Document:

Exhibit

Exhibit 10.6

GUARANTY AGREEMENT
THIS GUARANTY AGREEMENT (together with all extensions, renewals, modifications, substitutions and amendments hereof, this “Guaranty”) is executed as of October 27, 2017, by GLOBAL NET LEASE OPERATING PARTNERSHIP, L.P., a Delaware limited partnership, having an address at 405 Park Avenue, New York, New York 10022 (together with its permitted successors and assigns, “Guarantor”), for the benefit of COLUMN FINANCIAL, INC., a Delaware corporation, having an address at 11 Madison Avenue, New York, New York 10010 (“Column”) and CITI REAL ESTATE FUNDING INC., a New York corporation, having an address at 390 Greenwich Street, 7th Floor, New York, New York 10013  (“Citi”, and together with Column and their respective successors and permitted assigns, “Lender”). Capitalized terms utilized herein shall have the meaning as specified in the Loan Agreement (hereinafter defined), unless such term is otherwise specifically defined herein.
W I T N E S S E T H :
WHEREAS, pursuant to the Note, the entities listed on Schedule I attached hereto (collectively, “Borrower”) have become indebted, and may from time to time be further indebted, to Lender with respect to a loan in the original principal amount of ONE HUNDRED EIGHTY-SEVEN MILLION AND NO/100 DOLLARS ($187,000,000.00) (the “Loan”) made pursuant to that certain Loan Agreement dated as of the date hereof between Borrower and Lender (as the same may be amended, restated, replaced, supplemented, or otherwise modified from time to time, the “Loan Agreement”), which Loan is secured by, among other things, the Security Instruments encumbering each Individual Property, and is further evidenced, secured or governed by other instruments and documents executed in connection with the Loan (together with the Note, the Loan Agreement and the Security Instruments, collectively, the “Loan Documents”);
WHEREAS, Lender is not willing to make the Loan, or otherwise extend credit, to Borrower unless Guarantor delivers this Guaranty for the benefit of Lender and unconditionally guarantees payment and performance to Lender of the Guaranteed Obligations (as hereinafter defined); and
WHEREAS, Guarantor is the owner of a direct or indirect interest in Borrower, and Guarantor will directly benefit from Lender’s making the Loan to Borrower.
NOW, THEREFORE, as an inducement to Lender to make the Loan to Borrower, and for other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the parties do hereby agree as follows:
ARTICLE I 
 
NATURE AND SCOPE OF GUARANTY
1.1    Guaranty of Obligation.  Guarantor hereby irrevocably and unconditionally guarantees to Lender and its successors and permitted assigns the payment and performance of the Guaranteed Obligations as and when the same shall be due and payable, whether by lapse of time, 

by acceleration of maturity or otherwise.  Guarantor hereby irrevocably and unconditionally covenants and agrees that it is liable for the Guaranteed Obligations as a primary obligor.
1.2    Definition of Guaranteed Obligations. As used herein, the term “Guaranteed Obligations” means the prompt and full payment when due, whether at stated maturity, by acceleration or otherwise, and performance of all obligations and liabilities of Borrower pursuant to Section 9.4 of the Loan Agreement.  Guarantor’s liability under this Guaranty is effective regardless of whether Borrower has any personal liability for the Guaranteed Obligations and is not limited to the original or outstanding principal balance of the Loan or the value of the Properties given as security for the Loan. Notwithstanding anything to the contrary in this Guaranty, the Loan Agreement, the Note or any of the Loan Documents, Lender may exercise its rights 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 secured by the Security Instruments or to require that all Properties shall continue to secure all of the Debt owing to Lender in accordance with the Loan Documents.
1.3    Nature of Guaranty.  Guarantor hereby acknowledges and agrees that this Guaranty (a) is an irrevocable, absolute, continuing guaranty of payment and performance and not a guaranty of collection, (b) shall not be reduced, released, discharged, satisfied or otherwise impacted in connection with (i) any act or occurrence that might, but for the provisions hereof, be deemed a legal or equitable reduction, satisfaction, discharge or release and/or (ii) Lender’s enforcement of remedies under the Loan Documents and (c) shall survive the foregoing and shall not merge with any resulting foreclosure deed, deed in lieu or similar instrument (if any) subject to Section 5.2 hereof. Guarantor acknowledges that there are no conditions precedent to the effectiveness of this Guaranty, and that this Guaranty is in full force and effect and is binding on Guarantor as of the Closing Date, regardless of whether Lender obtains collateral or any guaranties from others or takes any other action contemplated by this Guaranty. This Guaranty may not be revoked by Guarantor and shall continue to be effective with respect to any Guaranteed Obligations arising or created after any attempted revocation by Guarantor and after (if Guarantor is a natural person) Guarantor’s death (in which event this Guaranty shall be binding upon Guarantor’s estate and Guarantor’s legal representatives and heirs).  The fact that at any time or from time to time the Guaranteed Obligations may be increased or reduced shall not release or discharge the obligation of Guarantor to Lender with respect to the Guaranteed Obligations.  This Guaranty may be enforced by Lender and any subsequent holder of the Note and shall not be discharged by the assignment or negotiation of all or part of the Note. 
1.4    Guaranteed Obligations Not Reduced by Offset.  The Guaranteed Obligations and the liabilities and obligations of Guarantor to Lender hereunder, shall not be reduced, discharged or released because or by reason of any existing or future offset, claim or defense of Borrower, or any other party (other than the defense of payment), against Lender or against payment of the Guaranteed Obligations, whether such offset, claim or defense arises in connection with the Guaranteed Obligations (or the transactions creating the Guaranteed Obligations) or otherwise.
1.5    Payment By Guarantor.  If all or any part of the Guaranteed Obligations shall not be punctually paid when due (and such failure continues beyond the expiration of any applicable notice and cure period under the Loan Documents), whether at demand, maturity, 

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acceleration or otherwise, Guarantor shall, immediately upon demand by Lender, and without presentment, protest, notice of protest, notice of non-payment, notice of intention to accelerate the maturity, notice of acceleration of the maturity, or any other notice whatsoever, pay in lawful money of the United States of America, the amount due on the Guaranteed Obligations to Lender at Lender’s address as set forth herein.  Such demand(s) may be made at any time coincident with or after the time for payment of all or part of the Guaranteed Obligations, and may be made from time to time with respect to the same or different items of Guaranteed Obligations.  Such demand shall be deemed made, given and received in accordance with the notice provisions hereof.
1.6    No Duty To Pursue Others.  It shall not be necessary for Lender (and Guarantor hereby waives any rights which Guarantor may have to require Lender), in order to enforce the obligations of Guarantor hereunder, first to (a) institute suit or exhaust its remedies against Borrower or others liable on the Loan or the Guaranteed Obligations or any other person, (b) enforce Lender’s rights against any collateral which shall ever have been given to secure the Loan, (c) enforce Lender’s rights against any other guarantors of the Guaranteed Obligations, (d) join Borrower or any others liable on the Guaranteed Obligations in any action seeking to enforce this Guaranty, (e) exhaust any remedies available to Lender against any collateral which shall ever have been given to secure the Loan, or (f) resort to any other means of obtaining payment of the Guaranteed Obligations. Lender shall not be required to mitigate damages or take any other action to reduce, collect or enforce the Guaranteed Obligations.
1.7    Waivers.  Guarantor agrees to the provisions of the Loan Documents, and hereby waives notice of: (a) any loans or advances made by Lender to Borrower, (b) acceptance of this Guaranty, (c) any amendment or extension of the Note, the Loan Agreement or of any other Loan Documents, (d) the execution and delivery by Borrower and Lender of any other loan or credit agreement or of Borrower’s execution and delivery of any promissory notes or other documents arising under the Loan Documents or in connection with the Properties, (e) the occurrence of any breach by Borrower under the Loan Documents or an Event of Default, (f) Lender’s transfer or disposition of the Guaranteed Obligations, or any part thereof, (g) the sale or foreclosure (or posting or advertising for sale or foreclosure) of any collateral for the Guaranteed Obligations, (h) protest, proof of non-payment or default by Borrower, and (i) any other action at any time taken or omitted by Lender, and, generally, all demands and notices of every kind in connection with this Guaranty, the Loan Documents, any documents or agreements evidencing, securing or relating to any of the Guaranteed Obligations.
1.8    Payment of Expenses.  In the event that Guarantor shall breach any provisions of this Guaranty or fail to timely perform any of its obligations hereunder, Guarantor shall, immediately upon demand by Lender, pay Lender all costs and expenses (including court costs and reasonable attorneys’ fees) incurred by Lender in the enforcement hereof or the preservation of Lender’s rights hereunder.  The covenant contained in this Section 1.8 shall survive the payment and performance of the Guaranteed Obligations.
1.9    Effect of Bankruptcy. In the event that, pursuant to any insolvency, bankruptcy, reorganization, receivership or other debtor relief law, or any judgment, order or decision thereunder, Lender must rescind or restore any payment, or any part thereof, received by Lender in 

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satisfaction of the Guaranteed Obligations, as set forth herein, any prior release or discharge from the terms of this Guaranty given to Guarantor by Lender shall be without effect, and this Guaranty shall remain in full force and effect with respect to such rescinded or restored payment. It is the intention of Borrower and Guarantor that Guarantor’s obligations hereunder shall not be discharged except by Guarantor’s performance of such obligations and then only to the extent of such performance.
1.10    Waiver of Subrogation, Reimbursement and Contribution. Notwithstanding anything to the contrary contained in this Guaranty, Guarantor hereby unconditionally and irrevocably waives, releases and abrogates any and all rights it may now or hereafter have under any agreement, at law or in equity (including, without limitation, any law subrogating the Guarantor to the rights of Lender), to assert any claim against or seek contribution, indemnification or any other form of reimbursement from Borrower or any other party liable for payment of any or all of the Guaranteed Obligations for any payment made by Guarantor under or in connection with this Guaranty or otherwise while the Debt is outstanding.
1.11    Borrower. The term “Borrower” as used herein shall include any new or successor corporation, association, partnership (general or limited), limited liability company, joint venture, trust or other individual or organization formed as a result of any merger, reorganization, sale, transfer, devise, gift or bequest of Borrower or any interest in Borrower.
1.12    Financial Covenants of Guarantor.
(a)    Guarantor (i) shall keep and maintain complete and accurate books and records and (ii) as necessary to confirm compliance with the financial covenants of Guarantor set forth in this Section 1.12, shall permit Lender and any authorized representatives of Lender to have reasonable access to and to inspect and examine the books and records, any and all accounts, data and other documents of Guarantor, at all reasonable times, during normal business hours.
(b)    Guarantor hereby represents and warrants that, as of the date hereof, Guarantor is in compliance with the Guarantor Financial Covenants (as hereinafter defined).  At all times while the Debt remains unsatisfied, Guarantor shall comply with the Guarantor Financial Covenants.  
(c)    During the term hereunder, so long as substantially all of the business of Global Net Lease, Inc. (“REIT”) is conducted through Guarantor and substantially all of REIT’s assets and liabilities are held by Guarantor, Guarantor shall deliver to Lender (i) within one hundred five (105) days after the end of each Fiscal Year of Global Net Lease, Inc. (“REIT”) (A) an Officer’s Certificate certifying as to the compliance of Guarantor with the Guarantor Financial Covenants and (B) financial statements of REIT audited by an independent certified public accountant, in the form provided to Lender in connection with the closing of the Loan or otherwise in form reasonably approved by Lender, together with an Officer’s Certificate certifying that such annual financial statement presents fairly the financial condition and the results of operations of REIT and that such financial statements have been prepared in accordance with GAAP; and (ii) within sixty (60) days after the end of each calendar quarter, (A) an Officer’s Certificate certifying as to the compliance of Guarantor with the Guarantor Financial Covenants and (B) unaudited financial statements of 

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REIT, in the form provided to Lender in connection with the closing of the Loan or otherwise as reasonably approved by Lender, together with an Officer’s Certificate certifying that such financial statement presents fairly the financial condition and the results of operations of REIT and that such financial statements have been prepared in accordance with GAAP. If substantially all of REIT’s business is no longer conducted through Guarantor or substantially all of REIT’s assets and liabilities are not held by Guarantor, Guarantor shall furnish audited annual financial statements and unaudited quarterly financial statements of Guarantor in lieu of the financial statements of REIT in accordance with the preceding sentence.  In addition, Guarantor shall provide (a) to the extent available (but without obligation to prepare them), any annual financial statements or quarterly financial statements of Guarantor within the time periods set forth above, together with an Officer’s Certificate certifying that such financial statements present fairly the financial condition and the results of operations of Guarantor, (b) any other information reasonably requested by Lender from time to time which Lender believes is material and relevant in reviewing Guarantor’s compliance with the Guarantor Financial Covenants (with Lender acknowledging and agreeing that Guarantor may respond to any such request for additional financial statements of Guarantor by providing consolidated financial statements of REIT).
(d)    Until all of the Obligations and the Guaranteed Obligations have been paid in full, (A) Guarantor shall at all times maintain a Net Worth equal to or in excess of $200,000,000.00 (excluding its interest in the Properties) and (B) Guarantor shall at all times maintain Liquid Assets having a market value of at least $5,000,000.00 (collectively, “Guarantor Financial Covenants”). 
(e)    Definitions.  As used in this Section 1.12, the following terms shall have the following definitions:
(i)    The term “Net Worth” as used in this Guaranty shall mean as of a given date total equity less liabilities, pursuant to the consolidated balance sheet of Guarantor and its consolidated subsidiaries, determined pursuant GAAP, as adjusted to exclude Guarantor’s equity interest in the Properties, straight-line rent receivables or payables, derivative values and any other non-real estate related intangible assets or liabilities of Guarantor.
(ii)    As used herein, “Liquid Assets” shall mean all unrestricted or unencumbered (A) cash and (B) any of the following: (i) marketable direct obligations issued or unconditionally guaranteed by the United States Government or issued by an agency thereof and backed by the full faith and credit of the United States; (ii) marketable direct obligations issued by any state or territory of the United States of America or any political subdivision of any such state or territory or any public instrumentality thereof which, at the time of acquisition, has a long term unsecured debt rating of not less than “BBB” by S&P, “BBB” by Fitch and “Baa3” by Moody’s, and is not listed for possible down-grade in any publication of any of the foregoing rating services; (iii) domestic certificates of deposit or domestic time deposits or repurchase agreements issued by any commercial bank organized under the laws of the United States of America or any state thereof or the District of Columbia having a long term unsecured debt rating of not less than “BBB” by S&P, “BBB” by Fitch and “Baa3” by Moody’s, and not listed for possible down-grade in any publication of any 

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of the foregoing rating services; (iv) money market funds having assets under management in excess of $2,000,000,000.00; (v) any stock, shares, certificates, bonds, debentures, notes or other instrument which constitutes a “security” under the Securities Act (other than Guarantor, Borrower and/or any of their affiliates) which are freely tradable on any nationally recognized securities exchange or otherwise readily marketable and liquid; and/or (vi) obligations of the following United States government sponsored agencies: Federal Home Loan Mortgage Corp. (debt obligations), the Farm Credit System (consolidated systemwide bonds and notes), the Federal Home Loan Banks (consolidated debt obligations), the Federal National Mortgage Association (debt obligations), and the Resolution Funding Corp. (debt obligations); provided, however, that the investments described in this clause (vi) (1) must have a predetermined fixed dollar of principal due at maturity that cannot vary or change, (2) if rated by S&P, must not have an any qualifier affixed to their rating, (3) if such investments have a variable rate of interest, such interest rate must be tied to a single interest rate index plus a fixed spread (if any) and must move proportionately with that index, (4) must not be subject to liquidation prior to their maturity and (5) must have maturities of not more than 365 days.
(f)    In the event that Guarantor fails to maintain the Guarantor Financial Covenants, such failure shall be an Event of Default hereunder unless one or more replacement Guarantor(s) is added in accordance with this clause (f).  Borrower shall be permitted to replace the existing Guarantor at any time, and, to the extent applicable, no “Event of Default” shall be deemed to have occurred hereunder and any Guarantor being replaced shall be released from its obligations hereunder with respect to liabilities relating to events, conditions or omissions first arising from and after the date such Replacement Guarantor executes and delivers to Lender a Replacement Guaranty, provided that (i) no other Event of Default hereunder or under any of the other Loan Documents has occurred and is then continuing; and (ii) each of the following terms and conditions are satisfied within thirty (30) days of Guarantor’s failure to maintain the Financial Covenants: (A) Borrower delivers to Lender written notice of its intent to add one or more replacement guarantor(s), (B) each replacement guarantor identified by Borrower is a Satisfactory Replacement Guarantor (as defined below), (C) after Lender’s approval of the proposed replacement guarantor(s) as a Satisfactory Replacement Guarantor, (I) such Satisfactory Replacement Guarantor executes and delivers a replacement guaranty in substantially the same form as this Guaranty (a “Replacement Guaranty”) pursuant to which the Replacement Guarantor will guaranty all Guaranteed Obligations arising from and after the Closing Date, and (II) Borrower affirms its obligations under the Loan Documents on a form reasonably acceptable to Lender, (D) prior to or concurrently with the delivery of such duly executed replacement guaranty, Lender receives legal opinions reasonably required by Lender in form and substance consistent with the legal opinions delivered to Lender on the Closing Date, and (E) Borrower shall pay Lender’s reasonable costs and expenses, including reasonable attorneys’ fees, in connection with any such Satisfactory Replacement Guarantor.  As used herein, the term “Satisfactory Replacement Guarantor” shall mean a Person that (1) collectively with any other Satisfactory Replacement Guarantors, satisfies the Guarantor Financial Covenants, (2) has not been the subject of a Bankruptcy Action, (3) satisfies Lender’s then current “know your customer” standards, (4) is not an Embargoed Person, (5) complies with all Prescribed Laws and has not been subject to a governmental or regulatory investigation which resulted in a final, non‐appealable conviction for criminal activity involving fraud or any 

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other form of moral turpitude as confirmed through customary searches demonstrating compliance with Prescribed Laws, and (6) is otherwise reasonably acceptable to Lender.  In the event that any Satisfactory Replacement Guarantor becomes a guarantor pursuant to the terms of this clause (f), the term “Guarantor” as used in the Loan Documents shall include such Satisfactory Replacement Guarantor (as of the date of delivery of such replacement guaranty).  
ARTICLE II     
 
EVENTS AND CIRCUMSTANCES NOT REDUCING 
OR DISCHARGING GUARANTOR’S OBLIGATIONS
Guarantor hereby consents and agrees to each of the following, and agrees that Guarantor’s obligations under this Guaranty shall not be released, diminished, impaired, reduced or adversely affected by any of the following, and waives to the extent permitted under applicable law, any common law, equitable, statutory or other rights (including without limitation rights to notice) which Guarantor might otherwise have as a result of or in connection with any of the following:
2.1    Modifications. Any renewal, extension, increase, modification, alteration or rearrangement of all or any part of the Guaranteed Obligations, the Note, the Loan Agreement, the other Loan Documents, or any other document, instrument, contract or understanding between Borrower and Lender, or any other parties, pertaining to the Guaranteed Obligations or any failure of Lender to notify Guarantor of any such action.
2.2    Adjustment.  Any adjustment, indulgence, forbearance or compromise that might be granted or given by Lender to Borrower or Guarantor.
2.3    Condition of Borrower or Guarantor.  The insolvency, bankruptcy, arrangement, adjustment, composition, liquidation, disability, dissolution or lack of power of Borrower, Guarantor or any other party at any time liable for the payment of all or part of the Guaranteed Obligations; or any dissolution of Borrower or Guarantor, or any sale, lease or transfer of any or all of the assets of Borrower or Guarantor, or any changes in the shareholders, partners or members of Borrower or Guarantor; or any reorganization of Borrower or Guarantor.
2.4    Invalidity of Guaranteed Obligations.  The invalidity, illegality or unenforceability of all or any part of the Guaranteed Obligations, or any document or agreement executed in connection with the Guaranteed Obligations, for any reason whatsoever, including without limitation the fact that (a) the Guaranteed Obligations, or any part thereof, exceeds the amount permitted by law, (b) the act of creating the Guaranteed Obligations or any part thereof is ultra vires, (c) the officers or representatives executing the Note, the Loan Agreement or the other Loan Documents or otherwise creating the Guaranteed Obligations acted in excess of their authority, (d) the Guaranteed Obligations violate applicable usury laws, (e) the Borrower has valid defenses, claims or offsets (whether at law, in equity or by agreement) which render the Guaranteed Obligations wholly or partially uncollectible from Borrower, (f) the creation, performance or repayment of the Guaranteed Obligations (or the execution, delivery and performance of any document or instrument 

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representing part of the Guaranteed Obligations or executed in connection with the Guaranteed Obligations, or given to secure the repayment of the Guaranteed Obligations) is illegal, uncollectible or unenforceable, or (g) the Note, the Loan Agreement or any of the other Loan Documents have been forged or otherwise are irregular or not genuine or authentic, it being agreed that Guarantor shall remain liable hereon regardless of whether Borrower or any other Person be found not liable on the Guaranteed Obligations or any part thereof for any reason (other than due to the defense of payment of the Debt).
2.5    Release of Obligors.  Any full or partial release of the liability of Borrower on the Guaranteed Obligations, or any part thereof, or of any co-guarantors, or any other person or entity now or hereafter liable, whether directly or indirectly, jointly, severally, or jointly and severally, to pay, perform, guarantee or assure the payment of the Guaranteed Obligations, or any part thereof, it being recognized, acknowledged and agreed by Guarantor that Guarantor may be required to pay the Guaranteed Obligations in full without assistance or support of any other party, and Guarantor has not been induced to enter into this Guaranty on the basis of a contemplation, belief, understanding or agreement that other Persons will be liable to pay or perform the Guaranteed Obligations, or that Lender will look to other Persons to pay or perform the Guaranteed Obligations.
2.6    Other Collateral.  The taking or accepting of any other security, collateral or guaranty, or other assurance of payment, for all or any part of the Guaranteed Obligations.
2.7    Release of Collateral. Any release, surrender, exchange, subordination, deterioration, waste, loss or impairment (including without limitation negligent, willful, unreasonable or unjustifiable impairment) of any collateral, property or security at any time existing in connection with, or assuring or securing payment of, all or any part of the Guaranteed Obligations.
2.8    Care and Diligence. The failure of Lender or any other party to exercise diligence or reasonable care in the preservation, protection, enforcement, sale or other handling or treatment of all or any part of any collateral, property or security, including but not limited to any neglect, delay, omission, failure or refusal of Lender (a) to take or prosecute any action for the collection of any of the Guaranteed Obligations or (b) to foreclose, or initiate any action to foreclose, or, once commenced, prosecute to completion any action to foreclose upon any security therefor, or (c) to take or prosecute any action in connection with any instrument or agreement evidencing or securing all or any part of the Guaranteed Obligations.
2.9    Unenforceability. The fact that any collateral, security, security interest or lien contemplated or intended to be given, created or granted as security for the repayment of the Guaranteed Obligations, or any part thereof, shall not be properly perfected or created, or shall prove to be unenforceable or subordinate to any other security interest or lien, it being recognized and agreed by Guarantor that Guarantor is not entering into this Guaranty in reliance on, or in contemplation of the benefits of, the validity, enforceability, collectibility or value of any of the collateral for the Guaranteed Obligations.
2.10    Offset.  The Note, the Loan Agreement, the Guaranteed Obligations and the liabilities and obligations of Guarantor to Lender hereunder shall not be reduced, discharged or released because of or by reason of any existing or future right of offset, claim or defense of Borrower 

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or Guarantor against Lender, or any other Person, or against payment of the Guaranteed Obligations, whether such right of offset, claim or defense (other than the defense of payment) arises in connection with the Guaranteed Obligations (or the transactions creating the Guaranteed Obligations) or otherwise.
2.11    Merger. The reorganization, merger or consolidation of Borrower into or with any other corporation or entity.
2.12    Preference. Any payment by Borrower to Lender is held to constitute a preference under bankruptcy laws, or for any reason Lender is required to refund such payment or pay such amount to Borrower or someone else.
2.13    Other Actions Taken or Omitted. Any other action taken or omitted to be taken with respect to the Loan Documents, the Guaranteed Obligations, or the security and collateral therefor, whether or not such action or omission prejudices Guarantor or increases the likelihood that Guarantor will be required to pay the Guaranteed Obligations pursuant to the terms hereof, it is the unambiguous and unequivocal intention of Guarantor that Guarantor shall be obligated to pay the Guaranteed Obligations when due, notwithstanding any occurrence, circumstance, event, action, or omission whatsoever, whether contemplated or uncontemplated, and whether or not otherwise or particularly described herein, which obligation shall be deemed satisfied only upon the full and final payment and satisfaction of the Guaranteed Obligations.
ARTICLE III     
 
REPRESENTATIONS AND WARRANTIES
To induce Lender to enter into the Loan Documents and extend credit to Borrower, Guarantor represents and warrants to Lender as follows:
3.1    Benefit.  Guarantor is an Affiliate of Borrower, is the owner of a direct or indirect interest in Borrower, and has received, or will receive, direct or indirect benefit from the making of this Guaranty with respect to the Guaranteed Obligations.
3.2    Familiarity and Reliance.  Guarantor is familiar with, and has independently reviewed books and records regarding, the financial condition of Borrower and is familiar with the value of any and all collateral intended to be created as security for the payment of the Note or Guaranteed Obligations; however, Guarantor is not relying on such financial condition or the collateral as an inducement to enter into this Guaranty.
3.3    No Representation By Lender.  Neither Lender nor any other party has made any representation, warranty or statement to Guarantor in order to induce the Guarantor to execute this Guaranty.
3.4    Guarantor’s Financial Condition.  As of the date hereof, and after giving effect to this Guaranty and the contingent obligation evidenced hereby, Guarantor is, and intends to be, solvent, and has and intends to have assets which, fairly valued, exceed its obligations, 

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liabilities (including contingent liabilities) and debts, and has and intends to have property and assets sufficient to satisfy and repay its obligations and liabilities.
3.5    Legality.  The execution, delivery and performance by Guarantor of this Guaranty and the consummation of the transactions contemplated hereunder do not, and will not, contravene or conflict with any law, statute or regulation whatsoever to which Guarantor is subject or constitute a default (or an event which with notice or lapse of time or both would constitute a default) under, or result in the breach of, any indenture, mortgage, deed of trust, charge, lien, or any contract, agreement or other instrument to which Guarantor is a party or which may be applicable to Guarantor.  This Guaranty is a legal and binding obligation of Guarantor and is enforceable in accordance with its terms, except as limited by bankruptcy, insolvency or other laws of general application relating to the enforcement of creditors’ rights.
3.6    Litigation.  Except as identified on Schedule VI to the Loan Agreement, there are no actions, suits or proceedings at law or in equity by or before any Governmental Authority or other agency now pending or threatened against or affecting Guarantor which could have a Material Adverse Effect.
3.7    Survival. All representations and warranties made by Guarantor herein shall survive the execution hereof.
ARTICLE IV     
 
SUBORDINATION OF CERTAIN INDEBTEDNESS
4.1    Subordination of All Guarantor Claims. As used herein, the term “Guarantor Claims” shall mean all debts and liabilities of Borrower to Guarantor, whether such debts and liabilities now exist or are hereafter incurred or arise, or whether the obligations of Borrower thereon be direct, contingent, primary, secondary, several, joint and several, or otherwise, and irrespective of whether such debts or liabilities be evidenced by note, contract, open account, or otherwise, and irrespective of the Person in whose favor such debts or liabilities may, at their inception, have been, or may hereafter be created, or the manner in which they have been or may hereafter be acquired by Guarantor.  The Guarantor Claims shall include without limitation all rights and claims of Guarantor against Borrower (arising as a result of subrogation or otherwise) as a result of Guarantor’s payment of all or a portion of the Guaranteed Obligations.  Upon the occurrence and continuation of an Event of Default, Guarantor shall not receive or collect, directly or indirectly, from Borrower or any other party any amount upon the Guarantor Claims.
4.2    Claims in Bankruptcy.  In the event of receivership, bankruptcy, reorganization, arrangement, debtor’s relief, or other insolvency proceedings involving Guarantor as debtor, Lender shall have the right to prove its claim in any such proceeding so as to establish its rights hereunder and receive directly from the receiver, trustee or other court custodian dividends and payments which would otherwise be payable upon Guarantor Claims.  Guarantor hereby assigns such dividends and payments to Lender.  Should Lender receive, for application upon the Guaranteed Obligations, any such dividend or payment which is otherwise payable to Guarantor, and which, 

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as between Borrower and Guarantor, shall constitute a credit upon the Guarantor Claims, then upon payment to Lender in full of the Guaranteed Obligations, Guarantor shall become subrogated to the rights of Lender to the extent that such payments to Lender on the Guarantor Claims have contributed toward the liquidation of the Guaranteed Obligations, and such subrogation shall be with respect to that proportion of the Guaranteed Obligations which would have been unpaid if Lender had not received dividends or payments upon the Guarantor Claims.
4.3    Payments Held in Trust.  In the event that, notwithstanding anything to the contrary in this Guaranty, Guarantor should receive any funds, payments, claims or distributions which are prohibited by this Guaranty, Guarantor agrees to hold in trust for Lender an amount equal to the amount of all funds, payments, claims or distributions so received, and agrees that it shall have absolutely no dominion over the amount of such funds, payments, claims or distributions so received except to pay them promptly to Lender, and Guarantor covenants promptly to pay the same to Lender.
4.4    Liens Subordinate.  Guarantor agrees that any liens, security interests, judgment liens, charges or other encumbrances upon Borrower’s assets securing payment of the Guarantor Claims shall be and remain inferior and subordinate to any liens, security interests, judgment liens, charges or other encumbrances upon Borrower’s assets securing payment of the Guaranteed Obligations, regardless of whether such encumbrances in favor of Guarantor or Lender presently exist or are hereafter created or attach.  Without the prior written consent of Lender, until the Debt is paid in full, Guarantor shall not (a) exercise or enforce any creditor’s right it may have against Borrower (b) create any Liens encumbering the Properties, Borrower or any interest in either of the foregoing, other than Permitted Encumbrances, or (c) foreclose, repossess, sequester or otherwise take steps or institute any action or proceedings (judicial or otherwise, including without limitation the commencement of, or joinder in, any liquidation, bankruptcy, rearrangement, debtor’s relief or insolvency proceeding) to enforce any liens, mortgages, deeds of trust, security interests, collateral rights, judgments or other encumbrances on assets of Borrower held by Guarantor.
ARTICLE V     
 
MISCELLANEOUS
5.1    Waiver.  No failure to exercise, and no delay in exercising, on the part of Lender, any right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right.  The rights of Lender hereunder shall be in addition to all other rights provided by law.  No modification or waiver of any provision of this Guaranty, nor any consent to any departure therefrom, shall be effective unless in writing and no such consent or waiver shall extend beyond the particular case and purpose involved.  No notice or demand given in any case shall constitute a waiver of the right to take other action in the same, similar or other instances without such notice or demand.
5.2    Termination  The Guaranteed Obligations under this Guaranty (exclusive of any other obligations of Guarantor under any other guaranty, indemnity or similar agreement relating to the Loan, and any obligations related to then ongoing and pending claims made under 

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this Guaranty) shall terminate upon the indefeasible repayment in full of the Debt and the expiration of all applicable preference periods under the Bankruptcy Code.
5.3    Notices. All notices or other written communications hereunder shall be made in accordance with Section 10.6 of the Loan Agreement.  Notices to Guarantor shall be made to:
Guarantor:
c/o Global Net Lease, Inc. 
405 Park Avenue 
New York, New York 10022 
Attention:  Legal Department    
with a copy to:    
Arnold & Porter Kaye Scholer LLP 
250 W 55th Street 
New York, NY  10019 
Attention:  John Busillo, Esq.
5.4    Governing Law.  
(a)    This Guaranty shall be governed in accordance with the State of New York and the applicable law of the United States of America.
(b)  ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR GUARANTOR ARISING OUT OF OR RELATING TO THIS GUARANTY MAY AT LENDER’S OPTION BE INSTITUTED IN ANY FEDERAL OR 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 OF GUARANTOR AND LENDER, BY ITS ACCEPTANCE HEREOF, 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 OF GUARANTOR AND LENDER, BY ITS ACCEPTANCE HEREOF, HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUIT, ACTION OR PROCEEDING.  GUARANTOR DOES HEREBY DESIGNATE AND APPOINT:
CORPORATION SERVICE COMPANY (CSC) 
80 State Street 
Albany, New York 12207-2543
AS ITS RESPECTIVE 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 

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AT SAID ADDRESS AND WRITTEN NOTICE OF SAID SERVICE MAILED OR DELIVERED TO GUARANTOR IN THE MANNER PROVIDED HEREIN SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON GUARANTOR IN ANY SUCH SUIT, ACTION OR PROCEEDING IN THE STATE OF NEW YORK.  GUARANTOR (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 SUBSTITUTE AGENT AND OFFICE SHALL BE DESIGNATED AS THE PERSON AND 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.
5.5    Invalid Provisions.  If any provision of this Guaranty is held to be illegal, invalid, or unenforceable under present or future laws effective during the term of this Guaranty, such provision shall be fully severable and this Guaranty shall be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a part of this Guaranty, and the remaining provisions of this Guaranty shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its severance from this Guaranty, unless such continued effectiveness of this Guaranty, as modified, would be contrary to the basic understandings and intentions of the parties as expressed herein.
5.6    Amendments.  This Guaranty may be amended only by an instrument in writing executed by Lender and Guarantor.
5.7    Parties Bound; Assignment; Joint and Several.  This Guaranty shall be binding upon and inure to the benefit of the parties hereto and their respective successors, assigns and legal representatives; provided, however, that, subject to the terms of the Loan Agreement, Guarantor may not, without the prior written consent of Lender, assign any of its rights, powers, duties or obligations hereunder.  If Guarantor consists of more than one person or party, the obligations and liabilities of each such person or party shall be joint and several.
5.8    Headings.  Section headings are for convenience of reference only and shall in no way affect the interpretation of this Guaranty.
5.9    Recitals.  The recital and introductory paragraphs hereof are a part hereof, form a basis for this Guaranty and shall be considered prima facie evidence of the facts and documents referred to therein.
5.10    Counterparts.  To facilitate execution, this Guaranty may be executed in as many counterparts as may be convenient or required.  It shall not be necessary that the signature of, or on behalf of, each party, or that the signature of all Persons required to bind any party, appear on each counterpart.  All counterparts shall collectively constitute a single instrument.  It shall not be necessary in making proof of this Guaranty to produce or account for more than a single counterpart containing the respective signatures of, or on behalf of, each of the parties hereto. Any signature page to any counterpart may be detached from such counterpart without impairing the 

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legal effect of the signatures thereon and thereafter attached to another counterpart identical thereto except having attached to it additional signature pages.
5.11    Rights and Remedies.  If Guarantor becomes liable for any indebtedness owing by Borrower to Lender, by endorsement or otherwise, other than under this Guaranty, such liability shall not be in any manner impaired or affected hereby and the rights of Lender hereunder shall be cumulative of any and all other rights that Lender may ever have against Guarantor.  The exercise by Lender of any right or remedy hereunder or under any other instrument, or at law or in equity, shall not preclude the concurrent or subsequent exercise of any other right or remedy.
5.12    Special Provision.  Notwithstanding anything herein or in the Loan Documents to the contrary, Guarantor shall have no liability for Guaranteed Obligations or other matters hereunder for (a) any action taken by any Person from and after a Transfer approved by Lender in accordance with the terms of the Loan Documents of the entire Property or a transfer of all of the direct and indirect equity interests of Borrower to a Person that is not an Affiliate of Guarantor; provided that Lender receives a Replacement Guaranty in substantially the same form as this Guaranty or otherwise acceptable to Lender, (b) any action taken by any Person from and after Lender obtains title to the Property, whether by foreclosure, deed-in-lieu of foreclosure or otherwise in connection with any exercise of Lender’s remedies pursuant to the Loan Documents, or any actions taken by any Person (other than Borrower, Guarantor or any other Person that, directly or indirectly, Controls, is Controlled by or is under common Control with Guarantor, except if such action of Borrower, Guarantor or any other such Person is caused or required by a receiver, trustee, liquidator, conservator, Lender or applicable law) on or after the date on which a receiver, trustee, liquidator, or conservator is appointed, at Lender’s request, to take Control of the Property, or (c) any action taken  (i) by any mezzanine lender permitted under Section 9.1.1(b)(i) and/or Section 9.1.3 of the Loan Agreement during any period in which such mezzanine lender exercises Control over Borrower and/or the Property, or (ii) from and after a mezzanine foreclosure or assignment-in-lieu thereof; provided, that in any case, such circumstances, conditions, actions or events are not caused by Guarantor, Borrower, or an Affiliate of any of the foregoing.
5.13    Entirety. THIS GUARANTY EMBODIES THE FINAL AND ENTIRE AGREEMENT OF GUARANTOR AND LENDER WITH RESPECT TO GUARANTOR’S GUARANTY OF THE GUARANTEED OBLIGATIONS AND SUPERSEDES ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS, AND UNDERSTANDINGS, WHETHER WRITTEN OR ORAL, RELATING TO THE SUBJECT MATTER HEREOF.  THIS GUARANTY IS INTENDED BY GUARANTOR AND LENDER AS A FINAL AND COMPLETE EXPRESSION OF THE TERMS OF THE GUARANTY, AND NO COURSE OF DEALING BETWEEN GUARANTOR AND LENDER, NO COURSE OF PERFORMANCE, NO TRADE PRACTICES, AND NO EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OR OTHER EXTRINSIC EVIDENCE OF ANY NATURE SHALL BE USED TO CONTRADICT, VARY, SUPPLEMENT OR MODIFY ANY TERM OF THIS GUARANTY AGREEMENT.  THERE ARE NO ORAL AGREEMENTS BETWEEN GUARANTOR AND LENDER.

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5.1    Waiver of Right To Trial By Jury. EACH OF GUARANTOR AND LENDER (BY ACCEPTANCE OF THIS GUARANTY) 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 THIS GUARANTY, THE NOTE, THE LOAN AGREEMENT, THE SECURITY INSTRUMENTS OR THE OTHER 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 GUARANTOR, AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE.  LENDER IS HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY GUARANTOR.
5.2    Cooperation.  Guarantor shall comply with the obligations set forth in Section 9.1 of the Loan Agreement, subject to and in accordance with the terms of such Section 9.1.
5.3    Reinstatement in Certain Circumstances.  If at any time any payment of the principal of or interest under the Note or any other amount payable by Borrower under the Loan Documents is rescinded or must be otherwise restored or returned upon the insolvency, bankruptcy or reorganization of Borrower or otherwise, the Guarantor’s obligations hereunder with respect to such payment shall be reinstated as though such payment has been due but not made at such time.

[Remainder of page intentionally left blank.]

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This Guaranty has been duly executed as of the day and year first written above. 
GUARANTOR:

GLOBAL NET LEASE OPERATING PARTNERSHIP, L.P., a Delaware limited partnership

By:    Global Net Lease Inc.
Its general partner

By:     /s/ Jesse Galloway
Name: Jesse Galloway
Title: Authorized Signatory 
     
    

SCHEDULE I

Borrower

		
	1.
	ARC GEGRDMI001, LLC, a Delaware limited liability company

		
	2.
	ARC GSIFLMN001, LLC, a Delaware limited liability company

		
	3.
	ARC MKMDNNJ001, LLC, a Delaware limited liability company

		
	4.
	ARC SZPTNNJ001, LLC, a Delaware limited liability company

		
	5.
	ARC CSVBTMI001, LLC, a Delaware limited liability company

		
	6.
	ARG FEMRGWV001, LLC, a Delaware limited liability company

		
	7.
	ARC NNMFBTN001, LLC, a Delaware limited liability company

		
	8.
	ARC FEBHMNY001, LLC, a Delaware limited liability company

		
	9.
	ARC LPSBDIN001, LLC, a Delaware limited liability company

		
	10.
	ARC PNSCRPA001, LLC, a Delaware limited liability company

		
	11.
	ARC CJHSNTX002, LLC, a Delaware limited liability company

		
	12.
	ARC CJHSNTX001, LLC, a Delaware limited liability companyExhibit

Exhibit 10.7

ENVIRONMENTAL INDEMNITY AGREEMENT
THIS ENVIRONMENTAL INDEMNITY AGREEMENT (together with all extensions, renewals, modifications, substitutions and amendments hereof, this “Agreement”) is made as of the 27th day of October, 2017 by THE ENTITIES LISTED ON SCHEDULE I ATTACHED HERETO, each having an address at c/o Global Net Lease, Inc., 405 Park Avenue, New York, New York 10022 (collectively, “Borrower”), and GLOBAL NET LEASE OPERATING PARTNERSHIP, L.P., a Delaware limited partnership, having an address at 405 Park Avenue, New York, New York 10022 (“Guarantor”, and together with Borrower, individually and collectively, as the context may require, together with their respective permitted successors and assigns, “Indemnitor”), in favor of COLUMN FINANCIAL, INC., a Delaware corporation, having an address at 11 Madison Avenue, New York, New York 10010 (“Column”) and CITI REAL ESTATE FUNDING INC., a New York corporation, having an address at 390 Greenwich Street, 7th Floor, New York, New York 10013 (“Citi”; each of Column and Citi is a “Co-Lender” and, collectively, together with their respective successors and permitted assigns, “Indemnitee”). Capitalized terms used herein and not specifically defined herein shall have the respective meanings ascribed to such terms in the Loan Agreement (as defined below).  
RECITALS:
A.Borrower is the fee owner of the Properties;
B.    Co-Lenders are prepared to make a loan (the “Loan”) to Borrower in the principal amount of ONE HUNDRED EIGHTY-SEVEN MILLION AND NO/100 DOLLARS ($187,000,000.00) pursuant to that certain Loan Agreement, of even date herewith, between Borrower and Co-Lenders (as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time, the “Loan Agreement”), which Loan shall be evidenced by the Note and secured by, among other things, the Security Instruments encumbering each Individual Property.
C.    Co-Lenders are unwilling to make the Loan unless Indemnitor agrees to provide the indemnification, representations, warranties, covenants and other matters described in this Agreement for the benefit of the Indemnified Parties.
D.    Indemnitor is entering into this Agreement to induce Co-Lenders to make the Loan.
AGREEMENT:
NOW THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each Indemnitor hereby represents, warrants, covenants and agrees for the benefit of the Indemnified Parties as follows:
1.Environmental Representations and Warranties.  Except as otherwise disclosed by the Environmental Report with respect to each Individual Property (a) there are no 

    

Hazardous Substances (defined below) or underground storage tanks in, on, or under any Individual Property, except those that are both (i) in compliance with all Environmental Laws (defined below) and with permits issued pursuant thereto and (ii) fully disclosed to Indemnitee in writing pursuant to the Environmental Report; (b) to Indemnitor’s knowledge, there are no past or present Releases (defined below) of Hazardous Substances in, on, under or from any Individual Property which have not been fully remediated in all material respects in accordance with Environmental Law; (c) Indemnitor does not know of, and has not received, any written notice or other communication from any Person (including but not limited to a Governmental Authority) relating to the threat of any Release of Hazardous Substances migrating to any Individual Property; (d) there is no past or present non-compliance with Environmental Laws, or with permits issued pursuant thereto, in connection with the Property which has not been remediated or otherwise corrected in all material respects in accordance with Environmental Law; (e) Indemnitor does not know of, and has not received, any written notice or other communication from any Person (including but not limited to a Governmental Authority) relating to Hazardous Substances or Remediation (defined below) thereof, of possible liability of any Person pursuant to any Environmental Law, or any actual or potential administrative or judicial proceedings in connection with any of the foregoing; and (f) Indemnitor has truthfully and fully provided to Indemnitee all information that is contained in files and records of Indemnitor, including but not limited to any reports relating to Hazardous Substances in, on, under or from any Individual Property and/or to the environmental condition of any Individual Property.
2.    Environmental Covenants.  Each Indemnitor covenants and agrees that:  (a) all uses and operations on or of each Individual Property, whether by Indemnitor or any other Person, shall be in compliance with all Environmental Laws and permits issued pursuant thereto; (b) there shall be no Releases of Hazardous Substances in, on, under or from any Individual Property, except those that are both (i) in compliance with all Environmental Laws and with permits issued pursuant thereto and (ii) fully disclosed to Indemnitee in writing when known to Indemnitor; (c) there shall be no Hazardous Substances in, on, or under any Individual Property, except those that are (i) in compliance with all Environmental Laws and with permits issued pursuant thereto and (ii) fully disclosed to Indemnitee in writing when known to Indemnitor; (d) Indemnitor shall keep each Individual Property free and clear of all liens and other encumbrances imposed pursuant to any Environmental Law, whether due to any act or omission of Indemnitor or any other Person (the “Environmental Liens”); (e) Indemnitor shall, at its sole cost and expense, fully and expeditiously cooperate in all activities pursuant to Paragraph 3 of this Agreement, including, but not limited to, providing all relevant information and making knowledgeable Persons available for interviews; (f) Indemnitor shall, at its sole cost and expense, perform any environmental site assessment or other investigation of environmental conditions in connection with each Individual Property, upon any reasonable written request of Indemnitee in the event Indemnitee reasonably believes an environmental hazard exists that may, in Indemnitee’s sole discretion, endanger any Tenants or other occupants of such Individual Property or its guests or the general public or is reasonably likely to result in a Material Adverse Effect, or following a determination by Indemnitee that Hazardous Substances are in, on or under such Individual Property in violation of applicable Environmental Laws (including, but not limited to, sampling, testing and analysis of soil, water, air, building materials, and other materials and substances whether solid, liquid or gas), and share with Indemnitee the reports and other results thereof, and Indemnitee and the other Indemnified Parties shall be entitled to rely on such reports and other results thereof; (g) Indemnitor shall, at its sole cost and 

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expense, comply with all reasonable written requests of Indemnitee to (i) effectuate Remediation of any environmental condition (including, but not limited to, a Release of a Hazardous Substance) in, on, under or from any Individual Property to the extent required by applicable Environmental Law; (ii) comply with any Environmental Law; (iii) comply with any directive from any Governmental Authority relating to the presence or Release of Hazardous Substances in, on, under or from any Individual Property or relating to any violation of Environmental Law or permit issued pursuant thereto; and (iv) take any other reasonable action necessary or appropriate for protection of human health or the environment to the extent any material risk exists that is not covered under Environmental Law but such risk is caused by a substance that is commonly recognized under industry standards for environmental hazards to be hazardous to health and safety; (h) Indemnitor shall not do, and shall use commercially reasonable efforts to not allow any tenant or other user of any Individual Property to do, any act that materially increases the dangers to human health (as it relates to Releases or exposure to Hazardous Substances) or the environment from Hazardous Substances in violation of, or to the extent covered by, Environmental Law, poses an unreasonable risk of harm to any Person (whether on or off any Individual Property) due to a Release or exposure to Hazardous Substances in violation of, or to the extent covered by Environmental Law, is reasonably likely to result in a Material Adverse Effect, or would result in a violation of applicable Environmental Law; and (i) Indemnitor shall immediately notify Indemnitee in writing promptly after Indemnitee has knowledge of (i) any presence or Releases or threatened Releases of Hazardous Substances in, on, under, from or migrating towards any Individual Property in violation of, or would reasonably be expected to result in liability pursuant to, applicable Environmental Law; (ii) any non-compliance with any Environmental Laws related in any way to any Individual Property; (iii) any actual Environmental Lien or threat of an Environmental Lien; (iv) any required or proposed Remediation of environmental conditions relating to any Individual Property; and (v) any written notice or other communication of which any Indemnitor becomes aware from any source whatsoever (including, but not limited to, a Governmental Authority) asserting the existence of, or identifying Hazardous Substances, on, any Individual Property in violation of applicable Environmental Law or as had or would reasonably be expected to result in liability pursuant to any Environmental Law relating to any Individual Property, other environmental conditions in connection with any Individual Property, or any actual or potential administrative or judicial proceedings in connection with anything referred to in this Agreement to the extent related to any Individual Property.
3.    Indemnified Rights/Cooperation and Access.  In the event the Indemnified Parties reasonably believe that a violation of Environmental Law or Hazardous Substances exists or a Release of Hazardous Substances has occurred on any Individual Property that does, in the sole discretion of the Indemnified Parties, endanger any tenants or other occupants of such Individual Property or their guests or the general public or is reasonably likely to result in a Material Adverse Effect, upon reasonable notice from the Indemnitee, Indemnitor shall, at Indemnitor’s expense, promptly cause an independent engineer or consultant reasonably satisfactory to the Indemnified Parties to conduct an environmental assessment or audit (the scope of which shall be determined in the sole and absolute discretion of the Indemnified Parties) and take any samples of soil, groundwater or other water, air, or building materials or any other invasive testing requested by Indemnitee and promptly deliver to Indemnitee the results of any such assessment, audit, sampling or other testing; provided, however, if such results are not delivered to the Indemnified Parties within a reasonable period or if the Indemnified Parties reasonably believe that an environmental 

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hazard exists on any Individual Property in violation of applicable Environmental Laws that, in the sole judgment of the Indemnified Parties, endangers any tenant or other occupant of such Individual Property or their guests or the general public or is reasonably likely to result in a Material Adverse Effect, upon reasonable notice to Borrower, the Indemnified Parties and any other Person designated by the Indemnified Parties, including, but not limited to, any receiver, any representative of a governmental entity, and any environmental consultant, shall have the right, but not the obligation, to enter upon such Individual Property at all reasonable times to assess any and all aspects of the environmental condition of such Individual Property and its use, including but not limited to, conducting any environmental assessment or audit (the scope of which shall be determined in the sole and absolute discretion of the Indemnified Parties) and taking samples of soil, groundwater or other water, air, or building materials, and reasonably conducting other invasive testing.  Indemnitor shall cooperate with and provide the Indemnified Parties and any such Person designated by the Indemnified Parties with access to any Individual Property to undertake the foregoing.
4.    Indemnification.  Each Indemnitor covenants and agrees, at its sole cost and expense, to protect, defend, indemnify, release and hold Indemnified Parties harmless from and against any and all Losses (defined below) imposed upon or incurred by or asserted against any Indemnified Parties and directly or indirectly arising out of or in any way relating to any one or more of the following:  (a) any presence of any Hazardous Substances in, on, above, or under any Individual Property; (b) any past, present or threatened Release of Hazardous Substances in, on, above, under or from any Individual Property; (c) any activity by Indemnitor, any Person affiliated with Indemnitor, and any tenant or other user of any Individual Property in connection with any actual, proposed or threatened use, treatment, storage, holding, existence, disposition or other Release, generation, production, manufacturing, processing, refining, control, management, abatement, removal, handling, transfer or transportation to or from such Individual Property of any Hazardous Substances at any time located in, under, on or above such Individual Property; (d) any activity by Indemnitor, any Affiliate of Indemnitor, and any tenant or other user of any Individual Property in connection with any actual or proposed Remediation of any Hazardous Substances at any time located in, under, on or above such Individual Property, whether or not such Remediation is voluntary or pursuant to court or administrative order, including, but not limited to, any removal, remedial or corrective action; (e) any past, present or threatened non-compliance or violations of any Environmental Laws (or permits issued pursuant to any Environmental Law) in connection with any Individual Property or operations thereon, including, but not limited to, any failure by Indemnitor, any Affiliate of Indemnitor, and any tenant or other user of such Individual Property to comply with any order of any Governmental Authority in connection with any Environmental Laws; (f) the imposition, recording or filing or the threatened imposition, recording or filing of any Environmental Lien encumbering any Individual Property; (g) any administrative processes or proceedings or judicial proceedings in any way connected with any matter addressed in this Agreement; (h) any past, present or threatened injury to, destruction of or loss of natural resources in any way connected with any Individual Property, including, but not limited to, costs to investigate and assess such injury, destruction or loss; (i) any acts of Indemnitor, any Affiliate of Indemnitor, and any tenant or other user of any Individual Property in arranging for disposal or treatment, or arranging with a transporter for transport for disposal or treatment, of Hazardous Substances at any facility or incineration vessel containing Hazardous Substances; (j) any acts of Indemnitor, Affiliate of  Indemnitor, and any tenant or other user of any Individual Property in accepting any Hazardous 

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Substances for transport to disposal or treatment facilities, incineration vessels or sites from which there is a Release, or a threatened Release of any Hazardous Substance which causes the incurrence of costs for Remediation; (k) any personal injury, wrongful death, or property or other damage arising under any statutory or common law or tort law theory (including, but not limited to, damages assessed for private or public nuisance or for the conducting of an abnormally dangerous activity on any Individual Property), but only to the extent arising from the violation of any Environmental Law or release of Hazardous Substances from any Individual Property; and (l) any misrepresentation or inaccuracy in any representation or warranty or material breach or failure to perform any covenants or other obligations pursuant to this Agreement, the Loan Agreement or the Security Instruments relating to environmental matters. Notwithstanding the foregoing, Indemnitors shall not have any obligation to an Indemnified Party hereunder to the extent any Losses caused by the gross negligence, illegal acts or willful misconduct of such Indemnified Party.
5.    Duty to Defend and Attorneys and Other Fees and Expenses.  Upon written request by any Indemnified Party, Indemnitor shall defend same (if requested by any Indemnified Party, in the name of the Indemnified Party) by attorneys and other professionals approved by the Indemnified Parties.  Notwithstanding the foregoing, any Indemnified Parties may, in their sole and absolute discretion, engage their own attorneys and other professionals to defend or assist them, and, at the option of such Indemnified Parties, their attorneys shall control the resolution of any claim or proceeding, providing that no compromise or settlement shall be entered without Indemnitor’s consent, which consent shall not be unreasonably withheld.  Upon demand, Indemnitor shall pay or, in the sole and absolute discretion of the Indemnified Parties, reimburse, the Indemnified Parties for the payment of reasonable fees and disbursements of attorneys, engineers, environmental consultants, laboratories and other professionals in connection therewith.
6.    Definitions.  As used in this Agreement, the following terms shall have the following meanings:
The term “Environmental Law” means any present and future federal, state and local laws, statutes, ordinances, rules, regulations and the like, as well as common law, relating to protection of human health or the environment, relating to Hazardous Substances, relating to liability for or costs of Remediation or prevention of Releases of Hazardous Substances or relating to liability for or costs of other actual or threatened danger to human health or the environment from substances like Hazardous Substances.  “Environmental Law” includes, but is not limited to, the following statutes, as amended, any successor thereto, and any regulations promulgated pursuant thereto, and any state or local statutes, ordinances, rules, regulations and the like addressing similar issues:  the Comprehensive Environmental Response, Compensation and Liability Act; the Emergency Planning and Community Right-to-Know Act; the Hazardous Substances Transportation Act; the Resource Conservation and Recovery Act (including but not limited to Subtitle I relating to underground storage tanks); the Solid Waste Disposal Act; the Clean Water Act; the Clean Air Act; the Toxic Substances Control Act; the Safe Drinking Water Act; the Occupational Safety and Health Act; the Federal Water Pollution Control Act; the Federal Insecticide, Fungicide and Rodenticide Act; the Endangered Species Act; the National Environmental Policy Act; the Oil Pollution Act of 1990; and the River and Harbors Appropriation Act.  “Environmental Law” also includes, but is not limited to, any present and future federal, state and local laws, statutes, ordinances, rules, 

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regulations and the like, as well as common law:  (a) conditioning transfer of property upon a negative declaration or other approval of a Governmental Authority of the environmental condition of any Individual Property; (b) requiring notification or disclosure of Releases of Hazardous Substances or other environmental condition of any Individual Property to any Governmental Authority or other Person, whether or not in connection with transfer of title to or interest in property; (c) imposing conditions or requirements in connection with permits or other authorization for lawful activity; (d) relating to nuisance, trespass or other causes of action related to any Individual Property in connection with any physical condition or use of any such Individual Property by reason of the presence of Hazardous Substances in, on or under any Individual Property; (e) relating to wrongful death, personal injury resulting from environmental conditions or exposure to Hazardous Substances or (f) property or other damage in connection with any environmental condition or use of Hazardous Substances at the any Individual Property.
The term “Hazardous Substances” means any and all substances (whether solid, liquid or gas) defined, listed, or otherwise classified as pollutants, hazardous wastes, hazardous substances, hazardous materials, extremely hazardous wastes, or words of similar meaning or regulatory effect under any present or future Environmental Laws or that may have a negative impact on human health or the environment, including, but not limited to, petroleum and petroleum products, asbestos and asbestos-containing materials, polychlorinated biphenyls, lead, radon, radioactive materials, flammables and explosives, mold, mycotoxins, microbial matter and airborne pathogens (naturally occurring or otherwise), volatile organic compounds, but excluding substances of kinds and in amounts ordinarily and customarily used or stored in properties similar to the Properties for the purposes of cleaning or other maintenance or operations and otherwise in compliance with all Environmental Laws.
The term “Indemnified Parties” means each Co-Lender, any Affiliate of a Co-Lender that has filed any registration statement relating to the Securitization or has acted as the sponsor or depositor in connection with the Securitization, any Affiliate of any Co-Lender that acts as an underwriter, placement agent or initial purchaser of Securities issued in the Securitization, any other co‐underwriters, co placement agents or co initial purchasers of Securities issued in the Securitization, and each of their respective officers, directors, partners, employees, representatives, agents and Affiliates and each Person or entity who Controls any such Person within the meaning of Section 15 of the Securities Act or Section 20 of the Security Exchange Act, any Person who is or will have been involved in the origination of the Loan, any Person who is or will have been involved in the servicing of the Loan secured hereby, any Person in whose name the encumbrance created by the Security Instruments is or will have been recorded, any Person who may hold or acquire or will have held a full or partial interest in the Loan secured hereby (including, but not limited to, investors in the Securities, as well as custodians, trustees and other fiduciaries who hold or have held a full or partial interest in the Loan secured hereby for the benefit of third parties) as well as the respective directors, officers, shareholders, partners, representatives involved in the origination of the Loan, contractors involved in the origination of the Loan, affiliates, subsidiaries, successors and assigns of any and all of the foregoing (including, but not limited to, any other Person who holds or acquires or will have held a participation or other full or partial interest in the Loan, whether during the term of the Loan or as a part of or following a foreclosure of the Loan and 

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including, but not limited to any successors by merger, consolidation or acquisition of all or a substantial portion of a Co-Lender’s assets and business).
The term “Legal Action” means any claim, suit or proceeding, whether administrative or judicial in nature.
The term “Losses” means any losses, damages, costs, fees, expenses, claims, suits, judgments, awards, liabilities (including, but not limited to, strict liabilities), obligations, debts, diminutions in value arising solely from the presence of Hazardous Substances in, on or under the Property (provided, however, that any diminution in value of the Property arising from or in connection with the presence of Hazardous Substances in, on, under or at the Property, shall constitute a Loss only if, when and to the extent that the same renders the Indemnified Parties unable to collect full repayment of the Obligations or full satisfaction thereof through a realization of all of its collateral security for the Obligations or any other remedy of Indemnitee under the Loan Documents after giving due credit for the value of any collateral security which the Indemnified Parties elect not to realize upon unless such collateral security is the subject of a Release or other environmental contamination in violation of Environmental Laws), fines, penalties, charges, costs of Remediation (whether or not performed voluntarily), amounts paid in settlement, litigation costs, attorneys’ fees, engineers’ fees, environmental consultants’ fees, and investigation costs (including, but not limited to, costs for sampling, testing and analysis of soil, water, air, building materials, and other materials and substances whether solid, liquid or gas), of whatever kind or nature, and whether or not incurred in connection with any judicial or administrative proceedings, actions, claims, suits, judgments or awards; provided, however, in no event shall Indemnitor have any liability under this Agreement for special, incidental, indirect or consequential damages.
The term “Release” means, but is not limited to, any release, deposit, discharge, emission, leaking, leaching, spilling, seeping, migrating, injecting, pumping, pouring, emptying, escaping, dumping, disposing or other movement of Hazardous Substances.
The term “Remediation” includes, but is not limited to, any response, remedial, removal, or corrective action involving any violation of Environmental Law or Hazardous Substances; any activity to clean up, detoxify, decontaminate, contain or otherwise remediate any Hazardous Substance; any actions to prevent, cure or mitigate any Release of any Hazardous Substance; any action to comply with any Environmental Laws or with any permits issued pursuant thereto or any directive from any Governmental Agency; any inspection, investigation, study, monitoring, assessment, audit, sampling and testing, laboratory or other analysis, or evaluation relating to any Hazardous Substances or to anything referred to herein.
7.    Unimpaired Liability.  The liability of Indemnitor under this Agreement shall in no way be limited or impaired by, and Indemnitor hereby consents to and agrees to be bound by, any amendment or modification of the provisions of the Note, the Loan Agreement, the Security Instruments or any other Loan Document to or with Indemnitee by Indemnitor or any Person who succeeds Indemnitor or any Person as owner or operator of any Individual Property.  In addition, the liability of Indemnitor under this Agreement shall in no way be limited or impaired by (a) any extensions of time for performance required by the Note, the Loan Agreement, the Security Instruments or any of the other Loan Documents, (b) any sale or transfer of all or part of any 

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Individual Property, (c) any exculpatory provision in the Note, the Loan Agreement, the Security Instruments or any of the other Loan Documents limiting Indemnitee’s recourse to the Properties or to any other security for the Note, or limiting Indemnitee’s rights to a deficiency judgment against Indemnitor, (d) the accuracy or inaccuracy of the representations and warranties made by Indemnitor under the Note, the Loan Agreement, the Security Instruments or any of the other Loan Documents or herein, (e) the release of Indemnitor or any other Person from performance or observance of any of the agreements, covenants, terms or conditions contained in any of the other Loan Documents by operation of law, Indemnitee’s voluntary act, or otherwise, (f) the release or substitution in whole or in part of any security for the Note, or (g) Indemnitee’s failure to record the Security Instruments or file any UCC financing statements (or Indemnitee’s improper recording or filing of any thereof) or to otherwise perfect, protect, secure or insure any security interest or lien given as security for the Note; and, in any such case, whether with or without notice to Indemnitor and with or without consideration.
8.    Enforcement.  The Indemnified Parties may enforce the obligations of Indemnitor without first resorting to, or exhausting any security or collateral under, or without first having recourse to, the Note, the Loan Agreement, the Security Instruments or any other Loan Documents or any of the Individual Properties, through foreclosure proceedings or otherwise; provided, however, that nothing herein shall inhibit or prevent Indemnitee from suing on the Note, foreclosing, or exercising any power of sale under the Security Instruments, or exercising any other rights and remedies thereunder.  This Agreement is not collateral or security for the Debt, unless Indemnitee expressly elects in writing to make this Agreement additional collateral or security for the Debt, which Indemnitee is entitled to do in its sole and absolute discretion.  It is not necessary for an Event of Default to have occurred for Indemnified Parties to exercise their rights pursuant to this Agreement.  Notwithstanding any provision of the Loan Agreement, Indemnitor is fully and personally liable for such obligations under this Agreement, and such liability is not limited to the original or amortized principal balance of the Loan or the value of each Individual Property.
9.    Survival.  The obligations and liabilities of Indemnitor under this Agreement shall fully survive indefinitely notwithstanding any termination, satisfaction, assignment, entry of a judgment of foreclosure, exercise of any power of sale, or delivery of a deed in lieu of foreclosure of the Security Instruments. Notwithstanding the foregoing or anything contained in this Agreement or any other Loan Documents to the contrary, if, (a) at any time after the second anniversary of repayment in full of the Debt, whether at maturity, as a result of acceleration, in connection with prepayment or otherwise, or (b) with respect to any Individual Property that is released from the lien of the applicable Security Instrument in accordance with the terms of Section 2.5.2 or Section 2.5.3 of the Loan Agreement, at any time after the second anniversary of the effective date of such release, Indemnitee is provided with an updated environmental report of the related Individual Property indicating to Indemnitee’s reasonable satisfaction that there are no Hazardous Substances located on, in, above or under such Individual Property in violation of any applicable Environmental Laws, then the obligations and liabilities of Indemnitor under this Agreement shall cease and terminate with respect to such Individual Properties. Notwithstanding the provisions of this Agreement to the contrary, the liabilities and obligations of Indemnitor hereunder shall not apply to the extent that such liabilities and obligations arose solely from Hazardous Substances that:  (a) were not present on or a threat to any Individual Property prior to the date that Indemnitee or its 

-8-

nominee acquired title to such Individual Property, whether by (i) foreclosure, exercise of power of sale or otherwise, or (ii) any action taken (x) by any mezzanine lender permitted under Section 9.1.1(b)(i) and/or Section 9.1.3 of the Loan Agreement during any period in which such mezzanine lender exercises Control over Borrower and/or the Property, or (y) from and after a mezzanine foreclosure or assignment-in-lieu thereof; provided, that in any case, such circumstances, conditions, actions or events are not caused by Indemnitor or an Affiliate of Indemnitor, and (b) were not the result of any act or negligence of Indemnitor or any of Indemnitor’s affiliates, agents or contractors.  
10.    Interest.  Any amounts payable to any Indemnified Parties under this Agreement shall become immediately due and payable on demand and, if not paid within thirty (30) days after such demand therefor, shall bear interest at the lesser of (a) the Default Rate or (b) the Maximum Legal Rate which Indemnitor may by law pay or the Indemnified Parties may charge and collect, from the date payment was due, provided that the foregoing shall be subject to the provisions of Article 4 of the Note.
11.    Waivers.  (a)  Each Indemnitor hereby waives as to itself (i) any right or claim of right to cause a marshaling of Indemnitor’s assets or to cause Indemnitee or other Indemnified Parties to proceed against any of the security for the Loan before proceeding under this Agreement against Indemnitor; (ii) and relinquishes all rights and remedies accorded by Legal Requirements to indemnitors or guarantors, except any rights of subrogation which Indemnitor may have, provided that the indemnity provided for hereunder shall neither be contingent upon the existence of any such rights of subrogation nor subject to any claims or defenses whatsoever which may be asserted in connection with the enforcement or attempted enforcement of such subrogation rights including, without limitation, any claim that such subrogation rights were abrogated by any acts of Indemnitee or other Indemnified Parties; (iii) the right to assert a counterclaim, other than a mandatory or compulsory counterclaim, in any action or proceeding brought against or by Indemnitee or other Indemnified Parties; (iv) notice of acceptance hereof and of any action taken or omitted in reliance hereon; (v) presentment for payment, demand of payment, protest or notice of nonpayment or failure to perform or observe, or other proof, or notice or demand; and (vi) all homestead exemption rights against the obligations hereunder and the benefits of any statutes of limitations or repose.  Notwithstanding anything to the contrary contained herein, Indemnitor hereby agrees to postpone the exercise of any rights of subrogation with respect to any collateral securing the Loan until the Loan shall have been paid in full.
(a)    EACH INDEMNITOR AND INDEMNITEE (BY ITS ACCEPTANCE OF THIS AGREEMENT) HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM, WHETHER IN CONTRACT, TORT OR OTHERWISE, RELATING TO THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS OR ANY ACTS OR OMISSIONS OF ANY INDEMNIFIED PARTIES IN CONNECTION THEREWITH.
12.    Subrogation.  Indemnitor shall take any and all reasonable actions, including institution of legal action against third parties and against any other Indemnitor, necessary or appropriate to obtain reimbursement, payment or compensation from such persons responsible for the presence of any Hazardous Substances at, in, on, under or near any Individual Property or 

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otherwise obligated by law to bear the cost.  Indemnified Parties shall be and hereby are subrogated to all of Indemnitor’s rights now or hereafter in such claims.
13.    Indemnitor’s Representations and Warranties.  Each Indemnitor represents and warrants as to itself that:
(a)    it has the full power and authority to execute and deliver this Agreement and to perform its obligations hereunder; the execution, delivery and performance of this Agreement by Indemnitor has been duly and validly authorized; and all requisite action has been taken by Indemnitor to make this Agreement valid and binding upon Indemnitor, enforceable in accordance with its terms;
(b)    its execution of, and compliance with, this Agreement is in the ordinary course of business of Indemnitor and will not result in the breach of any term or provision of the charter, by-laws, partnership, operating or trust agreement, or other governing instrument of Indemnitor or result in the breach of any term or provision of, or conflict with or constitute a default under, or result in the acceleration of any obligation under, any agreement, indenture or loan or credit agreement or other instrument to which Indemnitor or any Individual Property is subject, or result in the violation of any law, rule, regulation, order, judgment or decree to which Indemnitor or such Individual Property is subject;
(c)    to the best of Indemnitor’s knowledge, there is no action, suit, proceeding or investigation pending or threatened against it which, either in any one instance or in the aggregate, may result in any material adverse change in the business, operations, financial condition, properties or assets of Indemnitor, or in any material impairment of the right or ability of Indemnitor to carry on its business substantially as now conducted, or in any material liability on the part of Indemnitor, or which would draw into question the validity of this Agreement or of any action taken or to be taken in connection with the obligations of Indemnitor contemplated herein, or which would be likely to impair materially the ability of Indemnitor to perform under the terms of this Agreement;
(d)    it does not believe, nor does it have any reason or cause to believe, that it cannot perform each and every covenant contained in this Agreement;
(e)    to the best of Indemnitor’s knowledge, no approval, authorization, order, license or consent of, or registration or filing with, any Governmental Authority or other person, and no approval, authorization or consent of any other party is required in connection with this Agreement; and
(f)    this Agreement constitutes a valid, legal and binding obligation of Indemnitor, enforceable against it in accordance with the terms hereof subject to applicable bankruptcy, insolvency and similar laws affecting rights of creditors generally and to general principals of equity (regardless of whether enforcement is sought in a proceeding in equity or at law).

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14.    No Waiver.  No delay by any Indemnified Party in exercising any right, power or privilege under this Agreement shall operate as a waiver of any such privilege, power or right.
15.    Notice of Legal Actions.  Each party hereto shall, within five (5) Business Days of receipt thereof, give written notice to the other party hereto of (a) any notice, advice or other communication from any Governmental Authority or any source whatsoever with respect to Hazardous Substances on, from or affecting any Individual Property, and (b) any legal action brought against such party or related to any Individual Property, with respect to which Indemnitor may have liability under this Agreement.  Such notice shall comply with the provisions of Section 19 hereof.
16.    Examination of Books and Records.  At reasonable times and upon reasonable notice, the Indemnified Parties and their accountants shall have the right to examine the books and records of Indemnitor pertaining to the environmental condition of any Individual Property, at such Individual Property or at the office regularly maintained by Indemnitor where the books and records are located.  The Indemnified Parties and their accountants shall have the right to make copies and extracts from the foregoing records and other papers.
17.    Transfer of Loan.  Indemnitee may, subject to the provisions of Section 9.1.2 of the Loan Agreement, at any time, sell, transfer or assign all or any portion of its interest in the Note, the Loan Agreement, the Security Instruments, this Agreement and the other Loan Documents, and any or all servicing rights with respect thereto, or grant participations therein or issue mortgage pass-through certificates, each in accordance with the terms of the Loan Agreement.  Indemnitee may forward to each purchaser, transferee, assignee, servicer or participant (the foregoing entities hereinafter collectively referred to as the “Investor”) and each prospective Investor, all documents and information which Indemnitee now has or may hereafter acquire relating to Indemnitor and the Properties, whether furnished by Indemnitor, any guarantor or otherwise, as Indemnitee determines necessary or desirable.  Subject to Section 9.1.2 of the Loan Agreement, Indemnitor and any guarantor agree to cooperate with Indemnitee in connection with any transfer made or Securities created pursuant to this Section, including, without limitation, the delivery of an estoppel certificate and such other documents as may be reasonably requested by Indemnitee.  Indemnitor shall also furnish, and Indemnitor hereby consents to Indemnitee furnishing to such Investors or such prospective Investors, any and all information concerning the financial condition of the Indemnitor and any and all information concerning the Properties and the Leases as may be requested by Indemnitee, any Investor or any prospective Investor in connection with any sale, transfer or participation interest.  Upon any transfer or proposed transfer contemplated above and by Section 9.1 of the Loan Agreement, at Indemnitee’s request, Indemnitor shall provide an estoppel certificate to the Investor or any prospective Investor in such form, substance and detail as Indemnitee, such Investor or prospective Investor may reasonably require.
18.    Taxes.  Each Indemnitor has filed all federal, state, county, municipal, and city income and other tax returns required to have been filed by it and has paid all taxes and related liabilities which have become due pursuant to such returns or pursuant to any assessments received by it.  No Indemnitor has any knowledge of any basis for any additional assessment in respect of any such taxes and related liabilities for prior years.

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19.    Notices.  All notices, consents, approvals and requests required or permitted hereunder 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, return receipt requested or (b) expedited prepaid delivery service, either commercial or United States Postal Service, with proof of attempted delivery, 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 notice to the other parties hereto in the manner provided for in this Section):
		
	If to Indemnitee:
	Column Financial, Inc. 
11 Madison Avenue  
New York, New York  10010 
Attention:  Sarah Nelson, Esq.

		
	and to:
	Citi Real Estate Funding Inc. 
390 Greenwich Street 
7th Floor 
New York, New York 10013 
Attention:  Ana Rosu Marmann

Facsimile No.: (646) 328-2938
		
	with a copy to:
	Cadwalader, Wickersham & Taft, LLP 
227 West Trade Street, Suite 2400 
Charlotte, North Carolina 28202 
Attention:  Holly M. Chamberlain, Esq.

		
	If to Indemnitor:
	c/o Global Net Lease, Inc. 
405 Park Avenue 
New York, New York 10022 
Attention:  Legal Department

		
	With a copy to:
	Arnold & Porter Kaye Scholer LLP 
250 W 55th Street 
New York, NY  10019 
Attention:  John Busillo, Esq.

A notice shall be deemed to have been given:  in the case of hand delivery, at the time of delivery; in the case of registered or certified mail, when delivered or the first attempted delivery on a Business Day; or in the case of expedited prepaid delivery, upon the first attempted delivery on a Business Day.
20.    Duplicate Originals; Counterparts.  This Agreement may be executed in any number of duplicate originals and each duplicate original shall be deemed to be an original.  This Agreement may be executed in several counterparts, each of which counterparts shall be deemed an original instrument and all of which together shall constitute a single Agreement.  The failure of any party hereto to execute this Agreement, or any counterpart hereof, shall not relieve the other signatories from their obligations hereunder.

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21.    No Oral Change.  This Agreement, and any provisions hereof, may not be modified, amended, waived, extended, changed, discharged or terminated orally or by any act or failure to act on the part of Indemnitor or any Indemnified Party, but only by an agreement in writing signed by the party against whom enforcement of any modification, amendment, waiver, extension, change, discharge or termination is sought.
22.    Headings, Etc.  The headings and captions of various sections of this Agreement are for convenience of reference only and are not to be construed as defining or limiting, in any way, the scope or intent of the provisions hereof.
23.    Number and Gender/Successors and Assigns.  All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural as the identity of the Person or Persons referred to may require.  Without limiting the effect of specific references in any provision of this Agreement, the term “Indemnitor” shall be deemed to refer to each and every Person comprising an Indemnitor from time to time, as the sense of a particular provision may require, and to include the heirs, executors, administrators, legal representatives, successors and permitted assigns of Indemnitor, all of whom shall be bound by the provisions of this Agreement, provided that no obligation of Indemnitor may be assigned except with the written consent of Indemnitee or as otherwise provided in the Loan Agreement.  Each reference herein to Indemnitee shall be deemed to include its successors and assigns.  This Agreement shall inure to the benefit of Indemnified Parties and their respective successors and assigns forever.
24.    Release of Liability.  Any one or more parties liable upon or in respect of this Agreement may be released without affecting the liability of any party not so released.
25.    Rights Cumulative.  The rights and remedies herein provided are cumulative and not exclusive of any rights or remedies which Indemnitee has under the Note, the Security Instruments, the Loan Agreement or the other Loan Documents or would otherwise have at law or in equity.
26.    Inapplicable Provisions.  If any term, condition or covenant of this Agreement shall be held to be invalid, illegal or unenforceable in any respect, this Agreement shall be construed without such provision.
27.    Governing Law.  (a)  THIS AGREEMENT WAS NEGOTIATED IN THE STATE OF NEW YORK, AND MADE BY INDEMNITOR AND ACCEPTED BY INDEMNITEE IN THE STATE OF NEW YORK, AND THE PROCEEDS OF THE NOTE SECURED HEREBY 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 AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE (WITHOUT REGARD TO PRINCIPLES OF CONFLICT LAWS) AND ANY 

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APPLICABLE LAW OF THE UNITED STATES OF AMERICA, EXCEPT THAT AT ALL TIMES THE PROVISIONS FOR THE CREATION, PERFECTION, AND ENFORCEMENT OF THE LIENS AND SECURITY INTERESTS CREATED PURSUANT HERETO AND PURSUANT TO THE OTHER LOAN DOCUMENTS WITH RESPECT TO EACH INDIVIDUAL PROPERTY SHALL BE GOVERNED BY AND CONSTRUED ACCORDING TO THE LAW OF THE STATE IN WHICH SUCH INDIVIDUAL PROPERTY IS LOCATED, 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 CONSTRUCTION, VALIDITY AND ENFORCEABILITY OF ALL LOAN DOCUMENTS AND ALL OF THE OBLIGATIONS ARISING HEREUNDER OR THEREUNDER.  TO THE FULLEST EXTENT PERMITTED BY LAW, EACH INDEMNITOR HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS AGREEMENT AND THE NOTE, AND THIS AGREEMENT AND THE NOTE 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.
(a)    ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST INDEMNITEE OR INDEMNITOR ARISING OUT OF OR RELATING TO THIS AGREEMENT MAY AT INDEMNITEE’S OPTION BE INSTITUTED IN ANY FEDERAL OR 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 INDEMNITOR 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 INDEMNITOR HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUIT, ACTION OR PROCEEDING.  EACH INDEMNITOR DOES HEREBY DESIGNATE AND APPOINT:
CORPORATION SERVICE COMPANY (CSC) 
80 State Street 
Albany, New York 12207-2543
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 INDEMNITOR IN THE MANNER PROVIDED HEREIN SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON INDEMNITOR IN ANY SUCH SUIT, ACTION OR PROCEEDING IN THE STATE OF NEW YORK.  INDEMNITOR (I) SHALL GIVE PROMPT NOTICE TO INDEMNITEE 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 

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NEW YORK, NEW YORK (WHICH SUBSTITUTE AGENT AND OFFICE SHALL BE DESIGNATED AS THE PERSON AND 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.
28.    Miscellaneous.  (a)  Wherever pursuant to this Agreement (i) Indemnitee exercises any right given to it to approve or disapprove, (ii) any arrangement or term is to be satisfactory to Indemnitee, or (iii) any other decision or determination is to be made by Indemnitee, the decision of Indemnitee to approve or disapprove, all decisions that arrangements or terms are satisfactory or not satisfactory and all other decisions and determinations made by Indemnitee, shall be in the sole and absolute discretion of Indemnitee and shall be final and conclusive, except as may be otherwise expressly and specifically provided herein.
(a)    Wherever pursuant to this Agreement it is provided that Indemnitor pay any costs and expenses, such costs and expenses shall include, but not be limited to, legal fees and disbursements of Indemnitee, whether with respect to retained firms, the reimbursements for the expenses of the in-house staff or otherwise; provided, however, Indemnitor shall only pay legal fees for more than one set of outside counsel for Indemnitee if such Indemnitee shall have reasonably concluded that there is an actual conflict of interest between Indemnitees seeking separate representation.
(b)    If Indemnitor consists of more than one Person, the obligations and liabilities of each such Person hereunder shall be joint and several.
 [NO FURTHER TEXT ON THIS PAGE]

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IN WITNESS WHEREOF, this Agreement has been executed by Indemnitor and is effective as of the day and year first above written.
INDEMNITOR:
GLOBAL NET LEASE, INC., a Maryland corporation
		
	By:
	/s/ Jesse Galloway 
Name:     Jesse Galloway 
Title:    Authorized Signatory

Environmental Indemnity Agreement

ARC GEGRDMI001, LLC, a Delaware limited liability company

By    Global Net Lease Operating Partnership, L.P.
Its sole member

By:    Global Net Lease, Inc.
Its general partner

By: /s/ Jesse Galloway
Name: Jesse Galloway
Title: Authorized Signatory
ARC GSIFLMN001, LLC, a Delaware limited liability company

By    Global Net Lease Operating Partnership, L.P.
Its sole member

By:    Global Net Lease, Inc.
Its general partner

By: /s/ Jesse Galloway
Name: Jesse Galloway
Title: Authorized Signatory

ARC MKMDNNJ001, LLC, a Delaware limited liability company

By    Global Net Lease Operating Partnership, L.P.
Its sole member

By:    Global Net Lease, Inc.
Its general partner

By: /s/ Jesse Galloway
Name: Jesse Galloway
Title: Authorized Signatory

[Signatures Continue on Following Page.]

-2-

ARC SZPTNNJ001, LLC, a Delaware limited liability company

By    Global Net Lease Operating Partnership, L.P.
Its sole member

By:    Global Net Lease, Inc.
Its general partner

By: /s/ Jesse Galloway
Name: Jesse Galloway
Title: Authorized Signatory

ARC CSVBTMI001, LLC, a Delaware limited liability company, a Delaware limited liability company

By    Global Net Lease Operating Partnership, L.P.
Its sole member

By:    Global Net Lease, Inc.
Its general partner

By: /s/ Jesse Galloway
Name: Jesse Galloway
Title: Authorized Signatory

ARG FEMRGWV001, LLC, a Delaware limited liability company, a Delaware limited liability company

By    Global Net Lease Operating Partnership, L.P.
Its sole member

By:    Global Net Lease, Inc.
Its general partner

By: /s/ Jesse Galloway
Name: Jesse Galloway
Title: Authorized Signatory

[Signatures Continue on Following Page.]

Environmental Indemnity Agreement

ARC NNMFBTN001, LLC, a Delaware limited liability company

By    Global Net Lease Operating Partnership, L.P.
Its sole member

By:    Global Net Lease, Inc.
Its general partner

By: /s/ Jesse Galloway
Name: Jesse Galloway
Title: Authorized Signatory

ARC FEBHMNY001, LLC, a Delaware limited liability company

By    Global Net Lease Operating Partnership, L.P.
Its sole member

By:    Global Net Lease, Inc.
Its general partner

By: /s/ Jesse Galloway
Name: Jesse Galloway
Title: Authorized Signatory

ARC LPSBDIN001, LLC, a Delaware limited liability company

By    Global Net Lease Operating Partnership, L.P.
Its sole member

By:    Global Net Lease, Inc.
Its general partner

By: /s/ Jesse Galloway
Name: Jesse Galloway
Title: Authorized Signatory

[Signatures Continue on Following Page.]

Environmental Indemnity Agreement

ARC PNSCRPA001, LLC, a Delaware limited liability company

By    Global Net Lease Operating Partnership, L.P.
Its sole member

By:    Global Net Lease, Inc.
Its general partner

By: /s/ Jesse Galloway
Name: Jesse Galloway
Title: Authorized Signatory

ARC CJHSNTX002, LLC, a Delaware limited liability company

By    Global Net Lease Operating Partnership, L.P.
Its sole member

By:    Global Net Lease, Inc.
Its general partner

By: /s/ Jesse Galloway
Name: Jesse Galloway
Title: Authorized Signatory

ARC CJHSNTX001, LLC, a Delaware limited liability company

By    Global Net Lease Operating Partnership, L.P.
Its sole member

By:    Global Net Lease, Inc.
Its general partner

By: /s/ Jesse Galloway
Name: Jesse Galloway
Title: Authorized Signatory

Exhibit 10.7

SCHEDULE I
BORROWER

		
	1.
	ARC GEGRDMI001, LLC, a Delaware limited liability company

		
	2.
	ARC GSIFLMN001, LLC, a Delaware limited liability company

		
	3.
	ARC MKMDNNJ001, LLC, a Delaware limited liability company

		
	4.
	ARC SZPTNNJ001, LLC, a Delaware limited liability company

		
	5.
	ARC CSVBTMI001, LLC, a Delaware limited liability company

		
	6.
	ARG FEMRGWV001, LLC, a Delaware limited liability company

		
	7.
	ARC NNMFBTN001, LLC, a Delaware limited liability company

		
	8.
	ARC FEBHMNY001, LLC, a Delaware limited liability company

		
	9.
	ARC LPSBDIN001, LLC, a Delaware limited liability company

		
	10.
	ARC PNSCRPA001, LLC, a Delaware limited liability company

		
	11.
	ARC CJHSNTX002, LLC, a Delaware limited liability company

		
	12.
	ARC CJHSNTX001, LLC, a Delaware limited liability company

Exhibit 10.7

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