qualified to do business in every jurisdiction wherein such qualification is necessary.

 

4.2
- Authority.  Each of the Borrower and the Guarantor, as the case may be, has the power and authority
to execute, deliver and perform this Agreement (and all of the other Loan Documents to which it is a party, including, but not
limited to the Note, the Mortgage and the Interest Rate Swap Agreement) and to borrow hereunder, and to execute and deliver all
documents and instruments required to be furnished by the Borrower or the Guarantor, as the case may be, hereunder, and the execution,
delivery and performance of this Agreement, and all documents and instruments as may be required and any borrowings hereunder
have been duly authorized by all requisite action.

 

4.3
- Binding Effect.  Borrower is not obligated under any contract or agreement or subject to any charter
or other restriction which materially and adversely affects its respective business, properties, assets, or financial condition.
The execution, delivery and performance of this Agreement, and all such other agreements and documents and instruments as may
be required hereunder and any covenant or condition contained herein or therein will not violate any provision of law, any order
of any court or any rule, regulation or order of any governmental agency, the Operating Agreement of the Borrower, any agreement
or other instrument to which the Borrower is a party, or by which the Borrower or any of its properties or assets are bound; and
will not conflict with, result in a breach of or constitute a default under any indenture, agreement or other instrument, or result
in the creation or imposition of any lien, charge or encumbrance of any nature whatsoever upon any of the properties or assets
of the Borrower or constitute grounds for the acceleration of any performance or compliance obligation of the Borrower under any
such indenture, agreement or instrument. When so executed and delivered, this Agreement, and all such other agreements and documents
described herein will constitute the legal, valid and binding obligation of the Borrower enforceable in accordance with their
terms.

 

4.4
- Absence of Adverse Change: Financial Statements.  There has been no material adverse change in the Borrower’s
or the Guarantor’s financial condition or operations since the date of the most recent financial statements of the Borrower
and the Guarantor which have been delivered to the Lender (the “Financial Statements”). The Financial Statements
are correct and complete and accurately present the financial condition and operations of the Borrower and the Guarantor as of
the date thereof, and for the period then ended, and to the Borrower’s and the Guarantor’s best knowledge, were prepared
in accordance with generally accepted accounting principles applied on a consistent basis with prior fiscal years.

 

4.5
- Absence of Liens.  All of the properties and assets of the Borrower and Guarantor are free and clear
of mortgages, pledges, liens, charges and other encumbrances except such as are described in the Financial Statements and the
Borrower and Guarantor have good and marketable title to their respective assets and properties.

 

4.6
- Litigation.  There is no litigation or administrative investigation or proceeding pending or, to the
Borrower’s and the Guarantor’s best knowledge, threatened against the Borrower or the Guarantor, whether or not covered
by insurance, and neither Borrower nor

 

    	6

    	 

    

 

Guarantor is in default
with respect to any outstanding judgment, writ, order or decree issued by any court or governmental agency.

 

4.7
- Absence of Default.

  

(a)          The
Borrower and Guarantor are not now in default in any material respect in the performance of or compliance with any covenant or
condition of any material agreement or obligation to which the Borrower and/or Guarantor are a party or by which any of them is
bound.

 

(b)          The
Existing Leases are in full force and effect, with no defaults existing thereunder.

 

4.8
- Taxes.  The Borrower and Guarantor have filed or caused to be filed all federal, state, local and foreign
tax returns which are required to be filed, and have paid or caused to be paid all taxes as shown on such returns or on any assessment
received by the Borrower or Guarantor to the extent that such taxes have become due, and the Borrower and Guarantor have no knowledge
of any material liability (or basis therefor) for any tax to be imposed on the Borrower or Guarantor or any of their respective
assets or properties for which adequate provision has not been made in the Financial Statements.

 

4.9
- ERISA Compliance.  The Borrower and the Guarantor are in compliance with the applicable provisions of
ERISA. Neither the Borrower, the Guarantor nor any subsidiary of either of them has incurred any unremedied accumulated funding
deficiency within the meaning of ERISA or any unsatisfied liability to the Pension Benefit Guaranty Corporation established under
ERISA in connection with any employee pension plan established or maintained by the Borrower under the jurisdiction of ERISA.
No Reportable Event or Prohibited Transaction (as defined in Section 4043 of ERISA) has occurred with respect to any plan administered
by the Borrower, Guarantor or any subsidiary of either of them, or to the knowledge of the Borrower or any subsidiary, any other
plan under the jurisdiction of ERISA.

 

4.10
- Contracts, Permits and Approvals.  To Borrower’s knowledge, all required permits, contracts and
approvals required in connection with the current use and occupancy of the Property by all municipal, state and federal ordinances,
regulations, laws and authorities have been acquired and are in full force and effect and are not in violation as of the date
hereof.

 

4.11
- Absence of Material Liabilities.  There are no material liabilities, obligations or indebtedness of,
the Borrower or the Guarantor which were not adequately disclosed or reflected fully in the Financial Statements. Since the date
of the most recent Financial Statements, neither Borrower nor the Guarantor has incurred, assumed or had asserted against any
of them any material liabilities, obligations or claims of any nature other than:

 

(a)          Liabilities,
obligations or claims adequately disclosed in the Financial Statements;

 

(b)          Indebtedness
incurred and contractual obligations assumed under purchase orders and sales orders arising in the ordinary course of business;

 

    	7

    	 

    

 

(c)          Standard
product warranties; and

 

(d)          Obligations
arising under this Agreement, or all other agreements, instruments or documents required hereunder.

 

4.12
- Indebtedness and Leases.  All existing indebtedness of the Borrower and the Guarantor, other than obligations
to the Lender (i) for money borrowed under any credit agreement, loan agreement, promissory note, mortgage or similar agreement
or (ii) under any guaranty, are described in the Financial Statements. The Financial Statements also contain a list and description
of all leases and similar agreements or arrangements (including commitments classified as capital leases under generally accepted
accounting principles) under which the Borrower or Guarantor is an obligor, if any. Except as described in the Financial Statements,
neither the Borrower nor the Guarantor is an obligor under any material lease or contract of any kind. All parties (including
the Borrower) to each such material lease or contract have complied with the provisions of such lease, contract or other commitment;
no party is in default under any term or provision thereof, and no event has occurred which, but for the giving of notice or the
passage of time, or both, would constitute a default.

 

4.13
- Other Material Agreements.  Neither the Borrower nor the Guarantor are a party to, nor are they bound
by, any contract, agreement or instrument, or subject to any restrictions, materially affecting their ability (financial or otherwise)
to perform any of their respective obligations under this Agreement, or any other agreement or instrument required hereunder.

 

4.14
- Compliance with Laws.  The Borrower and Guarantor have complied with all applicable Laws with respect
to (i) use and occupancy of the Property; (ii) the conduct of its business; and (iii) the use, maintenance and operation of the
real and personal properties owned or leased by the Borrower and Guarantor in the conduct of their respective businesses.

 

4.15
- No Finder’s Fee.  Borrower represents that the only broker involved
in the Loan on behalf of Borrower is Meridian Capital and Borrower agrees to pay any and all commission due to such broker. No
brokerage commission or compensation (whether to Meridian Capital or anyone else) is to be paid by the Lender in connection with
the Loan. The Borrower has not authorized nor employed any other person to act as agent, broker, dealer or otherwise in
connection with the securing of the Lender’s agreement to make the Loan, and no finder’s fees or other such sums are
due in connection with the making of the Loan. Borrower hereby agrees to indemnify the Lender against
any claim for a brokerage commission or compensation due Meridian Capital or any other broker claiming through Borrower.

 

4.16
- Bankruptcy.  As of the date hereof, no proceeding in bankruptcy, or for reorganization of the Borrower
or the Guarantor, or the readjustment of any of their respective debts under the Bankruptcy Code, as amended, or any part thereof,
or under any other laws, whether state or federal, for the relief of debtors has been commenced by the Borrower or the Guarantor
or has been commenced against the Borrower or the Guarantor. As of the date hereof, no receiver or trustee has been appointed
for the Borrower or the Guarantor, or for any substantial part of the assets of the Borrower or the Guarantor, and no proceeding
has been instituted for the dissolution or the full or partial liquidation of the Borrower or the Guarantor.

 

    	8

    	 

    

 

4.17
- Accuracy of Disclosure.  No schedule attached to this Agreement or written information supplied by or
representation or warranty made by the Borrower or the Guarantor in this Agreement, and no statement or document given or to be
given to the Lender pursuant hereto or with respect to the transactions contemplated herein, contains or will contain any untrue
statement of material fact, or omits to state or will omit to state any material fact necessary to make the statements therein
not misleading.

 

4.18
- Property Leases.  Attached hereto as Schedule C is the Rent Roll which is hereby
certified as true and accurate by the Borrower. The Borrower further represents and warrants that all leases shown on Schedule
C (the “Existing Leases”) are in full force and effect, without modification or, to Borrower’s
knowledge, default by either landlord or tenant, and that, to Borrower’s knowledge, no such tenant has any claim or offset
it could assert against payment of rent and no rental amounts have been prepaid by more than one month.

 

4.19
- Survival of Representations.  All representations made in connection herewith shall be deemed to be
relied upon by the Lender, notwithstanding any investigation hereinbefore or hereinafter made and shall survive as long as any
amounts are owed hereunder. Upon full payment of all obligations of the Borrower to the Lender and the termination of the Loan,
whether arising under this Agreement or any other agreement with the Lender, the representations and warranties and covenants
and other continuing agreements of the Borrower and the Guarantor shall terminate and be of no force and effect. By making a request
to the Lender for a loan or advance hereunder, the Borrower shall be deemed to warrant that all of the representations and warranties
contained in this Agreement are true and correct as of the date of such request.

 

ARTICLE
V  COVENANTS AND CONTINUING AGREEMENTS

 

5.1
- Affirmative Covenants.  The Borrower hereby covenants and agrees that from the date hereof and until
payment in full of the principal of and the interest on the Loan and the termination of this Agreement, unless the Lender shall
otherwise consent in writing, the Borrower will perform and observe the following covenants and agreements:

 

  (a)          Punctual
Payment. Pay the principal of and interest on the Loan at the place and in the manner stated in the Note.

 

  (b)          Payment
of Taxes, etc. Pay all taxes, assessments, governmental charges or levies imposed upon the Borrower or upon its income or profits
or upon the Property prior to the date on which interest or penalties attach thereto, and all lawful claims which, if unpaid, might
become a lien or charge upon the Property.

 

  (c)          Notice
of Default. Notify the Lender in writing as soon as possible and in any event within five (5) business days after obtaining
knowledge of the occurrence of an Event of Default as defined in this Agreement by providing the Lender with statement of the Borrower
setting forth the details of such Event of Default.

 

    	9

    	 

    

 

  (d)          Change
of Ownership. Immediately notify the Lender of any change of ownership of the Borrower and any change of ownership affecting
the control of the Borrower.

 

  (e)          Inspection
by Lender. Subject to the rights of the Approved Tenants under their respective Approved Leases, and upon not less than thirty-six
(36) hours’ notice, the Borrower shall allow any representative of the Lender to visit and inspect the Property, to examine
the books of account and other records and files of the Borrower, to make copies thereof and to discuss the affairs, business,
finances and accounts of the Borrower with its officers and employees, all at reasonable times during Borrower’s regular
business hours, but no more frequently, provided an Event of Default has not occurred, than once per calendar year (and as often
as the Lender may request after the occurrence of an Event of Default). From time to time, Borrower shall permit the Lender to
obtain additional appraisals of all or any portion of the Property, and if an appraisal is commissioned following an Event of Default,
then Borrower shall pay to the Lender within ten (10) business days of demand all costs of such appraisal. Appraisals shall be
the property of the Lender and the Lender will have no obligation to disclose the content of any appraisals to any person or entity,
including Borrower or Guarantor.

 

  (f)          Financial
Statements. Annually, the Borrower shall furnish to the Lender or cause to be furnished (i) within (15) days of filing, the
Borrower’s and Guarantor’s consolidated 10-K (and, if not publicly available, signed copies of the Borrower’s
and Guarantor’s federal, state, and local tax returns, together with all supporting schedules), and (ii) within forty-five
(45) days of the end of each calendar year, the current rent roll for the Property and the current operating statements for the
Borrower and the Guarantor, each prepared and certified by the Borrower as true, accurate and compete in all material respects,
and all in such detail as the Lender may reasonably require, and (iii) such other financial information in such detail as Lender
may reasonably require within ten (10) days of Lender’s request for same.

 

  (g)          Debt
Service Coverage Ratio; Loan to Value Ratio. At all times during the term of the Loan, (i) the Debt Service Coverage Ratio
(as hereinafter defined) shall not be less than 1.30:1; and (ii) the outstanding principal balance of the Loan shall not exceed
fifty-five per cent (55%) of the then current appraised value of the Property. If at any time during the term of the Loan, the
principal balance of the Loan shall exceed fifty-five per cent (55%) of the then current appraised value of the Property, the Borrower
shall, at its option, (x) reduce the principal balance of the Loan by the amount of such excess, or (y) deliver to the Lender additional
collateral in an amount equal to such excess, which additional collateral shall be satisfactory in all respects to the Lender.
The Borrower shall execute such documentation as the Lender shall require in connection with the delivery of such additional collateral
and pay the reasonable fees and expenses of the Lender’s counsel in connection therewith. As used herein, the term “Debt
Service Coverage Ratio” shall mean the ratio of Net Operating Income (as hereinafter defined) from the Property to Debt
Service (as hereinafter defined) on the Loan, as determined by the Lender in its sole and absolute discretion. As used herein,
the term “Net Operating Income” shall mean rental income from the Property, less reasonable and customary operating
expenses. As used herein, the term “Debt Service” shall mean payments of principal and interest at the interest
rate hereunder based upon a 25-year amortization schedule.

 

    	10

    	 

    
 

  (h)          Security
Deposits. All security deposits currently held by or hereafter received by the Borrower in connection with any lease (or other
rental or occupancy agreement) of all or any portion of the Property are to be maintained by the Borrower with the Lender.

 

  (i)          Operating
Account. The operating account for the Property (the “Operating Account”), and any security deposit account
for the Property, will be maintained by the Borrower with the Lender.

 

  (j)          Reserves.
Borrower shall comply with all of the applicable terms and conditions of Article 2 of this Agreement.

 

  (k)         
Lockbox Agreement. Borrower shall comply with all of the terms and conditions of Section 2.2 of this Agreement.

 

  (l)          Certificates
of Occupancy. The Borrower shall: (a) close out, within thirty (30) of the date of this Agreement, an open fire alarm permit
relating to the Annie Sez Space (as hereinafter defined); (b) maintain in full force and effect, at all times prior to the obtaining
of permanent certificates of occupancy, the temporary certificates of occupancy in place for the portions of the Property identified
by street address of 1100-1114 Kings Highway, Brooklyn, New York and 2067-2073 Coney Island Avenue, Brooklyn, New York; and (c)
obtain, within six (6) months of the date of this Agreement, permanent certificates of occupancy, acceptable to Lender, for the
entire Property, including, but not limited to, for the portions of the Property identified by street address of 1100-1114 Kings
Highway, Brooklyn, New York, 2067-2073 Coney Island Avenue, Brooklyn, New York and 2091-2097 Coney Island Avenue, Brooklyn, New
York. For purposes hereof, the term “Annie Sez Space” shall mean the portion of the Property demised under that
certain Lease Agreement, dated August 30, 1995, between Gilbert Helman d/b/a A.R.C. Building Company of 16 Court Street, as landlord
(and predecessor-in-interest to Borrower), and BIG M, Inc., as tenant, as amended.

 

5.2
- Negative Covenants.  The Borrower covenants that from the date hereof until payment in full of the principal
of and interest on the Loan and the termination of this Agreement, unless the Lender shall otherwise consent in writing, the Borrower
shall not directly or indirectly:

 

  (a)          Liens.
Incur, create, assume or permit to exist any mortgage, lien, pledge, security interest or other encumbrance upon or in respect
of the Property, whether now owned or hereafter acquired, other than mortgages, liens, pledges, security interests and encumbrances
in favor of the Lender.

 

  (b)          Transfer
of Property. Sell, transfer or convey any interest in the Property except as permitted in Section 10 of the Mortgage.

 

  (c)          Change
in Control. Sell, transfer ownership or otherwise change the majority ownership interests, or change the management or control
of the Borrower except as permitted in the Mortgage or in this Agreement.

 

    	11

    	 

    

 

5.3
- Survival.  All covenants and continuing agreements contained in this Article 5 shall survive as long
as any amounts are due and owing under the Note, the Mortgage or any Loan Document.

 

ARTICLE
VI  ENVIRONMENTAL PROVISIONS

 

6.1
- Notification of the Lender.  The Borrower shall promptly notify the Lender in writing of the occurrence
of any of the following:

 

  (a)          any
release, discharge, spillage, emanation, uncontrolled loss or seepage of any Hazardous Substance on or from any real property owned
or operated by the Borrower;

 

  (b)          any
order, notice of violation or other action by the New York Department of Environmental Conservation (the “DEC”),
the United States Environmental Protection Agency (the “EPA”) or any similar entity pertaining to any alleged
violation of any Environmental Law (as that term is defined in Section 6.4 hereof) by the Borrower or any alleged violation of
any Environmental Law occurring on any real property owned or operated by the Borrower; or

 

  (c)          any
action by any party seeking to enforce any Environmental Law or seeking damages or other relief based on the Borrower’s alleged
violation of any Environmental Law or any pollution or contamination caused by the Borrower or located on or emanating from any
real property owned or operated by the Borrower.

 

The Borrower shall
provide the Lender with copies of all written notices, orders, summonses, correspondence and other similar items delivered to or
served upon the Borrower pertaining to any of the foregoing. Upon request, the Borrower shall furnish to the Lender or its designee,
copies of all correspondence from the DEC, the EPA or any similar entity to the Borrower (other than routine mass informational
mailings) and, shall direct such entity to send copies of all such correspondence directly to the Lender. Upon request, the Borrower
shall furnish to the Lender copies of all correspondence from the Borrower to the DEC, the EPA, or any similar entity, copies of
all periodic reports required by any Environmental Law or any Permit (as that term is defined in Section 6.4 hereof) and copies
of all records, forms and documents which the Borrower is required to produce or maintain pursuant to any Environmental Law or
any Permit.

 

6.2
- Remediation of Contamination.  In the event that any real estate owned or operated by the Borrower is
presently or in the future contaminated by Hazardous Substances or there occurs or has occurred any release, leakage, spillage,
emanation, uncontrolled loss, or seepage of any Hazardous Substance on any real property owned or operated by the Borrower for
which the State of New York or the United States of America requires remediation, the Borrower, at its sole cost and expense,
shall immediately take all actions required by the State or the federal government to mitigate the effects thereof.

 

6.3
- Indemnification.  The Borrower and the Guarantor agree to indemnify the Lender against, to hold the
Lender harmless from, and to reimburse the Lender for, any losses, claims,

 

    	12

    	 

    

 

demands, damages, fines,
penalties, liabilities (joint or several), costs and expenses (including, without limitation, reasonable fees and expenses of legal
counsel for the Lender, consultant fees and expenses of investigation and laboratory costs) to which the Lender may be subjected,
or which the Lender may pay, incur or sustain, in consequence of:

 

(a)          any
presence, discharge, spillage, emanation, uncontrolled loss, seepage or filtration of any Hazardous Substance upon the Property
in violation of any Environmental Law,

 

(b)          the
violation of any law, statute, ordinance, regulation or similar standard related to environmental protection, pollution control,
hazardous waste or other waste by the Borrower or occurring upon the Property, which violation has a material adverse effect on
the financial condition of the Borrower or upon the Property, or

 

(c)          any
personal injury (including wrongful death) or damage to property (whether real or personal) caused, directly or indirectly, by
an occurrence described in (a) or (b) above, provided, however, that the foregoing indemnity shall not apply to any claims which
result from Lender’s gross negligence or willful misconduct.

 

The provisions of this
paragraph shall be in addition to any other obligations of the Borrower and/or Guarantor to the Lender whether arising by contract,
at law, in equity or by statute. The provisions of this paragraph shall survive payment of the Loan, foreclosure or release of
any mortgages or security interests securing the Loan and termination of this Agreement.

 

Notwithstanding anything to the contrary
contained in this Section 6.3, Borrower shall have no obligations under this Section 6.3: (i) for conditions caused by the Lender
or the successors or assigns of the Lender following acquisition of title by the Lender Party or its successors or assigns; or
(ii) after all of the following conditions have been satisfied: (a) there has been no change in any Environmental Law prior to
the date on which the Loan is paid in full the effect of which would be to make a lender/mortgagee liable with respect to any condition
or matter for which the Lender is entitled to be indemnified notwithstanding the fact that the Indebtedness was repaid in full;
(b) Lender shall have received, at Borrower’s sole cost and expense, an up-dated environmental inspection report for the
Property in scope satisfactory to Lender, and prepared by an independent consulting firm/environmental engineer acceptable to Lender,
dated no more than thirty (30) days prior to the date the same is delivered to Lender, showing that there exists no condition or
matter with respect to the Property for which the Lender is entitled to be indemnified; and (c) two (2) years have elapsed since
the date on which the Loan was repaid in full.

 

6.4
- Operations of the Borrower.  Subject to the rights of the Approved Tenants under their respective Approved
Leases, there shall be no material change in the operations or activities conducted on the Property without the Lender’s
express prior written consent. The Borrower shall not use or store, and shall not permit any other party to use or store on the
Property any hazardous wastes, except for deminimus amounts of hazardous chemical substances and mixtures used in the ordinary
course of business and otherwise in compliance with Environmental Laws (as defined below), The Borrower shall not, and shall not
permit any other

 

    	13

    	 

    

 

party to, use or maintain
the Property in a manner or conduct any operations or cause any occurrence thereon which would constitute a violation of any applicable
laws, statutes, ordinances, regulations or similar standards, including, but not limited to, those relating to environmental protection,
pollution control, hazardous wastes and other wastes (collectively referred to as “Environmental Laws”). The
Borrower shall not permit any use of the Property or any event or occurrence thereon which could lead to the imposition of a lien
or encumbrance against the Property pursuant any Environmental Laws. If the activities conducted by the Borrower or by any other
party on the Property require any permit, license or similar grant of governmental permission or approval (collectively referred
to as “Permits”) pursuant to any Environmental Law, the Borrower shall apply for such Permit, or shall cause
such Permit to be applied for in a timely fashion. The Borrower shall take or cause to be taken all necessary actions to cause
the timely renewal of all applicable Permits. All operations and activities conducted by the Borrower on the Property and all conditions
on the Property shall be in accordance with, shall not exceed any limits or restrictions contained in, and shall not be violative
of, any applicable Permit. “Hazardous Wastes” shall be defined as set forth in The Resource Conservation and
Recovery Act as amended (42 U.S.C. §6901, et seq.) “Hazardous Substances” shall be defined
as any substance which poses a present or potential hazard to human health or the environment when improperly disposed of, treated,
stored or managed and shall include, but not be limited to, those substances classified as “hazardous substances”,
“hazardous materials”, “hazardous wastes” and “hazardous chemical substances and mixtures”
under the Environmental Laws.

 

ARTICLE
VII  DEFAULT

 

7.1
- Events of Default.  The occurrence of any one or more of the following events shall constitute an “Event
of Default” hereunder and under each Note and Mortgage:

 

 (a)          Failure
to Pay. The Borrower shall fail to pay when due any installment of principal and/or interest due under the Note, or pay any
other amount within five (5) days of when due to the Lender under this Agreement or any document, agreement or instrument delivered
pursuant to this Agreement or otherwise, or as a condition of making advances hereunder, or any other instrument evidencing indebtedness
due to the Lender by the Borrower, and such failure shall continue beyond any applicable grace or cure period.

 

 (b)          Failure
to Perform. The Borrower shall fail to observe or perform any other term, covenant or agreement to be observed or performed
by it under this Agreement, any other agreements or instruments or documents required hereunder if Borrower has not cured the same
within thirty (30) days following notice from Lender to the Borrower, provided, however, that said notice and cure period shall
not apply to any other failure which constitutes an Event of Default under any other sub-section of this Section 7.1.

 

 (c)          Default
in Other Instrument. An Event of Default shall occur under the terms of the Note, the Mortgage, the Guaranty of Recourse Obligations,
the Interest Rate Swap Agreement and/or any other Loan Document.

 

    	14

    	 

    

 

 (d)          Failure
by Other Party. The Guarantor shall fail to observe or perform any term, covenant or agreement contained the Guaranty of Recourse
Obligations or to be observed or performed by the Guarantor in accordance with the terms of this Agreement.

 

 (e)          False
or Misleading Financial Statement or Other Statement. The Financial Statements or any other written statement, information,
representation, warranty or certificate made or furnished by or on behalf of the Borrower, or any Guarantor in connection with
this Agreement or as an inducement to the Lender to enter into this Agreement, shall prove to have been materially false or misleading
when made.

 

 (f)          Voluntary
Insolvency. The Borrower or Guarantor of the Loan shall become insolvent or admit its inability to pay its debts as they mature
or shall make an assignment for the benefit of its or any of its creditors.

 

 (g)          Bankruptcy.
A proceeding in bankruptcy or for reorganization of the Borrower or Guarantor or the readjustment of any of their respective debts
under the Bankruptcy Code, as amended, or any part thereof, or under any other Laws, whether state or federal, for the relief of
debtors now or hereafter existing, shall be commenced by the Borrower or Guarantor or shall be commenced against the Borrower or
Guarantor; provided that if such an action is instituted against the Borrower, it shall not be an Event of Default if such action
is discharged within ninety (90) days after the commencement thereof.

 

 (h)          Receiver.
A receiver or trustee shall be appointed for the Borrower or Guarantor or for any substantial part of its respective assets, or
any proceeding shall be instituted for the dissolution or the full or partial liquidation of the Borrower or Guarantor, and such
receiver or trustee shall not be discharged within thirty (30) days of his appointment, or such proceeding shall not be discharged
within thirty (30) days of its commencement; provided that the thirty (30) day period provided herein shall not apply to appointments
or actions instituted by the Borrower or Guarantor.

 

 (i)          Validity.
The validity or enforceability of this Agreement, or any note, mortgage, guaranty or other agreement, document or instrument contemplated
hereunder shall be contested by the Borrower, any subsidiary thereof, any Guarantor or affiliate, or any of such entities or individuals
shall deny any further liability or obligation hereunder or thereunder or the Lender determines there is a commercially reasonable
basis for such a contention.

 

 (j)          Change
in Business. The Borrower shall discontinue business or materially change the nature of its business.

 

 (k)          Adverse
Change. The occurrence of a material adverse change in the condition, financial or otherwise, of the Borrower or Guarantor.

 

 (l)          Environmental.
The occurrence of any of the events described in Section 6.1(a), (b) or (c) hereof if the Borrower has not cured the same within
thirty (30) days following notice of such default by Lender to the Borrower, or within the time periods allowed by regulation,
or by the appropriate regulating authorities, whichever period is longer.

 

    	15

    	 

    

 

 (m)          Transfer
of Property. Except as permitted in Section 10 of the Mortgage, a sale, conveyance or transfer, whether voluntary, by operation
of law or otherwise, of all or any portion of, or interest in, the Property, or the placing of any mortgage, lien or other encumbrance
on the Property, or any change by addition, substitution, withdrawal or otherwise of any member of Borrower and/or Guarantor, or
any sale, transfer of ownership or other change in the beneficial ownership interests in Borrower and/or Guarantor, without prior
written consent of the Lender in each case, or the consolidation, merger, dissolution, liquidation, insolvency or bankruptcy of
the Borrower and/or the Guarantor.

 

 (n)          Secondary
Financing; Additional Debt/Subordination. The breach of any of the terms, covenants and restrictions contained in Section 8.23
of this Agreement.

 

7.2
- Acceleration.  Immediately and without notice to the Borrower upon the occurrence of an Event of Default
specified in Section 7.1 above, all obligations of the Borrower to the Lender, whether hereunder or otherwise, shall immediately
become due and payable without further action of any kind, and any and all promissory notes of the Borrower to the Lender shall
become due and payable, both as to principal and interest, without presentment, demand or other notice, all of which are expressly
waived by the Borrower.

 

7.3
- Payments After Acceleration.  The Lender shall have the right to accept any payments made with respect
to the Loan following acceleration thereof, regardless of whether the Borrower have received notice of such acceleration. Such
payment shall not cure any Event of Default, unless and until all obligations of the Borrower to the Lender are paid in full.
The Lender’s acceptance of such payment shall not constitute a waiver of any right of the Lender nor shall acceptance of
such payment constitute an agreement by the Lender to forbear from seeking collection of the Loan.

 

ARTICLE
VIII GENERAL PROVISIONS

 

8.1
- Amendments, Etc.  No amendment, modification, termination, or waiver of any provision of this Agreement
or any agreement, instrument or other document contemplated hereby, nor consent to any departure by the Borrower therefrom, shall
in any event be effective unless the same shall be in writing and signed by the Lender, and then such waiver or consent shall
be effective only in the specific instance and for the specific purpose for which given. No notice to or demand on the Borrower
or Guarantor in any case shall entitle the Borrower or Guarantor to any other or further notice or demand in similar or other
circumstances.

 

8.2
- Survival of Covenants.  All covenants, agreements, representations and warranties made in this Agreement
and in any certificates delivered pursuant to this Agreement shall survive until all obligations of the Borrower to the Lender
are paid in full.

 

8.3
- Governing Law.  THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF
THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS.

 

    	16

    	 

    

 

8.4
- Waivers.  THE BORROWER AND GUARANTOR EACH ACKNOWLEDGE THAT THE TRANSACTIONS TO WHICH THIS AGREEMENT
RELATE ARE COMMERCIAL TRANSACTIONS. THE BORROWER AND GUARANTOR HEREBY VOLUNTARILY AND KNOWINGLY WAIVE THEIR RIGHTS TO NOTICE AND
HEARING UNDER ANY NEW YORK STATUTES, AS AMENDED AND IN EFFECT ON THE DATE HEREOF, OR AS OTHERWISE ALLOWED BY ANY STATE OR FEDERAL
LAW WITH RESPECT TO ANY PREJUDGMENT REMEDY OR OTHER RIGHT OR REMEDY THAT THE LENDER MAY ELECT TO USE OR OF WHICH IT MAY AVAIL
ITSELF. THE BORROWER AND GUARANTOR FURTHER WAIVE, TO THE GREATEST EXTENT PERMITTED BY LAW, THE BENEFITS OF ALL PRESENT AND FUTURE
VALUATION, APPRAISEMENT, EXEMPTION, STAY, REDEMPTION AND MORATORIUM LAWS. THE BORROWER AND GUARANTOR FURTHER WAIVE ANY REQUIREMENT
THAT LENDER OBTAIN A BOND OR OTHER SIMILAR DEVICE IN CONNECTION WITH THE EXERCISE OF ANY REMEDY OR THE ENFORCEMENT OF ANY RIGHT
HEREUNDER

 

8.5
- Severability.  In case any one or more of the provisions contained in this Agreement, or any of the
documents or agreements contemplated hereby, should be invalid, illegal or unenforceable in any respect, the validity, legality,
and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby.

 

8.6
- Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be
deemed to be an original, but all of which together shall constitute but one and the same agreement.

 

8.7
- Captions.  The articles and section captions are inserted herein only as a matter of convenience and
for reference, and in no way define, limit or describe the scope or intent of any such article or section, nor in any way affect
this Agreement.

 

8.8
- Prior Agreements Superseded.  This Agreement, together with all agreements and documents concurrently
executed, constitutes the entire understanding and agreement between the parties hereto and thereto pertaining to the subject
matter hereof and thereof and completely and fully supersedes all prior and contemporaneous understandings or agreements, both
written and oral, between the Lender and the Borrower relating to the subject matter hereof, excluding, however, the Commitment
Letter (the “Commitment Letter”), dated June 18, 2012, executed by Borrower and Lender in anticipation of the
execution of this Agreement which shall survive to the extent that it is not inconsistent with this Agreement, the Mortgage, the
Note or any other Loan Document. Notwithstanding any provision herein or in the other Loan Documents to the contrary, in the event
of any conflict or inconsistency between the provisions of this Agreement (and the other Loan Documents) and the Commitment Letter,
the provisions of this Agreement (and the other Loan Documents) shall control.

 

8.9
- Recovery of Payments.  In the event that all or any part of any payments made to the Lender shall be
rescinded, avoided or recovered from the Lender for any reason whatsoever, including, but not limited to, proceedings in connection
with the insolvency or bankruptcy of the Borrower or the paying party, the amount of such rescinded, avoided or recovered payment
shall

 

    	17

    	 

    

 

be added to the obligations
of the Borrower to the Lender and all representations, warranties and covenants of the Borrower shall remain in full force and
effect and the Borrower shall remain liable to the Lender for the amount of such rescinded, avoided or recovered payments in accordance
with this Agreement.

 

8.10
- No Commitment to Extend or Refinance.  The Borrower acknowledges that it is Borrower’s responsibility
to pay the Loan as required hereunder. The Lender is under no obligation to extend the maturity date of or refinance the Loan
or to provide additional financing to the Borrower except as otherwise expressly set forth herein. The Borrower acknowledges that,
except as expressly set forth in this Agreement, as of the date hereof, the Lender has not made any commitment or representations
pertaining to the further extension or refinancing of the Loan or the provision of additional financing to the Borrower. The Borrower
further acknowledges that no oral representations or commitments by the Lender or any officer or employee thereof pertaining to
the further extension or refinancing of the Loan or the provision of additional financing shall be binding upon the Lender.

 

8.11
- Expenses.  Borrower agrees to pay all expenses, fees and charges with respect to the Loan transaction
or in any way connected therewith, including, without limiting the foregoing, reasonable legal fees of counsel for the Borrower,
reasonable legal fees of counsel for the Lender, architect’s and engineer’s fees, survey costs, brokerage commission,
title costs, title insurance premiums, costs of recording, documentary stamps, taxes, surveys, appraisal fees, and such other
customary and reasonable expenses (whether incurred prior to or after the date of closing) as are incurred in connection with
the closing of the Loan transaction, or such similar expenses as may be incurred in connection with the submission of any instruments
and documents after the date of closing, or the modification of the Mortgage and other instruments and documents as may occur
or be required after the date of closing.

 

8.12
- Jurisdiction and Venue.  Any action or proceeding to enforce or defend any rights under this Agreement
or under any agreement, instrument or other document contemplated hereby or related hereto; directly or indirectly related to
or connected with the Loan or the negotiation, administration or enforcement thereof; or arising from the debtor/creditor relationship
of the Borrower, Guarantor and the Lender may be brought either in the Supreme Court of New York or the United States District
Court for the Southern District of New York. The parties hereto agree that any proceeding instituted in any of such courts shall
be of proper venue, and waive any right to challenge the venue of such courts or to seek the transfer or relocation of any such
proceeding for any reasons. The parties hereto further agree that any such courts shall have personal jurisdiction over the parties.
Any judgment or decree obtained in any such action or proceeding may be filed or enforced in any other appropriate court.

 

8.13
- Mutual Agreement.  Each and every provision of this Agreement has been mutually negotiated, prepared
and drafted. Each party hereto has been represented by legal counsel or has had the opportunity to be represented by legal counsel.
In connection with the construction or interpretation of any provision hereof or deletions therefrom, no consideration shall be
given to the issue of which party actually prepared, drafted, requested or negotiated any provision or deletion. This Agreement
shall not be construed more severely against any one party hereto than against any other party hereto.

 

    	18

    	 

    

 

8.14
- Relationship of the Parties.  Nothing contained in this Agreement or in the transactions contemplated
hereby shall be deemed or construed to create the relationship of partner or joint venturer as between the Lender and the Borrower,
it being agreed and understood that the only relationship between the parties is that of lender and borrower. Borrower agrees
to indemnify Lender and hold Lender harmless from any damages and expenses resulting from any construction of the relationship
between the parties as a partnership or joint venture.

 

8.15
- Right to Charge Account.  The Lender, at its option, may effect the payment of any amount due hereunder
by charging any of the Borrower’s accounts with the Lender. This right does not affect the Borrower’s obligation hereunder
to make timely payments or require the Lender to exercise such option.

 

8.16
- Waiver of Jury Trial.  THE PARTIES HERETO WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING
TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT OR UNDER ANY AGREEMENT, INSTRUMENT OR OTHER DOCUMENT CONTEMPLATED HEREBY
OR RELATED HERETO AND IN ANY ACTION DIRECTLY OR INDIRECTLY RELATED TO OR CONNECTED WITH THE LOAN PROVIDED FOR HEREIN, OR ANY CONDUCT
RELATING TO THE ADMINISTRATION OR ENFORCEMENT OF SUCH LOAN OR ARISING FROM THE DEBTOR/CREDITOR RELATIONSHIP OF THE PARTIES HERETO.
THE BORROWER ACKNOWLEDGES THAT THIS WAIVER MAY DEPRIVE IT OF AN IMPORTANT RIGHT AND THAT SUCH WAIVER HAS KNOWINGLY BEEN AGREED
TO BY THE BORROWER.

 

8.17
- Notices.  Any notice or demand which is made hereunder shall be delivered by personal service or by
registered or certified mail, return receipt requested, at the address herein set forth or at such other address which either
party may give the other notice of in writing in the manner provided in this section and such delivery shall be deemed upon receipt
or refusal to accept. Notice to the Lender hereunder shall be directed to the attention, of the Commercial Mortgage Department.

 

8.18
- Patriot Act Compliance.  Borrower will use good faith and commercially reasonable efforts to comply
with the Patriot Act (as defined below) and all applicable requirements of governmental authorities having jurisdiction of the
Borrower and the Property, including those relating to money laundering and terrorism. The Lender shall have the right to audit
the Borrower’s compliance with the Patriot Act and all applicable requirements of governmental authorities having jurisdiction
of the Borrower and the Property, including those relating to money laundering and terrorism. In the event that the Borrower fails
to comply with the Patriot Act or any such requirements of governmental authorities, then the Lender may, at its option, cause
the Borrower to comply therewith and any and all reasonable costs and expenses incurred by the Lender in connection therewith
shall be secured by the Mortgage and the other Loan Documents and shall be immediately due and payable. For purposes hereof, the
term “Patriot Act” means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept
and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001, as the same may be amended from time to time, and corresponding provisions
of future laws.

 

    	19

    	 

    

 

Neither the Borrower
nor any partner, member, manager or officer in the Borrower or member of such partner nor any owner of a direct or, to Borrower’s
knowledge, indirect interest in the Borrower nor the Guarantor (a) is listed on any Government Lists (as defined below), (b) is
a person who has been determined by competent authority to be subject to the prohibitions contained in Presidential Executive Order
No. 13224 (Sept. 23, 2001) or any other similar prohibitions contained in the rules and regulations of OFAC (as defined below)
or in any enabling legislation or other Presidential Executive Orders in respect thereof, (c) has been previously indicted for
or convicted of any felony involving a crime or crimes of moral turpitude or for any Patriot Act Offense (as defined below), or
(d) is not currently under investigation by any governmental authority for alleged criminal activity. For purposes hereof, the
term “Patriot Act Offense” means any violation of the criminal laws of the United States of America or of any
of the several states, or that would be a criminal violation if committed within the jurisdiction of the United States of America
or any of the several states, relating to terrorism or the laundering of monetary instruments, including any offense under (a)
the criminal laws against terrorism; (b) the criminal laws against money laundering, (c) the Lender Secrecy Act, as amended, (d)
the Money Laundering Control Act of 1986, as amended, or (e) the Patriot Act. “Patriot Act Offense” also includes
the crimes of conspiracy to commit, or aiding and abetting another to commit, a Patriot Act Offense. For purposes hereof, the term
“Government Lists” means (i) the Specially Designated Nationals and Blocked Persons Lists maintained by Office
of Foreign Assets Control (“OFAC”), (ii) any other list of terrorists, terrorist organizations or narcotics
traffickers maintained pursuant to any of the Rules and Regulations of OFAC that Lender notified Borrower in writing is now included
in “Governmental Lists”, or (iii) any similar lists maintained by the United States Department of State, the United
States Department of Commerce or any other governmental authority or pursuant to any Executive Order of the President of the United
States of America that Lender notified Borrower in writing is now included in “Governmental Lists”.

 

8.19
- Usury Savings Clause. It is the intent of Lender and Borrower to comply
at all times with applicable usury laws. If at any time such laws would render usurious any amounts called for under any of the
Loan Documents, then it is Borrower’s and Lender’s express intention that such excess amount be immediately credited
on the principal balance of the Note (or, if the Note has been fully paid, refunded by Lender to Borrower, and Borrower shall accept
such refund), and the provisions hereof and thereof be immediately deemed to be reformed and the amounts thereafter collectible
hereunder reduced to comply with the then applicable laws, without the necessity of the execution of any further documents, but
so as to permit the recovery of the fullest amount otherwise called for hereunder and thereunder. Any such crediting or refund
shall not cure or waive any default by Borrower under any of the Loan Documents. If at any time following any such reduction in
the interest rate payable by Borrower, there remains unpaid any principal amounts under the Note and the maximum interest rate
permitted by law is increased or eliminated, then the interest rate payable hereunder shall be readjusted, to the extent permitted
by applicable law, so that the total dollar amount of interest payable hereunder shall be equal to the dollar amount of interest
which would have been paid by Borrower without giving effect to the reduction in interest resulting from compliance with the applicable
usury laws theretofore in effect. Borrower agrees, however, that in determining whether or not any interest payable under any of
the Loan Documents is usurious, any non-principal payment (except 

 

    	20

    	 

    

 

payments
specifically stated in the Note or in any other Loan Documents to be interest), including, without limitation, prepayment fees
and late charges, shall be deemed to the extent permitted by law, to be an expense, fee, premium or penalty rather than interest.

 

8.20
- Assignment, Syndication and Participation.  The Lender reserves the right to assign all or any portion
of the Loan to other lenders (with a corresponding reduction in Lender’s share of the Loan) or to participate out all or
any portion of the Loan. The Borrower and Guarantor grants to the Lender the right to distribute to potential investors, assignees
and participants, without further notice to the Borrower or Guarantor, and at the Lender’s sole discretion, any information
relative to the Borrower, including, but not limited to, preliminary budgets, pro forma statements and financial statements. The
rights conferred upon the Lender by this Agreement shall be automatically extended to and vested in any assignee or transferee
of the Lender upon the Borrower’s receipt of notice of such assignment or transfer; provided, however, that no such assignment
or transfer shall enlarge or modify the obligations of the Borrower or Guarantor hereunder.

 

8.21 - Commitment
Fee. On or prior to the date hereof, Borrower has paid to Lender a non-refundable commitment fee in the amount of One Hundred
One Thousand and 00/100 Dollars ($101,000.00).

 

8.22
– Interest Rate Protection.

 

  (a)          Borrower
shall at all times for so long as the Loan remains outstanding, maintain the Interest Rate Swap Agreement and pay the premium
thereof in full with an Acceptable Counterparty, which shall be for the entire term of the Loan,
all upon terms and subject to such conditions as shall be acceptable to Lender (or if such transaction is with another financial
institution, all upon terms and subject to such conditions as shall be approved by Lender in writing).

 

  (b)          Borrower
hereby acknowledges that prepayment, acceleration, reduction, increase or any other change in the terms of the Loan will not permit
the Borrower to alter the notional amount of the Interest Rate Swap Agreement or otherwise affect the Borrower’s obligation
to continue making payments to Lender under the Interest Rate Swap Agreement, which shall remain in full force and effect until
the Loan is fully satisfied; provided, however, (i) if the notional amount of the
Interest Rate Swap Agreement exceeds the outstanding balance of the Loan as a result of a prepayment, repayment, reduction or other
change in the terms of the Loan in accordance with the terms and conditions of this Agreement or any of the other Loan Documents
(individually and collectively, the “Reduction”), the Counterparty (as defined below) may, with prior notice
to the Lender, reduce the notional amount of the Interest Rate Swap Agreement by a pro rata amount to reflect the amount of the
Loan outstanding, or that will be outstanding, as a result of the Reduction and any amount payable under the Interest Rate Swap
Agreement as a result of such reduction in the notional amount shall be paid by Borrower at the same time as the prepayment or
repayment of the Loan in accordance with the terms of the Note; and (ii) if there is an acceleration of the Loan due to an Event
of Default under the Loan Documents, or the security afforded by the Loan Documents becomes enforceable as a result of an Event
of Default without a related acceleration of the Loan, Counterparty may terminate the

 

    	21

    	 

    

 

Interest Protection
Swap Agreement upon prior notice to the Lender. Upon the occurrence of any such event described in (i) or (ii) above, Borrower
may be required, at Lender’s sole discretion, to purchase a replacement Interest Rate Swap Agreement (at Borrower’s
sole cost and expense) with an Acceptable Counterparty and which otherwise complies with the terms and conditions of this Section
8.21, and maintain such replacement Interest Rate Swap Agreement in effect until the Loan is fully satisfied.

 

  (c)          The
Interest Rate Swap Agreement shall be maintained throughout the term of the Loan with (x) any counterparty to, or issuer of, an
Interest Rate Swap Agreement, other than Borrower (or an affiliate of Borrower), that has and shall maintain until the expiration
of the applicable Interest Rate Swap Agreement, a long-term unsecured debt rating acceptable to Lender (the “Counterparty
Ratings Requirement”), and is otherwise acceptable to Lender in Lender’s sole and absolute discretion, or (y) Lender
(or an affiliate of Lender, or their successors-in-interest) (each of (x) and (y) are individually referred to herein as “Counterparty”
or “Acceptable Counterparty”, as context requires). If the Counterparty (other than Lender) of the Interest
Rate Swap Agreement thereafter fails to meet the Counterparty Ratings Requirement, Borrower shall obtain a replacement Interest
Rate Swap Agreement from an Acceptable Counterparty at Borrower’s sole cost and expense within fifteen (15) days of notice
by Lender or Borrower obtaining knowledge that the Counterparty (other than Lender) is unable to meet the Counterparty Ratings
Requirement.

 

  (d)          Borrower
shall collaterally assign its interests in the Interest Rate Swap Agreement to Lender pursuant to a pledge and assignment thereof
(the “Assignment of Interest Protection Agreement”) in a form acceptable to Lender, which shall include
an assignment of all of Borrower’s right, title and interest to receive any and all payments under the Interest Rate Swap
Agreement (and any related guarantee, if any) and shall deliver to Lender a counterpart of such Assignment of Interest Rate Swap
Agreement executed by Borrower and by Counterparty and notify the Counterparty (if other than Lender or an affiliate of Lender)
of such collateral assignment (either in such Interest Rate Swap Agreement or by separate instrument). At such time as the Loan
is repaid in full, all of Lender’s right, title and interest in any Interest Rate Swap Agreement shall terminate and Lender
shall upon written request execute and deliver, at Borrower’s sole cost and expense, such documents as may be required to
evidence Lender’s release of the Assignment of the Interest Rate Swap Agreement and to notify the of such release.

 

  (e)          Borrower
shall comply with all of its obligations under the terms and provisions of the Interest Rate Swap Agreement. All amounts paid by
Counterparty under the Interest Rate Swap Agreement to Borrower or Lender shall be deposited immediately with Lender to be applied
in accordance with the terms of this Agreement, the Note and the other Loan Documents. Borrower shall take all actions reasonably
requested by Lender to enforce Lender’s rights under the Interest Rate Swap Agreement in the event of a default by Counterparty
and shall not waive, amend or otherwise modify any of its rights thereunder.

 

  (f)          In
the event that Borrower fails to purchase and deliver to Lender the Interest Rate Swap Agreement as and when required hereunder,
or fails to maintain such agreement in accordance with the terms and provisions of this Mortgage, Lender may purchase the Interest
Rate Swap Agreement and the cost incurred by Lender in purchasing the Interest

 

    	22

    	 

    

 

Rate Swap Agreement
shall be paid by Borrower to Lender with interest thereon at the Default Rate from the date such cost was incurred by Lender until
such cost is paid by Borrower to Lender.

 

8.23
- Secondary Financing; Additional Debt/Subordination.

 

  (a)          No
secondary financing by Borrower of any kind shall be permitted without Lender’s prior written consent, to be given or withheld
in Lender’s sole discretion. Any secondary financing obtained by the Borrower and/or secured by the Property or any other
business assets or any part thereof or interest therein without such consent shall be a default under the Loan Documents causing,
at Lender’s option, the entire amount of the Loan and all other indebtedness of the Borrower to Lender to be immediately
due and payable.

 

  (b)          (i)
All inter-company receivables; (ii) all inter-company loans; and (iii) all loans from the Borrower to its members or shareholders
are subordinated in favor of Lender and to the lien of this Mortgage. Any repayment agreement executed in connection with the foregoing
obligations shall be subject to Lender’s approval, in its sole discretion.

 

8.24 – Assignment
of Mortgage in Lieu of Discharge. Upon payment in full of the Loan and Borrower’s written request, Lender agrees to execute
and deliver to Borrower (or its designee) an assignment of the Mortgage in recordable form, provided, however, that such assignment
shall be without recourse to Lender and Borrower shall pay Lender’s costs (including reasonable attorney’s fees) incurred
in connection with the delivery of such assignment.

 

[No further text
on this page — signature page follows]

 

    	23

    	 

    

 

IN WITNESS WHEREOF,
the parties hereto have duly executed this Loan Agreement as of the day and year first above written.

 

	 	LENDER:
	 	 
	 	PEOPLE’S UNITED BANK,
	 	a federal savings bank
	 	 
	 	By:	/s/ Rosalind Rubin
	 	Name:	Rosalind Rubin
	 	Its:	Vice President
	 	 
	 	BORROWER:
	 	 
	 	ARC NYKNGHW001, LLC,
	 	a Delaware limited liability company
	 	 
	 	By:	/s/ Jesse C. Galloway
	 	Name:	Jesse C. Galloway
	 	Title:	Authorized Signatory
	 	 
	 	ARC NYKNGHW002, LLC,
	 	a Delaware limited liability company
	 	 
	 	By:	/s/ Jesse C. Galloway
	 	Name:	Jesse C. Galloway
	 	Title:	Authorized Signatory
	 	 
	 	ARC NYKNGHW003, LLC,
	 	a Delaware limited liability company
	 	 
	 	By:	/s/ Jesse C. Galloway
	 	Name:	Jesse C. Galloway
	 	Title:	Authorized Signatory
	 	 
	 	GUARANTOR:
	 	 
	 	NEW YORK RECOVERY OPERATING PARTNERSHIP, L.P.,
	 	a Delaware limited partnership
	 	 
	 	By:	/s/ Jesse C. Galloway
	 	Name:	Jesse C. Galloway
	 	Its:	Authorized Signatory

 

Loan Agreement

 

    	 

    	 

    

 

SCHEDULE A

 

    	 

    	 

    

 

SCHEDULE B

 

AMENDED AND RESTATED PROMISSORY NOTE

 

    	 

    	 

    

 

SCHEDULE C

 

RENT ROLLEXECUTION COPY

 

AMENDED AND RESTATED PROMISSORY NOTE

 

New York, New York

 

	$20,200,000.00	 	July 12, 2012

 

FOR VALUE RECEIVED,
the undersigned, ARC NYKNGHW001, LLC, a Delaware limited liability company, ARC NYKNGHW002, LLC, a Delaware limited
liability company, and ARC NYKNGHW003, LLC, a Delaware limited liability company, each having an address c/o American Realty
Capital, 405 Park Avenue, 15th Floor, New York, New York 10022 (collectively, the “Borrower”), jointly and severally
promise to pay to the order of PEOPLE’S UNITED BANK, a federal savings bank having an office at 850 Main Street, Bridgeport,
Connecticut 06604 (the “Lender”), the principal sum of TWENTY MILLION TWO HUNDRED THOUSAND AND 00/100 DOLLARS
($20,200,000.00), plus interest, payable at the rate and in the manner provided in this Note, together with all taxes assessed
upon said sum against the holder hereof, and any costs and expenses, including reasonable attorneys’ fees, incurred in the
collection of this Note, the foreclosure of the Mortgage Consolidation, Extension and Modification Agreement, dated of even date
herewith (the “Mortgage”), securing this Note or in enforcing the terms and conditions of that certain Loan
Agreement entered into by and between the Borrower and the Lender and dated of even date herewith (the “Loan Agreement”)
or in protecting or sustaining the lien of said Mortgage. Said amounts of principal, interest, fees, costs and expenses are collectively
referred to in this Note as the “Entire Note Balance”. Capitalized terms used herein without definition shall
have the meanings ascribed to such terms in the Loan Agreement.

 

1.          INTEREST
RATE.

 

(a)          Commencing
on the date hereof and continuing until the Maturity Date (as defined below) or the sooner imposition of the Default Rate (as defined
below) the outstanding principal balance of this Note shall bear interest at the Interest Rate (as defined below). For purposes
hereof, the following terms shall have the following respective meanings:

(i)          "Business
Day" means any day other than a Saturday, Sunday or legal holiday on which commercial banks are either authorized or required
to be closed in New York City and, when used to describe a day on which an interest rate determination is to be made in respect
of the Libor Base Rate, any day that is a London Banking Day.

 

(ii)         “Default
Rate” has the meaning set forth in Section 1(b) hereof.

 

(iii)        “First
Interest Period” means the period commencing on the date hereof and continuing to and including July 31, 2012. 

 

    	 

    	 

    

  

(iv)         “Interest
Period” means, following the First Interest Period, each period commencing on
the day following the last day of the immediately preceding Interest Period and ending one month thereafter, but in no event after
the Maturity Date.

 

(v)          “Interest
Rate” means the sum of the LIBOR Base Rate, adjusted the first day of each Interest Period, plus the Spread.

 

(vi)         “Interest
Rate Swap Agreement” has the meaning set forth in Section 20(a) hereof.

 

(vii)        “LIBOR
Base Rate" means the rate quoted to Lender two (2) calendar days prior to the date of this Note and two (2) calendar days
prior to the commencement of each Interest Period for the offering by prime commercial banks to other prime commercial banks in
the London interbank Eurodollar market of U.S. dollar deposits in immediately available funds for a one (1) month period, as published
in the Wall Street Journal, and in an amount equal to the then outstanding principal amount of the Loan. In the event that:

 

(A)         on
any date on which the LIBOR Base Rate would have otherwise become effective, Lender determines in its reasonable estimation (which
determination shall be final and conclusive) that adequate and fair means do not exist for ascertaining the required LIBOR Base
Rate; or

 

(B)         Lender
determines in its reasonable estimation (which determination shall be final and conclusive) at any time that the making or continuation
of or conversion of the interest rate on the outstanding principal balance of the indebtedness evidenced by this Note to the LIBOR
Base Rate has been made impracticable or unlawful by (A) the occurrence of a contingency that materially and adversely affects
the London interbank market, or (B) compliance by Lender with any law or governmental regulation, guideline or order or interpretation
or change thereof by any governmental authority charged with the interpretation or administration thereof or with any request or
directive of any such governmental authority (whether having the force of law or not);

 

then, and in any such
event, Lender shall promptly notify the Borrower of the Lender’s determination, and until the Lender notifies the Borrower
that the circumstances giving rise to the Lender’s determination no longer apply or exist, the LIBOR Base Rate shall be suspended
and interest on the outstanding principal balance of the indebtedness evidenced by the Note shall be payable at the People's United
Bank Prime Rate (as hereinafter defined), as it may vary from time to time, plus the Spread. Notification from the Lender of a
determination of the existence of one of the contingencies discussed above shall not take effect until the expiration of the then
current Interest Period.

 

(viii)      “London
Banking Day” means a day on which dealings in U.S. dollar deposits are transacted in the London interbank market.

 

Amended And Restated Promissory
Note

 

    	2

    	 

    

  

(ix)         “Payment
Date” has the meaning set forth in Section 2(b) hereof.

 

(x)          “People's
United Bank Prime Rate" shall mean the variable interest rate announced periodically by the Lender as its prime rate of
interest for commercial loans of this type, as it may vary from time to time which may not necessarily be the lowest or best rate
available from Lender at any given time or if the Lender does not announce a People's United Bank Prime Rate a comparable index
determined by Lender in the exercise of its reasonable discretion.

 

(xi)         “Spread”
means two hundred forty (240) basis points (i.e., 2.4%). 

 

(b)          Upon
the occurrence of any Event of Default, as defined in this Note, the Mortgage or the Loan Agreement, the entire principal amount
of this Note and all interest and other sums due thereon, at the option of Lender shall become immediately due and payable. Should
an Event of Default occur, the outstanding balance of the loan shall bear interest at the Interest Rate plus five percent (5%)
per annum (the “Default Rate”).

 

2.          PAYMENTS;
ADDITIONAL LIBOR PROVISIONS.

 

(a)          On
August 1, 2012, Borrower shall pay to Lender interest at the Libor Base Rate plus the Spread for the
First Interest Period.

 

(b)          Commencing
on September 1, 2012, and on the first Business Day of each successive month thereafter through and including the Maturity Date
(each such date a “Payment Date”), Borrower shall pay to Lender interest-only on the outstanding principal balance
of this Note calculated at the Interest Rate which has accrued through the last day of the Interest Period immediately preceding
such Payment Date.

 

(c)          All
interest shall be computed on a daily basis and calculated on the basis of a three hundred sixty (360) day year for the actual
number of days elapsed, to be payable in arrears on the unpaid principal balance outstanding.

 

(d)          All
monthly payments of interest required pursuant to the terms of this Note shall be made together with one-twelfth (1/12) of the
annual real estate taxes, insurance premiums and other charges and assessments which may accrue against the Property if the same
are being escrowed pursuant to the Mortgage.

 

(e)          Borrower
shall pay to Lender all losses, costs and expenses incurred or sustained (or expected to be incurred or sustained) by Lender in
liquidating or re-employing funds from third parties to effect or maintain the Loan or any part thereof as a consequence of (i)
the conversion of the Interest Rate from one based upon the Libor Base Rate to one based upon the People’s United Bank Prime
Rate in accordance with Section 2(f) or (g) below, including, without limitation, such loss or expenses arising from interest or
fees payable by Lender to

 

Amended And Restated
Promissory Note

 

    	3

    	 

    

 

lenders of funds
obtained by it in order to maintain Interest Rate as one based upon the Libor Base Rate hereunder; (ii) any increased costs that
Lender may sustain in maintaining the Loan; (iii) the reduction of any amounts received or receivable from Borrower, in either
case, due to the introduction of, or any change in, law or applicable regulation or treaty (including the administration or interpretation
thereof), whether or not having the force of law, or due to the compliance by Lender with any directive, whether or not having
the force of law, or request from any central bank or domestic or foreign governmental authority, agency or instrumentality have
jurisdiction; and/or (iv) any other set of circumstances not attributable to Lender’s acts (collectively, “Funding
Losses”) in each case incurred from time to time by Lender upon demand. Lender shall deliver to Borrower a statement
for any such sums to which Lender is entitled to receive pursuant to this Section 2(e), which statement shall be binding and conclusive
absent manifest error. Payment of Funding Losses hereunder shall be in addition to any obligation to pay the Prepayment Fee (as
defined below) and the other amounts required under Section 4.

 

(f)          In
the event that Lender shall have reasonably determined that, by reason of circumstances beyond Lender’s reasonable control
affecting the interbank Eurodollar market, LIBOR cannot be determined as provided herein, then Lender shall forthwith give notice
by telephone of such fact, confirmed in writing, to Borrower at least one (1) Business Day prior to the last day of the Interest
Period in which such fact shall be determined. If such notice is given, the Interest Rate shall be converted, from and after the
first day of the next succeeding Interest Period, to one based upon the People’s United Bank Prime Rate (and unless and until
the Interest Rate shall be converted back to one based upon the Libor Base Rate, “Interest Rate” shall mean and refer
to the Interest Rate based upon People’s United Bank Prime Rate; i.e., the sum of the People’s United Bank Prime Rate
plus the Spread). If, pursuant to the terms of this clause (g), the Interest Rate has been converted to one based upon the People’s
United Bank Prime Rate, but thereafter LIBOR can again be determined as provided herein, Lender shall give notice thereof to Borrower
and convert the Interest Rate back to one based upon the Libor Base Rate by delivering to Borrower notice of such conversion no
later than 12:00 p.m. (New York City Time), one (1) Business Day prior to the first date of the next succeeding Interest Period,
in which event the Interest Rate shall be converted to one based upon the Libor Base Rate after and including the first day of
the next succeeding Interest Period. Notwithstanding any provision of this Note to the contrary, in no event shall Borrower have
the right to elect to convert the Interest Rate to one based upon the People’s United Bank Prime Rate.

 

(g)          If
the introduction of, or any change in, any law, regulation or treaty, or in the interpretation thereof by any governmental authority
charged with the administration or interpretation thereof, shall make it unlawful for Lender to maintain the Interest Rate on the
basis of the Libor Base Rate with respect to the Loan, or any portion thereof, in Eurodollars in the London Interbank Market, then,
(i) the Loan shall thereafter bear interest at Interest Rate on the basis of the People’s United Bank Prime Rate, and (ii)
Borrower shall pay to Lender the amount of Funding Losses (if any) incurred in connection with such conversion.

 

Amended And Restated
Promissory Note

 

    	4

    	 

    

 

3.            MATURITY.
The Entire Note Balance, if not sooner paid, shall be due and payable without notice or demand on August 1, 2017 (the “Maturity
Date”).

 

4.            PREPAYMENT
FEE.

 

The Borrower
may prepay this Note in whole or in part at any time only upon thirty (30) days prior notice to Lender (the “Prepayment
Notice”) and the payment to Lender of a prepayment fee (the “Prepayment Fee”). The Prepayment Fee
shall be equal to the “LIBOR Breakage Fee,” which as used herein means any actual loss or expense (including,
without limitation, actual loss profit) that in the judgment of the Lender (which shall be conclusive so long as made on a reasonable
basis) the Lender sustains or incurs as a direct consequence of any prepayment (whether optional or mandatory) of the Loan by the
Borrower on and after the date hereof and through the applicable Maturity Date, including, but not limited to, any loss or interest
payable by the Borrower to Lender of funds obtained by it in order to make or maintain a Libor Base Rate Loan to the Borrower.

 

Notwithstanding anything
contained herein to the contrary, the Borrower shall be responsible, in addition to any Prepayment Fee, for the payment of any
reasonable administrative costs incurred by Lender in connection with such prepayment. If this Note shall be accelerated for any
reason whatsoever, the applicable Prepayment Fee in effect as of the date of such acceleration shall be paid. All partial prepayments
of principal shall be accompanied by and applied first to the payment of costs and expenses thereto unpaid late charges, then to
accrued and unpaid interest and the balance on account of the unpaid principal in the inverse order of maturity. Partial prepayments
shall not affect the Borrower’s obligation to make the regular installments of principal and interest required under the
terms of this Note.

 

In the event
of a prepayment, Borrower shall pay all of Lender’s costs and expenses, including, without limitation, all reasonable attorney’s
fees and costs, incurred in connection with the prepayment and/or proposed prepayment of this Note, and, if required pursuant to
the terms and conditions of the Interest Rate Swap Agreement, any additional fees, termination costs or other penalties associated
with the termination of the Interest Rate Swap Agreement.

 

5.            APPLICATION
OF PAYMENTS. Payments will be applied first to fully pay costs and expenses incurred by holder in collecting this Note
or in sustaining and/or enforcing any security granted to secure this Note, then to fully pay any outstanding late charges or prepayment,
then to fully pay accrued interest and the remainder will be applied to principal.

 

6.            LATE
CHARGE. Borrower shall pay the holder of this Note a late charge of five percent (5%) of any monthly installment not received
by the holder within ten (10) days after the installment is due, to cover the additional expenses involved in handling such overdue
installment. This charge shall be in addition to, and not in lieu of, any other remedy the holder of this Note may have and is
in addition to any reasonable fees and charges of any agents or attorneys which the holder of this Note is entitled to employ in
the Event of Default hereunder, whether authorized herein or by law. Borrower will pay this late charge promptly but only once

 

Amended And Restated
Promissory Note

 

    	5

    	 

    

 

for each late
payment, and this late charge shall not be imposed with respect to the final payment (the “Final Payment”) of
principal due on the Maturity Date if: (a) no other Event of Default has occurred; (b) Borrower is working in good faith with the
Lender (or another financial institution) to refinance (or pay-off) the Loan; (iii) the Borrower has paid the monthly interest
payment that otherwise would have been due and owing on the Maturity Date; and (iv) the Final Payment is paid within twenty (20)
days of the Maturity Date.

 

7.          DEFAULT.
Upon the occurrence of any Event of Default (as hereinafter defined), the Entire Note Balance shall, at the option of the holder
hereof, become immediately due and payable without notice or demand.

 

An “Event
of Default” is defined as any one of the following: (i) default in the payment of any interest, principal, or other amounts
due hereunder during the term of this loan and such default continuing for a period of ten (10) days after the due date thereof;
(ii) default in the payment of any principal or other amounts due upon the Maturity Date; (iii) an Event of Default in the performance
of any of the other conditions or stipulations of this Note, the Loan Agreement or any other document evidencing an obligation
to the Lender, including, but not limited to, the Interest Rate Swap Agreement (as hereinafter defined); (iv) the occurrence of
any Event of Default as defined in the Mortgage or the breach of any provision of any other instrument securing this Note beyond
any applicable notice and cure period; or (v) any sale, conveyance or transfer of any interest in the property securing this Note
except as permitted in the Loan Agreement or the Mortgage.

 

8.          PREJUDGMENT
REMEDY WAIVER. BORROWER ACKNOWLEDGES AND REPRESENTS THAT THE LOAN EVIDENCED BY THIS NOTE IS A COMMERCIAL TRANSACTION AND
THAT THE PROCEEDS OF THE LOAN SHALL NOT BE USED FOR PERSONAL, FAMILY OR HOUSEHOLD PURPOSES. THE BORROWER AND EACH ENDORSER, CO-BORROWER
AND GUARANTOR HEREOF HEREBY VOLUNTARILY WAIVE ANY RIGHTS TO NOTICE OR HEARING AS REQUIRED BY ANY LAW WITH RESPECT TO ANY PREJUDGMENT
REMEDY WHICH THE HOLDER MAY ELECT TO USE.

 

9.          DELAY
IN ENFORCEMENT. The liability of Borrower or any co-borrowers, endorsers or guarantors under this Note is unconditional
and shall not be affected by any extension of time, renewal, waiver or any other modification whatsoever, granted or consented
to by the holder. Any failure by the holder to exercise any right it may have under this Note is not a waiver of the holder’s
right to exercise the same or any other right at any other time.

 

10.         CHANGES.
No agreement by the Lender to change, waive or release the terms of this Note will be valid unless it is in writing and signed
by Borrower and the Lender.

 

11.         WAIVER,
JURY TRIAL WAIVER. BORROWER AND EACH CO-BORROWER, ENDORSER AND GUARANTOR WAIVE PRESENTMENT, DEMAND FOR PAYMENT AND NOTICE
OF DISHONOR. BORROWER AND EACH CO-BORROWER, ENDORSER

 

Amended And Restated
Promissory Note

 

    	6

    	 

    

 

AND GUARANTOR
WAIVE A TRIAL BY JURY IN ANY ACTION WITH RESPECT TO THIS NOTE AND AS TO ANY ISSUES ARISING RELATING TO THIS NOTE OR TO THE INSTRUMENTS
SECURING THIS NOTE.

 

12.         GOVERNING
LAW. THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD
TO PRINCIPLES OF CONFLICTS OF LAWS. Any action or proceeding to enforce or defend any rights under this Note or under any agreement,
instrument or other document contemplated hereby or related hereto; directly or indirectly related to or connected with the Loan
or the negotiation, administration or enforcement thereof; or arising from the debtor/creditor relationship of the Borrower and
the Lender may be brought either in The Supreme Court of New York or the United States District Court for the Southern District
of New York. The parties hereto agree that any proceeding instituted in any of such courts shall be of proper venue, and waive
any right to challenge the venue of such courts or to seek the transfer or relocation of any such proceeding for any reasons. The
parties hereto further agree that any such courts shall have personal jurisdiction over the parties. Any judgment or decree obtained
in any such action or proceeding may be filed or enforced in any other appropriate court.

 

13.         RIGHT
OF SET-OFF. Upon the occurrence of any Event of Default as defined in this Note and the expiration of any applicable cure
period, the Lender shall have the right to set-off all or any part of Borrower’s deposits, credit and property now or hereafter
in the possession or control of the Lender, its agent or bailee or in transit to it and may apply the same, or any part thereof,
to the Entire Note Balance without prior notice or demand.

 

14.         INVALIDITY.
If any provision of this Note or the application of any provision to any person or circumstance shall be invalid or unenforceable,
neither the balance of this Note nor the application of the provision to other persons or circumstances shall be affected.

 

15.         JOINT
AND SEVERAL LIABILITY, BINDING EFFECT. This Note and all obligations hereunder, to the extent signed by more than one party,
shall be the joint and several obligations of all borrowers, endorsers and other accommodation parties, and each provision hereof
shall apply to each and all jointly and severally. The provisions of this Note are binding on the heirs, executors, administrators,
assigns and successors of the Borrower and shall inure to the benefit of the Lender, its successors and assigns and to subsequent
holders of this Note.

 

16.         NOTE
SECURED BY MORTGAGE. This Note is secured by the Mortgage executed and delivered by the Borrower to the Lender, conveying
certain interests in and to real estate and property therein described (the “Property”) and to be duly recorded
on the land records in the town or city in which such real estate and property is located.

 

17.         INTERPRETATION.
Captions and headings used in this Note are for convenience only. The term “Borrower” and any pronoun referring
thereto as used herein shall be construed in the masculine, feminine or neuter as the context may require. The singular includes
the plural and the plural includes the singular. “Any” means any and all.

 

Amended And Restated
Promissory Note

 

    	7

    	 

    

 

18.         OTHER
OBLIGATIONS. To the extent the Entire Note Balance is reduced or paid in full by reason of any payment to the Lender by
any accommodation borrower, endorser or guarantor, and all or any part of such payment is rescinded, avoided or recovered from
the Lender for any reason whatsoever, including, without limitation, any proceedings in connection with the insolvency, bankruptcy
or reorganization of the accommodation borrower, endorser or guarantor, the amount of such rescinded, avoided or returned payment
shall be added to or, in the event this Note has been previously paid in full, shall revive the principal balance of this Note
upon which interest may be charged at the applicable rate set forth in this Note and shall be considered part of the Entire Note
Balance and all terms and provisions herein shall thereafter apply to same.

 

 

19.         Usury
Savings Clause. It is the intent of Lender and Borrower to comply at all times with applicable usury laws. If at
any time such laws would render usurious any amounts called for under this Note or any of the other Loan Documents, then it is
Borrower’s and Lender’s express intention that such excess amount be immediately credited on the principal balance
of this Note (or, if this Note has been fully paid, refunded by Lender to Borrower, and Borrower shall accept such refund), and
the provisions hereof and thereof be immediately deemed to be reformed and the amounts thereafter collectible hereunder reduced
to comply with the then applicable laws, without the necessity of the execution of any further documents, but so as to permit the
recovery of the fullest amount otherwise called for hereunder and thereunder. To the extent permitted by law, any such crediting
or refund shall not cure or waive any default by Borrower under this Note or any of the other Loan Documents. If at any time following
any such reduction in the interest rate payable by Borrower, there remains unpaid any principal amounts under this Note and the
maximum interest rate permitted by applicable law is increased or eliminated, then the interest rate payable hereunder shall be
readjusted, to the extent permitted by applicable law, so that the total dollar amount of interest payable hereunder shall be equal
to the dollar amount of interest which would have been paid by Borrower without giving effect to the reduction in interest resulting
from compliance with the applicable usury laws theretofore in effect. Borrower agrees, however, that in determining whether or
not any interest payable under this Note or any of the other Loan Documents is usurious, any non-principal payment (except payments
specifically stated in this Note or in any other Loan Document to be interest), including, without limitation, prepayment fees
and late charges, shall be deemed to the extent permitted by law, to be an expense, fee, premium or penalty rather than interest.

 

20.         INTEREST
RATE SWAP AGREEMENT.

 

(a)          Borrower
shall hedge the floating interest expense of the Loan by maintaining an interest rate swap agreement (such interest rate swap agreement,
together with any replacement or other interest rate swap agreement entered into under this Section 20, being referred to herein
as the “Interest Rate Swap Agreement”) in form and substance and with a counterparty reasonably acceptable to
Lender, which has a term ending no earlier than the Maturity Date and a notional amount equal to the portion of the principal balance
of the Loan that is evidenced by this Note. As of the date hereof, Borrower and Lender have entered into an Interest Rate Swap
Agreement satisfying all of the foregoing conditions.

 

Amended And Restated Promissory Note

 

    	8

    	 

    

 

(b)          Borrower
shall collaterally assign to Lender all of Borrower’s right, title and interest in any and all payments under the Interest
Rate Swap Agreement and shall deliver to Lender an executed counterpart of the same and obtain the consent of the counterparty
thereto (as evidenced by such counterparty’s execution of a separate acknowledgment, if such counterparty is not Lender),
all on forms acceptable to Lender.

 

(c)          Notwithstanding
anything to the contrary contained herein, prior to entering into any Interest Rate Swap Agreement with a counterparty other than
Lender, Borrower shall notify Lender of its intention to purchase such Interest Rate Swap Agreement and Lender shall have the right
to be included in a competitive bidding process to provide such Interest Rate Swap Agreement.

 

(d)          Borrower
shall comply with all of its obligations under the terms and provisions of the Interest Rate Swap Agreement, and all amounts paid
thereunder shall be paid to or as directed by Lender. Borrower shall take all actions reasonably requested by Lender to enforce
Lender’s rights under the Interest Rate Swap Agreement and its collateral assignment thereof in the event of a default by
the counterparty thereunder and shall not waive, amend or otherwise modify any of its rights thereunder without Lender’s
reasonable consent. The provisions of this Section 20 shall apply to any extension of the Interest Rate Swap Agreement or new Interest
Rate Swap Agreement obtained by Borrower pursuant to the terms and conditions of this Note.

(e)          Except
as expressly set forth in any Interest Rate Swap Agreement to which Lender is a counterparty, Lender shall not have any obligation,
duty or responsibility to Borrower by reason of, or in connection with, any Interest Rate Swap Agreement (including any duty to
allow or consent to any mortgage or security interest in any property or assets of Borrower which serve as collateral for the Loan,
or to provide any credit or financial support for the obligations of Borrower under such Interest Rate Swap Agreement). No Interest
Rate Swap Agreement shall alter, impair, or modify in any respect the obligation of Borrower to pay interest on the Loan as and
when the same becomes due and payable in accordance with the provisions of this Note. Any payments made by the counterparty to
any Interest Rate Swap Agreement to Lender shall be applied in the same manner as payments are applied under this Note.

 

21.         CONSOLIDATED,
AMENDED AND RESTATED NOTE. This Note is given, in part, in replacement for, but not in payment of, (i) those certain notes
or bonds (hereinafter the “Assigned Notes”) secured by the mortgages described on Exhibit A attached
hereto and made a part hereof; and (ii) that certain Gap Promissory Note from Borrower to Lender, dated even date herewith, in
the principal sum of $11,155,000.00 (the “Gap Note”). Said Assigned Notes have been assigned to Lender and are
secured by the Assigned Mortgages (as defined in the Mortgage) and said Gap Note is secured by the Gap Mortgage and Security Agreement
(the “Gap Mortgage”) of even date herewith made by Borrower to Lender, and such Assigned Mortgages have been
consolidated, modified and extended and made coordinate with the Gap Mortgage. This Note amends and restates in their entirety
the Assigned Notes and the Gap Note,

 

Amended And Restated Promissory Note

 

    	9

    	 

    

 

collectively.
Borrower hereby warrants and represents to and covenants and agrees with Lender that:

 

(a)          As
of the date hereof, the aggregate principal balance of the Assigned Notes is Nine Million Forty-Five Thousand and 00/100 Dollars
($9,045,000.00), which sum is due and owing by Borrower to Lender under and pursuant to the Assigned Notes without right of setoff,
counterclaim or defense, and that all of the figures, amounts, data and information set forth above with respect to the Assigned
Notes are true and accurate, and that as of the date hereof, the outstanding principal balance of the Gap Note is Eleven Million
One Hundred Fifty-Five Thousand and 00/100 Dollars ($11,155,000.00), which sum is due and owing by Borrower to Lender under and
pursuant to the Gap Note without right of setoff, counterclaim or defense, and that all of the figures, amounts, data and information
set forth above with respect to the Gap Note are true and accurate.

 

(b)          The
Assigned Notes and the Gap Note constitute valid, lawful, binding and genuine obligations of the Borrower and are enforceable against
the Borrower according to their respective terms, except as modified hereby.

 

(c)          Borrower
does not now have, never has had, and in any event waives any defense, cause of action, claim or counterclaim against Lender with
respect to the Assigned Notes, the Gap Note or any other note, mortgage, agreement, instrument, document or understanding relating
to the Assigned Notes, the Gap Note or with or in favor of Lender.

 

(d)          Borrower
does not now have any defense, cause of action, claim or counterclaim against the lenders of the Assigned Notes, and in any event
waives any right to assert any such defense, cause of action, claim or counterclaim.

 

[No Further Text on This Page –
Signature Page Follows]

 

Amended And Restated Promissory Note

 

    	10

    	 

    

 

IN WITNESS WHEREOF,
the Borrower has executed this Amended And Restated Promissory Note the day and year first written above.

 

	 	BORROWER:
	 	 
	 	ARC NYKNGHW001, LLC,
	 	a Delaware limited liability company
	 	 
	 	By:	/s/ Jesse C. Galloway
	 	Name:	Jesse C. Galloway
	 	Title:	Authorized Signatory
	 	 
	 	ARC NYKNGHW002, LLC,
	 	a Delaware limited liability company
	 	 
	 	By:	/s/ Jesse C. Galloway
	 	Name:	Jesse C. Galloway
	 	Title:	Authorized Signatory
	 	 
	 	ARC NYKNGHW003, LLC,
	 	a Delaware limited liability company
	 	 
	 	By:	/s/ Jesse C. Galloway
	 	Name:	Jesse C. Galloway
	 	Title:	Authorized Signatory

 

Amended And Restated Promissory Note

 

    	 

    	 

    

 

EXHIBIT A

 

Amended And Restated Promissory Note

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00206-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00206-of-00352.parquet"}]]