Document:

Loan Agreement dated 3/16/98

 EXHIBIT 10.15 
  
 LOAN AGREEMENT 
  
 Dated as of March 16, 1998 
  
 Between 
  
 GOLDMAN SACHS MORTGAGE COMPANY, 
 as Lender 
  
 and 
  
 COMMERCE SQUARE PARTNERS-PHILADELPHIA PLAZA, L.P. 
 as Borrower 
  

							
	 I.
	  	 DEFINITIONS; PRINCIPLES OF CONSTRUCTION
	  	1
				
	 	  	 Section 1.1
	  	 Definitions
	  	1
	 	  	 Section 1.2
	  	 Principles of Construction
	  	24
			
	 II.
	  	 GENERAL
	  	25
				
	 	  	 Section 2.1
	  	 The Loan
	  	25
				
	 	  	2.1.1	  	 Commitment
	  	25
	 	  	2.1.2	  	 Disbursement to Borrower
	  	25
	 	  	2.1.3	  	 The Note
	  	25
	 	  	2.1.4	  	 Use of Proceeds of the Loan
	  	25
				
	 	  	 Section 2.2
	  	 Principal and Interest
	  	26
				
	 	  	2.2.1	  	 Principal and Interest
	  	26
	 	  	2.2.2	  	 Accrued Interest
	  	26
	 	  	2.2.3	  	 Default Rate
	  	26
				
	 	  	 Section 2.3
	  	 Loan Repayment and Defeasance
	  	27
				
	 	  	2.3.1	  	 Repayment
	  	27
	 	  	2.3.2	  	 Voluntary Defeasance of the Notes
	  	27
	 	  	2.3.3	  	 Repayment Upon Default
	  	30
				
	 	  	 Section 2.4
	  	 Release of Property
	  	31
				
	 	  	2.4.1	  	 Total Defeasance
	  	31
	 	  	2.4.2	  	 Release on Payment in Full
	  	31
	 	  	2.4.3	  	 Further Assurances
	  	31
				
	 	  	 Section 2.5
	  	 Payments and Computations
	  	31
				
	 	  	2.5.1	  	 Making of Payments
	  	31
	 	  	2.5.2	  	 Computations
	  	31
	 	  	2.5.3	  	 Loan Account
	  	32
			
	 III.
	  	 CONDITIONS PRECEDENT
	  	32
				
	 	  	 Section 3.1
	  	 Conditions Precedent to the Loan
	  	32
			
	 IV.
	  	 REPRESENTATIONS AND WARRANTIES
	  	36
				
	 	  	 Section 4.1
	  	 Borrower Representations
	  	36
	 	  	 Section 4.2
	  	 Survival of Representations
	  	46
			
	 V.
	  	 AFFIRMATIVE COVENANTS
	  	46
				
	 	  	 Section 5.1
	  	 Borrower Covenants
	  	46

  

							
	 VI.
	  	 NEGATIVE COVENANTS
	  	56
				
	 	  	 Section 6.1
	  	 Borrower’s Negative Covenants
	  	56
			
	 VII.
	  	 ALTERATIONS AND EXPANSIONS; LEASING
	  	64
				
	 	  	 Section 7.1
	  	 Alterations and Expansion
	  	64
	 	  	 Section 7.2
	  	 Leasing
	  	69
			
	 VIII.
	  	 CASUALTY AND CONDEMNATION
	  	72
				
	 	  	 Section 8.1
	  	 Insurance Casualty and Condemnation
	  	72
				
	 	  	8.1.1	  	 Insurance
	  	72
	 	  	8.1.2	  	 Casualty; Application of Proceeds
	  	76
	 	  	8.1.3	  	 Condemnation
	  	78
			
	 IX.
	  	 ACCOUNTS AND RESERVES
	  	79
				
	 	  	 Section 9.1
	  	 Establishment and Maintenance of Deposit Account
	  	79
	 	  	 Section 9.2
	  	 Capital Reserve; Leasing Reserve; Deferred Maintenance Reserve; Unpaid TI/Leasing Commissions Reserve; Reserve Accounts
	  	79
				
	 	  	9.2.1	  	 Establishment and Maintenance of Reserve Accounts
	  	79
	 	  	9.2.2	  	 Disbursements from the Reserve Accounts
	  	81
	 	  	9.2.3	  	 No Other Disbursements from Reserve Accounts
	  	82
	 	  	9.2.4	  	 Release of Accounts Upon Repayment or Defeasance
	  	82
	 	  	9.2.5	  	 Obligations Unaffected
	  	83
				
	 	  	Section 9.3	  	 Tax and Insurance Escrow Account
	  	83
				
	 	  	9.3.1	  	 Establishment
	  	83
	 	  	9.3.2	  	 Application Generally
	  	83
				
	 	  	 Section 9.4
	  	 Disbursements from the Deposit Account; Borrower’s Obligation to Fund Deposit Account
	  	84
				
	 	  	9.4.1	  	 Disbursements Prior to the Anticipated Prepayment Date
	  	84
	 	  	9.4.2	  	 Disbursements After the Anticipated Prepayment Date
	  	87
	 	  	9.4.3	  	 Obligation to Fund; Deemed Payment
	  	87
	 	  	9.4.4	  	 Borrower to Provide for Reconciliation of Excess Disbursements
	  	88
				
	 	  	 Section 9.5
	  	 No Release if Event of Default Exists
	  	88
	 	  	 Section 9.6
	  	 Grant of Security Interest; Rights upon Default
	  	89
	 	  	 Section 9.7
	  	 Lender Not Responsible
	  	89
	 	  	 Section 9.8
	  	 Disbursements Relating to Material Alterations
	  	89
	 	  	 Section 9.9
	  	 Cash Hold During a Letter of Credit Default
	  	90
			
	 X.
	  	 DEFAULTS
	  	90
				
	 	  	 Section 10.1
	  	 Event of Default
	  	90

  

 ii 

							
	 	  	 Section 10.2
	  	 Remedies
	  	92
	 	  	 Section 10.3
	  	 Remedies Cumulative
	  	93
			
	 XI.
	  	 MISCELLANEOUS
	  	93
				
	 	  	 Section 11.1
	  	 Survival
	  	93
	 	  	 Section 11.2
	  	 Permitted Investments; Eligible Accounts; Eligible Institutions
	  	93
	 	  	 Section 11.3
	  	 Governing Law; Consent to Jurisdiction
	  	94
	 	  	 Section 11.4
	  	 Modification, Waiver in Writing
	  	95
	 	  	 Section 11.5
	  	 Delay Not a Waiver
	  	96
	 	  	 Section 11.6
	  	 Notices
	  	96
	 	  	 Section 11.7
	  	 Trial by Jury
	  	98
	 	  	 Section 11.8
	  	 Headings
	  	98
	 	  	 Section 11.9
	  	 Severability
	  	98
	 	  	 Section 11.10
	  	 Preferences
	  	98
	 	  	 Section 11.11
	  	 Waiver of Notice
	  	98
	 	  	 Section 11.12
	  	 Remedies of Borrower; Consents
	  	99
	 	  	 Section 11.13
	  	 Expenses; Indemnity
	  	99
	 	  	 Section 11.14
	  	 Exhibits and Schedules Incorporated
	  	100
	 	  	 Section 11.15
	  	 Offsets, Counterclaims and Defenses
	  	100
	 	  	 Section 11.16
	  	 No Joint Venture or Partnership
	  	100
	 	  	 Section 11.17
	  	 Publicity
	  	100
	 	  	 Section 11.18
	  	 Waiver of Marshaling of Assets
	  	100
	 	  	 Section 11.19
	  	 Waiver of Counterclaim
	  	101
	 	  	 Section 11.20
	  	 Conflict; Construction of Documents
	  	101
	 	  	 Section 11.21
	  	 Brokers and Financial Advisors
	  	101
	 	  	 Section 11.22
	  	 No Third Party Beneficiaries
	  	101
	 	  	 Section 11.23
	  	 Prior Agreements
	  	102
	 	  	 Section 11.24
	  	 Exculpation
	  	102
	 	  	 Section 11.25
	  	 Loan Assignability by Lender
	  	103
	 	  	 Section 11.26
	  	 Counterparts
	  	103
	 	  	 Section 11.27
	  	 Severance
	  	103

  

 iii 

 SCHEDULES 
  

					
	 Schedule 1
	  	-	  	 Deferred Maintenance Conditions

	 Schedule 2
	  	-	  	 Matters Regarding Representations

	 Schedule 3
	  	-	  	 Tenants Required to Deliver Subordination and Attornment Agreements

	 Schedule 4
	  	-	  	 Rent Delinquencies

	 Schedule 5
	  	-	  	 Lease Termination Rights

	 Schedule 6
	  	-	  	 Tenant Costs for Specified Leases

	 Schedule 7
	  	-	  	 Required Leasing Reserve Account Amounts

	 Schedule 8
	  	-	  	 Capital Expenditure Reserve Requirements

	 Schedule 9
	  	-	  	 Permitted Owners

	 Schedule 10
	  	-	  	 Approved Holders of Mezzanine Loan

	
	EXHIBITS
			
	 Exhibit A
	  	-	  	 Form of Tranche A Note

			
	 Exhibit B
	  	-	  	 Form of Tranche B Note

  

 LOAN AGREEMENT 
  
 THIS LOAN AGREEMENT, dated as of March 16 1998 (as amended, restated, replaced, supplemented or otherwise modified from time
to time, this “Agreement”), is among GOLDMAN SACHS MORTGAGE COMPANY, a New York limited partnership, and COMMERCE SQUARE PARTNERS-PHILADELPHIA PLAZA, L.P., a Delaware limited partnership. 
  
 All capitalized terms used herein shall have the respective meanings set
forth in Section 1.1 hereof. 
  
 W I T
N E S S E T H: 
  
 WHEREAS, Borrower, a Single Purpose Entity, desires to obtain the Loan from Lender; and 
  
 WHEREAS, Lender is willing to make the Loan to Borrower, subject to and in accordance with the terms of this Agreement and the other Loan Documents;

  
 NOW, THEREFORE, in consideration of the making of the Loan by
Lender and the covenants, agreements, representations and warranties set forth in this Agreement, the parties hereto hereby covenant, agree, represent and warrant as follows: 
  
 I. DEFINITIONS; PRINCIPLES OF CONSTRUCTION 
  
 Section 1.1 Definitions. For purposes of this Agreement, except as otherwise expressly provided herein: 

 
 “Above Market IBM Rent Component” shall mean $740,284
each month in which the IBM Lease remains in effect. 
  
 “Acceptable Manager” shall mean any of (i) the Current Manager or any Affiliate of the Current Manager or Borrower, (ii) a reputable and experienced professional management company or an in-house property management
department which, at the time of its engagement by Borrower as manager, shall have under its management (x) at least 3,000,000 rentable square feet of Class A Office space including at least one building in a central business district which shall
contain not less than 500,000 rentable square feet, excluding the Property, or (y) at least five (5) office buildings, excluding the Property, each of which shall be Class A office buildings located in central business district locations and each of
which shall contain not less than 500,000 rentable square feet or (iii) any other management company which is acceptable to the Rating Agencies and Lender in their sole discretion. 
  
 “Accrued Interest” shall mean all interest accruing in respect of the Tranche A Note in the amount equal to
the difference between the amount which accrues at the Revised Interest Rate and the amount which accrues at the Fixed Rate. 
  

 “Actual Knowledge” means the actual collective knowledge of Messrs. Murry N. Gunty,
James A. Thomas and Randall L. Scott, on the applicable date, having made only such inquiry and investigation as would be customary for an institutional investor in connection with the acquisition, ownership and management of properties comparable
to the Property. 
  
 “Adjacent Property” shall
have the meaning set forth in Section 7.2(g). 
  
 “Affiliate” shall mean a Person or Persons directly or indirectly, through one or more intermediaries, controlling, controlled by or under common control with the Person or Persons in question. The term “control”,
as used in the immediately preceding sentence, shall mean, with respect to a Person that is a corporation, the right to exercise, directly or indirectly, more than 50% of the voting rights attributable to the shares of the controlled corporation
and, with respect to a Person that is not a corporation, the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of the controlled Person. 
  
 “Affiliate Office Leases” shall mean those certain three
leases, two of which are dated March 18, 1987 and one of which is dated January 1, 1996, between a predecessor of Current Manager and a predecessor of Borrower, each relating to space on the 20th floor of the Improvements. 
  
 “ALTA” shall mean American Land Title Association, or any
successor thereto. 
  
 “Alteration” shall have
the meaning set forth in Section 7.1 hereof. 
  
 “Alteration Period” shall have the meaning set forth in Section 7.1(e) hereof. 
  
 “Annual Budget” shall mean Borrower’s annual operating and capital budget (including revisions thereof), approved by Lender where
such approval is required pursuant to Section 5.1(p) hereof, for any Fiscal Year of Borrower setting forth, in reasonable detail, Borrower’s good faith estimates of the anticipated results of operations of the Property, including revenues from
all sources, all Operating Expenses, management fees and Capital Expenditures and setting forth Borrower’s leasing strategy for the Property for such annual period. 
  
 “Anticipated Prepayment Date” shall mean April 11, 2008. 
  
 “Approved Banks” shall mean (x) PNC Bank, Chase, First
Union, NationsBank, Bankers Trust, Union Bank of Switzerland or Bank of America, in each case only for so long as it shall have the long-term unsecured debt rating from the applicable Rating Agencies at least equivalent to such long-term unsecured
debt rating as of the date of this Agreement or (y) any other bank or other financial institution which has (i) (a) a minimum net worth of $500,000,000, or (b) total assets of $5,000,000,000 and (ii) a minimum long-term unsecured debt rating from
the applicable Rating Agencies at least equivalent to the Required Rating. 
  
 “Assignment of Agreements” shall mean that certain first priority Assignment of Agreements, Licenses, Permits and Contracts, dated as of the date hereof, from Borrower, as assignor, to Lender, as
assignee, assigning to Lender as security for the Obligations, to the extent assignable, all of Borrower’s interest in and to the Management Agreement and all other 

  

 - 2 - 

 
licenses, permits and contracts necessary for the use and operation of the Property, as the same may be amended, restated, replaced, supplemented or
otherwise modified from time to time. 
  
 “Assignment of
Leases” shall mean that certain first priority Assignment of Leases and Rents, dated as of the date hereof, from Borrower, as assignor, to Lender, as assignee, assigning all the Leases and Rents with respect to the Property, as the same may
be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Bankruptcy Plan” shall mean that certain Second Amended Plan of Reorganization of Philadelphia Plaza Associates, Bankruptcy no. 97-18862R, United States Bankruptcy Court for the Eastern District of
Pennsylvania. 
  
 “Basic Carrying Costs” shall
mean the sum of the following costs associated with the Property: (i) Taxes and Other Charges; and (ii) Insurance Premiums. 
  
 “Borrower” shall mean Commerce Square Partners-Philadelphia Plaza, a Delaware limited partnership, together with its successors and
assigns as permitted hereunder. 
  
 “Business
Day” shall mean any day other than a Saturday, Sunday or any other day on which national banks in New York are not open for business. 
  
 “Capital Expenditures” shall mean those expenditures with respect to the Property that are required to be capitalized and amortized or
depreciated in accordance with GAAP. 
  
 “Capital Reserve
Account” shall have the meaning set forth in Section 9.2.1(b) hereof. 
  
 “Capped Expenses” shall mean the sum of (i) the commitment fee payable with respect to the Loan and (ii) all out of pocket expenses and costs incurred by Lender (or any of its affiliates) with respect
to the making of the Loan (other than expenses incurred by Lender in connection solely with any Securitization, which expenses and costs shall be paid by Lender) (as well as such costs and expenses as Lender (or any of its affiliates) customarily
include in reimbursables, such as the duplication and binding of presentation books), reasonable travel expenses, review of engineering reports, credit reports, appraisals, preparation, negotiation, execution and delivery of this Agreement and the
other Loan Documents and the consummation of the transactions contemplated hereby and thereby (including reasonable Lender’s attorneys’ fees and expenses in connection therewith and in connection with Lender’s due diligence), and any
other out of pocket expenses relating to credit and collateral evaluations (including, without limitation, preliminary evaluations prepared by any of the Rating Agencies), which Capped Expenses shall in no event exceed 1.35% of the original
principal balance of the Loan. In no event shall Capped Expenses include the costs of obtaining a Qualified Title Insurance Policy or a Qualified Survey, any transfer tax or mortgage or recording tax or fee, the costs of obtaining a Phase I or Phase
II environmental report or the costs of obtaining an agreed upon procedures report from a “Big Five” independent certified public accounting firm with respect to the 1997 unaudited balance sheet and income statement for the Property
prepared in accordance with GAAP, without footnotes. 
  

 - 3 - 

 “Cash” shall mean coin or currency of the United States of America or immediately
available federal funds, including such funds delivered by wire transfer. 
  
 “Cash and Cash Equivalents” shall mean (i) Cash, (ii) U.S. Government Securities, (iii) interest bearing or discounted obligations of federal agencies and government sponsored entities or pools of
such instruments offered by Approved Banks and dealers, including, without limitation, Federal Home Loan Mortgage Corporation participation sale certificates, Government National Mortgage Association modified pass-through certificates, Federal
National Mortgage Association bonds and notes, Federal Farm Credit System securities (provided all of the obligations described in this clause (iii) shall be rated “AAA” or backed by the full faith and credit of the United States
government for, full and timely payment), (iv) time deposits; domestic and Eurodollar certificates of deposit, bankers acceptances or commercial paper rated at least F-l+ (or its equivalent) by the applicable Rating Agencies, and/or guaranteed by an
entity having a long-term rating at least equal to the Required Rating, floating rate notes, other money market instruments and letters of credit each issued by Approved Banks (provided that if the scheduled maturity of any such note, instrument or
letter of credit is more than six (6) months after the date of purchase of such obligation by Borrower or Lender, the note, instrument or letter of credit must be issued by a bank having a long-term unsecured debt rating from the applicable Rating
Agencies at least equal to the Required Rating), (v) obligations issued by state and local governments or their agencies, carrying a rating at least equal to the Required Rating and/or guaranteed by an irrevocable letter of credit of an Approved
Bank (provided that if the scheduled maturity of any such obligation is more than six (6) months after the date of purchase by Borrower or Lender and such obligation is guaranteed by a letter of credit, the letter of credit guaranteeing such
obligation must be issued by an Approved Bank having a long-term unsecured debt rating from each of the applicable Rating Agencies at least equal to the Required Rating), (vi) repurchase agreements with major banks and primary government securities
dealers fully secured by U.S. government or agency collateral with a value equal to or exceeding the principal amount on a daily basis and held in safekeeping (provided that at the time of purchase the counterparty to such repurchase agreement must
have a long-term unsecured debt rating at least equal to the Required Rating), (vii) investments in money market funds and money market mutual funds all the assets of which are comprised of investments described in clauses (i) through (vi) above,
and (viii) any other investment which each of the applicable Rating Agencies confirm in writing will not in and of itself result in a downgrading or withdrawal of any of the ratings then assigned to any Certificates. Except as otherwise provided in
this definition, Cash and Cash Equivalents shall not include any investments commonly known as “derivatives”, any investments requiring a payment above par for an obligation, and under no circumstances shall Cash and Cash Equivalents
include interest-only strips. Any investment in Cash and Cash Equivalents shall have a maturity date not later than one Business Day prior to the date that the proceeds therefrom are required hereunder. 
  
 “Cash Hold” shall have the meaning set forth in Section 9.9
hereof. 
  
 “Casualty” shall have the meaning
specified in Section 8.1.2(a) hereof. 
  
 “Certificates” shall have the meaning specified in the Cooperation Agreement. 
  
 “Chase” shall mean The Chase Manhattan Bank, N.A., or any successor thereto. 
  

 - 4 - 

 “Closing Date” shall mean the date of the funding of the Loan. 
  
 “Code” shall mean the Internal Revenue Code of 1986, as
amended, and as it may be further amended from time to time, any successor statutes thereto, and applicable U.S. Department of Treasury regulations issued pursuant thereto in temporary or final form. 
  
 “Condemnation” shall have the meaning set forth in Section
8.1.3 hereof. 
  
 “Consent of Manger” shall mean
that certain Consent of Manager dated as of the date hereof between Current Manager and Lender. 
  
 “Cooperation Agreement” shall mean that certain Mortgage Loan Cooperation Agreement, dated as of the date hereof, among Borrower, PM-AIT
and Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Credit Facility” shall mean a clean, irrevocable, unconditional, transferable letter of credit, which has not been encumbered or pledged
in any manner other than in favor of Lender, payable on sight draft only, in respect of which (a) any reimbursement obligation is not secured by the Property or any other property pledged to secure the Obligations, and (b) Borrower shall be
permitted to have a contingent reimbursement obligation only in favor of any lender with respect to any Credit Facility issued by such lender which Credit Facility was issued for the benefit of Borrower, if and only if (i) such lender’s rights
with respect to such reimbursement obligation are fully subordinated to payment of the Debt, (ii) no payment shall be made to such lender in respect of such reimbursement obligation during the occurrence and continuation of an Event of Default and
(iii) such lender shall be prohibited from exercising any and all remedial action against Borrower in connection therewith until the Debt has been paid in full, in favor of Lender and entitling Lender to draw thereon in New York, New York or in such
other city as Lender’s corporate trust office may be located at the time of the issuance of such letter of credit, issued by a domestic bank or the U.S. agency or branch of a foreign bank the long-term unsecured debt rating of which at the time
such letter of credit is delivered and throughout the term of such letter of credit is not less than the then Required Rating, or, if there are no domestic banks or U.S. agencies or branches of a foreign bank having such long-term unsecured debt
rating then issuing letters of credit, then such letter of credit may be issued by a domestic bank the long-term unsecured debt rating of which is not lower than “AA” by the applicable Rating Agencies. Anything to the contrary herein
notwithstanding, the parties hereto agree that, for so long as Chase, First Union, PNC Bank, NationsBank, Bankers Trust, Union Bank of Switzerland, or Bank of America, as the case may be, has a long term senior unsecured credit rating by the
applicable Rating Agencies not less than its rating as of the Closing Date, any such bank may be the issuer of any Credit Facility required or permitted hereunder. Such Credit Facility shall provide that it will automatically renew unless the issuer
of such Credit Facility delivers written notice to Lender, as beneficiary, and Borrower, as account party, at least 30 days prior to its expiration, that such Credit Facility will not be renewed, and, in-such case, shall provide that Lender, as
beneficiary, shall be entitled to draw upon the full amount of such Credit Facility. Without in any way limiting the generality of the foregoing, if any Credit Facility is not renewed or replaced with another Credit Facility prior to the date that
is 30 days prior to its expiration, Lender shall be entitled to draw upon the full amount of such Credit Facility. 
  

 - 5 - 

 “Current Manager” shall mean Thomas Development Partners, LLC, a California limited
liability company (or any California limited partnership which is a successor thereto, provided that all direct and indirect ownership interests in such entity remain the same). 
  
 “Debt” shall mean the outstanding principal amount set forth in, and evidenced by, the Notes, together with
all interest accrued and unpaid thereon and all other sums due to Lender in respect of the Loan, including the Yield Maintenance Payments, if any, and any sums due under the Notes, this Agreement, the Mortgage or in any other Loan Document.

  
 “Debt Securities” shall mean debt
obligations, other than U.S. Government Securities, of any Person, whether evidenced by bonds, notes, debentures, certificates, book entry deposits, certificates of deposit, commercial paper, bankers acceptances, reinvestment letters, funding
agreements or other instruments, which (x) are not subject to prepayment or redemption prior to maturity and (y) are rated not less than the then Required Rating; or any combination of the foregoing, 
  
 “Debt Service” shall mean, with respect to any specified
date or a particular period of time, scheduled principal and interest payments under the Notes (which shall not include any payments applied to principal pursuant to Section 9.4.2(h) or Accrued Interest pursuant to 9.4.2(i)) due as of such date or
payable during such period (including the last day thereof), as applicable. 
  
 “Default” shall mean the occurrence of any event hereunder or under any other Loan Document which, but for the giving of notice or passage of time, or both, would be an Event of Default. 

 
 “Default Rate” shall mean a rate per annum equal to the
lesser of (a) the maximum rate permitted by applicable law and (b) the greater of (x) five percent (5%) above the applicable Interest Rate and (y) the rate from time to time publicly announced by Citibank, N.A. (or any successor thereto) as its base
rate on corporate loans. 
  
 “Defeasance” shall
have the meaning set forth in Section 2.3.2(a) hereof. 
  
 “Defeasance Date” shall have the meaning set forth in Section 2.3.2(a) hereof. 
  
 “Defeasance Deposit” shall mean an amount equal to the sum of (i) with respect to a total Defeasance, all costs and expenses (including
the purchase price) incurred or to be incurred in the purchase of U.S. Government Securities necessary to meet the Scheduled Defeasance Payments; (ii) with respect to a partial Defeasance, (A) a portion of the remaining aggregate outstanding
principal amount of the Note to be defeased equal to the amount to be partially Defeased plus (B) without duplication, all costs and expenses (including the purchase price) incurred or to be incurred in the purchase of U.S. Government
Securities necessary to meet the Scheduled Defeasance Payments; and (iii) in either case, any revenue, documentary stamp or intangible taxes or any other tax or charge due in connection with the transfer of the Note to be defeased, the creation of
one or more Defeased Notes and Undefeased Note, if applicable, any transfer of one or more Defeased Notes or otherwise payable in order to fulfill the agreements set forth in Sections 2.3 and 2.4 hereof. 
  

 - 6 - 

 “Defeased Note” shall have the meaning set forth in Section 2.3.2(a)(vi) hereof.

  
 “Deferred Maintenance Conditions” shall mean
the conditions at the Property described on Schedule 1 hereto, which Borrower shall have one year from the Closing Date (subject to the provisions hereof) to correct. 
  
 “Deferred Maintenance Reserve Account” shall have the meaning set forth in Section 9.2.1(c) hereof.

  
 “Deposit Account” shall mean that account
established and maintained pursuant to the Deposit Account Agreement. 
  
 “Deposit Account Agreement” shall mean that certain Deposit Account Agreement, dated as of the date hereof, among Borrower, Lender and PNC Bank, National Association, regarding the creation of the Deposit Account and to the
collection and application of all the Rents from the Property, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Eligible Account” shall have the meaning given such term in Section 11.2 hereof. 
  
 “Eligible Collateral” shall mean U.S. Government Securities,
Debt Securities, Credit Facility or Cash and Cash Equivalents, or any combination thereof. 
  
 “Eligible Institution” shall have the meaning given such term in Section 11.2 hereof. 
  
 “Employee Benefit Plan” shall have the meaning given such term in Section 4.1(i) hereof. 
  
 “Environmental Indemnity” shall mean that certain
Environmental Indemnification Agreement, dated as of the date hereof, executed by Borrower in connection with the Loan for the benefit of Lender. 
  
 “Equipment” shall have the meaning set forth in the Mortgage. 
  
 “Equityholders Agreement” shall mean that certain Equityholders Agreement of even date herewith among the
partners of Borrower, Thomas Development Partners-Phase I, Inc., Maguire/Thomas Partners-Philadelphia, Ltd., Thomas Investment Partners, Ltd. and TDP-Commerce Square Gen-Par, Inc., as the same may be amended, restated, replaced, supplemented or
otherwise modified from time to time in accordance with Section 6.1(i) hereof. 
  
 “ERISA” shall have the meaning set forth in Section 4.1(i) hereof. 
  
 “Event of Default” shall have the meaning set forth in Section 10.1(a) hereof. 
  
 “Expansion” shall have the meaning set forth in Section 7.1
hereof. 
  

 - 7 - 

 “FASB 13” shall mean Financial Accounting Standards Board Statement No. 13 (accounting
for leases), paragraph 19(b). 
  
 “Final
Completion” shall mean, with respect to any specified work, the final completion of all such work, including the performance of all “punch list” items, as confirmed by an Officer’s Certificate and, with respect to any
Material Alteration or Material Expansion, a certificate of the Independent Architect, each as contemplated by Article VII. 
  
 “Final Order” shall mean an order of the bankruptcy court having jurisdiction over the Bankruptcy Plan, as entered on the docket in the
bankruptcy case of Prior Owner, which has not been reversed, stayed, modified or amended, as to which the time to appear or seek certiorari has expired, and as to which no appeal or petition for certiorari has been timely taken, or to which any
appeal that has been taken or any petition for certiorari that has been timely filed has been resolved by the highest court to which the order or judgment could be appealed or from which certiorari could be sought. 
  
 “First Union” shall mean First Union Bank, or a successor
thereto, including without limitation, if the proposed merger between First Union and Corestates shall be consummated, any successor entity resulting from such merger. 
  
 “Fiscal Year” shall mean the period commencing on the Closing Date and ending on and including December 31
of the calendar-year in which the Closing Date occurs and thereafter each twelve-month period commencing on January 1 and ending on December 31 during each year of the Term. 
  
 “Fitch” shall mean Fitch Investors Service, L.P., or an successor thereto. 
  
 “Fixed Rate” shall mean (i) during any period in which a
Letter of Credit Default shall not exist, a rate of interest per annum of 6.995% or (ii) during any period in which a Letter of Credit Default shall exist, 7.245%. 
  
 “GAAP” shall mean generally accepted accounting principles in the United States of America as of the
relevant date in question. 
  
 “Goldman” shall
mean Goldman, Sachs & Co., a New York partnership. 
  
 “Governmental Authority” shall mean any court, board, agency, commission, office or authority of any nature whatsoever of or for any governmental unit (federal, state, county, district, municipal, city or otherwise),
whether now or hereafter in existence. 
  
 “Hyperamortization Period” shall have the meaning set forth in Section 9.4.2 hereof. 
  
 “IBM Lease” shall mean that certain lease dated December 15, 1984 between Prior Owner and International Business Machines Corporation, as
the same may have been and may in the future be amended, restated, replaced, supplemented, consolidated or otherwise modified from time to time. 
  

 - 8 - 

 “IBM Space” shall mean any space in the Improvements which is subject to the IBM Lease.

  
 “IBM Space Reduction Amount” shall have the
meaning set forth in Section 9.2.1. 
  
 “Improvements” shall have the meaning set forth in the Mortgage. 
  
 “Independent Architect” shall mean any reputable architecture or construction management firm that is licensed or registered in the Commonwealth of Pennsylvania which is not an Affiliate of Lender or
Borrower. 
  
 “Independent Director” shall have
the meaning set forth in Section 4.1(cc)(xvi) hereof. 
  
 “Insurance Premiums” shall have the meaning set forth in Section 8.1.1(d) hereof. 
  
 “Insurance Requirements” shall mean all terms of any insurance policy required hereunder covering or applicable to the Property or any
part thereof, all requirements of the issuer of any such policy, and all orders, rules, regulations and other requirements of the National Board of Fire Underwriters (or any other body exercising similar functions) applicable to or affecting the
Property or any part thereof or any use of the Property or any part thereof. 
  
 “Interest Rate” shall mean, for the period from and including the Closing Date to but excluding the Anticipated Prepayment Date, a rate equal to the Fixed Rate, and for the period from and including
the Anticipated Prepayment Date and thereafter, a rate equal to the Revised Interest Rate. 
  
 “Investment Grade” shall mean having a long term senior unsecured debt rating not lower than BBB (or the equivalent) by the applicable Rating Agencies. 
  
 “Lease” shall mean any lease, sublease, sub-sublease,
license, letting, concession, occupancy agreement or other agreement (whether written or oral and whether now or hereafter in effect), existing as of the date hereof or hereafter entered into, pursuant to which any Person is granted a possessory
interest in, or right to use or occupy all or any portion of any space in the Property and in which Borrower owns the lessor’s (or equivalent) position thereunder, and every modification amendment or other agreement relating to such lease,
sublease, sub-sublease, or other agreement entered into in connection with such lease, sublease, sub-sublease, or other agreement and all agreements related thereto, and every guarantee of the performance and observance of the covenants, conditions
and agreements to be performed and observed by the other party thereto. In no event shall the term “Lease” include any sublease which has been entered into by any tenant of the Improvements and any third party which is not an Affiliate of
Borrower or any Manager. 
  
 “Lease Form” shall
have the meaning set forth in Section 3.1(u) hereof. 
  

 - 9 - 

 “Leasing Commissions” shall mean amounts payable to brokers or others in connection with
the execution of a Lease which is required to be capitalized and amortized over the applicable lease term in accordance with GAAP. 
  
 “Leasing Guidelines” shall have the meaning set forth in Section 7.2(d) hereof. 
  
 “Leasing Reserve Account Balance” shall have the meaning set
forth in Section 9.2.1 hereof. 
  
 “Legal
Requirements” shall mean all federal, state, county, municipal and other governmental statutes, laws, rules, orders, regulations, ordinances, judgments, decrees and injunctions of Governmental Authorities affecting Borrower or the Property
or any part thereof or the construction, use, alteration or operation thereof or any part thereof, whether now or hereafter enacted and in force, and all permits, licenses and authorizations and regulations relating thereto, and all covenants,
agreements, restrictions and encumbrances contained in any instruments, either of record or known to Borrower, at any time in force affecting the Property or any part thereof, including any which may (i) require repairs, modifications or alterations
in or to the Property or any part thereof, or (ii) in any way limit the use and enjoyment thereof. 
  
 “Lender” shall mean Goldman Sachs Mortgage Company, a New York limited partnership, together with its successors and assigns. 

 
 “Letter of Credit Default” shall mean the failure of
Borrower to do either of the following by Noon Eastern Time on March 20, 1998: (i) to replace or modify all existing letters of credit, bonds or other similar collateral which constitute Security Deposits so that Lender shall be named as a
beneficiary, mortgagee or payee thereof and deliver the originals of such documents to Lender, or in lieu thereof, to deposit in the Security Deposit Account Cash in the aggregate amount of a such letters of credits, bonds or similar collateral
which are not so replaced or modified; or (ii) to deliver Cash or a Credit Facility with respect to the initial deposits to the Leasing Reserve Account and the Deferred Maintenance Reserve Account in the amount required by, and otherwise in
compliance with, the provisions of Section 9.2.1. 
  
 “Licenses” shall have the meaning set forth in Section 4.1(v) hereof. 
  
 “Lien” shall mean any mortgage, deed to secure debt, deed of trust, lien, pledge, hypothecation, assignment, security interest, security
title, or any other encumbrance, charge or transfer of, on or affecting the Property or any portion thereof or Borrower, or any interest therein, including any conditional sale or other title retention agreement, any financing lease having
substantially the same economic effect as any of the foregoing, the filing of any financing statement, and mechanic’s, materialmen’s and other similar liens and encumbrances. 
  
 “Loan” shall mean the loans made by Lender to Borrower pursuant to Article 2 and evidenced and/or secured
by the Notes, the Mortgage and the other Loan Documents. 
  
 “Loan Documents” shall mean, collectively, this Agreement, the Notes, the Mortgage, the Assignment of Agreements, the Assignment of Leases, the Environmental Indemnity, the Cooperation Agreement, the Deposit Account
Agreement, the Consent of Manager, and any other document executed and/or delivered in connection with the Loan or 

  

 - 10 - 

 
hereafter delivered by or on behalf of Borrower pursuant to the requirements hereof or of any other Loan Document (including, without limitation, any
Officer’s Certificate), as the same may be amended, restated, replaced, supplemented, consolidated or otherwise modified from time to time. 
  
 “Low Debt Service Reserve Account” shall have the meaning set forth in Section 9.4.1 hereof. 
  
 “Management Agreement” shall mean (i) the property
management and leasing agreement entered into by Borrower and the Current Manager, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time provided that such amendment, restatement, replacement,
supplement or modification is on commercially reasonable terms and conditions and is on an arm’s-length basis (provided, however, that Lender acknowledges that the management fee payable to the Current Manager under the existing Management
Agreement, as the same may be amended, may be higher than the fee which would be payable on an arm’s-length basis and Lender hereby approves such fee for so long as Current Manager is an Affiliate of Borrower and such fee does not exceed three
percent (3%) of gross revenues from the Property), or (ii) any other property and management agreement entered into by Borrower and any Acceptable Manager, provided that the terms and conditions of such property and management agreement (and all
amendments, restatements, replacements, supplements and modification thereof or thereto) are commercially reasonable and on an arm’s-length basis pursuant to which such Acceptable Manager is to provide property management, leasing and other
services with respect to the Property. 
  
 “Manager” shall mean the Person managing the Property, together with its permitted successors and assigns, and any replacement manager therefor. 
  
 “Material Adverse Effect” means any event or condition that has a material adverse effect upon (i) the
business operations, economic performance, assets or condition (financial or otherwise) of Borrower, (ii) the ability of Borrower to perform the material provisions of any of the Loan Documents, (iii) the enforceability or validity of any Loan
Document or the perfection or priority of any Lien created under any Loan Document, (iv) the value of, or cash flow from, the Property or the operation thereof, or (v) the rights and remedies of Lender under the Loan Documents. 
  
 “Material Agreements” shall mean material agreements (other
than Leases and any Management Agreement) relating to the ownership, development, use, operation, leasing, maintenance or repair of the Property and material Operating Agreements. 
  
 “Material Alteration” shall mean any Alteration to be performed by or on behalf of Borrower at the Property
(other than an Alteration the cost of which a Tenant is obligated to pay or reimburse to Borrower and which Borrower reasonably believes will be so paid or reimbursed, as applicable) the total cost of which, as reasonably estimated by an Independent
Architect, exceeds the Threshold Amount. 
  
 “Material
Casualty” shall have the meaning set forth in Section 8.1.2(c) hereof. 
  

 - 11 - 

 “Material Condemnation” shall have the meaning set forth in Section 8.1.2(c) hereof.

  
 “Material Expansion” shall mean any Expansion
to be performed by or on behalf of Borrower at the Property the total cost of which, as reasonably estimated by an Independent Architect, exceeds the Threshold Amount. 
  
 “Maturity Date” shall mean, with respect to each of the Tranche A Note and the Tranche B Note, the date on
which the final payment of principal of such Note (and any Defeased Notes, if applicable, relating thereto) becomes due and payable as therein provided, whether at the Stated Maturity Date with respect to such Note, by declaration of acceleration,
or otherwise. 
  
 “Mezzanine Lender” shall mean
Prometheus Mid-Atlantic Holding, L.P., a Delaware limited partnership. 
  
 “Mezzanine Loan” shall mean the loan given by the Mezzanine Lender pursuant to the Mezzanine Loan Documents. 
  
 “Mezzanine Loan Documents” shall mean that certain Credit Agreement of even date herewith between each Partner Borrowers and Mezzanine
Lender, together with all and any documents executed in connection therewith (including, without limitation, all documents evidencing or securing the loans made pursuant thereto), as the same may be amended, restated, replaced, supplemented,
consolidated or otherwise modified from time to time in accordance with Section 6.1(h). 
  
 “Minor Loss” shall have the meaning set forth in Section 8.1.2(b) hereof. 
  
 “Mitsubishi Loan” shall mean the loan which is secured by that certain Mortgage and Security Agreement, dated July 2, 1987 and recorded
July 24, 1987 in Mortgage Book FHS 1156, page 381, made by Prior Owner in favor of The Mitsubishi Trust and Banking Corporation. 
  
 “Monthly Debt Service Payment Amount” shall have the meaning set forth in Section 2.2.1(b) hereof. 
  
 “Moody’s” shall mean Moody’s Investors Service,
Inc., or any successor thereto. 
  
 “Mortgage”
shall mean that certain first priority Mortgage, Security Agreement, Assignment of Leases, Rents and Revenue and Fixture Filing, dated as of the date hereof, executed and delivered by Borrower as security for the Loan and the Obligations and,
encumbering the Property, as the same may be amended, restated, replaced, supplemented, consolidated or otherwise modified from time to time. 
  
 “Net Operating Income” shall mean, for a specified period, the excess of Operating Income over Operating Expenses for such period. In
calculating Net Operating Income for any period as aforesaid, the most recently prepared annual audited operating statement prepared in accordance with GAAP (as adjusted to eliminate the effect of FASB 13) 

  

 - 12 - 

 
for the Property shall be used, except that if any unaudited quarterly operating statements then available cover quarters since the end of the Fiscal Years
covered in such annual audited operating statement, then the Net Operating Income determined in accordance with the immediately preceding sentence shall be adjusted by adding the Net Operating Income for the quarters covered in such unaudited
quarterly operating statements and deducting the Net Operating Income for the corresponding quarters in the prior Fiscal Year. By way of illustration, if Net Operating Income were to be determined on May 15, 1999, Net Operating Income would equal
Net Operating Income shown in the annual audited operating statement for 1998, plus the Net Operating Income shown in the unaudited quarterly operating statement for the first quarter of 1999, less the Net Operating Income shown in the unaudited
quarterly operating statement for the first quarter of 1998. 
  
 “Notes” shall mean the Tranche A Note and the Tranche B Note, collectively, and “Note” shall mean either the Tranche A Note or the Tranche B Note. 
  
 “Obligations” shall mean all amounts payable by Borrower
under the Notes, including, without limitation, installments of interest thereon and principal thereof and all costs, damages, losses, fees, expenses and other amounts of whatever nature payable under, and the performance of all covenants and
agreements required on the part of Borrower by, this Agreement and the other Loan Documents, together with interest thereon as specifically provided, including any of the foregoing incurred by or on behalf of the Lender in enforcing the payment of
any of the foregoing, including, without limitation, reasonable attorneys’ fees and disbursements. 
  
 “Officer’s Certificate” shall mean a certificate made by an individual authorized to act on behalf of Borrower and, to the extent
applicable, any constituent Person with respect to Borrower. Without limiting the foregoing, if the individual signing the certificate is doing so on behalf of a corporation, then such individual shall hold the office of President, Vice President or
Chief Financial Officer (or the equivalent) with respect to such corporation; provided, however, that Lender agrees that, regardless of the office which he may hold, Randall Scott may sign any such certificate. 
  
 “Operating Agreements” shall mean reciprocal easement and/or
operating agreements (including, without limitation, the REA); covenants, conditions and restrictions; and similar agreements affecting the Property and binding upon and/or benefiting Borrower and other third parties. 
  
 “Operating Expenses” shall mean, for any specified period,
all expenses incurred for such specified period by Borrower (or by a Manager for the account of Borrower) during such period in connection with the operation of the Property, as well as bookkeeping, accounting, insurance costs, wages and other costs
and expenses incurred for such specified period, determined, in each case, consistently in accordance with GAAP. “Operating Expenses” shall not include (1) depreciation or amortization or other noncash items except amortization of items
which are otherwise Operating Expenses but which are prepaid, (2) the principal of and interest on the Notes or any other indebtedness of Borrower, (3) income taxes or other Taxes in the nature of income taxes, (4) any expenses (including legal,
accounting and other professional fees, expenses and disbursements) incurred in connection with and allocable to the making of 

  

 - 13 - 

 
and maintenance of the Notes, (5) the cost of Tenant Improvements, Leasing Commissions and any Capital Expenditures, and (6) distributions to the partners in
Borrower or any management or asset management fees or similar compensation liabilities incurred to any Affiliate of Borrower (other than liabilities incurred in respect of customary arm’s-length management fees or similar compensation to any
Affiliate which is an Acceptable Manager pursuant to a Management Agreement; provided, however, that Lender acknowledges that the management fee payable to the Current Manager under the existing Management Agreement may be higher than fee which
would be payable on an arms-length basis and agrees that such fee may be included in Operating Expenses for so long as Current Manager is an Affiliate of Borrower and such fee does not exceed three percent (3%) of gross revenues from the Property).

  
 “Operating Income” shall mean, for any
specified period, all amounts received by or receivable by or payable to or for the account of Borrower (or by a Manager for the account of Borrower, including, without duplication, any amounts deposited in the Deposit Account) during such period in
connection with the operation of the Property, determined on a GAAP basis of accounting, including, without limitation, the following, without duplication: 
  
 (i) all Rent (adjusted to eliminate the effect of FASB 13) and charges received by Borrower (or by a Manager for the account of Borrower,
including, without duplication, any amounts deposited in the Deposit Account) for electricity, oil, gas, water, steam, beat, ventilation, air conditioning and any other energy, telecommunications, telephone, utility or similar items, including
overtime usage, HVAC equipment charges, sprinkler charges, escalation charges, license fees, maintenance fees, charges for improvements, Taxes and other amounts received by Borrower (or by a Manager for the account of Borrower) under any Lease,
sublease or other agreement relating to the Property pursuant to which any utilities, facilities, equipment, parking facilities or other services are furnished by Borrower, but excluding any Security Deposits received; 
  
 (ii) all amounts receivable by or payable to Borrower (or by
a Manager for the account of Borrower including, without duplication, any amounts deposited in the Deposit Account), pursuant to Operating Agreements relating to the Property; 
  
 (iii) condemnation awards receivable by or payable to Borrower to the extent that such awards are
compensation for lost rent; 
  
 (iv) business
interruption and loss of “rental value” insurance proceeds receivable by or payable to Borrower; 
  
 (v) income receivable from cash holdings and interest from notes in lieu of rent; and 
  
 (vi) all other amounts receivable by or payable to Borrower
(or, by a Manager for the account of Borrower, including, without duplication, any amounts deposited in the Deposit Account) during such period in respect of items, the nature of which in accordance with GAAP, would be included in Borrower’s
GAAP financial statements for such period or any other period as operating income of the Property and 

  

 - 14 - 

 
which are not items of extraordinary income (including, without limitation, accrued reimbursements for Taxes and Insurance Premiums from Tenants).

  
 Notwithstanding the foregoing clauses (i) through (vi),
Operating Income shall not include (A) any condemnation or insurance proceeds (other than of the types described in clauses (iii) and (iv) above), (B) any proceeds resulting from the sale, exchange, transfer financing or refinancing of all or any
part of the Property (other than of the types described in clause (iii) above), (C) any repayments received from Tenants of principal loaned or advanced to Tenants by Borrower, except to the extent that such loan was granted as a leasing concession,
or (D) any type of income that would otherwise be considered Operating Income pursuant to the provisions above but is (i) paid directly by any Tenant to a Person other than Borrower or its agent including, without duplication, any amounts deposited
in the Deposit Account; provided, however, if such income relates to an item which is included as Operating Expense, then such income, or such portion thereof which is included as an Operating Expense, shall be included in Operating Income or (ii)
paid to Borrower by any Tenant but which relates to an expense which is not payable by Borrower (and therefore is not an Operating Expense), such as the Philadelphia use and occupancy tax; provided, however, that if any such amount is actually paid
by Borrower, such amount shall be deemed to be an Operating Expense and Operating Income. 
  
 “Optional Defeasance Date” shall mean the earlier of the third anniversary of the Closing Date and the second anniversary of the Securitization. 
  
 “Other Charges” shall mean all impositions other than Taxes,
and any assessment or similar charges, including vault charges and license fees for the use of vaults, chutes and similar areas adjoining the Property, now or hereafter levied or assessed or imposed against the Property or any part thereof and
payable by Borrower. 
  
 “Partner Borrowers”
shall mean Prometheus Investment Holding, L.P., a Delaware limited partnership, and Prior Owner, together with their respective permitted successors and assigns. 
  
 “Payment Date” shall mean the eleventh (11th) day of each calendar month or, if in any month the eleventh
(11th) day is not a Business Day, then the Payment Date for such month shall be the Business Day immediately preceding such day. 
  
 “Permitted Encumbrances” shall mean (a) the Liens and security interests created by the Loan Documents, (b) all Liens, encumbrances and
other matters disclosed in the Qualified Title Insurance Policy, (c) Liens, if any, for Taxes or Other Charges not yet payable or delinquent or which are being diligently contested in good faith in accordance with Section 5.1(b)(ii) hereof (d) Liens
in respect of property or assets imposed by law which were incurred in the ordinary course of business, such as carriers’, warehousemen’s, landlord’s, mechanic’s, materialmen’s, repairmen’s and other similar Liens
arising in the ordinary course of business, and Liens for workers’ compensation, unemployment insurance and similar programs, in each case arising in the ordinary course of business and relating to payments which are not yet delinquent or which
are being diligently contested in good faith in accordance with Section 5.1(b)(ii) hereof, (e) Leases, (f) except as otherwise set forth in (b) above, such other easements, rights-of-way, restrictions, minor defects or irregularities in title and
other similar 

  

 - 15 - 

 
charges or encumbrances (including any of such matters incurred or entered into by Borrower in the ordinary course of business) which in each case do not
diminish in any material respect the value of the Property or affect in any material respect the validity, enforceability or priority of the Liens created by the Loan Documents, and (g) such other title and survey exceptions as Lender has approved
or may approve in writing in Lender’s sole discretion. 
  
 “Permitted Indebtedness” shall mean: (a) the Debt; (b) any unsecured Credit Facilities delivered to Lender in accordance with the terms hereof, and Borrower’s reimbursement obligations arising therefrom or in
connection therewith; (c) unsecured Trade Payables incurred in the ordinary course of Borrower’s business, customarily paid by Borrower within sixty (60) days of incurrence and in fact not more than sixty (60) days outstanding unless Borrower
is, in good faith and in accordance with customary and prudent practices, contesting the payment of the same; (d) any Subordinate Mezzanine Loan; and (e) non-delinquent Taxes and Other Charges. 
  
 “Permitted Investments” shall mean the following, subject to
qualifications hereinafter set forth: 
  

	 	1.	Obligations of, or obligations guaranteed as to principal and interest by, the U.S. government or any agency or instrumentality thereof, when such obligations are backed by the full
faith and credit of the U. S. These obligations include, but are not limited to: 

  

	 	•	U.S. Treasury obligations All direct or fully guaranteed obligations 

  

	 	•	Farmers Home Administration Certificates of beneficial ownership 

  

	 	•	General Services Administration Participation certificates 

  

	 	•	U.S. Maritime Administration Guaranteed Title XI financing 

  

	 	•	Small Business Administration Guaranteed participation certificates Guaranteed pool certificates 

  

	 	•	U.S. Department of Housing and Urban Development Local authority bonds 

  

	 	•	Washington Metropolitan Area Transit Authority Guaranteed transit bonds 

  

	 	2.	Federal Housing Administration debentures when such obligations are backed by the full faith and credit of the U.S. 

  

	 	3.	Obligations of government-sponsored agencies that are not backed by the full faith and credit of the U.S., where the obligation is limited to those instruments that have a
predetermined fixed dollar amount of principal due at maturity that cannot vary or change. These obligations are limited to: 

  

	 	•	Federal Home Loan Mortgage Corp. (FHLMC) Debt obligations 

  

 - 16 - 

	 	•	Farm Credit System (formerly: Federal land Banks, Federal Intermediate Credit Banks, and Banks for Cooperatives) Consolidated system wide bonds and notes 

 

	 	•	Federal Home Loan Banks (FHL Banks) Consolidated debt obligations 

  

	 	•	Federal National Mortgage Association (FNMA) Debt obligations 

  

	 	•	Student Loan Marketing Association (SLMA) Debt obligations 

  

	 	•	Financing Corp. (FICO) Debt obligations 

  

	 	•	Resolution Funding Corp. (REFCORP) Debt obligations. 

  

	 	4.	Federal funds, unsecured certificates of deposit, time deposits, banker’s acceptances, and repurchase agreements having maturities of not more than 365 days of any bank, the
short-term debt obligations of which are rated “A-1+” (or the equivalent) by the applicable Rating Agencies. 

  

	 	5.	Deposits that are fully insured by the Federal Deposit Insurance Corp. (FDIC). 

  

	 	6.	Debt obligations maturing in 365 days or less that are rated “AAA” or higher (or the equivalent) by the applicable Rating Agencies. 

  

	 	7.	Commercial paper rated “A-1+” (or the equivalent) by the applicable Rating Agencies and maturing in 365 days or less. 

  

	 	8.	Investments in certain short-term debt of issuers rated “A-1+” (or the equivalent) by the applicable Rating Agencies may be permitted with certain restrictions. The total
amount of debt from “A-1+”(or the equivalent) issuers must be limited to the investment of an amount equal to the Monthly Debt Service Payment Amount. The total amount of “A-1+” (or the equivalent) investments should not
represent more than 20% of the rated issues outstanding principal amount and each investment should not mature beyond 30 days. Investment in “A-1 +” (or the equivalent) rated securities are not eligible for reserve accounts, cash
collateral accounts, or other forms of credit enhancement. Short-term debt for purposes of this definition includes: commercial paper, federal funds, repurchase agreements, unsecured certificates of deposit, time deposits, and banker’s
acceptances. 

  

	 	9.	Investment in money market funds rated “AAAm” or “AAm-G” (or the equivalent) by the applicable Rating Agencies. 

  

	 	10.	Such other investments as shall be approved in writing by means of a Rating Confirmation. 

  

 - 17 - 

 Notwithstanding the foregoing, “Permitted Investments”: (i) shall exclude any security with the Standard &
Poor’s “r” symbol (or any other Rating Agency’s corresponding symbol) attached to the rating (indicating high volatility or dramatic fluctuations in their expected returns because of market risk), as well as any mortgage-backed
securities; (ii) shall not have maturities in excess of one year; (iii) as to the investments described in (1), (3), (4), (5), (6), (7) and (8): the obligations shall be limited to those instruments that have a predetermined fixed dollar of
principal due at maturity that cannot vary or change; interest may either be fixed or variable; and any variable interest should be tied to a single interest rate index plus a single fixed spread (if any), and move proportionately with that index;
and (iv) shall exclude any investment where the right to receive principal and interest derived from the underlying investment provide a yield to maturity in excess of 120 percent of the yield to maturity at par of such underlying investment. No
investment shall be made which requires a payment above par for an obligation if the obligation may be prepaid at the option of the issuer thereof prior to its maturity. All investments shall mature or be redeemable upon the option of the holder
thereof on or prior to the earlier of (x) three (3) months from the date of their purchase or (y) the Business Day preceding the day before the date such amounts are required to be applied hereunder. 
  
 “Permitted Owner” shall have the meaning set forth in
Section 6.1(i)(ii) hereof. 
  
 “Person” shall
mean any individual, sole proprietorship, corporation, general partnership, limited partnership, limited liability company or partnership, joint venture, association, joint stock company, bank, trust, estate, unincorporated organization, any
federal, state, county or municipal government (or any agency or political subdivision thereof), endowment fund or any other form of entity. 
  
 “Plan” shall have the meaning specified in Section 6.1(i)(ii) hereof. 
  
 “PM-AIT” shall mean Prometheus Mid-Atlantic Investors Trust, a Maryland real estate investment trust.

  
 “PNC Bank” shall mean PNC Bank, National
Association, or any successor thereto. 
  
 “Policies” shall have the meaning specified in Section 8.1.1(c) hereof. 
  
 “Preferred Equity Holder” shall mean Prometheus Investment Holding, L.P., a Delaware limited partnership, and its permitted successors
and assigns. 
  
 “Prior Owner” shall mean
Philadelphia Plaza Associates, a Pennsylvania general partnership which was formerly known as Maguire/Thomas Partners Philadelphia Plaza Associates. 
  
 “Proceeds” shall mean amounts, awards or payments payable to Borrower or Lender in respect of all or any part of the Property in
connection with a Casualty or Condemnation thereof (after the deduction therefrom and payment to Borrower and Lender, respectively, of any and all reasonable expenses incurred by Borrower or Lender in the recovery thereof, including all
attorneys’ fees and expenses, the fees of insurance experts and adjusters 

  

 - 18 - 

 
and the costs incurred in any litigation or arbitration with respect to such Casualty or Condemnation). 
  
 “Property” shall mean the parcel of real property and
Improvements thereon described in the Mortgage, together with all rights pertaining to such property and Improvements, as more particularly described in the Mortgage and referred to therein as the “Mortgaged Property.” 
  
 “Qualified Survey” shall mean a current title survey of the
Property, certified to the title company issuing the Qualified Title Insurance Policy and Lender and their respective successors and assigns, that (A) is in form and content reasonably satisfactory to Lender, (B) is prepared by a professional and
properly licensed land surveyor satisfactory to Lender in accordance with the 1992 Minimum Standard Detail Requirements for ALTA/ACSM Land Title Surveys, (C) meets the requirements for classification as an “Urban Survey”, and the following
additional items from a list of “Optional Survey Responsibilities and Specifications” (Table A) should be added to each survey: 2, 3, 4, 6, 7, 8, 9, 10, 11 and 13, (D) reflects the same legal description contained in the Qualified Title
Insurance Policy or an appropriate title endorsement has been issued to that effect and (E) contains a certification in form and substance reasonably acceptable to Lender. 
  
 “Qualified Title Insurance Policy” shall mean an ALTA title insurance policy (1970 unmodified form, where
issuable) issued by a title company acceptable to Lender, with reinsurance and direct access agreements acceptable to Lender, which title insurance policy shall (A) provide coverage in amounts reasonably satisfactory to Lender, (B) insure Lender
that the Mortgage creates a valid first priority lien on the Property, free and clear of all exceptions from coverage other than such Liens, encumbrances and other matters described on Schedule B of such policy which have been approved by Lender in
its sole discretion and Permitted Encumbrances (other than those described in clause (b) of the definition of Permitted Encumbrances) (C) contain such endorsements and affirmative coverages as Lender may reasonably request, (D) name Lender as the
insured and (E) be assignable by its terms with a transfer of the Loan. 
  
 “Rating Agency” shall mean any nationally-recognized statistical rating agency selected by Lender to rate the Certificates or any successor thereto; provided that the term “Rating Agency” shall mean, when used (i)
with reference to any bank or insurance company or Permitted Owner, the nationally-recognized statistical rating agencies that rate the securities or credit of such bank or insurance company or Permitted Owner or (ii) with reference to Permitted
Investments, the nationally-recognized statistical rating agencies that rate such investments. 
  
 “Rating Confirmation” shall mean, with respect to the matter in question, that as a condition thereto two of the Rating Agencies which initially rated the Certificates and which shall continue to rate
the Certificates shall have confirmed in writing that (i) such investment, replacement or action shall not result, in and of itself, in a reduction, withdrawal or qualification of any rating then assigned to any outstanding Certificates (if the
Securitization has occurred), or (ii) such investment, replacement or action would not result, in and of itself, in a reduction, withdrawal or qualification of any rating for proposed Certificates then under consideration by the Rating Agencies (if
the Securitization has not yet occurred); provided that if the 

  

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Securitization has not taken (or as certified by Lender, will not take) the form of a transaction rated by the Rating Agencies, then “Rating
Confirmation” shall instead mean that the matter in question shall be subject to the prior approval of Lender. In the event that two of the Rating Agencies which initially rated the Certificates do not continue to rate the Certificates at the
time in question, the Rating Confirmation shall be required from at least two of the Rating Agencies then rating such Certificates. 
  
 “REA” shall mean that certain Reciprocal Easement and Covenant Agreement dated as of September 15, 1990 between Prior Owner and Maguire
Thomas Partners-Philadelphia Plaza-Phase II, as the same may have heretofore been amended, restated, replaced, supplemented or otherwise modified from time to time and as the same may in the future be amended, restated, replaced, supplemented or
otherwise modified from time to time in accordance with the terms hereof. 
  
 “Release Instruments” shall have the meaning set forth in Section 2.4.1(b) hereof. 
  
 “REMIC” shall mean a “real estate mortgage investment conduit” within the meaning of Section 860D of the Code. 
  
 “Rents” shall mean all rents, rent equivalents, moneys
payable as damages or in lieu of rent or rent equivalents, royalties (including all oil and gas or other mineral royalties and bonuses), income, receivables, receipts, revenues, deposits (including security, utility and other deposits), accounts,
cash, issues, profits, charges for services rendered, and other consideration of whatever form or nature received by or paid to or for the account of or benefit of Borrower or, without duplication, its agents or employees from any and all sources
arising from or attributable to the Property, including, without limitation, any obligations now existing or hereafter arising or created out of the sale, lease, sublease, license, concession or other grant of the right of the use and occupancy of
property or rendering of services by Borrower and proceeds, if any, from business, interruption or other loss of income insurance. 
  
 “Required Rating” shall mean the higher of (i) the highest rating then assigned by the applicable Rating Agencies to any of the
outstanding Certificates, and (ii) ”A” (or its equivalent) by S&P and Moody’s. 
  
 “Required Records” shall have the meaning set forth in Section 5.1(j)(vii) hereof. 
  
 “Reserve Account” shall have the meaning set forth in
Section 9.2.1 hereof. 
  
 “Restoration” shall
have the meaning set forth in Section 8.1.2(b) hereof. 
  
 “Revised Interest Rate” shall mean a rate of interest per annum equal to the sum of (i) the Fixed Rate, plus (ii) 2%. 
  
 “S&P” shall mean Standard & Poor’s Ratings Group, a division of McGraw-Hill, Inc., or any successor thereto. 
  
 “Scheduled Defeasance Payments” shall have the meaning set
forth in Section 2.3.2(b) hereof. 
  

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 “Securities Act” shall have the meaning set forth in Section 5.1(j)(vii) hereof.

  
 “Securitization” shall have the meaning set
forth in the Cooperation Agreement. 
  
 “Security
Agreement” shall have the meaning set forth in Section 2.3.2(a)(vii) hereof. 
  
 “Security Deposit Account” shall have the meaning set forth in Section 5.1(r) hereof. 
  
 “Security Deposits” shall have the meaning set forth in Section 5.1(r) hereof. 
  
 “Servicer” shall mean AMRESCO Incorporated or such other
entity appointed by Lender to service the Loan or its successor in interest, or if any successor servicer is appointed pursuant to the Servicing Agreement, such successor servicer; provided, however, that at all times such Servicer shall have a
rating from Fitch of at least “acceptable”, or if S&P shall at the time in question rate the Certificates, in lieu of the Fitch rating, such Servicer shall be required to have an “above average” rating from S&P. If at any
time no entity shall be so appointed, Servicer shall be deemed to refer to Lender. 
  
 “Servicing Agreement” shall mean any trust, pooling and servicing agreement or trust and servicing agreement that may be entered into from time to time in connection with any Securitization of the
Loan. 
  
 “Single Purpose Entity” shall mean a
Person, other than an individual, which is formed or organized solely for the purpose of holding, directly, the entire ownership interest in the Property, does not engage in any business unrelated to the Property and the financing, operation,
leasing or maintenance thereof, does not have any assets other those related to its interest in the Property or the financing, operation, leasing or maintenance thereof and otherwise complies with the representations, warranties and covenants of
Section 4.1(cc) hereof. If the foregoing entity is a partnership, its partnership agreement must provide that the partnership will dissolve, and its affairs shall be wound up, upon the first to occur of the following: (i) unanimous written consent
of all partners of the partnership (including the consent of its Independent Director), (ii) an event of withdrawal of a general partner, though the business of the partnership may be carried on by the remaining general partner, if there be one;
(iii) cancellation of the certificate of partnership; and (iv) entry of a decree of judicial dissolution; provided, however, that notwithstanding the foregoing, to the extent permitted by applicable law, (a) the partnership shall not
dissolve or otherwise terminate except as a result of the bankruptcy of all the general partners, and (b) the partnership shall continue (and not dissolve) for so long as a single solvent general partner exists. If the foregoing entity is a limited
liability company, (i) its operating agreement must provide that the limited liability company will dissolve upon the withdrawal or dissolution of the managing member, but the limited liability company will not be dissolved if the remaining members,
within ninety (90) days, by majority vote elect to continue the limited liability company and appoint a new managing member, (ii) it must appoint a managing member who must at all times be a Single Purpose Entity formed solely for the purpose of
acting as such managing member, and (iii) the operating agreement must provide that the dissolution and winding up or insolvency filing of such limited liability 

  

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company requires the consent of the managing member. If the foregoing entity is a corporation, the entity’s articles of incorporation must include
provisions substantially similar to those contained in the partnership agreement of Borrower as of the date hereof and that otherwise limit its business to a single purpose as described above in the first sentence of this definition. Any other
entity seeking to qualify as a Single Purpose Entity shall have adopted provisions in its organizational and governing documents that are, substantively the same, mutatis mutandis, to the provisions contained in the limited partnership
agreement of Borrower as of the date hereof. 
  
 “Special
Partnership Transfer” shall mean the sale by the partners of Borrower of all of their respective partnership interests in Borrower to one purchaser, provided that, as a condition to such transfer, Lender shall have received a Rating
Confirmation in respect thereof. 
  
 “Special
Servicer” shall mean the entity appointed by Lender to specially service the Loan or its successor in interest, or if any successor special servicer is appointed pursuant to the Servicing Agreement, such successor servicer; provided,
however, that at all times such Special Servicer shall have a rating from Fitch of at least “acceptable”, or if S&P shall at the time in question rate the Certificates, in lieu of the Fitch rating, such Special Servicer shall be
required to have an “above average” rating from S&P. If at any time no entity shall be so appointed, Special Servicer shall be deemed to refer to Lender. 
  
 “Special Transfer” shall mean the sale by Borrower of all of the Property to one purchaser pursuant to
which such purchaser shall assume in writing all of the obligations of Borrower under the Loan, provided that, as a condition to such transfer, Lender shall have received a Rating Confirmation in respect thereof. 
  
 “Stated Maturity Date” shall mean, with respect to the
Tranche A Note, April 11, 2028, or with respect to the Tranche B Note, September 11, 2002. 
  
 “Subordinate Mezzanine Loan” shall mean a loan or loans to the Partner Borrowers secured, in whole or in part, by (i) a pledge of their partnership interests in Borrower, (ii) a pledge of the stock of
the corporations which are the managing members of the general partners of Borrower and/or (iii) a pledge of the membership interests held by the non-managing members of the general partners of Borrower, which loan and pledges are subordinate to the
Mezzanine Loan and which in all respects (including, without limitation, the amount thereof the interest rate and the holder thereof) has been approved by Lender in its sole discretion (if such Subordinate Mezzanine Loan shall be entered into prior
to a Securitization) or by the Rating Agencies in their sole discretion and as to which the Rating Agencies shall have issued a Rating Confirmation (if such Subordinate Mezzanine Loan shall be entered into after a Securitization). As a condition
precedent to the approval of Lender or the Rating Agencies, either Lender or the Rating Agencies may require amendments to the Loan Documents. 
  
 “Successor Borrower” shall have the meaning set forth in Section 2.3.2(c) hereof. 
  
 “Tax and Insurance Escrow Account” shall have the meaning
set forth in Section 9.3.1 hereof. 
  
 “Taxes”
shall mean all real estate and personal property taxes, assessments, fees, taxes on rents or rentals, water rates or sewer rents, use and occupancy taxes and other 

  

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governmental charges now or hereafter levied or assessed or imposed against the Property or Borrower with respect to the Property or the rents therefrom or
which may become Liens upon the Property. 
  
 “Tenant” shall mean any Person liable by contract or otherwise to pay monies (including a percentage of gross income, revenue or profits) pursuant to a Lease. 
  
 “Tenant Cost” shall have the meaning set forth in Section 9.2.1(d) hereof. 
  
 “Tenant Improvements” shall mean amounts expended for, or
allowances given with respect to, the building out of leased space in accordance with tenant preferences, or other allowances given to tenants, which expenditures are required to be capitalized and amortized over the applicable lease term in
accordance with GAAP. 
  
 “Term” shall mean the
entire term of this Agreement, which shall expire upon repayment in full of the Debt and full performance of each and every obligation to be performed by Borrower pursuant to the Loan Documents. 
  
 “Termination Fee” shall have the meaning set forth in
Section 7.2(c) hereof. 
  
 “Termination Payment
Account” shall have the meaning set forth in Section 7.2(f) hereof. 
  
 “Threshold Amount” shall mean $9,000,000. 
  
 “Trade Payables” shall mean amounts payable by or on behalf of Borrower for or in respect of the operation of the Property in the ordinary course and which would under GAAP be regarded as ordinary
expenses, as well as Leasing Commissions and Tenant Improvements, including amounts payable to suppliers, vendors, contractors, mechanics, materialmen or other Persons providing property or services to the Property or Borrower. 
  
 “Tranche A Note” shall mean that certain promissory note of
even date herewith in the principal amount of Eighty Million Dollars ($80,000,000) substantially in the form of Exhibit A, made by Borrower in favor of Lender, as the same may be amended, restated, replaced, supplemented, consolidated or
otherwise modified from time to time, including any Undefeased Notes relating thereto. 
  
 “Tranche B Note” shall mean that certain promissory note of even date herewith in the principal amount of Thirty-Two Million Dollars ($32,000,000) substantially in the form of Exhibit B, made
by Borrower in favor of Lender, as the same may be amended, restated, replaced, supplemented, consolidated or otherwise modified from time to time, including any Undefeased Notes relating thereto. 
  
 “Treasury Cost Yield” shall mean, with respect to each Note,
the arithmetic mean of the rates published as “Treasury Constant Maturities” as of 5:00 p.m., New York time, for the five Business Days preceding the date on which acceleration has been declared, as shown on the USD screen of the Telerate
service, or if such service is not available, the Bloomberg service, or if neither the Telerate nor the Bloomberg service is available, under Section 504 in the weekly 

  

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statistical release designated H.15(519) (or any successor publication) published by the Board of Governors of the Federal Reserve System, for “On the
Run” U.S. Treasury obligations corresponding to the Stated Maturity Date with respect to each Note; if no such maturity shall so exactly correspond, yields for the two most closely corresponding published maturities shall be calculated pursuant
to the foregoing sentence and the Treasury Constant Yield shall be interpolated or extrapolated (as applicable) from such yields on a straight-line basis (rounding, in the case of relevant periods, to the nearest month). 
  
 “UCC” or “Uniform Commercial Code” shall mean the
Uniform Commercial Code as then in effect in the Commonwealth of Pennsylvania. 
  
 “Undefeased Note” shall have the meaning set forth in Section 2.3.2(a)(vi) hereof. 
  
 “Unpaid TI/Leasing Commissions Reserve Account” shall have the meaning set forth in Section 9.2.1(d) hereof. 
  
 “USF&G” shall have the meaning set forth in Section
8.1.1(c) hereof. 
  
 “U.S. Government Securities”
shall mean securities evidencing an obligation to pay principal and interest in a full and timely manner that are (y) direct obligations of the United States of America for the payment of which its full faith and credit is pledged, or (z)
obligations of a Person controlled or supervised by and acting as an agency or instrumentality of and guaranteed as a full faith and credit obligation by the United States of America, which in either case are not callable or redeemable at the option
of the issuer thereof (including a depository receipt issued by a bank (as defined in Section 3(a)(2) of the Securities Act) as custodian with respect to any such securities or a specific payment of principal of or interest on any such securities
held by such custodian for the account of the holder of such depository receipt; provided that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depository receipt
from any amount received by the custodian in respect of the securities or the specific payment of principal of or interest on the securities evidenced by such depository receipt). 
  
 “Yield Maintenance Payments” shall have the meaning set forth in Section 2.3.3 hereof. 
  
 Section 1.2 Principles of Construction. (a) All references to
sections, schedules and exhibits are to sections, schedules and exhibits in or to this Agreement unless otherwise specified. Unless otherwise specified, the words “hereof,” “herein” and “hereunder” and words of similar
import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. The words “includes,” “including” and similar terms shall be construed as if followed by the words
“without limitation.” Unless otherwise specified, all meanings attributed to defined terms herein shall be equally applicable to both the singular and plural forms of the terms so defined. As a matter of convenience herein, rating
categories are generally stated in the S&P nomenclature, it being understood that unless otherwise expressly stated to the contrary, the category indicated will instead be deemed to be the actual category of the applicable Rating Agencies.

  

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 (b) All accounting terms not specifically defined herein shall be construed in accordance with GAAP. All
calculations of Net Operating Income; Operating Income, and Operating Expenses shall be prepared by or on behalf of Borrower and shall be subject to review and audit by Lender in accordance with Lender’s customary audit policies and procedures.
In the event that an Event of Default shall then exist, such review and audit shall be at Borrower’s sole cost and expense; otherwise such review and audit shall be at Lender’s sole cost and expense. 
  
 II. GENERAL 
  
 Section 2.1 The Loan. 
  
 2.1.1 Commitment. Subject to and upon the terms and conditions set
forth herein, including the conditions precedent set forth in Section 3.1, Lender hereby agrees to make a loan to Borrower on the Closing Date, in the original principal amount of One Hundred Twelve Million Dollars ($112,000,000). The Notes shall
mature on their respective Stated Maturity Dates. Borrower hereby agrees to accept the Loan to be made to it by Lender on the Closing Date, subject to and upon the terms and conditions set forth herein. 
  
 2.1.2 Disbursement to Borrower. Borrower may request and receive only
one borrowing hereunder in respect of the Loan. Borrower shall receive the Loan upon the Closing, subject to the direction given by Borrower as to the application of Loan proceeds to pay items set forth in Section 2.1.4 hereof. Any amount borrowed
and repaid hereunder in respect of the Loan may not be reborrowed. 
  
 2.1.3 The Note. The Loan shall be evidenced by the Notes. The Notes shall bear interest as provided herein and therein. The Notes shall be subject to repayment as provided in Section 2.3, shall be entitled to the benefits of this
Agreement and shall be secured by the Mortgage granting a first mortgage lien on the Property and by certain of the other Loan Documents. 
  
 2.1.4 Use of Proceeds of the Loan. Borrower shall use the proceeds of the Loan to (i) repay, discharge or refinance the existing loans, if any,
relating to the Property, (ii) pay all past-due and payable Basic Carrying Costs, if any, in respect of the Property and to pay then due and payable Operating Expenses and other budgeted expenses relating to the Property, (iii) to the extent that
the establishment of such reserve is not satisfied by the posting by Borrower of a Credit Facility or Facilities in accordance with the terms of Section 9.2.1 hereof, fund the Tax and Insurance Escrow Account, the Leasing Reserve Account, the
Capital Reserve Account, the Deferred Maintenance Reserve Account; the Unpaid TI/Leasing Commissions Reserve Account and any other escrow or reserve account contemplated hereunder or under any other Loan Document to be funded at or prior to the
Closing, (iv) pay fees, costs and expenses actually incurred in connection with the Loan, (v) pay the Capped Expenses, (vi) fund the initial payment of interest with respect to the period from the Closing Date to the Payment Date occurring on April
11, 1998, (vii) make distributions to or on behalf of Borrower and (viii) repay the Mitsubishi Loan in accordance with the Bankruptcy Plan and pay all costs and expenses incurred by Borrower related solely to the purchase and repayment of the
Mitsubishi Loan. 
  

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 Section 2.2 Principal and Interest. 
  
 2.2.1 Principal and Interest. 
  
 (a) Subject to Section 2.2.2, from the date hereof to but excluding the respective Maturity Dates with respect to each of the Notes, Borrower shall pay
interest on the outstanding principal balance of the Notes at the Interest Rate. 
  
 Notwithstanding anything to the contrary in this Agreement and to the extent permitted by applicable law, if the aggregate amount of interest payable in respect of any Note pursuant to this Section 2.2 and all other
consideration which would constitute interest for any period under applicable law with respect to such Note results in an effective rate of interest for such period on such Note in excess of the maximum rate permitted by law (after giving effect to
any adjustment permitted by law to the interest rate paid or payable in any periods other than such period), the effective rate of interest for such period for such Note shall be limited to a rate of interest which would not cause the effective rate
to exceed the maximum legal rate and, if any principal remains outstanding with respect to the other Note, the effective interest rate for the other Note shall be increased in a manner such that the aggregate payment of interest due on the Notes
after such adjustments shall be equal to the aggregate interest payment due on the Notes had no adjustment been necessary, but in no event shall such increase in the effective interest rate for such other Note exceed the maximum legal rate
applicable to such Note. 
  
 (b) Commencing with the Payment Date
on May 11, 1998, and on each and every Payment Date thereafter through but excluding the Stated Maturity Date with respect to each Note, the principal amount of each Note and interest thereon at the Fixed Rate shall be payable in monthly
installments of (i) principal with respect to each Note based on the amortization schedule as set forth in the applicable Note, and (ii) interest at the Fixed Rate as computed in accordance with Section 2.5.2 (the aggregate of such amounts with
respect to the Notes, the “Monthly Debt Service Payment Amount”). Unless otherwise elected by Lender, such payments shall be applied first to the payment of interest with respect to the Notes with the remainder of such payment being
applied to the reduction of the outstanding principal balance of the Notes. 
  
 (c) From and after the Anticipated Prepayment Date, interest on the Tranche A Note shall accrue at the Revised Interest Rate and shall be payable as provided in Sections 2.2.2 and 9.4.2. 
  
 2.2.2 Accrued Interest. Each monthly payment of principal and interest
under the Tranche A Note made by Borrower thereunder on and after the Anticipated Prepayment Date shall be applied first to the payment of interest computed at the Fixed Rate with the remainder of such payment being applied to the reduction of the
outstanding principal balance of the Tranche A Note. All Accrued Interest accruing in respect of the Tranche A Note shall be deferred, be added to the principal balance of the Tranche A Note and, to the extent permitted by applicable law, accrue
interest at the Revised Interest Rate. All Accrued Interest shall be due and payable on the Maturity Date with respect to the Tranche A Note. 
  
 2.2.3 Default Rate. If an Event of Default shall have occurred and is continuing, Borrower shall pay interest at the Default Rate on the
outstanding principal amount 

  

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of the Notes and due but unpaid interest thereon, upon demand from time to time (which interest is payable both before and after Lender has obtained a
judgment with respect to the Loan), to the extent permitted by applicable law. Payment or acceptance of the increased rates provided for in this subsection is not a permitted alternative to timely payment or full performance by Borrower and, shall
not constitute a waiver of any Default or Event of Default or an amendment to this Agreement or any other Loan Document and shall not otherwise prejudice or limit any rights or remedies of Lender. 
  
 Section 2.3 Loan Repayment and Defeasance. 
  
 2.3.1 Repayment. (a) Borrower shall repay any outstanding principal
indebtedness of each Note in full on the Maturity Date with respect to each Note, together with all accrued and unpaid interest thereon to (but excluding) the date of repayment. 
  
 (b) Other than as set forth in Section 2.3.3 below, or as required or permitted pursuant hereto in connection with a
Casualty or Condemnation, Borrower shall have no right to prepay all or any portion of the Loan during the period commencing on the Closing Date to but not including the Anticipated Prepayment Date; provided, however, that Borrower shall have the
right to prepay the Tranche A Note in full, without penalty or premium, on the Payment Date occurring immediately prior to the Anticipated Prepayment Date in accordance with the remaining provisions of this Section 2.3.1(b). From and after the
Anticipated Prepayment Date, the Tranche A Note may be prepaid in whole or in part, on any Payment Date, together with accrued interest to the date of such prepayment on the principal amount prepaid, without penalty or premium. Any such prepayment,
shall be subject, in each case, to the satisfaction of the condition precedent that Borrower shall provide not less than five (5) Business Days’ prior written notice to Lender specifying the Payment Date on which such prepayment is to occur and
indicating the principal amount of the Tranche A Note to be so prepaid. 
  
 2.3.2 Voluntary Defeasance of the Notes. (a) On or after the Optional Defeasance Date and subject to a Rating Confirmation having been obtained therefor and subject to the terms and conditions set forth in this Section 2.3.2,
Borrower may defease all or any portion of either Note (hereinafter, a “Defeasance”). No Defeasance shall be permitted on or after the Anticipated Prepayment Date. Each Defeasance shall be subject, in each case, to the satisfaction
of the following conditions precedent: 
  
 (i)
Borrower shall provide not less than thirty (30) days’ prior written notice to Lender specifying a date (the “Defeasance Date”) on which the Defeasance is to occur. Such notice shall indicate whether both Notes or only one Note
is to be defeased, whether such Defeasance will be partial or total, and if partial, the principal amount of the Notes or such Note to be defeased. 
  
 (ii) Borrower shall pay to Lender all accrued and unpaid interest on the principal balance of the Note or Notes to be defeased to but not
including the Defeasance Date (and if the Defeasance Date is not a Payment Date, the Defeasance Deposit shall take into account the interest that would have accrued on such Note or Notes to but not including the next Payment Date). 
  

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 (iii) Borrower shall pay to Lender all other sums, not including scheduled interest or
principal payments, then due under such Note or Notes, this Agreement, the Mortgage and the other applicable Loan Documents (including, without limitation, in the event that an Event of Default shall then exist, all unpaid interest payable at the
Default Rate and all sums expended by Lender in connection with such Event of Default). 
  
 (iv) If an Event of Default shall then exist, then the Defeasance must serve to cure such Event of Default and notwithstanding anything to
the contrary contained herein, such Defeasance must be a total Defeasance. 
  
 (v) Borrower shall pay to Lender the required Defeasance Deposit for the Defeasance. 
  
 (vi) In the event only a portion of a Note or a portion of each Note is the subject of the Defeasance, Borrower shall execute and deliver
all necessary documents to amend and restate such Note or Notes and issue two substitute notes for each such Note: one note having a principal balance equal to the defeased portion of such original Note (the “Defeased Note”) and one
note having a principal balance equal to the undefeased portion of such original Note (the “Undefeased Note”). The Defeased Note and Undefeased Note shall have identical terms as such original Note (and the Defeased Note shall be
cross-defaulted with the Undefeased Note), except for the principal balance. A Defeased Note cannot be the subject of any further Defeasance. An Undefeased Note may be the subject of a further Defeasance in accordance with the terms of this clause
(vi) (the term “Note”, as used above in this clause (vi) for these purposes, being deemed to refer to the Undefeased Note that is the subject of the further defeasance) and the other provisions of this Section 2.3.2. 
  
 (vii) Borrower shall execute and deliver one or more
security agreements, in form and substance reasonably satisfactory to Lender, creating a first priority lien on the Defeasance Deposit and the U.S. Government Securities purchased with the Defeasance Deposit in accordance with the provisions of this
Section 2.3.2 (the “Security Agreement”). 
  
 (viii) Borrower shall deliver to Lender an opinion of counsel for Borrower in form reasonably satisfactory to Lender, which opinion may be based on reasonable assumptions, representations and warranties of Borrower,
stating, among other things, that Lender has a perfected security interest in the U.S. Government Securities purchased with the Defeasance Deposit. 
  
 (ix) If required by the applicable Rating Agencies, Borrower shall also deliver or cause to be delivered a non-consolidation opinion with
respect to the Successor Borrower, if any, in form and substance satisfactory to the applicable Rating Agencies and reasonably satisfactory to Lender (it being understood and agreed that if such opinion is acceptable to the Rating Agencies, Lender
will be deemed to have approved such opinion). In addition, if the Loan is included in any REMIC formed pursuant to a Securitization, Borrower shall also deliver or cause to be delivered an opinion of counsel, 

  

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in form and substance reasonably satisfactory to Lender, stating that, after a Defeasance, the Loan will continue to be a “qualified mortgage”
within the meaning of Section 860G of the Code and the REMIC will not fail to maintain its status as a “real estate mortgage investment conduit” within the meaning of Section 860D of the Code as a result of such Defeasance. 
  
 (x) Borrower shall deliver to Lender an Officer’s
Certificate certifying that the requirements set forth in this Section 2.3.2(a) have been satisfied. 
  
 (xi) Borrower shall deliver such other certificates, documents or instruments as Lender may reasonably request. 
  
 (xii) Borrower shall pay all reasonable costs and expenses
of Lender incurred in connection with the Defeasance, including, without limitation, reasonable attorneys’ fees and expenses. 
  
 (xiii) Borrower shall deliver to Lender an agreed upon procedures report issued by a “Big Five” independent certified public
accounting firm documenting procedures performed regarding information prepared by Borrower, or a certification acceptable to Lender and the Rating Agencies from such firm, showing (a) the stream of income to be generated by the Defeasance Deposit,
and (b) all Scheduled Defeasance Payments and other amounts required to be paid by Borrower hereunder in connection with the proposed Defeasance and a comparison of the same. 
  
 (b) In connection with each Defeasance of all or any portion of any Note, Borrower hereby appoints Lender as its agent and
attorney-in-fact for the purpose of using the Defeasance Deposit to purchase U.S. Government Securities (which purchases, if made by Lender, shall be made on an arm’s-length basis at then prevailing market rates) which provide payments on or
prior to, but as close as possible to, all successive Payment Dates after the Defeasance Date, in the case of a Defeasance for the entire outstanding principal balance of the Notes, or the Defeased Note or Notes, in the case of a Defeasance for only
a portion of the outstanding principal balance of a Note or the Notes, as applicable (including the outstanding principal balance of either the Loan or the Defeased Note or Notes on the Anticipated Prepayment Date), and in amounts equal to the Debt
Service due on such dates under the Note or Notes or the Defeased Note or Notes, as applicable (the “Scheduled Defeasance Payments”). Borrower, pursuant to the Security Agreement or other appropriate document, shall irrevocably
authorize and direct that the payments received from the U.S. Government Securities may be made directly to Lender and applied to satisfy the obligations of Borrower under the Note or Notes or the Defeased Note or Notes, as applicable. In connection
with any total Defeasance of the Loan, any portion of the Defeasance Deposit in excess of the amount necessary to purchase the U.S. Government Securities required by this Section 2.3.2(b) and satisfy Borrower’s obligations under Section 2.3
shall be remitted to Borrower. In connection with any partial Defeasance of the Loan, any portion of the Defeasance Deposit in excess of the amount necessary to purchase the U.S. Government Securities required by this Section 2.3.2(b) and satisfy
Borrower’s obligations under Section 2.3 shall be retained by Lender in an Eligible Account as additional collateral for the Loan, and shall be invested in Permitted Investments, Borrower hereby granting to Lender a security interest in such
account and in such Permitted 

  

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Investments. Any amounts received in payment on the U.S. Government Securities in excess of the amounts necessary to make monthly payments pursuant to
Section 2.2 (including on the Anticipated Prepayment Date) shall be deposited into the Deposit Account and treated in accordance with the terms of Article 9 hereof. Borrower shall not be obligated to pay a Yield Maintenance Payment in addition to
the Defeasance Deposit in connection with any Defeasance. 
  
 (c)
In connection with a Defeasance under this Section 2.3.2 of the total aggregate outstanding principal amount of the Notes, Lender shall establish or designate one or more successor entities (the “Successor Borrower”) and Borrower
shall transfer and assign all obligations, rights and duties under and to the Notes, together with the pledged U.S. Government Securities, to the Successor Borrower. The obligation of Lender to establish or designate a Successor Borrower shall be
retained by the original Lender named herein notwithstanding the sale or transfer of this Agreement unless such obligation is specifically assumed by the transferee. The Successor Borrower shall assume the obligations hereunder and under the Notes
(including all Defeased Notes) and the Security Agreement and, notwithstanding anything to the contrary contained in any Loan Document, the representations, warranties and covenants of the Loan Documents pertaining to the Property and the provisions
of Section 6.1(i) hereof shall be of no further force or effect other than (i) Sections 11.13, 11.21 and 11.24 of this Agreement, (ii) the Environmental Indemnity, which shall terminate in accordance with its terms, and (iii) the Cooperation
Agreement, which shall terminate in accordance with its terms. Borrower shall pay $1,000 to the Successor Borrower as consideration for assuming the obligations under the Notes and the Security Agreement. Notwithstanding anything in this Agreement
to the contrary, no other assumption fee shall be payable upon a transfer of the Notes in accordance with this Section 2.3.2, but Borrower shall pay all out-of-pocket costs and expenses incurred by Lender, including Lender’s reasonable
attorneys’ fees and expenses, incurred in connection therewith. 
  
 2.3.3 Repayment Upon Default. If all or any part of the principal amount of the Notes is prepaid upon acceleration of the Loan following the occurrence of an Event of Default prior to the Anticipated Prepayment Date, then, in
addition to such principal payment, Borrower shall be required to make such payments (the “Yield Maintenance Payments”) in an amount equal to the excess, if any, of (i) the sum of (A) the aggregate respective present values of all
scheduled interest payments payable on each Payment Date in respect of the Notes (or the portion of all such interest payments corresponding to the portion of the principal of the Notes to be prepaid upon acceleration) for the period from the date
of such prepayment upon acceleration to the Stated Maturity Date with respect to each Note, discounted monthly at a rate equal to the Treasury Constant Yield with respect to each Note and based on a 360-day year of twelve 30-day months and (B) the
aggregate respective present values of all scheduled principal payments payable on each Payment Date in respect of the Notes (or the then unpaid portion thereof to be prepaid upon acceleration) assuming the then outstanding principal balance of the
Notes is paid in full on the Stated Maturity Date with respect to each Note, discounted monthly at a rate equal to the Treasury Constant Yield with respect to each Note and based on a 360-day year of twelve 30-day months over (ii) the then current
outstanding principal amount of the Notes (or the then unpaid portion thereof to be prepaid upon acceleration). If the Yield Maintenance Payments as calculated pursuant to this Section 2.3.3 would not be a positive number, the Yield Maintenance
Payments shall be zero. The Yield Maintenance Payments, if any, to be paid in connection with any prepayment under this Section 2.3.3 shall be determined by Lender and written notice of the respective amounts and calculations thereof shall be
furnished to Borrower by Lender promptly 

  

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after the acceleration. For purposes of this Section 2.3.3, the amount of the Notes (or the portion of the principal of the Notes to be prepaid upon
acceleration) on the date of prepayment shall be determined after giving effect to any payment of scheduled amortization made on such date. 
  
 Section 2.4 Release of Property. No repayment, prepayment or Defeasance of all or any portion of the Loan shall cause, give rise to a right to
require, or otherwise result in, the release of the Property from the lien of the Mortgage, except as set forth in Sections 2.4.1 and 2.4.2. 
  
 2.4.1 Total Defeasance. (a) If Borrower has elected to defease the Notes in their entirety, and the requirements of Section 2.3.2 have been
satisfied, the Property shall be released from the lien of the Mortgage, and the U.S. Government Securities, pledged pursuant to the Security Agreement, shall be the sole source of collateral securing the Notes. 
  
 (b) In connection with the release contemplated in Section 2.4.1(a), Borrower
shall submit to Lender, not less than ten (10) days prior to the Defeasance Date, a satisfaction of mortgage (for execution by Lender) in a form appropriate for recording in the Commonwealth of Pennsylvania and otherwise satisfactory to Lender in
its reasonable discretion and all other documentation Lender reasonably requires to be delivered by Borrower in connection with such release (collectively, “Release Instruments”), together with an Officer’s Certificate
certifying that such Release Instruments (i) are in compliance with all Legal Requirements, and (ii) will effect such release in accordance with the terms of this Agreement. 
  
 2.4.2 Release on Payment in Full. Lender shall, upon the written request and at the expense of Borrower, upon payment
in full of all of the Debt in accordance with the terms of the Loan Documents, release the lien of the Mortgage and other Loan Documents not theretofore released. 
  
 2.4.3 Further Assurances. To the extent any Release Instrument executed and delivered under Section 2.4.1(b) is
insufficient to effect the release to be effected in accordance with the terms hereof, Lender (and Servicer) shall remain obligated to execute and deliver, at Borrower’s expense, such further Release Instruments as Borrower may reasonably
request and submit to Lender, together with an Officer’s Certificate covering the matters to be covered in the Officer’s Certificate described in Section 2.4.1(b). 
  
 Section 2.5 Payments and Computations. 
  
 2.5.1 Making of Payments. Each payment by Borrower hereunder or under the Notes shall be made in funds settled
through the New York Clearing House Interbank Payments System or other funds immediately available to Lender by 11:00 a.m. New York City time, on the date such payment is due, to Lender by deposit to such account as Lender may designate by written
notice to Borrower. Whenever any payment hereunder or under the Notes shall be stated to be due on a day which is not a Business Day, such payment shall be made on the first Business Day succeeding such day. 
  
 2.5.2 Computations. Interest payable on the Loan on each Payment Date
shall be computed on the basis of the actual number of days in the period in question (i.e., with respect to the monthly Debt Service Payment Amount, from and including the eleventh (11th) day of a 

  

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calendar month to and including the tenth (10th) day of the next succeeding calendar month), and a 360-day year. 
  
 2.5.3 Loan Account. Lender shall maintain loan accounts on its books
in the name of Borrower in which will be recorded the Loan and all payments and prepayments of principal of and interest on each Note (provided that any error in such loan accounts shall not in any manner affect the obligations of Borrower to
repay the Loan in accordance with the terms of this Agreement, the Notes and the other Loan Documents). In addition to the rights of Borrower to have informational computer access to the accounts maintained hereunder in accordance with Section 9.1,
Lender shall, upon the written request of Borrower, not more often than monthly, provide such information as it has in its possession regarding the records maintained in accordance with the first sentence hereof and information regarding funds on
deposit in the Deposit Account. In addition, Lender shall, or shall direct Servicer, if any, to provide to Borrower, monthly reports showing deposits into and disbursements, transfers or credits, as the case may be, from the Tax and Insurance Escrow
Account and each Reserve Account, and setting forth, as of the end of each month, a schedule of the Permitted Investments contained in each such account and schedules of all transactions involving Permitted Investments during the month. On the third
Business Day preceding each Payment Date, Lender or Servicer, if any, shall notify Borrower (by telephone with confirmation by facsimile) if there is any insufficiency in the Deposit Account of funds required to make all of the transfers described
in Sections 9.4.1(a) through (f) and 9.4.2(a) through (f), as applicable, hereof on such Payment Date, and the amount of such insufficiency, in each case as of the opening of business as of such third Business Day; provided that the
failure to provide such notice shall not excuse Borrower’s performance of any of its obligations hereunder or under any other Loan Document. 
  
 III. CONDITIONS PRECEDENT 
  
 Section 3.1 Conditions Precedent to the Loan. The obligation of Lender to make the Loan hereunder is subject to the fulfillment by Borrower or
waiver by Lender of the following conditions precedent no later than the Closing Date: 
  
 (a) Representation and Warranties; Compliance with Conditions. All representations and warranties contained in this Agreement and the other Loan Documents shall be true and correct in all material respects on
and as of the Closing Date with the same effect as if made on and as of such date, and no Default or Event of Default shall have occurred and be continuing; and Borrower shall be in compliance in all material respects with all terms and conditions
set forth in this Agreement and in each other Loan Document on its part to be observed or performed. On the Closing Date, Borrower shall deliver to Lender an Officer’s Certificate certifying that (i) no Default or Event of Default has occurred
and (ii) the conditions precedent set forth in Sections 3.1(c)(iv) and (viii), 3.1(g), 3.1(r), 3.1(s) and 3.1(y) of this Agreement have been fulfilled. 
  
 (b) Loan Agreement and Note. Lender shall have received a copy of this Agreement and the Note in each case duly executed and delivered on behalf of
Borrower. 
  
 (c) Delivery of Loan Documents; Title Insurance;
Reports; Leases. 
  

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 (i) Mortgages, Assignments of Agreements. Lender shall have received from Borrower
fully executed and acknowledged counterparts of the Mortgage, Assignment of Leases and the Assignment of Agreements and evidence that a counterpart of the Mortgage has been delivered to the title company for recording, in the reasonable judgment of
Lender, so as to effectively create upon such recording a valid and enforceable Lien upon the Property, of first lien priority, in favor of Lender, subject only to the Permitted Encumbrances and such other Liens as are permitted pursuant to the Loan
Documents. Lender shall have also received from Borrower fully executed counterparts of the Environmental Indemnity, the other Loan Documents and appropriate UCC-1 financing statements. 
  
 (ii) Title Insurance. Lender shall have received a Qualified Title Insurance Policy (or a marked-up
commitment for same which is legally effective as a Qualified Title Insurance Policy) from each of Commonwealth Land Title Insurance Company and Chicago Title Insurance Company, pursuant to which each of them shall, on a co-insurance basis, insure
the lien of the Mortgage for an amount equal to one-half of the principal amount of the Loan. Lender shall have also received evidence that all premiums and other charges due in respect of each such Qualified Title Insurance Policy have been paid.

  
 (iii) Survey. Lender shall have
received a Qualified Survey. 
  
 (iv)
Insurance. Lender shall have received valid certificates of insurance evidencing the insurance coverages, amounts and other requirements set forth in this Agreement, which name Lender as an additional insured or loss payee, as applicable,
satisfactory to Lender in its reasonable discretion, and evidence of the payment of all premiums payable for the current policy period. 
  
 (v) Environmental Report. Lender shall have received an environmental report in respect of the Property, addressed to Lender, in
form and substance reasonably satisfactory to Lender. 
  
 (vi) Zoning. Borrower shall have used good faith efforts to deliver to Lender letters or other evidence with respect to the Property from the appropriate municipal authorities (or other Persons) concerning applicable zoning and
building laws, including without limitation, a current certification statement from the City of Philadelphia Department of Licenses and Inspections with respect to the zoning classification of the Property and the absence of any uncorrected code
violations. 
  
 (vii) Engineering Report.
Lender shall have received an engineering report in respect of the Property, addressed to Lender, in form and substance reasonably satisfactory to Lender. 
  
 (viii) Leases and Operating Agreements. Lender shall have received true and complete copies of all Leases executed and delivered on
or before the Closing Date and all subleases executed and delivered on or before the Closing Date of which 

  

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Borrower has knowledge. Lender shall have received true and complete copies of all Material Agreements. 
  
 (ix) Capital Expenditures. Lender shall have received
a schedule detailing all Capital Expenditures at the Property for Fiscal Years 1995, 1996 and 1997 and the year-to-date period through January 31, 1998 and a schedule detailing budgeted Capital Expenditures at the Property for Fiscal Year 1998, in
each case reasonably satisfactory to Lender. 
  
 (x) Appraisal. Lender shall have received an MAI appraisal of the Property, addressed to Lender, which shall be prepared by a firm selected by Lender and shall be in form and substance reasonably acceptable to Lender. 
  
 (xi) Tax Lot. Lender shall have received evidence
satisfactory to Lender that the Property or any portion thereof is not part of a tax lot owned by any third party. 
  
 (d) Delivery of Organizational Documents. On or before the Closing Date, Borrower shall deliver or cause to be delivered to Lender (i) copies
certified by the President or a Vice President or other authorized officer of Borrower (or of its general partner or managing member, as applicable) of all organizational documentation related to Borrower (and its general partner or managing member,
as applicable) and/or the formation, structure, existence, good standing and/or qualification to do business, as Lender may request in its sole discretion, including good standing certificates, qualifications to do business in the appropriate
jurisdictions, resolutions authorizing the entering into of the Loan and incumbency certificates as may be requested by Lender. 
  
 (e) Opinions of Borrower’s Counsel. Lender shall have received opinions of Borrower’s counsel addressed to Lender and the Rating
Agencies, (i) with respect to non-consolidation, and (ii) with respect to due execution, delivery, authority, enforceability of the Loan Documents and such other matters as Lender may reasonably require, all such opinions in form, scope and
substance satisfactory to Lender and Lender’s counsel in their sole discretion. 
  
 (f) Budgets. Borrower shall have delivered to Lender the Annual Budget for the Property for the 1997 and 1998 Fiscal Years and a comparison report for actual against budgeted amounts for Fiscal Year 1997, all
in accordance with GAAP. 
  
 (g) Basic Carrying Costs.
Borrower shall have deposited with Lender into an Eligible Account, all Basic Carrying Costs relating to the Property which are in arrears, including (i) accrued but unpaid insurance premiums, (ii) currently due and payable Taxes (including any in
arrears), if any, and (iii) currently due and payable Other Charges, all of which amounts shall be funded with proceeds of the Loan. 
  
 (h) Deposit Account Agreement. Lender shall have received the Deposit Account Agreement duly executed by Borrower and the depository institution
party thereto. 
  
 (i) Estoppels. Borrower shall have used
good faith efforts to deliver to Lender executed estoppel letters from (i) each Tenant leasing one full floor or more of the 

  

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Improvements, (ii) such number of Tenants as, in the aggregate, lease at least 80% of the rentable square feet in the Property and (iii) IBM, in each case in
form and substance satisfactory to Lender. 
  
 (j) Cooperation
Agreement. Lender shall have received the Cooperation Agreement duly executed by Borrower and PM-AIT. 
  
 (k) Consent of Manager. Lender shall have received an executed Consent of Manager, which shall be in form and substance reasonably satisfactory to
Lender. 
  
 (l) Financial Statements. Borrower shall have
(i) provided, with respect to the Property, (A) audited balance sheets and income statements for Fiscal Years 1994, 1995 and 1996, (B) an unaudited balance sheet and income statement for Fiscal Year 1997, which unaudited balance sheet and income
statement shall be satisfactory to Lender and accompanied by an Officer’s Certificate certifying that each such statement presents fairly the results of the Property and has been prepared in accordance with GAAP, without footnotes; and (ii)
provided a pro forma, balance sheet for Borrower (estimated as of the day preceding the Closing Date), certified by the chief financial officer of Borrower, which certificate shall state, inter alia, that Borrower has incurred no Debt
except as may be shown on such pro forma balance sheet. 
  
 (m)
Certified Rent Rolls. Lender shall have received a rent roll for the Property, dated as of March 12, 1998, accompanied by an Officer’s Certificate certifying that such rent roll is true, complete and correct in all material respects as
of the Closing Date. 
  
 (n) Certified Ownership Structure
Chart. Lender shall have received a chart showing the direct ownership of Borrower, the direct ownership of Borrower’s partners and the ownership of the managing members of Borrower’s general partners, and otherwise in form and
substance reasonably acceptable to Lender and accompanied by an Officer’s Certificate certifying that such chart is true, complete (to the extent required by the foregoing) and correct in all respects as of the Closing Date. 
  
 (o) Subordination and Attornment Agreements. Intentionally Deleted.

  
 (p) Management Agreement. Lender shall have received a
copy of the Management Agreement with the Current Manager, accompanied by an Officer’s Certificate that such copy is true, correct and complete. 
  
 (q) Searches. Lender shall have received current tax lien, pending litigation, bankruptcy, judgment lien and Uniform Commercial Code searches
against Borrower, Prior Owner (under both of its prior names) and its general partners or managing members, if any, in such jurisdictions and offices as Lender shall designate and such searches shall not have revealed any lien, litigation,
bankruptcy or filing against Borrower, Prior Owner (under both of its prior names) or such general partners or managing members which will not be terminated on the Closing Date. 
  
 (r) Agreement Consents. With respect to the Assignment of Agreements, Lender shall have received such consents to
such assignment from third parties as Lender may require and such consents shall be in full force and effect. 
  

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 (s) Other Consents. Lender shall have received copies of all other consents, licenses and
approvals, if any, required in connection (i) with the execution, delivery and performance by Borrower under, and the validity and enforceability of, the Loan Documents and (ii) the consummation of the Bankruptcy Plan, and such consents, licenses
and approvals shall be in full force and effect. 
  
 (t)
Occupancy Reports. Lender shall have received occupancy reports for Fiscal Years 1995, 1996 and 1997. 
  
 (u) Lease Form. Lender shall have received and approved the standard form of Lease to be used in connection with the Property (the “Lease
Form”). 
  
 (v) REA. Borrower shall have executed
and delivered, pursuant to the provisions of Article 11 of the REA, a notice to the other party to the REA and the other notice parties to the REA with respect to the conveyance of the Property pursuant to the Bankruptcy Plan and with respect to the
Loan. Borrower shall have provided evidence satisfactory to Lender that Prior Owner (i) has complied with the provisions of Section 16.12 of the REA or (ii) has waived such provisions with the consent of its mortgagee. Borrower shall have delivered
to Lender an estoppel certificate from the other party to the REA, certifying as to the matters referred to in Section 16.19 of the REA and otherwise in form and substance reasonably satisfactory to Lender. 
  
 (w) Bankruptcy Documents. Borrower shall have delivered to Lender a
copy of the Bankruptcy Plan and the Loan Sale Agreement and Contribution and Purchase Agreement referred to therein and all amendments and supplements to each of the foregoing, accompanied by an Officer’s Certificate that such copies are true,
correct and complete. Borrower shall have delivered to Lender a copy of the Bankruptcy Plan certified by the Clerk of the Court. 
  
 (x) Mezzanine Documents. Borrower shall have delivered to Lender copies of the Mezzanine Loan Documents, accompanied by an Officer’s
Certificate that such copies are true, correct and complete. 
  
 (y) Consummation of Plan. All conditions precedent to the consummation of the Bankruptcy Plan (other than the funding of the Loan), including without limitation, transfer of title to the Property from Prior Owner to Borrower, shall
have been fulfilled. 
  
 (z) Bankruptcy Opinion. Borrower
shall have delivered to Lender an opinion with respect to Prior Owner’s bankruptcy, which opinion shall be in form and substance reasonably satisfactory to Lender. 
  
 IV. REPRESENTATIONS AND WARRANTIES 
  
 Section 4.1 Borrower Representations. 
  
 Borrower represents, warrants and covenants that, as of the Closing Date: 
  
 (a) Organization. It has been duly organized and is validly existing
and in good standing with requisite corporate, partnership or limited liability company power, as applicable, 

  

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and authority to own its properties and to transact the businesses in which it is now engaged. It is duly qualified to do business and is in good standing in
each jurisdiction where it is required to be so qualified in connection with its properties, businesses and operations. It possesses all rights, licenses, permits and authorizations, governmental or otherwise, necessary to entitle it to own its
properties and to transact the businesses in which it is now engaged (except where the failure to possess such rights, licenses, permits or authorizations would not have a Material Adverse Effect), and its sole business has been and is the
ownership, management and operation of the Property. 
  
 (b)
Proceedings. It has taken all necessary action to authorize the execution, delivery and performance of this Agreement and the other Loan Documents to which it is a party. This Agreement and such other Loan Documents have been duly executed
and delivered by it and constitute legal, valid and binding obligations of Borrower enforceable against Borrower in accordance with their respective terms, subject to applicable bankruptcy, insolvency and similar laws affecting rights of creditors
generally and general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law) without offset, defense or counterclaim. 
  
 (c) No Conflicts. The execution, delivery and performance of this Agreement and the other Loan Documents by it will
not conflict in any material respect with or result in a material breach of any of the terms or provisions of, or constitute a material default under, or result in the creation or imposition of any lien, charge or encumbrance (other than pursuant to
the Loan Documents) upon any of its properties or assets pursuant to the terms of any indenture, mortgage, deed of trust, loan agreement, partnership agreement, management agreement or other Material Agreement to which it is a party or to which any
of its properties or assets is subject, nor will such action result in any violation of the provisions of any statute or any order, rule or regulation applicable to it of any court or governmental agency or body having jurisdiction over it or any of
its properties or assets, and any consent, approval, authorization, order, registration or qualification of or with any court or any such regulatory authority or other governmental agency or body or any other Person required for the execution,
delivery and performance by it of this Agreement or any other Loan Documents to which it is a party or required for the consummation of the Bankruptcy Plan has been obtained and is in full force and effect in all material respects. 
  
 (d) Litigation. There are no actions, suits or proceedings at law or
in equity by or before any Governmental Authority or other agency now commenced and to its Actual Knowledge there are no such actions, suits or proceedings threatened against or affecting it or the Property, which actions, suits or proceedings,
alone or in the aggregate, if adversely determined, are reasonably likely to have a Material Adverse Effect. 
  
 (e) Agreements. It is not a party to any Material Agreement (excluding any Loan Document) which is reasonably likely to have a Material Adverse
Effect. It is not in default (including, without limitation, by reason of succeeding to a default of the Prior Owner) in any material respect in the performance, observance or fulfillment of any of the material obligations, covenants or conditions
contained in any Permitted Encumbrance, the Management Agreement or any other Material Agreement or instrument to which it is a party or by which it or the Property is bound except to the extent such default is not reasonably likely to have a
Material Adverse Effect. 
  

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 (f) Title. It has good and indefeasible title in fee to the real property constituting a part of
the Property and owns no leasehold estates, as tenant, to any properties, and it has good and indefeasible title to the balance of the Property, in each case free and clear of all Liens whatsoever except the Permitted Encumbrances. The Mortgage,
when properly recorded in the appropriate records, together with any Uniform Commercial Code financing statements required to be filed in connection therewith, will create (i) a valid, perfected first priority lien on the Property subject only to
Permitted Encumbrances and the Liens created by the Loan Documents and (ii) perfected security interests in and to, and perfected collateral assignments of, all personalty (including the Leases), all in accordance with the terms thereof, subject
only to any applicable Permitted Encumbrances. The Permitted Encumbrances do not and will not materially adversely affect or interfere with the value, or current use or operation, of the Property, or the security intended to be provided by the
Mortgage or the ability of Borrower to repay the Notes or perform its obligations under any other Loan Document in accordance with the terms of the Loan Documents. Except as indicated in and insured over by a Qualified Title Insurance Policy, it has
no Actual Knowledge of any claims for payment for work, labor or materials affecting the Property which are or may become a lien prior to, or of equal priority with, the Liens created by the Loan Documents (other than mechanics’ or
materialmen’s liens for work or materials performed or supplied the costs for which are not yet past due or which are being contested in accordance with Section 5.1(b)(ii)). Nothing in this paragraph may be relied on by any title insurance
company issuing a policy covering the Property. The Assignment of Leases, when properly recorded in the appropriate records, creates a valid first priority assignment of, or a valid first priority security interest in, Borrower’s rights under
the Leases and the Rents, subject only to a license granted to Borrower to exercise certain rights and to perform certain obligations of the lessor under such Leases, including the right to operate the Property and, subject to Section 9.1.2 hereof,
to collect and receive Rents. No Person other than Borrower owns any interest in any payments due under such Leases that is superior to or of equal priority with the Lender’s interest therein. 
  
 (g) No Future Bankruptcy Filing; Prior Bankruptcy Filing. It is not
contemplating either the filing of a petition by it under any state or federal bankruptcy or insolvency laws or the liquidation of its assets or property, and it has no Actual Knowledge of any Person contemplating the filing of any such petition
against it. The Bankruptcy Plan has been confirmed by an order of the applicable bankruptcy court, and such order is a Final Order and is in full force and effect without any amendment or modification thereto. Upon the funding of the Loan, the
Bankruptcy Plan will have been consummated. No motion has been filed or withdrawn and no hearing has been held relating to the Bankruptcy Plan since February 5, 1998. The Borrower is a party to all Material Agreements. 
  
 (h) Full and Accurate Disclosure. To Borrower’s Actual Knowledge
there is no material fact or circumstance which has not been disclosed to Lender and which has or is reasonably likely to have a Material Adverse Effect. 
  
 (i) No Plan Assets. It is not an “employee benefit plan,” as defined in Section 3(3) of the Employee Retirement Income Security Act of
1974, as amended (“ERISA”), subject to Title I of ERISA (an “Employee Benefit Plan”), and none of its assets constitutes or will constitute “plan assets” of one or more such plans within the meaning of 29
C.F.R. Section 2510.3-101. 
  

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 (j) Compliance. It and the Property and the use thereof comply in all respects with applicable
Legal Requirements, including building and zoning ordinances and codes, except for non-compliances that would not be reasonably likely to have a Material Adverse Effect. To Borrower’s Actual Knowledge, the Property is not a non-conforming use
or legal non-conforming use. It is not in default or violation of any order, writ, injunction, decree or demand of any Governmental Authority, the violation of which would reasonably be likely to have a Material Adverse Effect. There has not been
committed by or on behalf of it or, to its Actual Knowledge, any other Person in occupancy of or involved with the operation or use of the Property, any act or omission affording the federal government or any state or local government the right of
forfeiture as against the Property or any part thereof or any monies paid in performance of its obligations under any of the Loan Documents. It hereby covenants and agrees not to commit, and to use all reasonable efforts not to permit or suffer to
exist, any act or omission affording such right of forfeiture. 
  
 (k) Contracts. Except for the Permitted Encumbrances, there are no contracts with terms exceeding one year and requiring payments by Borrower per annum in excess of $50,000 affecting the Property which are not terminable on one
month’s notice or less without cause and without material penalty or premium. Each Material Agreement affecting the Property and the Management Agreement has been entered into at arm’s length in the ordinary course of business and provides
for the payment of fees in amounts and upon terms not less favorable to Borrower than market rates and terms (except that Lender acknowledges that the management fee payable to the Current Manager under the existing Management Agreement may be
higher than the fee which would be payable on an arm’s-length basis and Lender agrees to permit such fee for so long as Current Manager is an Affiliate of Borrower and such fee does not exceed three percent (3%) of gross revenues from the
Property). 
  
 (l) Financial Information. To Borrowers
Actual Knowledge, all financial data delivered to Lender prior to the date hereof, including, without limitation, the operating statements delivered pursuant to Section 3.1(1), (i) are true, complete and correct in all material respects, (ii)
accurately represent the operating results of the Property with respect to the periods covered, and (iii) have been prepared in accordance with GAAP, except that unaudited information has been prepared without footnotes. To Borrower’s Actual
Knowledge, Borrower has no contingent liabilities, liabilities for taxes, unusual forward or long-term commitments or unrealized or anticipated losses from any unfavorable commitments, except as referred to or reflected in said operating statements.
To Borrower’s Actual Knowledge, since the date of the most recent operating statement, there has been no material adverse change in the financial operations of the Property from that set forth in said operating statement. 
  
 (m) Condemnation. No Condemnation or other proceeding has been
commenced or, to its Actual Knowledge, is contemplated with respect to all or any portion of the Property or for the relocation of roadways providing access to the Property. 
  
 (n) Federal Reserve Regulations. No part of the proceeds of the Loan will be used for the purpose of purchasing or
acquiring any “margin stock” within the meaning of Regulation U of the Board of Governors of the Federal Reserve System or for any other purpose which would be inconsistent with such Regulation U or any other Regulations of such Board of

  

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Governors, or for any purposes prohibited by Legal Requirements or by the terms and conditions of this Agreement or the other Loan Documents. 
  
 (o) Utilities and Public Access. The Property has rights of access to
dedicated public ways (and makes no material use of any means of access or egress that is not pursuant to such dedicated public ways or recorded, irrevocable rights-of-way or easements) and is served by water, sewer, sanitary sewer and storm drain
facilities adequate to service the Property for its current uses. All public utilities necessary for the full use and enjoyment of the Property as currently used and operated are located in the public right-of-way abutting the Property or in or
through a recorded irrevocable easement in favor of the Property, and all such utilities are connected so as to serve the Property without passing over other property, except to the extent that such utilities are accessible to the Property by virtue
of a recorded irrevocable easement or similar agreement or right. All roads necessary for the use of the Property for its current purposes have been completed and are either part of the Property (by way of deed, easement or ground lease) or
dedicated to public use and accepted by all Governmental Authorities. 
  
 (p) Not a Foreign Person. It is not a “foreign person” within the meaning of § 1445(f)(3) of the Code. 
  
 (q) Separate Lots. The Property has been and is comprised of one (1) or more parcels which constitute one or more separate tax lots which do not
include any property not a part of the Property. 
  
 (r) Basic
Carrying Costs; Assessments. Except for Basic Carrying Costs deposited with Lender in accordance with Section 3.1(g) hereof, all Basic Carrying Costs due and payable as of the date hereof have been paid. Except as disclosed by any Qualified
Title Insurance Policy, to its Actual Knowledge, there are no pending or proposed special or other assessments for public improvements or other matters affecting the Property, nor, to its Actual Knowledge, are there any contemplated improvements to
the Property that are likely to result in such special or other assessments. 
  
 (s) Enforceability. The Loan Documents are not subject to any right of rescission, set-off, counterclaim or defense by Borrower, including the defense of usury, and Borrower has not asserted any right of
rescission, set-off, counterclaim or defense with respect thereto. 
  
 (t) No Prior Assignment. There are no prior assignments of the Leases or any portion of the Rents due and payable or to become due and payable which are presently outstanding, except in connection with indebtedness to be repaid in
full from the proceeds of the Loan concurrently with the Closing. 
  
 (u) Insurance. It has obtained and has delivered to Lender insurance certificates and policies reflecting the insurance coverages, amounts and other requirements set forth in this Agreement, except as otherwise permitted pursuant to
Section 3.1(iv) hereof. All premiums on such insurance policies required to be paid as of the date hereof have been paid for the current policy period. 
  

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 (v) Certificate of Occupancy; Licenses. All material certifications, permits, licenses and
approvals, including certificates of completion and occupancy permits (or a temporary certificate of occupancy, or other local equivalent), required for the legal use, occupancy and operation of the Property (collectively, the
“Licenses”), have been obtained and are in full force and effect in all material respects. The Property has a certificate of occupancy or other local equivalent (where required by applicable Legal Requirements) and the use being
made of the Property is in conformity in all material respects with such certificate of occupancy. 
  
 (w) Flood Zone. The Improvements are not located in an area as identified by the Federal Emergency Management Agency or the Federal Insurance
Administration as an area having special flood hazards (Zone A). 
  
 (x) Physical Condition. Except as disclosed in the engineering reports listed on Schedule 2, to its Actual Knowledge the Property, including the building, other improvements, parking facility, sidewalk, storm drainage system,
roof, plumbing system, HVAC system, fire protection system, electrical system, equipment, elevators, exterior siding and doors, landscaping, irrigation system and all structural components, are in good condition, order and repair in all respects
material to the use or operation of the Property. To its Actual Knowledge there exist no structural or other material defects or damages in the Property, whether latent or otherwise (except for Deferred Maintenance Conditions, in respect of which
reserves are being established pursuant to this Agreement). It has not received written notice and is not otherwise aware from any insurance company or bonding company of any defects or inadequacies in the Property, or any part thereof, which would,
alone or in the aggregate, adversely affect in any material respect the insurability of the same or cause the imposition of extraordinary premiums or charges thereon or of any termination or threatened termination of any policy of insurance or bond.

  
 (y) Leases. No person has any possessory interest in
the Property or right to occupy the same except under and pursuant to the provisions of the Leases and any subleases relating thereto, and true and complete copies of all Leases (and, to the extent that Borrower has knowledge thereof, subleases)
executed and delivered on or before the Closing Date have been delivered to Lender. Except as disclosed in the Tenant estoppel letters delivered to Lender prior to the date hereof (i) the Leases are in full force and effect, and are valid and
enforceable in all material respects, subject in each case to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general equity
principles; (ii) to its Actual Knowledge, there are no material defaults under any Lease or sublease by either party thereto (other than rent delinquencies specified on Schedule 4 attached hereto); (iii) to its Actual Knowledge, there are no
conditions that, with the passage of time or the giving of notice, or both, would constitute a material default under any Lease; and (iv) no Rent under any Lease or Operating Agreement has been paid for more than one month in advance, except for
Security Deposits, which at the Closing Date have been deposited with the Lender in accordance with the provisions of Section 5.1(r) relating to Security Deposits received from and after the date hereof. Each Lease is subordinate to the Loan
Documents or, if any Lease is not so subordinate, the Tenant under such Lease is required to execute and deliver a nondisturbance, subordination and attornment agreement effecting the subordination of such Lease to the Loan Documents. As to all
present Leases and (upon execution thereof) all future Leases relating to the Property, Borrower is, or 

  

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will be, the sole owner of the lessor’s interest. No Tenant has the right to terminate a Lease (other than in connection with a casualty or
condemnation) except as set forth in Schedule 5 and no Lease contains an option to purchase, right of first refusal or similar provisions for the purchase of the Property. No Tenant or former tenant has any present or future right to
participate in the proceeds of the Property. There are no obligations for Tenant Improvements or inducements requiring the expenditure of money by Borrower as lessor under any Lease that have not been satisfied in full prior to the date hereof,
except as set forth in Schedule 6. 
  
 (z) Location of
Office. The Borrower’s principal place of business is Philadelphia, Pennsylvania. 
  
 (aa) Survey. Except as otherwise shown on the Qualified Survey, (i) all of the Improvements relating to the Property lie wholly within the boundaries and building restriction lines of the Property, and (ii) no
improvements on adjoining properties encroach upon the Property, and no easements or other encumbrances upon the Property encroach upon any of the Improvements, in either case, so as to have a Material Adverse Effect. 
  
 (bb) Filing and Recording Taxes. All transfer taxes, deed stamps,
intangible taxes or other amounts in the nature of transfer taxes required to be paid by any Person under applicable Legal Requirements currently in effect in connection with the transfer of the Property to Borrower have been paid in full. All
mortgage, mortgage recording, stamp, intangible or other similar tax required to be paid by any Person under applicable Legal Requirements currently in effect in connection with the execution, delivery, recordation, filing, registration, perfection
or enforcement of any of the Loan Documents, including the Mortgage, and the Lien intended to be created thereby, have been paid or deposited with a title company for payment upon recordation of the Mortgage. 
  
 (cc) Single-Purpose. Borrower hereby represents and warrants to, and
covenants with, Lender that: 
  
 (i) It has not
owned and will not own any property or any other assets other than (A) the Property and (B) incidental personal and intangible property relating to the ownership, leasing, maintenance or operation of the Property. 
  
 (ii) It has not engaged and will not engage in any business
other than the ownership, management, leasing, maintenance, financing and operation of the Property. 
  
 (iii) Other than the existing Management Agreement with the Current Manager and the Affiliate Office Leases, it has not entered and will
not enter into any contract or agreement with any of its Affiliates, any of its constituent parties or any Affiliate of any constituent party, except upon terms and conditions that are substantially similar to those that would be available on an
arm’s-length basis with third parties. 
  
 (iv) It has not incurred and will not incur any indebtedness, secured or unsecured, direct or indirect, absolute or contingent (including guaranteeing any obligation), other than the Permitted Indebtedness. Except as set forth in the
immediately 

  

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preceding sentence, no indebtedness other than the Debt may be secured (subordinate or pari passu) by the Property or any portion thereof.

  
 (v) It has not made and will not make any
loans or advances to any other Person (including any Affiliate or constituent party or any Affiliate of any constituent party). 
  
 (vi) It is and will remain solvent and will pay its debts and liabilities (including employment and overhead expenses) from its assets as
the same shall become due. 
  
 (vii) It has done
or caused to be done and will do all things necessary to observe corporate, partnership or limited liability company formalities, as the case may be, and preserve its existence, and it will not, nor will it permit or suffer any constituent party to
amend, modify or otherwise change its partnership certificate, partnership agreement, operating agreement, articles of incorporation and bylaws, trust or other organizational documents or those of such constituent party in a manner which would
adversely affect its existence as a Single Purpose Entity. 
  
 (viii) It will maintain books and records and bank accounts separate from those of any other Person (including its Affiliates, any constituent party and any Affiliate of any constituent party) and it will file its own
tax returns (except to the extent consolidation or inclusion is required as a matter of law). 
  
 (ix) It will be, and at all times will hold itself out to the public as, a legal entity separate and distinct from any other entity
(including any of its Affiliates, any of its constituent parties or any Affiliate of any constituent party), shall conduct business in its own name and shall maintain and utilize separate stationery, invoices and checks. 
  
 (x) It will maintain adequate capital for the normal
obligations reasonably foreseeable in a business of its size and character and in light of its contemplated business operations. 
  
 (xi) Neither it nor any of its constituent parties will seek its dissolution or winding up, in whole or in part. 
  
 (xii) It will not commingle its funds and other assets with
those of any Affiliate or constituent party or any Affiliate of any constituent party or any other Person. 
  
 (xiii) It has and will maintain its assets in such a manner that it will not be costly or difficult to segregate, ascertain or identify
its individual assets from those of any Affiliate or constituent party or any Affiliate of any constituent party or any other Person. 
  
 (xiv) It has not held and will not hold itself out to be responsible for the debts or obligations of any other Person. 
  

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 (xv) If it is a limited partnership (or a limited liability company), (i) at least one of
its general partners (or the managing member) shall be a Single Purpose Entity that is a corporation whose sole assets are its interest in Borrower, or (ii) at least one of its general partners shall be a limited liability company which shall have
at least two (2) members, one of which shall be the managing member and which shall be a Single Purpose Entity that is a corporation whose sole assets are its interest in such limited liability company, and Borrower shall be deemed hereby to have
made each of the representations, warranties and covenants contained in this Section 4.1(cc) with respect to such general partner (or such managing member of such general partner) or managing member, as applicable. 
  
 (xvi) It shall at all times cause there to be at least one
duly appointed member of its board of directors (or if Borrower is a general partnership or limited partnership (or a limited liability company), the board of directors of its general partner (or managing member or the board of directors of the
managing member of its general partner)) (an “Independent Director”) who shall not be at the time of such individual’s appointment, who shall not be during the term of such individual’s appointment and shall not have been
at any time during the two years preceding his or her appointment (i) a member, stockholder, partner, director, officer or employee of Borrower or any of Borrower’s Affiliates; or (ii) affiliated with a significant customer or supplier of
Borrower or any of Borrower’s Affiliates; or (iii) any other Person receiving a material portion of his or her compensation or other financial remuneration from or who is otherwise financially dependent on, Borrower, an officer, director or
employee of Borrower or any of Borrower’s Affiliates or an officer’s, director’s or employee’s family member by blood or marriage or a business entity owned or controlled by any of the foregoing; or (iv) a spouse, parent, sibling
or child of any person described by (i), (ii) or (iii) above. As used in this Section 4.1(cc)(xvi), the term “controlled” means the ownership of 10% or more of the voting securities of a Person or the possession, directly or indirectly, of
the power to direct or cause the direction of the management and policies of a Person whether through ownership of voting securities, by contract or otherwise. 
  

(xvii) It shall not, without the unanimous consent of its board of directors (including in all instances the Independent Director), or
the consent of the board of directors of its general partner if it is a general or limited partnership or its managing member if it is a Limited liability company, or the board of directors of the managing member of its general partner, (A) dissolve
or liquidate, in whole or in part; (B) engage in any business or activity other than as provided in clause (ii) above; (C) consolidate or merge with or into any other entity, convert into another form of business entity or convey or transfer or
lease its property and assets substantially as an entirety to any entity or person; (D) institute proceedings to be adjudicated bankrupt or insolvent, or consent to the institution of bankruptcy or insolvency proceedings against it, or file a
petition seeking or consenting to reorganization or relief under any applicable federal or state law relating to bankruptcy, or consent to the appointment of a receiver, liquidator, assignee, trustee, sequestrator, conservator, custodian (or other
similar official) of Borrower, or a substantial part of the property of Borrower, or make any assignment for the benefit of creditors, or admit in writing its inability to pay its debts generally as they become due, or otherwise seek relief under
any laws relating to the relief from debts or the protection of 

  

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debtors generally, or take action in furtherance of any of the foregoing; (E) amend the provisions of Borrower’s certificate of incorporation or
partnership agreement or operating agreement, if such amendment could materially adversely affect any of the Single Purpose Entity requirements; or (F) enter into any transaction with an Affiliate not in the ordinary course of Borrower’s
business. 
  
 (xviii) It has no liabilities,
contingent or otherwise, other than those normal and incidental to the ownership, operation and leasing of the Property and the Permitted Indebtedness. 
  
 (dd) Investment Company Act. It is not (i) an “investment company” or a company “controlled” by an “investment
company,” within the meaning of the Investment Company Act of 1940, as amended; or (ii) a “holding company” or a “subsidiary company” of a “holding company” or an “affiliate” of either a “holding
company” or a “subsidiary company” within the meaning of the Public Utility Holding Company Act of 1935, as amended. Its sole business is the ownership, operation, maintenance, repair, financing, refinancing and disposition of the
Property. 
  
 (ee) Fraudulent Transfer. It (i) has not
entered into the Loan or any Loan Document with the actual intent to hinder, delay, or defraud any creditor and (ii) has received reasonably equivalent value in exchange for its obligations under the Loan Documents. Giving effect to the transactions
contemplated by the Loan Documents, the fair saleable value of its assets exceeds and will, immediately following the execution and delivery of the Loan Documents, exceed its total liabilities, including subordinated, unliquidated, disputed or
contingent liabilities. The fair saleable value of its assets is and will, immediately following the execution and delivery of the Loan Documents, be greater than their probable liabilities, including the maximum amount of their contingent
liabilities or their debts as such debts become absolute and matured. Borrower’s assets do not and, immediately following the execution and delivery of the Loan Documents will not, constitute unreasonably small capital to carry out its business
as conducted or as proposed to be conducted. Borrower does not intend to, and does not believe that it will, incur debts and liabilities (including contingent liabilities and other commitments) beyond its ability to pay such debts as they mature
(taking into account the timing and amounts to be payable on or in respect of its obligations). 
  
 (ff) Material and Management Agreements. To its Actual Knowledge each of the Material Agreements and the Management Agreement is in full force and
effect and is valid and enforceable in all material respects, subject in each case to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights
and to general equity principles; there are no defaults, breaches or violations thereunder by Borrower or, to Borrower’s Actual Knowledge, any other party thereto, and, to Borrower’s Actual Knowledge, there are no conditions (other than
payments that are due but not yet delinquent and other non-delinquent executory obligations) that, with the passage of time or the giving of notice, or both, would constitute a default by any party thereunder, where with respect to any such
Agreement the effect of one or more of any such defaults described in this paragraph would have a Material Adverse Effect. Neither the execution and delivery of the Loan Documents, Borrower’s performance thereunder, the recordation of the
Mortgage, nor the exercise of any remedies by Lender, will have a Material Adverse Effect. 
  

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 (gg) Employees. It either has no employees or has no material liability which has been incurred by
it and remains unsatisfied for any taxes or penalties with respect to (i) any Employee Benefit Plan established, sponsored, maintained or contributed to by it on behalf of its employees at the Property or (ii) any “multiemployer plan” (as
defined in Section 4001(a)(3) of ERISA) as to which it is making or has an obligation to make contributions or (iii) any lien which has been imposed on its assets pursuant to Section 412 of the Code or Sections 302 or 4068 of ERISA. 
  
 (hh) Rent Roll. The rent roll for the Property delivered to Lender on
or prior to the Closing Date is true, correct and complete in all material respects. 
  
 (ii) Legal Compliance. To its Actual Knowledge, neither the Property nor any portion thereof is on the date hereof in violation of any Legal Requirement or any Insurance Requirement in a manner that is
reasonably likely to have a Material Adverse Effect. 
  
 (jj)
Security Deposits. It is in compliance with all applicable material Legal Requirements with respect to the Security Deposits. 
  
 Section 4.2 Survival of Representations. Borrower agrees that all of the representations and warranties set forth in Section 4.1 and elsewhere in
this Agreement and in the other Loan Documents shall survive for so long as any portion of the Debt is outstanding (it being acknowledged by Lender that such representations and warranties have been made as of the Closing Date). Borrower
acknowledges and agrees that all representations, warranties, covenants and agreements made in this Agreement or in the other Loan Documents by Borrower are a material inducement to the making of the Loan hereunder by Lender. 
  
 V. AFFIRMATIVE COVENANTS 
  
 Section 5.1 Borrower Covenants. Borrower hereby covenants and agrees
with Lender that: 
  
 (a) Existence; Compliance with Legal
Requirements. It shall do or cause to be done all things necessary to preserve, renew and keep in full force and effect its existence, rights, licenses, permits and franchises and comply in all material respects with all Legal Requirements
applicable to it and the Property. It shall at all times maintain and preserve the Property and all of its property used in the conduct of its business in a commercially prudent manner (taking into consideration the size, type, nature and location
of the Property) and shall keep the Property in good working order and repair, reasonable wear and tear excepted, and from time to time make, or cause to be made, all reasonably necessary repairs, renewals, replacements, betterments and improvements
thereto. It will operate, maintain, repair and improve the Property in compliance with all Legal Requirements (including the maintenance of all licenses required by applicable Legal Requirements) and will not cause or allow the Property to be
misused or wasted or to deteriorate. Without limiting the foregoing, Borrower shall perform the work set forth on Schedule 1 hereto with respect to the Property listed thereon in a diligent manner and shall complete the same not later than
the first anniversary hereof (subject to delays due to force majeure). 
  

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 (b) Taxes and Other Charges; Contest for Taxes and Other Charges, Legal Requirements and Liens.

  
 (i) Subject to the provisions of Section
5.1(b)(ii), it shall pay all Taxes and Other Charges now or hereafter levied or assessed or imposed against the Property or any part thereof prior to the date on which such amounts become delinquent. It will deliver to Lender, upon request, receipts
for payment or other evidence satisfactory to Lender that the Taxes and Other Charges have been so paid (provided, however, that Borrower is not required to furnish such receipts for payment of Taxes in the event that such Taxes have
been paid by Lender pursuant to Section 9.3.2 hereof). Subject to the provisions of 5.1(b)(ii) and other than Permitted Encumbrances, it shall not suffer and shall promptly cause to be paid and discharged any lien or charge whatsoever which may be
or become a lien or charge against the Property and shall promptly pay for all utility services provided to the Property. Subject to Section 5.1(b)(ii), within thirty (30) days of obtaining knowledge thereof, it shall pay, bond or otherwise
discharge, from time to time when the same shall become due, all claims and demands of mechanics, materialmen, laborers and others that, if unpaid, might result in, or permit the creation of, a lien or encumbrance on the Property or on the Rents
arising therefrom. 
  
 (ii) Notwithstanding the
foregoing, after prior written notice to Lender, Borrower, at its own expense, may contest by appropriate legal, administrative or other proceeding, promptly initiated and conducted in good faith and with due diligence, the amount or validity or
application in whole or in part of any Taxes or Other Charges or any Lien therefor or any Legal Requirement or Insurance Requirement or the application of any instrument of record affecting the Property or any part thereof (other than the Loan
Documents) or any claims or judgments of mechanics, materialmen, suppliers, vendors or other Persons or any Lien therefor, and may withhold payment of the same pending such proceedings if permitted by law; provided that (A) no Default or
Event of Default has occurred and remains uncured other than a Default or Event of Default resulting solely from the matter in question, (B) such proceeding shall suspend any collection of the contested Taxes, Other Charges or Liens from the
Property, Borrower and Lender, (C) such proceeding shall be permitted under and be conducted in accordance with the provisions of any other instrument to which Borrower is subject and shall not constitute a default thereunder, (D) neither the
Property nor any part thereof or interest therein will be in danger of being sold, forfeited, terminated, canceled or lost, (E) to the extent not already escrowed with Lender under Section 9.3 hereof, Borrower shall have furnished Lender with
security (in an amount or type reasonably approved by Lender) to insure the payment of any such Taxes or Other Charges, or the cost of the contested Legal Requirement or Insurance Requirement or the removal of the Lien, in each case together with
all reasonably anticipated interest and penalties thereon, (F) in the case of an Insurance Requirement, the failure of Borrower to comply therewith shall not impair the validity of any insurance required to be maintained by Borrower hereunder or the
right to full payment of any claims thereunder, (G) in the case of any essential or significant service with respect to the Property, any contest or failure to pay will not result in a discontinuance of any such service, (H) in the case of any
instrument of record affecting the Property or any part thereof, the contest or failure to perform under any such instrument shall not result in the placing of any Lien on the Property or any part thereof 

  

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(except if such Lien would be removed upon completion of such proceedings and the compliance by the parties with the terms of the resulting order, decision
or determination and the removal costs for such Lien have been escrowed with Lender or in the proceeding), (I) except to the extent Borrower has provided sufficient Eligible Collateral therefor, neither the failure to pay or perform any obligation
which Borrower is permitted to contest under this Section nor an adverse determination of any such contest shall result in a Material Adverse Effect, and (J) Borrower shall promptly upon final determination thereof pay the amount of any such Taxes,
Other Charges or Liens, if any, together with all costs, interest and penalties which may be payable in connection therewith. Lender may pay over any such cash deposit or part thereof held by Lender to the claimant entitled thereto at any time when,
in the good faith judgment of Lender, the entitlement of such claimant is finally established, and Lender shall otherwise remit any remaining such amounts to Borrower. Subject to the foregoing, at Borrower’s timely request, Lender shall not pay
from the Tax and Insurance Escrow Account the contested Taxes or Other Charges being contested. 
  
 (c) Litigation. It shall give prompt written notice to Lender of any litigation or governmental proceedings commenced or to its Actual Knowledge
threatened in writing against it which, if determined adversely to it, might reasonably be likely to have a Material Adverse Effect. 
  
 (d) Premises. It shall permit agents, representatives and employees of Lender (including Servicer and Special Servicer) to inspect the Property or
any part thereof on any Business Day at reasonable hours upon reasonable advance notice subject to the rights of any Tenants. 
  
 (e) Notice of Default. It shall promptly advise Lender of any Default or Event of Default of which it has Actual Knowledge. 
  
 (f) Cooperate in Legal Proceedings. Except with respect to any claim
by Borrower against Lender, it shall cooperate fully with Lender with respect to any proceedings before any court, board or other Governmental Authority which may in any way affect the rights of Lender hereunder or any rights obtained by Lender
under any of the other Loan Documents and, in connection therewith, permit Lender, at its election, to participate in any such proceedings. 
  
 (g) Perform Loan Documents. It shall observe, perform and satisfy all the terms, provisions, covenants and conditions of, and shall pay when due
all costs, fees and expenses to the extent required under the other Loan Documents executed and delivered by, or applicable to, it. 
  
 (h) Insurance Benefits. Subject to the terms of Section 8.1.2 hereof, it shall cooperate with Lender in obtaining for Lender the benefits of any
insurance proceeds lawfully or equitably payable in connection with the Property, and Lender shall be reimbursed for any out-of-pocket expenses reasonably incurred in connection therewith (including reasonable attorneys’ fees and disbursements,
and, if reasonably necessary to collect such proceeds, the reasonable 

  

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expense of an appraisal on behalf of Lender in case of a fire or other casualty affecting the Property or any part thereof) out of such insurance proceeds.

  
 (i) Further Assurances. It shall, at its sole cost and
expense: 
  
 (i) execute and deliver to Lender
such documents, instruments, certificates, assignments and other writings, and do such other acts necessary or desirable, to evidence, preserve and/or protect the Lien of the Lender at any time securing or intended to secure the obligations of
Borrower under the Loan Documents, as Lender may reasonably require; and 
  
 (ii) do and execute all and such further lawful and reasonable acts, conveyances and assurances for the better and more effective carrying out of the intents and purposes of this Agreement and the other Loan
Documents, as Lender shall reasonably require from time to time. 
  
 (j) Financial Reporting and Other Information. 
  
 (i) It will keep and maintain or will cause to be kept and maintained on a Fiscal Year basis, in accordance with GAAP, to the extent applicable, proper and accurate books, records and accounts reflecting all of its
financial affairs including operating income, operating expenses and Capital Expenditures, Tenant Improvements and Leasing Commissions. Lender shall have the right from the to time at all times during normal business hours upon reasonable notice to
examine such books, records and accounts at the office of Borrower or other Person maintaining such books, records and accounts and to make such copies or extracts thereof, as Lender shall desire. After the occurrence and during the continuance of
an Event of Default, Borrower shall pay any costs and expenses incurred by Lender to examine the accounting records with respect to the Property, as Lender shall determine to be necessary or appropriate. 
  
 (ii) Borrower shall furnish to Lender within eighty-five
(85) days following the end of each Fiscal Year, a complete copy of its annual financial statements, prepared in accordance with GAAP, audited by a “Big Five” accounting firm or another independent certified public accounting firm
reasonably acceptable to Lender, including a balance sheet and statement of operations, all in such form and such detail as Lender may reasonably request; provided, however, that Lender agrees that the form of Prior Owner’s financial statements
with respect to the Property are in a form acceptable to Lender. All such statements shall set forth the financial condition and the income and expenses for the Property for the immediately preceding Fiscal Year. Borrower’s audited annual
financial statements shall be accompanied by a management report, in form and substance reasonably satisfactory to Lender, discussing the reconciliation between the financial statements for such Fiscal Year and the most recent Annual Budget.
Together with Borrower’s annual financial statements, Borrower shall furnish to Lender (A) an Officer’s Certificate certifying as of the date thereof (i) whether, to Borrower’s Actual Knowledge, there exists a Default or Event of
Default, and if such Default or Event of Default exists, the nature thereof, the period of time it has existed and the action then being taken to remedy the same and (ii) that the rent roll attached thereto is true, correct 

  

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and complete in all material respects; and (B) an annual report, for the most recently completed fiscal year, containing: 
  
 (1) A statement of the Capital Expenditures, Leasing
Commissions and Tenant Improvements made with respect to the Property, including separate line items (stated separately with respect to any project costing in excess of $25,000) for (x) maintenance (i.e., roof, parking garage, equipment and HVAC),
(y) Tenant Improvements and Leasing Commissions, and (z) renovations, expansions and enhancements and the status of each such project, and 
  
 (2) occupancy levels for such period. 
  
 (iii) Borrower will furnish, or cause to be furnished, to Lender on or before the thirtieth (30th) day after the end of each calendar
month, the following items, accompanied by an Officer’s Certificate, certifying that such items are true, correct, accurate, and complete and fairly present the results of the operations of the Property in accordance with GAAP, without
footnotes (as applicable and subject to normal year end adjustments), to the extent applicable: 
  
 (A) any written notice received from a Tenant or subtenant under a Lease or sublease affecting 25,000 or more rentable square feet in the
Property threatening non-payment of rent or other material default by landlord, alleging or acknowledging a default by landlord, requesting a termination or modification of a Lease or sublease or notifying Borrower of the exercise or non-exercise of
any option provided for in such Lease or sublease, or any other similar material correspondence received by Borrower during the subject month; 
  
 (B) monthly and year-to-date operating statements prepared for each calendar month, noting Net Operating Income and other information
necessary and sufficient to fairly represent the results of operations of the Property during such calendar month, all in form reasonably satisfactory to Lender (it being agreed that the current operating statements delivered to Lender are in form
reasonably satisfactory to Lender); 
  
 (C) a
statement of the Capital Expenditures, Leasing Commissions and Tenant Improvements made in respect of the Property, including separate line items (stated separately with respect to any project costing in excess of $25,000) for (x) maintenance (i.e.,
roof, parking garage, equipment and HVAC, (y) Tenant Improvements and Leasing Commissions, and (z) renovations, expansions and enhancements and the status of each such project; and 
  
 (D) a report setting forth the material terms of (i) any new Lease or Lease renewal or any new sublease or
sublease renewal of which Borrower has knowledge, and (ii) any termination or modification of a Lease or sublease of which Borrower has knowledge, in each case affecting 25,000 or more square feet of rentable space at the Property. 
  

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 (iv) Borrower will furnish, or cause to be furnished, to Lender on or before the fortieth
(40th) day after the end of each fiscal quarter, the following items, accompanied by an Officer’s Certificate, certifying that such items are true, correct, accurate and complete and fairly present the financial condition and results of the
operations of Borrower and the Property in a manner consistent with GAAP, without footnotes (as applicable and subject to normal year-end adjustments), to the extent applicable: 
  
 (A) quarterly and year-to-date financial statements, including a balance sheet and operating statement,
prepared for such fiscal quarter with respect to the Property, with a balance sheet as of the end of such quarter together with a supplemental schedule of Net Operating Income for such quarter which ties (subject to adjustments to reconcile
accounting principles) to the operating statements prepared in accordance with GAAP, as required by this Agreement; 
  
 (B) a comparison of the budgeted income and expenses and the actual income and expenses for such quarter and year-to-date for the
Property, together with a detailed explanation of any variances of at least the greater of five percent (5%) or $10,000 between budgeted and actual amounts for such period and year to date; 
  
 (C) an occupancy report for such period; 
  
 (D) a current rent roll for the Property in the same form as
the rent roll delivered on or prior to the Closing Date; and 
  
 (E) a statement that the representations and warranties of Borrower set forth in Section 4.1(cc)(iv) are true and correct as of the date of such certificate. 
  
 Borrower shall also provide the Lender with the reports and shall make the payments required
by Section 9.4.4 hereof. 
  
 (v) Borrower shall
furnish to Lender, within ten (10) Business Days after request, such further detailed information with respect to the operation of the Property and the financial affairs of Borrower as may be reasonably requested by Lender. 
  
 (vi) Borrower shall furnish to Lender, promptly after
receipt, a copy of any notice received by or on behalf of Borrower from any Governmental Authority having jurisdiction over the Property with respect to a condition existing or alleged to exist or emanate therefrom or thereat which condition is
reasonably likely to have a Material Adverse Effect. 
  
 (vii) Borrower will, at any and all times, within a reasonable time after written request by Lender, furnish or cause to be furnished to Lender, in such manner and in such detail as may be reasonably requested by Lender, such information as
may be necessary to permit Lender to comply with any request for information made by an 

  

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investor or prospective investor in the Certificates and to be furnished under Rule 144A(d) under the Securities Act of 1933, as amended (the
“Securities Act”). 
  
 (viii) If
Borrower fails to provide to Lender or its designee any of the financial statements, certificates, reports or information (the “Required Records”) required by this Section 5.1(j) within thirty (30) days after the date upon which
such Required Record is due, the same shall be an Event of Default; provided that Lender shall have given to Borrower at least five (5) Business Days’ prior written notice (with respect to any of the foregoing specifically identified
herein) or twenty (20) days’ prior written notice (with respect to any of the foregoing not specifically identified herein) of such failure by Borrower to timely submit the applicable Required Record. Notwithstanding anything to the contrary
contained herein, if following written notice from Borrower to Lender of Lender’s (or Servicer’s) failure to provide any financial information pursuant to Section 2.5.3 and the exercise by Borrower of reasonable diligence to obtain the
same, Borrower is unable to include certain financial information required to be included in such Required Record or to make certain calculations required therefor, due to the failure of Lender or Servicer or either of their agents, representatives
or employees to deliver such financial information, Borrower shall prepare and deliver to Lender the Required Records without such information, and calculations to the extent feasible (and, to the extent feasible, with good-faith estimates with
respect to such missing information, clearly stated as estimates); provided, further that Borrower shall deliver revised financial reports or statements promptly following receipt of the necessary financial information from Lender, Servicer or other
sources. 
  
 (ix) The information required to be
furnished by Borrower to Lender under Sections 5.1(j)(ii), (iii) (other than (iii)(A) and (D)) and (iv) shall be provided in both hard copy format and electronic format and it is hereby agreed that such electronic information may be provided in
print file only format. 
  
 (x) Borrower shall
use reasonable efforts to deliver, or cause to be delivered, to Lender, simultaneously with the delivery of Borrower’s annual audited financial statements pursuant to Section 5.1(j)(ii) above, a consent of Borrower’s auditors consenting to
the use or incorporation by reference of their audit report to the extent required by the Securities Act or the Securities Exchange Act of 1934 in connection with filings required to be made by the holder of the Loan under the Securities Act or
Securities Exchange Act of 1934, together with an original executed copy of such audit report. 
  
 (xi) On or prior to March 31, 1998, Borrower shall deliver to Lender (A) an audited balance sheet and income statement for Fiscal Year
1997 or (B) an unaudited balance sheet and income statement for Fiscal Year 1997, accompanied by a report from a “Big Five” accounting firm or another independent certified public accounting firm reasonably acceptable to Lender, setting
forth the results of performance of agreed upon procedures with respect to the amounts set forth in such balance sheet and income statement. 
  

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 (k) Business and Operation. It will continue to engage in the businesses currently conducted by it
as and to the extent the same are necessary for the ownership, maintenance, management, leasing and operation of the Property. It will qualify to do business and will remain in good standing under the laws of the Commonwealth of Pennsylvania.

  
 (l) Title to the Property. It will warrant and defend
against the claims of all Persons whomsoever (i) the title to the Property and every part thereof and (ii) the validity and priority of the Lien of the Mortgage, subject only to Permitted Encumbrances. 
  
 (m) Costs of Enforcement. In the event (i) that the Mortgage is
foreclosed in whole or in part or that either Note, or any Loan Document, including the Mortgage, is put into the hands of an attorney for collection, suit, action or foreclosure, (ii) of the foreclosure of any Lien prior to or subsequent to the
Mortgage in which proceeding Lender is made a party, (iii) of the bankruptcy, insolvency, rehabilitation or other similar proceeding in respect of Borrower or an assignment by Borrower for the benefit of its creditors, or (iv) Lender shall attempt
to remedy any Event of Default hereunder, Borrower, its successors or assigns, shall be chargeable with and agrees to pay all costs incurred by Lender as a result thereof, including costs of collection and defense, including reasonable
attorneys’ fees (and experts’, consultants’ and witnesses’ fees) and disbursements in connection therewith and in connection with any appellate proceeding or post-judgment action involved therein, which shall be due and payable
together with all required service or use taxes. 
  
 (n)
Estoppel Statement. After written request by Lender, which request shall not be made more than twice in the twelve (12) month period following the date of this Agreement nor more than once in any twelve (12) month period thereafter occurring,
Borrower shall within fifteen (15) days furnish Lender with a statement, duly acknowledged and certified, setting forth (A) the original principal amount of each Note, (B) the unpaid principal amount of each Note, (C) the Interest Rate of the Notes,
(D) the date installments of interest and/or principal were last paid on each Note, (E) any offsets or defenses to the payment of the Debt, (F) that the Notes, this Agreement, the Mortgage and the other Loan Documents are valid, legal and binding
obligations and have not been modified or if modified, giving particulars of such modification, and (G) such other matters as Lender may reasonably request. If at the time of any such request the Tranche B Note has been paid in full, Borrower’s
estoppel statement shall relate only to the Tranche A Note. 
  
 (o) Loan Proceeds. Borrower shall use the proceeds of the Loan received by Borrower on the Closing Date only for the purposes set forth in Section 2.1.4. 
  
 (p) Annual Budget. Provided no Event of Default has occurred and is continuing, Borrower shall prepare and deliver to
Lender, for informational purposes only, on or before December 1 of each year an Annual Budget in respect of the Property for the ensuing Fiscal Year and, promptly after preparation thereof, any subsequent revisions to such Annual Budget. It is
hereby understood and agreed that provided no Event of Default exists hereunder, and prior to the Anticipated Prepayment Date, Borrower may make revisions to the Annual Budget when and if it desires, without Lender’s consent or approval. From
and after the Anticipated Prepayment Date or if an Event of Default has occurred and is continuing, (i) Borrower shall prepare and deliver such Annual Budget to Lender for its approval, on or before November 1 of each year 

  

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during the Term and, promptly after preparation thereof, any subsequent revisions to such Annual Budget necessitated by unforeseeable events; provided
that no more than one (1) such subsequent revision shall be permitted in any two (2) month period, (ii) such Annual Budget and any such subsequent revisions thereto shall be subject to Lender’s approval (which shall not be unreasonably
withheld, conditioned or delayed), (iii) Borrower shall operate the Property in accordance with each such Annual Budget, subject to a five percent (5%) variance on Operating Expenses on a line-item basis (except that up to three (3) line items
totaling no more than $250,000 may be aggregated for such variance), but in no event shall such additional amount exceed more than five percent (5%) of such month’s budgeted amount for all Operating Expenses, and (iv) if the period as to which
any Annual Budget relates has expired and an Annual Budget for the next period has not been approved, then Borrower shall operate the Property in accordance with the last approved Annual Budget until a new Annual Budget has been approved;
provided, however, that Borrower agrees to promptly submit revised Annual Budgets to Lender for its approval and shall work diligently and in good faith to respond to Lender’s objections to any Annual Budget. Notwithstanding the
foregoing, Borrower shall have the right, without obtaining Lender’s prior approval (but subject to notifying Lender of the same and the amount thereof as soon as possible) to incur expenses in excess of the approved Annual Budget in the event
of an emergency which, in the reasonable judgement of Borrower, requires immediate action to avoid imminent personal injury, material physical property damage or material devaluation or criminal liability. 
  
 (q) No Joint Assessment. Borrower shall not suffer, permit or initiate
the joint assessment of the Property (i) with any other real property constituting a tax lot separate from the Property, and (ii) unless required by applicable law, with any portion of the Property which may be deemed to constitute personal
property, or any other procedure whereby the lien of any taxes which may be levied against such personal property shall be assessed or levied or charged to the Property. 
  
 (r) Security Deposits. Borrower shall, within two Business Days of receipt thereof, deposit, directly into the escrow
account referred to below, all security deposits, letters of credit or other collateral (“Security Deposits”) that it receives from time to time from any Tenant as security for the performance by such Tenant of its obligations under
its Lease. Lender shall deposit any cash received from Borrower pursuant to the preceding sentence in an escrow account in the name of Lender (the “Security Deposit Account”) and, except to the extent required by law or the
applicable Lease, the Security Deposit Account shall be maintained in accordance with the terms of Section 11.2. Borrower shall require each applicable Tenant to maintain in effect all existing and future letters of credit, bonds or other similar
collateral which constitute Security Deposits (unless replaced by cash deposits) during the term of the applicable Lease (or so long as such tenant is required to maintain such Security Deposit under its Lease). Each future letter of credit, bond or
other similar collateral that is a Security Deposit shall be issued by an institution reasonably satisfactory to Lender, shall, if permitted by applicable Legal Requirements, name Lender as payee, mortgagee or beneficiary (or, at Lender’s
option, be fully assignable to Lender without any action being required to be taken by Borrower) and shall in all respects comply with all applicable Legal Requirements and otherwise be reasonably satisfactory to Lender. Borrower shall have the
right to replace any Cash which was initially placed in the Security Deposit Account in lieu of a letter of credit, bond or similar collateral with a letter of credit, bond or similar collateral meeting the requirements of this Section 5.1(r).
Lender shall 

  

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comply with all applicable Legal Requirements in holding such Security Deposits and, subject thereto, shall make such Security Deposits available to Borrower
or the applicable Tenant on or prior to the tenth (10th) Business Day after notice from Borrower to the extent required to comply with obligations owed to such Tenant under the terms of its Lease or to Borrower, in the event Borrower is entitled to
such deposit in accordance with the applicable Lease and applicable law by reason of such Tenant’s default under its Lease. Lender may commingle funds in the Security Deposit Account and Lender shall not be obligated to segregate, designate or
separately account for any specific Security Deposit, except to the extent that such Security Deposit is required to be segregated by the applicable Lease or under applicable law. 
  
 (s) Management Agreements; Material Agreements. Borrower shall: 
  
 (i) promptly perform and/or observe all of the material
covenants and agreements required to be performed and observed by it under the Management Agreement and any Material Agreement to which it is a party, and do all things necessary to preserve and to keep unimpaired its material rights thereunder;

  
 (ii) promptly notify Lender of the giving of
any written notice of any material default by any party under any Material Agreement to which it is a party or any Management Agreement; 
  
 (iii) promptly enforce the performance and observance of all of the material covenants and agreements required to be performed and/or
observed by the other party under each Material Agreement to which it is a party and any Management Agreement; and 
  
 (iv) keep the Property managed at all times by an Acceptable Manager pursuant to a Management Agreement (it being understood that except
as expressly provided to the contrary in the Consent of Manager, in the event that any Manager is terminated by Lender pursuant to the Consent of Manager, such Manager shall no longer be deemed to be an Acceptable Manager). 
  
 Notwithstanding anything to the contrary contained in the foregoing (except
the parenthetical contained in Section 5.1(s)(iv)), and provided that no Event of Default has occurred and is continuing, Borrower shall at all times have the right to (A) replace the Current Manager or any other then current Manager, provided that
(x) such Manager is at all times an Acceptable Manager, (y) Borrower shall comply with the provisions of Section 6.1(a) hereof and (z) such manager shall execute and deliver a consent agreement in form and substance substantially similar to the
Consent of Manager referred to in Section 3.1(k) and (B) enter into new Material Agreements provided that such Agreements contain commercially reasonable terms and are negotiated on an arm’s-length basis and provided that Borrower is otherwise
in compliance with the terms of this Agreement. 
  
 (t)
Insurance Policies. On or prior to March 31, 1998, Borrower shall deliver to Lender copies of the Policies applicable to the Property, which Policies shall comply in all material respects with the requirements of this Agreement. Such Policies
shall be accompanied 

  

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by an Officer’s Certificate certifying that such Policies are true, correct and complete and comply in all material respects with the requirements of
this Agreement. 
  
 VI. NEGATIVE COVENANTS 
  
 Section 6.1 Borrower’s Negative Covenants. Borrower covenants and
agrees with Lender that it will not do, directly or indirectly, any of the following: 
  
 (a) Operation of Properties. It shall not, without Lender’s prior consent (except as elsewhere herein expressly provided): (i) surrender, terminate or cancel any Material Agreement to which it is a party
(unless, other than with respect to the REA, the other party thereto is in default or the termination of such agreement would be commercially reasonable), (ii) materially increase or consent to the material increase of the amount of any charges due
from Borrower under any Material Agreement to which it is a party or any Management Agreement, except, other than with respect to the REA, as provided therein or on an arm’s-length basis and commercially reasonable terms; or (iii) otherwise
modify, change, supplement, alter or amend, or waive or release any of its rights and remedies under any Material Agreement to which it is a party or any Management Agreement in any material respect, except, other than with respect to the REA, on an
arm’s-length basis and commercially reasonable terms. 
  
 (b)
Liens. Subject to Section 5.1(b)(ii), it shall not, without the prior written consent of Lender, which consent may be withheld in the sole discretion of Lender, create, incur, assume, permit or suffer to exist any Lien on any portion of the
Property, except Permitted Encumbrances. 
  
 (c)
Dissolution. It shall not dissolve, terminate, liquidate, merge with or consolidate into another Person. 
  
 (d) Change in Business. It shall not enter into any line of business other than the ownership, maintenance, financing, refinancing and operation of
the Property (in each case subject to the terms hereof), or make any material change in the scope or nature of its business objectives or purposes, or undertake or participate in activities other than the continuance of its present business.

  
 (e) Debt Cancellation. It shall not cancel or otherwise
forgive or release any claim or debt owed to Borrower by any Person, including any arising under any of the Leases, the Management Agreement and the Material Agreements except (i) with respect to the Leases, Management Agreements and Material
Agreements, in accordance with and subject to the terms hereof and thereof and (ii) with respect to other matters, for adequate consideration in the ordinary course of Borrower’s business and on commercially reasonable terms, subject to other
restrictions contained herein, if any, or in any other Loan Document. 
  
 (f) Affiliate Transactions. Except with respect to the existing Management Agreement with the Current Manager and the Affiliate Office Leases, it shall not enter into, or be a party to, any transaction with any of its Affiliates or
any of its shareholders, partners or members or Affiliates thereof except in the ordinary course of business and on terms which are 

  

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no less favorable to it than would be obtained in a comparable arm’s-length transaction with an unrelated third party. 
  
 (g) Zoning and Uses. Except to the extent the same (a) shall not
result in a change in use of the Property and (b) shall not have a material adverse effect on cash flow from or value of the Property (in which such case Borrower may proceed without Lender’s consent), it shall not without Lender’s prior
written consent, which may be granted or withheld in Lender’s sole discretion, (i) initiate or support any limiting change in the permitted uses of the Property (or to the extent applicable, the zoning reclassification of the Property) or any
portion thereof or, seek any variance under existing land use restrictions, laws, rules or regulations (or, to the extent applicable, the zoning ordinances) applicable to the Property, (ii) use or permit the use of the Property in a manner that is
reasonably likely to have a Material Adverse Effect or that would violate the material terms of any Lease, Operating Agreement, Legal Requirements or any Permitted Encumbrance, (iii) modify, amend or supplement any Permitted Encumbrance in a manner
adverse in any material respect to the interests of Lender, (iv) impose or permit or suffer the imposition of any restrictive covenants, easements or encumbrances upon the Property in any manner that is reasonably likely to have a Material Adverse
Effect, (v) execute or file any subdivision plat affecting the Property, (vi) institute, or permit the institution of proceedings to alter any tax lot comprising the Property, or (vii) permit or suffer the Property to be used by the public or any
Person in such manner as might make possible a claim of adverse usage or possession or of any implied dedication or implied easement. 
  
 (h) Debt. It shall not create, incur or assume any debt (secured or unsecured) other than the Debt and Permitted Indebtedness nor shall it permit
the creation, incurrence or assumption of any debt which is secured by a pledge of the direct or indirect ownership interests in Borrower except for the Mezzanine Loan. Neither the Mezzanine Loan nor any Subordinate Mezzanine Loan may be modified,
changed, supplemented, altered or amended in any respect which is materially adverse to Lender without the prior consent of Lender, which consent may be withheld in its sole discretion. Borrower shall deliver to Lender copies of all modifications to
the Mezzanine Loan Documents or to the documents evidencing or securing any Subordinate Mezzanine Loan within five (5) Business Days after execution thereof. All of the lender’s and agent’s right, title and interest in the Mezzanine Loan
and any Subordinate Mezzanine Loan (including, without limitation, all participation interests therein) shall at a times be held by a Person meeting the requirements of clause (II) of the definition of Permitted Owner and not violating the
provisions of Section 6.1(i)(ii) relating to ERISA; provided, however, that for purposes of this sentence, subparagraph (2) of such definition shall be deemed to include a Person (i) which has a current net worth of at least $500 million and
controls mortgages on office buildings, which mortgages have a then current outstanding principal balance of at least $600,000,000 and which office buildings have a fair market value of at least $1 billion or (ii) which is listed on Schedule
10 attached hereto and subparagraph (3) of such definition shall be deemed to include any Person which is listed on Schedule 10 attached hereto. 
  
 (i) Transfers. 
  
 (i) General Limitation. Unless (1) such action is permitted by the subsequent provisions of this Section 6.1(i) or (2) if such
action occurs prior to Securitization, such action is otherwise approved by Lender in its sole discretion, or if 

  

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such action occurs after Securitization, such action is otherwise approved by Lender and the Rating Agencies in their sole discretion and Lender shall have
received a Rating Confirmation in respect thereof and, in either case, Borrower shall have complied with any requirements imposed by Lender or any Rating Agency with respect thereto, and with the exception of Leases entered into in accordance
herewith and Permitted Encumbrances, Borrower shall not (A) sell, assign, convey, transfer or otherwise dispose of or encumber legal, beneficial or equitable interests in all or any part of the Property, (B) permit or suffer any owner, directly or
indirectly, of a beneficial interest in the Property to transfer such interest, whether by transfer of stock or other beneficial interest in any entity or otherwise, (C) mortgage, hypothecate or otherwise encumber or grant a security interest in all
or any part of the Property or (D) file a declaration of condominium with respect to the Property. 
  
 (ii) Sale of the Property or Partnership Interest . 
  
 (1) So long as no Event of Default shall have occurred and be continuing and all and any loans evidenced by
the Mezzanine Loan Documents shall have been repaid in full in accordance with the terms thereof, and subject to the other requirements and conditions set forth in this clause (ii) or set forth elsewhere in this Section 6.1 which are not contrary to
the rights afforded by this Section 6.1(i)(ii)(l), Borrower may sell, assign, convey, transfer or otherwise dispose of legal or equitable title to the Property (but not less than all of the Property) or the partners of Borrower may sell, assign,
convey, transfer or otherwise dispose of their partnership interests in Borrower (but not less than all of such partnership interests) in a single transaction if, after giving effect to the proposed transaction, 
  
 (A) such transaction satisfies the requirements for a
Special Transfer or Special Partnership Transfer, except that no Rating Confirmation is necessary if the transfer is to a Permitted Owner listed on Schedule 9 (or a direct or indirect wholly-owned subsidiary thereof) and such transfer is made prior
to the date which is thirty-six (36) months after the Closing Date (provided, however, that if any such transfer is made on or after the date which is twenty-four (24) months after the Closing Date, the Rating Agencies or Lender may in their sole
discretion prohibit such transfer if the proposed Permitted Owner shall have suffered a material adverse change since the Closing Date in its business operations, economic performance, assets or condition (financial or otherwise)), 
  
 (B) the Property will be owned directly by a Single Purpose
Entity, which at the time of such transfer will be in compliance with the covenants contained in Section 4.1(cc) hereof, and which, in the case of a transfer of the Property, shall have assumed in writing (subject to the terms of Section 11.24
hereof) and agreed to comply with all the terms, covenants and conditions set forth in this Agreement and the other Loan Documents pursuant to an assumption agreement in form and substance reasonably satisfactory to Lender, and shall have delivered
to Lender such other documents and deliveries as Lender may 

  

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reasonably require to confirm its security interests pursuant to the Loan Documents, consistent with the documents and deliveries required hereunder,

  
 (C) the transferee will be a Permitted Owner
or be wholly owned, directly or indirectly, by a Permitted Owner, 
  
 (D) if the Property will be managed by an unaffiliated third party property manager that is not an Acceptable Manager, then such property manager must be approved by Lender and Lender must have received a Rating
Confirmation therefor, and 
  
 (E) no Event of
Default will occur as a result of such transaction. 
  
 (2) So long as no Event of Default shall have occurred and be continuing and subject to the other requirements and conditions set forth in this clause (ii) or set forth elsewhere in this Section 6.1 which are not contrary to the rights
afforded by this Section 6.1(i)(ii)(2), Borrower may sell, assign, convey, transfer or otherwise dispose of legal or equitable title to the Property (but not less than all of the Property) to an Affiliate of Borrower in a single transaction if,
after giving effect to the proposed transaction, 
  
 (a) such transaction satisfies the requirements for a Special Transfer, 
  
 (b) the, Property will be owned directly by a Single Purpose Entity, which at the time of such transfer will be in compliance with the
covenants contained in Section 4.1(cc) hereof, and which shall have assumed in writing (subject to the terms of Section 11.24 hereof) and agreed to comply with all the terms, covenants and conditions set forth in this Agreement and the other Loan
Documents pursuant to an assumption agreement in form and substance reasonably satisfactory to Lender, and shall have delivered to Lender such other documents and deliveries as Lender may reasonably require to confirm its security interests pursuant
to the Loan Documents, consistent with the documents and deliveries required hereunder, 
  
 (c) 50% of the partnership interests in such transferee shall be controlled by either Lazard Frères Real Estate Investors, L.L.C.
or by a Person or Persons which control or are under common control with Lazard Frères Real Estate Investors, L.L.C. and 50% of such partnership interests shall be controlled by James A. Thomas, 
  
 (d) if the Property will be managed by an unaffiliated third
party property manager that is not an Acceptable Manager, then such property manager must be approved by Lender and Lender must have received a Rating Confirmation therefor, and 
  
 (e) no Event of Default will occur as a result of such transaction. 
  

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 (3) So long as no Event of Default shall have occurred and be continuing and subject to
the other requirements and conditions set forth in this clause (ii) or set forth elsewhere in this Section 6.1 which are not contrary to the rights afforded by this Section 6.1.(i)(ii)(3), (A) either of the two partners of Borrower which are
indirectly owned by Lazard Frères Real Estate Investors, L.L.C., may, in accordance with the partnership agreement of Borrower, purchase the partnership interests in Borrower which are indirectly controlled by James A. Thomas, and (B) either
of the two partners of Borrower which are indirectly controlled by James A. Thomas may, in accordance with the partnership agreement of Borrower, purchase the partnership interests in Borrower which are indirectly owned by Lazard Frères Real
Estate Investors, L.L.C., provided that as a condition to (i) any such purchase referred to clause (A), such purchase shall have been, if such action occurs prior to Securitization, approved by Lender in its reasonable discretion, (ii) any such
purchase referred to in clause (B), such purchase shall have been, if such purchase occurs prior to Securitization, approved by Lender in its sole discretion, or (iii) any such purchase referred to in clause (A) or (B), if such purchase occurs after
Securitization, such purchase shall have been approved by the Rating Agencies in their sole discretion and Lender shall have received a Rating Confirmation in respect thereof and, in any of the foregoing cases, Borrower shall have complied with any
requirements imposed by Lender or any Rating Agency with respect thereto. 
  
 (4) So long as no Event of Default shall have occurred and be continuing, and subject to the other requirements and conditions set forth in this clause (ii) or set forth elsewhere in this Section 6.1 which are not
contrary to the rights afforded by this Section 6.1(i)(ii)(4), each of the partners of Borrower may assign their respective partnership interests in Borrower to any Person which controls or is under common control with such partner and each of the
other indirect owners of interests in Borrower may assign their respective ownership interest in Borrower if, after giving effect to the proposed transaction, 
  

(a) the Property will be owned directly by a Single Purpose Entity, which at the time of such transfer will be in compliance with the
covenants set forth in Section 4.1(cc) hereof, 
  
 (b) 50% of the partnership interests in Borrower shall be controlled by either Lazard Frères Real Estate Investors, L.L.C. or by a Person or Persons which control or are under common control with Lazard Frères Real Estate
Investors, L.L.C. and 50% of such partnership interests shall be controlled by James A. Thomas, and 
  
 (c) no Event of Default will occur as a result of such transaction. 
  
 Notwithstanding anything to the contrary contained in the foregoing provisions of this Section 6.1(i), in the event of the death of James A.
Thomas, the interests in Borrower then controlled by him may be controlled by a trust or trusts for the benefit of his immediate family members, if the trustee or trustees thereof have been approved by Prometheus Investment 

  

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Holding, LLC in accordance with the provisions of the Equityholders Agreement. Prior to the Defeasance in full of the Loan, the Equityholders Agreement may
not be amended, restated, replaced, supplemented or otherwise modified without the prior approval of Lender, which approval may be withheld in the sole discretion of Lender. 
  
 Prior to any transfer permitted under this Section 6.1(i)(ii), the proposed transferee must deliver to Lender an Officer’s Certificate
stating that: 
  
 (x) such transferee is an
Employee Benefit Plan that is subject to Title I of ERISA or an entity the underlying assets of which constitute “plan assets” within the meaning 29 C.F.R. § 2510.3-101 or a “plan” (a “Plan”) within the
meaning of Section 4975 of the Code and the obligations under this Agreement are not, and the exercise of rights under this Agreement will not, constitute a non-exempt prohibited transaction as a result of such transfer, or 
  
 (y) the transferee is a “governmental plan” (as
defined in Section 3(32) of ERISA), and the obligations under this Agreement, and the exercise of rights under this Agreement, do not and will not violate any applicable state statutes regulating investments by or fiduciary obligations with respect
to governmental plans as a result of such transfer, or 
  
 (z) the proposed transferee is neither an Employee Benefit Plan, a “governmental plan” or a Plan, and (i) such proposed transferee is not subject to state statutes regulating investments by or fiduciary obligations with respect to
“governmental plans” and (ii) the underlying assets of the proposed transferee do not, for purposes of ERISA, constitute “plan assets” of one or more Employee Benefit Plans within the meaning of 29 C.F.R. § 2510.3-101.

  
 As used herein, a “Permitted Owner” shall mean either (I) any
Person listed on Schedule 9 hereto, provided that the transfer to such Person is closed within thirty-six (36) months after the Closing Date (provided, however, that if any such transfer is closed on or after the date which is twenty-four (24)
months after the Closing Date, the Rating Agencies or Lender may in their sole discretion prohibit such transfer if the proposed Permitted Owner shall have suffered a material adverse change since the Closing Date in its business operations,
economic performance, assets or condition (financial or otherwise)) or (II) any other Person that meets all of the following conditions: 
  
 (1) such Person’s long-term unsecured debt, if any, is at least Investment Grade as determined by the applicable Rating Agencies;

  
 (2) Either (i) such Person has a current net
worth of at least $500 million and controls office building real estate equity assets of at least $1 billion, in each case exclusive of the Property (or, in the case of a pension fund adviser, controls at least $1 billion of office building real
estate equity assets, exclusive of the Property), or (ii) such Person is a pension fund, pension trust or pension account that has total assets of at least $500 million (exclusive of the Property), managed by a Person that controls at least $1
billion of office building real estate equity assets (exclusive of the Property); 
  

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 (3) such Person is, or is controlled by, either a pension fund, a pension trust or
pension account, an insurance company, a national money-center bank, or a Person whose long-term unsecured debt, if any, is rated at least Investment Grade by each of the applicable Rating Agencies; and 
  
 (4) the corporate or entity structure of such Person has
been approved by Lender (such approval not to be unreasonably withheld, delayed or conditioned). 
  
 For purposes of this Section 6.1(i), “control” or “controlling” means having (either directly or indirectly) primary responsibility to make or veto all material decisions with respect
to the operation, management and disposition of another Person’s real estate assets (including decisions regarding sales, acquisitions and financings) rather than a beneficial ownership requirement, and without being compromised by the fact
that responsibility for such day-to-day operating and management functions or leasing activities as are ordinarily handled by a property manager has been delegated by such controlling Person pursuant to an agreement in writing. 
  
 Borrower shall pay all reasonable out of pocket expenses (including reasonable
attorneys’ fees and disbursements) incurred by Lender or its agents in connection with any transfer pursuant to this Section 6.1(i), subject to a maximum amount equal to 0.25% of the outstanding principal amount of the Loan at the time of such
transfer. 
  
 (iii) Notice Required. Not
less than ten (10) Business Days prior to the closing of any transaction subject to the provisions of this Section 6.1(i), Borrower shall deliver to Lender (A) an Officer’s Certificate describing the proposed transaction and stating that such
transaction is permitted by this Agreement and the other Loan Documents, together with any documents upon which such Officers Certificate is based, and (B) a legal opinion of counsel to Borrower or the transferee selected by either of them (unless
reasonably disapproved by Lender), which may be based on reasonable assumptions (and, to the extent supported by the facts and law at the time of delivery of such opinion, the assumptions in the opinions delivered in connection with the closing of
the Loan, shall be deemed to be reasonable assumptions for the purposes of the new opinion) and representations and warranties of Borrower, in form and substance consistent with similar opinions then being required by the applicable Rating Agencies,
confirming, among other things, that Borrower’s or the new Borrower’s assets will not be substantively consolidated with the assets of certain owners or controlling Persons of Borrower or new Borrower in a bankruptcy or similar proceeding.

  
 (iv) Sale of Equipment.
Notwithstanding the above provisions of this Section 6.1(i), Borrower may transfer or dispose of Equipment that is either being replaced or that is no longer necessary in connection with the operation of the Property free from the interest of Lender
under this Agreement or any other Loan Document, provided such transfer or disposal (when compared to the non-transfer or non-disposal of such Equipment) will not materially adversely affect the value of the Property, will not materially
impair the utility thereof, will not constitute a bulk transfer under applicable State bulk transfer laws and will not result in a reduction or abatement of, or right of offset against, the rentals or other amounts payable under any material Lease
or any Operating Agreement, in either case as a result thereof, provided that any new Equipment 

  

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acquired by Borrower (and not so disposed of) shall be subject to the interest of Lender under this Agreement and the other Loan Documents unless leased to
Borrower (in which event, Lender shall be made a collateral assignee of Borrower’s interest in such lease to the extent permitted pursuant to the terms of such lease (but, unless expressly subsequently assumed by Lender, Lender shall have no
obligations under Borrower’s interest therein)). 
  
 (v) Pledges to Mezzanine Lender. Notwithstanding the foregoing terms of this Section 6.1(i), the pledge of (a) partnership interests by the Partner Borrowers, (b) the stock of the corporations which are the managing members of the
general partners of Borrower and (c) the membership interests held by the non-managing members of the general partners of Borrower, in each case to the Mezzanine Lender pursuant to a Mezzanine Loan which has been approved in accordance with Section
6.1(h) or to the lender of a Subordinate Mezzanine Loan, and any transfer of such partnership interests, stock or membership interests upon or in lieu of foreclosure in respect of such pledges, and any transfer by such pledgee after either
foreclosure or transfer in lieu of foreclosure, shall not be a default hereunder provided that at all times the lender’s and agent’s interest (including without limitation, all participation interests therein) in the Mezzanine Loan or
Subordinate Mezzanine Loan, as the case may, or such partnership interests, stock and membership interests shall be held directly by a Person meeting the requirements of clause (II) of the definition of Permitted Owner and not violating the
provisions of Section 6.1(i)(ii) relating to ERISA; provided, however, that for purposes of this sentence, subparagraph (2) of such definition shall be deemed to include a Person (i) which has a current net worth of at least $500 million and
controls mortgages on office buildings, which mortgages have a then current outstanding principal balance of at least $600,000,000 and which office buildings have a fair market value of at least $1 billion or (ii) which is listed on Schedule
10 attached hereto and subparagraph (3) of such definition shall be deemed to include any Person which is listed on Schedule 10 attached hereto. 
  
 (vi) Transfer of Limited Partnership Interests. So long as no Event of Default shall have occurred and be continuing and subject to
the other requirements and conditions set forth elsewhere in this Section 6.1 which are not contrary to the rights afforded by this Section 6.1(i)(vi), transfers of limited partnership interests in each of the limited partners of Borrower which in
the aggregate during the term of the Loan do not exceed 49% of the total limited partnership interests in any such limited partner shall be permitted without the consent of Lender; provided, however, that all rights to receive
distributions with respect to Series B Preferred Capital Contributions (as defined on the date hereof in the partnership agreement of Borrower) set forth in Section 5.1(a)(ii) of the partnership agreement of Borrower must be held by, and the
Preferred Equity Holder must be, or must be wholly owned, directly or indirectly by, a Person meeting the requirements of clause (II) of the definition of Permitted Owner and not violating the provisions of Section 6.1(i)(ii) relating to ERISA,
provided, however, that for purposes of this sentence, subparagraph (2) of such definition shall be deemed to include a Person (a) which has a current net worth of at least $500 million and controls mortgages on office buildings, which mortgages
have a then current outstanding principal balance of at least $600,000,000 and which office buildings have a fair market value of at least 

  

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$1 billion and (b) which is listed on Schedule 10 attached hereto and subparagraph (3) of such definition shall be deemed to include any Person is
listed on Schedule 10 attached hereto. Within three Business Days of any such transfer, Borrower shall deliver to Lender true, correct and complete copies of all documents effectuating any such transfer. 
  
 (j) Nonexempt ERISA Transactions. It shall not engage in a nonexempt
prohibited transaction described in Section 406 of ERISA or Section 4975 of the Code, as such sections relate to it, or in any transaction that would cause any obligation or action taken or to be taken hereunder (or the exercise by Lender of any of
its rights under the Notes, this Agreement, the Mortgage or any other Loan Document) to be a non-exempt prohibited transaction under ERISA which results or would reasonably be expected to result in a material liability of Borrower. 
  
 (k) Issuance of Ownership Interests. Other than in connection with a
transaction which has been approved or is otherwise permitted by Section 6.1(i) and is made pursuant to the provisions of Section 6.1(i), it shall not issue or allow to be created any stocks, shares, partnership interests, membership interests or
other ownership interests, as applicable, in Borrower or its general partners or managing member (other than the stocks, shares, partnership interests, membership interests, or other ownership interests which are issued on the Closing Date) or any
security or other instrument which by its terms is convertible into or exercisable or exchangeable for ownership interests in Borrower. 
  
 (l) Change of Principal Place of Business. It shall not change its principal place of business without giving Lender at least thirty (30)
days’ prior written notice and promptly providing Lender with such information as Lender may reasonably require in connection therewith. 
  
 (m) Amendment of Partnership Agreement. The provisions of the partnership agreement of Borrower relating to the payment of distributions with
respect to Series B Preferred Capital Contributions (as defined on the date hereof in the partnership agreement of Borrower) to the Preferred Equity Holder and the remedies available to the Preferred Equity Holder in the event any such payment is
not made, shall not be amended, supplemented or otherwise modified in any way without the prior consent of Lender and the Rating Agencies, which consent may be withheld in their sole discretion. 
  
 VII. ALTERATIONS AND EXPANSIONS; LEASING 
  
 Section 7.1 Alterations and Expansion. Borrower will not make or
permit any demolition, alteration, installation or improvement (including in connection with its compliance with any Legal Requirement) to the Property or any part thereof (an “Alteration”) or expand or reduce the Property or the
Improvements thereon (an “Expansion”), except in accordance with the following terms and conditions (except that it need only comply with the provisions of clauses (a), the first sentence of (c), and (d) below with respect to those
improvements required to be made by it pursuant to Section 5.1(a) hereof): 
  
 (a) Such Alteration or Expansion shall be undertaken in accordance with the applicable provisions of this Agreement, the other Loan Documents, the Operating Agreements and the Leases and Legal Requirements.

  

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 (b) No Event of Default shall have occurred and be continuing (except in the case of an Alteration that
is required to cure an Event of Default or to comply with Borrower’s obligations under Leases) or shall occur as a result of such action. 
  
 (c) All work done in connection with any Alteration or Expansion shall be performed with due diligence in a good and workmanlike manner, all materials
used in connection with any Alteration or Expansion shall be not less than the standard of quality of the materials generally used at the Property as of the date hereof (or, if greater, the then-current customary quality in the Philadelphia,
Pennsylvania area) and all work shall be performed and all materials used in accordance with all applicable Legal Requirements and Insurance Requirements. If at any time during any Alteration or Expansion Borrower decides, in its sole discretion,
not to complete such Alteration or Expansion, Borrower agrees that it will thereafter use commercially reasonable efforts to restore the affected portion of the Property to at least the level of utility and value that existed as of the commencement
of such Alteration or Expansion. 
  
 (d) The cost of any
Alteration or Expansion shall be promptly and fully paid for by Borrower or the Tenant or subtenant performing the Alteration or Expansion (subject to Borrower’s right to contest in accordance with Section 5.1(b)(ii) hereof). 
  
 (e) The Alteration or Expansion will not, either during the Alteration or
Expansion or upon completion and any related lease-up (such period, from commencement of the Alteration or Expansion through such lease-up, being referred to herein as the “Alteration Period”), have a Material Adverse Effect.

  
 (f) The Alteration or Expansion will not entitle any party to
a Material Agreement to terminate such Material Agreement or otherwise give rise to any other rights of such parties (such as the right to terminate an operating covenant) that could have a Material Adverse Effect unless, in each case, the Lender
consents thereto and Rating Confirmations are obtained in connection therewith. 
  
 (g) In case of a Material Alteration or Material Expansion: 
  
 (i) Borrower shall have delivered to Lender (x) a Credit Facility or (y) Eligible Collateral in an amount equal to at least the total
remaining unpaid costs of such Material Alteration or Material Expansion (as estimated by Borrower and concurred to by the Independent Architect in its reasonable good faith judgment) which Credit Facility and/or Eligible Collateral shall be held by
Lender as security for the Debt and released to Borrower as such work progresses in accordance with Section 7.1(g)(iii); provided, however, in the event that any Material Alteration or Material Expansion shall be made in conjunction
with any Restoration with respect to which Borrower shall be entitled to withdraw Proceeds pursuant to Section 8.1.2(b) hereof (including any Proceeds remaining after completion of such Restoration), the amount of the Credit Facility or Eligible
Collateral to be furnished pursuant hereto need not exceed the aggregate cost of 

  

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such Restoration and such Material Alteration or Material Expansion (in either case, as estimated by the Independent Architect) less the sum of the amount of
any Proceeds which Borrower is entitled to withdraw pursuant to Section 8.1.2(b) hereof, 
  
 (ii) At the commencement of construction of such Material Alteration or Material Expansion, Borrower shall deliver to Lender a schedule
(which shall be concurred to by the Independent Architect in its reasonable good faith judgment) setting forth the anticipated stages of completion of such Material Alteration or Material Expansion and, in each case, the corresponding amounts
expected to be due and payable by or on behalf of Borrower in connection with such completion, such schedule to be updated quarterly by Borrower (and concurred with by an Independent Architect in its reasonable good faith judgment) during the term
of such Material Alteration or Material Expansion; 
  
 (iii) Any Eligible Collateral that Borrower delivers to Lender pursuant hereto (and the proceeds of any such Eligible Collateral or of any Credit Facility) shall be invested by Lender in Permitted Investments for a period of time consistent
with the date on which Borrower notifies Lender that Borrower expects to request a release of such Eligible Collateral or Credit Facility in accordance with the next succeeding sentence. From time to time as the Material Alteration or Material
Expansion progresses, the amount of any Eligible Collateral so furnished may, upon the written request of Borrower to Lender, be withdrawn by Borrower and paid or otherwise applied by or returned to Borrower in an amount equal to the amount Borrower
would be entitled to so withdraw if Section 8.1.2(e) hereof were applicable, and any Credit Facility so furnished may be reduced by Borrower in an amount equal to the amount of the reduction to which Borrower would be entitled to if Section 8.1.2(e)
hereof were applicable, subject, in each case, to the satisfaction of the conditions precedent to withdrawal of funds or reduction of the Credit Facility set forth in clause (i) of Section 8.1.2(e). In connection with the above-described quarterly
update of the anticipated stages of completion of the Material Alteration or Material Expansion (as concurred with by an independent Architect in its reasonable good faith judgment), Borrower shall increase (or be permitted to decrease, as
applicable) the Credit Facility and/or Eligible Collateral then deposited with Lender, as necessary to comply with clause (g)(i) above in accordance with clause (g)(v) below; 
  
 (iv) At any time after Final Completion of any Material Alteration or Material Expansion in respect of which
a Credit Facility or Eligible Collateral was deposited pursuant hereto, the whole balance of any Eligible Collateral which constitutes Cash and then remaining on deposit may be requested to be withdrawn by Borrower shall be paid by Lender to
Borrower, and any Credit Facility or other Eligible Collateral so deposited shall, to the extent it has not been called upon, reduced or theretofore released, be released by Lender to Borrower, in each case within ten (10) days after receipt by
Lender of an application for such withdrawal and/or release together with an Officer’s Certificate, and as to the following clauses (A) and (B) of this clause also a certificate of the Independent Architect, setting forth in substance as
follows: 
  
 (A) that the Material Alteration or
Material Expansion in respect of which such Eligible Collateral or Credit Facility was deposited has been 

  

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completed substantially in accordance with any plans and specifications therefor (and amendments thereto) previously filed with Lender under Section
7.1(g)(vii) hereof, 
  
 (B) that to the knowledge
of the certifying Person (such certification to be given on a form AIA certification if available in the applicable jurisdiction), (x) such Material Alteration or Material Expansion has been completed substantially in compliance with all Legal
Requirements, and (y) to the extent required for the legal use or occupancy of the portion of the Property affected by such Material Alteration or Material Expansion, Borrower has obtained a temporary or permanent certificate of occupancy (or
similar certificate) or, if no such certificate is required, a statement to that effect from such Person; 
  
 (C) that to the knowledge of the certifying Person, all amounts that Borrower is or may become liable to pay in respect of such Material
Alteration or Material Expansion have been paid in full or adequately provided for and, to the extent that such are customary and reasonably obtainable by prudent property owners in the area where the Property is located, that Lien waivers and
releases have been obtained from the general contractor and major subcontractors performing such Material Alteration or Material Expansion or at its sole cost and expense, Borrower shall cause a nationally recognized and reputable title insurance
company to deliver to Lender an endorsement to each Qualified Title Insurance Policy for the Property, updating such policy without further exceptions to such policy other than Permitted Encumbrances, or shall, at its sole cost and expense, cause a
nationally recognized and reputable title insurance company to deliver a lender’s title insurance policy, in such form, in such amounts and with such endorsements as the Qualified Title Insurance Policy or Policies, which policy shall be dated
any date after Final Completion of the Material Alteration or Material Expansion and shall contain no exceptions other than Permitted Encumbrances; provided, however, that if, for any reason, Borrower is unable to deliver the certification
required by this clause (C) with respect to any costs or expenses relating to the Material Alteration or Material Expansion, then, assuming Borrower is able to satisfy each of the other requirements set forth in clauses (A) and (B) above, Borrower
shall be entitled to the release of the difference between the whole balance of such Credit Facility and Eligible Collateral and the total of all costs and expenses to which Borrower is unable to certify; and 
  
 (D) that to the knowledge of the certifying Person, no Event
of Default has occurred and is continuing; 
  
 (v) (A) if the
amount of any Eligible Collateral and/or Credit Facility that Borrower previously provided to Lender pursuant to clause (g)(i) above either exceeds or is less than the minimum amount required for compliance with clause (g)(i) above, then, as
applicable, Lender shall, upon the written request of Borrower and so long as no Event of Default has occurred and is continuing, return all such excess Eligible Collateral and/or Borrower shall be entitled to release all such excess amounts from
the 

  

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Credit Facility or Borrower shall be required to deliver additional Eligible Collateral and/or Credit Facility, 
  
 (B) consistent with clause (A) above, so long as no Event of
Default has occurred and is continuing, Lender shall, upon written request from Borrower, return to Borrower all Eligible Collateral and any Credit Facility delivered to Lender pursuant to clause (g)(i) above, and Borrower’s obligations to
provide security with respect to such Material Alteration or Material Expansion shall end, at such time as the Material Alteration or Material Expansion reaches Final Completion; 
  
 (vi) (A) So long as no Event of Default has occurred and is continuing Borrower shall be entitled, upon ten (10) days’
notice to Lender but no more frequently than once per month, to receive any interest or income earned in respect of such Eligible Collateral; 
  
 (B) Lender shall execute and deliver to Borrower such instruments and agreements as are reasonably requested of it by Borrower, at
Borrower’s expense, in order to consummate any Material Alteration or Material Expansion permitted hereby; and 
  
 (C) if Lender shall have notified Borrower that any letter of credit held by Lender in connection with any Material Alteration or Material
Expansion no longer qualifies as a Credit Facility, Lender may draw upon such letter of credit no earlier than thirty (30) days after such notification unless, within such 30-day period, Borrower has replaced such letter of credit with a Credit
Facility. If Lender draws upon any such letter of credit, the proceeds thereof shall be administered as if Borrower had originally deposited such proceeds with Lender in Cash, rather than having delivered the letter of credit in question;

  
 (D) Such Material Alteration or Material
Expansion shall be conducted under the supervision of an Independent Architect and shall not be undertaken until ten (10) Business Days after there shall have been delivered to Lender detailed plans and specifications and cost estimates therefor,
prepared and reviewed by such Independent Architect; such plans and specifications may be revised at any time and from time to time, provided that material revisions of such plans and specifications are delivered to Lender prior to
undertaking any work described in such revisions; and 
  
 (vii) No
payment made prior to the Final Completion of such Material Alteration or Material Expansion to any contractor, subcontractor, materialman, supplier, engineer, architect, project manager or other Person who renders services or furnishes materials in
connection with such Material Alteration or Material Expansion shall exceed ninety-five percent (95%) of the value of the work performed from time to time and materials furnished and incorporated into the Improvements. 
  

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 (h) Borrower shall permit Lender, the Independent Architect, and Lender’s agents and representatives
(including Servicer, Special Servicer, Lender’s engineer, architect or inspector) to enter onto the Property during normal business hours after reasonable notice considering the circumstances (subject to the rights of Tenants under the Leases)
to inspect the progress of any work being performed by or on behalf of Borrower, including any Alterations or Expansions, and all materials being used in connection therewith, to examine all plans and shop drawings relating thereto and, following an
Event of Default and during the continuance thereof, to undertake and complete any work required to be undertaken in accordance with the terms hereof Borrower shall cause all contractors and subcontractors to cooperate with Lender or Lender’s
representatives or such other persons described above in connection with inspections described in this Section 7.1(h) or the undertaking or completion of work pursuant to this Section 7.1(h). 
  
 (i) Borrower shall collaterally assign to Lender, as additional security for
the Loan, all rights and claims Borrower may have against all Persons supplying labor or materials in connection with any Alterations or Expansions; provided, however, Lender may not pursue any such right or claim unless an Event of
Default has occurred and remains uncured. 
  
 Section 7.2
Leasing. 
  
 (a) Borrower shall have the right, without the
prior written consent of Lender to, enter into a new individual Lease or a Lease renewal affecting less than 75,000 rentable square feet of the Property, and thereafter to modify or amend the same, in each case without the consent of Lender but
subject to the provisions of clauses (b) and (c) below. Borrower shall have the right, without the prior written consent of Lender, to terminate an individual Lease affecting less than 75,000 rentable square feet of the Property; provided
that, in the aggregate over any six (6) month period, individual Leases affecting 125,000 rentable square feet or more may not be terminated without Lender’s prior written consent and provided that such termination is on
commercially reasonable terms and shall not materially adversely affect the value of the Property. Borrower shall not, without the prior written consent of Lender, enter into a new individual Lease or a Lease renewal (other than a renewal it is
obligated to enter into pursuant to the existing Lease) or terminate any individual Lease after the date hereof affecting 75,000 or more rentable square feet of the Property. 
  
 (b) All new Leases entered into from and after the date hereof shall be on the Lease Form approved by Lender pursuant to
Section 3.1(v), without any changes to such Lease Form which would be materially adverse to Lender, shall be the result of arm’s-length negotiations, shall in the aggregate (taking into account all terms of such Lease, such as rent concessions,
landlord’s obligations on Tenant Improvements and other economic benefits or concessions) provide for “market” rental rates and other market terms and shall not contain any additional terms which would materially adversely affect
Lender’s rights under the Loan Documents (provided that the rent payable under a new Lease may be below market rate if (x) the lessee is a managing and/or leasing agent for Borrower and the space leased under the new Lease is to be used
solely in connection with the managing and leasing of the Property and is of a size reasonably required for an office for such agent for such purposes, or (y) the rents from the space leased under the new Lease were, immediately prior to the entry
into that Lease, below market rate, such new Lease was given in exchange for the surrender of the prior Lease 

  

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and the below market discount reflected in such new Lease is not more than the below market discount of the Lease being surrendered); all future Leases shall
provide that they are subordinate to the Mortgage and that the lessee agrees to attorn to Lender at Lender’s request and may, in the case of the Leases described in clause (e) below, make subordination conditioned upon the granting of
non-disturbance rights acceptable to Lender. 
  
 (c) Borrower (i)
shall observe and perform the obligations imposed upon the lessor under the Leases in a commercially reasonable manner; (ii) shall enforce the material terms, covenants and conditions contained in the Leases upon the part of the lessee thereunder to
be observed or performed in a commercially reasonable manner; (iii) shall not collect any of the rents more than one (1) month in advance (other than Security Deposits); (iv) shall not execute any assignment of lessor’s interest in the Leases
or the Rents (except for the Assignment of Leases); (v) shall not alter, modify or change the terms of the Leases in a manner which shall materially adversely effect Lender’s rights or remedies under the Loan Documents; and (vi) subject to the
provisions of Section 5.1(n), shall execute and deliver at the request of Lender all such further assurances, confirmations and assignments in connection with the Leases as Lender shall from time to time reasonably require. 
  
 (d) With respect to Leases affecting 75,000 or more rentable square feet of
the Property, Borrower may, at its discretion, submit for Lender’s approval (which shall not be unreasonably withheld, conditioned or delayed) leasing guidelines (the “Leasing Guidelines”) (provided that in all events
Leasing Guidelines shall expire not later than one year after their initial approval). Subject to clause (b) above, any such Lease, which conforms in all material respects with approved Leasing Guidelines and the approved Lease Form will not be
subject to Lender’s prior written consent. Any Lease submitted to Lender for Lender’s approval, which shall be accompanied by (x) an Officer’s Certificate on behalf of Borrower stating that said Lease complies in all respects with the
requirements of clause (b) above and (y) a summary of the material terms of such Lease (including the economic terms and any termination options), shall be deemed approved if Lender shall have not notified Borrower in writing of its disapproval
(together with a statement of the grounds of such disapproval) within three Business Days after Borrower has given Lender written notice that at least three (3) Business Days have elapsed since such submission). 
  
 (e) Lender shall enter into, execute and deliver a nondisturbance and
attornment agreement, in form and substance acceptable to Lender in its reasonable discretion, among Lender and any Tenant under a Lease which is permitted under or which has been approved (or deemed to have been approved) in accordance with the
terms of this Agreement and which (i) with respect to a Lease of retail space, affects 1,000 square feet or more of rentable space in the Property or (ii) with respect to all other Leases, affects 14,000 or more rentable square feet of the Property,
provided that, in each such case, such Tenant also executes and delivers such agreement in favor of Lender. 
  
 (f) Borrower shall be entitled to retain (i) any termination payment paid by former tenants Clark, Ladner, Fortenbaugh and Young or LeShoppe, Inc. or (ii)
any other payment, fee or penalty (“Termination Fee”) paid by a Tenant in connection with the exercise of an express cancellation or termination clause provided in such Lease, if and only if at the time of such cancellation or
termination, the Net Operating Income for the Property (exclusive of the 

  

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then applicable Above Market IBM Rent Component) for the most recent trailing 12-month period for which Borrower has furnished the statements required by
Section 5.1(j)(iii)(B) (excluding any Net Operating Income received during such period in respect of the Lease being canceled or terminated) is $7,500,000 or more. In all other circumstances not covered by the first sentence of this clause (f), and
provided that no Default or Event of Default has occurred and is continuing, any Termination Fee shall be deposited in the Deposit Account within two (2) Business Days of receipt thereof and shall be applied, on the next Payment Date, in the
following order of priority: (i) to the funding of the Tax and Insurance Escrow Account to the extent required to cause such account to be in the amount required under Section 9.3; (ii) to the payment of the Monthly Debt Service Payment Amount;
(iii) to the funding of the Leasing Reserve Account to the extent required to cause such account to be in the amount required under Section 9.4; (iv) to the funding of the Capital Reserve Account to the extent required to cause such account to be in
the amount required under Section 9.4; and (v) to the funding of the Low Debt Service Reserve Account to the extent required under Section 9.4. After payment of the foregoing items, all remaining funds shall be deposited in a separate Eligible
Account in which Lender is hereby granted a security interest (the “Termination Payment Account”), which funds are only to be released from such account (a) to reimburse Borrower for the capital costs and expenses required to lease
that portion of the Improvements affected by such cancellation or termination, such reimbursement to be made in the manner provided by, and in accordance with, the provisions of Section 9.2.2 relating to Leasing Commissions and Tenant Improvement
costs (and for so long as there are funds in the Termination Payment Account, funds in the Leasing Reserve Account shall not be available for the reimbursement of such capital costs and expenses) or (b) to Borrower if Borrower delivers to Lender
evidence satisfactory to Lender that the premises which were affected by such cancellation or termination have been fully relet to a tenant and that Borrower has no obligation whatsoever to pay for or perform any tenant improvement work in
connection with such reletting; provided that the foregoing provisions shall not apply if a Default or an Event of Default has occurred and is continuing. 
  
 (g) Borrower acknowledges that, because an Affiliate of Borrower owns the property which is immediately adjacent to the
Property (the “Adjacent Property”), Borrower may have the opportunity to direct potential tenants to the Property or to the Adjacent Property. Recognizing such conflict of interest, and recognizing that it is in the best interest of Lender
for the Property to be occupied fully, Borrower agrees that it will at all times conduct its leasing activities in a manner which is commercially fair and reasonable to the Property. 
  
 (h) On or before April 15, 1998, Borrower shall deliver to Lender Subordination, Nondisturbance and Attornment Agreements in
substantially the same form as the Subordination and Attornment Agreements granted by The Mitsubishi Trust and Banking Corporation, or such other form as may be reasonably Acceptable to Lender, executed by each Tenant set forth on Schedule 3.

  

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 VIII. CASUALTY AND CONDEMNATION 
  
 Section 8.1 Insurance Casualty and Condemnation. 
  
 8.1.1 Insurance. (a) Borrower, at its sole cost and expense, for the mutual benefit of Borrower and Lender, shall
keep the Property insured and obtain and maintain policies of insurance insuring against loss or damage by standard perils included within the classification “All Risks of Physical Loss”, including earthquake damage to the extent
commercially available at reasonable rates if it is customarily obtained for similar properties in the vicinity. Such insurance (i) shall be in an amount equal to the then full replacement cost of the improvements and the Equipment (without
deduction for physical depreciation), and (ii) shall have deductibles no greater in the aggregate than the greater of (x) five percent (5%) of Net Operating Income for the Property (inclusive of the then applicable Above Market IBM Rent Component)
for the twelve (12) month period immediately preceding the Closing Date and (y) $100,000. The policies of insurance carried in accordance with this paragraph shall be paid annually in advance and shall contain a “Replacement Cost
Endorsement” with a waiver of depreciation. 
  
 (b) Borrower,
at its sole cost and expense, for the mutual benefit of Borrower and Lender, shall also obtain and maintain during the Term the following policies of insurance: 
  
 (i) Flood insurance if any part of the Property is located in an area identified by the Federal Emergency
Management Agency as an area federally designated a “100 year flood plain” and (A) flood insurance is generally available at commercially reasonable premiums and in such amount as generally required by institutional lenders for similar
properties or (B) if not so available from a private carrier, from the federal government at commercially reasonable premiums to the extent available. In either case, the flood insurance shall be in an amount at least equal to Loan or the maximum
limit of coverage available with respect to the Property under said program, whichever is less; 
  
 (ii) Comprehensive general liability insurance, including broad form property damage, blanket contractual and personal injuries (including
death resulting therefrom) coverages and containing minimum limits per occurrence of $1,000,000 and in the aggregate of $2,000,000 for any policy year. In addition, at least $20,000,000 excess and/or umbrella liability insurance shall be obtained
and, at all times, at least $10,000,000 excess and/or umbrella liability insurance shall be available (such that, at a times, such coverage shall be maintained against which no claim shall have been asserted) and maintained for any and all claims,
including all legal liability imposed upon Borrower and all related court costs and attorneys’ fees. 
  
 (iii) Rental loss and/or business interruption insurance in an amount sufficient to avoid any co-insurance penalty and equal to the
greater of (A) the estimated gross revenues from the operations of the Property (including (x) the total payable under the Leases and (y) the total amount of all other amounts to be received by Borrower or third parties that are the legal obligation
of the Tenants) for a period of at least two (2) succeeding years or (B) the anticipated Operating Expenses (including debt service) for the maintenance and operation of the Property for a period of at least the next succeeding two (2) years.
Subject to the provisions of Section 8.1.1(d), the amount of 

  

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such insurance shall be adjusted from time to time during the Term as and when the foregoing amounts (or the estimates thereof) increase or decrease;

  
 (iv) Insurance against loss or damage from
(A) leakage of sprinkler systems and (B) explosion of steam boilers, air conditioning equipment, high pressure piping, machinery and equipment, pressure vessels or similar apparatus now or hereafter installed in the Improvements (without exclusion
for explosions) and insurance against loss of occupancy or use arising from any breakdown, in such amounts as are generally available at commercially reasonable premiums and are generally required by institutional lenders for properties comparable
to the Property; 
  
 (v) Worker’s
compensation insurance with respect to any employees of Borrower, as and to the extent required by any Governmental Authority or Legal Requirement; 
  
 (vi) During any period of repair or restoration, builder’s “all risk” insurance in an amount equal to not less than the
full insurable value of the Property against such risks (including fire and extended coverage and collapse of the Improvements to agreed limits) as are customarily obtained for such work by prudent owners in the locality where the Property is
located; 
  
 (vii) Coverage to compensate for the
cost of demolition and the increased cost of construction for the Property in an amount reasonably satisfactory to Lender, and 
  
 (viii) Such other insurance as may from time to time be reasonably required by Lender in order to protect its interests. 
  
 (c) All policies of insurance (the “Policies”) required
pursuant to this Section 8.1.1(i) shall be issued by companies approved by Lender and licensed to do business in the Commonwealth of Pennsylvania, and unless otherwise approved by Lender and the applicable Rating Agencies in writing, shall have a
claims paying ability rating of “AA” or better by the applicable Rating Agencies, provided that, for so long as United States Fidelity and Guaranty Corp. (“USF&G”), American Protection Insurance Company
or The Travellers Indemnity Company has a claims paying ability rating of not less than its rating as of the Closing Date, USF&G, American Protection Insurance Company and The Travellers Indemnity Company shall each be deemed an approved company
pursuant to this clause (i); (ii) shall name Lender and its successors and/or assigns as their interest may appear as an additional insured and as a loss payee (except that in the case of general liability insurance, Lender shall be named an
additional insured and not a loss payee); (iii) shall contain a non-contributory standard lender clause and, except with respect to general liability insurance and worker’s compensation insurance, a Lender’s Loss Payable Endorsement, or
their equivalents, and a separate endorsement naming Lender as the person to which all payments made by such insurance company shall be paid; (iv) shall include effective waivers by the insurer of all claims for insurance premiums against all loss
payees, additional insureds and named insured (other than Borrower) and all rights of subrogation against any loss payee, additional insured or named insured; (v) subject to the provisions of Section 8.1.1(a), shall be subject to a deductible, if
any, 

  

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not greater in any material respect, in proportion to the coverage maintained, than the deductible for such coverage on the date hereof; (vi) shall contain
such provisions as Lender deems reasonably necessary or desirable to protect its interest including endorsements providing that neither Borrower, Lender nor any other party shall be a co-insurer under said Policies and that no modification,
reduction, cancellation or termination in amount of, or material change (other than an increase) in, coverage of any of the Policies shall be effective until at least thirty (30) days after receipt by each named insured, additional insured and loss
payee of written notice thereof, (vii) shall permit Lender to pay the premiums and continue any insurance upon failure of Borrower to pay premiums when due, upon the insolvency of Borrower or through foreclosure or other transfer of title to the
Property (it being understood that Borrower’s rights to coverage under such policies may not be assignable without the consent of the insurer); and (viii) shall provide that the insurance shall not be impaired or invalidated by virtue of (A)
any act, failure to act, negligence of, or violation of declarations, warranties or conditions contained in such policy by, Borrower, Lender or any other named insured, additional insured or loss payee, except for the willful misconduct of Lender
knowingly in violation of the conditions of such policy, (B) the occupation, use, operation or maintenance of the Property for purposes more hazardous than permitted by the terms of the Policy, (C) any foreclosure or other proceeding or notice of
sale relating to the Improvements or the Equipment or (D) any change in the possession of the Improvements or Equipment without a change in the identity of the holder of actual title to such Improvements or Equipment (provided that with
respect to items (C) and (D), any notice requirements of the applicable Policies are satisfied). 
  
 (d) Insurance Premiums; Certificates of Insurance. 
  
 (i) Borrower shall pay (or cause to be paid) the premiums for such Policies (the “Insurance Premiums”) as the same become
due and payable and shall furnish to Lender the receipts for the payment of the Insurance Premiums or other evidence of such payment reasonably satisfactory to Lender (provided, however, that Borrower is not required to furnish such
evidence of payment to Lender if such Insurance Premiums are to be paid by Lender pursuant to the terms of this Agreement). Within thirty (30) days after request by Lender, but not more frequently than once annually, Borrower shall obtain such
increases in the amounts of coverage required hereunder as may be reasonably requested by Lender, taking into consideration changes in liability and/or laws, changes in prudent customs and practices. In the event Borrower satisfies the requirements
under this Section 8.1.1 through the use of a Policy covering other properties, then (unless such policy is provided in substantially the same manner as it is as of the date hereof), Borrower shall provide evidence reasonably satisfactory to Lender
that the Insurance Premiums for the Property is separately allocated under such Policy to the Property and that payment of such allocated amount shall maintain the effectiveness of such Policy as to the Property notwithstanding the failure of
payment of any other portion of premiums. If no such allocation is available, Lender shall have the right to increase the Tax and Insurance Escrow in an amount sufficient to purchase a non-blanket Policy covering only the Property from insurance
companies which qualify under this Agreement. 
  
 (ii) Borrower shall deliver to Lender on or prior to the Closing Date certificates setting forth in reasonable detail the material terms (including any applicable 

  

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notice requirements) of all Policies from the respective insurance companies (or their authorized agents) that issued the Policies, including that such
Policies may not be canceled, modified, reduced or terminated without thirty (30) days’ prior notice to Lender and stating that all premiums then due thereon have been paid to the applicable insurers for the current period and that the same are
in full force and effect. Borrower shall deliver to Lender, concurrently with each material change in any Policy, a certificate with respect to such changed Policy certified by the insurance company issuing that Policy, in substantially the same
form and containing substantially the same information as the certificates required to be delivered by Borrower pursuant to the first sentence of this clause (d)(ii) and stating that all premiums then due thereon have been paid to the applicable
insurers and that the same are in full force and effect (or if such certificate and report shall not be obtainable by Borrower, Borrower may deliver an Officer’s Certificate to such effect in lieu thereof). 
  
 (e) Renewal and Replacement of Policies. 
  
 (i) Not less than fifteen (15) days prior to the expiration,
termination or cancellation of any Policy, Borrower shall renew such policy or obtain a replacement policy or policies (or a binding commitment for such replacement policy or policies), which shall be effective no later than the date of the
expiration, termination or cancellation of the previous policy, and shall deliver to Lender a certificate in respect of such policy or policies (A) containing the same information as the certificates required to be delivered by Borrower pursuant to
clause (d)(ii) above, or a copy of the binding commitment for such policy or policies and (B) confirming that such policy complies with all requirements hereof. 
  
 (ii) If Borrower does not furnish to Lender the certificates as required under clause (e)(i), Lender may
procure, but shall not be obligated to procure, such replacement policy or policies and pay the Insurance Premiums therefor, and Borrower agrees to reimburse Lender for the cost of such Insurance Premiums promptly on demand. 
  
 (iii) Concurrently with the delivery of each replacement
policy or a binding commitment for the same pursuant to this clause (e), Borrower shall deliver to Lender a report from a reputable and experienced insurance broker or from the insurer, setting forth the particulars as to all insurance obtained by
Borrower pursuant to this Section 8.1.1 and then in effect and stating that all Insurance Premiums then due thereon have been paid in full to the applicable insurers, that such insurance policies are in full force and effect and that, in the opinion
of such insurance broker or insurer, such insurance otherwise complies in all material respects with the requirements of this Section 8.1.1 (or if such report shall not be available after Borrower shall have used its reasonable efforts to provide
the same, Borrower will deliver to Lender an Officer’s Certificate containing the information to be provided in such report). 
  
 (f) Separate Insurance. Borrower will not take out separate insurance concurrent in form or contributing in the event of loss with that required to
be maintained pursuant to this Section 8.1.1 unless such insurance complies with clause (c) above. 
  

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 (g) Securitization. In the event of a Securitization, Borrower shall name any trustee, Servicer or
Special Servicer designated by Lender as a loss payee, and any trustee, Servicer and Special Servicer as additional insureds, with respect to any Policy for which Lender is to be so named hereunder. 
  
 8.1.2 Casualty; Application of Proceeds. 
  
 (a) Right to Adjust. 
  
 (i) If the Property is damaged or destroyed, in whole or in
part, by fire or other casualty (a “Casualty”), Borrower shall (except to the extent such damage or destruction is in a de minimis amount) give prompt written notice thereof to Lender, generally describing the nature and extent of
such Casualty. Following the occurrence of a Casualty, Borrower, regardless of whether proceeds are available, shall in a reasonably prompt manner proceed to restore, repair, replace, or rebuild the Property to the extent practicable to be of at
least equal value and of substantially the same character as prior to the Casualty, all in accordance with the terms hereof applicable to Alterations. 
  
 (ii) Subject to clause (iv) below, in the event of any Casualty, Borrower may settle and adjust any claim with respect thereto;
provided that such adjustment is carried out in a competent and timely manner. In such case, Borrower is hereby authorized to collect and receipt for Lender any Proceeds. 
  
 (iii) All Proceeds shall be due and payable solely to Lender and held and applied in accordance with the
terms hereof or, if paid to Borrower, shall be held in trust by Borrower for the benefit of Lender and shall be paid over to Lender by Borrower within one Business Day of receipt. 
  
 (iv) Lender shall have the sole authority to adjust any claim with respect to a Casualty and to collect all
Proceeds if an Event of Default shall have occurred and is continuing. 
  
 (b) Borrower’s Right to Apply to Restoration or Repayment. In the event of a Casualty or Condemnation where the loss is in an aggregate amount less than thirty percent (30%) of the original principal amount of the Loan, where
access to the Improvements is not materially adversely affected by such Casualty or Condemnation and where Lender has received evidence satisfactory to it that no individual Lease affecting 150,000 rentable square feet or more, and no Leases in the
aggregate affecting 150,000 rentable square feet or more, will be terminated or canceled as a result of such Casualty or Condemnation (a “Minor Loss”), Lender shall permit the application of the Proceeds to pay, or to reimburse
Borrower, at the option of Borrower, for the cost of restoring, repairing, replacing or rebuilding the Property (the “Restoration”), in the manner required hereby, provided and on the condition that, no Event of Default shall
have occurred and be then continuing and, in the reasonable judgment of Lender exercised in good faith: 
  
 (i) the Property can be restored to an economic unit not less valuable and not less useful than the same was prior to the Casualty or
Condemnation, 
  

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 (ii) the Restoration can be completed by the earliest to occur of: 
  
 (A) the 365th day after the Casualty or Condemnation or,
with Rating Confirmation, such longer period as may reasonably be required, 
  
 (B) the 180th day prior to the Stated Maturity Date with respect to the Tranche A Note, and 
  
 (C) with respect to a Casualty only, the expiration of the payment period on the rental-loss insurance coverage in respect of such
Casualty, and 
  
 (iii) during the period of the
Restoration, the sum of (A) income derived from the Property, plus (B) proceeds of rent loss insurance or business interruption insurance, if any, payable, plus (C) any Cash deposited with, or any Credit Facility made available to, Lender (which
Credit Facility shall be in form and substance, and the issuer thereof shall be, reasonably satisfactory to Lender), will equal or exceed one hundred five percent (105%) of the sum of (1) Operating Expenses and (2) the Debt Service. 
  
 If any of the conditions so forth in the proviso in this clause (b) is not satisfied, then,
notwithstanding anything herein to the contrary, unless Lender shall otherwise elect, at its sole option, the Proceeds shall be applied to the prepayment of the Loan in accordance with the terms of Section 8.1.2(d). 
  
 (c) Lender’s Right to Apply to Repayment. In the event of a
Casualty or Condemnation which is not a Minor Loss (a “Material Casualty” or “Material Condemnation”, as applicable), then Lender shall have the option (to be exercised by notice to Borrower given not later than the
thirtieth (30th) day after the receipt of the Proceeds) to apply the net Proceeds to the prepayment of the Debt in accordance with Section 8.1.2(d) or to reimburse Borrower for the cost of any Restoration in the manner set forth below in Section
8.1.2(e) (and Lender shall be deemed to have elected prepayment if it shall fail to have given such notice within said 30-day period). 
  
 (d) Application of Prepayment. Any application of Proceeds to the Debt pursuant to Section 8.1.2(b) or (c) shall be without any prepayment premium
or penalty except that if an Event of Default has occurred and is continuing, then Borrower shall pay to Lender an additional amount equal to the Yield Maintenance Payments, if any, that would be required in respect of the principal being prepaid
assuming Section 2.3.3 hereof were applicable. Any such application to the Debt shall be applied to those payments of principal and interest last due under the Notes and shall not postpone or reduce any payments otherwise required pursuant to the
Notes other than such last due payments. 
  
 (e) Manner of
Restoration and Reimbursement. If Borrower is entitled pursuant to Section 8.1.2(b) or (c) to reimbursement out of Proceeds (and the conditions specified therein shall have been satisfied), such Proceeds shall be disbursed from time to time upon
Lender being furnished with (i) such architect’s certificates, waivers of lien for the cost of work previously paid for with a prior disbursement, contractor’s sworn statements, title insurance endorsements, bonds, plats of survey and such
other evidences of cost, payment and performance as are 

  

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customary and reasonably obtainable by prudent property owners in the locality in which the Property is located and as Lender may reasonably require and
approve, and (ii) all plans and specifications for such Restoration, such plans and specifications to be approved by Lender prior to commencement of any work (such approval not to be unreasonably withheld, conditioned or delayed). In addition, no
payment made prior to the Final Completion of the Restoration shall exceed ninety-five percent (95%) of the value of the work performed from time to time; funds deposited by Borrower with Lender for any deficiency shall be disbursed prior to
disbursement of such Proceeds; and at all times, the undisbursed balance of such Proceeds remaining in the hands of Lender, together with funds deposited for that purpose or irrevocably committed to the satisfaction of Lender by or on behalf of
Borrower for that purpose, shall be at least sufficient in the reasonable judgment of Lender exercised in good faith to pay for the cost of completion of the Restoration, free and clear of all Liens or claims for Lien. Prior to any disbursement,
Lender shall have received evidence reasonably satisfactory to it of the estimated cost of completion of the Restoration, and Borrower shall have deposited with Lender Eligible Collateral in an amount equal to the excess (if any) of such estimated
cost of completion over the net Proceeds. Any surplus which may remain out of Proceeds received pursuant to a Casualty shall be paid to Borrower after payment of such costs of Restoration. Any surplus which may remain out of Proceeds received
pursuant to a Condemnation shall be escrowed with Lender as security for the Debt after payment of such costs of Restoration. 
  
 8.1.3 Condemnation. (a) Borrower shall promptly give Lender written notice of the actual or, to Borrower’s Actual Knowledge, proposed,
contemplated or threatened in writing commencement of any taking, condemnation, or eminent domain proceeding or similar proceeding affecting the Property (a “Condemnation”) and shall deliver to Lender copies of any and all papers
served in connection with such Condemnation. Following the occurrence of a Condemnation, Borrower, regardless of whether Proceeds are available, shall promptly proceed to restore, repair, replace or rebuild the same to the extent practicable to be
of at least equal value and of substantially the same character as prior to such Condemnation, all to be effected in accordance with the terms hereof applicable to Alterations. 
  
 (b) Lender is hereby irrevocably appointed as Borrower’s attorney-in-fact, coupled with an interest, with exclusive
power to collect, receive and retain any Proceeds in respect of a Condemnation and to make any compromise or settlement in connection with such Condemnation, subject to the provisions of this Section. Provided no Default or Event of Default has
occurred and is continuing, Borrower may settle and compromise such Proceeds, provided that the same is effected in a competent and timely manner. Notwithstanding any Condemnation by any public or quasi-public authority (including any
transfer made in lieu of or in anticipation of such a Condemnation), Borrower shall continue to pay the Debt at the time and in the manner provided for in the Notes, this Agreement and the other Loan Documents, and the Debt shall not be reduced
unless and until any Proceeds shall have been actually received and applied by Lender to expenses of collecting such Proceeds and to discharge of the Debt. Lender shall not be limited to the interest paid on the Proceeds by the condemning authority
but shall be entitled to receive out of the Proceeds interest at the rate or rates provided in the Notes. Borrower shall cause any Proceeds that are payable to Borrower to be paid directly to Lender to be held and applied in accordance with the
terms hereof. 
  

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 IX. ACCOUNTS AND RESERVES 
  
 Section 9.1 Establishment and Maintenance of Deposit Account. On or prior to the Closing Date, Lender shall establish
with a depository institution selected by Lender, the Deposit Account as a separate Eligible Account. The Deposit Account shall be named “Commerce Square Partners-Philadelphia Partners, L.P. Account No. 8601957453 at PNC Bank for the benefit of
Goldman Sachs Mortgage Company” and shall be under the sole dominion and control of Lender, subject only to Lender’s obligations hereunder to advance funds therefrom in accordance with this Agreement, and Borrower shall have no authority
or power to make withdrawals from the Deposit Account. Borrower shall, not later than the Closing Date, by notice to each Tenant (and the form of such notice shall be subject to the reasonable approval of Lender), direct each Tenant to make all
checks in respect of all sums due to Borrower under the Leases payable to Commerce Square Partners-Philadelphia Partners, L.P., Account No. 8601957453 at PNC Bank. Without limiting the foregoing, if Borrower or the Manager shall receive any payment
(including, without limitation, any rent payments payable on April 1, 1998) in respect of sums due under any Lease that is made payable in a manner contrary to the foregoing requirements of this Section, or any funds in respect of such sums by wire
transfers or other means, then Borrower shall deposit upon receipt, and shall direct the Manager to deposit upon receipt, such checks and funds in the Deposit Account (and in any event not later than the close of business on the Business Day
following the day on which the same is received by Borrower or the Manager); provided, however, that any such amounts which constitute Security Deposits or Termination Fees shall be deposited in the manner required by Section 5.1(r) or 7.2(f)
hereof, as the case may be. Funds in the Deposit Account shall not be commingled with any other monies. Without limiting the foregoing, all deposits into the Deposit Account will be made in accordance with the terms and provisions of the Deposit
Account Agreement. Any Rents and other amounts deposited into the Deposit Account shall be applied and disbursed in accordance with the terms and provisions of Section 9.4 hereof and the Deposit Account Agreement. Borrower shall notify the Manager
of the terms of this Section 9.1. Lender shall cause the Eligible Institution which maintains the various accounts to provide Borrower with access (via computer connection) during normal business hours to account information, to be updated no less
frequently than every Business Day, regarding the Deposit Account, the Tax and Insurance Escrow Account, the Low Debt Service Reserve Account, the Security Deposit Account, the Termination Payment Account and the Reserve Accounts in accordance with
the computer access procedures of such Eligible Institution. 
  
 Section 9.2 Capital Reserve; Leasing Reserve; Deferred Maintenance Reserve; Unpaid TI/Leasing Commissions Reserve; Reserve Accounts. 
  
 9.2.1 Establishment and Maintenance of Reserve Accounts. On or prior to the Closing Date, Borrower shall establish the following reserve accounts;
provided, however, that notwithstanding anything to the contrary contained in this Agreement, Borrower shall have until Noon Eastern Time on March 20, 1998 to fund the initial amount required for the Leasing Reserve Account and the Deferred
Maintenance Reserve Account and if Borrower shall fail to make such deposits by such time such failure shall not constitute an Event of Default hereunder (it being understood that the sole rights of Lender with respect thereto shall be to require
the payment of interest at the rate specified in clause (ii) of the definition of Fixed Rate and to 

  

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require the Cash Hold until such reserve accounts are funded in the initial amounts required as of the Closing Date): 
  
 (a) an account in the amount of $4,497,025 for the payment of Tenant
Improvement expenses and Leasing Commissions (the “Leasing Reserve Account”); subsequent to the Closing, monies shall be transferred in accordance with Section 9.4 hereof from the Deposit Account into the Leasing Reserve Account;

  
 (b) an account, initially at zero, for the payment of routine
capital improvements (excluding Tenant Improvements and Leasing Commissions and, until the Deferred Maintenance Reserve Account has been reduced to zero, Deferred Maintenance Conditions) at the Property (the “Capital Reserve
Account”); subsequent to the Closing, monies shall be transferred in accordance with Section 9.4 hereof from the Deposit Account into the Capital Reserve Account; 
  
 (c) a reserve account in the initial amount of $352,000, for the payment of the cost of remediating the Deferred Maintenance
Conditions (the “Deferred Maintenance Reserve Account”); and 
  
 (d) a reserve account in the amount of $2,978,272, for the payment of all unpaid Tenant Improvements and Leasing Commissions (collectively, “Tenant Costs”) associated with the Leases specified on
Schedule 6 in the amounts per Lease specified on Schedule 6 (the “Unpaid TI/Leasing Commissions Reserve Account”); provided, that the amounts allocated to a particular Lease may only be used for the payment of the
Tenant Costs in respect of such Lease. 
  
 Each of the Leasing Reserve Account,
Capital Reserve Account, Deferred Maintenance Reserve Account and Unpaid TI/Leasing Commissions Reserve Account (each, a “Reserve Account”) shall be in the name of and under the sole dominion and control of Lender, subject only to
Lender’s obligations hereunder to advance funds therefrom in accordance with this Agreement, and Borrower shall have no authority or power to make withdrawals from said Reserve Accounts. The amount required in each Reserve Account as of the
Closing Date shall be deposited on Borrower’s behalf by Lender’s funding said amount out of the proceeds of the Loan provided that, in lieu of all (but not part of) such initial deposits and other deposits to the Leasing
Reserve Account or the Deferred Maintenance Reserve Account required to be made hereunder, Borrower may, until the ninth (9th) anniversary of the Closing Date only, deliver to Lender, a Credit Facility or Facilities in the amounts required to be
deposited in each such Reserve Account, in form and substance acceptable to Lender (in its reasonable discretion) and approved by a Rating Confirmation; and provided further, however, that with respect to any Credit Facility
delivered in lieu of deposits to the Leasing Reserve Account, (i) such Credit Facility shall have an annual expiration date of July 1st and shall be renewed by Borrower in accordance with the definition of Credit Facility and (ii) at the time of
each such renewal the amount of such Credit Facility shall equal the amount set forth for such date on Schedule 7 (the “Leasing Reserve Account Balance”); provided further, however, that the required amount of
such Credit Facility (and accordingly, the Leasing Reserve Account Balance) shall be reduced in an amount equal to the aggregate amount of all Tenant Improvement costs and Leasing Commissions disbursed to Borrower pursuant to the provisions of
Section 9.2.2 or expended by Borrower out of other funds (provided that Lender has been provided with evidence reasonably satisfactory to it that such funds have been expended for Tenant Improvement costs or Leasing Commissions) with respect 

  

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to new Leases (or Lease extensions) relating to the initial reletting of the IBM Space which have an initial term which expires after September 20, 2006
(such amount being hereinafter referred to as the “IBM Space Reduction Amount”). Borrower may from time to time convert all or any part of a Credit Facility into Cash, or replace all or any part of the Cash in a Reserve Account with
a Credit Facility in the amount of the then applicable Leasing Reserve Account Balance and otherwise meeting the requirements for such Credit Facility set forth above. From and after such ninth (9th) anniversary date all and any Credit Facilities
delivered in lieu of such deposits in such Reserve Accounts shall be replaced with immediately available funds and, to the extent that immediately available funds have not been deposited in such Reserve Accounts by such ninth (9th) anniversary date,
Lender shall have the right at any time on or after such date to draw upon any Credit Facilities delivered in lieu of deposits and hold the proceeds of such Credit Facilities and apply the same in accordance with the terms hereof. Funds in each
Reserve Account shall not be commingled with any other monies. 
  
 Notwithstanding
anything to the contrary contained in this Article IX, Borrower shall have the right at any time after September 20, 2002 to request the Rating Agencies to modify the Leasing Reserve Account Balances, and if the Rating Agencies shall agree in their
sole discretion to any such modification and shall issue a Rating Confirmation with respect thereto, then such modification shall be made without requiring the consent of Lender. 
  
 9.2.2 Disbursements from the Reserve Accounts. (a) Borrower shall have the right to obtain disbursements from time to
time or to require that a Credit Facility be drawn upon from time to time: (1) with respect to the Leasing Reserve Account, for Leasing Commissions and Tenant Improvement costs incurred by Borrower in connection with a new Lease (or Lease extension)
entered into in accordance with the terms hereof; provided, however, that with respect to any Leasing Commission or Tenant Improvement cost relating to the initial reletting of the IBM Space, such new Lease (or Lease extension) must have an initial
term which expires on or after September 20, 2006, (2) with respect to the Capital Reserve Account, for routine capital improvements made by Borrower at the Property in accordance with the terms hereof (excluding Tenant Improvements and Leasing
Commissions and Deferred Maintenance Conditions), (3) with respect to the Deferred Maintenance Reserve Account, for expenses incurred by Borrower in remediating any Deferred Maintenance Condition in accordance with the terms hereof and, following
the completion of such remediation, the balance thereof may be used for capital improvements at the Property (provided, that such use following such completion shall not be permitted unless (x) Borrower shall have delivered to Lender an
Officer’s Certificate stating that all such remediation has been completed ‘in accordance with the terms hereof as specified in Schedule 1 and (y) Lender shall have delivered a written confirmation, not to be unreasonably withheld,
that it concurs in such statement contained in such Officer’s Certificate), and (4) with respect to the Unpaid TI/Leasing Commissions Reserve Account, for the Tenant Costs incurred by Borrower in connection with any of the Leases identified on
Schedule 6 hereto up to the allocated amounts for each such Lease, as set forth on such Schedule, in each case on the following terms and conditions: 
  
 (i) disbursements or draws on a Credit Facility shall be made only to pay or to reimburse Borrower in respect of actual costs of the work
or payments in respect of Tenant Costs made, which costs or payments were approved by Lender (such approval not to be unreasonably withheld, conditioned or delayed) or made in accordance with Section 7.1; 
  

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 (ii) each request for a disbursement from any Reserve Account or a draw on a Credit
Facility shall be in a form specified or approved by Lender, shall specify the work or payment for Tenant Costs, as the case may be, for which the disbursement or drawdown is requested and shall include an Officer’s Certificate certifying that
such funds will be applied (x) to pay or reimburse for materials or work permitted hereunder and done in accordance herewith, and shall be accompanied by copies of invoices for all items or materials purchased and all contracted labor or services
provided or (y) to pay for Tenant Costs permitted hereunder; 
  
 (iii) Lender shall have received from Borrower evidence reasonably satisfactory to Lender that Borrower has incurred such expenses and, to the extent applicable, that the materials for which the request is made are on
site at the Property and are properly secured or have been installed in the Property; with respect to disbursements from the Deferred Maintenance Reserve Account and the Unpaid TI/Leasing Commission Reserve Account (or draws on Credit Facilities
related thereto), the funds remaining in the Reserve Account in question or remaining undrawn on the applicable Credit Facility in question shall be, in Lender’s reasonable judgment made in good faith, sufficient to pay the balance of the items
contemplated to be funded therefrom when required to be so paid, and Lender shall receive any Lien waivers or other releases as are customarily and reasonably obtained by prudent property owners in the locality in which the Property is located and
as Lender may reasonably require; and 
  
 (iv)
Lender shall disburse from the Reserve Account in question or draw on the Credit Facility in question, or authorize such disbursement or drawing, within five (5) Business Days after the receipt of Borrower’s request for such disbursement or
draw and the satisfaction of the other conditions set forth above in this Section, but in no event more often than once in any 10-day period, the amount requested by Borrower for such expenses, provided, however: 
  
 (A) with respect to the Deferred Maintenance Reserve
Account, in no event shall the amount so disbursed or drawn exceed the amount set forth on Schedule 1 for the remediation of the item in question; and 
  

(B) with respect to the Unpaid TI/Leasing Commission Reserve Account, in no event shall the amount so disbursed or drawn with respect
to a Lease exceed the amount set forth for such Lease on Schedule 6 for the Tenant Costs in question. 
  
 9.2.3 No Other Disbursements from Reserve Accounts. Except as provided in Sections 9.2.2 and 9.2.4, Borrower shall not be entitled to any
disbursements from the Reserve Accounts or any drawing on the applicable Credit Facilities, even if the work for which a particular Reserve Account was established has been completed and funds remain in such Reserve Account. 
  
 9.2.4 Release of Accounts Upon Repayment or Defeasance. Lender shall
disburse to Borrower, or draw on the Credit Facilities, on the date that the Debt shall be paid or Defeased in full by Borrower, all amounts remaining in the Reserve Accounts, the Deposit Account and any other accounts established pursuant to this
Agreement, or all amounts remaining undrawn on the Credit Facilities. 
  

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 9.2.5 Obligations Unaffected. The insufficiency of any balance in any Reserve Account shall not
relieve Borrower from its obligation to fulfill all preservation and maintenance covenants in the Loan Documents. 
  
 Section 9.3 Tax and Insurance Escrow Account. 
  
 9.3.1 Establishment. On or prior to the Closing Date Borrower shall establish a separate account or accounts (the “Tax and Insurance Escrow
Account”), and Borrower shall deposit therein on each Payment Date: 
  
 (a) one-twelfth (1/12) of the Taxes and Other Charges that Lender reasonably estimates will be payable during the next ensuing twelve (12) months in order to accumulate with Lender sufficient funds to pay all such
Taxes and Other Charges at least thirty (30) days prior to their respective delinquent dates, and 
  
 (b) one-twelfth (1/12) of the Insurance Premiums that Lender estimates will be payable for the renewal of the coverage afforded by the
Policies upon the expiration thereof in order to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to the expiration of the Policies. 
  
 On the Closing Date, Lender on behalf of Borrower shall disburse from the Loan to the Tax and
Insurance Escrow Account an amount equal to (i) the product of the next installment of Taxes and Other Charges times a fraction, the numerator of which is the number of months in the installment period for such Taxes and Other Charges elapsed as of
the Closing Date (rounded up to the nearest integer) and the denominator of which is the number of months in such installment period, and (ii) the product of the next installment of Insurance Premiums payable times a fraction, the numerator of which
is the number of months in the installment period for such Premiums elapsed as of the Closing Date (rounded up to the nearest integer) and the denominator of which is the number of months in such installment period. Amounts in the Tax and Insurance
Escrow Account may only be invested in Permitted Investments in accordance with Section 11.2. 
  
 9.3.2 Application Generally. Lender will apply amounts in the Tax and Insurance Escrow Account either: (x) to pay Taxes and Other Charges and Insurance Premiums required to be made by Borrower hereunder (and so
long as the Tax and Insurance Escrow Account shall have a balance at least equal to the then-payable Taxes, Other Charges and Insurance Premiums, Borrower shall not be in default hereunder if Lender shall have not so applied such balance to the
payment of such Taxes, Other Charges and Insurance Premiums, unless Lender shall have not so applied such balance at the request of Borrower) or (y) to reimburse Borrower for such amounts upon presentation of evidence of payment and an
Officer’s Certificate in form and substance reasonably satisfactory to Lender, subject, however in the case of (x) or (y), to Borrower’s right to contest Taxes and Other Charges in accordance with the terms hereof. In making any payment
from or to the Tax and Insurance Escrow Account, Lender may do so according to any bill, statement or estimate procured from the appropriate public office (with respect to Taxes and Other Charges) or insurer or agent (with respect to Insurance
Premiums), without inquiry into the accuracy of such bill, statement or estimate or into the validity of any tax, assessment, sale, forfeiture, tax lien or title or claim thereof unless Lender was given written notice by Borrower of such inaccuracy,
invalidity or other contest, in each 

  

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case in accordance with Section 5.1(b)(ii). If the amount in the Tax and Insurance Escrow Account shall exceed the amounts due for Taxes and Other Charges
and Insurance Premiums, Lender shall, at its option, return any excess to Borrower or credit such excess against future payments to be made to the Tax and Insurance Escrow Account. Provided no Event of Default has occurred and is continuing,
Borrower shall have the right to have Lender apply amounts deposited in the Tax and Insurance Escrow Account on account of Taxes and Other Charges toward the payment of such Taxes and Other Charges prior to their delinquent dates for the purpose of
achieving a discount on such Taxes and Other Charges obligation. If at any time Lender reasonably determines that the amount in the Tax and Insurance Escrow Account is not or will not be sufficient to pay the items set forth in Sections 9.3.1(a) and
9.3.1(b) above, Lender shall notify Borrower of such determination and Borrower shall increase its monthly payments to Lender by the amount that Lender estimates is sufficient to make up the deficiency at least thirty (30) days prior to delinquency
of the Taxes and Other Changes and/or expiration of the Policies, as the case may be. 
  
 Section 9.4 Disbursements from the Deposit Account; Borrower’s Obligation to Fund Deposit Account. 
  
 9.4.1 Disbursements Prior to the Anticipated Prepayment Date. On each Payment Date during the period from the Closing Date to the Anticipated
Prepayment Date, provided no Event of Default has occurred and is continuing, and subject to Section 9.4.3, Lender shall transfer from the Deposit Account (or authorize such transfer), to the extent available therein, the following payments in the
following order of priority: 
  
 (a) to the Tax and Insurance
Escrow Account the amounts required to be reserved pursuant to Section 9.3 hereof, 
  
 (b) to Lender, the Monthly Debt Service Payment Amount for the Loan, which amount shall immediately be available and payable to Lender; 
  
 (c) to Borrower, an amount equal to the Operating Expenses set forth in the Annual Budget (approved by Lender to the extent
such approval is required pursuant to Section 5.1(p)) for the month immediately prior to the month in which such Payment Date occurs; provided that Borrower shall have delivered to Lender an Officer’s Certificate, dated no less than five
(5) days prior to such Payment Date, stating that there is not outstanding for more than sixty (60) days any amounts claimed by any creditor to be due and owing from Borrower (except for claims Borrower is in good faith contesting in accordance with
Section 5(b)(ii)), and that the amounts disbursed to Borrower pursuant to this clause (c) shall be used by Borrower solely to pay its creditors for cost and expenses incurred to date; provided further that Borrower shall have the right, by
notice given to Lender not later than the fifth (5th) Business Day prior to the Payment Date, to request an additional amount to pay Operating Expenses in excess of the budgeted amount for any line item, up to five percent (5%) of the budgeted
amount for such line item (except that up to three (3) line items totaling no more than $100,000 may be aggregated for such variance), but in no event shall such additional amount exceed more than five percent (5%) of such month’s budgeted
amount for all Operating Expenses; such notice by Borrower shall be accompanied by an Officer’s Certificate on behalf of Borrower certifying that the additional amount requested is required to pay Operating Expenses in excess of those budgeted;

  

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 (d) on each Payment Date occurring in July through and including December, to the Leasing Reserve
Account, except to the extent a Credit Facility delivered therefor pursuant to Section 9.2.1 remains undrawn, an amount equal to one-sixth (1/6th) of the amount required to cause the amount in the Leasing Reserve Account to equal the Leasing Reserve
Account Balance set forth for such year on Schedule 7; provided, however, that the Leasing Reserve Account Balance shall be reduced in an amount equal to the IBM Space Reduction Amount; 
  
 (e) to the Capital Reserve Account, an amount equal to the amount shown on
Schedule 8 hereto (regardless of the amount then in such Capital Reserve Account); 
  
 (f) to Borrower, an amount equal to the Capital Expenditures set forth in the Annual Budget (approved by Lender to the extent such approval is required pursuant to Section 5.1(p)) for the month immediately prior to
the month in which such Payment Date occurs; provided that Borrower shall have delivered to Lender an Officer’s Certificate, dated no less than five (5) days prior to such Payment Date, that there is not outstanding for more than sixty
(60) days any amounts (other than de minimis amounts) claimed by any creditor to be due and owing from Borrower for prior capital improvements (except for claims any Borrower is in good faith contesting and the payment for which
Borrower has escrowed with Lender), and that the amounts disbursed to Borrower pursuant to this clause (f) shall be used by Borrower within the next sixty (60) days solely to pay for Capital Expenditures; 
  
 (g) to Borrower to pay the costs of extraordinary Capital Expenditures
approved in writing by Lender to the extent such approval is required pursuant to Section 5.1(p); 
  
 (h) if the Mezzanine Loan is then outstanding, to the Mezzanine Lender in an amount equal to all amounts then due and payable to the Mezzanine Lender
(provided that Lender shall have been notified of such amount at least six (6) Business Days prior to each Payment Date); 
  
 (i) to the Preferred Equity Holder an amount equal to all amounts then due and payable to the Preferred Equity Holder (provided that Lender shall have
been notified of such amount at least six (6) Business Days prior to each Payment Date); and 
  
 (j) to Borrower or its designee, as Borrower shall direct, any funds remaining in the Deposit Account. 
  
 Notwithstanding the foregoing, if at any time during the Term, the Net Operating Income for the Property (exclusive of the then applicable Above Market IBM Rent
Component) for the most current trailing 12-month period for which Borrower has furnished the statements required by Section 5.1(j)(iii)(B) is less than $8,000,000, all amounts remaining in the Deposit Account after the transfers described in
clauses (a) through (f) above shall be deposited in a separate Eligible Account in which Lender is hereby granted a security interest (the “Low Debt Service Reserve Account”); provided, however, that if at the time in
question, either (1) at such time the aggregate Net Operating Income for the Property (exclusive of the then applicable Above Market IBM Rent Component) for the most current trailing 6-month period for which Borrower has furnished the statements
required by Section 5.1(j)(iii)(B) plus the Net Operating Income for the Property (exclusive of the then applicable Above Market IBM Rent Component) as projected in 

  

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good faith by Borrower (taking into account only Leases which are then in place) and reasonably agreed to by Lender for the 6-month period immediately
following such trailing 6-month period shall equal or exceed $8,000,000, or (2) if the time in question occurs during the year 2003, the Net Operating Income for the Property (exclusive of then applicable Above Market IBM Rent Component) as
projected in good faith by Borrower (taking into account only Leases which are then in place) and reasonably agreed to by Lender for the 12-month period immediately following the last period for which Borrower has furnished the statements required
by Section 5.1(j)(iii)(B) shall equal or exceed $8,000,000, then notwithstanding the foregoing, in either case, the amounts remaining in the Deposit Account shall not be deposited into the Low Debt Service Reserve Account and shall instead be
distributed as provided in clauses (g) through (j) above. If at any time (i) the Net Operating Income for the Property for any such 12-month (exclusive of the then applicable Above Market IBM Rent Component) period is less than $7,000,000, or (ii)
if an Event of Default has occurred and is continuing, all amounts on deposit in the Low Debt Service Reserve Account shall be applied, on each Payment Date occurring during the period that the conditions in clause (i) or (ii) apply, to prepay
principal due under the Notes until the principal amount of the Notes is paid in full; provided, however, that provided that no Event of Default has occurred and is continuing, if either (1) at such time the aggregate Net Operating
Income for the Property (exclusive of the then applicable Above Market IBM Rent Component) for the most recent trailing 6-month period for which Borrower has furnished the statements required by Section 5.1(j)(iii)(B) plus the Net Operating Income
for the Property (exclusive of the then applicable Above Market IBM Rent Component) projected in good faith by Borrower (taking into account only Leases which are then in place) and reasonably agreed to by Lender for the 6-month period immediately
following such trailing 6-month period shall equal or exceed $7,000,000, or (2) if the time in question occurs during the year 2003, the Net Operating Income for the Property (exclusive of then applicable Above Market IBM Rent Component) as
projected in good faith by Borrower (taking into account only Leases which are then in place) and reasonably agreed to by Lender for the 12-month period immediately following the last period for which Borrower has furnished the statements required
by Section 5.1(j)(iii)(B) shall equal or exceed $7,000,000, then notwithstanding the foregoing, in either case, the amounts on deposit in the Low Debt Service Reserve Account shall not be applied to prepay the Notes; provided, further
however, that if after establishment of the Low Debt Service Reserve Account, any such trailing 12-month Net Operating Income for the Property (exclusive of the then applicable Above Market IBM Rent Component) exceeds $8,000,000 for
four (4) consecutive quarters and provided no Event of Default has occurred and is continuing, all amounts on deposit in the Low Debt Service Reserve Account shall be released to Borrower. The foregoing provisions shall not apply during any
Hyperamortization Period (during which period the provisions of Section 9.4.2 shall apply). Lender acknowledges that, as of the Closing Date, no Low Debt Service Reserve Account is required hereunder. 
  

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 9.4.2 Disbursements After the Anticipated Prepayment Date. On each Payment Date from and after the
Anticipated Prepayment Date until the entire Debt has been paid in full (such period, the “Hyperamortization Period”), provided no Event of Default has occurred and is continuing, and subject to Section 9.4.3, Lender shall transfer
from the Deposit Account (or authorize such transfer), to the extent available therein, the following payments in the following order of priority: 
  
 (a) to the Tax and Insurance Escrow Account, the amounts required to be reserved pursuant to Section 9.3 hereof, 
  
 (b) to Lender to pay the Monthly Debt Service Payment Amount for the Loan,
which amount shall immediately be available and payable to Lender; 
  
 (c) to Borrower, payments for monthly Operating Expenses approved by Lender pursuant to the Annual Budget in accordance with the provisions of Section 9.4.1(c); 
  
 (d) to the Leasing Reserve Account, except to the extent a Credit Facility delivered therefor pursuant to Section 9.2.1
remains undrawn, in accordance with the provisions of Section 9.4.1(d); 
  
 (e) to the Capital Reserve Account, in accordance with the provisions of Section 9.4.1(e); 
  
 (f) to Borrower, payments for monthly Capital Expenditures approved by Lender pursuant to the Annual Budget, in accordance with the provisions of Section
9.4.1(f); 
  
 (g) to Borrower to pay the costs of extraordinary
Capital Expenditures approved in writing by Lender; 
  
 (h) to
Lender, to prepay the principal amount outstanding under the Tranche A Note until the principal amount of the Tranche A Note is paid in full; 
  
 (i) to Lender, to be applied against Accrued Interest with respect to the Tranche A Note; and 
  
 (j) if the Mezzanine Loan is then outstanding, to the Mezzanine Lender in an
amount equal to all amounts then due and payable to the Mezzanine Lender (provided that Lender shall have been notified of such amount at least six (6) Business Days prior to each Payment Date); 
  
 (k) to the Preferred Equity Holder in an amount equal to all amounts then due
and payable to the Preferred Equity Holder (provided that Lender shall have been notified of such amount at least six (6) Business Days prior to each Payment Date); and 
  
 (l) to Borrower or its designee, as Borrower shall direct, any funds remaining in the Deposit Account. 
  
 However, the failure of Borrower to pay any amounts required to be paid under clauses (g)
through (k) above, including Accrued Interest on a Payment Date, as a result of insufficient funds in the Deposit Account for such payment shall not constitute an Event of Default hereunder. All Accrued Interest shall nonetheless be due and payable
on the Maturity Date. 
  
 9.4.3 Obligation to Fund; Deemed
Payment. In the event that on any Payment Date the amount in the Deposit Account shall be insufficient to make all of the transfers described in Sections 9.4.1(a) through (f) or 9.4.2(a) through (f) above, as applicable; Borrower 

  

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shall deposit into the Deposit Account on such Payment Date the amount of such deficiency, and if Borrower shall fail to make such deposit in accordance with
the provisions of Section 10.1(a), the same shall be an Event of Default and, in addition to all other rights and remedies provided for hereunder, Lender may disburse and apply the amounts in the Deposit Account in such order as Lender may
determine. Notwithstanding the foregoing, Borrower shall not be obligated to deposit a deficiency in accordance with the immediately preceding sentence to the extent that Borrower shall have paid directly any amount included within the budgeted
amounts for which disbursement would otherwise be made for the month in question in accordance with Sections 9.4.1(a), (c) or (f) or 9.4.2(a), (c) or (f), as applicable, as established to Lender’s reasonable satisfaction prior to the date that
Borrower shall otherwise be obligated to deposit such deficiency in accordance with the immediately preceding sentence of this Section 9.4.3. If on any Payment Date the amount in the Deposit Account shall be sufficient to make all of the transfers
described in Sections 9.4.1(a) through (f) or 9.4.2(a) through (f) above, as applicable, Borrower shall be deemed to have paid the Monthly Debt Service Payment Amount and the deposits in the Reserve Accounts required by Sections 9.4.1(a), (c), (d),
(e) and (f) or 9.4.2(a), (c), (d), (e) and (f), as applicable, unless Lender is legally constrained from transferring such amount in accordance with Sections 9.4.1(a) through (f) or 9.4.2(a) through (f) above, as applicable, by reason of (x) any
bankruptcy or insolvency related to Borrower or (y) any other event of which Lender has delivered written notice to Borrower at least three Business Days prior to the applicable Payment Date; provided, however, that Borrower shall not
be relieved from its obligations to make any such payments in the absence of such notice and that Borrower shall be in Default if it fails to make any such payments by such Payment Date. 
  
 9.4.4 Borrower to Provide for Reconciliation of Excess Disbursements. In the event that the quarterly reports
delivered by Borrower pursuant to Section 5.1(j)(iv)(B) shall show that the actual Operating Expenses and Capital Expenditures incurred by Borrower with respect to the period covered by such report shall be different than the amounts actually
received by Borrower as disbursements from the Deposit Account pursuant to Sections 9.4.1(c), (e), (f) and (g) or 9.4.2 (c), (e), (f) and (g), as applicable, including the second proviso of Section 9.4.1(c), with respect to the corresponding period
(or such difference shall otherwise be established), and the Capital Reserve Account or the Leasing Reserve Account has a balance less than the balance that such Reserve Account(s) would otherwise have had, or Lender received less than would have
received under Sections 9.4.2(h) or (i), as applicable, if the amounts disbursed to Borrower pursuant to the aforementioned Sections equaled such actual Operating Expenses and Capital Expenditures, then Borrower shall deposit into such Reserve
Account(s) the amount or, to the extent permitted hereunder, deliver a Credit Facility in the amount that should otherwise have been deposited into such Reserve Account(s) or paid to Lender as principal or Accrued Interest. Such deposit or payment
shall be made not later than three (3) Business Days after the date on which Borrower’s quarterly report under Section 5.1(j)(iv)(B) is required to be delivered hereunder. 
  
 Section 9.5 No Release if Event of Default Exists. Notwithstanding the terms hereof, in no event shall Lender have
any obligation to disburse funds from the Deposit Account, Termination Payment Account, Security Deposit Account, Low Debt Service Reserve Account, Tax and Insurance Escrow Account or any Reserve Account for so long as an Event of Default shall have
occurred and be continuing. 
  

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 Section 9.6 Grant of Security Interest; Rights upon Default. (a) Subject to the provisions of this
Agreement permitting the release of funds in certain accounts under certain circumstances, Borrower hereby pledges, assigns and grants a security interest to Lender, as security for payment of all sums due in respect of the Loan and the performance
of all other terms, conditions and covenants of this Agreement and any other Loan Document on Borrower’s part to be paid and performed, all of Borrower’s right, title and interest in and to the Deposit Account, the Termination Payment
Account, the Security Deposit Account (subject to the rights of Tenants therein), the Low Debt Service Reserve Account, each Reserve Account and the Tax and Insurance Escrow Account, together with the deposits therein; including all interest earned
thereon and Permitted Investments held therein. Borrower shall not, without obtaining the prior written consent of Lender, which consent may be withheld in the sole discretion of Lender, further pledge, assign or grant any security interest in any
such account, or permit any Lien or encumbrance to attach thereto, or any levy to be made thereon, or any UCC-1 Financing Statements, except those naming Lender as the secured party, to be filed with respect thereto. 
  
 (b) Upon the occurrence, and during the continuance of an Event of Default,
Lender may draw upon any Credit Facilities delivered in lieu of deposits into any Reserve Accounts and apply the proceeds thereof and any other amounts in the Deposit Account, the Termination Payment Account, the Low Debt Service Reserve Account,
any Reserve Account and the Tax and Insurance Escrow Account (or any portion thereof) and to the extent permitted by applicable law and the applicable Leases, the Security Deposit Account, for any of the following purposes relating to the Loan or
Borrower’s obligations hereunder or under any other Loan Document, and in any order, as Lender shall elect in its sole discretion: (i) Taxes and Other Charges; (ii) Insurance Premiums; (iii) interest on the unpaid principal balance of the
Notes; (iv) amortization of the unpaid principal balance of the Notes; (v) Accrued Interest; (vi) Default Interest; (vii) completion of all work required to be performed hereunder, (viii) reimbursement of Lender for all losses (other than
consequential damages) and expenses (including reasonable legal fees and disbursements) suffered or incurred by Lender as a result of such Event of Default; (ix) the cost of any repair or replacement to the Property; (x) payment of any amount
expended in exercising rights and remedies available to Lender at law or in equity or under this Agreement or under any of the other Loan Documents; or (xi) any other portion of the Debt then due and payable (whether by acceleration or otherwise),
including the Yield Maintenance Payments applicable to any full or partial prepayment; provided that Yield Maintenance Payments and Default Interest will not be applied to repayment of the Debt prior to payment in full of all principal and accrued
interest (other than Default Interest). 
  
 Section 9.7 Lender
Not Responsible. Nothing in this Article IX or elsewhere in the Loan Documents shall make Lender responsible for making or completing any work in respect of the Property, or obligate Lender to demand from Borrower additional sums to make or
complete any work. 
  
 Section 9.8 Disbursements Relating to
Material Alterations. For any work (or series of related items of work) that would constitute a Material Alteration, disbursement of funds therefor shall be subject to compliance by Borrower of the provisions of Section 7.1(g) hereof.

  

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 Section 9.9 Cash Hold During a Letter of Credit Default. Notwithstanding anything to the contrary
contained in this Agreement or the Deposit Account Agreement, so long as a Letter of Credit Default shall exist, all amounts on deposit in the Deposit Account shall remain therein and Borrower shall have no right to require or request any
disbursements therefrom, including without limitation, any disbursements pursuant to Sections 9.2.2 or 9.4 (the foregoing restrictions are hereinafter referred to as the “Cash Hold”). 
  
 X. DEFAULTS 
  
 Section 10.1 Event of Default. 
  
 (a) Each of the following events shall constitute an event of default
hereunder (each, an “Event of Default”): 
  
 (i) if any portion of interest, principal or Yield Maintenance Payments is not paid when due (subject to the penultimate sentence of Section 9.4.2) or if Borrower shall fail to pay any other amount (other than amounts
referred to in Section 10.1(a)(xi) below) payable to Lender within five (5) Business Days after request therefor; 
  
 (ii) if any of the Taxes or Other Charges are not paid prior to the date when the same become delinquent, subject to Borrower’s right
to contest Taxes in accordance with Section 5.1(b)(ii) hereof and subject to Section 9.3.2(x); 
  
 (iii) if the Policies are not kept in full force and effect in accordance with the provisions of Section 8.1.1, if the Policies are not
delivered in accordance with Section 5.1(t) or if the information required to be delivered pursuant to Section 5.1(j)(xi) is not delivered in accordance therewith, and any such Default is not cured within ten (10) days after written notice thereof
from Lender; 
  
 (iv) if the provisions of
Section 6.1(i) are breached; 
  
 (v) if any
representation or warranty made by Borrower herein or in any other Loan Document (including without limitation, any representation or warranty made on behalf of Borrower in any Officer’s Certificate) shall be false in any material respect as of
the date the representation or warranty was made; 
  
 (vi) if Borrower shall make an assignment for the benefit of creditors, or if Borrower shall generally not be paying its debts as they become due or shall have admitted in writing its inability to pay its debts; 
  
 (vii) if a receiver, liquidator or trustee shall be
appointed for Borrower or if Borrower shall be adjudicated a bankrupt or insolvent, or if any petition for bankruptcy, reorganization or arrangement pursuant to federal bankruptcy law, or any similar federal or state law, shall be filed by or
against, consented to, or acquiesced in by, Borrower, or if any proceeding for the dissolution or liquidation of Borrower shall be instituted; provided, however, if such appointment, adjudication, petition or proceeding 

  

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was involuntary and not consented to by Borrower, upon the same not being discharged, stayed or dismissed within ninety (90) days; 
  
 (viii) if Borrower attempts to assign its respective rights
under this Agreement or under any other Loan Document or any interest herein or therein in contravention of this Agreement or any of the Loan Documents; 
  
 (ix) if any of the covenants contained in Section 6.1 (other than Section 6.1(i)) are breached or if Borrower breaches any covenant
contained in Section 4.1(cc) hereof and, if the same is susceptible of cure, the same is not cured within thirty (30) days after written notice thereof from Lender; provided, that no cure of a breach of any covenant contained in Section
4.1(cc) shall be effective unless Borrower causes to be delivered to Lender an opinion as to non-consolidation in form and substance and from counsel reasonably satisfactory to Lender, which opinion takes into account such breach; 
  
 (x) if an Event of Default as defined or described in any of
the other Loan Documents occurs and is continuing, or if any other such event shall occur or condition shall exist, if the effect of such event or condition is to accelerate the maturity of any portion of the Debt or to permit Lender to accelerate
the maturity of all or any portion of the Debt in accordance with the terms of any such Loan Document; 
  
 (xi) if Borrower shall be in default of its obligations to make deposits into the Tax and Insurance Escrow Account, the Termination
Payment Account, the Leasing Reserve Account, the Security Deposit Account, the Low Debt Service Account, the Capital Reserve Account, or the Deposit Account or in any other reserve or escrow account required hereunder and such default continues for
three (3) Business Days after notice from Lender; 
  
 (xii) if any Subordination and Attornment Agreement referred to in Section 7.2(h) is not delivered in accordance therewith, provided, however, that, other than with respect to the Affiliate Office Leases, if Borrower is
diligently and expeditiously pursuing the obtaining of such Subordination and Attornment Agreements (including, without limitation, through the exercise of all remedies available to Borrower against such Tenant for failure to deliver such
Subordination and Attornment Agreement), then such failure shall not be an Event of Default; or 
  
 (xiii) except as provided in Section 5.1(j)(viii), if Borrower shall continue to be in default under any of the other terms, covenants or
conditions of this Agreement not specified in subsections (i) to (xii) above, for ten (10) days after notice to Borrower from Lender, in the case of any Default which can be cured by the payment of a sum of money, or for thirty (30) days after
notice from Lender in the case of any other Default; provided, however, that if such nonmonetary Default is susceptible of cure but cannot reasonably be cured within such 30-day period and provided further that Borrower shall have
commenced to cure such default within such 30-day period and thereafter diligently and expeditiously proceeds to cure the same, such 30-day period shall be extended for an additional period of time as is reasonably necessary for Borrower in the

  

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exercise of due diligence to cure such Default, such additional period not to exceed one hundred and twenty (120) days. 
  
 (b) Upon the occurrence of an Event of Default and at any time thereafter
Lender may, in addition to any other rights or remedies available to it pursuant to this Agreement or any other Loan Document, or at law or in equity, take such action, without notice or demand, that Lender deems advisable to protect and enforce its
rights against Borrower and in and to all or any portion of the Property, including declaring the Debt to be immediately due and payable (provided, however, with respect to an Event of Default described in clauses (vi), (vii) or (viii)
above, the Debt and all other obligations of Borrower hereunder and under the other Loan Documents shall immediately and automatically become due and payable, without notice or demand, and Borrower hereby expressly waives any such notice or demand,
anything contained herein or in any other Loan Document to the contrary notwithstanding), and Lender may enforce or avail itself of any or all rights or remedies provided in the Loan Documents against Borrower and any or all of the Properties,
including all rights or remedies available at law or in equity. 
  
 Section 10.2 Remedies. (a) Upon the occurrence of an Event of Default, all or any one or more of the rights, powers, privileges and other remedies available to Lender against Borrower under this Agreement or any of the other Loan
Documents executed and delivered by, or applicable to, Borrower or at law or in equity may be exercised by Lender at any time and from time to time, whether or not all or any of the Debt shall be declared due and payable, and whether or not Lender
shall have commenced any foreclosure proceeding or other action for the enforcement of its rights and remedies under any of the Loan Documents with respect to all or any portion of the Property. Any such actions taken by Lender shall be cumulative
and concurrent and may be pursued independently, singly, successively, together or otherwise, at such time and in such order as Lender may determine in its sole discretion, to the fullest extent permitted by law, without impairing or otherwise
affecting the other rights and remedies of Lender permitted by law, equity or contract or as set forth herein or in the other Loan Documents. Without limiting the generality of the foregoing, to the extent permitted by applicable Legal Requirements,
Borrower agrees that if an Event of Default is continuing (i) Lender is not subject to any “one action” or “election of remedies” law or rule, and (ii) all liens and other rights, remedies or privileges provided to Lender shall
remain in full force and effect until Lender has exhausted all of its remedies against the Property and the Mortgage has been foreclosed, sold and/or otherwise realized upon in satisfaction of the Debt or the Debt has been paid in full. 

 
 (b) Upon the occurrence of an Event of Default, Lender shall have the
right from time to time to sever each Note and the other Loan Documents into one or more separate notes, mortgages and other security documents in such denominations as Lender shall determine in its sole discretion for purposes of evidencing and
enforcing its rights and remedies provided hereunder. Borrower shall execute and deliver to Lender from time to time, promptly after the request of Lender, a severance agreement and such other documents as Lender shall request in order to effect the
severance described in the preceding sentence, all in form and substance reasonably satisfactory to Lender. Borrower hereby absolutely and irrevocably appoints Lender as its true and lawful attorney, coupled with an interest, in its name and stead
to make and execute all documents necessary or desirable to effect the aforesaid severance, Borrower 

  

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ratifying all that its said attorney shall do by virtue thereof; provided Lender shall not avail itself of such power of attorney without first giving
each Borrower five (5) days’ prior notice. 
  
 Section 10.3
Remedies Cumulative. The rights, powers and remedies of Lender under this Agreement shall be cumulative and not exclusive of any other right, power or remedy which Lender may have against Borrower pursuant to this Agreement or the other Loan
Documents, or existing at law or in equity or otherwise. Lender’s rights, powers and remedies may be pursued singly, concurrently or otherwise, at such time and in such order as Lender may determine in Lender’s sole discretion. No delay or
omission to exercise any remedy, right or power accruing upon an Event of Default shall impair any such remedy, right or power or shall be construed as a waiver thereof, but any such remedy, right or power may be exercised from time to time and as
often as may be deemed expedient. A waiver of one Default or Event of Default with respect to Borrower shall not be construed to be a waiver of any subsequent Default or Event of Default with respect to Borrower or to impair any remedy, right or
power consequent thereon. 
  
 XI. MISCELLANEOUS 

 
 Section 11.1 Survival. (a) This Agreement and all covenants,
agreements, representations and warranties made herein and in the certificates delivered pursuant hereto shall survive the making by Lender of the Loan and the execution and delivery to Lender of the Notes, and shall continue in full force and
effect so long as all or any of the Debt of Borrower is outstanding and unpaid. 
  
 (b) Whenever in this Agreement any Person is referred to, such reference shall be deemed to include the legal representatives, successors and assigns of such Person (provided that the foregoing shall not be deemed to
permit any transfer of any ownership interest that is otherwise prohibited hereunder). All covenants, promises and agreements in this Agreement contained, by or on behalf of Borrower, shall inure to the benefit of the respective legal
representatives, successors and assigns of Lender. 
  
 Section
11.2 Permitted Investments; Eligible Accounts; Eligible Institutions. Lender shall invest any amounts to be held by Lender in accordance with the terms of this Agreement or any other Loan Document, pending the application of such amounts to
the purposes herein or therein provided, in one of the Permitted Investments as directed by Borrower from time to time (provided no Event of Default has occurred and is continuing) or Lender from time to time (if any Event of Default has occurred
and is continuing). If Borrower is entitled to choose the Permitted Investments but fails to do so, such amounts may remain in the Eligible Accounts until receipt by Lender of such direction by Borrower. Lender shall not be responsible for its
inability to invest funds received after 1:30 p.m. New York City time, but shall invest such sums on the following Business Day. Except as otherwise provided in Section 7.1(h)(vi), after application to the purposes for which any amounts invested
pursuant to this Section 11.2 are held and so long as no Event of Default has occurred and is continuing hereunder, any investment income earned from such investments shall be paid to Borrower. All accounts maintained hereunder, including the
Deposit Account, the Termination Payment Account, the Low Debt Service Reserve Account, the Reserve Accounts and the Tax and Insurance Escrow 

  

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Account, shall, at Lender’s election, be (1) an account or account maintained with a federal or state-chartered depository institution or trust company
which complies with the definition of Eligible Institution (as defined below) or (2) a segregated trust account or accounts maintained with the corporate trust department of a federal depository institution or state-chartered depository institution
subject to regulations regarding fiduciary funds on deposit similar to Title 12 of the Code of Federal Regulations Section 9.10(b) which, in either case, has corporate trust powers, acting in its fiduciary capacity (such accounts, “Eligible
Accounts”). “Eligible Institutions” are institutions whose (1) commercial paper, short-term debt obligations or other short-term deposits are rated at least “A-1+” (or the equivalent) by each applicable Rating
Agency, if the deposits are to be held in the account for less than 35 days, or (2) long-term senior unsecured debt obligations are rated at least “AA”, if the deposits are to be held in the account for more than 30 days. Following a
rating downgrade, withdrawal, qualification or suspension of such institution’s rating, each account must promptly (and in any case within not more than 30 calendar days) be moved to a qualifying institution or to one or more segregated trust
accounts in the trust department of such institution, if permitted. No Eligible Account shall be evidenced by a certificate of deposit, passbook or other instrument. Each Eligible Account (A) shall be a separate and identifiable account from all
other funds held by the holding institution, (B) shall be established and maintained in the name of the Lender (and subsequent to any Securitization, shall bear a designation clearly indicating that the funds deposited therein are held for the
benefit of the holders of the Certificates), (C) shall be under the sole dominion and control of Lender, and shall contain only funds held for its benefit. All costs and expenses incurred in establishing and maintaining any account or reserve held
by Lender pursuant to this Agreement or any other Loan Document shall be borne by Borrower (except in the case of the Deposit Account with respect to which Lender shall be responsible for the costs only of establishing (as opposed to maintaining)
such account) and such costs and expenses may be paid out of any income earned by way of investment of amounts in such accounts or reserves or, if insufficient, from amounts in such accounts. Anything to the contrary herein notwithstanding, the
parties hereto agree that, for so long as Chase or First Union has (i) a long term senior unsecured credit rating and (ii) a short term credit rating, in each case by the applicable Rating Agencies not less than its rating as of the Closing Date,
each of Chase and First Union shall be deemed an Eligible Institution for purposes of maintaining all accounts hereunder provided any such accounts so maintained shall be Eligible Accounts. 
  
 Section 11.3 Governing Law; Consent to Jurisdiction. (a) THIS
AGREEMENT AND ALL OTHER LOAN DOCUMENTS WERE NEGOTIATED IN THE STATE OF NEW YORK, AND MADE BY LENDER AND ACCEPTED BY BORROWER IN THE STATE OF NEW YORK, AND THE PROCEEDS OF THE NOTES DELIVERED PURSUANT HERETO WERE DISBURSED FROM THE STATE OF NEW YORK,
WHICH STATE THE PARTIES AGREE HAS A SUBSTANTIAL RELATIONSHIP TO THE PARTIES AND TO THE UNDERLYING TRANSACTION EMBODIED HEREBY AND BY THE OTHER LOAN DOCUMENTS, AND IN ALL RESPECTS, INCLUDING MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS
AGREEMENT, THE OTHER LOAN DOCUMENTS AND THE OBLIGATIONS ARISING HEREUNDER AND THEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE AND ANY
APPLICABLE LAW OF THE UNITED STATES OF AMERICA, EXCEPT THAT AT ALL TIMES THE PROVISIONS FOR 

  

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THE CREATION, PERFECTION, AND ENFORCEMENT OF THE LIENS AND SECURITY INTERESTS CREATED PURSUANT HERETO AND PURSUANT TO THE OTHER LOAN DOCUMENTS SHALL BE
GOVERNED BY AND CONSTRUED ACCORDING TO THE LAW OF THE COMMONWEALTH OF PENNSYLVANIA, IT BEING UNDERSTOOD THAT, TO THE FULLEST EXTENT PERMITTED BY THE LAW OF SUCH STATE, THE LAW OF THE STATE OF NEW YORK SHALL GOVERN THE VALIDITY AND THE ENFORCEABILITY
OF ALL LOAN DOCUMENTS AND ALL OF THE INDEBTEDNESS OR OBLIGATIONS ARISING HEREUNDER OR THEREUNDER EXCEPT AS EXPRESSLY OTHERWISE PROVIDED THEREIN. TO THE FULLEST EXTENT PERMITTED BY LAW, LENDER AND BORROWER HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVE
ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS, AND THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK
PURSUANT TO § 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW. 
  
 (b) ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR BORROWER ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT SHALL BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN NEW YORK, NEW YORK, PURSUANT TO § 5-1402
OF THE NEW YORK GENERAL OBLIGATIONS LAW, AND LENDER AND BORROWER EACH WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND LENDER AND BORROWER EACH HEREBY IRREVOCABLY SUBMITS TO
THE JURISDICTION OF ANY SUCH COURT IN ANY SUIT, ACTION OR PROCEEDING. BORROWER DOES HEREBY DESIGNATE AND APPOINT CT CORPORATION SYSTEMS, 1633 BROADWAY, NEW YORK, NY 10019 OR SUCH OTHER OFFICE IN NEW YORK, NEW YORK AS MAY BE DESIGNATED FROM TIME TO
TIME, AS ITS AUTHORIZED AGENT TO ACCEPT AND ACKNOWLEDGE ON ITS BEHALF SERVICE OF ANY AND ALL PROCESS WHICH MAY BE SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING IN ANY FEDERAL OR STATE COURT IN NEW YORK, NEW YORK, AND AGREES THAT SERVICE OF PROCESS
UPON SAID AGENT AT SAID ADDRESS AND WRITTEN NOTICE OF SAID SERVICE OF BORROWER MAILED OR DELIVERED TO BORROWER IN THE MANNER PROVIDED HEREIN SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON BORROWER IN ANY SUCH SUIT, ACTION OR
PROCEEDING IN THE STATE OF NEW YORK. BORROWER (I) SHALL GIVE PROMPT NOTICE TO LENDER OF ANY CHANGED ADDRESS OF ITS AUTHORIZED AGENT HEREUNDER, (II) MAY AT ANY TIME AND FROM TIME TO TIME DESIGNATE A SUBSTITUTE AUTHORIZED AGENT WITH AN OFFICE IN NEW
YORK, NEW YORK (WHICH OFFICE SHALL BE DESIGNATED AS THE ADDRESS FOR SERVICE OF PROCESS), AND (III) SHALL PROMPTLY DESIGNATE SUCH A SUBSTITUTE IF ITS AUTHORIZED AGENT CEASES TO HAVE AN OFFICE IN NEW YORK, NEW YORK OR IS DISSOLVED WITHOUT LEAVING A
SUCCESSOR. 
  
 Section 11.4 Modification, Waiver in
Writing. No modification, amendment, extension, discharge, termination or waiver of any provision of this Agreement, or of any Note, or of any other Loan Document, nor consent to any departure by Borrower therefrom, shall in 

  

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any event be effective unless the same shall be in a writing signed by the party against whom enforcement is sought, and then such waiver or consent shall be
effective only in the specific instance, and for the purpose, for which given. Except as otherwise expressly provided herein, no notice to, or demand on Borrower, shall entitle Borrower to any other or future notice or demand in the same, similar or
other circumstances. 
  
 Section 11.5 Delay Not a Waiver.
Neither any failure nor any delay on the part of Lender in insisting upon strict performance of any term, condition, covenant or agreement, or exercising any right, power, remedy or privilege hereunder, or under any Note or under any other Loan
Document, or any other instrument given as security therefor, shall operate as or constitute a waiver thereof, nor shall a single or partial exercise thereof preclude any other future exercise, or the exercise of any other right, power, remedy or
privilege. In particular, and not by way of limitation, by accepting payment after the due date of any amount payable under this Agreement, any Note or any other Loan Document, Lender shall not be deemed to have waived any right either to require
prompt payment when due of all other amounts due under this Agreement, the Notes or the other Loan Documents, or to declare a default for failure to effect prompt payment of any such other amount. 
  
 Section 11.6 Notices. All notices, consents, approvals and requests
required or permitted hereunder or under any other Loan Document shall be given in writing and shall be effective for all purposes if hand delivered or sent by (a) certified or registered United States mail, postage prepaid, or (b) expedited prepaid
delivery service, either commercial or United States Postal Service, with proof of attempted delivery, or (c) by facsimile, addressed as follows (or at such other address and person as shall be designated from time to time by any party hereto, as
the case may be, in a written notice to the other parties hereto in the manner provided for in this Section): 
  
 If to Lender: 
  
 Goldman Sachs Mortgage Company 
 85 Broad
Street 
 New York, New York 10004 
 Attention: Steven Mnuchin 
 Facsimile Number: 212-902-1691 
  
 with a copy to: 
  
 Paul, Weiss, Rifkind, Wharton and Garrison 
 1285 Avenue of the Americas 
 New York, New York 10019-6064 
 Attention: Steven Simkin, Esq. 
 Facsimile
Number: 212-757-3990 
  

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 If to Borrower: 
  

c/o Thomas Development Partners 
 2005
Market Street 
 Suite 2010 
 Philadelphia, PA 19103 
 Attention: Randall Scott 
 Facsimile Number: 215-851-6021 
  
 with copies to: 
  
 Thomas Development Partners

 355 South Grand Avenue 
 Suite
4500 
 Los Angeles, CA 90071 
 Attention: James A. Thomas 
 Facsimile Number: 213-687-4440 
  
 and 
  
 Gilchrist & Rutter 
 1299 Ocean Avenue

 Suite 900 
 Santa Monica, CA
90401 
 Attention: Paul Rutter, Esq. 
 Facsimile Number: 310-394-4700 
  
 and 
  
 Atlantic American Properties Trust 
 c/o Lazard Frères Real Estate Investors, L.L.C. 
 30 Rockefeller Plaza, 63rd Floor 
 New York, New York 10020 
 Attention: Murry N. Gunty 
                     Klaus E. Kretschmann 
 Facsimile Number: 212-332-5980 
  
 and 
  
 Latham & Watkins 
 Attorneys at Law 
 885 Third Avenue

 Suite 1000 
 New York, New York
10022 
 Attention: James I. Hisiger, Esq. 
 Facsimile Number: 212-751-4864 
  

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 A notice shall be deemed to have been given in the case of hand delivery, at the time of delivery on a Business day
during business hours; in the case of registered or certified mail, when delivered or the first attempted delivery on a Business Day during business hours; in the case of expedited prepaid delivery, upon the first attempted delivery on a Business
Day during business hours; or in the case of facsimile notice, when sent and electronically confirmed on a Business Day during business hours, and, in each case, if such delivery is made other than on a Business Day during business hours, such
delivery shall be deemed to have been made on the next succeeding Business Day. 
  
 Section 11.7 Trial by Jury. EACH OF LENDER AND BORROWER HEREBY AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVES ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH
RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THE LOAN DOCUMENTS, OR ANY CLAIM, COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY LENDER AND BORROWER AND IS
INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE. EACH OF LENDER AND BORROWER IS HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE
EVIDENCE OF THIS WAIVER BY THE OTHER PARTY(IES). 
  
 Section 11.8
Headings. The Article and/or Section headings and the Table of Contents in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose. 
  
 Section 11.9 Severability. Wherever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such
prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement. 
  
 Section 11.10 Preferences. Subject to Article IX, Lender shall have the continuing and exclusive right to apply or reverse and reapply any and all
payments by Borrower to any portion of the obligations of Borrower hereunder. To the extent Borrower makes a payment or payments to Lender, which payment or proceeds or any part thereof are subsequently invalidated, declared to be fraudulent or
preferential, set aside or required to be repaid to a trustee, receiver or any other party under any bankruptcy law, state or federal law, common law or equitable cause, then, to the extent of such payment or proceeds received, the obligations
hereunder or part thereof intended to be satisfied shall be revived and continue in full force and effect, as if such payment or proceeds had not been received by Lender. 
  
 Section 11.11 Waiver of Notice. Borrower shall not be entitled to any notices of any nature whatsoever from Lender
except with respect to matters for which this Agreement or the other Loan Documents specifically and expressly provide for the giving of notice by Lender to Borrower and except with respect to matters for which Borrower is not, pursuant to
applicable Legal Requirements, permitted to waive the giving of notice. Borrower hereby expressly waives 

  

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the right to receive any notice from Lender with respect to any matter for which this Agreement or the other Loan Documents do not specifically and expressly
provide for the giving of notice by Lender to Borrower. 
  
 Section 11.12 Remedies of Borrower; Consents. In the event that a claim or adjudication is made that Lender or its agents, including Servicer or Special Servicer, have acted unreasonably or unreasonably delayed (or refrained from),
acting in any case where by law or under this Agreement or the other Loan Documents, Lender or such agent, as the case may be, has an obligation to act reasonably or promptly, Borrower agrees that neither Lender nor its agents, including Servicer
and Special Servicer, shall be liable for any monetary damages, and Borrower’s sole remedies shall be limited to commencing an action seeking injunctive relief or declaratory judgment, except in any instance in which it has been finally
determined that Lender’s action, delay or inaction has constituted gross negligence, fraud, willful misconduct or an illegal act. The parties hereto agree that any action or proceeding to determine whether Lender has acted reasonably shall be
determined by an action seeking declaratory judgment. 
  
 Section
11.13 Expenses; Indemnity. (a) Borrower covenants and agrees to reimburse Lender upon receipt of written notice from Lender for (i) all reasonable costs and expenses incurred by or on behalf of Lender in connection with Borrower’s
ongoing performance of and compliance with Borrower’s respective agreements and covenants contained in this Agreement and the other Loan Documents on its part to be performed or complied with after the Closing Date, including confirmation by
the Lender of compliance with environmental and insurance requirements; (ii) all reasonable costs and expenses incurred by or on behalf of Lender in connection with the negotiation, preparation, execution, delivery and administration of any
consents, amendments, waivers or other modifications to this Agreement and the other Loan Documents requested by Borrower, and any other documents or matters reasonably requested by Lender after the Closing Date; (iii) filing and recording fees and
expenses, title insurance, reasonable fees and expenses of counsel for providing to Lender all legal opinions required after the Closing Date, and other similar expenses incurred in maintaining the Liens in favor of Lender pursuant to this Agreement
and the other Loan Documents; (iv) all costs and expenses incurred by or on behalf of Lender in connection with enforcing or preserving any rights, in response to third party claims or the prosecuting or defending of any action or proceeding or
other litigation, in each case against, under or affecting Borrower, this Agreement, the other Loan Documents, the Property or any other security given for the Loan, and (v) all costs and expenses incurred by or on behalf of Lender in connection
with enforcing any obligations of or collecting any payments due from Borrower under this Agreement, the other Loan Documents or with respect to the Property or in connection with any refinancing or restructuring of the credit arrangements provided
under this Agreement in the nature of a “work-out” or of any insolvency or bankruptcy proceedings; provided, however, Borrower shall not be liable for the payment of any such costs and expenses to the extent the same arise by
reason of the gross negligence, illegal acts, fraud or willful misconduct of Lender. Any costs and expenses due and payable to Lender hereunder which are not paid by Borrower within ten (10) Business Days after demand may be paid from any amounts in
the Deposit Account, with notice thereof to Borrower. 
  
 (b)
Borrower shall indemnify and hold harmless Lender from and against any and all other liabilities, obligations, losses, damages, penalties, actions, judgments, suits, claims, costs, expenses and disbursements of any kind or nature whatsoever
(including the reasonable 

  

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fees and disbursements of counsel for Lender in connection with any investigative, administrative or judicial proceeding commenced or threatened, whether or
not Lender shall be designated a party thereto), that may be imposed on, incurred by, or asserted against Lender in any manner relating to or arising out of any breach by Borrower of its obligations under, or any material misrepresentation by
Borrower contained in this Agreement or the other Loan Documents; provided, however, Borrower shall not be liable for the payment of any such costs and expenses to the extent the same arise by reason of the gross negligence, illegal
acts, fraud or willful misconduct of Lender. Any costs and expenses due and payable to Lender hereunder which are not paid by Borrower within ten (10) Business Days after demand may be paid from any amounts in the Deposit Account with notice thereof
to Borrower. 
  
 (c) The provisions of Section 11.13(a)(iv) and
11.13(b) shall survive the expiration and termination of this Agreement and the repayment of the Debt. 
  
 Section 11.14 Exhibits and Schedules Incorporated. The Exhibits and Schedules annexed hereto are hereby incorporated herein as a part of this
Agreement with the same effect as if set forth in the body hereof. 
  
 Section 11.15 Offsets, Counterclaims and Defenses. Any assignee of Lender’s interest in and to this Agreement, the Notes and the other Loan Documents shall take the same free and clear of all offsets, counterclaims or defenses
which are unrelated to such documents which Borrower may otherwise have against any assignor of such documents, and no such unrelated counterclaim or defense shall be interposed or asserted by Borrower in any action or proceeding brought by any such
assignee upon such documents and any such right to interpose or assert any such unrelated offset, counterclaim or defense in any such action or proceeding is hereby expressly waived by Borrower. 
  
 Section 11.16 No Joint Venture or Partnership. Borrower and Lender
intend that the relationships created hereunder and under the other Loan Documents be solely that of borrower and lender. Nothing herein or therein is intended to create a joint venture, partnership, tenancy-in-common, or joint tenancy relationship
between Borrower and Lender nor to grant Lender any interest in the Property other than that of mortgagee or lender. 
  
 Section 11.17 Publicity. Except in connection with publicity relating to or facilitating a Securitization or as otherwise set forth in the
Cooperation Agreement (with respect to any of which Lender may refer to Thomas Development Partners and may refer to Lazard Frères and their respective Affiliates), all news releases, publicity or advertising by Lender, Borrower or their
respective Affiliates through any media intended to reach the general public which refers to the Loan Documents or the financing evidenced by the Loan Documents, or to Lender, Borrower, Goldman, the Loan purchaser, the Servicer or the trustee in a
Securitization, shall be subject to the prior written approval of all such parties. 
  
 Section 11.18 Waiver of Marshaling of Assets. To the fullest extent Borrower may legally do so, Borrower waives all rights to a marshaling of the assets of Borrower, Borrower’s partners, if any, and others
with interests in Borrower, and of the Property, or to a sale in inverse order of alienation in the event of foreclosure of the interests hereby created, and agrees not to assert any right under any laws pertaining to the marshaling of assets, the
sale in 

  

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inverse order of alienation, homestead exemption, the administration of estates of decedents, or any other matters whatsoever to defeat, reduce or affect the
right of Lender under the Loan Documents to a sale of the Property for the collection of the Debt without any prior or different resort for collection, of the right of Lender to the payment of the related Debt out of the net proceeds of the Property
in preference to every other claimant whatsoever. 
  
 Section
11.19 Waiver of Counterclaim. Borrower hereby waives the right to assert a counterclaim, other than a compulsory counterclaim, in any action or proceeding brought against it by Lender or its agents, including Servicer and Special Servicer.

  
 Section 11.20 Conflict; Construction of Documents. In
the event of any conflict between the provisions of this Agreement and any of the other Loan Documents, the provisions of this Agreement shall control. The parties hereto acknowledge that they were represented by counsel in connection with the
negotiation and drafting of the Loan Documents and that such Loan Documents shall not be subject to the principle of construing their meaning against the party which drafted same. 
  
 Section 11.21 Brokers and Financial Advisors. (a) Borrower hereby represents that it has dealt with no financial
advisors, brokers, underwriters, placement agents, agents or finders in connection with the transactions contemplated by this Agreement. Borrower hereby indemnifies Lender and its affiliates and holds Lender and its affiliates each harmless from and
against any and all claims, liabilities, costs and expenses (including, without limitation, reasonable attorneys’ fees and disbursements) of any kind in any way relating to or arising from a claim by any Person that such Person acted on behalf
of Borrower or its affiliates or any of its agents or representatives in connection with the transactions contemplated herein. The provisions of this Section 11.21(a) shall survive the expiration and termination of this Agreement and the repayment
of the Debt. 
  
 (b) Lender hereby represents that it has dealt
with no brokers or finders in connection with the transactions contemplated by this Agreement, other than Goldman. Lender hereby indemnifies Borrower and its respective affiliates and holds Borrower and its respective affiliates, each harmless from
and against any and all claims, liabilities, costs and expenses (including, without limitation, reasonable attorneys’ fees and disbursements) of any kind in any way relating to or arising from a claim by any Person (including, without
limitation, Goldman) that such Person acted on behalf of Lender or its affiliates or any of its agents or representatives in connection with the transactions contemplated herein. The provisions of this Section 11.21(b) shall survive the expiration
and termination of this Agreement and the repayment of the Debt. 
  
 Section 11.22 No Third Party Beneficiaries. This Agreement and the other Loan Documents are solely for the benefit of Lender and Borrower, and nothing contained in this Agreement or the other Loan Documents shall be deemed to confer
upon anyone other than Lender and Borrower any right to insist upon or to enforce the performance or observance of any of the obligations contained herein or therein. All conditions to the obligations of Lender to make the Loan hereunder are imposed
solely and exclusively for the benefit of Lender, and no other Person shall have standing to require satisfaction of such conditions in accordance with their terms or be entitled to assume that Lender will refuse to make the Loan in the absence of
strict compliance with any or all thereof and no other Person shall under any circumstances be 

  

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deemed to be a beneficiary of such conditions, any or all of which may be freely waived in whole or in part by Lender if, in Lender’s sole discretion,
Lender deems it advisable or desirable to do so. 
  
 Section 11.23
Prior Agreements. This Agreement and the other Loan Documents contain the entire agreement of the parties hereto and thereto in respect of the transaction’s contemplated hereby and thereby, and all prior agreements among or between such
parties, whether oral or written, between Borrower and Lender are superseded by the terms of this Agreement and the other Loan Documents. 
  
 Section 11.24 Exculpation. Subject to the qualifications below, Lender shall not enforce the liability and obligation of Borrower to perform and
observe the obligations contained in the Notes, this Agreement, the Mortgage or the other Loan Documents by any action or proceeding wherein a money judgment shall be sought against Borrower, unless, except as expressly reserved to Lender in clause
(g) below, the judgment in any such action or proceeding shall be enforceable against Borrower only to the extent of Borrower’s interest in the Property, the Rents and any other collateral given to Lender, and Lender, by accepting the Notes,
this Agreement, the Mortgage and the other Loan Documents, agrees that it shall not sue for, seek or demand any deficiency judgment against Borrower or its direct or indirect partners or members in any such action or proceeding under or by reason of
or under or in connection with the Notes, this Agreement, the Mortgage or the other Loan Documents except, to the extent permitted by applicable law, for any deficiency judgment that shall be enforced solely against or collected solely from the
Property, the Rents or any other collateral given to Lender. The provisions of this Section shall not, however, (a) constitute a waiver, release or impairment of any obligation evidenced or secured by any of the Loan Documents; (b) impair the right
of Lender to name Borrower as a party defendant in any action or suit for foreclosure and sale under the Mortgage; (c) affect the validity or enforceability of or any guaranty or indemnity made in connection with the Loan or any of the rights and
remedies of Lender thereunder; (d) impair the right of Lender to obtain the appointment of a receiver; (e) impair the enforcement of the Assignment of Leases; (f) constitute a prohibition against Lender to seek a deficiency judgment against Borrower
in order to fully realize the security granted by the Mortgage or to commence any other appropriate action or proceeding in order for Lender to exercise its remedies against the Property; or (g) constitute a waiver of the right of Lender to enforce
the liability and obligation of Borrower (but not its limited partners), by money judgment or otherwise, to the extent of any loss, damage, cost, expense, liability, claim or other obligation incurred by Lender (including attorneys’ fees and
costs reasonably incurred), but excluding consequential damages, arising out of or in connection with (but only to the extent of) the following: 
  
 (i) fraud, gross negligence or willful misconduct by Borrower in connection with the Loan; 
  
 (ii) any liability under the Environmental Indemnity;

  
 (iii) the misappropriation by Borrower of any
Proceeds, Rents or other revenues from the Property, except to the extent such funds are applied to the payment of Operating Expenses of the Property or to pay amounts due under the Loan Documents; and 
  

 - 102 - 

 (iv) the amount of any security deposits collected with respect to the Property which are
not delivered to Lender upon a foreclosure of the Property or action in lieu thereof, except to the extent any such security deposits were applied in accordance with the terms and conditions of any of the Leases or pursuant to Applicable Law prior
to the occurrence of the Event of Default that gave rise to such foreclosure or action in lieu thereof. 
  
 Notwithstanding anything to the contrary in this Agreement or any of the Loan Documents, Lender shall not be deemed to have waived any right which Lender may have under Section 506(a), 506(b), 1111(b) or any other
provisions of the U.S. Bankruptcy Code to file a claim for the full amount of the Debt secured by the Mortgage or to require that all collateral shall continue to secure all of the Debt owing to Lender in accordance with the Loan Documents.

  
 Section 11.25 Loan Assignability by Lender. The Loan,
and all of Lender’s rights, remedies and privileges hereunder and the other Loan Documents, shall be assignable by Lender at any time and from time to time. 
  
 Section 11.26 Counterparts. This Agreement may be executed in several counterparts, each of which may be deemed to be
an original and all of which, together, shall constitute one and the same instrument. 
  
 Section 11.27 Severance. Lender shall have the right from time to time to sever each Note and the Loan Documents into one or more separate notes, mortgages and other security documents in such denominations as
Lender shall determine in its sole discretion, which severed documents shall nevertheless be held by one holder. In connection therewith, Borrower shall execute and deliver to Lender from time to time, at Lender’s sole cost and expense,
promptly after the request of Lender, a severance agreement and such other documents as Lender shall reasonably request in order to effect the severance described in the preceding sentence, all in form and substance reasonably satisfactory to Lender
and Borrower. 
  
 [remainder of this page intentionally left blank]

  

 - 103 - 

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

			
	GOLDMAN SACHS MORTGAGE COMPANY, a New York limited partnership
		
	By:	 	 Goldman Sachs Real Estate Funding Corp., its General Partner

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

  

							
	COMMERCE SQUARE PARTNERS-PHILADELPHIA PLAZA, L.P., a Delaware limited partnership
		
	By:	 	TDP-Commerce Square Gen-Par, LLC, its General Partner
			
	 	 	By:	 	 TDP-Commerce Square Gen-Par, Inc.,
 its
Managing Member

				
	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 Title:

  

							
		
	By:	 	 Prometheus Investment Holding, LLC,
 its
General Partner

			
	 	 	By:	 	 Prometheus Mid-Atlantic Holding Corp.,
 its
Managing Member

				
	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 Title:

  

 - 104 -Senior Mezzanine Loan Agreement dated 7/31/03 (TCS SPE 1, LP)

 EXHIBIT 10.16 
  
 SENIOR MEZZANINE LOAN AGREEMENT 
  
 Dated as of July 31, 2003 
  
 By and Among 
  
 PHILADELPHIA PLAZA-PHASE II, LP 
 as Borrower 
  
 TCS SPE 1, L.P. 
 as a Guarantor 
  
 and 
  
 DB REALTY MEZZANINE INVESTMENT FUND II, L.L.C.

 as Lender 
  

 TABLE OF CONTENTS 
  

					
	 	  	Page

	 I.       DEFINITIONS; PRINCIPLES OF CONSTRUCTION
	  	1
			
	 Section 1.1
	  	Definitions	  	1
			
	 Section 1.2
	  	Principles of Construction	  	22
		
	 II.     THE LOAN
	  	22
			
	 Section 2.1
	  	The Loan	  	22
			
	 2.1.1
	  	Agreement to Lend and Borrow	  	22
			
	 2.1.2
	  	Single Disbursement to Borrower	  	22
			
	 2.1.3
	  	The Note	  	22
			
	 2.1.4
	  	Use of Proceeds	  	22
			
	 2.1.5
	  	Security	  	22
			
	 Section 2.2
	  	Interest Rate	  	23
			
	 2.2.1
	  	Interest Rate	  	23
			
	 2.2.2
	  	Intentionally Omitted	  	23
			
	 2.2.3
	  	Default Rate	  	23
			
	 2.2.4
	  	Interest Calculation	  	23
			
	 2.2.5
	  	Usury Savings	  	23
			
	 Section 2.3
	  	Loan Payments	  	24
			
	 2.3.1
	  	Payment	  	24
			
	 2.3.2
	  	Intentionally Omitted	  	24
			
	 2.3.3
	  	Payment on Maturity Date	  	24
			
	 2.3.4
	  	Late Payment Charge	  	24
			
	 2.3.5
	  	Method and Place of Payment	  	24
			
	 2.3.6
	  	Payments After Event of Default	  	25
			
	 Section 2.4
	  	Prepayments	  	25
			
	 2.4.1
	  	Voluntary Prepayments	  	25
			
	 2.4.2
	  	Mandatory Prepayments	  	26
			
	 2.4.3
	  	Prepayments After Default	  	26
			
	 Section 2.5
	  	Taxes	  	26
		
	 III.    REPRESENTATIONS AND WARRANTIES
	  	27
			
	 Section 3.1
	  	Borrower Parties Representations	  	27
			
	 3.1.1
	  	Organization	  	27

  

 -i- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page

			
	 3.1.2
	  	Proceedings	  	28
			
	 3.1.3
	  	No Conflicts	  	28
			
	 3.1.4
	  	Litigation	  	28
			
	 3.1.5
	  	Agreements	  	28
			
	 3.1.6
	  	Consents	  	29
			
	 3.1.7
	  	Title	  	29
			
	 3.1.8
	  	ERISA	  	29
			
	 3.1.9
	  	Compliance	  	29
			
	 3.1.10
	  	Financial Information	  	30
			
	 3.1.11
	  	Condemnation	  	30
			
	 3.1.12
	  	Utilities and Public Access	  	30
			
	 3.1.13
	  	Separate Lots	  	30
			
	 3.1.14
	  	Assessments	  	30
			
	 3.1.15
	  	Enforceability	  	30
			
	 3.1.16
	  	Assignment of Leases	  	30
			
	 3.1.17
	  	Insurance	  	31
			
	 3.1.18
	  	Licenses	  	31
			
	 3.1.19
	  	Flood Zone	  	31
			
	 3.1.20
	  	Physical Condition	  	31
			
	 3.1.21
	  	Boundaries	  	31
			
	 3.1.22
	  	Leases	  	31
			
	 3.1.23
	  	Filing and Recording Taxes	  	32
			
	 3.1.24
	  	Single Purpose	  	32
			
	 3.1.25
	  	Tax Filings	  	36
			
	 3.1.26
	  	Solvency	  	36
			
	 3.1.27
	  	Federal Reserve Regulations	  	36
			
	 3.1.28
	  	Organizational Chart	  	37
			
	 3.1.29
	  	Bank Holding Company	  	37
			
	 3.1.30
	  	No Other Debt	  	37
			
	 3.1.31
	  	Investment Company Act	  	37
			
	 3.1.32
	  	Access/Utilities	  	37

  

 -ii- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	Page

			
	 3.1.33
	  	No Bankruptcy Filing	  	37
			
	 3.1.34
	  	Full and Accurate Disclosure	  	37
			
	 3.1.35
	  	Foreign Person	  	38
			
	 3.1.36
	  	Intentionally Omitted	  	38
			
	 3.1.37
	  	No Change in Facts or Circumstances; Disclosure	  	38
			
	 3.1.38
	  	Approved Management Agreement	  	38
			
	 3.1.39
	  	Perfection of Accounts	  	38
			
	 3.1.40
	  	Borrower Entity/Separateness	  	38
			
	 3.1.41
	  	Owner Entity/Trailing Liabilities	  	39
			
	 3.1.42
	  	No Default	  	39
			
	 3.1.43
	  	Environmental Matters	  	39
			
	 3.1.44
	  	Prescribed Laws	  	40
			
	 Section 3.2
	  	Survival of Representations	  	41
		
	 IV.   BORROWER PARTIES’ COVENANTS
	  	42
			
	 Section 4.1
	  	Affirmative Covenants	  	42
			
	 4.1.1
	  	Existence	  	42
			
	 4.1.2
	  	Maintenance of Property; Compliance with Legal Requirement	  	42
			
	 4.1.3
	  	Impositions and Other Claims	  	42
			
	 4.1.4
	  	Access to Property	  	43
			
	 4.1.5
	  	Notice of Default	  	43
			
	 4.1.6
	  	Litigation	  	43
			
	 4.1.7
	  	Cooperate in Legal Proceedings	  	43
			
	 4.1.8
	  	Leases	  	43
			
	 4.1.9
	  	Plan Assets, etc	  	46
			
	 4.1.10
	  	Further Assurances	  	46
			
	 4.1.11
	  	Management of Collateral	  	46
			
	 4.1.12
	  	Financial Reporting	  	47
			
	 4.1.13
	  	Intentionally Omitted	  	49
			
	 4.1.14
	  	Intentionally Omitted	  	49
			
	 4.1.15
	  	Insurance	  	49
			
	 4.1.16
	  	Casualty and Condemnation	  	50

  

 -iii- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	Page

			
	 4.1.17
	  	Annual Budget	  	50
			
	 4.1.18
	  	General Indemnity	  	50
			
	 4.1.19
	  	Covenants Regarding the Senior Loan	  	51
			
	 Section 4.2
	  	Borrower Parties Negative Covenants	  	52
			
	 4.2.1
	  	Liens on the Property and Collateral	  	52
			
	 4.2.2
	  	Ownership	  	52
			
	 4.2.3
	  	Transfer	  	52
			
	 4.2.4
	  	Debt	  	53
			
	 4.2.5
	  	Dissolution, Merger or Consolidation	  	53
			
	 4.2.6
	  	Change in Business	  	53
			
	 4.2.7
	  	Debt Cancellation	  	53
			
	 4.2.8
	  	Affiliate Transactions	  	53
			
	 4.2.9
	  	Misapplication of Funds	  	54
			
	 4.2.10
	  	Place of Business	  	54
			
	 4.2.11
	  	Modifications and Waivers	  	54
			
	 4.2.12
	  	ERISA	  	54
			
	 4.2.13
	  	Alterations and Expansions	  	55
			
	 4.2.14
	  	Advances and Investments	  	55
			
	 4.2.15
	  	Single-Purpose Entity	  	55
			
	 4.2.16
	  	Zoning and Uses	  	55
			
	 4.2.17
	  	Waste	  	56
			
	 4.2.18
	  	Anti-Terrorism Law	  	56
		
	 V.     [INTENTIONALLY OMITTED]
	  	56
		
	 VI.   CASH MANAGEMENT
	  	56
			
	 Section 6.1
	  	Cash Management Accounts	  	56
			
	 6.1.1
	  	Creation of Cash Management Accounts	  	56
			
	 6.1.2
	  	Lender Replacement of Senior Cash Management Bank and Agent	  	56
			
	 6.1.3
	  	Borrower Replacement of Agent	  	57
			
	 6.1.4
	  	No Modifications to Senior Cash Management Provisions	  	57
			
	 Section 6.2
	  	Deposits to and Distributions from Senior Cash Management Account	  	57

  

 -iv- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	Page

			
	 6.2.1
	  	Senior Deposit Account	  	57
			
	 6.2.2
	  	Distributions from Senior Collateral Accounts	  	57
			
	 6.2.3
	  	Distributions from Borrower Disbursement Account	  	58
			
	 Section 6.3
	  	Capital Expenditure/Leasing Funds	  	58
			
	 6.3.1
	  	Deposits of Capital Expenditure/Leasing Funds	  	58
			
	 6.3.2
	  	Lender Approval of Withdrawal of Capital Expenditure/Leasing Funds	  	58
			
	 Section 6.4
	  	Lease Termination Funds	  	61
			
	 6.4.1
	  	Deposits of Lease Termination Funds	  	61
			
	 6.4.2
	  	Lender Approval of Withdrawal of Lease Termination Leasing Funds	  	61
			
	 Section 6.5
	  	Distributions from the Mezzanine Collection Account	  	63
			
	 6.5.1
	  	Mezzanine Collection Account	  	63
			
	 6.5.2
	  	Transfer of Senior Collateral Accounts	  	63
			
	 6.5.3
	  	Shortfalls in Mezzanine Collection Account	  	63
			
	 Section 6.6
	  	Distributions from the Senior Mezzanine Leasing Reserve Account	  	63
			
	 6.6.1
	  	Senior Mezzanine Leasing Reserve Account	  	63
		
	VII. [INTENTIONALLY OMITTED]	  	64
		
	VIII. [INTENTIONALLY OMITTED]	  	64
		
	 IX.   CONDITIONS PRECEDENT
	  	64
			
	 Section 9.1
	  	Additional Rights of Lender	  	64
		
	 X.     DEFAULTS
	  	67
			
	 Section 10.1
	  	Event of Default	  	67
			
	 Section 10.2
	  	Remedies	  	69
			
	 Section 10.3
	  	No Waiver	  	70
			
	 Section 10.4
	  	Application of Payments After an Event of Default	  	70
		
	 XI.   MISCELLANEOUS
	  	70
			
	 Section 11.1
	  	Successors and Assigns	  	70
			
	 Section 11.2
	  	Lender’s Discretion	  	71
			
	 Section 11.3
	  	Governing Law	  	71
			
	 Section 11.4
	  	Modification, Waiver in Writing	  	72

  

 -v- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	Page

			
	 Section 11.5
	  	Delay Not a Waiver	  	72
			
	 Section 11.6
	  	Notices	  	73
			
	 Section 11.7
	  	Trial by Jury	  	74
			
	 Section 11.8
	  	Headings	  	74
			
	 Section 11.9
	  	Severability	  	74
			
	 Section 11.10
	  	Preferences	  	75
			
	 Section 11.11
	  	Waiver of Notice	  	75
			
	 Section 11.12
	  	Remedies of Borrower	  	75
			
	 Section 11.13
	  	Expenses	  	75
			
	 Section 11.14
	  	Schedules Incorporated	  	76
			
	 Section 11.15
	  	Offsets, Counterclaims and Defenses	  	76
			
	 Section 11.16
	  	No Joint Venture or Partnership; No Third Party Beneficiaries	  	76
			
	 Section 11.17
	  	Publicity	  	77
			
	 Section 11.18
	  	Waiver of Marshalling of Assets	  	77
			
	 Section 11.19
	  	Waiver of Offsets/Defenses/Counterclaims	  	77
			
	 Section 11.20
	  	Conflict; Construction of Documents; Reliance	  	77
			
	 Section 11.21
	  	Brokers and Financial Advisors	  	78
			
	 Section 11.22
	  	Exculpation	  	78
			
	 Section 11.23
	  	Prior Agreements	  	80
			
	 Section 11.24
	  	Servicer	  	80
			
	 Section 11.25
	  	Joint and Several Liability	  	81
			
	 Section 11.26
	  	Creation of Security Interest	  	81
			
	 Section 11.27
	  	Assignments and Participations	  	81
			
	 Section 11.28
	  	Estoppel Certificates	  	83
			
	 Section 11.29
	  	Counterparts	  	83
			
	 Section 11.30
	  	Conrail Payment Agreement	  	83
			
	 Section 11.31
	  	Confidentiality	  	83

  

 -vi- 

 SCHEDULES AND EXHIBITS 
  

			
	 Schedules

	    	 
		
	 Schedule I
	    	Debt Service
		
	 Schedule II
	    	Monthly Senior Debt Service Payments
		
	 Schedule 3.1.9
	    	Compliance
		
	 Schedule 3.1.10
	    	Liabilities
		
	 Schedule 3.1.22
	    	Rent Roll; Leases
		
	 Schedule 3.1.28
	    	Organizational Chart
		
	 Schedule 3.1.43
	    	Environmental Matters
		
	 Schedule 9.1
	    	Tenants and Subtenants
		
	 Exhibits

	    	 
		
	Exhibit A	    	Senior Cash Management Agreement
		
	Exhibit B	    	Form Lease

  

 SENIOR MEZZANINE LOAN AGREEMENT 
  
 THIS SENIOR MEZZANINE LOAN AGREEMENT, dated as of July 31, 2003 (as amended, restated, replaced, supplemented or otherwise
modified from time to time, this “Agreement”), by and among DB REALTY MEZZANINE INVESTMENT FUND II, L.L.C., a Delaware limited liability company, having an address at 1251 Avenue of the Americas, 9th Floor, New York, New York 10020
(“Lender”), PHILADELPHIA PLAZA-PHASE II, LP, a Pennsylvania limited partnership, having an address c/o Thomas Properties Group LLC, 515 South Flower, Suite 600, Los Angeles, California 90071 (“Borrower”) and TCS SPE
1, L.P., a Delaware limited partnership, having an address c/o Thomas Properties Group LLC, 515 South Flower, Suite 600, Los Angeles, California 90071 (“Senior Mezzanine Guarantor”). 
  
 All capitalized terms used herein shall have the respective meanings set
forth in Article I hereof. 
  
 W I T N
E S S E T H: 
  
 WHEREAS, Borrower desires to obtain from Lender the Loan (as hereinafter defined) in connection with the financing of the property known as Two Commerce Square, Philadelphia, Pennsylvania; and 
  
 WHEREAS, Lender is willing to make the Loan on the terms and conditions
hereof if Borrower and Senior Mezzanine Guarantor join in the execution and delivery of this Agreement, and Borrower executes and delivers the Note and causes the other Loan Documents to be executed which shall establish the terms and conditions of
the Loan; 
  
 NOW, THEREFORE, in consideration of the making of
the Loan by Lender, the covenants, agreements, representations and warranties set forth in this Agreement, and other good consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby covenant, agree, represent and
warrant as follows: 
  

	 	I.	DEFINITIONS; PRINCIPLES OF CONSTRUCTION 

  
 Section 1.1 Definitions. For all purposes of this Agreement, except as otherwise expressly provided: 
  
 “Account Collateral” shall mean, collectively, the
Collateral Accounts and all sums at any time held, deposited or invested therein, together with any interest or other earnings thereon, and all proceeds thereof (including proceeds of sales and other dispositions), whether accounts, general
intangibles, chattel paper, deposit accounts, instruments, documents or securities. 
  
 “Adjusted Rate” Shall mean, as of the Closing Date, 17.10218% per annum, which rate shall be adjusted as necessary so that as of Monthly Payment Date, the weighted average of the Adjusted Rate
hereunder and the “Interest Rate” under the Senior Note (taking into consideration the interest rate and principal amount of the Note and the Senior Note, but not any default rate under the Senior Note) shall at all times equal 9.23%.

  

 “Affiliate” shall mean, as to any Person, any other Person that, directly or
indirectly, owns more than forty percent (40%) of, is in control of, is controlled by or is under common ownership or control with such Person or is a director or officer of such Person or of an Affiliate of such Person. As used in this definition,
the term “control” shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management, policies or activities of a Person, whether through ownership of voting securities, by contract
or otherwise. 
  
 “Agent” shall mean PNC
Bank N.A. and any successor Eligible Institution thereto permitted in accordance with the Mezzanine Cash Management Agreement. 
  
 “ALTA” shall mean American Land Title Association, or any successor thereto. 
  
 “Annual Budget” shall mean the operating and capital
budget for the Property setting forth Borrower’s good faith estimate of Gross Revenue, Operating Expenses, and Capital Expenditures for the applicable Fiscal Year. 
  
 “Approved Budget” shall have the meaning set forth in Section 4.1.17. 
  
 “Approved Management Agreement” shall mean that
certain Amended and Restated Management and Leasing Agreement, dated as of July 1, 1997 between Borrower and the Approved Property Manager, as such agreement has been collaterally assigned to Senior Lender and may be Modified in accordance herewith,
and any other management or leasing agreement with respect to the Property approved in writing by Lender. 
  
 “Approved Property Manager” shall mean Thomas Development Partners, LP or any successor permitted in accordance with this
Agreement. 
  
 “Assignment of Leases”
shall mean that certain first priority Assignment of Leases and Rents, dated as of the date hereof, from Borrower, as assignor, to Senior Lender, as assignee, as the same may be Modified from time to time. 
  
 “Award” shall mean any compensation paid by any
Governmental Authority in connection with a Condemnation in respect of all or any part of the Property. 
  
 “Bankruptcy Code” shall mean Title 11 of the United States Code entitled “Bankruptcy”, as Modified from time to time,
and any successor statute or statutes and all rules and regulations from time to time promulgated thereunder, and any comparable foreign laws relating to bankruptcy, insolvency or creditors’ rights. 
  
 “Borrower” shall mean Philadelphia Plaza-Phase II,
LP, a Pennsylvania limited partnership, together with its permitted successors and permitted assigns. 
  
 “Borrower Disbursement Account” shall mean the “Borrower Disbursement Account” described in the Senior Cash Management
Agreement. 
  
 “Borrower GP” shall mean
TCS Genpar, LLC, a Delaware limited liability company, the general partner of the Borrower. 
  

 -2- 

 “Borrower Parties” shall mean, jointly and severally, Borrower and Senior
Mezzanine Guarantor. 
  
 “Borrower’s
Knowledge” shall mean the actual knowledge of any one or more of James Thomas and Randall Scott, which Borrower hereby represents includes the persons charged with the management and day-to-day operations of the Borrower and the
Property; provided that, other than with respect to the Guaranty executed by James A. Thomas in support of the Loan, such individuals shall in no way be personally liable under this Agreement, the other Loan Documents or with respect to the Loan
based on the use of the term “Borrower’s Knowledge” in this Agreement. 
  
 “Budgeted Operating Expenses” shall mean with respect to any calendar month, (i) an amount equal to the operating expenditures for such calendar month in the Approved Budget, or (ii) such
greater amount as shall equal Borrower’s actual operating expenditures for such month, provided that such greater amount may in no event exceed 105% of the amount specified in clause (i) without the prior written consent of Lender,
which, so long as no Event of Default has occurred and is continuing, shall not be unreasonably withheld or delayed. 
  
 “Business Day” shall mean any day other than a Saturday, a Sunday or a legal holiday on which national banks are not open for
general business in (i) the State of New York, (ii) the state where the corporate trust office of the Trustee is located, or (iii) the state where the servicing offices of the Servicer are located. 
  
 “Capital Expenditures” for any period shall mean
amounts expended for replacements and alterations to the Property and required to be capitalized according to GAAP. 
  
 “Capital Expenditure Funds” shall have the meaning set forth in Section 6.3.2(b). 
  
 “Capital Expenditure/Leasing Account” shall mean the
“Capital Expenditure/Leasing Account” described in the Senior Cash Management Agreement. 
  
 “Capital Expenditure/Leasing Funds Amount” shall mean (a) with respect to the period of time from the Closing Date but prior to
July 1, 2009, an amount equal to $178,739.25 and (b) with respect to the period of time from and after July 1, 2009 through the Maturity Date, an amount equal to $79,439.67. 
  
 “Capital Expenditures Work” shall mean any labor performed or materials installed in connection with
any Capital Expenditure. 
  
 “Capital
Expenditure/Leasing Funds” shall have the meaning set forth in Section 6.3.1. 
  
 “Cash Management Agreements” shall mean, collectively, the Senior Cash Management Agreement and the Mezzanine Cash Management Agreement. 
  
 “Casualty” shall mean the occurrence of any casualty,
damage or injury, by fire or otherwise, to the Property or any part thereof. 
  

 -3- 

 “Closing Date” shall mean the date of funding the Loan. 
  
 “Code” shall mean the Internal Revenue Code of 1986,
as amended, and as it may be further Modified from time to time, any successor statutes thereto, and applicable U.S. Department of Treasury regulations issued pursuant thereto in temporary or final form. 
  
 “Collateral” shall mean, collectively, the following:
(i) all the Equity Interests in the Borrower (other than those held by Borrower GP), the Borrower GP, the Senior Mezzanine Guarantor, the Common GP, the Junior A Mezzanine Guarantor, the Junior B Mezzanine Guarantor, the Thomas Majority Partner, the
Minority Borrower Partner, Thomas Development Partners—Phase II, Inc., a California corporation and TCS SPE Associates, L.P., a Delaware limited partnership; (ii) the Account Collateral; (iii) all other collateral under the Pledge Agreements,
and (iv) all other tangible and intangible property in respect of which Lender is granted a security interest or pledge under the Loan Documents. 
  
 “Collateral Accounts” shall mean, collectively, collectively, the Mezzanine Collection Account and the Senior Mezzanine Leasing
Reserve Account. 
  
 “Collateral
Obligations” shall have the meaning set forth in Section 11.22(a). 
  
 “Collateral Providers” shall have the meaning set forth in Section 11.22(a). 
  
 “Common GP” shall mean TCS Mezzanine GP, LLC, a Delaware limited liability company, which is the general partner of each Mezzanine
Guarantor. 
  
 “Condemnation” shall mean a
temporary or permanent taking by any Governmental Authority as the result or in lieu or in anticipation of the exercise of the right of condemnation or eminent domain, of all or any part of the Property, or any interest therein or right accruing
thereto, including any right of access thereto or any change of grade affecting the Property or any part thereof. 
  
 “Conrail Payment Agreement” shall mean that certain Payment Agreement, dated as of March 29, 1990, by and between Thomas Majority
Partner and Consolidated Rail Corporation, a Pennsylvania corporation (“Conrail”), as amended pursuant to that certain Amendment to Payment Agreement, dated as of June 23, 1997, by and between Conrail and Thomas Majority Partner.

  
 “Contingent Obligation” shall mean any
obligation directly or indirectly guaranteeing any Indebtedness of any other Person in any manner and any contingent obligation to purchase, to provide funds for payment, to supply funds to invest in any other Person or other forms of credit
enhancement (including pledges of property) that assure a creditor against loss. 
  
 “Damages” shall mean to a party any and all liabilities, obligations, losses, damages, penalties, assessments, actions, judgments, debts, suits, claims, losses, fines, charges, fees, costs,
expenses (including reasonable attorneys’ fees whether or not suit is brought), settlement costs, amounts paid in settlement of whatever kind and nature and disbursements imposed on, incurred by or asserted against such party, other than
punitive and consequential 

  

 -4- 

 
damages (unless such punitive or consequential damages are imposed on or asserted against Indemnified Parties by third parties). 
  
 “Debt” shall mean the outstanding principal amount of
the Loan together with all interest accrued and unpaid thereon and all other sums (including the Yield Maintenance Payment if payable pursuant to the terms hereof) due to Lender in respect of the Loan under the Note, this Agreement, the Pledge
Agreements, the Guaranties or any other Loan Document. 
  
 “Debt Service” shall mean, with respect to any particular period of time, payment of principal and interest with respect to the Loan I. 
  
 “Debt Service Reserve Account” means the “Debt Service Reserve Account” established
pursuant to the Senior Cash Management Agreement. 
  
 “Default” shall mean the occurrence of any event hereunder or under any other Loan Document which, but for the giving of notice or passage of time, or both, would be an Event of Default. 
  
 “Default Rate” shall mean the lesser of (a) 5% per
annum in excess of the interest rate otherwise applicable hereunder or (b) the maximum rate permitted by applicable law. 
  
 “De Minimis Releases” shall mean a Release that does not violate applicable law, is not required under applicable law to be
reported to a Governmental Authority and for which no remediation is required under applicable law (with all references to applicable law herein to include all Environmental Laws). 
  
 “Eligible Account” shall mean an identifiable account which is separate from all other funds held by
the holding institution that is either (a) an account or accounts maintained with a federal or state-chartered depository institution or trust company which complies with the definition of Eligible Institution or (b) a segregated trust account or
accounts maintained with the corporate trust department of a federal or state chartered depository institution or trust company acting in its fiduciary capacity which, in the case of a state chartered depository institution or trust company is
subject to regulations substantially similar to 12 C.F.R. § 9.10(b), having in either case a combined capital and surplus of at least $50,000,000 and subject to supervision or examination by federal and state authority. An Eligible Account will
not be evidenced by a certificate of deposit, passbook or other instrument. 
  
 “Eligible Institution” shall mean a federal or state chartered depository institution or trust company insured by the Federal Deposit Insurance Corporation the short term unsecured debt
obligations or commercial paper of which are rated at least A-1 by S&P, P-1 by Moody’s and F-1+ by Fitch in the case of accounts in which funds are held for thirty (30) days or less or, in the case of Letters of Credit or accounts in which
funds are held for more than thirty (30) days, the long term unsecured debt obligations of which are rated at least “AA” by Fitch and S&P and “Aa2” by Moody’s. 
  
 “Environmental Claim” shall mean any notice, claim,
proceeding, investigation or demand by any Person or Governmental Authority received in writing by either Borrower 

  

 -5- 

 
Party alleging or asserting liability with respect to either Borrower Party or the Property arising out of, based on or resulting from (i) any violation of
any Environmental Law, or (ii) the presence, Use or Release of any Hazardous Substance in violation of Environmental Laws. 
  
 “Environmental Indemnity” shall mean that certain Environmental Indemnity Agreement dated as of the date hereof executed by Senior
Mezzanine Guarantor in connection with the Loan for the benefit of Lender. 
  
 “Environmental Laws” shall mean any and all present and future federal, state or local laws, statutes, ordinances or regulations, any judicial or administrative orders, decrees or judgments
thereunder applicable to the Property or Borrower, and any permits, approvals, licenses, registrations, filings and authorizations, in each case as now or hereafter in effect, relating to the pollution, protection or cleanup of the environment, or
the Use or Release of Hazardous Substances. 
  
 “Environmental Report” shall mean the Phase I Environmental Assessment of the Property, dated July 7, 2003, prepared by IVI International, Inc. 
  
 “Equity Interests” shall mean the capital stock of a corporation, the membership interests of a
limited liability company, the partnership interests in a partnership, the joint venture interests in a joint venture, and any and all other evidence or instruments of ownership in any legal entity or trust, together with all securities and other
instruments convertible, exchangeable or otherwise exercisable into or for any of the foregoing interests and all rights of distribution, voting or management rights, or rights to specific property arising in conjunction with the ownership of such
interests. 
  
 “ERISA” shall mean the
Employee Retirement Income Security Act of 1974, as Modified from time to time, and the regulations promulgated thereunder. 
  
 “ERISA Affiliate” at any time, shall mean each trade or business (whether or not incorporated) that would, at the time, be treated
together with Borrower as a single employer under Title IV or Section 302 of ERISA or Section 412 of the Code. 
  
 “Event of Default” shall have the meaning set forth in Section 10.1. 
  
 “Executive Order” shall have the meaning set forth in
the definition of “Prescribed Laws”. 
  
 “Existing Thomas Entity” shall mean each of the Thomas Majority Partner, the Minority Borrower Partner, and the Borrower. 
  
 “Extraordinary Expense” shall mean an emergency operating expense not set forth in the Approved Budget for which each of the
following is true: (i) such operating expense is incurred in order to prevent or remediate an imminent threat to the Property or to the health and safety of any Person and (ii) there is no reasonable opportunity to provide notice to Lender prior to
incurring such emergency operating expense. 
  

 -6- 

 “Fiscal Year” shall mean each twelve month period commencing on January 1 and
ending on December 31 during each year of the term of the Loan 
  
 “Fitch” shall mean Fitch, Inc. 
  
 “Form Lease” shall have the meaning set forth in Section 4.1.8(c). 
  
 “GAAP” shall mean generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting
Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board (or agencies with similar functions of comparable stature and authority within the accounting
profession), or in such other statements by such entity as may be in general use by significant segments of the U.S. accounting profession. 
  
 “Generator Account” means the “Generator Account” established pursuant to the Senior Cash Management Agreement.

  
 “Governmental Authority” shall mean
any court, board, agency, commission, office or authority of any nature whatsoever or any governmental unit (federal, state, county, district, municipal, city or otherwise) whether now or hereafter in existence. 
  
 “Gross Revenue” shall mean all revenue, derived from
the ownership and operation of the Property from whatever source, including, but not limited to, Rents, but excluding sales, use and occupancy or other taxes on receipts required to be accounted for by Borrower to any Governmental Authority,
non-recurring revenues, proceeds from the sale or refinancing of the Property, security deposits (except to the extent properly utilized to offset a loss of Rent in accordance with the terms of the applicable Lease), utility and other similar
deposits, refunds and uncollectible accounts, proceeds from sales of furniture, fixtures and equipment, proceeds of casualty insurance and Awards (other than business interruption or other loss of income insurance related to business interruption or
loss of income for the period in question), and any disbursements to Borrower from the Reserve Funds or any other fund established by the Senior Loan Documents or the Loan Documents. 
  
 “Guaranty or Guaranties” shall mean (i) that certain Guaranty of even date herewith from the Senior
Mezzanine Guarantor for the benefit of Lender or any replacement guaranty issued pursuant to the terms thereof, (ii) that certain Guaranty Obligations of even date herewith from Sponsor Guarantor for the benefit of Lender or any replacement guaranty
issued pursuant to the terms thereof, (iii) that certain Guaranty of even date herewith from James A. Thomas for the benefit of Lender, and (iv) any other guaranty executed subsequent to the Closing Date provided in support of the Loan. 

 
 “Guarantors” shall mean each of the Senior
Mezzanine Guarantor, Sponsor Guarantor, James A. Thomas, and any other Person who provides a guaranty in support of the Loan. 
  
 “Hazardous Substance” shall mean petroleum and petroleum products and compounds containing them, including gasoline, diesel fuel
and oil; explosives and flammable materials; radioactive materials; polychlorinated biphenyls and compounds containing them; lead 

  

 -7- 

 
and lead-based paint; asbestos or asbestos-containing materials in any form that is or could become friable; any substance the presence of which in the
Property is prohibited by any federal, state or local authority; and any other material or substance now or in the future defined as a “hazardous substance,” “hazardous material,” “hazardous waste,” “extremely
hazardous waste,” “toxic substance,” “toxic pollutant,” “contaminant,” “pollutant” or other words of similar import within the meaning of any Environmental Law. 
  
 “Improvements” shall have the meaning set forth in
the granting clause of the Mortgage. 
  
 “Indebtedness” shall mean, with respect to any Person, without duplication: 
  
 (a) all indebtedness of such Person to any other party (regardless of whether such indebtedness is evidenced by a written instrument such as a note, bond
or debenture), including indebtedness for borrowed money or for the deferred purchase price of property or services; 
  
 (b) all letters of credit issued for the account of such Person and all unreimbursed amounts drawn thereunder; 
  
 (c) all indebtedness secured by a Lien on any property owned by such Person
(whether or not such indebtedness has been assumed) except obligations for impositions which are not yet due and payable; 
  
 (d) all Contingent Obligations of such Person; 
  
 (e) all payment obligations of such Person under any interest rate protection agreement (including any interest rate swaps, floors, collars or similar
agreements) and similar agreements; and 
  
 (f) all contractual
indemnity obligations (other than ordinary course indemnity obligations set forth in such Person’s organizational documents and repayment or contribution obligations pursuant to guaranties issued by or for the benefit of such Person) of such
Person not entered into in the ordinary course of business. 
  
 For purposes of clarification, the Preferred Equity Investment shall not be considered to be Indebtedness for purposes of this Agreement. 
  
 “Indemnified Parties” shall have the meaning set forth in Section 4.1.18. 
  
 “Independent Director” shall have the meaning set
forth in Section 3.1.24(t). 
  
 “Insolvency
Opinion” shall mean that certain bankruptcy nonconsolidation opinion letter dated the date hereof delivered by Pircher, Nichols & Meeks in connection with the Loan. 
  
 “Insurance Funds” shall have the meaning set forth in Section 6.3.1. 
  

 -8- 

 “Insurance Premiums” shall have the meaning set forth in the Senior Loan
Agreement. 
  
 “Insurance Requirements”
shall mean, collectively, (i) all material terms of any insurance policy required pursuant to this Agreement and (ii) all material regulations and then-current standards applicable to or affecting the Property or any portion thereof or any use or
condition thereof, which may, at any time, be recommended by the board of fire underwriters, if any, having jurisdiction over the Property, or any other body exercising similar functions. 
  
 “Interest Period” shall mean (a) for the first interest period hereunder, (i) if the Closing Date
occurs before the eighth (8th) day of a calendar month, the period commencing on the Closing Date and ending on (and including) the eighth (8th) day of the calendar month in which the Closing Date occurs, and (ii) if the Closing Date occurs on or
after the ninth (9th) day of a calendar month, the period commencing on the Closing Date and ending on (and including) the eighth (8th) day of the following calendar month and (b) for each interest period thereafter commencing August 9, 2003, the
period commencing on the ninth (9th) day of each calendar month and ending on (and including) the eighth (8th) day of the following calendar month. Each Interest Period as set forth in clause (b) above shall be a full month and shall not be
shortened by reason of any payment of the Loan prior to the expiration of such Interest Period. 
  
 “Interest Rate” shall mean: (A) subject to clause (B) below, the Adjusted Rate; or (B) to the extent applicable under Section
2.2.3 or otherwise provided in this Agreement, the Default Rate. 
  
 “Junior A Mezzanine Guarantor” shall mean TCS SPE 2, L.P., a Delaware limited partnership. 
  
 “Junior A Mezzanine Lender” shall mean DB Realty Mezzanine Parallel Fund II, LLC., a Delaware limited liability company.

  
 “Junior A Mezzanine Loan” shall mean
the mezzanine loan made by Junior A Mezzanine Lender to Borrower in the aggregate principal amount of Three Million Five Hundred Thousand and No/100 Dollars ($3,500,000.00). 
  
 “Junior A Mezzanine Loan Agreement” shall mean that certain Junior A Mezzanine Loan Agreement dated
as of the date hereof between Junior A Mezzanine Lender, Borrower and Junior A Mezzanine Guarantor, as the same may be Modified from time to time. 
  
 “Junior A Mezzanine Loan Documents” shall mean, collectively, the Junior A Mezzanine Note, the Junior A Mezzanine Loan Agreement
and any and all other documents evidencing, supporting or securing the Junior A Mezzanine Loan, as the same may be Modified from time to time. 
  
 “Junior A Mezzanine Note” shall mean that certain Junior A Mezzanine Promissory Note dated the date hereof made by the Borrower to
Junior A Mezzanine Lender in the stated principal amount of $3,500,000.00, as the same may be Modified from time to time. 
  

 -9- 

 “Junior B Mezzanine Guarantor” shall mean TCS SPE 3, L.P., a Delaware limited
partnership. 
  
 “Junior B Mezzanine
Lender” shall mean DB Realty Mezzanine Parallel Fund II, LLC, a Delaware limited liability company. 
  
 “Junior B Mezzanine Loan” shall mean the mezzanine loan made by Junior B Mezzanine Lender to Borrower in the aggregate principal
amount of Twenty Four Million One Hundred Thousand and No/100 Dollars ($24,457,340.00). 
  
 “Junior B Mezzanine Loan Agreement” shall mean that certain Junior B Mezzanine Loan Agreement dated as of the date hereof between Junior B Mezzanine Lender, Borrower and Junior B Mezzanine
Guarantor, as the same may be Modified from time to time. 
  
 “Junior B Mezzanine Loan Documents” shall mean, collectively, the Junior B Mezzanine Note, the Junior B Mezzanine Loan Agreement and any and all other documents evidencing, supporting or securing the Junior B
Mezzanine Loan, as the same may be Modified from time to time. 
  
 “Junior B Mezzanine Note” shall mean that certain Junior B Mezzanine Promissory Note dated the date hereof made by the Borrower to Junior B Mezzanine Lender in the stated principal amount of $24,457,340.00, as the
same may be Modified from time to time. 
  
 “Lease” shall mean any lease, sublease or subsublease, letting, license, concession or other agreement (whether written or oral and whether now or hereafter in effect) pursuant to which Borrower grants to any Person
a possessory interest in, or right to use or occupy all or any portion of any space in the Property, and every Modification or other agreement relating to such lease, sublease, subsublease, or other agreement entered into in connection with such
lease, sublease, subsublease, or other agreement and every guarantee of the performance and observance of the covenants, conditions and agreements to be performed and observed by the other party thereto. 
  
 “Lease Termination Fee” shall have the meaning set
forth in Section 6.4.1. 
  
 “Lease Termination
Rollover Account” shall mean the “Lease Termination Rollover Account” described in the Senior Cash Management Agreement. 
  
 “Lease Termination Leasing Funds” shall have the meaning set forth in Section 6.4.1. 
  
 “Legal Requirements” shall mean all federal, state,
county, municipal and other governmental statutes, laws, rules, orders, regulations, ordinances, judgments, decrees and injunctions of Governmental Authorities affecting Borrower, Senior Mezzanine Guarantor or the Property or any part thereof or the
construction, use, alteration or operation thereof, or any part thereof, whether now or hereafter enacted and in force, including, without limitation, the Americans with Disabilities Act of 1990, and all permits, licenses and authorizations and
regulations relating thereto. 
  

 -10- 

 “Lender” shall mean DB Realty Mezzanine Investment Fund II, L.L.C., a Delaware
limited liability company, together with its successors and assigns. 
  
 “Lien” shall mean any mortgage, lien (statutory or other), pledge, hypothecation, assignment, preference, priority, security interest, or any other encumbrance or charge on or affecting such property or any portion
thereof, or any interest therein (including any conditional sale or other title retention agreement, any sale-leaseback, any financing lease or similar transaction having substantially the same economic effect as any of the foregoing, the filing of
any financing statement or similar instrument under the UCC or comparable law of any other jurisdiction, domestic or foreign, and mechanics’, materialmen’s and other similar liens and encumbrances, as well as any option to purchase, right
of first refusal, right of first offer which by its terms lasts for a period in excess of 30 days or other right to acquire such property or any portion thereof). 
  
 “Loan” shall mean the loan in the original principal amount of Forty Nine Million One Hundred Thirty
Thousand and No/100 Dollars ($49,130,000.00) made by Lender to Borrower pursuant to this Agreement. 
  
 “Loan Documents” shall mean, collectively, this Agreement, the Note, the Pledge Agreements, the Mezzanine Cash Management
Agreement, the Guaranties, the Subordination of Property Management Agreement, the Environmental Indemnity and any other document, certificate and agreement pertaining to the Property as well as all other documents now or hereafter executed and/or
delivered in connection with the Loan, as the same may be Modified from time to time. 
  
 “Loan Parties” shall mean Borrower, Borrower GP, the Mezzanine Guarantors, Guarantors, and Pledgors. 
  
 “Lockout Period” shall have the meaning set forth in Section 2.4.1. 
  
 “Major Lease” shall mean any Lease (i) covering more
than 5,000 rentable square feet at the Property or (ii) made with a Tenant that is a Tenant under another Lease at the Property or that is an affiliate of any other Tenant under a Lease at the Property, if the Leases together cover more than 5,000
rentable square feet. 
  
 “Material Adverse
Effect” shall mean a material adverse effect upon (i) the ability of any of the Loan Parties to perform, or of Lender to enforce, any material provision of any Loan Document, or (ii) the value, use or enjoyment of the Property or the
Collateral or the operation thereof. 
  
 “Material
Agreements” shall mean each contract and agreement (i) relating to the ownership, management, development, use, operation, leasing, maintenance, repair or improvement of the Property, or which are otherwise binding on the Borrower,
other than the Approved Management Agreement and the Leases, and (ii) under which Borrower would have the obligation to pay more than $500,000 per annum. 
  
 “Material Alterations” at any time shall mean any alteration of any portion of the Property that (a) upon completion is reasonably
likely to diminish the value of the Property in 

  

 -11- 

 
any material respect, (b) materially alters the use of the Property, (c) is reasonably expected to cost in excess of $500,000, as reasonably determined by
Lender, or (d) is reasonably anticipated to permit any Tenant under a Major Lease, or Tenants whose Leases cover a number of square feet which, if leased by a single Tenant, would constitute a Major Lease, to terminate their Leases or abate any
amount of rent; provided, however, that Tenant Alterations and other similar work performed by Tenants in the space leased by such Tenants at the Property shall not constitute “Material Alterations”. 
  
 “Maturity Date” shall mean January 9, 2010 or such
other date on which the final payment of principal of the Note becomes due and payable as therein or herein provided, whether at such stated maturity date, by declaration of acceleration, or otherwise. 
  
 “Maximum Rate” shall mean the maximum nonusurious
interest rate, if any, that at any time or from time to time may be contracted for, taken, reserved, charged or received on the indebtedness evidenced by the Note and as provided for herein or the other Loan Documents, under the laws of such state
or states whose laws are held by any court of competent jurisdiction to govern the interest rate provisions of the Loan. The parties intend that New York state law be applied in determining the Maximum Rate. 
  
 “Mezzanine Cash Management Agreement” shall mean that
certain Cash Management Agreement of even date herewith among Lender, Borrower and Agent. 
  
 “Mezzanine Collection Account” shall have the meaning set forth in the Mezzanine Cash Management Agreement. 
  
 “Mezzanine Guarantor Contracts” shall mean any contract or agreement relating to the ownership,
management, development, use, operation, leasing, maintenance, repair or improvement of the Property or the Collateral, or otherwise imposing obligations on Borrower, Borrower GP, Senior Mezzanine Guarantor or Common GP, other than the Loan
Documents, and the Organization Documents of Borrower, Borrower GP, Senior Mezzanine Guarantor and Common GP, respectively. 
  
 “Mezzanine Guarantors” shall mean Senior Mezzanine Guarantor, Junior A Mezzanine Guarantor and Junior B Mezzanine Guarantor.

  
 “Mezzanine Leasing Funds” shall have
the meaning set forth in Section 6.6. 
  
 “Minimum Disbursement Amount” shall mean Twenty-Five Thousand and No/100 Dollars ($25,000). 
  
 “Minority Borrower Partner” shall mean Thomas Development Partners—CS, LLC, a California limited liability company.

  
 “Modifications” shall mean any
amendments, supplements, modifications, renewals, replacements, consolidations, substitutions and extensions of any document or instrument from time to time; “modify”, “modified,” or related words shall have meanings correlative
thereto. 
  

 -12- 

 “Monthly Debt Service Payment Amount” shall mean, on any Monthly Payment Date,
the applicable Debt Service. 
  
 “Monthly Operating
Expense Amount” shall mean an amount equal to one-twelfth (1/12) of the amount of operating expenses and capital expenditures necessary for operation of the Property as set forth in the current Approved Budget. 
  
 “Monthly Senior Debt Service Payments” shall mean,
for each and every Monthly Payment Date, the applicable monthly payment of principal and interest with respect to the Senior Loan as set forth on Schedule II. 
  
 “Monthly Payment Date” shall mean the ninth (9th) day of every calendar month occurring during the
term of the Loan. 
  
 “Moody’s” shall
mean Moody’s Investors Service, Inc. 
  
 “Mortgage” shall mean that certain first priority Mortgage, Assignment of Leases and Rents and Security Agreement, dated the date hereof, executed and delivered by Borrower as security for the Senior Loan and
encumbering the Property, as the same may be Modified from time to time. 
  
 “Multiemployer Plan” shall mean a “multiemployer plan” as defined in Section 4001(a)(3) of ERISA to which Borrower, Senior Mezzanine Guarantor or any ERISA Affiliate of either is
making or accruing an obligation to make contributions or has within any of the preceding five plan years made or accrued an obligation to make contributions. 
  

“Net Proceeds” shall mean: (i) the net amount of all insurance proceeds payable as a result of a Casualty to the Property,
after deduction of reasonable costs and expenses (including, but not limited to, reasonable attorneys’ fees), if any, in collecting such insurance proceeds, or (ii) the net amount of the Award, after deduction of reasonable costs and expenses
(including, but not limited to, reasonable attorneys’ fees), if any, in collecting such Award. 
  
 “Non-Discretionary Items” shall mean Taxes and insurance premiums. 
  
 “Note” shall mean that certain Promissory Note dated the date hereof executed by Borrower and
payable to the order of Lender, as the same may hereafter be Modified, increased, extended, consolidated or severed from time to time. 
  
 “Notice” shall have the meaning set forth in Section 11.6. 
  
 “Officer’s Certificate” shall mean a certificate delivered to Lender by Borrower which is
signed by an authorized officer of a constituent general partner of Borrower, or such other authorized representative, which in all events shall be subject to Section 11.22 hereof. 
  
 “Operating Expenses” shall mean all costs and expenses relating to the operation, maintenance and
management of the Property, including, without limitation, utilities, repairs and maintenance, insurance, property taxes and assessments, advertising expenses, payroll and related taxes, equipment lease payments, a management fee, as set forth in
the 

  

 -13- 

 
Approved Management Agreement, equal to the greater of 3% of annual gross income or the actual management fee set forth in such Approved Management
Agreement, and the Permitted Philadelphia City Taxes, but excluding actual Capital Expenditures, depreciation, amortization, Extraordinary Expenses and deposits required to be made to the Reserve Funds. 
  
 “Organizational Chart” shall mean that certain
organizational chart attached as Schedule 3.1.28. 
  
 “Other Charges” shall mean all ground rents, maintenance charges, impositions other than Taxes, and any other charges, including, without limitation, vault charges and license fees for the use of vaults, chutes and
similar areas adjoining the Property, now or hereafter levied or assessed or imposed against the Property or any part thereof. 
  
 “Permitted Debt” shall mean: 
  
 (i) the Senior Loan, the Loan, the Junior A Mezzanine Loan and the Junior B Mezzanine Loan (and any refinancings thereof approved by
Lender in its sole and absolute discretion); 
  
 (ii) (A) unsecured trade payables and operational debt not evidenced by a note and in an aggregate amount not exceeding $500,000.00 at any one time (not including trade payables Borrower is contesting in good faith up to an aggregate amount
of $250,000.00 and (B) Indebtedness incurred in the financing of equipment and other personal property used on the Property with annual payments not exceeding $150,000.00 in the aggregate; provided that any Indebtedness incurred pursuant to
subclauses (A) and (B) shall be (x) not more than sixty (60) days past due; (y) incurred in the ordinary course of business; and (z) otherwise in compliance with the Senior Loan Documents or the Approved Budget; 
  
 (iii) Indebtedness incurred under and in accordance with the
Conrail Payment Agreement to the extent fully subordinate to the Debt, the Junior A Mezzanine Loan and the Junior B Mezzanine Loan; and 
  
 (iv) Indebtedness secured by Permitted Encumbrances. 
  
 “Permitted Encumbrances” shall mean, collectively, (i) the Liens and security interests created by
the Senior Loan Documents, the Loan Documents, the Junior A Mezzanine Loan Documents and the Junior B Mezzanine Loan Documents, (ii) all Liens, encumbrances and other matters disclosed in the Qualified Title Insurance Policy, (iii) Liens, if any,
for Taxes and other charges imposed by any Governmental Authority not yet due or delinquent, (iv) such other title and survey exceptions as Lender has approved or may approve in writing in Lender’s sole discretion, and (v) easements which (a)
are necessary for the operation of the Property that do not and would not have a material and adverse effect on the Property or (b) Lender has approved or may approve in Lender’s discretion. 
  

 -14- 

 “Permitted Investments” shall mean the following, subject to qualifications
hereinafter set forth: 
  
 (i) obligations of, or
obligations guaranteed as to principal and interest by, the U.S. government or any agency or instrumentality thereof, when such obligations are backed by the full faith and credit of the United States of America; 
  
 (ii) federal funds, unsecured certificates of deposit, time
deposits, banker’s acceptances, and repurchase agreements having maturities of not more than 365 days of any bank, the short-term debt obligations of which are rated A-1+ (or the equivalent) by each of the Rating Agencies and, if it has a term
in excess of three months, the long-term debt obligations of which are rated AAA (or the equivalent) by each of the Rating Agencies; 
  
 (iii) deposits that are fully insured by the Federal Deposit Insurance Corp. (FDIC); 
  
 (iv) debt obligations that are rated AAA or higher (or the
equivalent) by each of the Rating Agencies; 
  
 (v) commercial paper rated A-1+ (or the equivalent) by each of the Rating Agencies; 
  
 (vi) investment in money market funds rated AAAm or AAAm-G (or the equivalent) by each of the Rating Agencies; and 
  
 (vii) other investments approved by Lender in its sole
discretion. 
  
 Notwithstanding the foregoing, “Permitted
Investments” (i) shall exclude any security with the Standard & Poor’s “r” symbol (or any other Rating Agency’s corresponding symbol) attached to the rating (indicating high volatility or dramatic fluctuations in their
expected returns because of market risk), as well as any mortgage-backed securities and any security of the type commonly known as “strips”; (ii) shall not have maturities in excess of one year; (iii) shall be limited to those instruments
that have a predetermined fixed dollar of principal due at maturity that cannot vary or change; and (iv) shall exclude any investment where the right to receive principal and interest derived from the underlying investment provide a yield to
maturity in excess of 120% of the yield to maturity at par of such underlying investment. Interest may either be fixed or variable, and any variable interest must be tied to a single interest rate index plus a single fixed spread (if any), and move
proportionately with that index. No investment shall be made which requires a payment above par for an obligation if the obligation may be prepaid at the option of the issuer thereof prior to its maturity. All investments shall mature or be
redeemable upon the option of the holder thereof on or prior to the earlier of (x) three months from the date of their purchase or (y) the Business Day preceding the day before the date such amounts are required to be applied hereunder. 

 
 “Permitted Philadelphia City Taxes” shall mean the
City of Philadelphia Business Privilege Tax and Net Profits Tax, but only to the extent such taxes do not exceed $250,000 in the aggregate over the full term of the Loan. 
  
 “Person” shall mean any individual, corporation, partnership, limited liability company, joint
venture, estate, trust, unincorporated association, any other entity, any federal, 

  

 -15- 

 
state, county or municipal government or any bureau, department or agency thereof and any fiduciary acting in such capacity on behalf of any of the
foregoing. 
  
 “Plan Assets” shall mean
assets of any (i) employee benefit plan (as defined in Section 3(3) of ERISA) subject to Title I of ERISA, (ii) plan (as defined in Section 4975(e)(1) of the Code) subject to Section 4975 of the Code, or (iii) governmental plan (as defined in
Section 3(32) of ERISA) subject to federal, state or local laws, rules or regulations substantially similar to Title I of ERISA or Section 4975 of the Code. 
  
 “Pledge Agreements” shall mean: (i) that certain Pledge and Security Agreement of even date herewith executed by Senior Mezzanine
Guarantor in favor of Lender pursuant to which Senior Mezzanine Guarantor has pledged to Lender all of its Equity Interests in Borrower and Borrower GP; (ii) those certain Pledge and Security Agreements of even date herewith executed by each of the
other Mezzanine Guarantors, the Common GP, the Minority Borrower Partner, the Thomas Majority Partner, Thomas Investment Partners, Ltd., a California limited partnership, Thomas Development Partners- Phase II, Inc., a California corporation, Thomas
Master Investments, LLC, a California limited liability company, TCS SPE Associates, L.P, a Delaware limited partnership, James A. Thomas, as Trustee for the Lumbee Clan Trust, and Thomas Partners, Inc., a California corporation, in favor of Lender
pursuant to which such Persons have pledged to Lender 100% of their direct or indirect Equity Interests in the Transfer Restricted Parties; and (iii) any Pledge and Security Agreements that may be subsequently executed by any future direct or
indirect partners of Senior Mezzanine Guarantor, at any tier, as a condition to obtaining a direct or indirect Equity Interest in Borrower. 
  
 “Pledgors” shall mean the pledgors under the Pledge Agreements and each Person who provides a pledge or other security for the
Loan. 
  
 “Policies” shall have the
meaning set forth in Section 4.1.15. 
  
 “Preferred Equity Investment” shall mean the equity contributions as of the date hereof by the Preferred Equity Investor to Borrower and Junior A Mezzanine Guarantor of Two Million and No/100 Dollars ($2,000,000).

  
 “Preferred Equity Investor” shall mean
Thomas Development Partners—CS, LLC, a California limited partner, a limited partner of Borrower. 
  
 “Prepayment Date” shall mean the date on which the Loan is prepaid in accordance with the terms hereof. 
  
 “Prepayment Default Sum” shall have the meaning set
forth in Section 2.4.1(d). 
  
 “Prepayment
Notice” shall have the meaning set forth in Section 2.4.1(c). 
  
 “Prepayment Sum” shall have the meaning set forth in Section 2.4.1(b). 
  
 “Prescribed Laws” shall mean, collectively, (a) the Uniting and Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001 (Public Law 107-56) (The USA PATRIOT Act), (b) Executive Order No. 13224 on 

  

 -16- 

 
Terrorist Financing, effective September 24, 2001, and relating to Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to
Commit, or Support Terrorism (the “Executive Order”), (c) the International Emergency Economic Power Act, 50 U.S.C. § 1701 et. seq. and (d) all other Legal Requirements relating to money laundering or terrorism. 
  
 “Property” shall mean the real property, the
Improvements thereon and all personal property owned by Borrower and encumbered by the Mortgage, together with all rights pertaining to such property and Improvements, all as more particularly described in the granting clauses of the Mortgage.

  
 “Qualified Survey” shall mean a
current title survey of the Property, certified to Borrower, the title company issuing the Qualified Title Insurance Policy, Senior Lender and Lender and their respective successors and assigns, in form and substance satisfactory to Lender.

  
 “Qualified Title Insurance Policy”
shall mean, collectively (i) an ALTA extended coverage mortgagee’s title insurance policy in favor of Senior Lender, satisfying the requirements described in the Senior Loan Documents in all material respects and otherwise in form and substance
acceptable to Lender; and (ii) an ALTA Owner’s Policy of Title Insurance with a Mezzanine Lender Endorsement and so-called “Eagle 9” coverage and otherwise in form and substance acceptable to Lender. 
  
 “Rating Agencies” shall mean, prior to the final
Securitization of the Senior Loan, each of S&P, Moody’s and Fitch, or any other nationally-recognized statistical rating agency which has been designated by Lender or Senior Lender and, after the final Securitization of the Senior Loan,
shall mean any of the foregoing that have rated any of the Securities. 
  
 “Release” shall mean any release, spill, emission, leaking, pumping, injection, deposit, disposal, discharge, dispersal, leaching or migration of a Hazardous Substance into the indoor or outdoor environment
(including the movement of Hazardous Substances through ambient air, soil, surface water, ground water, wetlands, land or subsurface strata) in violation of Environmental Laws. 
  
 “Rent Deficiency” shall have the meaning set forth in Section 6.4.2. 
  
 “Rents” shall mean all rents, moneys payable as
damages or in lieu of rent, revenues, deposits (including, without limitation, utility and other deposits), accounts, cash, issues, profits, charges for services rendered, and other consideration of whatever form or nature received by or paid to or
for the account of or benefit of Borrower or its agents or employees from any and all sources arising from or attributable to the Property; provided that security deposits shall not count as Rents until such time as they may be applied by Borrower
in accordance with the applicable Lease. 
  
 “Replacement Lease” shall have the meaning set forth in Section 6.4.2. 
  
 “Reserve Funds” shall mean, collectively, the “Capital Expenditure/Leasing Account,” the “Debt Service
Account,” the “Tax and Insurance Account,” the “Debt Service Reserve Account,” the “Lease Termination Rollover Account” and the “Generator Account” 

  

 -17- 

 
established pursuant to the Senior Cash Management Agreement, and the Senior Mezzanine Leasing Reserve Account. 
  
 “Restoration” shall mean the complete repair and
restoration of the Property as nearly as possible to the condition the Property was in immediately prior to a Casualty. 
  
 “Revocation Notice” shall have the meaning set forth in Section 2.4.1(c). 
  
 “Rollover Funds” shall have the meaning set forth in
Section 6.4.2(c). 
  
 “S&P”
shall mean Standard & Poor’s Ratings Services, a division of the McGraw-Hill Companies, Inc. 
  
 “Securitization” shall have the meaning set forth in the Senior Loan Agreement. 
  
 “Senior Cash Management Agreement” shall mean that
certain Cash Management Agreement of even date herewith among Senior Lender, Borrower, Approved Property Manager and Agent, a copy of which is attached hereto as Exhibit A, as the same may be Modified from time to time in accordance with
Article 6. 
  
 “Senior Cash Management
Bank” shall mean PNC Bank N.A. and any successor Eligible Institution thereto permitted in accordance with Section 6.1. 
  
 “Senior Collateral Accounts” shall mean, collectively, the “Capital Expenditure/Leasing Account,” the “Debt Service
Account,” the “Tax and Insurance Account,” the “Deposit Account,” the “Debt Service Reserve Account,” the “Borrower Disbursement Account,” the “Lease Termination Rollover Account” and the
“Generator Account” established pursuant to the Senior Cash Management Agreement. 
  
 “Senior Debt Service” shall mean, with respect to any particular period of time, scheduled principal and interest payments under the Senior Note. 
  
 “Senior Debt Service Account” means the “Debt
Service Account” established pursuant to the Senior Cash Management Agreement. 
  
 “Senior Deposit Account” means the “Deposit Account” established pursuant to the Senior Cash Management Agreement. 
  
 “Senior Environmental Indemnity” shall mean that certain Environmental Indemnity Agreement dated as
of the date hereof executed by Borrower in connection with the Senior Loan for the benefit of Senior Lender. 
  
 “Senior Lender” shall mean Morgan Stanley Mortgage Capital Inc., a New York corporation and its permitted successors and assigns.

  
 “Senior Loan” shall mean the mortgage
loan made by Senior Lender to Borrower in the aggregate principal amount of One Hundred Thirty Two Million and No/100 Dollars ($132,000,000.00). 
  

 -18- 

 “Senior Loan Agreement” shall mean that certain Loan Agreement dated as of the
date hereof between Senior Lender and Borrower, as the same may be Modified form time to time. 
  
 “Senior Loan Documents” shall mean, collectively, the Senior Note, the Senior Loan Agreement, the Mortgage, the Assignment of Leases, the Senior Environmental Indemnity, the Senior Cash
Management Agreement and any and all other documents evidencing or securing the Senior Loan, as Modified from time to time. 
  
 “Senior Mezzanine Guarantor” shall mean TCS SPE 1, L.P., a Delaware limited partnership. 
  
 “Senior Mezzanine Guarantor Permitted Encumbrances”
shall mean the Liens created by the Pledge Agreements, any of the Junior A Mezzanine Loan Documents or any of the Junior B Mezzanine Loan Documents. 
  
 “Senior Mezzanine Leasing Reserve Account” shall have the meaning set forth in the Mezzanine Cash Management Account. 

 
 “Senior Mezzanine Parties” shall mean Borrower,
Pledgors, Guarantors, and any other Person who executes any Loan Documents. 
  
 “Senior Note” shall mean that certain Senior Promissory Note dated the date hereof made by the Borrower to Senior Lender in the stated principal amount of $132,000,000.00, as the same may be
Modified from time to time. 
  
 “Servicer”
shall have the meaning set forth in Section 11.24. 
  
 “Servicing Agreement” shall have the meaning set forth in Section 11.24. 
  
 “SPC Party” shall have the meaning set forth in Section 3.1.24(s). 
  
 “SPE Entity” shall mean each Transfer Restricted
Party. 
  
 “Sponsor Guarantor” shall mean
Thomas Development Partners, LP, a California limited partnership, or the guarantor under any replacement guaranty issued pursuant to the terms of the Guaranty executed by Sponsor Guarantor. 
  
 “State” shall mean the State or Commonwealth in which
the Property or any part thereof is located. 
  
 “Subordination of Property Management Agreement” shall mean the subordination of Approved Management Agreement executed by Lender and the Approved Property Manager on the date hereof, as the same may from time to
time be Modified in accordance herewith. 
  
 “Substitute Collateral” shall have the meaning set forth in Section 5.15 of the Sponsor Guaranty. 
  

 -19- 

 “Tax Account” means the “Tax and Insurance Account” established
pursuant to the Senior Cash Management Agreement. 
  
 “Taxes” shall mean all real estate and personal property taxes, assessments, water rates or sewer rents, now or hereafter levied or assessed or imposed against the Property or part thereof, together with all interest
and penalties thereon. 
  
 “Tenant” shall
mean any Person obligated by contract or otherwise to pay monies (including a percentage of gross income, revenue or profits) under any Lease now or hereafter affecting all or any part of the Property. 
  
 “Tenant Notice” shall mean a written notice in a form
acceptable to the parties hereto informing each Tenant that (i) all payments under the Leases shall thereafter be transmitted by them directly to, and deposited directly into, the account established pursuant to the Senior Cash Management Agreement
and (ii) such instruction may not be rescinded unless and until such Tenant receives from Borrower or Lender a copy of Lender’s written consent to such rescission. 
  
 “Tenant Improvements” shall mean, collectively, (A) all hard costs and reasonable soft costs
incurred in connection with (i) tenant improvements to be undertaken for any Tenant which are required to be completed by or on behalf of Borrower pursuant to the terms of such Tenant’s Lease, (ii) allowances or concessions to be paid or
credited to a Tenant pursuant to such Tenant’s Lease, and (iii) work undertaken to prepare space for leasing (in each case under clauses (i), (ii) and (iii) including both hard and reasonable soft costs); and (B) payments in respect of any
lease buy-out or lease assumption incurred by Borrower so long as (i) such costs have been approved by Lender, such approval not to be unreasonably withheld, and (ii) such costs have been approved by Senior Lender in accordance with the Senior Loan
Documents. 
  
 “Termination Space” shall
have the meaning set forth in Section 6.4.1. 
  
 “Thomas Majority Partner” shall mean Maguire Thomas Partners—Commerce Square II, Ltd., a California limited partnership. 
  

“Transaction” shall mean, collectively, the transactions contemplated by the Loan Documents. 
  
 “Transfer” shall mean with respect to the Property,
any Equity Interest, or any other asset, any transfer, sale, pledge, hypothecation, encumbrance, assignment or other disposition, directly or indirectly through any one or more intermediaries, at any tier, of all or any portion of that asset or any
right to receive proceeds therefrom (whether voluntarily, involuntarily, by operation of law or otherwise). 
  
 “Transfer Restricted Parties” shall mean Borrower, Borrower GP, Mezzanine Guarantors, Common GP, Minority Borrower Partner, Thomas
Majority Partner and TCS SPE Associates, L.P., a Delaware limited partnership and Thomas Development Partners - Phase II, Inc., a California corporation. 
  

 -20- 

 “Treasury Rate” shall mean, as of the Maturity Date, the yield, calculated by
Lender by linear interpolation (rounded to the nearest one-thousandth of one percent (i.e., 0.001%) of the yields of non-inflation adjusted noncallable United States Treasury obligations with terms (one longer and one shorter) most nearly
approximating the period from such date of determination to the Maturity Date, as determined by Lender on the basis of Federal Reserve Statistical Release H.15-Selected Interest Rates under the heading U.S. Governmental Security/Treasury Constant
Maturities, or another nationally recognized source of financial market information selected by Lender. Lender’s determination of the Treasury Rate shall be final absent manifest error. 
  
 “TRIA” shall mean the Terrorism Risk Insurance Act of
2002 (as Modified from time to time, including substantially equivalent provisions). 
  
 “UCC” or “Uniform Commercial Code” shall mean the Uniform Commercial Code as in effect in the State. 
  
 “Unanticipated Expense” shall mean an operating expense with respect to the Property not set forth
in the Approved Budget which Borrower deems necessary or advisable in its reasonable discretion. 
  
 “Use” shall mean, with respect to any Hazardous Substance, the generation, manufacture, processing, distribution, handling, use,
treatment, recycling or storage of such Hazardous Substance or transportation of such Hazardous Substance. 
  
 “U.S. Tax” shall mean any present or future tax, assessment or other charge or levy imposed by or on behalf of the United States
of America or any taxing authority thereof. 
  
 “Waste” shall mean any material physical abuse or destructive use (whether by action or inaction) of the Property (excluding Casualty). 
  
 “Withdrawal Liability” has the meaning given such term under Part I of Subtitle E of Title IV of
ERISA. 
  
 “Yield Maintenance Payment”
shall mean an amount equal to the greater of. (i) one percent (1%) of the principal amount of the Loan being prepaid or (ii) the present value as of the Prepayment Date of the Calculated Payments from the Prepayment Date through the Maturity Date
determined by discounting such payments at the Discount Rate. As used in this definition, the term “Prepayment Date” shall mean the date on which prepayment is made. As used in this definition, the term “Calculated
Payments” shall mean the monthly payments of interest only which would be due based on the principal amount of the Loan being prepaid on the Prepayment Date and assuming an interest rate per annum equal to the difference (if such difference
is greater than zero) between (y) the most recently calculated Adjusted Rate with respect to the most recent Monthly Payment Date and (z) the Yield Maintenance Treasury Rate. As used in this definition, the term “Discount Rate”
shall mean the rate which, when compounded monthly, is equivalent to the Yield Maintenance Treasury Rate, when compounded semi-annually. As used in this definition, the term “Yield Maintenance Treasury Rate” shall mean the yield
calculated by Lender by the linear interpolation of the yields, as reported in the Federal Reserve Statistical Release H.15-Selected Interest Rates under the heading U.S. 

  

 -21- 

 
Government Securities/Treasury Constant Maturities for the week ending prior to the Prepayment Date, of U.S. Treasury Constant Maturities with maturity dates
(one longer or one shorter) most nearly approximating the Maturity Date. In the event Release H.15 is no longer published, Lender shall select another nationally recognized source of financial market information to determine the Yield Maintenance
Treasury Rate. In no event, however, shall Lender be required to reinvest any prepayment proceeds in U.S. Treasury obligations or otherwise. 
  
 “Zoning Report” shall mean a report prepared by Zoning Information Services with respect to the zoning status of the Property.

  
 Section 1.2 Principles of Construction. All
references to sections and schedules are to sections and schedules in or to this Agreement unless otherwise specified. Unless otherwise specified, the words “hereof,” “herein” and “hereunder” and words of similar import
when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. Unless otherwise specified, all meanings attributed to defined terms herein shall be equally applicable to both the singular
and plural forms of the terms so defined. 
  

	 	II.	THE LOAN 

  
 Section 2.1 The Loan. 
  
 2.1.1 Agreement to Lend and Borrow. Subject to and upon the terms and conditions set forth herein, Lender shall make the Loan to
Borrower and Borrower shall accept the Loan from Lender on the Closing Date. 
  
 2.1.2 Single Disbursement to Borrower. Borrower shall receive only one borrowing hereunder in respect of the Loan and any amount borrowed and repaid hereunder in respect of the Loan may not be
reborrowed. 
  
 2.1.3 The Note. The Loan
shall be evidenced by the Note in the aggregate principal amount of Forty Nine Million One Hundred Thirty Thousand and No/100 Dollars ($49,130,000.00) and shall be repaid in accordance with the terms of this Agreement and the Note. 
  
 2.1.4 Use of Proceeds. Borrower shall use proceeds of
the Loan to (i) pay and discharge any existing loans relating to the Property, (ii) deposit certain Reserve Funds, and (iii) pay costs and expenses incurred in connection with the closing of the Loan, as approved by Lender. 
  
 2.1.5 Security. The Loan shall be secured or supported,
inter alia, by (i) the Pledge Agreements, (ii) the Guaranties, and (iii) the other security interests and Liens granted in this Agreement and in the other Loan Documents. 
  

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 Section 2.2 Interest Rate. 
  
 2.2.1 Interest Rate. From the Closing Date up to but excluding the Maturity Date, Interest on the
outstanding principal balance of the Loan shall accrue at the Interest Rate. 
  
 2.2.2 Intentionally Omitted. 
  
 2.2.3 Default Rate. In the event that, and for so long as, any Event of Default shall have occurred and be continuing, the outstanding principal balance of the Loan and, to the extent permitted by
law, overdue interest in respect of the Loan, shall accrue interest at the Default Rate, calculated from the date such payment was due without regard to any grace or cure periods contained herein. 
  
 2.2.4 Interest Calculation. Interest on the outstanding
principal balance of the Loan shall be calculated by multiplying (a) the actual number of days elapsed in the period for which the calculation is being made by (b) a daily rate based on a three hundred sixty (360) day year (that is, the Interest
Rate or the Default Rate, as then applicable, expressed as an annual rate divided by 360) by (c) the outstanding principal balance. The accrual period for calculating interest due on each Monthly Payment Date shall be the Interest Period.

  
 2.2.5 Usury Savings. All agreements
between Borrower and Lender or its Affiliates, whether now existing or hereafter arising and whether written or oral, are hereby expressly limited so that in no contingency or event, whether by reason of acceleration of the maturity of the Loan or
otherwise, shall the amount paid, or agreed to be paid to the Lender or its Affiliates for the use, forbearance, or detention of the money to be loaned under the Loan or otherwise or for the payment or performance of any covenant or obligation
contained herein or in any other Loan Document exceed the Maximum Rate, if any is applicable to the Loan under applicable law. If from any circumstances whatsoever fulfillment of any provision hereof or any of such other agreements shall cause the
amount paid to so exceed the Maximum Rate, then ipso facto, the amount so paid to Lender shall be reduced to the maximum amount permitted under the Maximum Rate, and if from any such circumstances the Lender shall ever receive interest, or an
amount which is deemed interest under applicable law, which exceeds the Maximum Rate, such amount which would be excessive under applicable law shall be applied to the reduction of the principal of the Note and not to the payment of interest, or if
such excessive interest exceeds the unpaid balance of principal of the Note such excess shall be refunded to the Borrower. All sums paid or agreed to be paid to Lender for the use, forbearance or detention of the indebtedness of Borrower to Lender
shall, to the extent such sums would otherwise exceed the amount permitted under applicable law pursuant to the Maximum Rate, (i) be amortized, prorated, allocated and spread throughout the full term of such indebtedness until payment in full so
that the actual rate of interest on account of such indebtedness does not exceed the applicable Maximum Rate, (ii) be characterized as a fee, expense or other charge other than interest subject to the Maximum Rate, and/or (iii) exclude any voluntary
prepayments and the effects thereof. The terms and provisions of this paragraph shall control and supersede every other provision of all agreements between Lender and the Borrower. 
  

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 Section 2.3 Loan Payments. 
  
 2.3.1 Payment. Borrower shall make a payment to Lender of interest only on August 9, 2003 for the
period from the Closing Date through and including August 8, 2003 (unless the Closing Date is the ninth day of a calendar month, in which case no such separate payment of interest shall be due). Borrower shall make a payment to Lender of principal
and interest in the amount of the Monthly Debt Service Payment Amount on the Monthly Payment Date occurring in September 9, 2003 and on each Monthly Payment Date thereafter to and including the Maturity Date. So long as no Event of Default is
continuing, subject to the Mezzanine Cash Management Agreement and Section 2.3.6, each payment shall be applied as follows: First, to any prepayment premiums due and payable hereunder; second, to the payment of any late charges
due and payable hereunder; third, to the repayment of any unreimbursed amounts advanced by Lender in accordance with this Agreement or any of the Loan Documents for insurance premiums, taxes, assessments or for preservation or protection of
the Collateral and to the payment of all costs and expenses incurred by Lender in connection with the collection of the Debt (including all reasonable attorneys’ fees payable hereunder); fourth, to the payment of accrued and unpaid
interest; fifth, to the extent contemplated by the Mezzanine Cash Management Agreement or Article VI below, but only to such extent, to fund any reserves or escrows required by Lender in accordance with the terms of the this Agreement or any
of the Loan Documents; and sixth, to reduction of the principal balance of the Loan. 
  
 2.3.2 Intentionally Omitted. 
  
 2.3.3 Payment on Maturity Date. Borrower shall pay to Lender on the Maturity Date the outstanding principal balance of the Loan, all accrued and unpaid interest and all other amounts due hereunder
and under the Note and the other Loan Documents. 
  
 2.3.4
Late Payment Charge. If any principal, interest or any other sum due under the Loan Documents, other than the payment of principal due on the Maturity Date, is not paid by Borrower on the date on which it is due, Borrower shall pay
to Lender upon demand an amount equal to the lesser of three percent (3%) of such unpaid sum or the maximum amount permitted by applicable law in order to defray the expense incurred by Lender in handling and processing such delinquent payment and
to compensate Lender for the loss of the use of such delinquent payment. Any such amount shall be secured by the Pledge Agreements and the other security instruments comprising the Loan Documents. 
  
 2.3.5 Method and Place of Payment. (a) Except as
otherwise specifically provided herein, all payments and prepayments under this Agreement and the Note shall be made to Lender not later than 2:00 P.M., New York City time, on the date when due and shall be made in lawful money of the United States
of America in immediately available funds at Lender’s office, and any funds received by Lender after such time shall, for all purposes hereof, be deemed to have been paid on the next succeeding Business Day. 
  
 (b) Whenever any payment to be made hereunder or under any other Loan
Document shall be stated to be due on a day which is not a Business Day, the due date thereof shall be the preceding Business Day. 
  

 -24- 

 (c) All payments required to be made by Borrower hereunder or under the Note or the other Loan Documents
shall be made irrespective of, and without deduction for, any setoff, claim or counterclaim and shall be made irrespective of any defense thereto. 
  
 2.3.6 Payments After Event of Default. Any amounts received by Lender following an Event of Default shall be applied by Lender toward
the payment of interest and/or principal of any of the Loan and/or any other amounts due under the Loan Documents in such order, priority and proportions as Lender in its sole discretion shall deem proper. 
  
 Section 2.4 Prepayments. 
  
 2.4.1 Voluntary Prepayments. (a) Borrower shall be
prohibited from prepaying the Loan, in whole or in part, until the Monthly Payment Date in August, 2009 (the period to but excluding such Monthly Payment Date, the “Lockout Period”). 
  
 (b) After the expiration of the Lockout Period, provided no Event of Default
is continuing, Borrower may voluntarily prepay the Loan in whole or in part on any Business Day, in an amount not less than $5,000,000. Each such prepayment (a “Prepayment Sum”) shall be accompanied by (i) the amount of interest
theretofore accrued but unpaid in respect of the Prepayment Sum; plus (ii) the amount of interest which would have accrued on the Prepayment Sum had it remained outstanding through the end of the Interest Period in which such prepayment is made;
plus (iii) the Yield Maintenance Payment; provided that the Yield Maintenance Payment shall not be due if such prepayment is made within 60 days of the Maturity Date. 
  
 (c) In the event of any voluntary prepayment, Borrower shall give Lender written notice (a “Prepayment
Notice”) of its intent to prepay, which notice shall be given at least 30 and not more than 120 days prior to the Business Day upon which prepayment is to be made and shall specify the Business Day on which such prepayment is to be made and
the amount of such prepayment. If any such notice is given, the amount specified in such notice shall be due and payable on the date specified therein; provided, however, Borrower may revoke its notice of prepayment if written notice of such
revocation (a “Revocation Notice”) is provided to Lender at least five (5) Business Days prior to the proposed prepayment date; provided further, Borrower may not deliver a Revocation Notice more than twice in any calendar
year. 
  
 (d) OTHER THAN AS SET FORTH IN SECTION 2.4.2
BELOW, BORROWER HEREBY EXPRESSLY (i) WAIVES ANY RIGHTS IT MAY HAVE UNDER LAW TO PREPAY THE LOAN AND THE NOTE, IN WHOLE OR IN PART, OTHER THAN PURSUANT TO THE TERMS SET FORTH HEREIN (INCLUDING THE PAYMENT OF THE YIELD MAINTENANCE PAYMENT), PRIOR TO
THE MATURITY DATE, WHETHER UPON ACCELERATION OR OTHERWISE, AND (ii) AGREES THAT IF, FOR ANY REASON (OTHER THAN AS SET FORTH IN SECTION 2.4.2), A PREPAYMENT OF ALL OF ANY PORTION OF THE PRINCIPAL AMOUNT OF THE LOAN IS MADE PRIOR TO THE
EXPIRATION OF THE LOCKOUT PERIOD, INCLUDING UPON OR FOLLOWING ANY ACCELERATION OF THE MATURITY DATE BY LENDER ON ACCOUNT OF ANY DEFAULT, INCLUDING ANY TRANSFER PROHIBITED OR RESTRICTED BY THE LOAN DOCUMENTS, THEN BORROWER SHALL BE 

  

 -25- 

 
OBLIGATED TO PAY CONCURRENTLY WITH SUCH PREPAYMENT THE GREATER OF 3% OF THE PREPAYMENT SUM AND THE YIELD MAINTENANCE PAYMENT (THE “PREPAYMENT DEFAULT
SUM”). BORROWER HEREBY DECLARES THAT (1) EACH OF THE FACTUAL MATTERS SET FORTH IN THIS PARAGRAPH IS TRUE AND CORRECT, (2) LENDER’S AGREEMENT TO MAKE THE LOAN AT THE INTEREST RATE AND FOR THE TERM SET FORTH IN THIS AGREEMENT CONSTITUTES
ADEQUATE CONSIDERATION FOR THIS WAIVER AND AGREEMENT, AND HAS BEEN GIVEN INDIVIDUAL WEIGHT BY BORROWER AND LENDER, (3) BORROWER IS A SOPHISTICATED AND KNOWLEDGEABLE REAL ESTATE INVESTOR WITH COMPETENT AND INDEPENDENT LEGAL COUNSEL, AND (4) BORROWER
FULLY UNDERSTANDS THE EFFECT OF THIS WAIVER AND AGREEMENT. 
  
 2.4.2 Mandatory Prepayments. Subject to the provisions of the Senior Loan Agreement, on each date on which Lender actually receives a distribution of Net Proceeds, and if Lender is not obligated to make such Net Proceeds
available to Borrower for a Restoration, Borrower shall, at Lender’s option, prepay the outstanding principal balance of the Note in an amount equal to one hundred percent (100%) of such Net Proceeds together with interest that would have
accrued on such amounts through the next Monthly Payment Date. The full amount of any such prepayment shall be applied to the Debt in the order specified in Section 2.3.1 and any amount of such prepayment in excess of that required to pay the
Debt in full and such interest shall, if any of the Junior A Mezzanine Loan or the Junior B Mezzanine Loan is in existence, be paid in the following order of priority: (a) first to the Junior A Mezzanine Loan and to the Preferred Equity Investment,
pari passu; (b) second to the Junior B Mezzanine Loan; and (c) third, after the indefeasible payment in full of all obligations under the Senior Loan Documents, the Loan Documents, the Junior A Mezzanine Loan Documents and the Junior B Mezzanine
Loan Documents, to the Borrower. No Yield Maintenance Payment (or other prepayment premium or fee) shall be due in connection with any prepayment made pursuant to this Section 2.4.2. Any prepayment received by Lender pursuant to this
Section 2.4.2 on a date other than a Monthly Payment Date shall be held by Lender as collateral security for the Debt in an interest bearing account, with such interest accruing to the benefit of Borrower, and shall be applied by Lender on
the next Monthly Payment Date. 
  
 2.4.3 Prepayments After
Default. If after an Event of Default but prior to the expiration of the Lockout Period, payment of all or any part of the principal of the Loan is tendered by Borrower, a purchaser at foreclosure or any other Person, such tender shall be
deemed an attempt to circumvent the prohibition against prepayment set forth in Section 2.4.1 and Borrower, such purchaser at foreclosure or other Person shall pay the Prepayment Default Sum, in addition to the outstanding principal balance,
all accrued and unpaid interest and other amounts payable under the Loan Documents. The full amount of any such prepayment shall be applied by Lender toward the payment of interest and/or principal of the Loan and/or any other amounts due under the
Loan Documents in such order, priority and proportions as Lender in its sole discretion shall determine. 
  
 Section 2.5 Taxes. (a) Borrower agrees to indemnify Lender against any present or future stamp, documentary or other similar or related taxes
(excluding any taxes imposed on or measured by Lender’s income, receipts, capital or net worth) or other similar or related charges hereafter imposed, levied, collected, withheld or assessed by any United States 

  

 -26- 

 
Governmental Authority by reason of the execution and delivery of the Loan Documents and any consents, waivers, Modifications and enforcement of rights under
the Loan Documents. Borrower agrees that the interest expense on the Loan will be treated as an expense for all federal, state and local tax reporting purposes, for all financial reporting purposes, and will be recorded as such in its books and
records. 
  
 (b) If Borrower is required by law to withhold or
deduct any amount from any payment hereunder in respect of any U.S. Tax, Borrower shall withhold or deduct the appropriate amount, remit such amount to the appropriate Governmental Authority and pay to Lender (or any assignee of Lender) such
additional amounts as are necessary in order that the net payment of any amount due to Lender (or any assignee of Lender) after deduction for or withholding in respect of any U.S. Tax imposed with respect to such payment (or in lieu thereof, payment
of such U.S. Tax by Lender or its assignees), will not be less than the amount stated herein to be then due and payable; provided that the foregoing obligation to pay such additional amounts shall not apply (i) to any assignee that has not
complied with the obligations contained in Section 11.27(c), (ii) to any U.S. Taxes imposed solely by reason of the failure by such Person to comply with applicable certification, information, documentation or other reporting requirements
concerning the nationality, residence, identity or connections with the United States of America of such Person if such compliance is required by statute or regulation of the United States of America as a precondition to relief or exemption from
such U.S. Taxes; or (iii) with respect to any Person who is a fiduciary or partnership or other than the sole beneficial owner of such payment, to any U.S. Tax imposed with respect to payments made under any Note to a fiduciary or partnership to the
extent that the beneficial owner or member of the partnership would not have been entitled to the additional amounts if such beneficial owner or member of the partnership had been the holder of the Note. Lender hereby represents to Borrower that, as
of the Closing Date, it is a U.S. Person and is exempt from U.S. withholding tax on all interest payments made to it by Borrower pursuant to this Agreement and the Note. 
  
 (c) Within 30 days after paying any amount from which it is required by law to make any deduction or withholding, and within
30 days after it is required by law to remit such deduction or withholding to any relevant taxing or other authority, Borrower shall deliver to Lender satisfactory evidence of such deduction, withholding or payment (as the case may be). 

 

	 	III.	REPRESENTATIONS AND WARRANTIES 

  
 Section 3.1 Borrower Parties Representations. 
  
 Each of the Borrower Parties, collectively and severally, represent and warrant as of the Closing Date that: 
  
 3.1.1 Organization. (a) Each of the Borrower Parties is
duly organized, validly existing and in good standing with full power and authority to own its assets and conduct its business, and is duly qualified in all jurisdictions in which the ownership or lease of its property or the conduct of its business
requires such qualification, except where the failure to be so qualified would not have a Material Adverse Effect on its ability to perform its obligations hereunder, and each of the Borrower Parties and the other applicable Loan Parties have taken
all necessary action to authorize the execution, delivery and performance of this Agreement and the 

  

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other Loan Documents by it, and have the power and authority to execute, deliver and perform under this Agreement, the other Loan Documents and all the
transactions contemplated hereby. 
  
 (b) Each of the Borrower
Party’s exact legal name is correctly set forth in the first paragraph of this Agreement. Each of the Borrower Parties is an organization of the type specified in the first paragraph of this Agreement. Each of the Borrower Parties is
incorporated or organized under the laws of the state specified in the first paragraph of this Agreement. Each of the Borrower Party’s principal place of business and chief executive office, and the place where Borrower Parties keep their
respective books and records, including recorded data of any kind or nature, regardless of the medium of recording, including software, writings, plans, specifications and schematics, has been for the preceding four (4) months (or, if less than four
(4) months, the entire period of the existence of such Borrower Party) and will continue to be the address of each respective Borrower Party set forth in the first paragraph of this Agreement (unless the applicable Borrower Party notifies Lender in
writing at least ten (10) days prior to the date of such change). Borrower’s organizational identification number, if any, assigned by the state of its incorporation or organization is 1611765. Borrower’s federal tax identification number
is 52-1685931. Senior Mezzanine Guarantor’s organizational identification number, if any, assigned by the state of its incorporation or organization is Delaware. Senior Mezzanine Guarantor’s federal tax identification number is 510474655.
Neither Borrower Party is subject to back-up withholding taxes. 
  
 3.1.2 Proceedings. This Agreement and the other Loan Documents have been duly authorized, executed and delivered by the applicable Senior Mezzanine Parties (excluding Lender) and constitute the legal, valid and binding
obligations of such Persons, enforceable against such Persons in accordance with their respective terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement
of creditors’ rights generally, and by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). 
  
 3.1.3 No Conflicts. The execution and delivery of this Agreement and the other Loan Documents by the
Borrower Parties and the other Senior Mezzanine Parties (excluding Lender) and the performance of their respective obligations hereunder and thereunder will not conflict with any provision of any law or regulation to which they are subject, or
conflict with, result in a breach of, or constitute a default under, any of the terms, conditions or provisions of any of their respective organizational documents or any agreement or instrument to which they are a party or by which they are bound,
or any order or decree applicable to them, or result in the creation or imposition of any lien on any of their respective assets or property (other than pursuant to the Loan Documents). 
  
 3.1.4 Litigation. There is no action, suit, proceeding or investigation pending or, to Borrower’s
Knowledge, threatened against the Loan Parties or the Property in any court or by or before any other Governmental Authority which would materially and adversely affect the ability of the Loan Parties to carry out the transactions contemplated by
this Agreement, the Loan Documents or the Senior Loan Documents. 
  
 3.1.5 Agreements. None of the Loan Parties are in default with respect to any order or decree of any court or any order, regulation or demand of any Governmental Authority, 

  

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which default would have consequences that would materially and adversely affect the financial condition or operations of such Loan Party or its properties
or would have consequences that would adversely impair its performance under the Loan Documents or the Senior Loan Documents (as applicable). 
  
 3.1.6 Consents. No consent, approval, authorization or order of any court or Governmental Authority is required for the execution,
delivery and performance by the Borrower Parties or any Loan Party of, or compliance by the Borrower Parties or any Loan Party with, this Agreement, the other Loan Documents or any Senior Loan Documents or the consummation of the transactions
contemplated hereby and thereby, other than those which have been obtained by the Loan Parties. 
  
 3.1.7 Title. Senior Mezzanine Guarantor has good title to its properties and assets, including its interest in the Borrower and
Borrower GP, in each case free and clear of all Liens whatsoever except the Senior Mezzanine Guarantor Permitted Encumbrances. Except for Permitted Encumbrances, the Borrower has good and insurable title in fee to the Property and good title to the
related personal property. The Permitted Encumbrances do not and will not materially adversely affect Borrower’s ability to repay the Debt in accordance with the terms of the Loan Documents or Senior Mezzanine Guarantor’s ability to meet
its obligations under its Guaranty. The Pledge Agreements and the other Loan Documents, upon filing of UCC financing statements in the applicable jurisdiction, create and constitute a valid and perfected Lien on the Collateral for the full amount of
the Loan Amount, free and clear of all Liens other than Senior Mezzanine Guarantor Permitted Encumbrances. Except as indicated in and insured over by a Qualified Title Insurance Policy, there are no claims for payment for work, labor or materials
affecting the Property which are or, to Borrower’s Knowledge, may become a Lien on the Property. There are no mechanics’, materialman’s or other similar liens or claims which have been filed for work, labor or materials affecting the
Property which are or may be liens prior to, or equal or coordinate with, the lien of the Mortgage. None of the Permitted Encumbrances, individually or in the aggregate, materially and adversely impair the use or operations of the Property or impair
Borrower’s ability to pay its obligations in a timely manner. 
  
 3.1.8 ERISA. None of the Borrower Parties or any ERISA Affiliate of the Borrower Parties has incurred any liability under Title IV or Section 302 of ERISA or Section 412 of the Code or maintains or contributes to, or is
or has been required to maintain or contribute to, any employee benefit plan subject to Title IV or Section 302 of ERISA or Section 412 of the Code. The consummation of the transactions contemplated hereby will not constitute or result in any
transaction prohibited by Section 406 of ERISA or Section 4975 of the Code. 
  
 3.1.9 Compliance. Except as set forth on Schedule 3.1.9 hereto, the Borrower Parties and the Property and the use of the Property comply in all material respects with all applicable Legal
Requirements, including, without limitation, building and zoning ordinances and codes and, to the extent provided in Section 3.1.44, Prescribed Laws. Neither Borrower Party is in default or violation of any order, writ, injunction, decree or
demand of any Governmental Authority, the violation of which materially adversely affects the financial condition or business of either Borrower Party. The Borrower Parties have not committed any act which may give any Governmental Authority the
right to cause either Borrower Party to forfeit the Property or the Collateral or any part thereof or any monies paid in performance of each of 

  

 -29- 

 
the Borrower Party’s obligations under any of the Loan Documents or the Borrower’s obligations under the Senior Loan Documents. 
  
 3.1.10 Financial Information. All financial data,
including, without limitation, the statements of cash flow and income and operating expense, that have been delivered to Lender in respect of the Borrower Parties, Loan Parties, the Transfer Restricted Parties, and the Property (i) are true,
complete and correct in all material respects, (ii) accurately represent the financial condition of the Borrower Parties and the Property as of the date of such reports, and (iii) have been prepared in accordance with GAAP throughout the periods
covered, except as disclosed therein. Except as set forth on Schedule 3.1.10, none of the Borrower Parties, Loan Parties, or the Transfer Restricted Parties have any contingent liabilities, liabilities for taxes, unusual forward or long-term
commitments or unrealized or anticipated losses from any unfavorable commitments that are known to either Borrower Party and reasonably likely to have a materially adverse effect on such Persons or the Property, except as referred to or reflected in
said financial statements. Since the date of the financial statements, there has been no Material Adverse Effect with respect to the financial condition, operations or business of Borrower Parties, Loan Parties, the Transfer Restricted Parties, or
the Property from that set forth in said financial statements. 
  
 3.1.11 Condemnation. No Condemnation or other proceeding has been commenced or, to Borrower’s Knowledge, is contemplated with respect to all or any portion of the Property or for the relocation of roadways
providing access to the Property. 
  
 3.1.12
Utilities and Public Access. The Property has rights of access to public ways and is served by water, sewer, sanitary sewer and storm drain facilities adequate to service the Property for its intended uses. 
  
 3.1.13 Separate Lots. The Property is comprised of one
(1) or more parcels which constitute separate tax lots and do not constitute a portion of any other tax lot not a part of the Property. 
  
 3.1.14 Assessments. Except as disclosed in the Qualified Title Policy, there are no pending or, to Borrower’s Knowledge,
proposed special or other assessments for public improvements or otherwise affecting the Property, nor are there any contemplated improvements to the Property that may result in such special or other assessments. 
  
 3.1.15 Enforceability. The Loan Documents are not
subject to any right of rescission, set-off, counterclaim or defense by Borrower Parties or the other Loan Parties, including the defense of usury, and neither the Borrower Parties nor any other Loan Party has asserted any right of rescission,
set-off, counterclaim or defense with respect thereto. 
  
 3.1.16 Assignment of Leases. The Assignment of Leases creates a valid assignment of, or a valid security interest in, certain rights under the Leases, subject only to a license granted to Borrower to exercise certain
rights and to perform certain obligations of the lessor under the Leases, including the right to operate the Property and collect Rents. Other than Borrower, no Person other than Senior Lender has any interest in or assignment of the Leases or any
portion of the Rents due and payable or to become due and payable thereunder. 
  

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 3.1.17 Insurance. The Borrower Parties have each obtained, and have delivered to
Lender original or certified copies of all of the Policies or so-called “Acord” certificates evidencing coverage thereof, with all premiums prepaid thereunder, reflecting the insurance coverages, amounts and other requirements set forth in
this Agreement. No claims have been made under any of the Policies, and no Person, including Borrower Parties, has done, by act or omission, anything which would impair the coverage of any of the Policies. 
  
 3.1.18 Licenses. All permits and approvals, including
without limitation, certificates of occupancy required by any Governmental Authority for the use, occupancy and operation of the Property in the manner in which the Property is currently being used, occupied and operated have been obtained and are
in full force and effect. 
  
 3.1.19 Flood
Zone. None of the Improvements on the Property is located in an area identified by the Federal Emergency Management Agency as a special flood hazard area. 
  
 3.1.20 Physical Condition. To Borrower’s Knowledge and except as otherwise identified in the
Property Condition Report or as a Capital Expenditure in the Approved Budget, the Property, including, without limitation, all buildings, improvements, parking facilities, sidewalks, storm drainage systems, roofs, plumbing systems, HVAC systems,
fire protection systems, electrical systems, equipment, elevators, exterior sidings and doors, landscaping, irrigation systems and all structural components, are in good condition, order and repair in all material respects; there exists no
structural or other material defects or damages in the Property, whether latent or otherwise, and neither Borrower Party has received notice from any insurance company or bonding company of any defects or inadequacies in the Property, or any part
thereof, which would adversely affect the insurability of the same or cause the imposition of extraordinary premiums or charges thereon or of any termination or threatened termination of any policy of insurance or bond. 
  
 3.1.21 Boundaries. Except as may be shown on the
Qualified Survey, all of the improvements which were included in determining the appraised value of the Property lie wholly within the boundaries and building restriction lines of the Property, and no improvements on adjoining properties encroach
upon the Property, and no easements or other encumbrances affecting the Property encroach upon any of the improvements, so as to materially and adversely affect the value or marketability of the Property except those which are insured against by
title insurance. 
  
 3.1.22 Leases. Borrower
Parties represent and warrant to Lender with respect to the Leases that: (a) the rent roll attached hereto as Schedule 3.1.22 is true, complete and correct and the Property is not subject to any Leases other than the Leases described in
Schedule 3.1.22, (b) the Leases identified on Schedule 3.1.22 are in full force and effect and, to Borrower’s Knowledge, there are no defaults thereunder by either party thereto, (c) the copies of the Leases delivered to Lender
are true and complete, and there are no oral agreements with respect thereto, (d) no Rent (including security deposits) has been paid more than one (1) month in advance of its due date, (e) all work to be performed by Borrower under each Lease has
been performed as required and has been accepted by the applicable Tenant, (f) except as otherwise disclosed in the rent roll provided by Borrower to Lender, any payments, free rent, partial rent, rebate of rent or other payments, credits,
allowances or abatements required to be given by Borrower to any 

  

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Tenant has already been received by such Tenant and (g) all security deposits are being held in accordance with Legal Requirements. 
  
 3.1.23 Filing and Recording Taxes. All mortgage,
mortgage recording, stamp, intangible or other similar tax required to be paid under applicable Legal Requirements in connection with the execution, delivery, recordation, filing, registration, perfection or enforcement of any of the Loan Documents,
including, without limitation, the Pledge Agreements, have been paid or are being paid simultaneously herewith. 
  
 3.1.24 Single Purpose. Borrower Parties hereby represent and warrant to, and covenant with, Lender that as of the date hereof and
until such time as the Debt shall be paid in full: 
  
 (a) (i)
Borrower does not own and will not own any asset or property other than (x) the Property, and (y) incidental personal and intangible property necessary for the ownership or operation of the Property; (ii) Senior Mezzanine Guarantor does not own and
will not own any asset or property other than its interest in the Borrower and Borrower GP and incidental personal and intangible property necessary for the ownership of such Equity Interest; and (iii) each other SPE Entity will not own any asset or
property other than the applicable Equity Interest reflected on the Organizational Chart and incidental personal and intangible property necessary for the ownership of such Equity Interest. 
  
 (b) (i) Borrower will not engage in any business other than the acquisition,
development, ownership, operation, management and leasing and maintenance of the Property and entering into the applicable Loan Documents, the Senior Loan Documents, Junior A Mezzanine Loan Documents and the Junior B Mezzanine Loan Documents, and
activities incidental thereto, and Borrower will conduct and operate its business as presently conducted and operated; (ii) Senior Mezzanine Guarantor will not engage in any business other than the acquisition, ownership, management and operation of
the Borrower and Borrower GP and entering into the applicable Loan Documents, and activities incidental thereto, and Senior Mezzanine Guarantor will conduct and operate its business as presently conducted and operated; and (iii) each other SPE
Entity will not engage in any business other than the ownership, management and operation of the applicable Equity Interest reflected on the Organizational Chart and entering into the applicable Loan Documents, Junior A Loan Documents and Junior B
Loan Documents, and activities incidental thereto, and each SPE Entity will conduct and operate its business as presently conducted and operated 
  
 (c) except for the Approved Management Agreement, each SPE Entity will not enter into any contract or agreement with any affiliate of such SPE Entity, any
constituent party of such SPE Entity or any affiliate of any constituent party, except upon terms and conditions that are intrinsically fair and substantially similar to those that would be available on an arms-length basis with third parties other
than any such party. 
  
 (d) Borrower and Borrower GP have not
incurred and will not incur any Indebtedness other than Permitted Debt. No Indebtedness other than the Senior Debt may be secured (subordinate or pari passu) by the Property. 
  

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 (e) Senior Mezzanine Guarantor has not incurred and will not incur any Indebtedness other that the Debt.

  
 (f) Junior A Mezzanine Guarantor has not incurred and will not
incur any Indebtedness other than Indebtedness incurred pursuant to the Junior A Mezzanine Loan Documents. 
  
 (g) Junior B Mezzanine Guarantor has not incurred and will not incur any Indebtedness other than Indebtedness incurred pursuant to the Junior B Mezzanine
Loan Documents. 
  
 (h) Common GP has not incurred and will not
incur any Indebtedness other than Indebtedness, if any, incurred pursuant to the Loan Documents, the Junior A Mezzanine Loan Documents, and the Junior B Mezzanine Loan Documents. 
  
 (i) Other than as set forth in subsections (d)-(h) above, no SPE Entity has incurred, and no SPE Entity will incur, any
Indebtedness (provided that Borrower and Borrower GP may incur Permitted Debt pursuant to subsection (d) above). 
  
 (j) No SPE Entity has made nor will it make any loans or advances to any third party (including any Affiliate or constituent party but provided that this
shall not prohibit tenant allowances pursuant to the Leases permitted under this Agreement), and shall not acquire obligations or securities of its Affiliates. 
  

(k) Each SPE Entity is and will remain solvent and each SPE Entity will pay its debts and liabilities (including, as applicable, shared personnel and
overhead expenses) from its assets as the same shall become due. 
  
 (l) Each SPE Entity has done or caused to be done and will do all things necessary to observe organizational formalities and preserve its existence, and no SPE Entity will, nor will it permit any constituent party to Modify the partnership
certificate, partnership agreement, articles of incorporation and bylaws, operating agreement, trust or other organizational documents of such SPE Entity or such constituent party in any manner that (i) violates the single purpose covenants set
forth in this Section 3.1.24, or (ii) Modifies any provision thereof that by its terms cannot be Modified at any time when the Loan is outstanding or by its terms cannot be Modified without Lender’s consent. 
  
 (m) Each SPE Entity will maintain all of its books, records, financial
statements and bank accounts separate from those of its affiliates and any constituent party. Each SPE Entity’s respective assets will not be listed as assets on the financial statement of any other Person, provided, however, that each
SPE Entity’s respective assets may be included in a consolidated financial statement of its affiliates provided that (i) appropriate notation shall be made on such consolidated financial statements to indicate the separateness of such SPE
Entity and such affiliates and to indicate that such SPE Entity’s assets and credit are not available to satisfy the debts and other obligations of such affiliates or any other Person and (ii) such assets shall be listed on such SPE
Entity’s own separate balance sheet. Each SPE Entity will file its own tax returns (to the extent returns are required to be filed by such SPE Entity) and will not 

  

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file a consolidated federal income tax return with any other Person. Each SPE Entity shall maintain its books, records, resolutions and agreements as
official records. 
  
 (n) Each SPE Entity will be, and at all
times will hold itself out to the public as, a legal entity separate and distinct from any other entity (including any affiliate of such SPE Entity or any constituent party of such SPE Entity), shall correct any known misunderstanding regarding its
status as a separate entity, shall conduct business in its own name, shall not identify itself or any of its affiliates as a division or part of the other, shall maintain and utilize separate stationery (or use its manager’s stationary, which
if used, shall clearly identify manager as a separate entity), invoices and checks bearing its own name and shall allocate fairly and reasonably any overhead for shared office space (if such SPE Entity has shared office space). 
  
 (o) Each SPE Entity will maintain adequate capital for the normal obligations
reasonably foreseeable in a business of its size and character and in light of its contemplated business operations. 
  
 (p) No SPE Entity nor any constituent party will seek or effect the liquidation, dissolution, winding up, liquidation, consolidation or merger, in whole
or in part, of any Transfer Restricted Party. 
  
 (q) No SPE
Entity will commingle its funds and other assets with those of any affiliate or constituent party or any other Person, and each SPE Entity will hold all of its assets in its own name. 
  
 (r) Each SPE Entity has and will maintain its assets in such a manner that it will not be costly or difficult to segregate,
ascertain or identify its individual assets from those of any affiliate or constituent party or any other Person. 
  
 (s) Except pursuant to the Loan Documents, the Junior A Mezzanine Loan Documents and Junior B Mezzanine Loan Documents, as applicable, no SPE Entity will
guarantee or become obligated for the debts of any other Person and does not and will not hold itself out to be responsible for or have its credit available to satisfy the debts or obligations of any other Person. 
  
 (t) (i) Borrower GP and Common GP, and, if Borrower or any Mezzanine
Guarantor is a limited partnership or a limited liability company (other than a single member limited liability company), each general partner or managing member (each, along with Borrower GP and Common GP, an “SPC Party”) shall be
a limited liability company or corporation whose sole assets are its interest in any SPE Entity and each such SPC Party will at all times comply (excluding Borrower GP’s and Common GP’s compliance with Section 3.1.24(a)(i) and (ii)
and (b)(i) and (ii) above), and will cause such SPE Entity to comply, with each of the representations, warranties, and covenants contained in this Section 3.1.24 as if such representation, warranty or covenant was made directly by
such SPC Party (excluding Borrower GP’s and Common GP’s compliance with Section 3.1.24(a)(i) and (ii) and (b)(i) and (ii) above). Upon the withdrawal or the disassociation of an SPC Party from the applicable SPE Entity, such
SPE Entity shall immediately appoint a new SPC Party whose articles of organization or incorporation, as applicable, are substantially similar to those of such SPC Party and deliver to 

  

 -34- 

 
Lender a new non-consolidation opinion with respect to the new SPC Party and its equity owners. 
  
 (ii) If Borrower or any Mezzanine Guarantor is a single
member limited liability company, such SPE Entity shall have at least two (2) springing members, one of which, upon the dissolution of such sole member or the withdrawal or the disassociation of the sole member from such SPE Entity, shall
immediately become the sole member of such SPE Entity, and the other of which shall become the sole member of such SPE Entity if the first such springing member no longer is available to serve as such sole member. 
  
 (u) Borrower Parties shall at all times cause each SPC Party to have at least
two duly appointed members of the board of directors or independent managers, as applicable, reasonably satisfactory to Lender who are provided by a company that provides professional independent directors (each, an “Independent
Director”). Each Independent Director shall not have been at the time of such individual’s appointment or at any time while serving as a director of such SPC Party, and may not have been at any time during the preceding five years (i)
a stockholder, director (other than as an Independent Director), officer, employee, partner, attorney or counsel of such SPC Party, Borrower Party or any affiliate of any of them, (ii) a customer, supplier or other Person who derives any of its
purchases or revenues from its activities with such SPC Party, Borrower Party or any affiliate of any of them (other than with respect to his or her services as an Independent Director of any SPC Party), (iii) a Person or other entity controlling or
under common control with any such stockholder, partner, customer, supplier or other Person, or (iv) a member of the immediate family of any such stockholder, director, officer, employee, partner, customer, supplier or other Person. As used in this
definition, the term “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management, policies or activities of a Person, whether through ownership of voting securities, by
contract or otherwise. 
  
 (v) Borrower Parties shall not cause or
permit the board of directors, partners or members, as applicable, of any SPC Party to take any action which, under the terms of any certificate of incorporation, by-laws or any voting trust agreement with respect to any common stock or under any
organizational document of SPC Party, requires a vote of the board of directors, partners, or members, as applicable, of each SPC Party unless at the time of such action there shall be at least two members who are each an Independent Director.

  
 (w) Each SPE Entity shall conduct its business so that the
assumptions made with respect to each SPE Entity in the Insolvency Opinions shall be true and correct in all material respects. In connection with the foregoing, Borrower Parties hereby covenant and agree that they will comply with or cause the
compliance with, (i) all of the facts and assumptions (whether regarding the Borrower Parties or any other Person) set forth in the Insolvency Opinion, (ii) all the representations, warranties and covenants in this Section 3.1.24, and (iii)
all the organizational documents of each SPE Entity and any SPC Party. 
  
 (x) No SPE Entity will permit any affiliate or constituent party independent access to its bank accounts, except as provided in the Approved Management Agreement. 
  

 -35- 

 (y) Each SPE Entity shall pay the salaries of its own employees (if any) from its own funds and maintain
a sufficient number of employees (if any) in light of its contemplated business operations. 
  
 (z) Each SPE Entity shall compensate each of its consultants and agents from its funds for services provided to it and pay from its own assets all obligations of any kind incurred. 
  
 (aa) No SPE Entity will pledge its assets for the benefit of any other
Person, except as provided under the Senior Loan Documents, the Loan Documents, the Junior A Mezzanine Loan Documents and the Junior B Mezzanine Loan Documents. 
  

(bb) Borrower shall not form, acquire, or hold any subsidiary (whether corporate, partnership, limited liability company or other) or own any equity
interest in any other entity. 
  
 3.1.25 Tax
Filings. To the extent required, each Borrower Party has filed (or has obtained effective extensions for filing) all federal, state and local tax returns required to be filed and have paid or made adequate provision for the payment of all
federal, state and local taxes, charges and assessments payable by Borrower Parties. Borrower Parties believe that their respective tax returns (if any) properly reflect the income and taxes of such Borrower Party, respectively, for the periods
covered thereby, subject only to reasonable adjustments required by the Internal Revenue Service or other applicable tax authority upon audit. 
  
 3.1.26 Solvency. Borrower Parties and each applicable Loan Party and Transfer Restricted Party (a) has not entered into the
Transaction or any Loan Document or Senior Loan Document (as applicable) with the actual intent to hinder, delay, or defraud any creditor and (b) received reasonably equivalent value in exchange for its respective obligations under the Loan
Documents or Senior Loan Documents (as applicable). Giving effect to the Loan and the Senior Loan, the fair saleable value of Borrower’s assets exceeds and will, immediately following the making of the Loan and the Senior Loan, exceed
Borrower’s total liabilities, including, without limitation, subordinated, unliquidated, disputed and contingent liabilities. Each Borrower Party’s and each Loan Party’s and Transfer Restricted Party’s respective assets do not
and, immediately following the making of the Loan and the Senior Loan will not, constitute unreasonably small capital to carry out its business as conducted or as proposed to be conducted. Each Borrower Party and each Loan Party and Transfer
Restricted Party do not intend to, and do not believe that they will, incur Indebtedness and liabilities (including contingent liabilities and other commitments) beyond their ability to pay such Indebtedness (if and when so required) and liabilities
as they mature (taking into account the timing and amounts of cash to be received by each such Person and the amounts to be payable on or in respect of obligations of such Person). 
  
 3.1.27 Federal Reserve Regulations. No part of the proceeds of the Loan or the Senior Loan will be used
for the purpose of purchasing or acquiring any “margin stock” within the meaning of Regulation U of the Board of Governors of the Federal Reserve System or for any other purpose which would be inconsistent with such Regulation U or any
other Regulations 

  

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of such Board of Governors, or for any purposes prohibited by Legal Requirements or by the terms and conditions of this Agreement or the other Loan
Documents. 
  
 3.1.28 Organizational Chart.
The organizational chart attached as Schedule III hereto, relating to Borrower and certain affiliates and other parties, is true, complete and correct on and as of the date hereof. 
  
 3.1.29 Bank Holding Company. Neither any Borrower Party nor any Loan Party or Transfer Restricted Party
is a “bank holding company” or a direct or indirect subsidiary of a “bank holding company” as defined in the Bank Holding Company Act of 1956, as Modified, and Regulation Y thereunder of the Board of Governors of the Federal
Reserve System. 
  
 3.1.30 No Other Debt. No
SPE Entity has borrowed or received debt financing (other than permitted pursuant to this Agreement, the Senior Loan Documents, the Junior A Mezzanine Loan Document or the Junior B Mezzanine Loan Documents) that has not been heretofore repaid in
full. 
  
 3.1.31 Investment Company Act.
Neither any Borrower Party nor any Loan Party or Transfer Restricted Party is (1) an “investment company” or a company “controlled” by an “investment company,” within the meaning of the Investment Company Act of 1940,
as Modified; (2) a “holding company” or a “subsidiary company” of a “holding company” or an “affiliate” of either a “holding company” or a “subsidiary company” within the meaning of the
Public Utility Holding Company Act of 1935, as Modified; or (3) subject to any other federal or state law or regulation which purports to restrict or regulate its ability to borrow money. 
  
 3.1.32 Access/Utilities. All public utilities necessary to the continued use and enjoyment of the
Property as presently used and enjoyed are located in the public right-of-way abutting the Property. All roads necessary for the full utilization of the Property for its current purpose have been completed and dedicated to public use and accepted by
all governmental authorities or are the subject of access easements for the benefit of the Property. 
  
 3.1.33 No Bankruptcy Filing. Neither any Borrower Party nor any Loan Party or Transfer Restricted Party is contemplating either the
filing of a petition by it under any state or federal bankruptcy or insolvency laws or the liquidation of its assets or property, and neither Borrower Party has any knowledge of any Person contemplating the filing of any such petition against it.

  
 3.1.34 Full and Accurate Disclosure. To
Borrower’s Knowledge, no information contained in this Agreement, the other Loan Documents, or any written statement furnished by or on behalf of Borrower Parties pursuant to the terms of this Agreement contains any untrue statement of a
material fact or omits to state a material fact necessary to make the statements contained herein or therein not misleading in light of the circumstances under which they were made. There is no fact or circumstance presently known to either Borrower
Party which has not been disclosed to Lender and which materially adversely affects, or is reasonably likely to materially adversely affect, the Property, the Borrower Parties or their business, operations or condition (financial or otherwise).

  

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 3.1.35 Foreign Person. Neither Borrower Party is a “foreign person” within
the meaning of Section 1445(f)(3) of the Code. 
  
 3.1.36
Intentionally Omitted. 
  
 3.1.37
No Change in Facts or Circumstances; Disclosure. To Borrower’s Knowledge, there has been no material adverse change in any condition, fact, circumstance or event that would make the financial statements, rent rolls, reports,
certificates or other documents submitted in connection with the Loan and the Senior Loan inaccurate, incomplete or otherwise misleading in any material respect or that otherwise materially and adversely affects the business operations or the
financial condition of either Borrower Party or the Property. 
  
 3.1.38 Approved Management Agreement. All of the representations and warranties with respect to the Approved Management Agreement set forth in Section 4.1.11 of this Agreement are true and correct in all
respects. 
  
 3.1.39 Perfection of Accounts.
Borrower Parties hereby represent and warrant to Lender that: 
  
 (a) This Agreement, together with the other Loan Documents, create a valid and continuing security interest (as defined in the UCC) in the Accounts (as defined in the Mezzanine Cash Management Agreement) in favor of Lender, which security
interest is prior to all other Liens, other than Permitted Encumbrances, and is enforceable as such against creditors of and purchasers from either Borrower Party. Other than in connection with the Loan Documents and except for Permitted
Encumbrances and Permitted Debt, neither Borrower Party has sold or otherwise conveyed the Accounts; 
  
 (b) The Accounts constitute “deposit accounts” or “securities accounts” within the meaning of the UCC, as set forth in the Mezzanine
Cash Management Agreement; 
  
 (c) Pursuant and subject to the
terms hereof, Agent has agreed to comply with all instructions originated by Lender, without further consent by either Borrower Party, directing disposition of the Accounts and all sums at any time held, deposited or invested therein, together with
any interest or other earnings thereon, and all proceeds thereof (including proceeds of sales and other dispositions), whether accounts, general intangibles, chattel paper, deposit accounts, instruments, documents or securities; and 
  
 (d) The Accounts are not in the name of any Person other than the Borrower
Parties, as pledgors, or Lender, as pledgee. Neither Borrower Party has consented to Agent’s complying with instructions with respect to the Accounts from any Person other than Lender. 
  
 3.1.40 Borrower Entity/Separateness. Borrower Parties
hereby represent with respect to the Existing Thomas Entities, from the date of formation of each such Existing Thomas Entity to the date of this Agreement, that each Existing Thomas Entity has complied at all times with Section 3.1.24(a)
through (cc) (excluding the Thomas Majority Partner’s and the Minority Borrower Partner’s compliance with Sections 3.1.24(a)(i) and (ii) and (b)(i) and (ii)), as if such provisions applied to each such
Existing Thomas Entities. 
  

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 3.1.41 Owner Entity/Trailing Liabilities. Except for the litigation between Borrower
and Deutsche Bank Trust Company Americas which is concurrently herewith being jointly dismissed with prejudice, (a) No Existing Thomas Entity is now a party to any lawsuit, arbitration or adversarial legal proceeding except (i) lawsuits,
arbitrations or legal proceedings which have been dismissed with prejudice (and for which the time period for any and all appeals has expired), (ii) lawsuits, arbitrations or legal proceedings which have been paid or satisfied in full, (iii)
lawsuits, arbitrations or legal proceedings for which such Existing Thomas Entity’s liability is fully covered by such Existing Thomas Entity’s insurance, or (iv) bankruptcy proceedings in which such Existing Thomas Entity is or was a
creditor or proceedings in which such Existing Thomas Entity is or was a plaintiff (provided no counterclaims or crossclaims have been asserted against such Existing Thomas Entity). 
  
 (b) No judgments or liens of any nature are filed against or imposed upon any
Existing Thomas Entities or any of its property or assets, except for tax liens with respect to taxes that are not yet due and payable and liens disclosed in the Title Policy. 
  
 (c) Each Existing Thomas Entity is in compliance in all material respects with all laws, regulations, and orders applicable
to such Existing Thomas Entity and has received all permits necessary for such Existing Thomas Entity to operate. 
  
 (d) No Existing Thomas Entity is involved in any dispute with any taxing authority other than normal appeals relating to (i) valuation for ad valorem tax
purposes and (ii) calculations of sales tax on utility consumption. 
  
 (e) No Existing Thomas Entity has any material contingent or actual obligations not related to the Property, except for contributions owed to Borrower under Borrower’s limited partnership agreement and obligations owed by Thomas
Majority Partner under the Conrail Payment Agreement to the extent such obligations under the Conrail Payment Agreement are fully subordinate to the Debt, the Junior A Mezzanine Loan and the Junior B Mezzanine Loan. 
  
 (f) Each Existing Thomas Entity is and, since its formation has been duly
formed, validly existing, and in good standing under the laws of the State of its formation as set forth on the Organizational Chart. 
  
 (g) No Existing Thomas Entity is delinquent in the payment of any U.S. Taxes. 
  
 3.1.42 No Default. No Default or Event of Default will exist immediately following the making of the
Loan. 
  
 3.1.43 Environmental Matters.
Except as disclosed in the Environmental Reports or on Schedule 3.1.43: 
  
 (a) To Borrower’s Knowledge, the Property is in compliance with all material Environmental Laws applicable to the Property (which compliance includes, but is not limited to, the possession of, and compliance
with, all material environmental, health and safety permits, 

  

 -39- 

 
approvals, licenses, registrations and other governmental authorizations required in connection with the ownership and operation of the Property under all
Environmental Laws). 
  
 (b) There is no Environmental Claim
pending or, to Borrower’s Knowledge, threatened, with respect to the Property. 
  
 (c) To Borrower’s Knowledge, there have not been and there are no past, present or threatened Releases of any Hazardous Substance (other than De Minimis Releases) from or at the Property that are reasonably
likely to form the basis of any Environmental Claim, and, to Borrower’s Knowledge, there is no threat of any Release of any Hazardous Substance migrating to the Property in violation of any Environmental Law. 
  
 (d) Without limiting the generality of the foregoing, to Borrower’s
Knowledge there is not present at, on, in or under the Property, any Hazardous Substances, PCB-containing equipment, asbestos or asbestos containing materials, underground storage tanks or surface impoundments for any Hazardous Substance, lead in
drinking water (except in concentrations that comply with all Environmental Laws), or lead-based paint that are in violation of any Environmental Law. 
  
 (e) To Borrower’s Knowledge, no Governmental Authority has taken any action to subject the Property to Liens under any Environmental Law. 

 
 (f) There have been no material environmental investigations, studies,
audits, reviews or other analyses conducted by, or that are in the possession of, either Borrower Party in relation to the Property which have not been made available to Lender. 
  
 (g) Neither Borrower Party has received written notice of any judicial proceeding or governmental or administrative action
pending or threatened, under any Environmental Law to which either Borrower Party is named as a party, nor, to Borrower’s Knowledge, are there any consent decrees or other decrees, consent orders, administrative orders or other orders, or other
administrative or judicial requirements outstanding under any Environmental Law with respect to either Borrower Party or, to Borrower’s Knowledge, the Property. 
  
 (h) Neither Borrower Party has contractually assumed any liability of any Person under any Environmental Law, other than
ordinary-course indemnities contained in standard service contracts with respect to services performed in connection with the Property and in Leases executed in accordance with this Agreement. 
  
 3.1.44 Prescribed Laws. 
  
 (a) Neither Borrower Party or, to Borrower’s Knowledge, their respective
constituents or Affiliates is in violation of any Prescribed Laws including Executive Order. 
  
 (b) Neither Borrower Party or, to Borrower’s Knowledge, any of their respective constituents or Affiliates, or to Borrower’s Knowledge any of their brokers or other agents acting or benefiting in any
capacity in connection with the Loan or Senior Loan is any of the following: 
  
 (i) a person or entity that is listed in the annex to, or, is otherwise subject to the provisions of, the Executive Order; 
  

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 (ii) a person or entity owned or controlled by, or acting for or on behalf of, any person
or entity that is listed in the Annex to, or is otherwise subject to the provisions of, the Executive Order; 
  
 (iii) a person or entity with whom any Lender is prohibited from dealing or otherwise engaging in any transaction by any Prescribed Law;

  
 (iv) a person or entity who commits,
threatens or conspires to commit or supports “terrorism” as defined in the Executive Order; or 
  
 (v) a person or entity that is named as a “specially designated national and blocked person” on the most current list published
by the U.S. Treasury Department Office of Foreign Asset Control at its official website or any replacement website or other replacement official publication of such list. 
  
 (c) Neither Borrower Party or, to Borrower’s Knowledge, any of their respective Affiliates or constituents, or to
Borrower’s Knowledge any of their brokers or other agents acting in any capacity in connection with the Loan or the Senior Loan (i) conducts any business or engages in making or receiving any contribution of funds, goods or services to or for
the benefit of any Person described in clause (b) above, (ii) deals in, or otherwise engages in any transaction relating to, any property or interests in property blocked pursuant to the Executive Order, or (iii) engages in or conspires to engage in
any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in any Prescribed Law. 
  
 (d) Notwithstanding anything herein to the contrary (including Section 10.1(a)(ii) hereof), if any of the
representations and warranties made by the Borrower Parties in this Section 3.1.44 are false or misleading, then such false or misleading representations and warranties shall not constitute a Default or Event of Default hereunder unless such
false or misleading representations and warranties result in a claim of any Governmental Authority against Lender. 
  
 Section 3.2 Survival of Representations. 
  
 The representations and warranties set forth in Section 3.1 shall survive, and any covenants contained in Section 3.1 shall continue, for so
long as any amount remains payable to Lender under this Agreement or any of the other Loan Documents. 
  

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	 	IV.	BORROWER PARTIES’ COVENANTS 

  
 Section 4.1 Affirmative Covenants. 
  
 Each of the Borrower Parties, collectively and severally, hereby covenants and agrees with Lender that: 
  
 4.1.1 Existence. Borrower Parties shall do or cause to
be done all things necessary to preserve, renew and keep in full force and effect (a) its existence and that of each of the Loan Parties and Transfer Restricted Parties as a limited partnership, limited liability company, or corporation (as
applicable); and (b) all rights, licenses, Permits, franchises and other agreements necessary for the continued use and operation of such Persons’ respective businesses. Borrower Parties shall deliver to Lender a copy of each amendment or other
Modification to any of their or any Loan Party’s or Transfer Restricted Party’s organizational documents promptly after the execution thereof (but no such Modifications shall be permitted except as provided in Section 4.2.11.

  
 4.1.2 Maintenance of Property; Compliance with
Legal Requirement. Borrower will keep the Property in reasonably good working order and repair, reasonable wear and tear and, subject to the terms of Section 4.1.16, Casualty, excepted. Borrower shall comply with, and shall cause the
Property to comply with, and cause the Property to be operated, maintained, repaired and improved in compliance with, all Legal Requirements and Insurance Requirements. 
  
 4.1.3 Impositions and Other Claims. (a) Each Borrower Party shall pay and discharge all Taxes and Other
Charges levied upon it, its income and its assets as and when such Taxes and Other Charges are due and payable, as well as all lawful claims against the Property for labor, materials, supplies or otherwise. After prior notice to Lender, each
Borrower Party, at its own expense, may contest by appropriate legal proceeding, conducted in good faith and with due diligence, the amount or validity of any Taxes or Other Charges, provided that (i) no Event of Default has occurred and remains
uncured; (ii) such proceeding shall be permitted under and be conducted in accordance with all applicable statutes, laws and ordinances; (iii) neither the Property nor any part thereof or interest therein will be in danger of being sold, forfeited,
terminated, canceled or lost; (iv) each Borrower Party shall promptly upon final determination thereof pay the amount of any such Taxes or Other Charges, together with all costs, interest and penalties which may be payable in connection therewith;
(v) such proceeding shall suspend the collection of Taxes or Other Charges from the Property; and (vi) with respect to any contest relating to the Property, Borrower shall have deposited with Senior Lender cash, or other security as may be approved
by Senior Lender, in an amount equal to one hundred twenty-five percent (125%) of the contested amount, to insure the payment of any such Taxes or Other Charges, together with all interest and penalties thereon. 
  
 (a) Each Borrower Party shall file all federal, state and local tax returns
and other reports that it is required by law to file. In the event of the enactment after this date of any law or regulation applicable to Lender, the Note, the Property, the Collateral or the Pledge Agreements deducting from the value of property
for the purpose of taxation any lien or security interest thereon, or imposing upon Lender the payment of the whole or any portion of the taxes or assessments or charges or liens herein required to be paid by either Borrower Party, or changing in
any way the laws or regulations relating to the taxation of pledged or security agreements or debts secured by pledges or security agreements or the interest of the pledgee or secured party in the property covered thereby, or the manner of
collection of such taxes, so as to affect the Pledge Agreements, the Debt or Lender, then each Borrower Party, upon demand by Lender, shall pay, or cause to be paid, such taxes, assessments, charges or liens, or reimburse Lender for any amounts paid
by Lender, within 10 Business Days after written notice; provided 

  

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that if in the opinion of Lender’s counsel it might be unlawful to require either Borrower Party to make such payment or the making of such payment
might result in the imposition of interest beyond the maximum amount permitted by applicable law, Lender may elect to declare all of the Debt to be due and payable at par, without penalties or premiums, 90 days from the giving of written notice by
Lender to Borrower. 
  
 4.1.4 Access to
Property. Borrower Parties shall permit agents, representatives and employees of Lender to inspect the Property or any portion thereof, and/or the books and records of Borrower Parties (and copy or audit such books and records), at such
reasonable times (subject to Tenant’s applicable rights under their respective Leases) as may be requested by Lender upon reasonable advance written notice. 
  
 4.1.5 Notice of Default. Borrower Parties shall give Lender prompt notice (containing reasonable
detail) of the occurrence to Borrower’s Knowledge (or the knowledge of the successors to the positions held by the individuals listed in the definition of “Borrower’s Knowledge”) of (a) any monetary default, any default for which
Borrower has received notice from the Senior Lender or any “Event of Default” under and as defined in the Senior Loan Agreement, (b) any material Default or Event of Default; (c) any material and adverse change in the financial condition
of either Borrower Party, any Loan Party (other than James A. Thomas and Sponsor Guarantor), any Transfer Restricted Party (other than James A. Thomas and Sponsor Guarantor), or the Property or the physical condition of the Property, which, as
reasonably determined by Borrower, is likely to have a Material Adverse Effect, (d) the termination or cancellation of any Major Lease, and (e) the termination or cancellation of terrorism or other insurance required by this Agreement. 

 
 4.1.6 Litigation. Borrower Parties shall give prompt
written notice to Lender of any litigation or governmental proceedings pending or threatened in writing against either Borrower Party, any Loan Party, any Transfer Restricted Party, or the Property which, if adversely determined, would have a
Material Adverse Effect or result in an Event of Default. 
  
 4.1.7 Cooperate in Legal Proceedings. Except with respect to any claim by Borrower Parties against Lender or any claim by Lender against Borrower Parties, Borrower Parties shall reasonably cooperate, and shall cause
each Loan Party or Transfer Restricted Party to cooperate, fully with Lender with respect to any proceedings before any Governmental Authority which may be reasonably expected to materially adversely affect the rights of Lender hereunder or under
any of the Loan Documents and, in connection therewith, Lender may, at its election (and at its sole cost and expense, unless Borrower Parties are obligated to indemnify Lender in respect of such claim pursuant to this Loan Agreement, including
Section 4.1.18 hereof, or any of the other Loan Documents), participate or designate a representative to participate in any such proceedings. 
  
 4.1.8 Leases. 
  
 (a) Borrower shall furnish Lender with executed copies of all Leases hereafter entered into. All new Leases and renewals or Modifications of Leases shall
be entered into on an arms-length basis, at market rates for similar properties, and shall contain terms and conditions that are commercially reasonable. 
  

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 (b) All new Leases which are Major Leases, and all terminations, renewals and material Modifications of
Major Leases, and any surrender of rights under any Major Lease shall be subject to the prior written consent of Lender, which consent shall not be unreasonably withheld, conditioned or delayed; provided however that Borrower may, without
Lender’s consent (x) enter into Modifications and terminations of existing Leases that are not Major Leases; and (y) subject to Section 4.1.8(c) below, enter into new Leases that are not Major Leases. 
  
 (c) All new Leases executed after the date hereof which are not Major Leases
shall be substantially in the form of Exhibit B attached hereto (the “Form Lease”); provided that the Form Lease may be Modified by Borrower to the extent such Modifications are negotiated on an arms-length basis and reflect
commercially reasonable market terms, as reasonably determined by Borrower. All Leases that are not Major Leases which provide for tenant improvements, tenant allowances and leasing commissions, in the aggregate in excess of $50.00 per rentable
square foot, are subject to Lender’s prior approval, such approval not to be unreasonably withheld, conditioned or delayed. Moreover, it shall be reasonable for Lender to withhold its approval of any Lease which provides for in excess of $50.00
per rentable square foot for tenant improvements, tenant allowances and leasing commissions in the aggregate unless Borrower provides Lender evidence that it has the financial ability (e.g., adequate funds on deposit with Lender which are available
for the payment of same) to fund such excess before such amounts are disbursed out of the various Reserve Funds. 
  
 (d) Borrower shall (i) deliver to each new Tenant a Tenant Notice upon execution of such Tenant’s Lease, and promptly thereafter deliver to Lender a
copy thereof, (ii) observe and perform all the material obligations imposed upon the lessor under the Leases; (iii) to the extent commercially reasonable, enforce all of the material terms, covenants and conditions contained in the Leases on the
part of the lessee thereunder to be observed or performed, short of termination thereof, provided that Borrower may terminate any Lease that is not a Major Lease following a material default thereunder by the respective Tenant; (iv) not seek
to collect any of the rents thereunder more than one month in advance; (v) not execute any assignment of lessor’s interest in the Leases or associated rents other than the Assignment of Rents and Leases; and (vi) not cancel or terminate any
Major Lease or guarantee of any of the Major Leases except as set forth in Section 4.1.8(b) above. 
  
 (e) Notwithstanding anything to the contrary contained in this Section 4.1.8: 
  
 (i) whenever Lender’s approval or consent is required pursuant to the provisions of this Section
4.1.8, Borrower shall have the right to submit a term sheet for any Lease or any Modification thereof to Lender for Lender’s approval, such approval not to be unreasonably withheld, delayed or conditioned. Any such term sheet submitted to
Lender shall set forth all material terms of the proposed Lease (or Modification thereof) including, without limitation, identity of tenant, square footage, term, rent, rent credits, abatements, work allowances and tenant improvements to be
constructed by Borrower (and shall be accompanied by copies of all written materials obtained by Borrower in connection with their evaluation of the creditworthiness of the proposed Tenant) and shall include a request containing a legend in bold
letters stating that Lender’s failure to respond within ten (10) Business Days shall be deemed consent or 

  

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approval of the term sheet. Lender shall respond within ten (10) Business Days after Lender’s receipt of Borrower’s written request for approval or
consent of such term sheet. If Lender fails to respond to such request within ten (10) Business Days, Lender shall be deemed to have approved or consented to such term sheet. Approval of the term sheet in accordance with this subsection (i) does not
constitute approval of the Lease itself and such approval of the Lease, if such Lease is required to be approved under this Section 4.1.8, must be obtained in accordance with subsection (iii) hereof; 
  
 (ii) whenever Lender’s approval or consent is required
pursuant to the provisions of this Section 4.1.8 for any matter that Lender has not previously approved a term sheet pursuant to Section 4.1.8(e)(i) above, Lender shall respond within ten (10) Business Days after Lender’s receipt
of Borrower’s written request for such approval or consent which contains a legend in bold letters stating that Lender’s failure to respond within ten (10) Business Days shall be deemed consent or approval. If Lender fails to respond to
such request within ten (10) Business Days, Lender shall have been deemed to have approved or consented to the matter for which Lender’s consent or approval was sought. Such request for approval shall be accompanied by a copy of the proposed
lease, a summary of the material economic terms thereof and any termination and other material options contained therein, and copies of all written materials obtained by Borrower in connection with their evaluation of the creditworthiness of the
proposed Tenant or, with respect to a proposed termination, a description of the reason therefore; 
  
 (iii) whenever Lender’s approval or consent is required pursuant to the provisions of this Section 4.1.8 for any matter that
Lender has previously approved a term sheet pursuant to Section 4.1.8(e)(i) above, Lender shall respond within ten (10) Business Days after Lender’s receipt of Borrower’s written request for such approval or consent containing a
legend in bold letters stating that Lender’s failure to respond within ten (10) Business Days shall be deemed consent or approval. If Lender fails to respond to such request within ten (10) Business Days, Lender shall be deemed to have approved
or consented to the matter for which Lender’s consent or approval was sought. The ten (10) Business Day periods contained in this subsection (iii) shall be reduced to three (3) Business Days if the matter involves (aa) a new Major Lease or an
amended and restated Major Lease, (bb) a term sheet has been approved by Lender, (cc) a blacklined copy of the new document against the Form Lease, and (dd) an Officer’s Certificate is delivered to Lender, in each case, indicating that the new
document’s only differences with the Form Lease are as reflected in the approved term sheet, are those which do not materially adversely affect the Property, Borrower or Lender, or are those which Lender has otherwise approved, which approval
shall be reasonable so long as there is no Event of Default; and 
  
 (iv) in the event that Lender shall have approved (or be deemed to have approved) a term sheet submitted by Borrower with respect to a certain Lease, Lender shall not withhold its approval or consent with respect to
such Lease on the basis of any provisions of such Lease dealing with the items contained in the approved term sheet. 
  

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 4.1.9 Plan Assets, etc. 
  
 (a) The Borrower Parties shall do all things necessary to ensure that they
are not deemed to hold Plan Assets at any time. 
  
 (b) The
Borrower shall notify Lender, promptly, and in any event within ten Business Days after receipt thereof by either Borrower Party or any ERISA Affiliate of either Borrower Party from a Multiemployer Plan sponsor, a copy of each notice received by
either Borrower Party or any ERISA Affiliate of either Borrower Party concerning (A) the imposition of Withdrawal Liability by a Multiemployer Plan, (B) the determination that a Multiemployer Plan is, or is expected to be, in reorganization within
the meaning of Title IV of ERISA, (C) the termination of a Multiemployer Plan within the meaning of Title IV of ERISA, and (D) the amount of liability incurred, or which may be incurred, by either Borrower Party, or any ERISA Affiliate of either in
connection with any event described in clause (A), (B) or (C) above. 
  
 4.1.10 Further Assurances. Borrower Parties shall, and shall cause Senior Mezzanine Parties to, at such Person’s sole cost and expense, from time to time as reasonably requested by Lender, execute, acknowledge,
record, register, file and/or deliver to Lender such other instruments, agreements, certificates and documents (including UCC financing statements and amended or replacement mortgages) as Lender may reasonably request to evidence, confirm, perfect
and maintain the Liens securing or intended to secure the obligations of Borrower under the Loan Documents or to facilitate a replacement of the Agent pursuant to the Mezzanine Cash Management Agreement if reasonably requested by Lender, and do and
execute all such further lawful and reasonable acts, conveyances and assurances for the better and more effective carrying out of the intents and purposes of this Agreement and the other Loan Documents as Lender shall reasonably request from time to
time. Each Borrower Party hereby authorizes and appoints Lender as its attorney-in-fact during the continuance of an Event of Default to execute, acknowledge, record, register and/or file such instruments, agreements, certificates and documents, and
to do and execute such acts, conveyances and assurances, should either Borrower Party fail to do so itself in violation of this Agreement following written request from Lender, in each case without the signature of either Borrower Party. The
foregoing grant of authority is a power of attorney coupled with an interest and such appointment shall be irrevocable for the term of this Agreement. Each Borrower Party hereby ratifies all actions that such attorney shall lawfully take or cause to
be taken in accordance with this Section 4.1.10; provided, however, Lender agrees not to exercise such power under this Section 4.1.10 in any manner so as to contravene the provisions set forth in Section 11.22 hereof or
in the Guaranties regarding exculpation and recourse. 
  
 4.1.11 Management of Collateral. 
  
 (a) The Property shall be managed at all times by an Approved Property Manager pursuant to an Approved Management Agreement. Pursuant to the Subordination of Property Management Agreement or Agreements, each Approved Property Manager shall
agree that its Approved Management Agreement is subject and subordinate to the Debt. Without the prior written consent of the Lender in its sole and absolute discretion, Borrower shall not appoint a successor to the Approved Property Manager to
manage the Property. Any successor manager 

  

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of the Property permitted hereunder shall execute a Subordination of Property Management Agreement for Lender’s benefit. 
  
 (b) Borrower shall cause each Approved Property Manager (including any
successor Approved Property Manager permitted hereunder) at all times while the Loan is outstanding to maintain worker’s compensation insurance as required by Governmental Authorities. 
  
 (c) Borrower shall notify Lender in writing of any “Event of
Default” (or similar term) under and as defined in the Approved Management Agreement of which Borrower has actual knowledge. Lender shall have the right, after reasonable notice to Borrower and in accordance with the Subordination of Management
Agreement to cure such Events of Default of Borrower under the Approved Management Agreement. Any reasonable actual out-of-pocket expenses incurred by Lender to cure any such Event of Default shall constitute a part of the Debt and shall be due from
Borrower within ten Business Days after written demand therefor. 
  
 (d) Lender shall have the right to require Borrower to replace the Approved Property Manager with a Person which is not an Affiliate of Borrower and is approved by Lender in its sole good faith discretion upon the occurrence of any one or
more of the following events: (i) at any time following the occurrence of an Event of Default and acceleration of the Loan or the Senior Loan, (ii) if Approved Property Manager shall be in default under the Approved Management Agreement beyond any
applicable notice and cure periods or (iii) at any time due to the Approved Property Manager’s fraud or willful misconduct. 
  
 (e) Neither Borrower Party shall consent to or otherwise permit any Modification to the terms of the Approved Management Agreement (including, without
limitation, any increase in the fee payable to the Approved Property Manager thereunder) without having first obtained the prior written approval of Lender with respect thereto. 
  
 4.1.12 Financial Reporting. 
  
 (a) Each Borrower Party shall keep and maintain proper and accurate books and records, in accordance with GAAP, reflecting
the financial affairs of such Borrower Party. Lender shall have the right from time to time during normal business hours upon reasonable written notice (but not more than twice per year when there is no occurrence and continuance of an Event of
Default) to Borrower to examine such books and records at the office of Borrower or other Person maintaining such books and records and to make such copies or extracts thereof as Lender shall desire. 
  
 (b) Each Borrower Party shall furnish Lender annually, within one hundred
twenty (120) days following the end of each Fiscal Year, a complete copy of its annual financial statements audited by a “Big Four” accounting firm or other independent certified public accountant reasonably acceptable to Lender prepared
in accordance with GAAP covering the Property, including statements of income and expense and cash flow for each Borrower Party and the Property and a balance sheet for each Borrower Party. Each Borrower Party’s annual financial statements
shall be accompanied by an Officer’s Certificate stating that such annual financial statement presents fairly the financial condition and the results of operations of each 

  

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Borrower Party and the Property. Together with each Borrower Party’s annual financial statements, Borrower shall furnish to Lender an Officer’s
Certificate certifying as of the date thereof whether to Borrower’s Knowledge there exists an event or circumstance which constitutes a Default or Event of Default by either Borrower Party under the Loan Documents or the Senior Loan Documents
(as applicable), and if such Default or Event of Default exists, the nature thereof, the period of time it has existed and the action then being taken to remedy the same. In addition, Borrower shall provide Lender with the annual financial
statements of Junior A Mezzanine Guarantor, Junior B Mezzanine Guarantor and the other Guarantors, each accompanied by an Officer’s Certificate certifying that each such financial statement is true, correct and complete in all respects.

  
 (c) Borrower will furnish Lender on or before the forty-fifth
(45th) day after the end of each fiscal quarter (based on Borrower’s Fiscal Year), the following items, accompanied by an Officer’s Certificate, certifying that such items are true, correct, accurate and complete and fairly present the
financial condition and results of the operations of the Borrower Parties and the Property in accordance with GAAP as applicable: 
  
 (i) a comparative balance sheet for Borrower, illustrating the current quarter-end position and the position at the beginning of
Borrower’s fiscal year; 
  
 (ii) an income
statement illustrating the most current month of operations and the fiscal year-to-date operations for Borrower; 
  
 (iii) a cash flow statement indicating the fiscal year-to-date cash flow of Borrower; 
  
 (iv) a comparison of the budgeted income and expenses and
the actual income and expenses for such month and year to date for the Property, together with a detailed explanation of any variances of more than the greater of five percent (5%) or $10,000.00 between budgeted and actual year-to-date amounts;

  
 (v) a comparison of the actual income and
expenses for the current year to date and the actual income and expenses for the comparable period of the previous year for the Property; 
  
 (vi) a current rent roll for the Property; and 
  

(vii) an aged accounts receivable report for payments due from Tenants at the Property. 
  
 (d) Borrower will furnish Lender on or before the twenty-fifth (25th) day
after the end of each calendar month, the following items, accompanied by an Officer’s Certificate, certifying that such items are true, correct, accurate, and complete and fairly present the financial condition and results of the operations of
each Borrower Party and the Property in a manner consistent with GAAP, as applicable: 
  
 (i) monthly and year-to-date statements of income and expense and cash flow prepared for such month with respect to the Property;

  

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 (ii) a current rent roll for the Property; and 
  
 (iii) any notice received from a Tenant threatening
non-payment of Rent or other default, alleging or acknowledging a default by landlord. 
  
 (e) Borrower shall submit the Annual Budget to Lender at the time and in the manner set forth in Section 4.1.17 hereof. 
  

(f) In the event that Borrower incurs an Extraordinary Expense, then Borrower shall promptly deliver to Lender a reasonably detailed explanation of:
(i) the amount of such Extraordinary Expense, (ii) the circumstances that necessitated the incurrence of such Extraordinary Expense and (iii) such other information that Lender reasonably requests in connection therewith. 
  
 (g) Borrower shall furnish to Lender, within ten (10) Business Days after
request (or as soon thereafter as may be reasonably possible), such further detailed information with respect to the operation of the Property and the financial affairs of the Borrower Parties as may be reasonably requested by Lender. 
  
 4.1.13 Intentionally Omitted. 
  
 4.1.14 Intentionally Omitted. 
  
 4.1.15 Insurance. 
  
 (a) Borrower shall obtain and maintain with respect to the Property the
policies of insurance set forth in Section 5.1.1 of the Senior Loan Agreement. Without Lender’s prior written consent in its sole and absolute discretion, such insurance shall be maintained regardless of whether the Senior Loan is defeased in
whole or in part or prepaid in full or whether the Senior Mezzanine Loan is prepaid in full. Senior Mezzanine Guarantor shall also obtain and maintain, at all times, for the mutual benefit of Senior Mezzanine Guarantor and Lender, the insurance set
forth in Section 5.1.1(a)(ii) of the Senior Loan Agreement and such other insurance as may from time to time be reasonably requested by Lender. 
  
 (b) All policies of insurance (the “Policies”) required pursuant to subsection Section 4.1.15(a) above shall conform to the
requirements of the Senior Loan Documents. 
  
 (c) Borrower
Parties shall pay the premiums for all Policies as the same become due and payable if and to the extent such premiums are not reserved with Senior Lender or Lender in accordance with the Senior Cash Management Agreements or Mezzanine Cash Management
Agreement. Copies of such Policies, certified as true and correct by the applicable Borrower Party, or certificates thereof (on ACORD Form 27 where available), shall be delivered to Lender promptly upon request. Not later than 10 days prior to the
expiration date of each Policy, the applicable Borrower Party shall deliver to Lender evidence, reasonably satisfactory to Lender, of its renewal or replacement of such Policy. In addition, following any Casualty that results, or is expected to
result, in the receipt of Net Proceeds in excess of $5,000,000, Borrower Parties shall, upon request from Lender, promptly deliver to Lender copies of all Policies. 
  

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 4.1.16 Casualty and Condemnation. Borrower shall provide prompt notice to Lender of
any Casualty or Condemnation. In the event any Casualty or Condemnation in respect of which the Senior Lender applies Net Proceeds toward the prepayment of the Senior Loan, all excess Net Proceeds remaining after the Senior Loan has been repaid in
full shall be applied toward prepayment of the Loan (without payment of any prepayment penalty or charge). In the event the Senior Loan is defeased or prepaid in full, the provisions of Section 5.3 of the Senior Loan Agreement as in effect on
the date hereof shall apply herein and Borrower shall have the same obligations to Lender and Lender shall have the same rights, including but not limited to, with respect to Net Proceeds, claims adjustments and the restoration of the Property, as
provided therein to Senior Lender. 
  
 4.1.17 Annual
Budget. Borrower has previously delivered to Lender the Annual Budget for the Property for the 2003 Fiscal Year. At least 30 days prior to the commencement of each subsequent Fiscal Year during the term of the Loan, Borrower shall deliver to
Lender an Annual Budget for the Property for the ensuing Fiscal Year and, promptly after preparation thereof, any subsequent revisions to the Annual Budget. Upon the occurrence and during the continuance of an Event of Default, in the event Lender
reasonably determines that (i) actual Capital Expenditures or actual Operating Expenses for any relevant period covered by the existing Approved Budget are likely to be less than the amount budgeted therein or (ii) certain Operating Expenses need to
be adjusted to normalize such Operating Expenses, Lender may require Borrower to Modify the Annual Budget accordingly. Each Annual Budget and any Modifications thereto (including Modifications to reflect Unanticipated Expenses) shall be subject to
Lender’s written approval (the Annual Budget and Modifications thereto, as so approved, the “Approved Budget”); provided, however, that (1) in the absence of Lender’s request for Modification as provided above
during an Event of Default, Borrower shall not Modify any Annual Budget more than once in any 30-day period, and (2) so long as no Event of Default is continuing, the consent of Lender to any such Annual Budget and any such Modifications shall not
be unreasonably withheld or delayed. Lender shall respond within ten (10) Business Days after Lender’s receipt of Borrower’s written request for approval of any Annual Budget and within five (5) Business Days after Lender’s receipt of
Borrower’s written request for any proposed Modification thereof. The written request to be delivered by Borrower as set forth in the immediately prior sentence, shall consist of a letter containing a legend in bold letters stating that
Lender’s failure to respond within said ten (10) or five (5) Business Days, as applicable, shall be deemed consent or approval. Lender shall be deemed to have approved or consented to the Annual Budget or Modification thereto if Lender fails to
respond to such written request before the expiration of such ten (10) or five (5) Business Day period, as applicable. During any period that Lender has not approved or been deemed to have approved a proposed Annual Budget submitted to Lender, the
previous Approved Budget shall remain in effect, except for Non-Discretionary Items, which shall be adjusted to reflect the actual costs thereof during the relevant period. 
  
 4.1.18 General Indemnity. Each Borrower Party shall indemnify, reimburse, defend and hold harmless
Lender and its officers, directors, employees, trustees and agents (collectively, the “Indemnified Parties”) for, from and against any and all Damages of any kind or nature whatsoever which may be imposed on, incurred by, or
asserted against the Indemnified Parties by any third party, in any way relating to or arising out of (i) the use or intended use of the proceeds of the Loan by Borrower, (ii) the holding of the Loan by Lender (other than claims 

  

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by banking regulatory authorities or shareholders of Lender arising from such holding of the Loan), (iii) any enforcement of the Loan by Lender, (iv) the
administration of the Transaction or (v) the Conrail Payment Agreement (including, without limitation, Thomas Majority Partner’s obligations under the Conrail Payment Agreement), in each case to the extent resulting, directly or indirectly,
from any claim (including any Environmental Claim) made (whether or not in connection with any legal action, suit, or proceeding) by or on behalf of any Person; provided, however, that no Indemnified Party shall have the right to be
indemnified hereunder for its own fraud, bad faith, gross negligence or willful misconduct. The provisions of and undertakings and indemnification set forth in this Section 4.1.18 shall survive until the date three years after the
satisfaction and payment in full of the Debt and termination of this Agreement (except that, as to any claim pending at such date, such provisions, undertakings and indemnification shall survive until the ultimate disposition of such claim). The
Borrower Parties shall have no liability for conditions that first arise at such time as Borrower no longer has possession or control of the Property as a result of Lender’s exercise of its remedies under the Loan Documents. Any amounts the
Indemnified Parties are legally entitled to receive under this Section 4.1.18 which are not paid within ten Business Days after written demand therefor by the Indemnified Parties or Lender, setting forth in reasonable detail the amount of
such demand and the basis therefor, shall bear interest from the date of demand at the Default Rate, and shall, together with such interest, be part of the Indebtedness and secured by the Pledge Agreements. In case any action, suit or proceeding is
brought against the Indemnified Parties by reason of any such occurrence, the Borrower Parties shall at their expense resist and defend such action, suit or proceeding or will cause the same to be resisted and defended by counsel for the insurer of
the liability or by counsel designated by Borrower Parties (unless reasonably disapproved by Lender promptly after Lender has been notified of such counsel); provided, however, that nothing herein shall compromise the right of Lender
(or any Indemnified Party) to appoint its own counsel at Borrower Parties’ reasonable expense for its defense with respect to any action which in Lender’s (or an Indemnified Party’s) reasonable opinion presents a conflict or potential
conflict between Lender, on the one hand, and Borrower Parties, on the other hand, that would make such separate representation advisable. Lender shall have the right to settle or compromise any action, suit or proceeding against it without Borrower
Parties’ consent; provided, however, that so long as the Borrower Parties are resisting and defending such action, suit or proceeding as provided above in a prudent and commercially reasonable manner, upon such settlement or compromise, Lender
and the Indemnified Parties shall not be entitled to any further indemnification or reimbursement by Borrower Parties under this Section 4.1.18 with respect to the claims so settled or compromised or any causes of action reasonably related
thereto. Lender and the Indemnified Parties shall cooperate with Borrower Parties, at Borrower Parties’ reasonable cost and expense, in connection with such action. Notwithstanding the foregoing, the Borrower Parties shall not be obligated to
pay for fees and disbursements of more than one set of attorneys (in addition to the Borrower Parties own attorneys) regardless of the number of Indemnified Parties. Notwithstanding anything herein to the contrary, the benefits of this Section
4.1.18 are not intended to benefit, and shall not extend to, any Person (other than a Person affiliated with Lender) purchasing from Lender the Property or any Equity Interest pledged pursuant to the Pledge Agreements that are hereafter acquired
by Lender pursuant to a foreclosure action. 
  
 4.1.19
Covenants Regarding the Senior Loan. Borrower shall not Modify the Senior Loan Documents without Lender’s prior written consent. Any Modification to the Senior Loan Documents in violation of this Section 4.1.19 shall be
ineffective as against Lender, and 

  

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shall constitute an Event of Default hereunder unless Lender consents thereto in its sole discretion. Borrower shall deliver to Lender copies of any and all
Modifications to the Senior Loan within five (5) Business Days after execution thereof. 
  
 Section 4.2 Borrower Parties Negative Covenants. 
  
 Each of the Borrower Parties, collectively and severally, hereby covenants and agrees with Lender that: 
  
 4.2.1 Liens on the Property and Collateral. Borrower shall not permit or suffer the existence of any Lien on the Property, other than
Permitted Encumbrances and Senior Mezzanine Guarantor shall not permit or suffer the existence of any Lien on any of its assets other than the Senior Mezzanine Guarantor Permitted Encumbrances. 
  
 4.2.2 Ownership. Senior Mezzanine Guarantor shall not
own any assets other than the Equity Interests in the Borrower and the Borrower GP and the Borrower Parties shall not permit, directly or indirectly, any SPE Entity to own any assets except to the extent permitted in Section 3.1.24 above.

  
 4.2.3 Transfer. 
  
 (a) Borrower Parties acknowledge that, in making the Loan, Lender has relied
to a material extent upon the particular business reputation, expertise, creditworthiness, and individual net worth of each Borrower Party and all of the other Persons who have a direct or indirect interest in either Borrower Party and upon the
continuing interest which such Persons in Borrower Parties. Except as otherwise provided in this Section 4.2.3, without the prior written consent of the Lender in its sole and absolute discretion: (i) Borrower shall not Transfer the Property;
(ii) Senior Mezzanine Guarantor shall not Transfer the Collateral or any portion thereof, and (iii) Borrower Parties shall not permit or suffer to exist any Transfer of the direct or indirect Equity Interests, at any tier, in any Transfer Restricted
Party. 
  
 (b) Notwithstanding subsection (a) above, Borrower may,
to the extent permitted without Senior Lender’s consent in the Senior Loan Documents, without the consent of Lender, (i) replace or otherwise dispose of obsolete or non-useful personal property and fixtures in the ordinary course of business;
and (ii) grant easements, restrictions, covenants, reservations and rights of way or Modify the reciprocal easement agreements, operating agreements, sidewalk maintenance agreements and similar agreements affecting the ownership, use and operation
of the Property included in the Permitted Encumbrances. Borrower may also execute and Modify Leases as otherwise permitted in this Agreement. Borrower shall not hereafter file a declaration of condominium with respect to the Property. 
  
 (c) Notwithstanding subsection (a) above, the owners of the Junior B
Mezzanine Guarantor may transfer direct and indirect Equity Interests in Junior B Mezzanine Guarantor (i) to the Sponsor Guarantor (so long as it is controlled by James A. Thomas), James A. Thomas or Thomas Properties Group LLC (so long as it is
controlled by James A. Thomas), or to any entity or entities controlled by or under common control with any of the foregoing, or to any combination of the foregoing; (ii) to immediate family members of James A. Thomas, entities controlled by
immediate family members of James A. Thomas, or trusts established for 

  

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the immediate family members of the equity holders in the Junior B Mezzanine Guarantor for estate planning purposes, (iii) to employees of Thomas Properties
Group, LLC as part of a compensation package; provided that (a) such transfer, taken together with all previous transfers to employees does not result in a change of control of Junior B Mezzanine Guarantor, and (b) such employees execute pledge
agreements, in forms acceptable to each of the Lender, Junior A Lender and Junior B Lender, pledging such Equity Interest to each of the Lender, the Junior A Lender and the Junior B Lender, respectively, to secure the respective obligations under
the Loan Documents, the Junior A Loan Documents and the Junior B Loan Documents; or (iv) pursuant to a will or other testamentary disposition, provided that in each case (u) notice is provided to the Lender of such a transfer, (v) the
transferee of such interests acknowledges in writing that such interests remain subject to the provisions of the Pledge Agreements, the Junior A Mezzanine Lender’s pledge and security agreement and the Junior B Mezzanine Lender’s pledge
and security agreement and the Junior B Mezzanine Guarantor’s guaranty executed in connection with the Junior B Mezzanine Loan, (w) the Senior Lender delivers to Lender written acknowledgment that such Transfer is permitted under the Senior
Loan Documents, (x) James A. Thomas, to extent not incapacitated or dead, at all times maintains direct or indirect control of the Transfer Restricted Parties, (y) Lender receives reimbursement for all reasonable out of pocket costs and expenses of
Lender in connection with the transactions contemplated by this Section 4.23(c), and (z) the transferee delivers a non-consolidation opinion, if required by the Rating Agencies under the Senior Loan Agreement. 
  
 4.2.4 Debt. Borrower shall not incur, create, assume or
be liable in any manner with respect to any Indebtedness other than the Debt, the Indebtedness incurred with respect to the Senior Loan, the Junior A Mezzanine Loan and the Junior B Mezzanine Loan and the Permitted Debt. Senior Mezzanine Guarantor
shall not incur, create, assume or be liable in any manner with respect to any Indebtedness other than the Debt pursuant to its Guaranty. The Borrower Parties shall not permit any SPE Entity to incur Indebtedness except to the extent permitted in
Section 3.1.24 above. 
  
 4.2.5 Dissolution,
Merger or Consolidation. Each Borrower Party shall not, and shall not permit any Loan Party or Transfer Restricted Party to, dissolve, terminate, liquidate, merge with or consolidate into another Person. 
  
 4.2.6 Change in Business. Each Borrower Party shall not,
and shall not permit any Loan Party or Transfer Restricted Party to, make any material change in the scope or nature of its business objectives, purposes or operations or undertake or participate in activities other than the continuance of its
present business. 
  
 4.2.7 Debt
Cancellation. Each Borrower Party shall not cancel or otherwise forgive or release any material claim or Indebtedness owed to it by any Person, except for adequate consideration or in the ordinary course of its business. 
  
 4.2.8 Affiliate Transactions. Each Borrower Party shall
not enter into, or be a party to, any transaction with any affiliate of a Borrower Party, except for the Approved Management Agreement and transactions which are on terms which are no less favorable to such Borrower Party than would be obtained in a
comparable arm’s length transaction with an unrelated third party providing similar scope and quality of services. 
  

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 4.2.9 Misapplication of Funds. Each Borrower Party shall not, and shall not permit
Borrower GP to, fail to remit amounts to the Senior Deposit Account as required by Senior Cash Management Agreement and the Mezzanine Cash Management Agreement, or misappropriate any security deposit or portion thereof. 
  
 4.2.10 Place of Business. Each Borrower Party shall not,
and shall not permit any Pledgor to change its chief executive office, its principal place of business or its state of formation without giving Lender prior written notice thereof and promptly providing Lender such information and replacement UCC
financing statements as Lender may reasonably request in connection therewith. 
  
 4.2.11 Modifications and Waivers. Unless otherwise consented to in writing by Lender (which consent, in the absence of a continuing Event of Default, shall be exercised in Lender’s good faith
judgment, and during the continuance of an Event of Default, may be withheld in Lender’s sole and absolute discretion): 
  
 (i) Neither Borrower Party shall Modify, terminate, renew, or surrender any rights or remedies under any Major Lease, or enter into any
Lease, except in compliance with Section 4.1.8; 
  
 (ii) Neither Borrower Party shall, nor shall they permit any Transfer Restricted Party to, Modify or terminate its Organizational Documents; and 
  
 (iii) Borrower shall not materially Modify or enter into any Material Agreement (provided that Modifications of the Approved Management
Agreement shall be permitted to the extent set forth in Section 4.1.11(e)), unless (i) the payment obligations under such Material Agreement (as entered into or Modified) are consistent with and reflected in the current Annual Budget, (ii)
such Material Agreement (as entered into or Modified) can be terminated by Borrower without cause upon 60 days’ notice or less without payment of a termination fee; and (iii) such Material Agreement (or Modification thereof) is entered into on
an arms-length basis, reflecting commercially reasonable market terns. Senior Mezzanine Guarantor shall not enter into any Mezzanine Guarantor Contracts without Lender’s prior written consent in its sole and absolute discretion. 
  
 4.2.12 ERISA. 
  
 (a) Neither Borrower Party shall maintain or contribute to, or agree to
maintain or contribute to, or permit any of their respective ERISA Affiliates to maintain or contribute to or agree to maintain or contribute to, any employee benefit plan subject to Title IV or Section 302 of ERISA or Section 412 of the Code, other
than with respect to any Multiemployer Plan listed on the Exception Report. 
  
 (b) Neither Borrower Party shall engage in a non-exempt prohibited transaction under Section 406 of ERISA, Section 4975 of the Code, or substantially similar provisions under federal, state or local laws, rules or
regulations or in any transaction that would cause any obligations or action taken or to be taken hereunder (or the exercise by Lender of any 

  

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of its rights under the Note, this Agreement, the Pledge Agreements or any Loan Document) to be a non-exempt prohibited transaction under such provisions.

  
 (c) Neither Borrower Party, nor any ERISA Affiliate of either
Borrower Party, shall incur any liability with respect to any Multiemployer Plan or all Multiemployer Plans which, alone or in the aggregate, could reasonably be expected to result in a Material Adverse Effect. 
  
 4.2.13 Alterations and Expansions. Borrower shall not
perform or contract to perform any Material Alteration without the prior written consent of Lender, which consent (in the absence of an Event of Default) shall not be unreasonably withheld, conditioned or delayed. If Lender’s consent is
requested hereunder with respect to a Material Alteration, Lender may retain a construction consultant to review such request and, if such request is granted, Lender may retain a construction consultant to inspect the work from time to time.
Borrower shall, within ten Business Days after written demand by Lender, reimburse Lender for the reasonable fees and disbursements of such consultant. 
  
 4.2.14 Advances and Investments. Neither Borrower Party shall make advances (other than disbursements by Borrower to Tenants in
respect of Tenant Improvements), or lend money, to any Person, or purchase or acquire any stock, obligations or securities of, or any other interest in, or make any capital contribution to, any Person, except for Permitted Investments and amounts
received by Borrower from Tenants in the ordinary course of business as security under such Tenants’ Leases (whether in the form of cash or stock or in the form of obligations or other securities of, or any other interest in, such Tenants).

  
 4.2.15 Single-Purpose Entity. Neither
Borrower Party shall, nor shall they permit any other SPE Entity to, cease to comply with Section 3.1.24. 
  
 4.2.16 Zoning and Uses. Neither Borrower Party shall do any of the following: 
  
 (i) initiate or support any limiting change in the permitted
uses of the Property (or to the extent applicable, zoning reclassification of the Property) or any portion thereof, seek any variance under existing land use restrictions, laws, rules or regulations (or, to the extent applicable, zoning ordinances)
applicable to the Property, or use or permit the use of the Property in a manner that would result in the use of the Property becoming a nonconforming use under applicable land-use restrictions or zoning ordinances or that would violate the terms of
any Lease, operating agreement, Legal Requirement or Senior Permitted Encumbrance; 
  
 (ii) consent to any Modification to any of the terms of any Permitted Encumbrance in a manner materially adverse to the interests of
Lender or that adversely affects in any material respect the value, utility or transferability of the Property; 
  
 (iii) impose or consent to the imposition of any restrictive covenants, easements or encumbrances upon the Property in any manner that
adversely affects in any material respect its value, utility or transferability; or 
  

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 (iv) execute or file any subdivision plat affecting the Property, or institute, or permit
the institution of, proceedings to alter any tax lot comprising the Property. 
  
 4.2.17 Waste. Neither Borrower Party shall commit or knowingly permit any Waste on the Property, nor take any actions that would be reasonably likely to invalidate any insurance carried on the
Property. 
  
 4.2.18 Anti-Terrorism Law.
Neither Borrower Party shall (i) conduct any business or engage in making or receiving any contribution of funds, goods or services to or for the benefit of any Person described in Section 3.1.44(b) above, (ii) deal in, or otherwise engage in
any transaction relating to, any property or interests in property blocked pursuant to the Executive Order or any other Prescribed Law, or (iii) engage in or conspire to engage in any transaction that evades or avoids, or has the purpose of evading
or avoiding, or attempts to violate, any of the prohibitions set forth in any Prescribed Law (and Borrower shall deliver to the Lenders any certification or other evidence reasonably requested from time to time by Lender in its reasonable
discretion, confirming each Borrower Party’s compliance with this Section and Section 3.1.44(b). Notwithstanding anything herein to the contrary (including Section 10.1(a)(vi) hereof), if either Borrower Party fails to comply with
the covenants contained in this Section 4.2.18, then such failure shall not constitute a Default or Event of Default hereunder unless such failure results in a claim of any Governmental Authority against Lender. 
  

	 	V.	[INTENTIONALLY OMITTED] 

  

	 	VI.	CASH MANAGEMENT 

  
 Section 6.1 Cash Management Accounts. 
  
 6.1.1 Creation of Cash Management Accounts. On or prior to the Closing Date, Borrower shall: (1) establish and maintain with Agent
the Senior Collateral Accounts in accordance with the Senior Loan Agreement and Senior Cash Management Agreement, as applicable; and (2) establish and maintain with Agent the Mezzanine Collection Account and the Senior Mezzanine Leasing Reserve
Account pursuant to the Mezzanine Cash Management Agreement. The Mezzanine Collection Account shall be an Eligible Account in the name of Lender and shall be under the sole dominion and control of Lender. As a condition precedent to the Closing
Date, Agent shall execute and deliver the Cash Management Agreements, which provide, inter alia, that (i) no party other than Lender and Servicer shall have the right to withdraw funds from the Mezzanine Collection Account; and (ii) no
party other than Senior Lender (or its servicer under the Senior Loan Agreement) shall have the right to withdraw funds from the Senior Collateral Accounts, except to the extent expressly set forth in the Cash Management Agreements. The fees and
expenses of Agent, with respect to the Cash Management Accounts shall be paid by Borrower pursuant to the terms of the respective Cash Management Agreements. 
  
 6.1.2 Lender Replacement of Senior Cash Management Bank and Agent. In the event Senior Lender seeks to replace Senior Cash Management
Bank with any other financial institution in accordance with the Senior Loan Agreement, Lender shall have the right to approve 

  

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any such Person. Lender may replace the Agent in the event that (i) at any time such Person ceases to be an Eligible Institution, or (ii) such Person fails
to comply with the Cash Management Agreement. As a condition precedent to approving the replacement Senior Cash Management Bank, Lender may require Borrower to execute replacement Cash Management Agreements in substantially the same form as those
executed in accordance with this Agreement, and may also require Borrower to deliver to Lender reasonably acceptable legal opinions with respect thereto and deliver to all Tenants the Tenant Direction Letter described in Section 2.2 of the
Senior Cash Management Agreement. Borrower shall reasonably cooperate with Lender in connection with such replacement. 
  
 6.1.3 Borrower Replacement of Agent. Borrower shall have the right during the term of the Loan, at Borrower’s sole cost and
expense, to replace Agent with any other Eligible Institution that executes and delivers to Senior Lender and Lender, as applicable, replacement Cash Management Agreements in substantially the same form as those of even date herewith, provided
Borrower delivers to Lender reasonably acceptable legal opinions with respect thereto and delivers to all Tenants the Tenant Direction Letter described in Section 2.2 of the Senior Cash Management Agreement, and Lender shall reasonably
cooperate with Borrower in connection with such replacement. 
  
 6.1.4 No Modifications to Senior Cash Management Provisions. Borrower shall not Modify the Senior Cash Management Agreement or Article 6 of the Senior Loan Agreement without Lender’s prior written consent, in its
sole and absolute discretion. 
  
 Section 6.2 Deposits
to and Distributions from Senior Cash Management Account. 
  
 6.2.1 Senior Deposit Account. Borrower cause all Rents to be deposited into the Senior Deposit Account by the end of the first Business Day following Borrower’s or the Approved Property Manager’s receipt
thereof in accordance with the terms of the Senior Cash Management Agreement. 
  
 6.2.2 Distributions from Senior Collateral Accounts. So long as the Senior Loan is outstanding, provided no Senior Event of Default has occurred and is continuing, Borrower shall use its best
efforts to enforce the cash distribution priorities and procedures set forth in Section 3.3 and Article IV of the Senior Cash Management Agreement. Without limiting the generality of the foregoing, provided no Senior Event of Default has occurred
and is continuing, Borrower shall use its best efforts to cause the funds on deposit in the Senior Collateral Accounts to be applied as follows: (a) funds on deposit in the Tax and Insurance Account shall be withdrawn as necessary to pay all Taxes
before the date the Taxes become delinquent and all Insurance Premiums on or before the date the Insurance Premiums become due and payable; (b) funds on deposit in the Senior Debt Service Account shall be withdrawn on each Monthly Payment Date to
pay all Monthly Senior Debt Service Payment Amounts (and, if applicable, any default interest and late payment in respect of the Senior Loan); (c) funds on deposit in the Generator Account shall be used to reimburse Borrower for the repair and/or
replacement of the tenant emergency power system incurred in accordance with the Senior Loan Agreement; (d) funds on deposit in the Capital Expenditure/Leasing Account shall be used to reimburse Borrower for Capital Expenditures incurred in
accordance with this Agreement; (e) 

  

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funds sufficient to pay the Monthly Debt Service Payment Amount due on the next Monthly Payment Date, plus all other amounts due and payable under the Loan
Documents, including, without limitation, any unpaid Debt Service (and, if applicable, any interest at the Default Rate and late payments) payable with respect to any prior period, shall be deposited into the Mezzanine Collection Account pursuant to
Section 3.3(g) of the Senior Cash Management Agreement; and (f) funds on deposit in the Debt Service Reserve Account shall be used to pay for any deposit required to be made pursuant to Sections 3.3(a), (b), (c), (d), (e), (f) and (g) of the Senior
Cash Management Agreement. 
  
 6.2.3 Distributions
from Borrower Disbursement Account. Without limiting the provisions of Section 6.2.2 above, Borrower shall cause all sums deposited in the Borrower Disbursement Account in accordance with Sections 3.3 of the Senior Cash Management
Agreement to be used solely to (a) pay Operating Expenses, Capital Expenditures and Extraordinary Expenses incurred in accordance with this Agreement for the calendar month following the Monthly Payment Date on which such deposit was made, (b)
reimburse to the Borrower for funds incurred in the repair and/or replacement of the tenant emergency power system incurred in accordance with this Agreement, and (c) pay Capital Expenditures, tenant improvements or leasing commissions for which
funds have been released from the Capital Expenditure/Leasing Account or the Lease Termination Rollover Account in accordance herewith. Borrower shall not request disbursements from the Senior Lender into the Borrower Disbursement Account to pay
Operating Expenses in excess of the Monthly Operating Expense Amount and any Extraordinary Expenses incurred in accordance with this Agreement for the calendar month following the Monthly Payment Date on which such deposit is to be made. In the
event that Borrower incurs any Extraordinary Expense, Borrower shall provide notice of such Extraordinary Expense to Lender as soon as is reasonably practical, but in any event within two (2) days after incurring the same. 
  
 Section 6.3 Capital Expenditure/Leasing Funds. 
  
 6.3.1 Deposits of Capital Expenditure/Leasing Funds.
Borrower shall deposit with Senior Cash Management Bank on each Monthly Payment Date an amount equal to the Capital Expenditure/Leasing Funds Amount, which shall be deposited into the Capital Expenditure/Leasing Account and used to pay Capital
Expenditures set forth in the current Approved Budget and for tenant improvements and leasing commissions incurred in connection with Leases approved (or deemed approved) by Lender in accordance with the Loan Documents. Amounts deposited pursuant to
this Section 6.3.1 are referred to herein as the “Capital Expenditure/Leasing Funds”. 
  
 6.3.2 Lender Approval of Withdrawal of Capital Expenditure/Leasing Funds. 
  
 (a) Borrower shall not withdraw funds from the Capital Expenditure/Leasing
Account except to pay Capital Expenditures set forth in the current Approved Budget, Extraordinary Expenses and tenant improvements and leasing commissions incurred in connection with Leases approved (or deemed approved) by Lender in accordance with
the Loan Documents. Subject to Section 6.3.2(b), Borrower may withdraw and use funds from the Capital Expenditure/Leasing Account for such approved purposes, provided that: (a) Borrower complies 

  

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with the requirements set forth in the Senior Loan Agreement, including Section 6.4 thereof; and (b) not less than three (3) Business Days prior to
submitting to the Senior Lender any request for such withdrawal of such funds, Borrower shall submit to Lender a complete copy of such request, together with copies of each of the items required to be submitted to the Senior Lender pursuant to
Sections 6.4.2(b) and 6.4.2(c) of the Senior Loan Agreement. 
  
 (b) Notwithstanding the provisions of Section 6.3.2(a), if an Event of Default has occurred and is uncured, Borrower shall not withdraw any funds from the Capital Expenditure/Leasing Account for any purpose without first obtaining
Lender’s written consent, which consent may be conditioned upon, among other things, satisfaction of the following conditions: 
  
 (i) With respect to Capital Expenditure/Leasing Funds to be utilized for Capital Expenditures (“Capital Expenditure
Funds”), each of the following conditions shall be satisfied: (i) Borrower shall submit a request for payment to Lender at least five (5) Business Days prior to the date on which Borrower intends to submit its request for Capital
Expenditure Funds to Senior Lender; (ii) Lender shall have received an Officer’s Certificate from Borrower (A) stating that the items to be funded by the requested disbursement are Capital Expenditures, (B) stating that all Capital Expenditures
at the Property to be funded by the requested disbursement have been completed in a good and workmanlike manner and in accordance in all material respects with all applicable Legal Requirements, such certificate to be accompanied by a copy of any
license, permit or other approval required by any Governmental Authority in connection with the Capital Expenditures, if applicable (C) identifying each Person that supplied materials or labor in connection with the Capital Expenditures to be funded
by the requested disbursement, and (D) stating that each such Person has been paid in full or will be paid in full upon such disbursement, such certificate to be accompanied by lien waivers or other evidence of payment reasonably satisfactory to
Lender; (iii) at Lender’s option, if (A) requested by Lender in writing and (B) the cost of any individual Capital expenditure exceeds $250,000 and the applicable disbursement exceeds $50,000, a title search for the Property indicating that the
Property is free from all Liens, claims and other encumbrances not previously approved by Lender; and (v) at Lender’s option, if the cost of any individual Capital Expenditure exceeds $250,000 and the applicable disbursement exceeds $50,000,
Lender shall have received a report satisfactory to Lender from an architect or engineer reasonably approved by Lender in respect of such architect or engineer’s inspection of the work performed in connection with such Capital Expenditure; and
(vi) Lender shall have received such other evidence as Lender shall request that the Capital Expenditures at the Property to be funded by the requested disbursement have been completed and are paid for or will be paid upon such disbursement to
Borrower. Lender shall not be requested to approve more than one disbursement of Capital Expenditure Funds in any calendar month, unless such requested disbursement is in an amount greater than the Minimum Disbursement Amount (or a lesser amount if
the total amount of Capital Expenditure Funds is less than the Minimum Disbursement Amount). 
  
 (ii) With respect to Capital Expenditure/Leasing Funds to be utilized for tenant improvements and leasing commissions (“Leasing
Funds”), each of the following conditions shall be satisfied: (i) Borrower shall submit a request for payment to 

  

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Lender at least five (5) days prior to the date on which Borrower intends to submit its request for Leasing Funds to Senior Lender; (ii) as to a Major Lease,
Lender shall have reviewed and approved the Major Lease (or such Major Lease shall have been deemed approved hereunder) in respect of which Borrower is obligated to pay or reimburse certain tenant improvement costs and leasing commissions; (iii)
Lender shall have received a budget for tenant improvement costs and a schedule of leasing commission payments and the requested disbursement will be used to pay all or a portion of such costs and payments; (iv) Lender shall have received an
Officer’s Certificate from Borrower (A) stating that all tenant improvements at the Property to be funded by the requested disbursement have been completed in good and workmanlike manner and in accordance in all material respects with all
applicable federal, state and local laws, rules and regulations, such certificate to be accompanied by a copy of any license, permit or other approval by any Governmental Authority required in connection with the tenant improvements, if applicable,
(B) identifying each Person that supplied materials or labor in connection with the tenant improvements to be funded by the requested disbursement, and (C) stating that each such Person has been paid in full or will be paid in full upon such
disbursement, such certificate to be accompanied by lien waivers or other evidence of payment satisfactory to Lender; (v) at Lender’s option, if (A) requested by Lender in writing and (B) the cost of applicable tenant improvements exceeds
$250,000 and the applicable disbursement exceeds $50,000, a title search for the Property indicating that the Property is free from all Liens, claims and other encumbrances not previously approved by Lender; and (vi) with respect to disbursements
for tenant improvements, Lender shall have received such other evidence as Lender shall request that the tenant improvements at the Property to be funded by the requested disbursement have been completed and are paid for or will be paid upon such
disbursement to Borrower. Lender shall not be required to approve more than one disbursement of Leasing Funds in any calendar month, unless such requested disbursement is in an amount greater than the Minimum Disbursement Amount (or a lesser amount
if the total amount of Leasing Funds is less than the Minimum Disbursement Amount). 
  
 (c) Nothing in this Agreement shall (i) make Lender responsible for making or completing the Capital Expenditures Work; (ii) require Lender to expend funds to complete any Capital Expenditures Work; (iii) obligate
Lender to proceed with the Capital Expenditures Work; or (iv) obligate Lender to demand from Borrower additional sums to complete any Capital Expenditures Work. 
  

(d) If the cost for any particular Capital Expenditure or Tenant Improvements exceeds $500,000 or $2,000,000, respectively, and at any time after the
occurrence and during the continuance of an Event of Default, and, upon two (2) Business Days’ notice, Borrower shall permit Lender and Lender’s agents and representatives (including, without limitation, Lender’s engineer, architect,
or inspector) or third parties to enter onto the Property during normal business hours (subject to the rights of Tenants under their Leases) to inspect the progress of any Capital Expenditures Work and all materials being used in connection
therewith and to examine all plans and shop drawings relating to such Capital Expenditures Work. Borrower shall use commercially reasonable efforts to cause all contractors and subcontractors to cooperate with Lender or Lender’s representatives
or such other Persons described above in connection with inspections described in this Section 6.3.2(d). 
  

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 (e) If the cost for any particular Capital Expenditure or Tenant Improvements exceeds $500,000 or
$2,000,000, respectively, and a disbursement will exceed $100,000, and at any time after the occurrence and during the continuance of an Event of Default, Lender may require an inspection of the Property at Borrower’s expense prior to approving
a disbursement of Capital Expenditure Funds in order to verify completion of the Capital Expenditures Work for which reimbursement is sought. Lender may require that such inspection be conducted by an appropriate independent qualified professional
selected by Lender and may require a certificate of completion by an independent qualified professional architect acceptable to Lender prior to the final disbursement of Capital Expenditure Funds for such Capital Expenditure or Tenant Improvements.
Borrower shall pay, as an Operating Expense, the cost of the inspection as required hereunder, whether such inspection is conducted by Lender or by an independent qualified professional architect. 
  
 (f) In addition to any insurance required under the Loan Documents, Borrower
shall provide or cause to be provided workmen’s compensation insurance, builder’s risk, and public liability insurance and other insurance to the extent required under applicable law in connection with Capital Expenditures Work. All such
policies shall be in form and amount reasonably satisfactory to Lender. 
  
 Section 6.4 Lease Termination Funds. 
  
 6.4.1 Deposits of Lease Termination Funds. In the event that Borrower receives a fee, payment or other compensation from any Tenant relating to or in exchange for the termination of such Tenant’s Lease (a
“Lease Termination Fee”) Borrower shall immediately deposit such Lease Termination Fee with Senior Lender in accordance with the Senior Loan Agreement, to be deposited into the Lease Termination Rollover Account to be utilized for
tenant improvements and leasing commissions that may be incurred with respect to the space relating to such Lease Termination Fee (a “Termination Space”) and, in the event that there is a Rent Deficiency for the Termination Space
from and after the date that the Lease for the Termination Space was terminated, in replacement of Rent. Amounts deposited pursuant to this Section 6.4.1 are referred to herein as the “Lease Termination Leasing Funds”).

  
 6.4.2 Lender Approval of Withdrawal of Lease
Termination Leasing Funds. 
  
 (a) Borrower shall not
withdraw funds from the Lease Termination Leasing Account except for tenant improvements and leasing commissions that may be incurred with respect to Leases of a Termination Space which are approved or deemed approved in accordance with the Loan
Documents and, in the event that there is a Rent Deficiency for the Termination Space from and after the date that the Lease for the Termination Space was terminated, in replacement of Rent. Subject to Section 6.4.2(b), Borrower may withdraw
and use funds from the Lease Termination Leasing Account for such approved purposes, provided that: (a) Borrower complies with the requirements set forth in the Senior Loan Agreement, including Section 6.6 thereof; and (b) with respect to funds used
to pay for tenant improvements and leasing commissions that may be incurred with respect to Leases of a Termination Space which are approved or deemed approved in accordance with the Loan Documents, not less than three (3) Business Days prior to
submitting to the Senior Lender any request for withdrawal of such funds, 

  

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Borrower shall submit to Lender a complete copy of such request, together with copies of each of the items required to be submitted to the Senior Lender
pursuant to Section 6.6.2(a) of the Senior Loan Agreement. 
  
 (b)
Notwithstanding the provisions of Section 6.4.2(a), if an Event of Default has occurred and is uncured, Borrower shall not withdraw any funds from the Lease Termination Leasing Account for any purpose without first obtaining Lender’s
written consent, which consent may be conditioned upon, among other things, satisfaction of the following conditions: (i) Borrower shall submit a request for payment to Lender at least ten (10) days prior to the date on which Borrower intends to
submit its request for Lease Termination Leasing Funds to Senior Lender, and shall (A) specify the tenant improvement costs and leasing commissions to be paid for the Termination Space or (B) specify the amount by which the rent expected to be
obtained by Borrower for the Termination Space during the next succeeding calendar month pursuant to the Lease or Leases for such Termination Space (a “Replacement Lease”) is less than the amount of monthly rent received from the
previous Tenant in the Termination Space pursuant to its Lease prior to such termination (the “Rent Deficiency”); (ii) on the date such request is received by Lender and on the date such payment is to be requested of Senior Lender,
no Event of Default shall exist and remain uncured; (iii) Lender shall have reviewed and, if such Replacement Lease constitutes a Major Lease or if such Lease provides for tenant improvements in excess of $50.00 per rentable square foot, approved
the Replacement Lease in respect of which Borrower is obligated to pay or reimburse certain tenant improvement costs and leasing commissions; (iv) with respect to any Lease Termination Leasing Funds to be released by Lender for tenant improvements
or leasing commissions pursuant to a Replacement Lease, Lender shall have received a budget for tenant improvement costs and a schedule of leasing commissions payments and the requested disbursement will be used to pay all or a portion of such costs
and payments; (v) with respect to any Lease Termination Leasing Funds to be released by Senior Lender for tenant improvements or leasing commissions pursuant to a Replacement Lease, Lender shall have received an Officer’s Certificate from
Borrower (A) stating that all tenant improvements at the Property to be funded by the requested disbursement have been completed in good and workmanlike manner and in accordance in all material respects with all applicable federal, state and local
laws, rules and regulations, such certificate to be accompanied by a copy of any license, permit or other approval by any Governmental Authority required in connection with the Capital Expenditures, (B) identifying each Person that supplied
materials or labor in connection with the tenant improvements to be funded by the requested disbursement, and (C) stating that each such Person has been paid in full or will be paid in full upon such disbursement, such certificate to be accompanied
by lien waivers or other evidence of payment satisfactory to Lender; (vi) with respect to any Lease Termination Leasing Funds to be released by Senior Lender for tenant improvements or leasing commissions pursuant to a Replacement Lease, at
Lender’s option, if (A) requested by Lender in writing and (B) the cost of applicable tenant improvements exceeds $2,000,000 and the applicable disbursement exceeds $100,000, a title search for the Property indicating that the Property is free
from all Liens, claims and other encumbrances not previously approved by Lender; and (vii) with respect to any Lease Termination Leasing Funds to be released by Senior Lender for tenant improvements or leasing commissions pursuant to a Replacement
Lease, Lender shall have received such other evidence as Lender shall reasonably request that the tenant improvements at the Property to be funded by the requested disbursement have been completed and are paid for or will be paid upon such
disbursement to Borrower. Lender shall not be required to approve the request for disbursement 

  

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of Lease Termination Leasing Funds more frequently than once each calendar month, unless such requested disbursement is in an amount greater than the Minimum
Disbursement Amount (or a lesser amount if the total amount of Lease Termination Leasing Funds is less than the Minimum Disbursement Amount). 
  
 (c) Notwithstanding the foregoing, upon receipt by Lender of evidence that, with respect to any new Replacement Lease with a term of at least five (5)
years, all tenant improvements required to be completed by Borrower pursuant to the Replacement Lease, if any, have been completed and all leasing commissions required to be paid by Borrower with respect to the Replacement Lease, if any, have been
paid, and provided no Event of Default then exists, Lender shall approve the requested disbursement of the Lease Termination Leasing Funds on deposit with respect to such Termination Space provided that the rent to be obtained by Borrower for such
Termination Space during the next succeeding sixty (60) calendar months pursuant to the respective Replacement Lease is equal to or greater than the sum of the monthly rent last received from the previous Tenant in such Termination Space pursuant to
its Lease multiplied by sixty (60). 
  
 Section 6.5
Distributions from the Mezzanine Collection Account. 
  
 6.5.1 Mezzanine Collection Account. All sums deposited into the Mezzanine Collection Account shall be held and disbursed in accordance with the terms of the Mezzanine Cash Management Agreement. 
  
 6.5.2 Transfer of Senior Collateral Accounts. In the
event the Senior Loan is defeased in full and not refinanced, all sums on deposit in the Senior Collateral Accounts shall be transferred to the Mezzanine Collection Account and held and disbursed as otherwise provided in the Mezzanine Cash
Management Agreement. Thereafter, all Rents shall be deposited into the Mezzanine Collection Account and Lender shall have all of the rights with respect to the Rents as are currently enjoyed by the Senior Lender pursuant to the Senior Cash
Management Agreement. Upon the request of Lender, Borrower shall enter into Modifications to the Cash Management Agreement that confirm such rights. 
  
 6.5.3 Shortfalls in Mezzanine Collection Account. If on any Monthly Payment Date the amount in the Mezzanine Collection Account shall
be less than the amount sufficient to pay the Monthly Debt Service Payment Amount, Senior Mezzanine Guarantor shall deposit into the Mezzanine Collection Account on such Monthly Payment Date the amount of such deficiency. If Senior Mezzanine
Guarantor shall fail to cause such deposit, the same shall constitute an Event of Default and, in addition to all other rights and remedies provided for under the Loan Documents, Lender may disburse and apply the amounts in the Mezzanine Collection
Account toward the components of the Debt (e.g., interest, principal and other amounts payable hereunder) and the Loan in such sequence as Lender shall elect in its sole discretion.] 
  
 Section 6.6 Distributions from the Senior Mezzanine Leasing Reserve
Account. 
  
 6.6.1 Senior Mezzanine Leasing
Reserve Account. Lender shall direct Agent to disburse to Borrower the funds on deposit in the Senior Mezzanine Leasing Reserve Account 

  

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(the “Mezzanine Leasing Funds”) upon satisfaction of each of the following conditions: (i) Borrower shall have expended all Capital
Expenditures/Leasing Funds in accordance with the terms of this Agreement; (ii) Borrower shall submit a request for payment to Lender at least five (5) days prior to such disbursement for a Major Lease and ten (10) Business Days for other Leases;
(iii) on the date such request is received by Lender and on the date such payment is to be made, no Event of Default shall exist and remain uncured; (iv) as to a Major Lease, Lender shall have reviewed and approved the Major Lease (or such Major
Lease shall have been deemed approved hereunder) in respect of which Borrower is obligated to pay or reimburse certain tenant improvement costs and leasing commissions; (v) Lender shall have received a budget for tenant improvement costs and a
schedule of leasing commission payments and the requested disbursement will be used to pay all or a portion of such costs and payments; (vi) Lender shall have received an Officer’s Certificate from Borrower (A) stating that all tenant
improvements at the Property to be funded by the requested disbursement have been completed in good and workmanlike manner and in accordance in all material respects with all applicable federal, state and local laws, rules and regulations, such
certificate to be accompanied by a copy of any license, permit or other approval by any Governmental Authority required in connection with the tenant improvements, if applicable, (B) identifying each Person that supplied materials or labor in
connection with the tenant improvements to be funded by the requested disbursement, and (C) stating that each such Person has been paid in full or will be paid in full upon such disbursement, such certificate to be accompanied by lien waivers or
other evidence of payment reasonably satisfactory to Lender; (vii) at Lender’s option, if (A) requested by Lender in writing and (B) the cost of applicable tenant improvements exceeds $2,000,000 and the applicable disbursement exceeds $100,000,
or at any time after the occurrence and during the continuance of an Event of Default, a title search for the Property indicating that the Property is free from all Liens, claims and other encumbrances not previously approved by Lender; and (viii)
with respect to disbursements for tenant improvements, Lender shall have received such other evidence as Lender shall reasonably request that the tenant improvements at the Property to be funded by the requested disbursement have been completed and
are paid for or will be paid upon such disbursement to Borrower. Lender shall not be required to approve the request for disbursement of Mezzanine Funds more frequently than once each calendar month, unless such requested disbursement is in an
amount greater than the Minimum Disbursement Amount (or a lesser amount if the total amount of Mezzanine Leasing Funds is less than the Minimum Disbursement Amount, in which case only one disbursement of the amount remaining in the account shall be
made). 
  

	 	VII.	[INTENTIONALLY OMITTED] 

  

	 	VIII. 	[INTENTIONALLY OMITTED] 

  

	 	IX.	CONDITIONS PRECEDENT 

  
 Section 9.1 Additional Rights of Lender. This Agreement shall become effective on the date that all of the following conditions shall have
been satisfied (or waived in writing by Lender; it being agreed that Lender’s funding of the Loan shall constitute Lender’s agreement that such conditions have been satisfied or waived unless the parties shall have otherwise agreed in
writing): 
  
 (a) Loan Documents. Lender shall have
received a duly executed original of each Loan Document and a copy of the Senior Loan Documents. 
  

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 (b) Collateral Accounts. Each of the Collateral Accounts shall have been established with the
Agent and funded to the extent required under the Mezzanine Cash Management Agreement. Each of the Senior Collateral Accounts shall have been established with the Senior Cash Management Bank and funded to the extent required under the Mezzanine Cash
Management Agreement and the Senior Cash Management Agreement. 
  
 (c) Opinions of Counsel. Lender shall have received (i) a New York legal opinion, (ii) a legal opinion with respect to the laws of the state in which the Collateral is located, (iii) an Insolvency Opinion, and (iv) a Delaware legal
opinion, each in a form satisfactory to the Lender. 
  
 (d)
Organizational Documents. Lender shall have received all Organization Documents with respect to each Borrower Party, and each other Transfer Restricted Party, in form and substance satisfactory to Lender, and all documents reasonably
requested by Lender relating to the existence of each Borrower Party, the due authorization of the Loan Documents, and other matters relating thereto, each in form and substance reasonably satisfactory to Lender, including, but not limited to:

  
 (i) Authorizing Resolutions. A
certified copy of the resolutions of the board of managers of each Borrower Party approving and adopting the Loan Documents to be executed by such Borrower Party and authorizing the execution and delivery thereof. 
  
 (ii) Organizational Documents. Certified copies of
the certificate of limited partnership and the partnership agreement of the Transfer Restricted Parties, in each case together with all Modifications thereto, and all documents pursuant to which Borrower has been converted to a limited partnership.

  
 (iii) Certificates of Good Standing or
Subsistence. Certificates of good standing or subsistence for each Borrower Party issued as of a recent date by its state of organization and by the state of Pennsylvania. 
  
 (e) Lease; Material Agreements. Lender shall have received true and complete copies of the Approved Management
Agreement, Rent Roll, all Leases and all Material Agreements. 
  
 (f) Lien Search Reports. Lender shall have received satisfactory reports of UCC, tax lien and judgment searches conducted by a search firm acceptable to Lender with respect to the Property, the Collateral and Borrower Parties, such
searches to be conducted in such locations as Lender shall have requested. 
  
 (g) No Default or Event of Default. No Default or Event of Default shall have occurred and be continuing on such date either before or upon the execution and delivery of this Agreement. 
  

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 (h) Representations and Warranties. The representations and warranties herein and in the other
Loan Documents shall be true and correct in all material respects on and as of the Closing Date with the same effect as if made on such date. 
  
 (i) Insurance. Lender shall have received certificates of insurance on ACORD Form 27, demonstrating insurance coverage in respect of the Property
and the business and assets of the Borrower Parties of types, in amounts, with insurers and otherwise in compliance with the terms, provisions and conditions set forth herein. Such certificates shall indicate that Lender is named as an additional
insured on each liability policy. 
  
 (j) Title. Lender
shall have received a marked, signed commitment to issue, or a pro-forma version of, a Qualified Title Insurance Policy in respect of the Property, listing only such exceptions as are reasonably satisfactory to Lender. 
  
 (k) Zoning. Lender shall have received the Zoning Report, which shall
evidence that the Property is in compliance with all applicable zoning requirements. 
  
 (l) Permits; Certificate of Occupancy. Lender shall have received a copy of all material permits necessary for the use and operation of the Property and the certificate(s) of occupancy, if required, for the
Property, all of which shall be in form and substance reasonably satisfactory to Lender. 
  
 (m) Environmental Report. Lender shall have received an Environmental Report (not more than six months old) with respect to the Property which discloses no material environmental contingencies with respect to
the Property. 
  
 (n) Qualified Survey. Lender shall have
received a Qualified Survey with respect to the Property in form and substance reasonably satisfactory to Lender. 
  
 (o) Consents, Licenses, Approvals, etc. Lender shall have received copies of all material consents, licenses and approvals, if any, required in
connection with the execution, delivery and performance by Borrower Parties, and the validity and enforceability, of the Loan Documents, and such consents, licenses and approvals shall be in full force and effect. 
  
 (p) Financial Information. Lender shall have received (i) audited
financial statements for the Property for the prior three Fiscal Years, in each case certified by a “big four” independent certified public accounting firm, (ii) current results from operations certified by an Officer’s Certificate
(signed by the chief financial officer of Approved Property Manager), and (iii) such other financial information as Lender shall reasonably request, which information shall be in form and substance reasonably satisfactory to Lender. 
  
 (q) Annual Budget. Lender shall have received the Fiscal 2003 Annual
Budget with respect to the Property. 
  
 (r) Dismissal of
Lawsuit. Lender shall have received evidence satisfactory to it, in its sole and absolute discretion, that the pending lawsuit against Lender by the Borrower and/or certain affiliates of the Borrower has been dismissed with prejudice.

  

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 (s) Estoppels and SDNAs. Estoppel Certificates and Subordination, Non-Disturbance and Attornment
Agreements, in a form and substance reasonably satisfactory to the Lender, shall be obtained from all Tenants and subtenants listed on Schedule 9.1 attached hereto. 
  

	 	X.	DEFAULTS 

  
 Section 10.1 Event of Default. 
  
 (a) Each of the following events, after the applicable notice and expiration of applicable cure periods set forth in this subsection (a), if any, shall
constitute an event of default hereunder (an “Event of Default”): 
  
 (i) if (A) any monthly installment of principal and/or interest due under the Note or the payment due on the Maturity Date is not paid
when due, provided that it shall not be an Event of Default if (1) a monthly installment of principal and/or interest is not paid when due if sufficient funds are in the Mezzanine Collection Account to make such payment on the Monthly Payment Date
in question and Borrower has not attempted to block the payment of such sums, (2) a monthly installment of principal and/or interest is not paid when due up to two (2) times during any twelve (12) month period as long as such payment is received by
Lender within one (1) Business Day following notice to Borrower that the same is due and payable, or (3) a monthly installment of principal and/or interest is not paid when due and (aa) there are sufficient funds in the Debt Service Reserve Account
to otherwise make such payment on the Monthly Payment Date in question, (bb) Senior Lender has failed to deliver sums to Lender from the Debt Service Reserve Account in violation of the Senior Cash Management Agreement, (cc) such failure by the
Senior Lender is not based on a Default or Event of Default hereunder or under the Senior Loan Agreement, and (dd) Borrower has not attempted to block the payment of such sums, or (B) any other portion of the Debt is not paid when due and such
non-payment continues for five (5) days following notice to Borrower that the same is due and payable; 
  
 (ii) Any representation or warranty made by the Borrower Parties in any of the Loan Documents shall have been false or misleading in any
material respect (or, with respect to any representation or warranty which itself contains a materiality qualifier, in any respect) as of the date such representation or warranty was made and such default is not cured within ten (10) Business Days
of notice thereof, provided that if such default was intentional on the part of either Borrower Party, then no cure period will apply; 
  
 (iii) Any Loan Document shall fail to be in full force and effect or to convey the material liens, rights, powers and privileges purported
to be created thereby and such failure is not cured within two (2) Business Day of notice thereof, or a default shall occur under any of the other Loan Documents beyond the expiration of any applicable notice and cure periods; 
  

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 (iv) Any of the following shall occur: 
  
 (A) Any Loan Party shall commence a voluntary case
concerning itself under Title 11 of the United States Code (as Modified, the “Bankruptcy Code”); 
  
 (B) Any Loan Party shall commence any other proceeding under any reorganization, arrangement, adjustment of debt, relief of creditors,
dissolution, insolvency or similar law of any jurisdiction whether now or hereafter in effect relating to either Borrower Party; 
  
 (C) there is commenced against any Loan Party an involuntary case by any person other than Lender under the Bankruptcy Code, or any such
other proceeding, which remains undismissed for a period of 90 days after commencement; 
  
 (D) Any Loan Party is adjudicated insolvent or bankrupt; 
  
 (E) Any Loan Party suffers appointment by any Person other than Lender or Senior Lender of any custodian or
the like for it or for any substantial portion of its property and such appointment continues unchanged or unstayed for a period of 90 days after commencement of such appointment; 
  
 (F) Any Loan Party makes a general assignment for the benefit of creditors; or 
  
 (G) any action is taken by a Loan Party for the purpose of
effecting any of the foregoing; 
  
 (v) Either
Borrower Party shall fail to maintain in full force and effect all Policies required hereunder and such failure is not cured within five (5) Business Days after such Policies are no longer in full force and effect (except to the extent (i) sums
sufficient to pay for such Policies have been deposited with Senior Lender or Lender in accordance with the terms of this Agreement or the Senior Loan Agreement in an amount sufficient to pay the same, (ii) if deposited with the Senior Lender,
Borrower is exercising best efforts to enforce provisions under the Senior Loan Documents which require Senior Lender to pay for the Policies and (iii) neither Borrower Party has attempted to impede Senior Cash Management Bank’s or Agent’s
attempts to pay same); 
  
 (vi) A default shall
occur in the due performance or observance by either Borrower Party of any term, covenant or agreement contained in Section 4.1.1(a), 4.1.9, Sections 4.2.1 through 4.2.6, or Section 4.2.9, 4.2.11, 4.2.14, 4.2.15, 4.2.17 or
4.2.18 and such default shall continue for a period of two (2) Business Days after notice to Borrower; 
  
 (vii) A default shall occur in the due performance or observance by either Borrower Party of any term, covenant or agreement contained in
Section 4.2.7, 4.2.8, 4.2.10, 4.2.12, 4.2.13 or 4.2.16 and such default shall continue for a period of five (5) Business Days after notice to Borrower; 
  
 (viii) A default shall occur in the due performance or observance by either Borrower Party of any term,
covenant or agreement contained in Section 4.1.12 

  

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and such default shall continue for a period of fifteen (15) Business Days after notice to Borrower; 
  
 (ix) A default shall occur in the due performance or
observance by either Borrower Party of any term, covenant or agreement (other than those referred to in subsections (i) through (x), inclusive, of this Section 10.1(a)) contained in this Agreement or in any of the other Loan
Documents, provided that if such default referred to in this subsection (x) is susceptible of being cured, such default shall not constitute an Event of Default unless and until it shall remain uncured for 10 days after Borrower
receives written notice thereof, for a default which can be cured by the payment of money, or for 30 days after Borrower receives written notice thereof, for a default which cannot be cured by the payment of money; provided, however,
that if a default which cannot be cured by the payment of money is susceptible of cure but cannot reasonably be cured within such 30-day period and Borrower Parties shall have commenced to cure such default within such 30-day period and thereafter
diligently and expeditiously proceeds to cure the same, Borrower Parties shall have such additional time as is reasonably necessary to effect such cure, but in no event in excess of 90 days from the original notice; 
  
 (x) An “Event of Default” shall occur under, and
as defined in, any of (i) the Senior Loan Documents, (ii) the Junior A Loan Documents, or (iii) the Junior B Loan Documents. 
  
 Section 10.2 Remedies. 
  
 (a) During the continuance of an Event of Default, Lender may by written notice to Borrower and Senior Mezzanine Guarantor, in addition to any other
rights or remedies available pursuant to this Agreement, the Note, the Pledge Agreements and the other Loan Documents, at law or in equity, declare by written notice to Borrower and Senior Mezzanine Guarantor all or any portion of the Debt to be
immediately due and payable, whereupon all or such portion of the Debt shall so become due and payable, and may enforce or avail itself of any or all rights or remedies provided in the Loan Documents against Borrower Parties, subject to Section
11.22 hereof, and the Collateral (including all rights or remedies available at law or in equity); provided, however, that, notwithstanding the foregoing, if an Event of Default specified in paragraph 10.1(a)(iv) shall
occur, then the Debt shall immediately become due and payable without the giving of any notice or other action by Lender. Any actions taken by Lender shall be cumulative and concurrent and may be pursued independently, singly, successively, together
or otherwise, at such time and in such order as Lender may determine in its sole discretion, to the fullest extent permitted by law, without impairing or otherwise affecting the other rights and remedies of Lender permitted by law, equity or
contract or as set forth herein or in the other Loan Documents. 
  
 (b) In the event of the foreclosure or other action by Lender to enforce its remedies in connection with all or any portion of the Collateral, Lender shall apply all net proceeds of such foreclosure received to repay the Debt, the Debt
shall be reduced to the extent of such net proceeds and the remaining portion of the Debt shall remain outstanding and secured by the Collateral and the other Loan Documents, it being understood and agreed by each 

  

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Borrower Party that, subject to the provisions of Section 11.22 hereof, each Borrower Party is liable for the repayment of all the Debt;
provided, however, that at the election of Lender, the Note shall be deemed to have been accelerated only to the extent of the net proceeds actually received by Lender with respect to the Collateral and applied in reduction of the
Debt. 
  
 (c) During the continuance of any Event of Default,
Lender may, but without any obligation to do so and, after acceleration of the Loan, without notice to or demand on either Borrower Party, and without releasing Borrower Parties from any obligation hereunder or under the other Loan Documents, take
any action to cure such Event of Default. Lender may enter upon any or all of the Property upon reasonable notice to Borrower for such purposes or appear in, defend, or bring any action or proceeding to protect its interests and the interests of
Lender in the Collateral or to foreclose its security interest under and as provided in the Pledge Agreements or collect the Debt. The costs and reasonable expenses incurred by Lender in exercising rights under this paragraph (including reasonable
attorneys’ fees), with interest at the Default Rate for the period after notice from Lender that such costs or expenses were incurred to the date of payment to Lender, shall constitute a portion of the Debt shall be secured by the Pledge
Agreements and other Loan Documents and shall be due and payable to Lender upon demand therefor. 
  
 (d) Interest shall accrue on any judgment obtained by Lender in connection with its enforcement of the Loan at a rate of interest equal to the Default
Rate. 
  
 Section 10.3 No Waiver. 
  
 No delay or omission to exercise any remedy, right or power accruing upon an
Event of Default shall impair any such remedy, right or power or shall be construed as a waiver thereof, but any such remedy, right or power may be exercised from time to time and as often as may be deemed by Lender to be expedient. A waiver of any
Default or Event of Default shall not be construed to be a waiver of any subsequent Default or Event of Default or to impair any remedy, right or power consequent thereon. 
  
 Section 10.4 Application of Payments After an Event of Default. 
  
 Notwithstanding anything to the contrary contained herein, during the
continuance of an Event of Default, all amounts received by Lender in respect of the Loan shall be applied at Lender’s sole discretion either toward the components of the Debt (e.g., interest, principal and other amounts payable
hereunder) in such sequence as Lender shall elect in its sole discretion or toward the payment of Taxes, Operating Expenses, and Capital Expenditures. 
  

	 	XI.	MISCELLANEOUS 

  
 Section 11.1 Successors and Assigns. 
  
 All covenants, promises and agreements in this Agreement, by or on behalf of Borrower Parties, shall inure to the benefit of the legal representatives,
successors and assigns of Lender. 
  

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 Section 11.2 Lender’s Discretion. 
  
 Whenever pursuant to this Agreement Lender exercises any right given to it to
approve or disapprove, or any arrangement or term is to be satisfactory to Lender, the decision of Lender to approve or disapprove or to decide whether arrangements or terms are satisfactory or not satisfactory shall (except as is otherwise
specifically herein provided) be in the sole discretion of Lender and shall be final and conclusive. Prior to a Securitization, whenever pursuant to this Agreement the Rating Agencies are given any right to approve or disapprove, or any arrangement
or term is to be satisfactory to the Rating Agencies, the decision of Lender to approve or disapprove or to decide whether arrangements or terms are satisfactory or not satisfactory, based upon Lender’s determination of Rating Agency criteria,
shall be substituted therefore. 
  
 Section 11.3
Governing Law. 
  
 (A) THIS AGREEMENT
WAS NEGOTIATED IN THE STATE OF NEW YORK, THE LOAN WAS MADE BY LENDER AND ACCEPTED BY BORROWER IN THE STATE OF NEW YORK, AND THE PROCEEDS OF THE LOAN DELIVERED PURSUANT HERETO WERE DISBURSED FROM THE STATE OF NEW YORK, WHICH STATE THE PARTIES AGREE
HAS A SUBSTANTIAL RELATIONSHIP TO THE PARTIES AND TO THE UNDERLYING TRANSACTION EMBODIED HEREBY, AND IN ALL RESPECTS, INCLUDING, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS AGREEMENT, THE
NOTE AND THE OTHER LOAN DOCUMENTS AND THE OBLIGATIONS ARISING HEREUNDER AND THEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE (WITHOUT REGARD
TO PRINCIPLES OF CONFLICT OF LAWS) AND ANY APPLICABLE LAW OF THE UNITED STATES OF AMERICA (OTHER THAN WITH RESPECT TO THE LIENS AND SECURITY INTERESTS IN PROPERTY WHOSE PERFECTION, PRIORITY AND ENFORCEMENT IS COVERED BY ARTICLE 9 OF THE UCC
(INCLUDING, WITHOUT LIMITATION, THE ACCOUNTS AND OTHER COLLATERAL) WHICH SHALL BE GOVERNED BY THE LAW OF THE JURISDICTION APPLICABLE THERETO IN ACCORDANCE WITH SECTIONS 9-301 THROUGH 9-307 OF THE UCC AS IN EFFECT IN THE STATE OF NEW YORK). TO THE
FULLEST EXTENT PERMITTED BY LAW, EACH BORROWER PARTY HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS AGREEMENT, THE NOTE AND THE OTHER LOAN DOCUMENTS, AND THIS AGREEMENT, THE NOTE
AND THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK PURSUANT TO SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW EXCEPT AS SPECIFICALLY SET FORTH ABOVE. 
  
 (B) ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR
EITHER BORROWER PARTY ARISING OUT OF OR RELATING TO THIS AGREEMENT MAY AT LENDER’S OPTION BE INSTITUTED IN ANY FEDERAL OR 

  

 -71- 

 
STATE COURT IN THE CITY OF NEW YORK, COUNTY OF NEW YORK, PURSUANT TO SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW AND EACH BORROWER PARTY WAIVES
ANY OBJECTIONS WHICH IT MAY NOW OR HEREAFTER HAVE BASED ON VENUE AND/OR FORUM NON CONVENIENS OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND EACH BORROWER PARTY HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUIT, ACTION OR
PROCEEDING. EACH BORROWER PARTY DOES HEREBY DESIGNATE AND APPOINT: 
  
 Mr. Randall Scott 
 c/o Thomas Properties Group, LLC 
 One Commerce Square 
 2004 Market Street, Suite 2300 
 Philadelphia, Pennsylvania 19103 
  
 AS ITS AUTHORIZED AGENT TO ACCEPT AND ACKNOWLEDGE ON ITS BEHALF SERVICE OF ANY AND ALL PROCESS WHICH MAY BE SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING
IN ANY FEDERAL OR STATE COURT IN NEW YORK, NEW YORK, AND AGREES THAT SERVICE OF PROCESS UPON SAID AGENT AT SAID ADDRESS AND WRITTEN NOTICE OF SAID SERVICE MAILED OR DELIVERED TO SUCH BORROWER PARTY IN THE MANNER PROVIDED HEREIN SHALL BE DEEMED IN
EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON SUCH BORROWER PARTY, IN ANY SUCH SUIT, ACTION OR PROCEEDING IN THE STATE OF NEW YORK. EACH BORROWER PARTY (I) SHALL GIVE PROMPT NOTICE TO LENDER OF ANY CHANGED ADDRESS OF ITS AUTHORIZED AGENT
HEREUNDER, AND (II) MAY AT ANY TIME AND FROM TIME TO TIME DESIGNATE A SUBSTITUTE AUTHORIZED AGENT (WHICH SUBSTITUTE AGENT AND OFFICE SHALL BE DESIGNATED AS THE PERSON AND ADDRESS FOR SERVICE OF PROCESS). 
  
 Section 11.4 Modification, Waiver in Writing. 
  
 No Modification, discharge, termination or waiver of any provision of this
Agreement or of any other Loan Document, nor consent to any departure by either Borrower Party therefrom, shall in any event be effective unless the same shall be in a writing signed by the party against whom enforcement is sought, and then such
waiver or consent shall be effective only in the specific instance, and for the purpose, for which given. Except as otherwise expressly provided herein, no notice to, or demand on either Borrower Party, shall entitle such Borrower Party to any other
or future notice or demand in the same, similar or other circumstances. 
  
 Section 11.5 Delay Not a Waiver. 
  
 Neither any failure nor any delay on the part of Lender in insisting upon strict performance of any term, condition, covenant or agreement, or exercising any right, power, remedy or privilege hereunder, or under any other Loan Document,
shall operate as or constitute a waiver thereof, nor shall a single or partial exercise thereof preclude any other future exercise, or the exercise of any other right, power, remedy or privilege. In particular, and not by way of 

  

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limitation, by accepting payment after the due date of any amount payable under this Agreement or any other Loan Document, Lender shall not be deemed to have
waived any right either to require prompt payment when due of all other amounts due under this Agreement or the other Loan Documents, or to declare a default for failure to effect prompt payment of any such other amount. Lender shall have the right
to waive or reduce any time periods that Lender is entitled to under the Loan Documents in its sole and absolute discretion. 
  
 Section 11.6 Notices. 
  
 All notices, demands, requests, consents, approvals or other communications (any of the foregoing, a “Notice”) required, permitted, or
desired to be given hereunder shall be in writing sent by telefax (with answer back acknowledged) or by registered or certified mail, postage prepaid, return receipt requested, or delivered by hand or reputable overnight courier addressed to the
party to be so notified at its address hereinafter set forth, or to such other address as such party may hereafter specify in accordance with the provisions of this Section 11.6. Any Notice shall be deemed to have been received: (a) upon
receipt or refusal of acceptance, (b) on the date of sending by telefax if sent during business hours on a Business Day (otherwise on the next Business Day), followed by delivery of a hard copy in any other manner set forth herein, and (c) on the
date of delivery by hand if delivered during business hours on a Business Day (otherwise on the next Business Day), in each case addressed to the parties as follows: 
  

			
	 If to Lender:
	 	 DB Realty Mezzanine Investment Fund II, L.L.C.
 1251 Avenue of the Americas, 9th Floor
 New York, New York 10020
 Attention: Craig Henrich and John Randall
 Facsimile No.: (646)
324-3077

		
	 with a copy to:
	 	 Deutsche Bank Trust Company Americas
 60 Wall Street
 NYC60-1110
 New York, New York 10005
 Attention: Bryan Whalen, Loan Administration
 Facsimile No.: (212) 797-4885

		
	 with a copy to:
	 	 Morrison & Foerster LLP
 555 West Fifth Street
 Los Angeles, CA 90013
 Attention: Donald I. Berger, Esq.
 Facsimile No.: (213) 892-5454

  

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	 If to Borrower Parties:
	 	 Philadelphia Plaza-Phase II, LP
 TCS SPE 1, L.P.
 c/o Thomas Properties Group LLC
 515 South Flower, Suite 600
 Los Angeles, California 90071
 Attention: Mr. James Thomas
 Facsimile No.: (213) 633-4760

		
	 with a copy to:
	 	 Thomas Properties Group
 One Commerce Square
 2005 Market Street, Suite 2300
 Philadelphia, Pennsylvania 19103
 Attention: Mr. Randall Scott
 Facsimile No. (215) 851-6021

		
	 with a copy to:
	 	 Pircher, Nichols & Meeks
 1925 Century Park East, Suite 1700
 Los Angeles, California 90067
 Attention: Real Estate Notices (LJP/SCS)
 Facsimile No. (310) 201-8922

  
 Section 11.7
Trial by Jury. 
  
 EACH BORROWER PARTY AND LENDER EACH
HEREBY AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVES ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THE LOAN DOCUMENTS, OR ANY CLAIM,
COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY BORROWER AND LENDER, AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE
RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE. EACH PARTY IS HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER. 
  
 Section 11.8 Headings. 
  
 The Article and/or Section headings and the Table of Contents in this Agreement are included herein for convenience of
reference only and shall not constitute a part of this Agreement for any other purpose. 
  
 Section 11.9 Severability. 
  
 Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under
applicable law, such provision shall be ineffective to the 

  

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extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement. 
  
 Section 11.10 Preferences. 
  
 Lender shall have the continuing and exclusive right to apply or reverse and
reapply any and all payments by either Borrower Party to any portion of the obligations of Borrower hereunder or Senior Mezzanine Guarantor under its Guaranty. To the extent either Borrower Party makes a payment or payments to Lender, which payment
or proceeds or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, receiver or any other party under any bankruptcy law, state or federal law, common law or
equitable cause, then, to the extent of such payment or proceeds received, the obligations hereunder or part thereof intended to be satisfied shall be revived and continue in full force and effect, as if such payment or proceeds had not been
received by Lender. 
  
 Section 11.11 Waiver of
Notice. 
  
 Neither Borrower Party shall be entitled to any
notices of any nature whatsoever from Lender except with respect to matters for which this Agreement or the other Loan Documents specifically and expressly provide for the giving of notice by Lender to Borrower Parties and except with respect to
matters for which Borrower Parties are not, pursuant to applicable Legal Requirements, permitted to waive the giving of notice. Each Borrower Party hereby expressly waives the right to receive any notice from Lender with respect to any matter for
which this Agreement or the other Loan Documents do not specifically and expressly provide for the giving of notice by Lender to Borrower Parties. 
  
 Section 11.12 Remedies of Borrower. 
  
 In the event that a claim or adjudication is made that Lender or its agents have acted unreasonably or unreasonably delayed acting in any case where, by
law or under this Agreement or the other Loan Documents, Lender or such agent, as the case may be, has an obligation to act reasonably or promptly, neither Lender nor its agents shall be liable for any monetary damages, and each Borrower
Party’s sole remedy shall be limited to commencing an action seeking injunctive relief or declaratory judgment unless Lender’s actions are arbitrary and capricious. Any action or proceeding to determine whether Lender has acted reasonably
shall be determined by an action seeking declaratory judgment unless Lender’s actions are arbitrary and capricious. 
  
 Section 11.13 Expenses. 
  
 Borrower shall pay or, if Borrower fails to pay, reimburse Lender upon ten (10) days of receipt of notice from Lender, for all reasonable costs and
expenses (including reasonable attorneys’ fees and disbursements) incurred by Lender in connection with (i) any default by either Borrower Party in such Borrower Party’s ongoing performance of and compliance with its agreements and
covenants contained in this Agreement and the other Loan Documents on its part to be performed or complied with after the Closing Date, including, without limitation, confirming compliance with environmental and insurance requirements; 

  

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(ii) the negotiation, preparation, execution, delivery and administration of any consents, waivers or other Modifications to this Agreement and the other
Loan Documents and any other documents or matters requested by Borrower Parties; (iii) the filing and recording fees and expenses, title insurance and other similar expenses incurred, in creating and perfecting the Liens in favor of Lender pursuant
to this Agreement and the other Loan Documents; (iv) enforcing or preserving any rights, in response to third party claims or, subject to the terms hereof, the prosecuting or defending of any action or proceeding or other litigation or otherwise, in
each case against, under or affecting either Borrower Party, this Agreement, the other Loan Documents, the Property, or any other security given for the Loan; and (v) enforcing any obligations of or collecting any payments due from either Borrower
Party under this Agreement the Guaranty executed by the Senior Mezzanine Guarantor, the other Loan Documents or with respect to the Property or in connection with any refinancing or restructuring of the credit arrangements provided under this
Agreement in the nature of a “work-out” or of any insolvency or bankruptcy proceedings; provided, however, that Borrower shall not be liable for the payment of any such costs and expenses to the extent the same arise by
reason of the gross negligence, illegal acts, fraud or willful misconduct of Lender. Any costs due and payable to Lender may be paid to Lender pursuant to the Cash Management Agreement after ten (10) days prior written notice from Lender to
Borrower. Notwithstanding the foregoing, the Borrower Parties shall not be responsible for the legal fees and costs of attorneys incurred by Lender in connection with the closing of the Loan. 
  
 Section 11.14 Schedules Incorporated. 
  
 The Schedules annexed hereto are hereby incorporated herein as a part of this
Agreement with the same effect as if set forth in the body hereof. 
  
 Section 11.15 Offsets, Counterclaims and Defenses. 
  
 Any assignee of Lender’s interest in and to this Agreement and the other Loan Documents shall take the same free and clear of all offsets, counterclaims or defenses which are unrelated to such documents which Borrower Parties may
otherwise have against any assignor of such documents, and no such unrelated counterclaim or defense shall be interposed or asserted by either Borrower Party in any action or proceeding brought by any such assignee upon such documents and any such
right to interpose or assert any such unrelated offset, counterclaim or defense in any such action or proceeding is hereby expressly waived by each Borrower Party. 
  
 Section 11.16 No Joint Venture or Partnership; No Third Party Beneficiaries. 
  
 (a) Borrower Parties and Lender intend that the relationships created
hereunder and under the other Loan Documents be solely that of borrower and lender. Nothing herein or therein is intended to create a joint venture, partnership, tenancy-in-common, or joint tenancy relationship between Borrower Parties and Lender
nor to grant Lender any interest in the Collateral other than that of secured party, beneficiary or lender. 
  
 (b) This Agreement and the other Loan Documents are solely for the benefit of Lender and nothing contained in this Agreement or the other Loan Documents
shall be 

  

 -76- 

 
deemed to confer upon anyone other than Lender any right to insist upon or to enforce the performance or observance of any of the obligations contained
herein or therein. All conditions to the obligations of Lender to make the Loan hereunder are imposed solely and exclusively for the benefit of Lender and no other Person shall have standing to require satisfaction of such conditions in accordance
with their terms or be entitled to assume that Lender will refuse to make the Loan in the absence of strict compliance with any or all thereof and no other Person shall under any circumstances be deemed to be a beneficiary of such conditions, any or
all of which may be freely waived in whole or in part by Lender if, in Lender’s sole discretion, Lender deems it advisable or desirable to do so. 
  
 Section 11.17 Publicity. 
  
 All news releases, publicity or advertising by Borrower Parties, Lender or their affiliates through any media intended to reach the general public which
refers to the Loan Documents or the financing evidenced by the Loan Documents, to Borrower Parties, Lender, or any of their affiliates shall be subject to the prior approval of Lender and Borrower, which shall not be unreasonably withheld.
Notwithstanding the foregoing, disclosure required by any federal or state securities laws, rules or regulations or other applicable Legal Requirements, as determined by any such party’s counsel, shall be not be subject to the prior written
approval of the other. 
  
 Section 11.18 Waiver of Marshalling
of Assets. 
  
 To the fullest extent permitted by law, each
Borrower Party, for itself and its successors and assigns, waives all rights to a marshalling of the assets of such Borrower Party, such Borrower Party’s partners and others with interests in such Borrower Party, and of the Collateral, and
shall not assert any right under any laws pertaining to the marshalling of assets, the sale in inverse order of alienation, homestead exemption, the administration of estates of decedents, or any other matters whatsoever to defeat, reduce or affect
the right of Lender under the Loan Documents to a sale of the Collateral for the collection of the Debt without any prior or different resort for collection or of the right of Lender to the payment of the Debt out of the net proceeds of the
Collateral in preference to every other claimant whatsoever. 
  
 Section 11.19 Waiver of Offsets/Defenses/Counterclaims. 
  
 Each Borrower Party hereby waives the right to assert a counterclaim, other than a compulsory counterclaim, in any action or proceeding brought against it by Lender or its agents or otherwise to offset any obligations to make the payments
required by the Loan Documents. No failure by Lender to perform any of its obligations hereunder shall be a valid defense to, or result in any offset against, any payments which Borrower Parties are obligated to make under any of the Loan Documents.

  
 Section 11.20 Conflict; Construction of Documents;
Reliance. 
  
 In the event of any conflict between the
provisions of this Agreement and any of the other Loan Documents, the provisions of this Agreement shall control. The parties hereto acknowledge that they were represented by competent counsel in connection with the negotiation, drafting and
execution of the Loan Documents and that such Loan Documents shall 

  

 -77- 

 
not be subject to the principle of construing their meaning against the party which drafted same. Each Borrower Party acknowledges that, with respect to the
Loan, each Borrower Party shall rely solely on its own judgment and advisors in entering into the Loan without relying in any manner on any statements, representations or recommendations of Lender or any parent, subsidiary or Affiliate of Lender.
Lender shall not be subject to any limitation whatsoever in the exercise of any rights or remedies available to it under any of the Loan Documents or any other agreements or instruments which govern the Loan by virtue of the ownership by it or any
parent, subsidiary or Affiliate of Lender of any equity interest any of them may acquire in either Borrower Party, and each Borrower Party hereby irrevocably waives the right to raise any defense or take any action on the basis of the foregoing with
respect to Lender’s exercise of any such rights or remedies. Each Borrower Party acknowledges that Lender engages in the business of real estate financings and other real estate transactions and investments which may be viewed as adverse to or
competitive with the business of Borrower Parties or their Affiliates. 
  
 Section 11.21 Brokers and Financial Advisors. 
  
 Each Borrower Party hereby represents that it has dealt with no financial advisors, brokers, underwriters, placement agents, agents or finders in connection with the transactions contemplated by this Agreement. Each Borrower Party shall
indemnify, defend and hold Lender harmless from and against any and all third party (i.e. other than Borrower Parties or their Affiliates) claims, liabilities, out of pocket costs and expenses of any kind (including Lender’s attorneys’
fees and expenses) in any way relating to or arising from a claim by any Person that such Person acted on behalf of either Borrower Party or Lender in connection with the transactions contemplated herein. The provisions of this Section 11.21
shall survive the expiration and termination of this Agreement and the payment of the Debt. 
  
 Section 11.22 Exculpation. 
  
 (a) Lender acknowledges that in making the Loan, Lender has not relied on the credit or the assets of Borrower and that Lender is relying on and looking solely to the credit and the assets of the Senior Mezzanine Guarantor, the Collateral
under the Pledge Agreements that do not constitute assets of the Borrower or its general partner, and any other collateral, guaranties, or indemnities (from Persons other than Borrower or its general partner) (collectively, the “Collateral
Obligations”, and the obligors under such Collateral Obligations, the “Collateral Providers”), for the repayment of the Loan. Therefore, notwithstanding anything to the contrary contained in the Note, this Loan Agreement or
any of the other Loan Documents, neither Borrower nor any present nor future direct general partner in Borrower (as used in this Section 11.22, “general partner”) shall have any personal liability, directly or indirectly,
under or in connection with the Note, this Loan Agreement or any of the Loan Documents, or any amendment or amendments to any of the foregoing made at any time or times hereafter. Lender shall not have any claim against Borrower and shall have no
recourse against any assets of Borrower or such general partner, including the Property, under any circumstances, for Borrower’s breach of any obligation under the Note, this Loan Agreement or any other Loan Document, and Lender shall not
enforce the liability and obligation of Borrower or its general partner, except as provided below, to perform and observe the obligations contained in this Note or any of the other Loan Documents by any action or proceeding against Borrower or any
such general partner or their respective assets. Lender, on behalf of itself and its successors and 

  

 -78- 

 
assigns, hereby waives any and all such personal liability and rights against the assets of Borrower and the general partner, including the Property;
provided, however, that nothing contained herein shall affect or limit Lender’s rights (i) to enforce any of the obligations under the Note, this Loan Agreement or any of the other Loan Document against the Senior Mezzanine Guarantor or to
enforce and realize upon its interests under Pledge Agreements and other Collateral Obligations given to Lender pursuant to the Loan Documents; (ii) to name Borrower in any action or proceeding solely to enforce Lender’s rights and remedies
against Senior Mezzanine Guarantor or the Collateral Providers, including foreclosure and other remedies under the Pledge Agreement and the other Collateral Obligations; (iii) to seek specific performance of any terms and conditions under the Loan
Documents; or (iv) to seek declaratory relief under the Loan Documents; provided, further that in each of clauses (i), (ii), (iii) and (iv) above, in no event shall Borrower or its general partner have any personal liability with respect to such
actions or proceedings or judgments issued therein, in no event shall any assets of Borrower or its general partner be available to pay any judgment or other obligation under or in connection with such action or proceeding, and in no event shall
Lender enforce or execute any judgment against any assets of Borrower or its general partner or seek any monetary relief against Borrower or its general partner. 
  
 For further avoidance of doubt, the provisions of this Section shall not (a) constitute a waiver, release or impairment of
any obligation of Senior Mezzanine Guarantor or the Collateral Providers evidenced or secured by any of the Loan Documents; (b) to the extent Lender commences an action or suit seeking foreclosure under the Pledge Agreements, it shall only name
Borrower as a party defendant in such action to the extent required to pursue such foreclosure and sale under the Pledge Agreements; (c) affect the validity or enforceability of any guaranty made in connection with the Loan or any of the rights and
remedies of Lender thereunder, including the right of Lender to seek recourse thereunder against the guarantor, to the extent permitted in such guaranty; or (d) impair the right of Lender to obtain the appointment of a receiver with respect to
Senior Mezzanine Guarantor or the Collateral Providers. The execution of this Agreement by the Senior Mezzanine Guarantor shall not in any way increase of alter the obligations of the Senior Mezzanine Guarantor from those obligations set forth in
its Guaranty. 
  
 (b) Notwithstanding anything to the contrary in
this Agreement, the Note or any of the Loan Documents, Lender shall not be deemed to have waived any right which Lender may have under Section 506(a), 506(b), 1111(b) or any other provisions of the Bankruptcy Code to file a claim for the full amount
of the Debt or to require that all Collateral shall continue to secure all of the Debt owing to Lender in accordance with the Loan Documents. 
  
 (c) Notwithstanding anything to the contrary contained in this Agreement (other than Section 11.22(d) below) or the Note, except as set forth in
Section 11.22(d) below, neither any present or future Constituent Partner in Borrower nor any present or future shareholder, officer, director, employee, trustee, beneficiary, advisor, partner, member, principal, participant or agent of or in
Borrower or of or in any person or entity that is or becomes a Constituent Partner in Borrower (collectively, the “Borrower’s Partners”) shall have any personal liability, directly or indirectly, under this Agreement, the Note
or any of the Loan Documents, or any Modifications to any of the foregoing made at any time or times hereafter and, except as set forth in this Section 11.22(c) and Section 11.22(d) below, Lender, on behalf of itself and its successors
and assigns, hereby waives any such personal liability. The term “Constituent 

  

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Partner”, as used herein, shall mean, any direct partner in Borrower and any person or entity that, directly or indirectly, through one or more
other partnerships, limited liability companies or corporation or other entities is a partner in Borrower. For purposes of this Section 11.22(c), subject to Section 11.22(d) below, neither the negative capital account of any
Constituent Partner in Borrower or in any other Constituent Partner in Borrower, nor any obligation of any. Constituent Partner in Borrower to restore a negative capital account or to contribute or loan capital to Borrower or to any other
Constituent Partner in Borrower shall at any time be deemed to be the property or an asset of Borrower (or any other Constituent Partner) and neither Lender nor any of its successors or assigns shall have any right to collect, enforce or proceed
against with respect to any such negative capital account or obligation to restore, contribute or loan. 
  
 (d) Notwithstanding anything in this Section 11.22 to the contrary, the provisions of Section 11.22(c) above limiting the liability of the
Borrower Partners and the rights of Lender with respect to the capital accounts of any Constituent Partner shall not (i) limit the rights, remedies, obligations, liabilities and other terms set forth in the Guaranties, Pledge Agreements, the
Environmental Indemnity, the Mezzanine Cash Management Agreement, the Subordination of Property Management Agreement, or any other Loan Document executed by a Borrower Partner and imposing liability on such Person thereunder, or (ii) limit the
liability of any Borrower Partner for its own willful or tortious misconduct to the extent any such Borrower Partner would otherwise be liable under applicable law. 
  
 Section 11.23 Prior Agreements. 
  
 This Agreement and the other Loan Documents contain the entire agreement of the parties hereto and thereto in respect of the
transactions contemplated hereby and thereby, and all prior agreements among or between such parties, whether oral or written, including, without limitation, the term sheet dated June 3, 2003 (as Modified) between Borrower, Lender and Morgan Stanley
Mortgage Capital, Inc., are superseded by the terms of this Agreement and the other Loan Documents. 
  
 Section 11.24 Servicer. 
  
 (a) At the option of Lender, the Loan may be serviced by a servicer (the “Servicer”) selected by Lender and Lender may delegate all or
any portion of its responsibilities under this Agreement and the other Loan Documents to the Servicer pursuant to a servicing agreement (the “Servicing Agreement”) between Lender and Servicer. Lender shall be responsible for any
reasonable set-up fees or any other initial costs relating to or arising under the Servicing Agreement; and neither Borrower Party shall be responsible for payment of the monthly servicing fee due to the Servicer under the Servicing Agreement.
Servicer shall, however, be entitled to reimbursement of costs and expenses as and to the same extent (but without duplication) as Lender is entitled thereto under the applicable provisions of this Agreement and the other Loan Documents. The initial
Servicer shall be Deutsche Bank Trust Company Americas. 
  
 (b)
Upon notice thereof from Lender, Servicer shall have the right to exercise all rights of Lender and enforce all obligations of each Borrower Party pursuant to the provisions of this Agreement, the Note and the other Loan Documents. 
  

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 (c) Provided Borrower shall have been given notice of Servicer’s address by Lender, Borrower Parties
shall deliver to Servicer duplicate originals of all notices and other instruments which Borrower Parties may or shall be required to deliver to Lender pursuant to this Agreement, the Note and the other Loan Documents (and no deliver of such notices
or other instruments by Borrower Parties shall be of any force or effect unless delivered to Lender and Servicer as provided above). 
  
 Section 11.25 Joint and Several Liability. 
  
 If more than one Person has executed this Agreement as “Borrower,” the representations, covenants, warranties and obligations of all such
Persons hereunder shall be joint and several. 
  
 Section 11.26
Creation of Security Interest. 
  
 Notwithstanding any other
provision set forth in this Agreement, the Note, the Pledge Agreements or any of the other Loan Documents, Lender may at any time create a security interest in all or any portion of its rights under this Agreement, the Note, the Pledge Agreements
and any other Loan Document (including, without limitation, the advances owing to it) in favor of any Federal Reserve Bank in accordance with Regulation A of the Board of Governors of the Federal Reserve System. 
  
 Section 11.27 Assignments and Participations. 
  
 (a) Neither Borrower Party may sell, assign or transfer any interest in the
Loan Documents or any portion thereof (including each Borrower Party’s rights, title, interests, remedies, powers and duties hereunder and thereunder). 
  
 (b) Each Lender and each assignee of all or a portion of either Loan shall have the right from time to time in its discretion to sell, transfer, pledge,
or hypothecate the applicable Note or any interest therein (an “Assignment”) and/or sell a participation interest in such Note (a “Participation”). Each Borrower Party agrees reasonably to cooperate with each
Lender, at such Lender’s request, in order to effectuate any such Assignment or Participation. In the case of an Assignment, (i) each assignee shall have, to the extent of such Assignment, the rights, benefits and obligations of the assigning
Lender as a “Lender” hereunder and under the other Loan Documents, (ii) the assigning Lender shall, to the extent that rights and obligations hereunder have been assigned by it pursuant to an Assignment, relinquish its rights and be
released from its obligations under this Agreement provided that written notice of such assignment has been communicated to Borrower, and (iii) one holder of all or a portion of the Loan shall serve as agent for all such Lenders and shall be the
sole agent of such Lenders to whom notices, requests and other communications shall be addressed and the sole party authorized to grant or withhold consents or waivers and send notices, requests and other communications hereunder on behalf of such
Lenders (subject, in each case, to an appointment of a Servicer, pursuant to Section 11.24, to receive such notices, requests and other communications and/or to grant or withhold consents or waivers, as the case may be) and to be the sole
agent of such Lenders to designate the account to which payments shall be made by Borrower Parties to such Lenders hereunder and under the other Loan Documents (each Borrower Party being hereby authorized to rely fully on any 

  

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instructions received from such agent notwithstanding any contrary instructions from any other Lender). Borrower agrees that upon effectiveness of any
Assignment of any Note in part, Borrower will, at no cost to Borrower (other than de-minimis costs owed to its attorneys in connection therewith), promptly provide to the assignor and the assignee separate promissory notes in the amount of their
respective interests (but, if applicable, with a notation thereon that. it is given in substitution for and replacement of an original Note or any replacement thereof), and otherwise in the form of such Note, upon return of the Note then being
replaced; provided that Borrower shall not be obligated to incur any additional liability based on the issuance of new Notes. The assigning Lender shall notify in writing each of the other Lenders of any Assignment. Each potential assignee and
potential participant (until it becomes clear that such potential assignee or potential participant is not to become an actual assignee or participant), and each actual assignee and participant, each commercial paper dealer or provider of a surety,
guaranty or credit or liquidity enhancement to Lender, and each entity organized for the purpose of purchasing or making loans secured by financial assets for which Lender acts as the administrative agent, and any officers, directors, employees,
outside accountants and attorneys of the foregoing, shall be entitled to receive all information received by Lender under this Agreement and the terms and conditions contained in the Loan Documents. After the effectiveness of any Assignment or
Participation, the party conveying the Assignment or Participation shall provide written notice to Borrower of the identity and address of the assignee or participant. Subject to the terms of this Agreement, after an Assignment, the assigning Lender
(in addition to the assignee, as a holder of the Note) shall continue to have the benefits of any indemnifications contained herein which such assigning Lender had prior to such assignment with respect to matters occurring prior to the date of such
assignment. 
  
 Except as otherwise provided under Section
11.13 of this Agreement, any material, out-of-pocket expenses incurred by Borrower in connection with its cooperation with Lender under this paragraph (b) shall be reimbursed to the Borrower by Lender (Lender further agreeing that Borrower shall
not be liable for expenses incurred by Lender in connection with this paragraph (b)). 
  
 (c) If, pursuant to this Section 11.27, any interest in this Agreement or any Notes are transferred to any transferee that is not a U.S. Person, the transferor Lender shall cause such transferee, concurrently
with the effectiveness of such transfer, (i) to furnish to the transferor Lender and Borrower either Form W-8BEN or Form W-8ECI and any other form or certification upon which transferor Lender and Borrower may rely to establish an exemption from
U.S. withholding tax on all interest payments hereunder, and (ii) to agree (for the benefit of Lender and Borrower) to provide the transferor Lender and Borrower a new Form W-8BEN or Form W-8ECI and any other form or certification reasonably
requested in order to establish an exemption from U.S. withholding tax upon the expiration or obsolescence of any previously delivered form or certification and comparable statements in accordance with applicable U.S. laws and regulations and
Modifications duly executed and completed by such transferee, and to comply from time to time with all applicable U.S. laws and regulations with regard to such withholding tax exemption. 
  
 (d) The Lender shall maintain for the benefit of the Borrower at one of the Lender’s offices in New York, New York, a
copy of each document evidencing an Assignment, and a register for the recordation of the name and address and the pro rate share of the Loan held 

  

 -82- 

 
by, each Lender (the “Register”). The entries in the Register shall be conclusive, and the Borrower and the Lender may treat each Person
whose name is recorded in the Register pursuant to the terms hereof as a Lender under this Agreement to which it is a party for all purposes of this Agreement. The Register shall be available for inspection by the Borrower and any of the Lenders at
any reasonable time and from time to time upon reasonable prior notice. Upon acceptance by the Lender of a properly completed and executed document evidencing the Assignment in respect of any interest under this Agreement which has at any time been
recorded in the Register (a “Registered Interest”), the Lender shall record the name, address and pro rate share of the Loan held by the transferee in the Register. The parties hereto agree that no sale, transfer or assignment of
any Registered Interest shall be effective unless and until it has been recorded in the Register. 
  
 Section 11.28 Estoppel Certificates. 
  
 Borrower and Lender each hereby agree at any time and from time to time, upon not less than 10 days’ prior written notice by Borrower or Lender, as
applicable, to execute, acknowledge and deliver to the party specified in such notice a statement, in writing, specifying the unpaid principal balance of the Note and certifying that each of the Loan Documents is in full force and effect and has not
been Modified (or if there have been Modifications, that the same, as Modified, is in full force and effect and stating the Modifications hereto), and stating whether or not, to the knowledge of such certifying party, any Event of Default has
occurred and is then continuing, and, if so, specifying each such Event of Default, and, in the case of Borrower, whether or not, to Borrower’s Knowledge, there exist any offset rights, counterclaims or defenses to payment. Any prospective
purchaser of any interest in a Loan or any direct or indirect interests in Borrower, as permitted hereunder, shall be permitted to rely on such certificates upon consummation of such purchase. 
  
 Section 11.29 Counterparts. 
  
 This Agreement may be executed in any number of counterparts, each of which
when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument. 
  
 Section 11.30 Conrail Payment Agreement. 
  
 Lender hereby agrees that it shall not require that Borrower, or any other Loan Party, obtain any form of estoppel certificate from Conrail (as such term
is defined in the term “Conrail Payment Agreement”) with respect to the Conrail Payment Agreement or an express subordination agreement, or acknowledgment of subordination, from Conrail with respect to the obligations owed by
Borrower to Conrail under the Conrail Payment Agreement, which obligations Borrower and Lender hereby agree are at all times subordinate to the obligations of Borrower and the other Loan Parties under the Loan Documents, the Junior A Loan Documents
and the Junior B Loan Documents. 
  
 Section 11.31
Confidentiality. 
  
 Lender agrees to take normal and
reasonable precautions and exercise due care to maintain the confidentiality of all information provided to it by any of the Loan Parties in 

  

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connection with this Agreement or any other Loan Document, and neither it nor any of its affiliates shall use any such information for any purpose or in any
manner other than pursuant to the terms contemplated by this Agreement, except to the extent such information: (1) was or becomes generally available to the public other than as a result of a disclosure by Lender, or (2) was or becomes available
from a source other than the Loan Parties not known to the Lender to be in breach of an obligation of confidentiality to the Loan Parties in the disclosure of such information. Nothing contained herein shall restrict Lender from disclosing such
information (i) at the request or pursuant to any requirement of any Governmental Authority; (ii) pursuant to subpoena or other court process; (iii) when required to do so in accordance with the provisions of any applicable Legal Requirements; (iv)
to the extent reasonably required in connection with any litigation or proceeding to which Lender or its respective affiliates may be party; (v) to the extent reasonably required in connection with the exercise of any remedy hereunder or under any
other Loan Document; (vi) to Lender’s independent auditors and other professional advisors; and (vii) to any participant or assignee of the Loan and to any prospective participant or assignee of the Loan. 
  
 [NO FURTHER TEXT ON THIS PAGE] 
  

 -84- 

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

																	
	LENDER:
	
	 DB REALTY MEZZANINE INVESTMENT FUND II, L.L.C.,
 a Delaware limited liability company

		
	By:	 	 Greenwood Properties Corp., Its Manager

			
	 	 	 By:
	 	 /s/     CRAIG
HENRICH        

	 	 	 Name:
	 	CRAIG HENRICH
	 	 	 Title:
	 	VICE PRESIDENT
	
	BORROWER:
	
	 PHILADELPHIA PLAZA-PHASE II, LP,
 a
Pennsylvania limited partnership

		
	By:	 	TSC Genpar, LLC, a Delaware limited liability company, Its General Partner
			
	 	 	 By:
	 	TCS SPE 1, L.P., a Delaware limited partnership, Its Sole Member
				
	 	 	 	 	 By:
	 	TCS Mezzanine GP, LLC, a Delaware limited liability company, Its General Partner
					
	 	 	 	 	 	 	 By:
	 	Maguire Thomas Partners-Commerce Square II, Ltd., a California limited partnership, Its Managing Member
						
	 	 	 	 	 	 	 	 	 By:
	 	Thomas Development Partners-Phase II, Inc., a California corporation, Its General Partner
							
	 	 	 	 	 	 	 	 	 	 	 By:
	 	 /s/    JAMES A.
THOMAS        

	 	 	 	 	 	 	 	 	 	 	Name:	 	James A. Thomas
	 	 	 	 	 	 	 	 	 	 	Title:	 	President

  
 [Signatures
Continued on Next Page] 
  

 S-1 
 Signature Page to Senior Mezzanine Loan Agreement 

																	
	SENIOR MEZZANINE GUARANTOR:

	
	TCS SPE l, L.P., a Delaware limited partnership
		
	By:	 	TCS Mezzanine GP, LLC, a Delaware limited liability company, Its General Partner
			
	 	 	 By:
	 	Maguire Thomas Partners-Commerce Square II, Ltd., a California limited partnership, Its Managing Member
				
	 	 	 	 	 By:
	 	Thomas Development Partners-Phase II, Inc., a California corporation, Its General Partner
					
	 	 	 	 	 	 	 By:
	 	/s/    JAMES A.
THOMAS        
	 	 	 	 	 	 	 Name:
	 	James A. Thomas
	 	 	 	 	 	 	 Title:
	 	President

  

 S-2 
 Signature Page to Senior Mezzanine Loan Agreement

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