Document:

Amended and Restated Deed of Trust

 Exhibit 10.12 
 RECORDING REQUESTED BY 
 AND WHEN 
 RECORDED RETURN TO:

 First American Title Insurance Company 
 National Commercial
Services 
 1801 K Street, N.W., Suite 200-K 
 Washington, D.C.
20006 
 Attn: Richard L. Whelton, Jr. 
 THIS AMENDED AND
RESTATED DEED OF TRUST IS A REFINANCE OF THE DEED OF TRUST RECORDED OCTOBER 28, 2002 AS INSTRUMENT NO. 124500, AS SUPPLEMENTED BY DOCUMENT RECORDED NOVEMBER 24, 2003 AS INSTRUMENT NO. 165321, ON WHICH RECORDATION TAX HAS BEEN PREVIOUSLY PAID.
PURSUANT TO THE PROVISIONS OF SECTION 42-1103(a)(3) OF THE DISTRICT OF COLUMBIA CODE, THIS DEED OF TRUST IS EXEMPT FROM RECORDATION TAX TO THE EXTENT OF $47,607,000.00. 
 AMENDED AND RESTATED DEED OF TRUST, SECURITY AGREEMENT AND FIXTURE FILING 
 BY 1225 EYE STREET, N.W.
ASSOCIATES LLC, a Delaware limited liability company 
 (successor by merger to 1215 Eye Street, N.W. Associates Limited Partnership),

 as Grantor 
 TO RICHARD L.
WHELTON, JR., 
 as Trustee 
 for
the benefit of 
 METROPOLITAN LIFE INSURANCE COMPANY, a New York corporation, 
 as Beneficiary 
 November 1, 2007 

 TABLE OF CONTENTS 
  

					
	ARTICLE 1 GRANT OF SECURITY	  	3
	 1.1
	  	REAL PROPERTY GRANT	  	3
	 1.2
	  	PERSONAL PROPERTY GRANT	  	4
	 1.3
	  	CONDITIONS TO GRANT	  	5
	 1.4
	  	ADDITIONAL ADVANCES	  	5
		
	ARTICLE 2 GRANTOR COVENANTS	  	5
	 2.1
	  	DUE AUTHORIZATION, EXECUTION, AND DELIVERY	  	5
	 2.2
	  	PERFORMANCE BY GRANTOR	  	6
	 2.3
	  	WARRANTY OF TITLE	  	6
	 2.4
	  	TAXES, LIENS AND OTHER CHARGES	  	6
	 2.5
	  	ESCROW DEPOSITS	  	7
	 2.6
	  	CARE AND USE OF THE PROPERTY	  	8
	 2.7
	  	COLLATERAL SECURITY INSTRUMENTS	  	10
	 2.8
	  	SUITS AND OTHER ACTS TO PROTECT THE PROPERTY	  	10
	 2.9
	  	LIENS AND ENCUMBRANCES	  	10
		
	ARTICLE 3 INSURANCE	  	10
	 3.1
	  	REQUIRED INSURANCE AND TERMS OF INSURANCE POLICIES	  	10
	 3.2
	  	ADJUSTMENT OF CLAIMS	  	14
	 3.3
	  	ASSIGNMENT TO BENEFICIARY	  	14
		
	ARTICLE 4 BOOKS, RECORDS AND ACCOUNTS	  	14
	 4.1
	  	BOOKS AND RECORDS	  	14
	 4.2
	  	ADDITIONAL MATTERS	  	15
		
	ARTICLE 5 LEASES AND OTHER AGREEMENTS AFFECTING THE PROPERTY	  	16
	 5.1
	  	GRANTOR’S REPRESENTATIONS AND WARRANTIES	  	16
	 5.2
	  	ASSIGNMENT OF LEASES	  	16
	 5.3
	  	PERFORMANCE OF OBLIGATIONS	  	16
	 5.4
	  	SUBORDINATE LEASES	  	17
	 5.5
	  	MANAGEMENT FEES	  	18
		
	ARTICLE 6 ENVIRONMENTAL HAZARDS	  	19
	 6.1
	  	REPRESENTATIONS AND WARRANTIES	  	19

					
	 6.2
	  	REMEDIAL WORK	  	19
	 6.3
	  	ENVIRONMENTAL SITE ASSESSMENT	  	20
	 6.4
	  	UNSECURED OBLIGATIONS	  	20
	 6.5
	  	HAZARDOUS MATERIALS	  	20
	 6.6
	  	REQUIREMENTS OF ENVIRONMENTAL LAWS	  	21
		
	ARTICLE 7 CASUALTY, CONDEMNATION AND RESTORATION	  	21
	 7.1
	  	GRANTOR’S REPRESENTATIONS	  	21
	 7.2
	  	RESTORATION	  	22
	 7.3
	  	CONDEMNATION	  	23
	 7.4
	  	REQUIREMENTS FOR RESTORATION	  	24
		
	ARTICLE 8 REPRESENTATIONS OF GRANTOR	  	25
	 8.1
	  	ERISA	  	25
	 8.2
	  	NON-RELATIONSHIP	  	26
	 8.3
	  	NO ADVERSE CHANGE	  	26
	 8.4
	  	FOREIGN INVESTOR	  	26
	 8.5
	  	US PATRIOT ACT	  	26
		
	ARTICLE 9 EXCULPATION AND LIABILITY	  	27
	 9.1
	  	LIABILITY OF GRANTOR	  	27
		
	ARTICLE 10 CHANGE IN OWNERSHIP, CONVEYANCE OF PROPERTY	  	28
	 10.1
	  	CONVEYANCE OF PROPERTY, CHANGE IN OWNERSHIP AND COMPOSITION	  	28
	 10.2
	  	PROHIBITION ON SUBORDINATE FINANCING	  	34
	 10.3
	  	RESTRICTIONS ON ADDITIONAL OBLIGATIONS	  	34
	 10.4
	  	STATEMENTS REGARDING OWNERSHIP	  	34
		
	ARTICLE 11 DEFAULTS AND REMEDIES	  	35
	 11.1
	  	EVENTS OF DEFAULT	  	35
	 11.2
	  	REMEDIES UPON DEFAULT	  	36
	 11.3
	  	APPLICATION OF PROCEEDS OF SALE	  	37
	 11.4
	  	WAIVER OF JURY TRIAL	  	37
	 11.5
	  	BENEFICIARY’S RIGHT TO PERFORM GRANTOR’S OBLIGATIONS	  	37
	 11.6
	  	BENEFICIARY REIMBURSEMENT	  	37

  

 ii 

					
	 11.7
	  	FEES AND EXPENSES	  	38
	 11.8
	  	WAIVER OF CONSEQUENTIAL DAMAGES	  	38
	 11.9
	  	INDEMNIFICATION OF TRUSTEE	  	38
	 11.10
	  	ACTIONS BY TRUSTEE	  	38
	 11.11
	  	SUBSTITUTION OF TRUSTEE	  	38
	 11.12
	  	NO REINSTATEMENT	  	38
	 11.13
	  	WAIVER RELATING TO REMEDIES	  	39
		
	ARTICLE 12 GRANTOR AGREEMENTS AND FURTHER ASSURANCES	  	39
	 12.1
	  	PARTICIPATION AND SALE OF LOAN	  	39
	 12.2
	  	REPLACEMENT OF NOTE	  	39
	 12.3
	  	GRANTOR’S ESTOPPEL	  	40
	 12.4
	  	FURTHER ASSURANCES	  	40
	 12.5
	  	SUBROGATION	  	40
		
	ARTICLE 13 SECURITY AGREEMENT	  	40
	 13.1
	  	SECURITY AGREEMENT	  	40
	 13.2
	  	REPRESENTATIONS AND WARRANTIES	  	41
	 13.3
	  	CHARACTERIZATION OF PROPERTY	  	42
	 13.4
	  	PROTECTION AGAINST PURCHASE MONEY SECURITY INTERESTS	  	42
		
	ARTICLE 14 RELATED LOAN PROVISIONS	  	42
	 14.1
	  	RELATED LOAN	  	42
	 14.2
	  	LIMITED RECOURSE GUARANTY	  	43
	 14.3
	  	WAIVERS	  	44
	 14.4
	  	RELEASES	  	45
	 14.5
	  	NO ELECTION	  	45
	 14.6
	  	INDEFEASIBLE PAYMENT	  	45
	 14.7
	  	FINANCIAL CONDITION OF GRANTOR	  	46
	 14.8
	  	SUBORDINATION	  	46
		
	ARTICLE 15 MISCELLANEOUS COVENANTS	  	47
	 15.1
	  	NO WAIVER	  	47
	 15.2
	  	NOTICES	  	47
	 15.3
	  	HEIRS AND ASSIGNS; TERMINOLOGY	  	47

  

 iii 

					
	 15.4
	  	SEVERABILITY	  	47
	 15.5
	  	APPLICABLE LAW	  	48
	 15.6
	  	CAPTIONS	  	48
	 15.7
	  	TIME OF THE ESSENCE	  	48
	 15.8
	  	NO MERGER	  	48
	 15.9
	  	NO MODIFICATIONS	  	48
	 15.10
	  	COUNTERPARTS	  	48

  

 iv 

 AMENDED AND RESTATED DEED OF TRUST, SECURITY AGREEMENT AND FIXTURE FILING 
 DEFINED TERMS 
 Execution Date: November 1, 2007

 Note: The Amended and Restated Promissory Note dated as of the Execution Date made by Grantor to the order of Beneficiary in the principal amount of
$57,600,000.00. 
 Beneficiary & Address: 
 Metropolitan Life Insurance Company, a New York corporation 
 10 Park Avenue, Third Floor 
 Morristown, New Jersey 07962 
 Attention: Senior Vice President, Real Estate
Investments 
 With a copy to: 
 Metropolitan Life
Insurance Company 
 10 Park Avenue, Third Floor 
 Morristown, New
Jersey 07962 
 Attention: Law Department, Chief Counsel, Real Estate Investments 
 Grantor & Address (Chief Executive Office): 
 1225 Eye Street, N.W. Associates LLC, a Delaware limited
liability company 
 (successor by merger to 1225 Eye Street, N.W. Associates Limited Partnership) 
 c/o Piedmont Operating Partnership, L.P. 
 6200 The Corners Parkway, Suite 500

 Norcross, Georgia 30092 
 Attention: Executive Vice President,
Capital Markets 
 With a copy to: 
 Troutman Sanders LLP

 600 Peachtree Street, NE 
 Suite 5200 
 Atlanta, Georgia 30308-2216 
 Attention: James W. Addison, Esq. 
 Trustee & Address: 
 Richard L. Whelton, Jr. 
 c/o First American Title Insurance Company 
 National Commercial Services

 1801 K Street, N.W., Suite 200-K 
 Washington, D.C. 20006

 (as substituted trustee pursuant to Deed of Appointment of Substitute Trustee recorded November     , 2007 as Instrument No.
                    ) 
  

 1 

 Liable Parties & Address: 
 Piedmont Operating Partnership, L.P., a Delaware limited partnership 
 6200 The Corners Parkway, Suite 500 
 Norcross, Georgia 30092 
 Attention: Executive Vice President, Capital Markets

 County and State (the “State”) in which the Property is located: Washington, District of Columbia 
 Use: Class A office building with related first-class retail facilities and an underground parking garage. 
 Insurance: Commercial General Liability: Required Liability Limit: $50,000,000.00 
 Address for Insurance Notification: 
 Metropolitan Life Insurance Company, 
 its affiliates and/or successors and assigns 
 10 Park Avenue 
 Morristown, New Jersey 07962 
 Attention: Real Estate Investments Insurance
Manager 
 Loan Documents: The Note, this Deed of Trust and any other documents related to the Note and/or this Deed of Trust (except the Indemnity
Agreement and the Guaranty) and all renewals, amendments, modifications, restatements and extensions of these documents. 
 Indemnity Agreement:
Amended and Restated Unsecured Indemnity Agreement dated as of the Execution Date and executed by Grantor and Liable Parties in favor of Beneficiary. 
 Guaranty: Amended and Restated Guaranty of Recourse Obligations dated as of the Execution Date and executed by Liable Parties. 
 The
Indemnity Agreement and the Guaranty are not Loan Documents and shall survive repayment of the Loan or other termination of the Loan Documents. 
 THIS AMENDED AND RESTATED DEED OF TRUST, SECURITY AGREEMENT AND FIXTURE FILING (this “Deed of Trust”) is entered into as of the Execution Date by Grantor to Trustee for the benefit of Beneficiary with reference to the
following Recitals: 
 RECITALS 
 A. This Deed of Trust secures: (1) the payment of the indebtedness evidenced by the Note with interest at the rates set forth in the Note, together with all renewals, modifications, consolidations and extensions of the Note, all
additional advances or fundings made by Beneficiary, and any other amounts required to be paid by Grantor under any of the Loan Documents (collectively, the “Secured Indebtedness” and sometimes referred to as the “Loan”);
(2) the full performance by Grantor of all of the terms, covenants and obligations set forth in any of the Loan Documents; and (3) the payment and full performance by Related Borrower of the 1201 Guaranteed Obligations, as such terms are
defined in Section 14.1. The terms “Related Note,” “Related Deed of Trust,” “Related Loan Documents” and similar terms are also defined in Section 14.1. 
  

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 B. Grantor makes the following covenants and agreements for the benefit of Beneficiary or any party
designated by Beneficiary, including any prospective purchaser of the Loan Documents or participant in the Loan, and their respective officers, employees, agents, attorneys, representatives and contractors (all of which are collectively referred to
as “Beneficiary”) and Trustee. 
 NOW, THEREFORE, IN CONSIDERATION of the Recitals and for other good and valuable consideration,
the receipt and sufficiency of which are acknowledged, Grantor agrees as follows: 
 ARTICLE 1 
 GRANT OF SECURITY 
 1.1 REAL
PROPERTY GRANT. In order to secure the Secured Indebtedness, the full performance by Grantor of all of the terms, covenants and obligations set forth in any of the Loan Documents, and the 1201 Guaranteed Obligations, Grantor irrevocably sells,
transfers, grants, conveys, assigns and warrants to Trustee, its successors and assigns, in trust, with power of sale and right of entry and possession, all of Grantor’s present and future estate, right, title and interest in and to the
following which are collectively referred to as the “Real Property”: 
 (a) That certain real property located in the State which is
more particularly described in Exhibit A attached to this Deed of Trust or any portion of the real property; all easements, rights-of-way, gaps, strips and gores of land; streets and alleys; sewers and water rights; privileges, licenses,
tenements, and appurtenances appertaining to the real property, and the reversion(s), remainder(s), and claims of Grantor with respect to these items, and the benefits of any existing or future conditions, covenants and restrictions affecting the
real property (collectively, the “Land”); 
 (b) All things now or hereafter affixed to or placed on the Land, including all
buildings, structures and improvements, all fixtures and all machinery, elevators, boilers, building service equipment (including, without limitation, all equipment for the generation or distribution of air, water, heat, electricity, light, fuel or
for ventilating or air conditioning purposes or for sanitary or drainage purposes or for the removal of dust, refuse or garbage), partitions, appliances, furniture, furnishings, building materials, supplies, computers and software, window coverings
and floor coverings, lobby furnishings, and other property now or in the future attached, or installed in the improvements and all replacements, repairs, additions, or substitutions to these items (collectively, the “Improvements”);

 (c) All present and future income, rents, revenue, profits, proceeds, accounts receivables and other benefits from the Land and/or
Improvements and all deposits made with respect to the Land and/or Improvements, including, but not limited to, any security given to 

  

 3 

 
utility companies by Grantor, any advance payment of real estate taxes or assessments, or insurance premiums made by Grantor and all claims or demands
relating to such deposits and other security, including claims for refunds of tax payments or assessments, and all insurance proceeds payable to Grantor in connection with the Land and/or Improvements whether or not such insurance coverage is
specifically required under the terms of this Deed of Trust (“Insurance Proceeds”) (all of the items set forth in this paragraph are referred to collectively as “Rents and Profits”); 
 (d) All damages, payments and revenue of every kind that Grantor may be entitled to receive, from any person owning or acquiring a right to the oil, gas
or mineral rights and reservations of the Land; 
 (e) All proceeds and claims arising on account of any damage to, or Condemnation (as
hereinafter defined) of any part of the Land and/or Improvements, and all causes of action and recoveries for any diminution in the value of the Land and/or Improvements; 
 (f) All licenses, contracts, management agreements, guaranties, warranties, franchise agreements, permits, or certificates relating to the ownership, use, operation or maintenance of the Land and/or Improvements; and

 (g) All names by which the Land and/or Improvements may be operated or known, and all rights to carry on business under those names, and
all trademarks, trade names, and goodwill relating to the Land and/or Improvements. 
 TO HAVE AND TO HOLD the Real Property, unto Trustee,
its successors and assigns, in trust, for the benefit of Beneficiary, its successors and assigns, forever subject to the terms, covenants and conditions of this Deed of Trust. 
 1.2 PERSONAL PROPERTY GRANT. Grantor irrevocably sells, transfers, grants, conveys, assigns and warrants to Beneficiary, its successors and
assigns, a security interest in Grantor’s interest in the following personal property which is collectively referred to as the “Personal Property”: 
 (a) Any portion of the Real Property which may be personal property, and all other personal property, whether now existing or acquired in the future which is attached to, appurtenant to, or used in the construction or
operation of, or in connection with, the Real Property; 
 (b) All rights to the use of water, including water rights appurtenant to the Real
Property, pumping plants, ditches for irrigation, all water stock or other evidence of ownership of any part of the Real Property that is owned by Grantor in common with others and all documents of membership in any owner’s association or
similar group; 
 (c) All plans and specifications prepared for construction of the Improvements; and all contracts and agreements of Grantor
relating to the plans and specifications or to the construction of the Improvements; 
  

 4 

 (d) All equipment, machinery, fixtures, goods, accounts, general intangibles, promissory notes, letter of
credit rights, investment property, commercial tort claims, deposit accounts, documents, instruments and chattel paper and all substitutions, replacements of, and additions to, any of these items; 
 (e) All sales agreements, deposits, escrow agreements, other documents and agreements entered into with respect to the sale of any part of the Real
Property, and all proceeds of the sale; and 
 (f) All proceeds from the voluntary or involuntary disposition or claim respecting any of the
foregoing items (including judgments, condemnation awards or otherwise). 
 All of the Real Property and the Personal Property are
collectively referred to as the “Property.” 
 1.3 CONDITIONS TO GRANT. If Grantor shall pay to Beneficiary the Secured
Indebtedness, at the times and in the manner stipulated in the Loan Documents, and if Grantor shall perform and observe each of the terms, covenants and agreements set forth in the Loan Documents, and provided that there does not exist any Event of
Default under the Related Loan Documents (as “Event of Default” is defined in the Related Deed of Trust) nor any event which, with notice and/or the opportunity to cure would constitute an Event of Default thereunder, then this Deed of
Trust and all the rights granted by this Deed of Trust shall be released by Trustee and/or Beneficiary in accordance with the laws of the State. 
 1.4 ADDITIONAL ADVANCES. Until this Deed of Trust is released of record, Beneficiary may make additional loans, advances, readvances, future advances and other financial accommodations pursuant to the terms of the Note or other Loan
Documents from time to time, but the maximum unpaid balance outstanding at any one time shall not exceed the principal amount of the Note set forth in the “Defined Terms” section of this Deed of Trust, plus interest thereon, and plus any
advances made for taxes, liens, assessments, insurance premiums, costs, and other obligations, including interest thereon, undertaken by Beneficiary hereunder or under the other Loan Documents, and all such advances, future advances and readvances
shall become part of the indebtedness secured by this Deed of Trust with the same priority from the date of recordation of this Deed of Trust and shall be deemed evidenced by the Note, this Deed of Trust and the other Loan Documents. 
 ARTICLE 2 
 GRANTOR COVENANTS 

 2.1 DUE AUTHORIZATION, EXECUTION, AND DELIVERY. 
 (a) Grantor represents and warrants that the execution of the Loan Documents and the Indemnity Agreement has been duly authorized and there is no provision in the organizational documents of Grantor requiring further
consent for such action by any other entity or person. 
 (b) Grantor represents and warrants that it is duly organized, validly existing and
is in good standing under the laws of the state of its formation and in the State, that its exact 

  

 5 

 
legal name, the state of its formation and the state of its chief executive office (or place of business, if it has only one place of business) are correctly
stated in the Defined Terms, and that it has all necessary licenses, authorizations, registrations, permits and/or approvals to own its properties and to carry on its business as presently conducted. 
 (c) Grantor represents and warrants that the execution, delivery and performance of the Loan Documents and the Indemnity Agreement will not result in
Grantor being in default under any provision of its organizational documents or of any deed of trust, mortgage, lease, credit or other agreement to which it is a party or which affects it or the Property. 
 (d) Grantor represents and warrants that the Loan Documents and the Indemnity Agreement have been duly authorized, executed and delivered by Grantor and
constitute valid and binding obligations of Grantor which are enforceable in accordance with their terms. 
 (e) Grantor agrees that it will
not change the state where it or its chief executive office (or place of business, if it has only one place of business) is located, or change its name, without providing at least thirty (30) days’ prior written notice to Beneficiary.

 2.2 PERFORMANCE BY GRANTOR. Grantor shall pay the Secured Indebtedness to Beneficiary and shall keep and perform each and every
other obligation, covenant and agreement of the Loan Documents. 
 2.3 WARRANTY OF TITLE. 
 (a) Grantor represents and warrants that it holds marketable and indefeasible fee simple absolute title to the Real Property, and that it has the right
and is lawfully authorized to sell, convey or encumber the Property subject only to those specific exceptions to title recorded in the real estate records of the State and contained in Schedule B of the title insurance policy or policies which have
been approved by Beneficiary (the “Permitted Exceptions”). The Property is free from all due and unpaid taxes, assessments and mechanics’ and materialmen’s liens. 
 (b) Grantor further covenants to warrant and forever defend the Real Property unto Beneficiary and Trustee, and their respective heirs, devisees,
personal representatives and assigns, from and against the claims and demands of all persons whomsoever. 
 2.4 TAXES, LIENS AND OTHER
CHARGES. 
 (a) Unless otherwise paid to Beneficiary as provided in Section 2.5, Grantor shall pay all real estate and other taxes
and assessments which may be payable, assessed, levied, imposed upon or become a lien on or against any portion of the Property (all of the foregoing items are collectively referred to as the “Imposition(s)”). The Impositions shall be paid
not later than ten (10) days before the dates on which the particular Imposition would become delinquent and Grantor shall produce to Beneficiary receipts of the imposing authority, or other evidence reasonably satisfactory to Beneficiary,
evidencing the payment of the Imposition in full. Grantor 

  

 6 

 
may elect by appropriate legal action at the sole expense of Grantor to contest any Imposition, and Grantor shall not be required to pay the Imposition
provided that (i) if, in the reasonable opinion of Beneficiary, as a result of such contest the Property or any interest therein might be subject to the imposition of any lien or encumbrance, Grantor shall first deposit cash with Beneficiary as
a reserve in an amount which Beneficiary reasonably determines is sufficient to pay the Imposition plus all fines, interest, penalties and costs which may become due pending the determination of the contest, (ii) the contest operates to prevent
enforcement or collection of the Imposition, or the sale or forfeiture of, the Property, and is prosecuted with due diligence and continuity, and (iii) Beneficiary will not, by virtue of such permitted contest, be exposed to any risk of any
civil liability for which Grantor has not furnished additional security as provided in clause (i) above, or to any risk of criminal liability. Upon termination of any proceeding or contest, Grantor shall pay the amount of the Imposition as
finally determined in the proceeding or contest. Provided that there is not then an Event of Default (as defined in Section 11.1), the monies which have been deposited with Beneficiary pursuant to this Section shall be applied toward such
payment and the excess, if any, shall be returned to Grantor. 
 (b) In the event of the passage, after the Execution Date, of any law which
deducts from the value of the Property, for the purposes of taxation, any lien or security interest encumbering the Property, or changing in any way the existing laws regarding the taxation of mortgages, deeds of trust and/or security agreements or
debts secured by these instruments, or changing the manner for the collection of any such taxes, and the law has the effect of imposing payment of any Impositions upon Beneficiary, at Beneficiary’s option, the Secured Indebtedness shall
immediately become due and payable. Notwithstanding the preceding sentence, Beneficiary’s election to accelerate the Loan shall not be effective if (1) Grantor is permitted by law (including, without limitation, applicable interest rate
laws) to, and actually does, pay the Imposition or the increased portion of the Imposition and (2) Grantor agrees in writing to pay or reimburse Beneficiary in accordance with Section 11.6 for the payment of any such Imposition which
becomes payable at any time when the Loan is outstanding. 
 2.5 ESCROW DEPOSITS. Without limiting the effect of Section 2.4 and
Section 3.1, Grantor shall pay to Beneficiary monthly on the same date the monthly installment is payable under the Note, an amount equal to 1/12th of the amounts Beneficiary reasonably estimates are necessary to pay, on an annualized basis,
(1) all Impositions and (2) the premiums for the insurance policies required under this Deed of Trust (collectively the “Premiums”) until such time as Grantor has deposited an amount equal to the annual charges for these items
and on demand, from time to time, shall pay to Beneficiary any additional amounts necessary to pay the Premiums and Impositions. Grantor will furnish to Beneficiary bills for Impositions and Premiums thirty (30) days before Impositions become
delinquent and such Premiums become due for payment. No amounts paid as Impositions or Premiums shall be deemed to be trust funds and these funds may be commingled with the general funds of Beneficiary. Beneficiary shall not be required to pay
interest to Grantor on account of these funds. If an Event of Default occurs, Beneficiary shall have the right, at its election, to apply any amounts held under this Section 2.5 in reduction of the Secured Indebtedness, or in payment of the
Premiums or Impositions for which the amounts were deposited. However, with respect to deposits of Premiums, Grantor shall not be required to make these deposits unless (i) at any time Grantor fails to furnish to Beneficiary, not later than
thirty (30) days before the dates on which any Premiums would 

  

 7 

 
become delinquent, receipts for the payment of the Premiums, or (ii) Grantor fails to provide, not later than thirty (30) days prior to expiration
of any policy required under the Loan Documents, appropriate proof of issuance of a new policy which continues in force the insurance coverage of the expiring policy, or (iii) there is an Event of Default, or (iv) Grantor no longer owns
the Property, or (v) there has been a change in Grantor or in the general partners, shareholders or members of Grantor or in the constituent general partners or controlling shareholders or controlling members of any of the entities comprising
Grantor (other than transfers permitted under Section 10.1). In the event any of these events occur, Beneficiary reserves the right to require deposits of Premiums at any time in its absolute discretion notwithstanding the fact that the default
may be cured, or that the transfer or change be approved by Beneficiary. In addition, with respect to deposits of Impositions, Grantor shall not be required to make these deposits unless (i) there is an Event of Default, or (ii) Grantor no
longer owns the Property, or (iii) there has been a change in Grantor or in the general partners, shareholders or members of Grantor or in the constituent general partners or controlling shareholders or controlling members of any of the
entities comprising Grantor (other than transfers permitted under Section 10.1). In the event any of these events occur, Beneficiary reserves the right to require deposits of Impositions at any time in its absolute discretion notwithstanding
the fact that the default may be cured, or that the transfer or change be approved by Beneficiary. 
 2.6 CARE AND USE OF THE
PROPERTY. 
 (a) Grantor represents and warrants to and agrees with Beneficiary as follows: 
 (i) All authorizations, licenses, including without limitation liquor licenses, if any, and operating permits required to allow the Improvements to be
operated for the Use have been obtained, paid for and are in full force and effect. 
 (ii) The Improvements and their Use comply with (and
no notices of violation have been received in connection with) all Requirements (as defined in this Section) and Grantor shall at all times comply with all present or future Requirements affecting or relating to the Property and/or the Use. Grantor
shall furnish Beneficiary, on request, proof of compliance with the Requirements. Grantor shall not use or permit the use of the Property, or any part thereof, for any illegal purpose. “Requirements” shall mean all laws, ordinances,
orders, covenants, conditions and restrictions and other requirements relating to land and building design and construction, use and maintenance, that may now or hereafter pertain to or affect the Property or any part of the Property or the Use,
including, without limitation, planning, zoning, subdivision, environmental, air quality, flood hazard, fire safety, handicapped facilities, building, health, fire, traffic, safety, wetlands, coastal and other governmental or regulatory rules, laws,
ordinances, statutes, codes and requirements applicable to the Property, including permits, licenses and/or certificates that may be necessary from time to time to comply with any of the these requirements. 
 (iii) Grantor has complied with and will continue to comply with all requirements of all instruments and agreements affecting the Property, whether or
not of record, including without limitation all covenants and agreements by and between Grantor and any governmental or regulatory agency pertaining to the development, use or operation of the 

  

 8 

 
Property. Grantor, at its sole cost and expense, shall keep the Property in good order, condition, and repair, and make all necessary structural and
non-structural, ordinary and extraordinary repairs to the Property. 
 (iv) Grantor shall abstain from, and not permit, the commission of
waste to the Property and shall not remove or alter in any substantial manner, the structure or character of any Improvements without the prior written consent of Beneficiary. 
 (v) The zoning approval for the Property is not dependent upon the ownership or use of any property which is not encumbered by this Deed of Trust.

 (vi) Construction of the Improvements on the Property is complete. 
 (vii) The Property is in good repair and condition, free of any material damage. 
 (b) Beneficiary shall have the right, at any time and from time to time during normal business hours, to enter the Property in order to ascertain
Grantor’s compliance with the Loan Documents, to examine the condition of the Property, to perform an appraisal, to undertake surveying or engineering work, and to inspect premises occupied by tenants. Grantor shall cooperate with Beneficiary
performing these inspections. Provided that any such inspections are reasonably required, Grantor shall pay all costs incurred by Beneficiary in connection with any such inspections. 
 (c) Grantor shall use, or cause to be used, the Property solely for the Use. Grantor shall not use, or permit the use of, the Property for any other use
without the prior written consent of Beneficiary. To the extent the Property is used as a residential apartment complex, (i) Grantor shall not file or record a declaration of condominium, master deed of trust or mortgage or any other similar
document evidencing the imposition of a so-called “condominium regime” whether superior or subordinate to this Deed of Trust and (ii) Grantor shall not permit any part of the Property to be converted to, or operated as, a
“cooperative apartment house” whereby the tenants or occupants participate in the ownership, management or control of any part of the Property. 
 (d) Without the prior written consent of Beneficiary, Grantor shall not (i) initiate or acquiesce in a change in the zoning classification of and/or restrictive covenants affecting the Property or seek any
variance under existing zoning ordinances, (ii) take any action out of the ordinary course of operating and leasing the Property which may result in the Use becoming a non-conforming use under applicable zoning ordinances (except to the extent
the Use may be such a legally permitted non-conforming use on the date hereof), or (iii) subject the Property to restrictive covenants. 
 (e) Grantor will faithfully perform each and every covenant to be performed by Grantor under any lien or encumbrance affecting the Property including, without limiting the generality hereof, mortgages, deeds of trust, leases, easements,
declarations or covenants, conditions and/or restrictions and other agreements which affect the Property, in law or in equity. 
  

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 2.7 COLLATERAL SECURITY INSTRUMENTS. Grantor covenants and agrees that if Beneficiary at any time
holds additional security for any obligations secured by this Deed of Trust, it may enforce its rights and remedies with respect to the security, at its option, either before, concurrently or after a sale of the Property is made pursuant to the
terms of this Deed of Trust. Beneficiary may apply the proceeds of the additional security to the Secured Indebtedness without affecting or waiving any right to any other security, including the security under this Deed of Trust, and without waiving
any breach or default of Grantor under this Deed of Trust or any other Loan Document. 
 2.8 SUITS AND OTHER ACTS TO PROTECT THE
PROPERTY. 
 (a) Grantor shall immediately notify Beneficiary of the commencement, or receipt of notice, of any action or proceeding or
other material matter or claim affecting the Property and/or the interest of Beneficiary under the Loan Documents (collectively, “Actions”). Grantor shall appear in and defend any Actions. 
 (b) Beneficiary shall have the right, at the cost and expense of Grantor, to institute, maintain and participate in Actions or other proceedings and take
such other action, as it may deem appropriate in the good faith exercise of its discretion to preserve or protect the Property and/or the interest of Beneficiary under the Loan Documents. Any money paid by Beneficiary under this Section shall be
reimbursed to Beneficiary in accordance with Section 11.6 hereof. 
 2.9 LIENS AND ENCUMBRANCES. Without the prior written
consent of Beneficiary, to be exercised in Beneficiary’s sole and absolute discretion, other than the Permitted Exceptions, Grantor shall not create, place or allow to remain any lien or encumbrance on the Property, including deeds of trust,
mortgages, security interests, conditional sales, mechanic’s liens, tax liens or assessment liens regardless of whether or not they are subordinate to the lien created by this Deed of Trust (collectively, “Liens and Encumbrances”). If
any Liens and Encumbrances (other than Permitted Exceptions) are recorded against the Property or any part of the Property, within thirty (30) days after receipt of notice of their existence Grantor shall either obtain a discharge and release
of such Liens and Encumbrances, or shall provide a bond or other security with respect thereto in form, scope, and amount satisfactory to Beneficiary in its sole discretion. 
 ARTICLE 3 
 INSURANCE 
 3.1 REQUIRED INSURANCE AND TERMS OF INSURANCE POLICIES. 
 (a) During the term of this Deed of Trust, Grantor at its sole cost and expense must provide insurance policies and certificates of insurance for types of insurance described below all of which must be satisfactory to
Beneficiary as to form of policy, amounts, deductibles, sublimits, types of coverage, exclusions and the companies underwriting these coverages. In no event shall such policies be terminated or otherwise allowed to lapse. Grantor shall be 

  

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responsible for its own deductibles. Grantor shall also pay for any insurance, or any increase of policy limits, not described in this Deed of Trust which
Grantor requires for its own protection or for compliance with government statutes. Grantor’s insurance shall be primary and without contribution from any insurance procured by Beneficiary including, without limitation, any insurance obtained
by Beneficiary pursuant to Section 3.1(d). 
 Policies of insurance shall be delivered to Beneficiary in accordance with the following
requirements: 
 (i) Property insurance on the Improvements and the Personal Property insuring against any peril now or hereafter included
within the classification “All Risk” or “Special Perils,” in each case (A) in an amount equal to 100% of the “Full Replacement Cost” (as hereinafter defined) of the Improvements and Personal Property with a waiver
of depreciation and with a Replacement Cost Endorsement; (B) containing an agreed amount endorsement with respect to the Improvements and Personal Property waiving all co-insurance provisions; (C) providing for no deductible in excess of
$250,000.00 (with the exception of windstorms, which may be subject to a deductible not to exceed 5% of the full replacement cost); and (D) containing Ordinance or Law Coverage, Operation of Building Laws, Demolition Costs and Increased Cost of
Construction in an amount reasonably required by Beneficiary or if any of the Improvements or the use of the Property constitute non-conforming structures then in the amount of 100% of the Full Replacement Cost. The Full Replacement Cost shall be
determined from time to time by an appraiser or contractor designated and paid by Grantor and approved by Beneficiary or by an engineer or appraiser in the regular employ of the insurer. The “Full Replacement Cost” for purposes of this
Article 3 shall mean the estimated total cost of construction required to replace the Improvements with a substitute of like utility, and using modern materials and current standards, design and layout. For purposes of calculating Full Replacement
Cost, direct (hard) costs shall include, without limitation, labor, materials, supervision and contractor’s profit and overhead and indirect (soft) costs shall include, without limitation, fees for architect’s plans and specifications,
construction financing costs, permits, sales taxes, insurance and other costs included in the Marshall Valuation Service published by Marshall & Swifts. 
 (ii) Commercial General Liability insurance against claims for personal injury, bodily injury, death or property damage occurring upon, in or about the Property, such insurance (A) to be on the so-called
“occurrence” form with a combined single limit of not less than the amount set forth in the Defined Terms; (B) to continue at not less than this limit until required to be changed by Beneficiary in writing by reason of changed
economic conditions making such protection inadequate; and (C) to cover at least the following hazards: (a) premises and operations; (b) products and completed operations on an “if any” basis; (c) independent
contractors; (d) blanket contractual liability for all written and oral contracts; and (e) contractual liability covering the indemnities contained in this Deed of Trust to the extent available. 
 (iii) Business Income insurance in an amount sufficient to prevent Grantor from becoming a co-insurer within the terms of the applicable policies, and
sufficient to recover one (1) year’s “Business Income” (as hereinafter defined) and with an Extended Period of Indemnity of 12 months. The amount of such insurance shall be increased from time to time 

  

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during the term of this Deed of Trust as and when new Leases and renewal Leases are entered into and rents payable increase or the annual estimate of gross
income from occupancy of the Property increases to reflect such rental increases. “Business Income” shall mean the sum of (A) the total anticipated gross income from occupancy of the Property, (B) the amount of all charges (such
as, but not limited to, operating expenses, insurance premiums and taxes) which are the obligation of tenants or occupants to Grantor, (C) the fair market rental value of any portion of the Property which is occupied by Grantor, and
(D) any other amounts payable to Grantor or to any affiliate of Grantor pursuant to Leases. 
 (iv) If Beneficiary determines at any
time that any part of the Property is located in an area identified on a Flood Hazard Boundary Map or Flood Insurance Rate Map issued by the Federal Emergency Management Agency as having special flood hazards and flood insurance has been made
available, Grantor will maintain a flood insurance policy meeting the requirements of the current guidelines of the Federal Insurance Administration with a generally acceptable insurance carrier, in an amount not less than the lesser of
(A) “Full Replacement Cost” or (B) the maximum amount of insurance which is available under the National Flood Insurance Act of 1968, the Flood Disaster Protection Act of 1973 or the National Flood Insurance Reform Act of 1994,
as amended. 
 (v) During the period of any construction or renovation or alteration of the Improvements, a so-called “Builder’s
All Risk” insurance policy in non-reporting form for any Improvements under construction, renovation or alteration including, without limitation, for demolition and increased cost of construction or renovation, in an amount equal to the Full
Replacement Cost of such Improvements and/or materials, or as otherwise approved by Beneficiary in the good faith exercise of its discretion, including an Occupancy endorsement and Workers’ Compensation Insurance covering all persons engaged in
the construction, renovation or alteration in an amount at least equal to the minimum required by statutory limits of the State. 
 (vi)
Workers’ Compensation insurance, subject to the statutory limits of the State, and employer’s liability insurance with a limit of at least $1,000,000 per accident and per disease per employee, and $1,000,000 for disease in the aggregate in
respect of any work or operations on or about the Property, or in connection with the Property or its operations (if applicable). 
 (vii)
Boiler & Machinery or Equipment Breakdown Coverage, insurance covering the major components of the central heating, air conditioning and ventilating systems, boilers, other pressure vessels, high pressure piping and machinery, elevators and
escalators, if any, and other similar equipment installed in the Improvements, in an amount equal to one hundred percent (100%) of the full replacement cost of all equipment installed in, on or at the Improvements. These policies shall insure
against physical damage to and loss of occupancy and use of the Improvements arising out of an accident or breakdown. 
 (viii) Insurance
from and against all losses, damages, costs, expenses, claims and liabilities related to or arising from acts of terrorism, of such types, in such amounts, with such deductibles, issued by such companies, and on such forms of insurance policies as
required by Beneficiary; provided, however, that as to the original Grantor (but not to any 

  

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successor grantor), Grantor shall purchase terrorism coverage with a limit equal to the lesser of (A) the Full Replacement Cost, and (B) that
terrorism coverage that could be purchased with a premium that is equal two hundred percent (200%) of the premium, as reasonably determined by Beneficiary, that Grantor would need to pay to obtain the insurance described in
Section 3.1(a)(i) for the Property excluding terrorism coverage. 
 (ix) Business Automobile Insurance with a combined single limit of
not less than $1,000,000 per occurrence for bodily injury and property damage arising out of the use of owned, non-owned, hired and/or leased automotive equipment when such equipment is operated by Grantor, Grantor’s employees or Grantor’s
agents in connection with the Property 
 (x) Such other insurance (A) as may from time to time be required by Beneficiary to replace
coverage against any hazard, which as of the date hereof is insured against under any of the insurance policies described in Subsections (a)(i) through (a)(ix) of this Section 3.1, and (B) as may from time to time be reasonably required by
Beneficiary against other insurable hazards, including, but not limited to, vandalism, earthquake, environmental, sinkhole and mine subsidence (provided that earthquake insurance, if required, shall be subject to a deductible of $100,000.00).

 (xi) Beneficiary’s interest must be clearly stated by endorsement in the insurance policies described in this Section 3.1 as
follows: 
 (A) The policies of insurance referenced in Subsections (a)(i), (a)(iii), (a)(iv), (a)(v) and (a)(vii) of this Section 3.1
shall identify Beneficiary under the New York Standard Mortgagee Clause (non-contributory) endorsement. 
 (B) The insurance policies
referenced in Subsections 3.1(a)(ii) and 3.1(a)(ix) shall name Beneficiary as an additional insured. 
 (C) The policies of insurance
referenced in Subsection 3.1(a)(viii) shall name Beneficiary in such form and manner as Beneficiary shall reasonably require. 
 (D) All of
the policies referred to in Section 3.1 shall provide for at least thirty (30) days’ written notice to Beneficiary in the event of policy cancellation and/or material change. 
 (b) All the insurance companies must be authorized to do business in New York State and in the State and be approved by Beneficiary. The insurance
companies must have a general policy rating of A- or better and a financial class of VIII or better by A.M. Best Company, Inc. and a claims paying ability of BBB or better according to Standard & Poors. So called “Cut-through”
endorsements shall not be permitted. Grantor shall deliver evidence satisfactory to Beneficiary of payment of premiums due under the insurance policies. 
 (c) Certified copies of the policies, and any endorsements, shall be made available for inspection by Beneficiary upon request. If Grantor fails to obtain or maintain insurance policies and coverages as required by
this Section 3.1 (“Required Insurance”) then 

  

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Beneficiary shall have the right but shall not have the obligation immediately to procure any Required Insurance at Grantor’s cost. If any required
insurance is provided using one or more blanket policies containing aggregate coverage limits, Beneficiary shall be commercially reasonable in approving such limits based upon the insured portfolio; provided, however, that Grantor shall provide
Beneficiary with a written copy of the schedule of locations applicable to each such aggregate coverage limit. 
 (d) Grantor shall be
required during the term of the Loan to continue to provide Beneficiary with original renewal policies or replacements of the insurance policies referenced in Section 3.1(a). Beneficiary may accept Certificates of Insurance evidencing insurance
policies referenced in Subsections (a)(ii), (a)(iv), and (a)(vi) of this Section 3.1 instead of requiring the actual policies. Beneficiary shall be provided with renewal Certificates of Insurance, or Binders, not less than fifteen
(15) days prior to each expiration. The failure of Grantor to maintain the insurance required under this Article 3 shall not constitute a waiver of Grantor’s obligation to fulfill these requirements. 
 (e) All binders, policies, endorsements, certificates, and cancellation notices are to be sent to the Beneficiary’s Address for Insurance
Notification as set forth in the Defined Terms until changed by notice from Beneficiary. 
 3.2 ADJUSTMENT OF CLAIMS. Grantor hereby
authorizes and empowers Beneficiary to settle, adjust or compromise any claims for damage to, or loss or destruction of, all or a portion of the Property, regardless of whether there are Insurance Proceeds available or whether any such Insurance
Proceeds are sufficient in amount to fully compensate for such damage, loss or destruction. Notwithstanding the foregoing, so long as no Event of Default (or any event which with notice and/or the opportunity to cure would constitute an Event of
Default) has occurred and is continuing, and so long as Beneficiary’s security shall not be impaired, (a) Grantor may negotiate and settle any such claims involving less than $750,000.00 without the consent of Beneficiary, and
(b) Grantor may negotiate for a settlement, adjustment or compromise of any such claims involving $750,000.00 or more provided that the final settlement shall be subject to the written approval of Beneficiary in its sole and absolute
discretion. 
 3.3 ASSIGNMENT TO BENEFICIARY. In the event of the foreclosure of this Deed of Trust or other transfer of the title to
the Property in extinguishment of the Secured Indebtedness, all right, title and interest of Grantor in and to any insurance policy, or premiums or payments in satisfaction of claims or any other rights under these insurance policies and any other
insurance policies covering the Property shall pass to the transferee of the Property. 
 ARTICLE 4 
 BOOKS, RECORDS AND ACCOUNTS 
 4.1
BOOKS AND RECORDS. Grantor shall keep adequate books and records of account in accordance with generally accepted accounting principles (“GAAP”), or in accordance with other methods acceptable to Beneficiary in its sole discretion,
consistently applied and furnish to Beneficiary: 
 (a) Annually certified rent rolls signed and dated by Grantor, detailing the names of all
tenants of the Improvements, the portion of Improvements occupied by each tenant, the base rent and any other charges payable under each Lease (as defined in Section 5.2) and the term of each Lease, including the expiration date, and any other
information as is reasonably required by Beneficiary, within thirty (30) days after the end of each fiscal year; 
  

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 (b) A quarterly operating statement of the Property and year to date operating statements detailing the
total revenues received, total expenses incurred, total cost of all capital improvements, total debt service and total cash flow, to be prepared and certified by Grantor in the form required by Beneficiary, and if available, any quarterly operating
statement prepared by an independent certified public accountant, within thirty to sixty (30-60) days after the close of each fiscal quarter of Grantor; 
 (c) An annual balance sheet and profit and loss statement of Grantor in the form required by Beneficiary, prepared and certified by Grantor, or if required by Beneficiary, audited financial statements for Grantor and
any Liable Parties prepared by an independent certified public accountant acceptable to Beneficiary within ninety (90) days after the close of each fiscal year of Grantor and the Liable Parties, as the case may be; and 
 (d) An annual operating budget presented on a monthly basis consistent with the annual operating statement described above for the Property including
cash flow projections for the upcoming year and all proposed capital replacements and improvements at least fifteen (15) days prior to the start of each calendar year. 
 Notwithstanding the foregoing, the financial statements for Liable Parties to be provided pursuant to Section 4.1(c) do not need to be in accordance with GAAP, provided they are in accordance with the accounting
method used in the financial statements of Liable Parties submitted to Beneficiary in connection with the application for the Loan. 
 4.2
ADDITIONAL MATTERS. 
 (a) Grantor shall furnish Beneficiary with such other additional financial or management information (including
State and Federal tax returns) as may, from time to time, be reasonably required by Beneficiary or the rating agencies in form and substance satisfactory to Beneficiary or the rating agencies. 
 (b) Grantor shall furnish Beneficiary and its agents convenient facilities for the examination and audit of any such books and records. 
 (c) Beneficiary and its representatives shall have the right upon reasonable prior written notice to examine and audit the records, books, management and
other papers of Grantor and its affiliates or of any guarantor or indemnitor which reflect upon their financial condition and/or the income, expenses and operations of the Property, at the Property or at any office regularly maintained by Grantor,
its affiliates or any guarantor or indemnitor where the books and records are located. Beneficiary shall have the right upon notice to make copies and extracts from the foregoing records and other papers. 
  

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 ARTICLE 5 
 LEASES AND OTHER AGREEMENTS AFFECTING THE PROPERTY 
 5.1 GRANTOR’S REPRESENTATIONS AND
WARRANTIES. Grantor represents and warrants to Trustee and Beneficiary as follows: 
 (a) There are no leases or occupancy agreements
affecting the Property except those leases and amendments listed on Exhibit B to the Assignment of Leases and Grantor has delivered to Beneficiary true, correct and complete copies of all existing leases, including amendments (collectively,
“Existing Leases”) and all guaranties and amendments of guaranties given in connection with the Existing Leases (the “Guaranties”). 
 (b) There are no material defaults by Grantor under the Existing Leases or Guaranties and, to the best knowledge of Grantor, except as may have been disclosed to Beneficiary in the tenant estoppel certificates
delivered to Beneficiary in connection with the Loan, there are no material defaults by any tenants under the Existing Leases or any guarantors under the Guaranties. The Existing Leases and the Guaranties are in full force and effect. 
 (c) To the best knowledge of Grantor, none of the tenants now occupying ten percent (10%) or more of the Property or having a current lease
affecting ten percent (10%) or more of the Property is the subject of any bankruptcy, reorganization or insolvency proceeding or any other debtor-creditor proceeding. 
 (d) Except as specifically set forth in the Existing Leases, no Existing Leases may be amended, terminated or canceled unilaterally by a tenant and no
tenant may be released from its obligations, except in the event of (i) material damage to, or destruction of, the Property or (ii) condemnation. 
 5.2 ASSIGNMENT OF LEASES. In order to further secure payment of the Secured Indebtedness and the performance of Grantor’s obligations under the Loan Documents, Grantor absolutely, presently and
unconditionally grants, assigns and transfers to Beneficiary all of Grantor’s right, title, interest and estate in, to and under (i) all of the Existing Leases and Guaranties affecting the Property and (ii) all of the future leases,
lease amendments, guaranties and amendments of guaranties and (iii) the Rents and Profits. Grantor acknowledges that it is permitted to collect the Rents and Profits pursuant to a revocable license unless and until an Event of Default occurs.
The Existing Leases and Guaranties and all future leases, lease amendments, guaranties and amendments of guaranties are collectively referred to as the “Leases.” 
 5.3 PERFORMANCE OF OBLIGATIONS. 
 (a)
Grantor shall perform all material obligations under any and all Leases. If any of the acts described in paragraph (c) of this Section 5.3 are done without the written consent of Beneficiary, at the option of Beneficiary, they shall be of
no force or effect and shall constitute a default under this Deed of Trust. 
  

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 (b) Upon request of Beneficiary, Grantor agrees to furnish Beneficiary executed copies of all future
Leases entered into which affect the Property. 
 (c) Grantor shall not, without the express written consent of Beneficiary, (i) enter
into or extend any Lease unless the Lease complies with the Leasing Guidelines which are attached to this Deed of Trust as Exhibit B (provided, however, that the foregoing shall not prohibit Grantor from allowing the extension of any Leases
pursuant to any extension options existing under the Existing Leases or Leases hereafter entered into in accordance with the terms hereof), or (ii) cancel or terminate any Leases or accept a surrender of any Leases except in the case of a
default unless Grantor has entered into new Leases covering all of the premises of the Leases being terminated or surrendered or unless specifically permitted under any Existing Leases or Leases hereafter entered into in accordance with the terms
hereof, or (iii) modify or amend any Leases in any material way or reduce the rent (unless any such Lease following such modification, amendment or reduction shall remain in compliance with the Leasing Guidelines), or (iv) unless the
tenants remain liable under the Leases, consent to an assignment of the tenant’s interest or to a subletting of any of the Leases (except if any such consent is required by the terms of a Lease existing on the Execution Date and entered into in
compliance with this Deed of Trust), or (v) accept payment of advance rents in an amount in excess of one month’s rent under any Lease. In the event that (i) Grantor has delivered to Beneficiary a written request for
Beneficiary’s approval of a Lease or other leasing matter together with a summary of the business terms of such Lease or other leasing matter by a method which provides evidence of delivery, such as certified mail or a recognized national
overnight delivery service, (ii) Beneficiary has failed to respond to such request within five (5) business days after Beneficiary’s receipt of such request, and (iii) Grantor has delivered to Beneficiary a second copy of such
request by such a method, then, if Beneficiary has failed to respond to such second request within five (5) business days after Beneficiary’s receipt of such request, such request shall be deemed approved, provided that each such
request included a legend prominently displayed at the top of the first page thereof in solid capital letters in bold face type of a font size not less than twelve (12) as follows: “WARNING: PURSUANT TO SECTION 5.3 OF THE DEED OF TRUST,
YOU WILL BE DEEMED TO HAVE APPROVED THIS REQUEST IF YOU DO NOT RESPOND WITHIN FIVE (5) BUSINESS DAYS AFTER RECEIPT.” 
 (d)
Grantor shall not, without the express written consent of Beneficiary enter into any options to purchase the Property. 
 5.4 SUBORDINATE
LEASES. Each Lease hereafter entered into affecting the Property shall be absolutely subordinate to the lien of this Deed of Trust and shall also contain a provision, satisfactory to Beneficiary, to the effect that (a) Beneficiary may elect
to make such Lease superior to the lien of this Deed of Trust and (b) in the event of the judicial or non-judicial foreclosure of the Property, at the election of the acquiring foreclosure purchaser, the particular Lease shall not be terminated
and the tenant shall attorn to the purchaser subject to the terms of such Lease. If requested to do so, the tenant shall agree to enter into a new Lease for the balance of the term upon the same terms and conditions. If Beneficiary requests, Grantor
shall cause a tenant or tenants to enter into subordination and attornment agreements or nondisturbance agreements with Beneficiary on forms which have been approved by Beneficiary and Beneficiary shall negotiate such forms in good faith at
Grantor’s cost, including payment of the 

  

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reasonable fees of Beneficiary’s counsel. In addition, Beneficiary agrees to provide a nondisturbance agreement to any tenant (and to negotiate such
agreement in good faith at Grantor’s cost, including payment of the reasonable fees of Beneficiary’s counsel), provided that such tenant’s Lease is approved by Beneficiary. Following the date hereof, Grantor shall request and use
reasonable efforts to obtain a subordination, nondisturbance and attornment agreement on forms which have been approved by Beneficiary from each tenant under a Lease demising in excess of 8,000 square feet of rentable floor area in effect on the
date hereof who has not yet provided such an agreement. 
 5.5 MANAGEMENT FEES. Grantor covenants and agrees that all contracts and
agreements relating to the Property requiring the payment of management fees or other similar compensation shall (i) provide that the obligation will not be enforceable against Beneficiary and (ii) be subordinate to the lien of this Deed
of Trust. Beneficiary will be provided evidence of Grantor’s compliance with this Section upon request. 
  

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 ARTICLE 6 
 ENVIRONMENTAL HAZARDS 
 6.1 REPRESENTATIONS AND WARRANTIES. Grantor hereby represents,
warrants, covenants and agrees to and with Beneficiary that (i) except as may be disclosed in the Initial Environmental Report (as defined in the Indemnity Agreement) or except as expressly approved by Beneficiary in writing, neither Grantor
nor, to the best of Grantor’s knowledge, after due inquiry, any tenant, subtenant or occupant of the Property, has at any time placed, suffered or permitted the presence of any Hazardous Materials (as defined in Section 6.5) at, on, under,
within or about the Property, except for Permitted Materials (as this term is defined in the Indemnity Agreement); (ii) except as may be disclosed in the Initial Environmental Report, to the best knowledge of Grantor, all operations or
activities upon the Property, and any use or occupancy of the Property by Grantor, and any tenant, subtenant or occupant of the Property are presently and shall in the future be in compliance with all Requirements of Environmental Laws (as defined
in Section 6.6); (iii) Grantor will use reasonable best efforts to assure that any tenant, subtenant or occupant of the Property shall in the future be in compliance with all Requirements of Environmental Laws with respect to the Property;
(iv) except as may be disclosed in the Initial Environmental Report, Grantor does not know of, and has not received, any written or oral notice or other communication from any person or entity (including, without limitation, a governmental
entity) relating to Hazardous Materials or Remedial Work pertaining thereto, of possible liability of any person or entity pursuant to any Requirements of Environmental Laws, other environmental conditions in connection with the Property, or any
actual administrative or judicial proceedings in connection with any of the foregoing; (v) Grantor shall not do (and shall use its reasonable best efforts not to allow any tenant or other user of the Property to do) any act that materially
increases the dangers to human health or the environment, poses an unreasonable risk of harm to any person or entity (whether on or off the Property), impairs or may impair the value of the Property, is contrary to any requirement of any insurer,
constitutes a public or private nuisance, constitutes waste, or violates any covenant, condition, agreement or easement applicable to the Property; and (vi) Grantor has truthfully and fully provided to Beneficiary, in writing, any and all
information relating to environmental conditions in, on, under or from the Property that is known to Grantor and that is contained in Grantor’s files and records, including, without limitation, any reports relating to Hazardous Materials in,
on, under or from the Property and/or to the environmental condition of the Property. 
 6.2 REMEDIAL WORK. In the event any
investigation or monitoring of site conditions or any clean-up, containment, restoration, removal or other remedial work (collectively, the “Remedial Work”) is required under any Requirements of Environmental Laws, Grantor shall perform or
cause to be performed the Remedial Work in compliance with the applicable law, regulation, order or agreement. All Remedial Work shall be performed by one or more contractors, selected by Grantor and approved in advance in writing by Beneficiary,
and under the supervision of a consulting engineer, selected by Grantor and approved in advance in writing by Beneficiary. All costs and expenses of Remedial Work shall be paid by Grantor including, without limitation, the charges of the
contractor(s) and/or the consulting engineer, and Beneficiary’s reasonable attorneys’, architects’ and/or consultants’ fees and costs incurred in connection with monitoring or review of the Remedial Work. In the event Grantor
shall fail to timely commence, or cause to be commenced, or fail to diligently prosecute to completion, the Remedial Work, Beneficiary may, but shall not be required to, cause such Remedial Work to be performed, subject to the provisions of Sections
11.5 and 11.6. 
  

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 6.3 ENVIRONMENTAL SITE ASSESSMENT. Beneficiary shall have the right, at any time and from time to
time, to undertake an environmental site assessment on the Property, including any testing that Beneficiary may determine, in its sole discretion, is necessary or desirable to ascertain the environmental condition of the Property and the compliance
of the Property with Requirements of Environmental Laws. Any such assessment and/or testing shall be at the sole expense of Grantor if an Event of Default has occurred and is continuing or if Beneficiary reasonably believes that Hazardous Materials
are present in, on, under or from the Property in violation of Requirements of Environmental Laws. Grantor shall cooperate fully with Beneficiary and its consultants performing such assessments and tests. 
 6.4 UNSECURED OBLIGATIONS. No amounts which may become owing by Grantor to Beneficiary under this Article 6 or under any other provision of this
Deed of Trust as a result of a breach of or violation of this Article 6 shall be secured by this Deed of Trust. The obligations shall continue in full force and effect and any breach of this Article 6 shall constitute a default under this Deed of
Trust. The lien of this Deed of Trust shall not secure (i) any obligations evidenced by or arising under the Indemnity Agreement (“Unsecured Obligations”), or (ii) any other obligations to the extent that they are the same or
have the same effect as any of the Unsecured Obligations. The Unsecured Obligations shall continue in full force, and any breach or default of any such obligations shall constitute a breach or default under this Deed of Trust but the proceeds of any
foreclosure sale shall not be applied against Unsecured Obligations. Nothing in this Section shall in any way limit or otherwise affect the right of Beneficiary to obtain a judgment in accordance with applicable law for any deficiency in recovery of
all obligations that are secured by this Deed of Trust following foreclosure, notwithstanding that the deficiency judgment may result from diminution in the value of the Property by reason of any event or occurrence pertaining to Hazardous Materials
or any Requirements of Environmental Laws. 
 6.5 HAZARDOUS MATERIALS. “Hazardous Materials” shall include without
limitation: 
 (a) Those substances included within the definitions of “hazardous substances,” “hazardous materials,”
“toxic substances,” or “solid waste” in the Comprehensive Environmental Response Compensation and Liability Act of 1980 (as amended), 42 U.S.C. Sections 9601 et seq., the Resource Conservation and Recovery Act of 1976
(as amended), 42 U.S.C. Sections 6901 et seq. (“RCRA”), and the Hazardous Materials Transportation Act (as amended), 49 U.S.C. Sections 1501 et seq., and in the regulations promulgated pursuant to said laws, all as amended;

 (b) Those substances listed in the United States Department of Transportation Hazardous Materials Table (49 CFR 172.101 and amendments
thereto) listed in Table 302.4 – List of Hazardous Substances and Reportable Quantities (40 CFR Part 302 and amendments thereto) or listed in the List of Extremely Hazardous Substances and Their Threshold Planning Quantities (40 CFR Part 355,
App. A, and amendments thereto); 
  

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 (c) Any material, waste or substance which is (A) petroleum, including crude oil or any fraction
thereof, natural gas, natural gas liquids, liquefied natural gas, synthetic gas usable for fuel, or any mixture thereof, (B) asbestos, (C) polychlorinated biphenyls, (D) designated as a “hazardous substance” pursuant to
Section 311 of the Clean Water Act, 33 U.S.C. § 1251 et seq. (33 U.S.C. § 1321) or listed pursuant to Section 307 of the Clean Water Act (33 U.S.C. § 1317), (E) a chemical substance or mixture regulated
under the Toxic Substances Control Act of 1976, 15 U.S.C. §§ 2601 et seq., (F) flammable explosives, (G) radioactive materials, (H) unexploded ordinance, (I) pesticides, fungicides, insecticides or
rodenticides, or (J) a hazardous air pollutant that is or may be listed under § 112 of the Clean Air Act, as amended, 42 U.S.C. §§ 7401 et seq. (42 U.S.C. § 7412); 
 (d) Any material, waste or substance that is included within and regulated by Title 8 of District of Columbia Official Code (2001), as amended; and

 (e) Such other substances, materials and wastes which are or become regulated as hazardous or toxic under applicable local, state or
federal law, or the United States government, or which are classified as hazardous or toxic under federal, state, or local laws or regulations, and any other chemical, material or substance, exposure to which is prohibited, limited or regulated by
any governmental authority or which may or could pose a hazard to the environment or human health or safety. 
 6.6 REQUIREMENTS OF
ENVIRONMENTAL LAWS. “Requirements of Environmental Laws” means all requirements of environmental, ecological, health, or industrial hygiene laws or regulations or rules of common law related to the Property, including, without
limitation, all requirements imposed by any environmental permit, law, rule, order, or regulation of any federal, state, or local executive, legislative, judicial, regulatory, or administrative agency, which relate to (i) exposure to Hazardous
Materials; (ii) pollution or protection of the air, surface water, ground water, land; (iii) solid, gaseous, or liquid waste generation, treatment, storage, disposal, or transportation; or (iv) regulation of the manufacture,
processing, distribution and commerce, use, or storage of Hazardous Materials. 
 ARTICLE 7 
 CASUALTY, CONDEMNATION AND RESTORATION 
 7.1 GRANTOR’S REPRESENTATIONS. Grantor represents and warrants as follows: 
 (a) Except as expressly approved by
Beneficiary in writing, no casualty or damage to any part of the Property which would cost more than $50,000 to restore or replace has occurred which has not been fully restored or replaced. 
 (b) No part of the Property has been taken in condemnation or other similar proceeding or transferred in lieu of condemnation, nor has Grantor received
notice of any proposed condemnation or other similar proceeding affecting the Property. 
  

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 (c) There is no pending proceeding for total or partial condemnation of the Property. 
 7.2 RESTORATION. 
 (a) Grantor shall
give prompt written notice of any casualty to the Property to Beneficiary whether or not required to be insured against. The notice shall describe the nature and cause of the casualty and the extent of the damage to the Property. 
 (b) Grantor assigns to Beneficiary all Insurance Proceeds which Grantor is entitled to receive in connection with a casualty whether or not such
insurance is required under this Deed of Trust. In the event of any damage to or destruction of the Property, and provided (1) an Event of Default does not currently exist, and (2) Beneficiary has determined that (i) there has not
been an Impairment of the Security (as defined in Section 7.2(c)), and (ii) the repair, restoration and rebuilding of any portion of the Property that has been partially damaged or destroyed (the “Restoration”) can be
accomplished in full compliance with all Requirements to the same condition, character and general utility as nearly as possible to that existing prior to the casualty and at least equal in value as that existing prior to the casualty, then Grantor
covenants and agrees to commence and diligently pursue to completion the Restoration and the Net Insurance Proceeds shall be applied to the cost of Restoration in accordance with the terms of this Article. Beneficiary shall hold and disburse the
Insurance Proceeds less the cost, if any, to Beneficiary of recovering the Insurance Proceeds including, without limitation, reasonable attorneys’ fees and expenses, and adjusters’ fees (the “Net Insurance Proceeds”) to the
Restoration. 
 (c) For the purpose of this Article, “Impairment of the Security” shall mean any or all of the following:
(i) any of the Leases covering more than 20,000 square feet existing immediately prior to the damage, destruction, condemnation or casualty shall have been cancelled, or shall contain any exercisable right to cancel as a result of the damage,
destruction or casualty (and the tenant thereunder shall not have waived or be deemed to have waived such right); (ii) the casualty or damage occurs during the last year of the term of the Loan; or (iii) restoration of the Property is
estimated to require more than one year to complete from the date of the occurrence. 
 (d) If the Net Insurance Proceeds are to be used for
the Restoration in accordance with this Article, Grantor shall comply with Beneficiary’s Requirements For Restoration as set forth in Section 7.4 below. Upon Grantor’s satisfaction and completion of the Requirements For Restoration
and upon confirmation that there is no Event of Default then existing (including any Event of Default pursuant to Section 11.1(h)), Beneficiary shall pay any remaining Restoration Funds (as defined in Section 7.4 below) then held by
Beneficiary to Grantor. 
 (e) In the event that the conditions for Restoration set forth in this Section have not been met, Beneficiary may,
at its option, apply the Net Insurance Proceeds to the reduction of the Secured Indebtedness and Beneficiary may declare the entire Secured Indebtedness immediately due and payable, without the payment of the Prepayment Fee, as 

  

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defined in the Note. Any remaining Net Insurance Proceeds shall be applied to the reduction of the 1201 Guaranteed Obligations. After payment in full of the
Secured Indebtedness and the 1201 Guaranteed Obligations, any remaining Restoration Funds shall be paid to Grantor. 
 7.3
CONDEMNATION. 
 (a) If the Property or any part of the Property is taken by reason of any condemnation or similar eminent domain
proceeding, or by a grant or conveyance in lieu of condemnation or eminent domain (“Condemnation”), Beneficiary shall be entitled to all compensation, awards, damages, proceeds and payments or relief for the Condemnation
(“Condemnation Proceeds”). At its option, Beneficiary shall be entitled to commence, appear in and prosecute in its own name any action or proceeding or to make any compromise or settlement in connection with such Condemnation. Grantor
hereby irrevocably constitutes and appoints Beneficiary as its attorney-in-fact, which appointment is coupled with an interest, to commence, appear in and prosecute any action or proceeding or to make any compromise or settlement in connection with
any such Condemnation; provided, however, that so long as there is no Event of Default hereunder or any event which with the passage of time and/or the giving of notice would constitute an Event of Default, Beneficiary shall consult with Grantor
prior to making any such compromise or settlement. Notwithstanding the foregoing, so long as no Event of Default (or any event which with notice and/or the opportunity to cure would constitute an Event of Default) has occurred and is continuing, and
so long as Beneficiary’s security shall not be impaired, (i) Grantor may settle any such Condemnation involving less than $250,000.00 without the consent of Beneficiary, and (ii) Grantor may negotiate for a settlement, adjustment or
compromise of any such Condemnation involving $250,000.00 or more provided that the final settlement shall be subject to the written approval of Beneficiary in its sole and absolute discretion. 
 (b) Grantor assigns to Beneficiary all Condemnation Proceeds which Grantor is entitled to receive. In the event of any Condemnation, and provided
(1) an Event of Default does not currently exist, and (2) Beneficiary has determined that (i) there has not been an Impairment of the Security, and (ii) the Restoration of any portion of the Property that has not been taken can
be accomplished in full compliance with all Requirements to the same condition, character and general utility as nearly as possible to that existing prior to the taking and at least equal in value as that existing prior to the taking, then Grantor
shall commence and diligently pursue to completion the Restoration. Beneficiary shall hold and disburse the Condemnation Proceeds less the cost, if any, to Beneficiary of recovering the Condemnation Proceeds including, without limitation, reasonable
attorneys’ fees and expenses, and adjusters’ fees (the “Net Condemnation Proceeds”) to the Restoration. 
 (c) In the
event the Net Condemnation Proceeds are to be used for the Restoration, Grantor shall comply with Beneficiary’s Requirements For Restoration as set forth in Section 7.4 below. Upon Grantor’s satisfaction and completion of the
Requirements For Restoration and upon confirmation that there is no Event of Default then existing (including any Event of Default pursuant to Section 11.1(h)), Beneficiary shall pay any remaining Restoration Funds (as defined in
Section 7.4 below) then held by Beneficiary to Grantor. 
  

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 (d) In the event that the conditions for Restoration set forth in this Section have not been met,
Beneficiary may, at its option, apply the Net Condemnation Proceeds to the reduction of the Secured Indebtedness and Beneficiary may declare the entire Secured Indebtedness immediately due and payable, without the payment of the Prepayment Fee. Any
remaining Net Insurance Proceeds shall be applied to the reduction of the 1201 Guaranteed Obligations. After payment in full of the Secured Indebtedness, any remaining Restoration Funds shall be paid to Grantor. 
 7.4 REQUIREMENTS FOR RESTORATION. Unless otherwise expressly agreed in a writing signed by Beneficiary, the following are the Requirements For
Restoration: 
 (a) If the Net Insurance Proceeds or Net Condemnation Proceeds are to be used for the Restoration, prior to the commencement
of any Restoration work (the “Work”), Grantor shall provide Beneficiary (i) for its review and written approval complete plans and specifications for the Work which (A) have been approved by all required governmental authorities,
(B) have been approved by an architect reasonably satisfactory to Beneficiary (the “Architect”) and (C) are accompanied by Architect’s signed statement of the total estimated cost of the Work (the “Approved Plans and
Specifications”); (ii) the amount of money which Beneficiary reasonably determines will be sufficient when added to the Net Insurance Proceeds or Condemnation Proceeds to pay the entire cost of the Restoration (collectively referred to as
the “Restoration Funds”); (iii) evidence that the Approved Plans and Specifications and the Work are in compliance with all Requirements; (iv) an executed contract for construction with a contractor reasonably satisfactory to
Beneficiary (the “Contractor”) in a form approved by Beneficiary in writing; and (v) if reasonably requested by Beneficiary, a surety bond and/or guarantee of payment with respect to the completion of the Work. The bond or guarantee
shall be satisfactory to Beneficiary in form and amount and shall be signed by a surety or other entities who are acceptable to Beneficiary. 
 (b) Grantor shall not commence the Work, other than temporary work to protect the Property or prevent interference with business, until Grantor shall have complied with the requirements of subsection (a) of this Section 7.4. So
long as there does not currently exist an Event of Default and the following conditions have been complied with or, in Beneficiary’s discretion, waived, Beneficiary shall disburse the Restoration Funds in increments to Grantor, from time to
time as the Work progresses: 
 (i) Architect shall be in charge of the Work; 
 (ii) Beneficiary shall disburse the Restoration Funds directly or through escrow with a title company selected by Grantor and approved by Beneficiary,
upon not less than ten (10) days’ prior written notice from Grantor to Beneficiary and Grantor’s delivery to Beneficiary of (A) Grantor’s written request for payment (a “Request for Payment”) accompanied by a
certificate by Architect in a form satisfactory to Beneficiary which states that (a) all of the Work completed to that date has been completed in compliance with the Approved Plans and Specifications and in accordance with all Requirements,
(b) the amount requested has been paid or is then due and payable and is properly a part of the cost of the Work and (c) when added to all sums previously paid by Beneficiary, the requested amount does not exceed the 

  

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value of the Work completed to the date of such certificate; and (B) evidence satisfactory to Beneficiary that the balance of the Restoration Funds
remaining after making the payments shall be sufficient to pay the balance of the cost of the Work. Each Request for Payment shall be accompanied by (x) waivers of liens covering that part of the Work previously paid for, if any, (y) a
title search or by other evidence satisfactory to Beneficiary that no mechanic’s or materialmen’s liens or other similar liens for labor or materials supplied in connection with the Work have been filed against the Property and not
discharged of record, and (z) an endorsement to Beneficiary’s title policy insuring that no encumbrance exists on or affects the Property other than the Permitted Exceptions; and 
 (iii) The final Request for Payment shall be accompanied by (A) a final certificate of occupancy or other evidence of approval of appropriate
governmental authorities for the use and occupancy of the Improvements, (B) evidence that the Restoration has been completed in accordance with the Approved Plans and Specifications and all Requirements, (C) evidence that the costs of the
Restoration have been paid in full, and (D) evidence that no mechanic’s or similar liens for labor or material supplied in connection with the Restoration are outstanding against the Property, including final waivers of liens covering all
of the Work and an endorsement to Beneficiary’s title policy insuring that no encumbrance exists on or affects the Property other than the Permitted Exceptions. 
 (c) If (A) within sixty (60) days after the occurrence of any damage, destruction or condemnation requiring Restoration, Grantor fails to submit to Beneficiary and receive Beneficiary’s approval of
plans and specifications or fails to deposit with Beneficiary the additional amount necessary to accomplish the Restoration as provided in subparagraph (a) above, or (B) after such plans and specifications are approved by all such
governmental authorities and Beneficiary, Grantor fails to commence promptly or diligently continue to completion the Restoration, or (C) Grantor becomes delinquent in payment to mechanics, materialmen or others for the costs incurred in
connection with the Restoration, or (D) there exists an Event of Default (including any Event of Default pursuant to Section 11.1(h)), then, in addition to all of the rights herein set forth and after ten (10) days’ written
notice of the non-fulfillment of one or more of these conditions, Beneficiary may apply the Restoration Funds to reduce the Secured Indebtedness and at Beneficiary’s option and in its sole discretion, Beneficiary may declare the Secured
Indebtedness immediately due and payable together with the Prepayment Fee. Any remaining Net Insurance Proceeds shall be applied to the reduction of the 1201 Guaranteed Obligations. 
 ARTICLE 8 
 REPRESENTATIONS OF GRANTOR 
 8.1 ERISA. Grantor hereby represents, warrants and agrees that: (i) it is acting on its own behalf and that it is not an employee benefit
plan as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), which is subject to Title 1 of ERISA, nor a plan as defined in Section 4975(e)(1) of the Internal Revenue Code of 1986,
as 

  

 25 

 
amended (each of the foregoing hereinafter referred to collectively as a “Plan”); (ii) Grantor’s assets do not constitute “plan
assets” of one or more such Plans within the meaning of Department of Labor Regulation Section 2510.3-101; and (iii) it will not be reconstituted as a Plan or as an entity whose assets constitute “plan assets.” 

8.2 NON-RELATIONSHIP. Neither Grantor nor, to Grantor’s knowledge, any person who is a Grantor’s Constituent (as defined in
Section 8.3), but subject to the next sentence is (i) a director or officer of Metropolitan Life Insurance Company (“MetLife”), (ii) a parent, son or daughter of a director or officer of MetLife, or a descendent of any of
them, (iii) a stepparent, adopted child, stepson or stepdaughter of a director or officer of MetLife, or (iv) a spouse of a director or officer of MetLife. For purposes of this paragraph only, the term “Grantor’s
Constituents” shall not be deemed to include any shareholders (collectively, the “Shareholders”) of Piedmont Office Realty Trust, Inc. (formerly known as Wells Real Estate Investment Trust, Inc.) or any limited partners of Piedmont
Operating Partnership, L.P., a Delaware limited partnership (“Piedmont Partnership”). 
 8.3 NO ADVERSE CHANGE. Grantor
represents and warrants that: 
 (a) There has been no material adverse change from the conditions shown in the application submitted for the
Loan by Grantor (the “Application”) or in the materials submitted in connection with the Application in the credit rating or financial condition of Grantor or the Liable Parties or, to the best knowledge of Grantor, any entity which is a
general partner, shareholder or member of Grantor (collectively, “Grantor’s Constituents”). 
 (b) Grantor has delivered to
Beneficiary true and correct copies of all Grantor’s organizational documents and except as expressly approved by Beneficiary in writing, there have been no changes in Grantor’s Constituents since the date that the Application was executed
by Grantor. 
 (c) Neither Grantor, nor any of Grantor’s Constituents, is involved in any bankruptcy, reorganization, insolvency,
dissolution or liquidation proceeding, and to the best knowledge of Grantor, no such proceeding is contemplated or threatened. 
 (d) Grantor
has received reasonably equivalent value for the granting of this Deed of Trust. 
 8.4 FOREIGN INVESTOR. Neither Grantor nor any
partner, member or shareholder of Grantor is a “foreign person” within the meaning of Sections 1445 and 7701 of the Internal Revenue Code of 1986, as amended. 
 8.5 US PATRIOT ACT. Neither Grantor nor, to Grantor’s knowledge, any partner, member or shareholder of Grantor is, and no legal or beneficial interest in a partner, member or shareholder of Grantor is or
will be held, directly or indirectly by a person or entity (excluding any Shareholders and any limited partners of Piedmont Partnership) that appears on a list of individuals and/or entities for which transactions are prohibited by the US Treasury
Office of Foreign Assets Control or any similar list maintained by any other governmental authority, with respect to which entering into transactions with such person or entity would violate the US Patriot Act or regulations or any Presidential
Executive Order or any other similar applicable law, ordinance, order, rule or regulation. 
  

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 ARTICLE 9 
 EXCULPATION AND LIABILITY 
 9.1 LIABILITY OF GRANTOR. 
 (a) Upon the occurrence of an Event of Default, except as provided in this Section 9.1, Beneficiary will look solely to the Property (and the
Property encumbered by the Related Deed of Trust) and the security under the Loan Documents (and the security under the Related Loan Documents) for the repayment of the Loan and will not enforce a deficiency judgment against Grantor. However,
nothing contained in this section shall limit the rights of Beneficiary to enforce any policies of insurance or to proceed against Grantor and the general partners of Grantor, if any, and/or the Liable Parties or any one or more of them (i) to
enforce any Leases entered into by Grantor or its affiliates as tenant, guarantees, or other agreements entered into by Grantor in a capacity other than as borrower; (ii) to recover damages for fraud, material misrepresentation, material breach
of warranty or waste committed by Grantor or any constituent thereof; (iii) to recover any Condemnation Proceeds or Insurance Proceeds or other similar funds which have been misapplied by Grantor or which, under the terms of the Loan Documents,
should have been paid to Beneficiary; (iv) to recover any tenant security deposits, tenant letters of credit or other deposits or refundable fees paid to Grantor that are part of the collateral for the Loan or prepaid rents for a period of more
than 30 days which have not been delivered to Beneficiary unless applied in accordance with the Leases prior to an Event of Default; (v) to recover Rents and Profits received by Grantor after the first day of the month in which an Event of
Default occurs and prior to the date Beneficiary acquires title to the Property which have not been applied to the Loan or in accordance with the Loan Documents to operating and maintenance expenses of the Property; (vi) to recover damages,
costs and expenses arising from, or in connection with, any breach of a covenant contained in Article 6 hereof or the Indemnity Agreement; (vii) to recover any amount expended by Beneficiary in connection with a foreclosure or trustee’s
sale hereunder; (viii) to recover damages arising from Grantor’s failure to comply with Section 8.1 of this Deed of Trust pertaining to ERISA; and/or (ix) to recover damages, costs and expenses arising from, or in connection
with, Grantor’s failure to pay any Impositions or Premiums. 
 (b) The limitation of liability set forth in this Section 9.1 shall
not apply and the Loan shall be fully recourse in the event that prior to the indefeasible payment in full of the Secured Indebtedness and the 1201 Guaranteed Obligations (i) Grantor commences a voluntary bankruptcy or insolvency proceeding or
(ii) an involuntary bankruptcy or insolvency proceeding is commenced against Grantor and Grantor or any related party has directly or indirectly encouraged, participated with, or colluded with the parties filing such involuntary bankruptcy or
insolvency proceeding to file such proceeding. In addition, this agreement shall not waive any rights which Beneficiary would have under any provisions of the U.S. Bankruptcy Code to file a claim for the full amount of the Secured Indebtedness and
the 1201 Guaranteed Obligations or to require that the Property shall continue to secure all of the Secured Indebtedness and the 1201 Guaranteed Obligations. 
  

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 (c) The limitation of liability set forth in this Section 9.1 also shall not apply and the Loan
shall be fully recourse in the event that there is any violation of Sections 10.1 or 10.2 hereof. 
 ARTICLE 10 
 CHANGE IN OWNERSHIP, CONVEYANCE OF PROPERTY 
 10.1 CONVEYANCE OF PROPERTY, CHANGE IN OWNERSHIP AND COMPOSITION. 
 (a) Grantor shall not cause or permit: (i) the
Property, or any interest in the Property, to be conveyed, transferred, assigned, encumbered (except for Permitted Exceptions), sold or otherwise disposed of; or (ii) any transfer, assignment or conveyance of any interest in Grantor or in the
partners, or shareholders, or members or beneficiaries of, Grantor or of any of Grantor’s Constituents; or (iii) any merger, reorganization, dissolution or other change in the ownership structure of Grantor or any of the members of
Grantor, including, without limitation, any conversion of Grantor or any member of Grantor from a limited liability company to a general partnership, limited partnership, or a limited liability partnership, or vice-versa (collectively,
“Transfers”). 
 (b) The prohibitions on transfer shall not be applicable to (i) Transfers as a result of the death of a
natural person; or (ii) Transfers in connection with estate planning between or among a revocable trust or a natural person to a spouse, son or daughter or descendant of either, a stepson or stepdaughter or descendant of either; or
(iii) Transfers to or from a spouse in connection with the dissolution of a marriage; or (iv) Transfers of shareholder interests in Piedmont Office Realty Trust, Inc., a Maryland corporation, formerly known as Wells Real Estate Investment
Trust, Inc. (“Piedmont REIT”) or limited partner interests in Piedmont Partnership (as defined in Section 8.2) so long as Grantor pays to Beneficiary all costs and expenses incurred by Beneficiary in connection with any proposed
Transfer pursuant to the preceding clauses (i), (ii), or (iii), if any, including without limitation title insurance premiums, documentation and recording costs, and reasonable attorneys’ costs and fees. 
 (c) Notwithstanding the foregoing, transfers to or among the constituent members of Grantor or the constituent owners of any of Grantor’s
Constituents shall be permitted without the consent of Beneficiary provided that (i) there shall not then be a default or Event of Default hereunder or under any of the other Loan Documents, or the Guaranty or the Indemnity Agreement or any
event which would, after the passage of time or the giving of notice, or both, constitute such a default; (ii) Piedmont REIT remains the General Partner of Piedmont Partnership and maintains at least a 51% ownership interest therein,
(iii) Piedmont Partnership maintains at least a 48.02% ownership interest in Grantor, either directly or through intermediate entities; (iv) Piedmont Partnership retains the sole right and power to direct or cause the direction of the
management and policies of Grantor; (v) the entity that comprises Grantor after the completion of such transfers shall be able to and shall make the warranties set forth in Sections 8.1, 8.2, 8.4 and 8.5 hereof; (vi) Grantor notifies
Beneficiary of any such transfer and provides any information Beneficiary may reasonably require in connection therewith (provided, 

  

 28 

 
however, that with respect to transfers of interests in those Grantor’s Constituents that are not affiliated with Piedmont Partnership, Grantor shall
notify Beneficiary of such transfer and provide such information to Beneficiary when Grantor is notified of such transfer and obtains such information and provided further that Grantor shall not be required to provide any notification to Beneficiary
of, or provide Beneficiary with any information with respect to, any transfer of any direct or indirect interest in Piedmont Partnership by or among any Shareholders), and (vii) Grantor pays to Beneficiary a $5,000.00 processing fee and any
other reasonable out-of-pocket costs and expenses incurred by Beneficiary in connection with any transfer or transfers in a single transaction, including document costs, if any, and reasonable attorneys’ fees (provided, however, that such fee
shall not be payable with respect to the transfer of any direct or indirect interest in Piedmont Partnership by or among any Shareholders). In addition, notwithstanding Subsections 10.1(a)(ii) and 10.1(a)(iii) above, the Piedmont Lender (as
hereafter defined), which is an affiliate of Grantor and whose ownership interests are owned (directly or indirectly) by the same entity that owns the ownership interests in 1225 Equity LLC, a Delaware limited liability company (“Piedmont
Sub”), may be admitted as a non-managing member of Grantor without the consent of Beneficiary provided that conditions (i) through (vii) of this Subsection 10.1(c) are satisfied and that all of the ownership interests in Piedmont
Lender are held (directly or indirectly) by the same entity that owns the ownership interests in Piedmont Sub. In addition, notwithstanding anything to the contrary contained herein, transfers or issuance of stock in Piedmont Washington Properties,
Inc., a Maryland corporation, formerly known as Wells Washington Properties, Inc. (“Washington Properties”) and the sole member of Piedmont Sub, shall be permitted without the consent of Beneficiary provided that conditions (ii), (iii),
(iv) and (v) of this Subsection 10.1(c) are satisfied and provided that Piedmont Partnership continues to own at least 98% of the stock of Washington Properties. Furthermore, notwithstanding Subsections 10.1(a)(ii) and 10.1(a)(iii) above,
the members of Grantor and the owners of any of Grantor’s Constituents that are not affiliated with Piedmont Partnership (such members and owners as of the time immediately following the transfer by Beacon Capital Strategic Partners II, L.P., a
Delaware limited partnership of all of its interest in Washington Properties [then known as BCSP II Washington Properties, Inc.] to Piedmont Partnership on or about November 19, 2003) shall be permitted to transfer their direct or indirect
interests in Grantor to a party or parties that are not members of Grantor or owners of any of Grantor’s Constituents without the consent of Beneficiary provided that: (I) conditions (i) through (vii) of this Subsection 10.1(c)
are satisfied and (II) on the first date that more than twenty percent (20%) of such ownership interests (direct or indirect) in Grantor in the aggregate are transferred in one or more transactions, Grantor shall pay to Beneficiary a transfer
fee equal to one one-hundredth of one percent (0.01%) of the outstanding principal balance of the Loan for each percentage point of such ownership interest (direct or indirect) in Grantor being transferred that is in excess of such aggregate twenty
percent (20%) ownership interest threshold. As an example of the foregoing, if in one transaction or over several transactions, thirty percent (30%) of the direct or indirect ownership interests in Grantor that are not affiliated with
Piedmont Partnership in the aggregate are transferred, then Grantor will be required to pay a transfer fee equal to ten (10) basis points (or 0.10%) of the outstanding principal balance of the Loan at the time the last such transfer occurs; if,
subsequently, an additional five percent (5%) of the direct or indirect ownership interests in Grantor that are not affiliated with Piedmont Partnership are transferred, then Grantor will be required to pay an additional transfer fee equal to
five (5) basis points (or 0.05%) of the 

  

 29 

 
outstanding principal balance of the Loan at the time such transfer occurs. Notwithstanding the foregoing, the Shareholders shall have the right to transfer
direct or indirect interests in Piedmont Partnership without the requirement that Grantor provide any prior or subsequent notice to Beneficiary thereof and without the requirement that Grantor pay any fee or charge to Beneficiary. Any such transfer
will not relieve Grantor of its obligations under the Note or any of the other Loan Documents, the obligations of the Liable Parties under the Guaranty or the Indemnity Agreement, the obligations of Related Borrower under the Related Loan Documents,
or the obligations of the “Liable Parties” under the “Guaranty” or the “Indemnity Agreement” as such quoted terms are defined in the Related Deed of Trust . For purposes hereof, the term “Piedmont Lender”
shall mean TTF Lending LLC, a Delaware limited liability company, and its successors and permitted assigns. 
 (d) In addition, the original
named Grantor shall have a one-time right to transfer the Property (subject to the Loan), either directly, by a transfer of all or substantially all of the ownership interests in Grantor or by a transfer of all or substantially all of the ownership
interests in Grantor owned (directly or indirectly) by Piedmont Partnership, to a third party (the “First Third Party Transferee”) provided that (i) there shall not then be a default or Event of Default hereunder or under any of the
other Loan Documents, or the Guaranty or the Indemnity Agreement (or any event which would, after the passage of time or the giving of notice, or both, constitute such a default) either at the time of the request or at any time thereafter through
the date of the Transfer; (ii) Grantor obtains Beneficiary’s written approval of the proposed First Third Party Transferee, which approval shall not be unreasonably withheld, conditioned or delayed provided that the criteria set forth in
this Subsection 10.1(d) are met; (iii) the First Third Party Transferee shall be experienced in the ownership, management and leasing of properties similar to the Property; (iv) the First Third Party Transferee shall have both a
controlling and managing equity interest of real estate assets with an aggregate market value of not less than Six Hundred Million Dollars ($600,000,000.00) in the normal course of business, and such First Third Party Transferee shall have an equity
interest in such real estate assets of not less than the greater of (A) $200,000,000.00 or (B) thirty percent (30%) of the aggregate value of such real estate assets as reasonably determined by Beneficiary; (v) the First Third
Party Transferee shall (A) not be an adverse party, either directly or indirectly, in any litigation involving Beneficiary which seeks either injunctive relief or more than $10,000,000.00 in damages or which has as its subject matter real
estate-related assets, (B) be able to and shall make the warranties set forth in Sections 8.1, 8.2, 8.4 and 8.5 hereof, and (C) not be the subject of any bankruptcy, reorganization or insolvency proceedings or any criminal charges or
proceedings; (vi) the unpaid principal balance of the Loan shall not exceed fifty-five percent (55%) of the value of the Property based upon a bona fide sales price; (vii) in the opinion of Beneficiary, the annual Net Operating
Income (as hereafter defined) during the then upcoming 12-month period to be derived from the Property at the time of the transfer (as calculated pursuant to space leases with tenants who are in actual occupancy, pay rent on a current basis, and are
not in default) shall be at least one hundred seventy-five percent (175%) of the aggregate amount of monthly installments due under the Note and any subordinate financing (with all accrued obligations thereunder being treated as currently due);
(viii) Grantor or the First Third Party Transferee shall pay to Beneficiary a fee equal to one percent (1%) of the outstanding principal balance of the Loan at the time of the transfer together with a non-refundable processing fee of
$25,000.00; (ix) another party or parties reasonably acceptable to Beneficiary shall execute agreements similar to the Indemnity Agreement and the 

  

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Guaranty with respect to events arising or occurring from and after the date of the transfer, in a form and manner satisfactory to Beneficiary in its sole
and absolute discretion, which additional party or parties shall have in the aggregate a net worth of not less than One Hundred Million Dollars ($100,000,000.00); (x) the First Third Party Transferee shall expressly assume all obligations of
Grantor under the Loan Documents and the Indemnity Agreement in a manner satisfactory to Beneficiary, in its sole and absolute discretion; and (xi) Grantor or such First Third Party Transferee shall pay all costs and expenses incurred by
Beneficiary in connection with the transfer, including title insurance premiums, documentation costs and reasonable attorneys’ fees. Any such transfer will not relieve Grantor of its obligations under the Note, any of the Loan Documents or the
Indemnity Agreement or the obligations of the Liable Parties under the Guaranty and the Indemnity Agreement arising prior to the date of the transfer. The inclusion of a reference to subordinate financing in clause (vii) above shall not be
construed as a consent by Beneficiary to any such subordinate financing, except as permitted in Section 10.2; any such consent may be granted or withheld in Beneficiary’s sole and absolute discretion. In determining the loan to value ratio
and the debt service coverage ratio for purposes of clauses (vi) and (vii) above, the unpaid principal balance of, and the payments required or accrued under, the Second Loan and the Third Loan (as such terms are defined in
Section 10.2) shall be disregarded. The term “Net Operating Income” as used herein means the projected rent and other collection generated by the Property, less all projected operating expenses, including but not limited to real
estate taxes and insurance premiums. 
 (e) In addition, the First Third Party Transferee shall have a one-time right to transfer the
Property (subject to the Loan), either directly or by a transfer of all or substantially all of the ownership interests in Grantor, to a third party (the “Second Third Party Transferee”) provided that (i) there shall not then be a
default or Event of Default hereunder or under any of the other Loan Documents, or the Guaranty or the Indemnity Agreement (or any event which would, after the passage of time or the giving of notice, or both, constitute such a default) either at
the time of the request or at any time thereafter through the date of the Transfer; (ii) the First Third Party Transferee obtains Beneficiary’s written approval of the proposed Second Third Party Transferee, which approval shall not be
unreasonably withheld, conditioned or delayed provided that the criteria set forth in this Subsection 10.1(e) are met; (iii) the Second Third Party Transferee shall be experienced in the ownership, management and leasing of properties similar
to the Property; (iv) the Second Third Party Transferee shall have both a controlling and managing equity interest of real estate assets with an aggregate market value of not less than Six Hundred Million Dollars ($600,000,000.00) in the normal
course of business, and such Second Third Party Transferee shall have an equity interest in such real estate assets of not less than the greater of (A) $200,000,000.00 or (B) thirty percent (30%) of the aggregate value of such real
estate assets as reasonably determined by Beneficiary; (v) the Second Third Party Transferee shall (A) not be an adverse party, either directly or indirectly, in any litigation involving Beneficiary which seeks either injunctive relief or
more than $10,000,000.00 in damages or which has as its subject matter real estate-related assets, (B) be able to and shall make the warranties set forth in Sections 8.1, 8.2, 8.4 and 8.5 hereof, and (C) not be the subject of any
bankruptcy, reorganization or insolvency proceedings or any criminal charges or proceedings; (vi) the unpaid principal balance of the Loan shall not exceed fifty-five percent (55%) of the value of the Property based upon a bona fide sales
price; (vii) in the opinion of Beneficiary, the annual Net Operating Income during the then upcoming 12-month period to be derived from the 

  

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Property at the time of the transfer (as calculated pursuant to space leases with tenants who are in actual occupancy, pay rent on a current basis, and are
not in default) shall be at least one hundred seventy-five percent (175%) of the aggregate amount of monthly installments due under the Note and any subordinate financing (with all accrued obligations thereunder being treated as currently due);
(viii) the First Third Party Transferee or the Second Third Party Transferee shall pay to Beneficiary a fee equal to one percent (1%) of the outstanding principal balance of the Loan at the time of the transfer together with a
non-refundable processing fee of $25,000.00; (ix) another party or parties reasonably acceptable to Beneficiary shall execute agreements similar to the Indemnity Agreement and the Guaranty with respect to events arising or occurring from and
after the date of the transfer, in a form and manner satisfactory to Beneficiary in its sole and absolute discretion, which additional party or parties shall have in the aggregate a net worth of not less than One Hundred Million Dollars
($100,000,000.00); (x) the Second Third Party Transferee shall expressly assume all obligations of the First Third Party Transferee under the Loan Documents and the Indemnity Agreement in a manner satisfactory to Beneficiary, in its sole and
absolute discretion; and (xi) the First Third Party Transferee or the Second Third Party Transferee shall pay all costs and expenses incurred by Beneficiary in connection with the transfer, including title insurance premiums, documentation
costs and reasonable attorneys’ fees. Any such transfer will not relieve the First Third Party Transferee of its obligations under the Note, any of the Loan Documents or the Indemnity Agreement or the obligations of persons and/or entities who
became the Liable Parties pursuant to clause (ix) of Section 10.1(d) under the Guaranty and the Indemnity Agreement arising prior to the date of the transfer. The inclusion of a reference to subordinate financing in clause (vii) above
shall not be construed as a consent by Beneficiary to any such subordinate financing, except as permitted in Section 10.2; any such consent may be granted or withheld in Beneficiary’s sole and absolute discretion. In determining the loan
to value ratio and the debt service coverage ratio for purposes of clauses (vi) and (vii) above, the unpaid principal balance of, and the payments required or accrued under, the Subordinate Loan (as such term is defined in
Section 10.2) shall be disregarded. 
 (f) In addition, provided that no transfer has occurred pursuant to Sections 10.1(d) or (e),
transfers as a result of the merger, consolidation or sale of all or substantially all of the assets of Piedmont REIT or Piedmont Partnership (which merger, consolidation or sale does not result in the conveyance of title to the Real Property) shall
be permitted provided that (i) Beneficiary shall have received not less than thirty (30) days’ prior written notice (“Notice of Proposed Transfer”) of the contemplated merger, consolidation or sale, which notice shall state
whether or not the proposed transferee (as hereafter defined) fulfills the requirements of this Subparagraph (f), and if so shall also include evidence satisfactory to Beneficiary of the fulfillment of such requirements; (ii) there shall not
then be a default or Event of Default hereunder or under any of the other Loan Documents, or the Guaranty or the Indemnity Agreement (or any event which would, after the passage of time or the giving of notice, or both, constitute such a default)
either at the time of such notice to Beneficiary or at any time thereafter through the date of the Transfer; (iii) the surviving entity after such merger or consolidation or the transferee of such assets, as the case may be (such surviving
entity or transferee, as the case may be, being hereafter called “transferee”) (or its constituent owners) shall be an Institutional Investor (as hereafter defined), (iv) neither the transferee nor any of its constituent owners shall
be an adverse party, either directly or indirectly, in any litigation involving Beneficiary which seeks either injunctive relief or more than $10,000,000.00 in damages or which has as its subject 

  

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matter real estate-related assets, (v) such merger, consolidation or sale shall not cause to be inaccurate the warranties set forth in
Sections 8.1, 8.4 and 8.5 hereof, and Section 8.2 hereof (except for the ownership of stock in an entity which is traded on a national securities exchange or through the NASDAQ national marketing system and except with respect to an
offering of stock to the public pursuant to a registered securities offering, the transfer of stock on a national securities exchange or through the NASDAQ national market system); (vi) neither the transferee nor its constituent owners (other
than shareholders of an entity which is traded on a national securities exchange or through the NASDAQ national market system) shall be the subject of any bankruptcy, reorganization or insolvency proceedings or any criminal charges or proceedings;
(vii) Piedmont Partnership or another party or parties reasonably acceptable to Beneficiary shall execute agreements substantially identical to the Indemnity Agreement and the Guaranty with respect to events arising or occurring from and after
the date of such merger, consolidation or transfer; (viii) Grantor shall provide Beneficiary with evidence of compliance with all of the foregoing conditions in sufficient detail in order to enable Beneficiary to determine whether the
conditions of this Section 10.1(f) are satisfied; and (ix) Grantor or the transferee shall pay all costs and expenses incurred by Beneficiary in connection with reviewing the evidence establishing compliance with this Section 10.1(f),
including reasonable attorneys’ fees (if any). Any such transfer will not relieve Grantor of its obligations under the Note, any of the Loan Documents or the Indemnity Agreement or the obligations of Liable Parties under the Guaranty or the
Indemnity Agreement arising prior to the date of the transfer. As used herein, “Institutional Investor” shall mean (I) any bank, savings and loan association, trust company, investment bank, insurance company, private corporate or
public pension or profit sharing plan, commingled real estate fund, real estate investment trust or company traded on a national securities exchange (including the New York Stock Exchange and the NASDAQ national market system), in each case
possessing (prior to the contemplated transfer) more than $1,000,000,000.00 in assets and having (prior to the contemplated transfer) an audited net worth, or in the case of a mutual life insurance company, total surplus, as of the most recent
fiscal year end, of not less than $700,000,000.00 and (II) any entity or fund substantially all of the beneficial interests in which are owned by one or more of the institutions described in clause (I) of this sentence and which meets the
criteria described in this sentence. 
 (g) If the proposed transferee does not meet the requirements of Section 10.1(f), then the
entire Secured Indebtedness shall become due and payable concurrently with the merger, consolidation or sale of assets. If such payment of the Secured Indebtedness occurs on or after December 1, 2011 (but not during the 90 day period prior to
the Maturity Date), Grantor shall also be required to pay the Prepayment Fee set forth in Section 9 of the Note. If such payment of the Secured Indebtedness occurs prior to December 1, 2011, Grantor shall also be required to pay a
prepayment fee equal to the greater of (A)(x) the present value of all remaining payments of principal and interest including the outstanding principal due on the Maturity Date (as defined in the Note), discounted at the rate which, when compounded
monthly, is equivalent to the Treasury Rate (as defined in the Note) plus 25 basis points (one-quarter of one percentage point) compounded semi-annually, less (y) the amount of the principal then outstanding (immediately prior to the
prepayment), or (B) one percent (1%) of the amount of the principal being prepaid. 
  

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 10.2 PROHIBITION ON SUBORDINATE FINANCING. 
 (a) Except as set forth below in this Section, Grantor shall not incur or permit the incurring of (i) any financing (other than equipment leases) in
addition to the Loan that is secured by a lien, security interest or other encumbrance of any part of the Property or (ii) any pledge or encumbrance of any constituent who is a controlling member of Grantor of its interest in Grantor.

 (b) Notwithstanding the foregoing, Piedmont Lender shall be permitted to hold the Subordinate Loan (as such term is defined in that
certain Amended and Restated Subordination and Standstill Agreement of even date herewith (the “Standstill Agreement”) by and among Grantor, Beneficiary, and Piedmont Lender, which is being recorded concurrently herewith), subject to all
of the terms and provisions of the Standstill Agreement. 
 10.3 RESTRICTIONS ON ADDITIONAL OBLIGATIONS. During the term of the Loan,
Grantor shall not, without the prior written consent of Beneficiary, become liable with respect to any indebtedness or other obligation except for (i) the Loan, the Subordinate Loan, and equipment leases, (ii) Leases entered into in the
ordinary course of owning and operating the Property for the Use, (iii) other liabilities incurred in the ordinary course of owning and operating the Property for the Use but excluding any loans or borrowings, (iv) liabilities or
indebtedness disclosed in writing to and approved by Beneficiary on or before the Execution Date, (v) liabilities or indebtedness incurred solely for purposes of making capital improvements to the Property not to exceed, in the aggregate, the
amount of $750,000.00 (which limit of $750,000.00 shall automatically be reduced by the aggregate amount of any indebtedness or liability which exists and which is covered by the limitation set forth in the following clause (vi)), and (vi) any
other single item of indebtedness or liability which does not exceed $50,000.00 or, when aggregated with other items of indebtedness or liability, does not exceed $250,000.00. 
 10.4 STATEMENTS REGARDING OWNERSHIP. Grantor agrees to submit or cause to be submitted to Beneficiary within thirty (30) days after
December 31st of each calendar year during the term of this Deed of Trust and ten (10) days after any written request by Beneficiary, a sworn, notarized certificate, signed by an authorized (i) individual who is Grantor or one of the
individuals comprising Grantor, (ii) member of Grantor, (iii) partner of Grantor or (iv) officer of Grantor, as the case may be, stating since the date hereof or the last statement given hereunder (as the case may be) whether
(x) any part of the Property, or any interest in the Property, has been conveyed, transferred, assigned, encumbered (other than Permitted Exceptions), or sold, and if so, to whom; (y) any conveyance, transfer, pledge or encumbrance of any
interest in Grantor has been made by Grantor and if so, to whom; or (z) there has been any change in the individual(s) comprising Grantor or in the partners, members, shareholders or beneficiaries of Grantor from those on the Execution Date,
and if so, a description of such change or changes. The provisions of this Section shall not apply to transfers of any direct or indirect interests in Piedmont Partnership by the Shareholders. 
  

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 ARTICLE 11 
 DEFAULTS AND REMEDIES 
 11.1 EVENTS OF DEFAULT. Any of the following shall be deemed to be a
material breach of Grantor’s covenants in this Deed of Trust and shall constitute a default (“Event of Default”): 
 (a) The
failure of Grantor to pay any installment of principal, interest or principal and interest, any required escrow deposit or any other sum required to be paid under any Loan Document, whether to Beneficiary or otherwise, within seven (7) days of
the due date of such payment; 
 (b) The failure of Grantor to perform or observe any other term, provision, covenant, condition or agreement
under any Loan Document for a period of more than thirty (30) days after receipt of notice of such failure or such longer period as is necessary to cure such failure in the exercise of due diligence, but in no event longer than ninety
(90) days from the receipt of notice of such failure, provided Grantor commences the cure within the initial thirty (30) day period and continuously pursues such cure to completion; 
 (c) The filing by Grantor or one of the Liable Parties (an “Insolvent Entity”) of a voluntary petition or application for relief in bankruptcy,
the filing against an Insolvent Entity of an involuntary petition or application for relief in bankruptcy which is not dismissed within ninety (90) days, or an Insolvent Entity’s adjudication as a bankrupt or insolvent, or the filing by an
Insolvent Entity of any petition, application for relief or answer seeking or acquiescing in any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief for itself under any present or future federal, state
or other statute, law, code or regulation relating to bankruptcy, insolvency or other relief for debtors, or an Insolvent Entity’s seeking or consenting to or acquiescing in the appointment of any trustee, custodian, conservator, receiver or
liquidator of an Insolvent Entity or of all or any substantial part of the Property or of any or all of the Rents and Profits, or the making by an Insolvent Entity of any general assignment for the benefit of creditors, or the admission in writing
by an Insolvent Entity of its inability to pay its debts generally as they become due; 
 (d) If any warranty, representation, certification,
financial statement or other information made or furnished at any time pursuant to the terms of the Loan Documents by Grantor, or by any person or entity otherwise liable under any Loan Document, shall be materially false or misleading, and the
failure of Grantor to cure such breach within thirty (30) days after receipt of notice of such breach or such longer period as is necessary to cure such breach in the exercise of due diligence, but in no event longer than ninety (90) days
from the receipt of notice of such breach, provided Grantor commences the cure within the initial thirty (30) day period and continuously pursues such cure to completion; 
 (e) If Grantor shall suffer or permit the Property, or any part of the Property, to be used in a manner that might (1) impair Grantor’s title
to the Property, (2) create rights of adverse use or possession, or (3) constitute an implied dedication of any part of the Property; 
 (f) If Liable Parties shall default under the Guaranty; 
  

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 (g) If Grantor or Liable Parties shall default under the Indemnity Agreement beyond any applicable
periods of notice and/or grace set forth therein; 
 (h) If an Event of Default (as defined in the Related Deed of Trust) shall occur under
any of the Related Loan Documents; or 
 (i) If Grantor or Piedmont Lender shall default under the Standstill Agreement beyond any applicable
periods of notice and/or grace set forth therein. 
 11.2 REMEDIES UPON DEFAULT. Upon the happening of an Event of Default the Secured
Indebtedness and/or the Secured Indebtedness (as defined in the Related Deed of Trust) shall, at the option of Beneficiary, become immediately due and payable, without further notice or demand, and Beneficiary may undertake any one or more of the
following remedies: 
 (a) Foreclosure. Institute a foreclosure action in accordance with the law of the State, or take any other
action as may be allowed, at law or in equity, for the enforcement of the Loan Documents and realization on the Property or any other security afforded by the Loan Documents and/or the Related Loan Documents. In the case of a judicial proceeding,
Beneficiary may proceed to final judgment and execution for the amount of the Secured Indebtedness owed as of the date of the judgment, together with all costs of suit, reasonable attorneys’ fees and interest on the judgment at the maximum rate
permitted by law from the date of the judgment until paid. If Beneficiary is the purchaser at the foreclosure sale of the Property, the foreclosure sale price shall be applied against the total amount due Beneficiary. At any foreclosure sale, such
portion of the Property as is offered for sale may, at Beneficiary’s option, be offered for sale for one total price, and the proceeds of such sale accounted for in one account without distinction between the items of security or without
assigning to them any proportion of such proceeds, Grantor hereby waiving the application of any doctrine of marshaling. If less than all of the Property is sold at foreclosure and any of the Secured Indebtedness remains outstanding after the sale
proceeds are applied thereto, this Deed of Trust shall continue as a lien on the Property remaining unsold, and Beneficiary may at any time thereafter direct Trustee to sell the same as provided above; and/or 
 (b) Power of Sale. Institute a non-judicial foreclosure proceeding in compliance with applicable law in effect on the date foreclosure is
commenced for Trustee to sell the Property either as a whole or in separate parcels as Beneficiary may determine at public sale or sales to the highest bidder for cash, in order to pay the Secured Indebtedness and/or the 1201 Guaranteed Obligations.
If the Property is sold as separate parcels, Beneficiary may direct the order in which the parcels are sold. Trustee shall deliver to the purchaser a trustee’s deed or deeds without covenant or warranty, express or implied. Trustee may postpone
the sale of all or any portion of the Property by public announcement at the time and place of sale, and from time to time may further postpone the sale by public announcement in accordance with applicable law; and/or 
 (c) Entry. Enter into possession of the Property, lease the Improvements, collect all Rents and Profits and, after deducting all costs of
collection and administration expenses, apply the remaining Rents and Profits in such order and amounts as Beneficiary, in Beneficiary’s sole discretion, may elect to the payment of Impositions, operating costs, costs of 

  

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maintenance, restoration and repairs, Premiums and other charges, including, but not limited to, costs of leasing the Property and fees and costs of counsel
and receivers, and in reduction of the Secured Indebtedness and/or the 1201 Guaranteed Obligations; and/or 
 (d) Receivership. Have a
receiver appointed to enter into possession of the Property, lease the Property, collect the Rents and Profits and apply them as the appropriate court may direct. Beneficiary shall be entitled to the appointment of a receiver without the necessity
of proving either the inadequacy of the security or the insolvency of Grantor or any of the Liable Parties. Grantor and Liable Parties shall be deemed to have consented to the appointment of the receiver. The collection or receipt of any the Rents
and Profits by Beneficiary or any receiver shall not affect or cure any Event of Default. Beneficiary’s rights hereunder include all rights and powers permitted under the laws of the State. 
 11.3 APPLICATION OF PROCEEDS OF SALE. In the event of a sale of the Property pursuant to Section 11.2 of this Deed of Trust, to the extent
permitted by law, Beneficiary shall determine in its sole discretion the order in which the proceeds from the sale shall be applied to the payment of the Secured Indebtedness and/or the 1201 Guaranteed Obligations, including without limitation, the
expenses of the sale and of all proceedings in connection with the sale, including reasonable attorneys’ fees and expenses; Impositions, Premiums, liens, and other charges and expenses; the outstanding principal balance of the Secured
Indebtedness and/or the 1201 Guaranteed Obligations; any accrued interest; any Prepayment Fee; and any other amounts owed under any of the Loan Documents and/or the Related Loan Documents. 
 11.4 WAIVER OF JURY TRIAL. To the fullest extent permitted by law, Grantor and Beneficiary HEREBY WAIVE THEIR RESPECTIVE RIGHT TO TRIAL BY JURY in
any action, proceeding and/or hearing on any matter whatsoever arising out of, or in any way connected with, the Note, this Deed of Trust or any of the Loan Documents or the Related Loan Documents, or the enforcement of any remedy under any law,
statute, or regulation. Neither party will seek to consolidate any such action in which a jury has been waived, with any other action in which a jury trial cannot or has not been waived. Each party has received the advice of counsel with respect to
this waiver. 
 11.5 BENEFICIARY’S RIGHT TO PERFORM GRANTOR’S OBLIGATIONS. Grantor agrees that, if Grantor fails to perform
any act or to pay any money which Grantor is required to perform or pay under the Loan Documents, Beneficiary may make the payment or perform the act at the cost and expense of Grantor and in Grantor’s name or in its own name. Any money paid by
Beneficiary under this Section 11.5 shall be reimbursed to Beneficiary in accordance with Section 11.6. 
 11.6 BENEFICIARY
REIMBURSEMENT. All payments made, or funds expended or advanced by Beneficiary pursuant to the provisions of any Loan Document, shall (1) become a part of the Secured Indebtedness, (2) bear interest at the Interest Rate (as defined in
the Note) from the date such payments are made or funds expended or advanced, (3) become due and payable by Grantor upon demand by Beneficiary, and (4) bear interest at the Default Rate (as defined in the Note) from the date of such
demand. Grantor shall reimburse Beneficiary within ten (10) days after receipt of written demand for such amounts. 
  

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 11.7 FEES AND EXPENSES. If Beneficiary becomes a party (by intervention or otherwise) to any
action or proceeding affecting, directly or indirectly, Grantor, the Property or the title thereto or Beneficiary’s interest under this Deed of Trust, or employs an attorney to collect any of the Secured Indebtedness or to enforce performance
of the obligations, covenants and agreements of the Loan Documents or the Related Loan Documents, Grantor shall reimburse Beneficiary in accordance with Section 11.6 for all expenses, costs, charges and legal fees incurred by Beneficiary
(including, without limitation, the fees and expenses of experts and consultants), whether or not suit is commenced. Notwithstanding the foregoing, Grantor shall not be required to reimburse Beneficiary for such expenses to the extent Grantor is the
prevailing party in any action or other proceeding commenced by Grantor against Beneficiary. 
 11.8 WAIVER OF CONSEQUENTIAL DAMAGES.
Grantor covenants and agrees that in no event shall Beneficiary be liable for consequential damages, and to the fullest extent permitted by law, Grantor expressly waives all existing and future claims that it may have against Beneficiary for
consequential damages. 
 11.9 INDEMNIFICATION OF TRUSTEE. Except for gross negligence and willful misconduct, Trustee shall not be
liable for any act or omission or error of judgment. Trustee may rely on any document believed by it in good faith to be genuine. All money received by Trustee shall be held in trust, but need not be segregated (except to the extent required by
law), until used or applied as provided in this Deed of Trust. Trustee shall not be liable for interest on the money. Grantor shall protect, indemnify and hold harmless Trustee against all liability and expenses which Trustee may incur in the
performance of its duties. 
 11.10 ACTIONS BY TRUSTEE. At any time, upon written request of Beneficiary and presentation of this Deed
of Trust and the Note for endorsement, and without affecting the personal liability of any entity or the Liable Parties for payment of the Secured Indebtedness or the Related Indebtedness or the effect of this Deed of Trust upon the remainder of the
Property, Trustee may take such actions as Beneficiary may request which are permitted by this Deed of Trust or by applicable law. 
 11.11
SUBSTITUTION OF TRUSTEE. Beneficiary has the power and shall be entitled, at any time and from time to time, to remove Trustee or any successor trustee and to appoint another trustee in the place of Trustee or any successor trustee, by an
instrument recorded in the land records of the State. The recorded instrument shall be conclusive proof of the proper substitution and appointment of the successor Trustee without the necessity of any conveyance from the predecessor Trustee.

 11.12 NO REINSTATEMENT. Except as otherwise provided by applicable law, if an Event of Default shall have occurred and Beneficiary
or Trustee shall have commenced to exercise any of the remedies permitted hereunder, then a tender of payment by Grantor or by anyone on behalf of Grantor of the amount necessary to satisfy all sums due hereunder, or the acceptance by Beneficiary of
any such payment so tendered, shall not, without the prior consent of Beneficiary, constitute a reinstatement of the Note or this Deed of Trust. 
  

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 11.13 WAIVER RELATING TO REMEDIES. Grantor (i) waives, to the full extent provided by law,
any requirement that Beneficiary or Trustee present evidence or otherwise proceed before any court, clerk or other judicial or quasi-judicial body before exercising the power of sale contained in this Deed of Trust and (ii) agrees that upon the
occurrence of an Event of Default, neither Grantor nor anyone claiming through or under Grantor will seek to take advantage of any moratorium, reinstatement, forbearance, appraisement, valuation, stay, extension, homestead exemption or redemption
law now or hereafter in force, in order to prevent or hinder the enforcement of the provisions of this Deed of Trust and hereby waives to the full extent that it may lawfully so do, the benefit of all such laws. 
 ARTICLE 12 
 GRANTOR AGREEMENTS AND
FURTHER ASSURANCES 
 12.1 PARTICIPATION AND SALE OF LOAN. 
 (a) Beneficiary may sell, transfer or assign its entire interest or one or more participation interests in the Loan and the Loan Documents at any time and
from time to time, including, without limitation, its rights and obligations as servicer of the Loan. Beneficiary may forward to each purchaser, transferee, assignee, servicer, or participant (collectively, the “Investor”) and each
prospective Investor, all documents and information which Beneficiary now has or may hereafter acquire relating to the Secured Indebtedness and to Grantor or any Liable Parties and the Property, whether furnished by Grantor, any Liable Parties or
otherwise, as Beneficiary determines necessary or desirable. 
 (b) Grantor will cooperate with Beneficiary in furnishing such information
and providing such other assistance, reports and legal opinions as Beneficiary may reasonably request in connection with any such transaction. Grantor’s obligation to cooperate with Beneficiary does not include the obligation to incur any
expenses to any third parties. In addition, Grantor acknowledges that Beneficiary may release or disclose to potential purchasers or transferees of the Loan, or potential participants in the Loan, originals or copies of the Loan Documents, title
information, engineering reports, financial statements, operating statements, appraisals, Leases, rent rolls, and all other materials, documents and information in Beneficiary’s possession or which Beneficiary is entitled to receive under the
Loan Documents, with respect to the Loan, Grantor, Liable Parties or the Property. Grantor shall also furnish to such Investors or such prospective Investors any and all information concerning the Property, the Leases, the financial condition of
Grantor or any Liable Parties as may be requested by Beneficiary, any Investor or any prospective Investor in connection with any sale, transfer or participation interest. Beneficiary shall use reasonable efforts to advise any party to whom
Beneficiary provides any information provided by Grantor under this Section to keep such information confidential. 
 12.2 REPLACEMENT OF
NOTE. Upon notice to Grantor of the loss, theft, destruction or mutilation of the Note, Grantor will execute and deliver, in lieu of the original 

  

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Note, a replacement note, identical in form and substance to the Note and dated as of the Execution Date. Upon the execution and delivery of the replacement
note, all references in any of the Loan Documents to the Note shall refer to the replacement note. 
 12.3 GRANTOR’S ESTOPPEL.
Within ten (10) days after a request by Beneficiary, Grantor shall furnish an acknowledged written statement in form satisfactory to Beneficiary (i) setting forth the amount of the Secured Indebtedness, (ii) stating either that no
offsets or defenses exist against the Secured Indebtedness or the 1201 Guaranteed Obligations, or if any offsets or defenses are alleged to exist, their nature and extent, (iii) whether any default then exists under the Loan Documents or any
event has occurred and is continuing, which, with the lapse of time, the giving of notice, or both, would constitute such a default, and (iv) any other matters as Beneficiary may reasonably request. If Grantor does not furnish an estoppel
certificate within the 10-day period, Grantor appoints Beneficiary as its attorney-in-fact to execute and deliver the certificate on its behalf, which power of attorney shall be coupled with an interest and shall be irrevocable. 
 12.4 FURTHER ASSURANCES. Grantor shall, without expense to Beneficiary and/or Trustee, execute, acknowledge and deliver all further acts, deeds,
conveyances, mortgages, deeds of trust, assignments, security agreements, and financing statements as Beneficiary and/or Trustee shall from time to time reasonably require, to assure, convey, assign, transfer and confirm unto Beneficiary and/or
Trustee the Property and rights conveyed or assigned by this Deed of Trust or which Grantor may become bound to convey or assign to Beneficiary and/or Trustee, or for carrying out the intention or facilitating the performance of the terms of this
Deed of Trust or any of the other Loan Documents, or for filing, refiling, registering, reregistering, recording or rerecording this Deed of Trust. If Grantor fails to comply with the terms of this Section, Beneficiary may, at Grantor’s
expense, perform Grantor’s obligations for and in the name of Grantor, and Grantor hereby irrevocably appoints Beneficiary as its attorney-in-fact to do so. The appointment of Beneficiary as attorney-in-fact is coupled with an interest.

 12.5 SUBROGATION. Beneficiary shall be subrogated to the lien of any and all encumbrances against the Property paid out of the
proceeds of the Loan and to all of the rights of the recipient of such payment. 
 ARTICLE 13 
 SECURITY AGREEMENT 
 13.1 SECURITY
AGREEMENT. THIS DEED OF TRUST CREATES A LIEN ON THE PROPERTY. IN ADDITION, TO THE EXTENT THE PROPERTY IS PERSONAL PROPERTY OR FIXTURES UNDER APPLICABLE LAW, THIS DEED OF TRUST CONSTITUTES A SECURITY AGREEMENT UNDER THE DISTRICT OF COLUMBIA
UNIFORM COMMERCIAL CODE (THE “U.C.C.”) AND ANY OTHER APPLICABLE LAW WITH RESPECT TO PERSONAL PROPERTY AND IS FILED AS A FIXTURE FILING WITH RESPECT TO GOODS WHICH ARE OR ARE TO BECOME FIXTURES ON THE LAND OR THE IMPROVEMENTS. UPON THE
OCCURRENCE OF AN EVENT OF 

  

 40 

 
DEFAULT, BENEFICIARY MAY, AT ITS OPTION, PURSUE ANY AND ALL RIGHTS AND REMEDIES AVAILABLE TO A SECURED PARTY WITH RESPECT TO ANY PORTION OF THE PROPERTY,
AND/OR BENEFICIARY MAY, AT ITS OPTION, PROCEED AS TO ALL OR ANY PART OF THE PROPERTY IN ACCORDANCE WITH BENEFICIARY’S RIGHTS AND REMEDIES WITH RESPECT TO THE LIEN CREATED BY THIS DEED OF TRUST. THIS FINANCING STATEMENT SHALL REMAIN IN EFFECT AS
A FIXTURE FILING UNTIL THIS DEED OF TRUST IS RELEASED OR SATISFIED OF RECORD. WITH RESPECT TO SUCH FIXTURE FILING, THE FOLLOWING INFORMATION IS PROVIDED: 
  

			
	Name of Debtor:	  	1225 Eye Street, N.W. Associates LLC, a Delaware limited liability company
		
	Address of Debtor:	  	 c/o Piedmont Operating Partnership, L.P.
 6200 The
Corners Parkway, Suite 500
 Norcross, Georgia 30092
 Attention:
Executive Vice President, Capital Markets

		
	Name of Secured Party:	  	Metropolitan Life Insurance Company, a New York corporation
		
	Address of Secured Party:	  	 10 Park Avenue
 Morristown, New Jersey 07962

Attn: Senior Vice President, Real Estate Investments

 13.2 REPRESENTATIONS AND WARRANTIES. Grantor warrants, represents and covenants as follows:

 (a) Grantor owns the Personal Property free from any lien, security interest, encumbrance or adverse claim, except for any item of personal
property which is the subject of an equipment lease and except as otherwise expressly approved by Beneficiary in writing. Grantor will notify Beneficiary of, and will protect, defend and indemnify Beneficiary against, all claims and demands of all
persons at any time claiming any rights or interest in the Personal Property. 
 (b) The Personal Property shall not be used or bought for
personal, family, or household purposes, but shall be bought and used solely for the purpose of carrying on Grantor’s business. 
 (c)
Grantor will not remove the Personal Property without the prior written consent of Beneficiary, except the items of Personal Property which are consumed or worn out in ordinary usage shall be promptly replaced by Grantor with other Personal Property
of value equal to or greater than the value of the replaced Personal Property. 
  

 41 

 13.3 CHARACTERIZATION OF PROPERTY. The grant of a security interest to Beneficiary in this Deed of
Trust shall not be construed to limit or impair the lien of this Deed of Trust or the rights of Beneficiary with respect to any property which is real property or which the parties have agreed to treat as real property. To the fullest extent
permitted by law, everything used in connection with the production of Rents and Profits is, and at all times and for all purposes and in all proceedings, both legal and equitable, shall be regarded as real property, irrespective of whether or not
the same is physically attached to the Land and/or Improvements. 
 13.4 PROTECTION AGAINST PURCHASE MONEY SECURITY INTERESTS. It is
understood and agreed that in order to protect Beneficiary from the effect of U.C.C. Section 28:9-334, as amended from time to time and as enacted in the State, in the event that Grantor intends to purchase any goods which may become fixtures
attached to the Property, or any part of the Property, and such goods will be subject to a purchase money security interest held by a seller or any other party: 
 (a) Before executing any security agreement or other document evidencing or perfecting the security interest, Grantor shall obtain the prior written approval of Beneficiary. All requests for such written approval
shall be in writing and contain the following information: (i) a description of the fixtures (ii) the address at which the fixtures will be located; and (iii) the name and address of the proposed holder and proposed amount of the
security interest. 
 (b) Grantor shall pay all sums and perform all obligations secured by the security agreement. A default by Grantor
under the security agreement shall constitute a default under this Deed of Trust. If Grantor fails to make any payment on an obligation secured by a purchase money security interest in the Personal Property or any fixtures, Beneficiary, at its
option, may pay the secured amount and Beneficiary shall be subrogated to the rights of the holder of the purchase money security interest. 
 (c) Beneficiary shall have the right to acquire by assignment from the holder of the security interest for the Personal Property or fixtures, all contract rights, accounts receivable, negotiable or non-negotiable instruments, or other
evidence of indebtedness and to enforce the security interest as assignee. 
 (d) The provisions of subparagraphs (b) and (c) of
this Section 13.4 shall not apply if the goods which may become fixtures are of at least equivalent value and quality as the Personal Property being replaced and if the rights of the party holding the security interest are expressly
subordinated to the lien and security interest of this Deed of Trust in a manner satisfactory to Beneficiary. 
 ARTICLE 14 

RELATED LOAN PROVISIONS 
 14.1
RELATED LOAN. As used in this Deed of Trust, “1201 Guaranteed Obligations” means (a) the payment of the Related Indebtedness (as hereafter defined), and (b) the full performance by Related Borrower (as hereafter defined)
of all of the terms, covenants and obligations set forth in the Related Deed of Trust and any of the other Related Loan 

  

 42 

 
Documents (as hereafter defined). “Related Indebtedness” or “Related Loan” means the indebtedness evidenced by that certain Amended and
Restated Promissory Note of even date herewith (the “Related Note”) in the principal amount of $82,400,000.00 executed by 1201 Eye Street, N.W. Associates LLC, a Delaware limited liability company (“Related Borrower”), with
interest at the rates set forth in the Related Note, together with all renewals, modifications, consolidations and extensions of the Related Note, all additional advances or fundings made by Beneficiary thereunder, and any other amounts required to
be paid by Related Borrower under any of the Related Loan Documents, as defined below. “Related Deed of Trust” means that certain Amended and Restated Deed of Trust, Security Agreement and Fixture Filing of even date herewith executed by
Related Borrower, as grantor, in favor of Beneficiary, as beneficiary, which secures payment of the Related Note and is being recorded in the Land Records of the District of Columbia on or about the date hereof. “Related Loan Documents”
means the Loan Documents, as defined in the Related Deed of Trust. 
 14.2 LIMITED RECOURSE GUARANTY. Subject to Section 14.2(b),
Grantor hereby irrevocably and unconditionally guarantees to Beneficiary, as and for Grantor’s own debt, until final and indefeasible payment thereof has been made, payment and performance of the 1201 Guaranteed Obligations, in each case when
and as the same shall become due and payable, it being the intent of Grantor that the guaranty set forth herein shall be a guaranty of payment and not a guaranty of collection. 
 (a) This Guaranty is a primary and original obligation of Grantor, is not merely the creation of a surety relationship, and is an absolute and
unconditional guaranty of payment and performance which shall remain in full force and effect without respect to future changes in conditions, including any change of law or any invalidity or irregularity with respect to the Related Loan Documents
or the execution and delivery thereof. Grantor agrees that it is directly, jointly and severally with any and all other guarantors of the 1201 Guaranteed Obligations, liable to Beneficiary, that the obligations of Grantor hereunder are independent
of the obligations of Related Borrower or any other guarantor, and that a separate action may be brought against each person or entity signing as Grantor whether such action is brought against Related Borrower or any other guarantor or whether
Related Borrower or any such other guarantor is joined in such action. Grantor agrees that its liability hereunder shall be immediate and shall not be contingent upon the exercise or enforcement by Beneficiary of whatever remedies it may have
against Related Borrower or any other guarantor, or the enforcement of any lien or realization upon any security Beneficiary may at any time possess. Grantor agrees that any release which may be given by Beneficiary to Related Borrower or any other
guarantor shall not release Grantor. Grantor consents and agrees that Beneficiary shall be under no obligation to marshal any assets of Related Borrower or any other guarantor in favor of Grantor, or against or in payment of any or all of the
Guaranteed Obligations. 
 (b) Notwithstanding any other provisions of this Guaranty, the rights of Beneficiary and the obligations of
Grantor hereunder are limited by Section 9.1 hereof; provided that nothing herein shall in any way release, impair or otherwise affect any of the Related Loan Documents or any environmental indemnification agreements (including any Unsecured
Indemnity Agreements) to which Grantor, Related Borrower or any guarantor is a party or the validity hereof or thereof, or the lien of any mortgage or deed of trust. 
  

 43 

 14.3 WAIVERS. Grantor absolutely, unconditionally, knowingly, and expressly waives: 
 (a) (i) Notice of acceptance hereof; (ii) notice of any loans or other financial accommodations made or extended under the Related Loan Documents or
the creation or existence of any 1201 Guaranteed Obligations; (iii) notice of the amount of the 1201 Guaranteed Obligations, subject, however, to Grantor’s right to make inquiry of Beneficiary to ascertain the amount of the 1201 Guaranteed
Obligations at any reasonable time; (iv) notice of any adverse change in the financial condition of Related Borrower or of any other fact that might increase Grantor’s risk hereunder; (v) notice of presentment for payment, demand,
protest, and notice thereof as to any promissory notes or other instruments among the Related Loan Documents; (vi) notice of any event of default under the Related Loan Documents; and (vii) all other notices (except if such notice is
specifically required to be given to Grantor hereunder or under any Related Loan Document to which Grantor is a party) and demands to which Grantor might otherwise be entitled. 
 (b) Grantor’s right by statute or otherwise to require Beneficiary to institute suit against Related Borrower or to exhaust any rights and remedies
which Beneficiary has or may have against Related Borrower or any collateral for the 1201 Guaranteed Obligations provided by Related Borrower, Grantor or any third party. In this regard, Grantor agrees that it is bound to the payment of all 1201
Guaranteed Obligations, whether now existing or hereafter accruing, as fully as if such 1201 Guaranteed Obligations were directly owing to Beneficiary by Grantor. Grantor further waives any defense arising by reason of any disability or other
defense (other than the defense that the 1201 Guaranteed Obligations shall have been fully and finally performed and indefeasibly paid) of Related Borrower or by reason of the cessation from any cause whatsoever of the liability of Related Borrower
in respect thereof. 
 (c) (i) Any rights to assert against Beneficiary any defense (legal or equitable), set-off, counterclaim, or claim
which Grantor may now or at any time hereafter have against Related Borrower or any other party liable to Beneficiary; (ii) any defense, set-off, counterclaim, or claim, of any kind or nature, arising directly or indirectly from the present or
future lack of perfection, sufficiency, validity, or enforceability of the 1201 Guaranteed Obligations or any security therefor; (iii) any defense Grantor has to performance hereunder, and any right Grantor has to be exonerated arising by
reason of: the impairment or suspension of Beneficiary’s rights or remedies against Related Borrower; the alteration by Beneficiary of the 1201 Guaranteed Obligations; any discharge of the 1201 Guaranteed Obligations by operation of law as a
result of Beneficiary’s intervention or omission; or the acceptance by Beneficiary of anything in partial satisfaction of the 1201 Guaranteed Obligations; and (iv) the benefit of any statute of limitations affecting Grantor’s
liability hereunder or the enforcement thereof, and any act which shall defer or delay the operation of any statute of limitations applicable to the 1201 Guaranteed Obligations shall similarly operate to defer or delay the operation of such statute
of limitations applicable to Grantor’s liability hereunder. 
 (d) Grantor absolutely, unconditionally, knowingly, and expressly waives
any defense arising by reason of or deriving from (i) any claim or defense based upon an election of remedies by Beneficiary; or (ii) any election by Beneficiary under Bankruptcy Code Section 1111(b) to limit the amount of, or any
collateral securing, its claim against Related Borrower. 
  

 44 

 (e) Until such time as the Related Indebtedness and all 1201 Guaranteed Obligations have been
indefeasibly paid in full, Grantor hereby absolutely, unconditionally, knowingly, and expressly waives: (i) any right of subrogation Grantor has or may have as against Related Borrower with respect to the 1201 Guaranteed Obligations;
(ii) any right to proceed against Related Borrower or any other person or entity, now or hereafter, for contribution, indemnity, reimbursement, or any other suretyship rights and claims, whether direct or indirect, liquidated or contingent,
whether arising under express or implied contract or by operation of law, which Grantor may now have or hereafter have as against Related Borrower with respect to the 1201 Guaranteed Obligations; and (iii) any right to proceed or seek recourse
against or with respect to any property or asset of Related Borrower. 
 14.4 RELEASES. Grantor consents and agrees that, without
notice to or by Grantor and without affecting or impairing the obligations of Grantor hereunder, Beneficiary may, by action or inaction: 
 (a) Compromise, settle, extend the duration or the time for the payment of, or discharge the performance of, or may refuse to or otherwise not enforce this Deed of Trust, the other Loan Documents, the Indemnity Agreement, the Related Loan
Documents or any part thereof, or the Indemnity Agreement for the Related Loan, with respect to Related Borrower or any other person or entity; 
 (b) Release Related Borrower or any other person or entity or grant other indulgences to Related Borrower or any other person or entity in respect thereof; 
 (c) Amend or modify in any manner and at any time (or from time to time) any of the Loan Documents; or 
 (d)
Release or substitute any other guarantor, if any, of the 1201 Guaranteed Obligations, or enforce, exchange, release, or waive any security for the 1201 Guaranteed Obligations or any other guaranty of the 1201 Guaranteed Obligations, or any portion
thereof. 
 14.5 NO ELECTION. Beneficiary shall have all of the rights to seek recourse against Grantor to the fullest extent provided
for herein, and no election by Beneficiary to proceed in one form of action or proceeding, or against any party, or on any obligation, shall constitute a waiver of Beneficiary’s right to proceed in any other form of action or proceeding or
against other parties unless Beneficiary has expressly waived such right in writing. Specifically, but without limiting the generality of the foregoing, no action or proceeding by Beneficiary under any document or instrument evidencing the 1201
Guaranteed Obligations shall serve to diminish the liability of Grantor under this Deed of Trust except to the extent that Beneficiary finally and unconditionally shall have realized indefeasible payment by such action or proceeding 
 14.6 INDEFEASIBLE PAYMENT. The 1201 Guaranteed Obligations and the Related Indebtedness shall not be considered indefeasibly paid for purposes of
this Deed of Trust unless and until all payments to Beneficiary are no longer subject to any right on the part 

  

 45 

 
of any person, including Related Borrower, Related Borrower as a debtor in possession, or any trustee (whether appointed under the Bankruptcy Code or
otherwise) of any of Related Borrower’s assets, to invalidate or set aside such payments or to seek to recoup the amount of such payments or any portion thereof, or to declare same to be fraudulent or preferential. Upon such full and final
performance and indefeasible payment of the 1201 Guaranteed Obligations whether by Grantor or Related Borrower, Beneficiary shall have no obligation whatsoever to transfer or assign its interest in the Related Loan Documents to Grantor. In the event
that, for any reason, any portion of such payments to Beneficiary is set aside or restored, whether voluntarily or involuntarily, after the making thereof, then the obligation intended to be satisfied thereby shall be revived and continued in full
force and effect as if said payment or payments had not been made, and Grantor shall be liable for the full amount Beneficiary is required to repay plus any and all costs and expenses (including attorneys’ fees and expenses incurred pursuant to
proceedings arising under the Bankruptcy Code) paid by Beneficiary in connection therewith. 
 14.7 FINANCIAL CONDITION OF GRANTOR.
Grantor represents and warrants to Beneficiary that: 
 (a) Grantor is materially interested in the financial success of Related Borrower, and
maintains significant business relationships with Related Borrower; 
 (b) Grantor expects to derive material benefits from the contemplated
uses of the proceeds of the Related Loan, and desires that Beneficiary make the Related Loan. Grantor is familiar with the transactions contemplated by the Related Note and the other Related Loan Documents and Grantor has read and understands the
terms and conditions of the Loan Documents and the Related Loan Documents. 
 (c) Grantor is currently informed of the financial and other
condition of Related Borrower and of all other circumstances which a diligent inquiry would reveal and which bear upon the risk of nonpayment of the 1201 Guaranteed Obligations. Grantor hereby covenants that Grantor will continue to keep informed of
Related Borrower’s financial condition, the financial condition of other guarantors, if any, and of all other circumstances which bear upon the risk of nonpayment or nonperformance of the 1201 Guaranteed Obligations 
 14.8 SUBORDINATION. Grantor hereby agrees that any and all present and future indebtedness of Related Borrower owing to Grantor is deferred,
postponed in favor of and subordinated to the prior payment, in full, in cash, of the 1201 Guaranteed Obligations and the Related Indebtedness. In this regard, no payment of any kind whatsoever shall be made with respect to such indebtedness until
the 1201 Guaranteed Obligations and the Related Indebtedness have been indefeasibly paid in full. Until payment in full of the 1201 Guaranteed Obligations and the Related Indebtedness, Grantor agrees not to accept any payment or satisfaction of any
kind of indebtedness of Related Borrower to Grantor and hereby assigns such indebtedness to Beneficiary, including the right to file proof of claim and to vote thereon in connection with any proceeding under the Bankruptcy Code, including the right
to vote on any plan of reorganization. 
  

 46 

 ARTICLE 15 
 MISCELLANEOUS COVENANTS 
 15.1 NO WAIVER. No single or partial exercise by Beneficiary and/or
Trustee, or delay or omission in the exercise by Beneficiary and/or Trustee, of any right or remedy under the Loan Documents or the Related Loan Documents shall preclude, waive or limit the exercise of any other right or remedy. Beneficiary shall at
all times have the right to proceed against any portion of, or interest in, the Property without waiving any other rights or remedies with respect to any other portion of the Property. No right or remedy under any of the Loan Documents or the
Related Loan Documents is intended to be exclusive of any other right or remedy but shall be cumulative and may be exercised concurrently with or independently from any other right and remedy under any of the Loan Documents or the Related Loan
Documents or under applicable law. 
 15.2 NOTICES. All notices, demands and requests given or required to be given by, pursuant to,
or relating to, this Deed of Trust shall be in writing. All notices shall be deemed to have been properly given if mailed by United States registered or certified mail, with return receipt requested, postage prepaid, or by United States Express Mail
or other comparable overnight courier service to the parties at the addresses set forth in the Defined Terms (or at such other addresses as shall be given in writing by any party to the others) and shall be deemed complete upon receipt or refusal to
accept delivery as indicated in the return receipt or in the receipt of such United States Express Mail or courier service. 
 15.3 HEIRS
AND ASSIGNS; TERMINOLOGY. 
 (a) This Deed of Trust applies to, inures to the benefit of, and binds Grantor, Beneficiary, Liable Parties
and Trustee, their heirs, legatees, devisees, administrators, executors, successors and assigns. The term “Grantor” shall include both the original Grantor and any subsequent owner or owners of any of the Property. The term
“Beneficiary” shall include both the original Beneficiary and any subsequent holder or holders of the Note. The term “Trustee” shall include both the original Trustee and any subsequent successor or additional trustee(s) acting
under this Deed of Trust. The term “Liable Parties” shall include both the original Liable Parties and any subsequent or substituted Liable Parties. 
 (b) In this Deed of Trust, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural. 
 (c) If more than one party executes this Deed of Trust as Grantor, the obligations of such parties shall be the joint and several obligations of each of
them. 
 15.4 SEVERABILITY. If any provision of this Deed of Trust should be held unenforceable or void, then that provision shall be
separated from the remaining provisions and shall not affect the validity of this Deed of Trust except that if the unenforceable or void provision relates to the payment of any monetary sum, then, Beneficiary may, at its option, declare the Secured
Indebtedness immediately due and payable. 
  

 47 

 15.5 APPLICABLE LAW. This Deed of Trust shall be construed and enforced in accordance with the
laws of the State. 
 15.6 CAPTIONS. The captions are inserted only as a matter of convenience and for reference, and in no way
define, limit, or describe the scope or intent of any provisions of this Deed of Trust. 
 15.7 TIME OF THE ESSENCE. Time shall be of
the essence with respect to all of Grantor’s obligations under this Deed of Trust and the other Loan Documents. 
 15.8 NO
MERGER. In the event that Beneficiary should become the owner of the Property, there shall be no merger of the estate created by this Deed of Trust with the fee estate in the Property. 
 15.9 NO MODIFICATIONS. This Deed of Trust may not be changed, amended or modified, except in a writing expressly intended for such purpose and
executed by Grantor and Beneficiary. 
 15.10 COUNTERPARTS. This Agreement may be executed in any number of counterparts and by the
different parties hereto on separate counterparts each of which, when so executed, shall be deemed an original, but all such counterparts shall constitute but one and the same instrument. 
 [Signature on following page] 
  

 48 

 IN WITNESS WHEREOF, Grantor has executed this Deed of Trust, or has caused this Deed of Trust to be
executed by its duly authorized representative(s) as of the Execution Date. 
  

					
	 1225 EYE STREET, N.W. ASSOCIATES LLC,
 a
Delaware limited liability company

		
	By:	 	Piedmont Washington Properties, Inc., a Maryland corporation, formerly known as Wells Washington Properties, Inc., its Manager
			
		 	By:	 	  

		 	Name:	 	  

		 	Its:	 	  

 [Seal] 
  

					
	Address:	 	6200 The Corners Parkway, Suite 500
		 	Norcross, Georgia 30092
		 	Attention:	 	Executive Vice President, Capital Markets

  

 49 

 EXHIBIT A 
 PROPERTY DESCRIPTION 
 Lot(s) numbered Forty-seven (47) in Square numbered Two Hundred Eighty-five (285) in
a subdivision made by 1225 Eye Street, N.W. Associates Limited Partnership as per plat recorded in Liber 173 at folio 67 in the Office of the Surveyor for the District of Columbia. 

 EXHIBIT B 
 LEASING GUIDELINES 
 “Leasing Guidelines” shall mean the guidelines approved in writing by Beneficiary,
from time to time, with respect to the leasing of the Property. The following are the initial Leasing Guidelines: 
 (a) All Leases shall be
on the standard form of lease approved by Beneficiary in writing (subject to modifications reasonably approved by Beneficiary and customary to similar properties and landlords in the East End submarket of Washington, D.C.); 
 (b) All Leases shall have an initial term of at least five (5) years but not more than ten (10) years; 
 (c) Except for the renewal of Existing Leases, none of the Leases shall cover more than 24,000 square feet of net leasable area; 
 (d) All Leases shall have an annual minimum rent and net effective rent at least equal to market rates per square foot of net leasable area in the East
End submarket of the Washington D.C. MSA; 
 (e) All net Leases shall contain provisions requiring the tenant to pay its proportionate share
of operating expenses and taxes, and all other Leases shall contain provisions requiring the tenant to pay, after the first year, its proportionate share of increases in taxes and operating expenses; and 
 (f) No Leases shall be entered into without the written approval of Beneficiary if there exists an Event of Default. 
 Notwithstanding the foregoing, paragraphs (a), (b), (c), and (e) above shall not be applicable to Leases of retail space on the first floor of the
Improvements provided that such Leases shall have an annual minimum rent and net effective rent at least equal to market rates and contain terms which are otherwise consistent with those then prevailing in the market. 

 STATE OF
                                 
 COUNTY OF
                            : ss: 
 This instrument was acknowledged before me on October     , 2007 by
                    , the
                     of Piedmont Washington Properties, Inc., the Manager of 1225 Eye Street, N.W. Associates LLC, as the free act and deed of
said 1225 Eye Street, N.W. Associates LLC. 
  

	
	  

	Notary Public

 [SEAL] 
 My
Commission expires:Executive Employment Agreement

 Exhibit 10.22 
 NEUROGESX, INC. 
 EXECUTIVE EMPLOYMENT AGREEMENT 
 This Executive Employment Agreement (the “Agreement”) is made and entered into by and between Russell Kawahata (the “Executive”) and
NeurogesX, Inc., a Delaware Corporation (the “Company”), effective as of November 1, 2007 (the “Effective Date”). 
 RECITALS 
 WHEREAS: It is expected that the Company from time to time will consider the possibility of an acquisition by another
company or other change of control. The Board of Directors of the Company (the “Board”) recognizes that such consideration can be a distraction to Executive and can cause Executive to consider alternative employment opportunities. The
Board has determined that it is in the best interests of the Company and its shareholders to assure that the Company will have the continued dedication and objectivity of Executive, notwithstanding the possibility, threat or occurrence of a Change
of Control of the Company. 
 WHEREAS: The Board believes that it is in the best interests of the Company and its shareholders to provide Executive with an
incentive to continue his or her employment and to motivate Executive to maximize the value of the Company upon a Change of Control for the benefit of its shareholders. 
 WHEREAS: The Board believes that it is imperative to provide Executive with certain severance benefits upon Executive’s termination of employment following a Change of Control. These benefits will provide
Executive with enhanced financial security and incentive and encouragement to remain with the Company notwithstanding the possibility of a Change of Control. 
 WHEREAS: Certain capitalized terms used in the Agreement are defined in Section 12 below. 
 AGREEMENT 
 NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties hereto agree as follows: 
 1. Term of Agreement. This Agreement shall terminate upon the date that all of the obligations of the parties hereto with respect to this
Agreement have been satisfied. 
 2. At-Will Employment. The Company and Executive acknowledge that Executive’s employment is and
shall continue to be at-will, as defined under applicable law. If Executive’s employment terminates for any reason, including (without limitation) any termination prior to a Change of Control, Executive shall not be entitled to any payments,
benefits, damages, awards or compensation other than as provided by this Agreement, or by law. 
 3. Duties and Scope of Employment.

 (a) Positions and Duties. As of the Effective Date, Executive will serve as Vice President, Pharmaceutical Science.
Executive will render such business and professional services in the performance of his duties, consistent with Executive’s position within the Company, as will reasonably be assigned to him by the Company’s Board. 

 (b) Obligations. During such time as the Executive is employed by the Company,
Executive will perform his duties faithfully and to the best of his ability and will devote his full business efforts and time to the Company. During such time as the Executive is employed by the Company, Executive agrees not to actively engage in
any other employment, occupation or consulting activity for any material direct or indirect remuneration without the prior approval of the Board. 
 4. Compensation. 
 (a) Base Salary. During such time as the Executive is employed by the Company, the
Company will pay Executive an annual salary as determined in the discretion of the Board or any committee thereof. The base salary will be paid periodically in accordance with the Company’s normal payroll practices and will be subject to the
usual, required withholding. Executive’s salary will be subject to review and adjustments will be made based upon the Company’s normal performance review practices. 
 (b) Performance Bonus. Executive will be eligible to receive an annual bonus and other bonuses, less applicable withholding taxes,
as determined by the Board or any committee thereof in the Board’s or such committee’s sole discretion. 
 (c)
Equity Compensation. Executive will be eligible to receive stock and option grants, and other equity compensation awards, as determined by the Board or any committee thereof in the Board’s or such committee’s sole discretion.

 5. Employee Benefits. During the time that Executive is an employee of the Company, Executive will be entitled to participate in
the Benefit Plans currently and hereafter maintained by the Company of general applicability to other senior executives of the Company. The Company reserves the right to cancel or change the Benefit Plans it offers to its employees at any time.

 6. Vacation. Executive will be entitled to vacation in accordance with the Company’s vacation policy, with the timing and
duration of specific vacations mutually and reasonably agreed to by the parties hereto. 
 7. Expenses. The Company will reimburse
Executive for reasonable travel, entertainment or other expenses incurred by Executive in the furtherance of or in connection with the performance of Executive’s duties as an employee of the Company, in accordance with the Company’s
expense reimbursement policy as in effect from time to time. 
 8. Double Trigger Change of Control and Termination. Upon the double
trigger of a Change of Control of the Company and termination of Executive as defined in Section 9, Executive will be eligible for Severance Benefits as described in Section 9. 

 9. Severance Benefits. 
 (a) Involuntary Termination Following a Change of Control. If within eighteen (18) months following a Change of Control
(X) (i) Executive terminates his or her employment with the Company (or any parent or subsidiary of the Company) for Good Reason or (ii) the Company (or any parent or subsidiary of the Company) terminates Executive’s employment
for other than Cause, and (Y) Executive signs and does not revoke a standard release of claims with the Company in a form reasonably acceptable to the Company, then Executive shall receive the following severance from the Company: 

(i) Severance Payment. Executive will be entitled to (i) receive continuing payments of severance pay (less applicable
withholding taxes) at a rate equal to his base salary rate, as then in effect, for a period of six (6) months from the date of such termination, to be paid periodically in accordance with the Company’s normal payroll policies; and
(ii) a lump-sum payment equal to 50% of Executive’s target annual bonus as of the date of such termination. 
 (ii)
Options; Restricted Stock. Fifty percent (50%) of Executive’s then outstanding options to purchase shares of the Company’s Common Stock (the “Options”) shall immediately vest and become exercisable (that is, in
addition to the shares subject to the Options which have vested and become exercisable as of the date of such termination), but in no event shall the number of shares subject to such Options which so vest exceed the total number of shares subject to
such Options. Additionally, all of the shares of the Company’s Common Stock then held by Executive subject to a Company right of repurchase (the “Restricted Stock”) shall immediately vest and have such Company right of repurchase with
respect to such shares of Restricted Stock lapse (that is, in addition to the shares of Restricted Stock which have vested as of the date of such termination), but in no event shall the number of shares which so vest exceed the number of shares of
Restricted Stock outstanding immediately prior to such termination. 
 (iii) Continued Employee Benefits. Executive
shall receive Company-paid coverage for Executive and Executive’s eligible dependents under the Company’s Benefit Plans for a period equal to the shorter of (i) nine (9) months or (ii) such time as Executive secures
employment with benefits generally similar to those provided in the Company’s Benefit Plans. 
 (b) Timing of
Severance Payments. Any lump-sum severance payment to which Executive is entitled shall be paid by the Company to Executive in cash and in full, not later than ten (10) calendar days after the date of the termination of Executive’s
employment as provided in Section 9(a), and any other severance payments shall be paid in accordance with normal payroll policies as provided in Section 9(a). If Executive should die before all amounts have been paid, such unpaid amounts
shall be paid in a lump-sum payment to Executive’s designated beneficiary, if living, or otherwise to the personal representative of Executive’s estate. 
 (c) Voluntary Resignation; Termination for Cause. If Executive’s employment with the Company terminates (i) voluntarily
by Executive other than for Good Reason or (ii) for Cause by the Company, then Executive shall not be entitled to receive severance or other benefits except for those as may then be established under the Company’s then existing severance
and Benefits Plans or pursuant to other written agreements with the Company. 

 (d) Disability; Death. If the Company terminates Executive’s employment as a
result of Executive’s Disability, or Executive’s employment terminates due to his or her death, then Executive shall not be entitled to receive severance or other benefits except for severance amounts paid to Executive prior to the date of
such termination and except for those as may then be established under the Company’s then existing written severance and Benefits Plans or pursuant to other written agreements with the Company. 
 (e) Termination Apart from Change of Control. In the event Executive’s employment is terminated for any reason, either prior
to the occurrence of a Change of Control or after the eighteen (18) month period following a Change of Control, then Executive shall be entitled to receive severance and any other benefits only as may then be established under the
Company’s existing written severance and Benefits Plans, if any, or pursuant to any other written agreements with the Company. 
 (f) Exclusive Remedy. In the event of a termination of Executive’s employment within eighteen (18) months following a Change of Control, the provisions of this Section 9 are intended to be and are exclusive and in lieu
of any other rights or remedies to which Executive or the Company may otherwise be entitled, whether at law, tort or contract, in equity, or under this Agreement. Executive shall be entitled to no benefits, compensation or other payments or rights
upon termination of employment following a Change in Control other than those benefits expressly set forth in this Section 9. 
 10.
Conditional Nature of Severance Payments. 
 (a) Non-Solicitation. Until the date one (1) year after the
termination of Executive’s employment with the Company for any reason, Executive agrees not, either directly or indirectly, to solicit, induce, attempt to hire, recruit, encourage, take away, hire any employee of the Company or any successor
entity or cause an employee to leave his or her employment either for Executive or for any other entity or person. Additionally, Executive acknowledges that Executive’s right to receive the severance payments set forth in Section 9 (to the
extent Executive is otherwise entitled to such payments) are contingent upon Executive complying with this Section 10 and upon any breach by Executive of this Section 10: (i) Executive shall refund to the Company all cash paid to
Executive pursuant to Section 9 of this Agreement; and (ii) all severance benefits pursuant to this Agreement shall immediately cease. 
 (b) Understanding of Obligations. Executive represents that he (i) is familiar with the foregoing covenant not to solicit, and (ii) is fully aware of his obligations hereunder, including, without
limitation, the reasonableness of the length of time, scope and geographic coverage of such covenant. 
 11. Limitation of Payments.
In the event that the severance and other benefits provided for in this Agreement or otherwise payable to Executive (i) constitute “parachute payments” within the meaning of Section 280G of the Internal Revenue Code of 1986, as
amended (the “Code”) and (ii) but for this Section 11, would be subject to the excise tax imposed by Section 4999 of the Code, then Executive’s benefits hereunder shall be either: 
 (a) delivered in full, or 

 (b) delivered as to such lesser extent which would result in no portion of such severance
benefits being subject to excise tax under Section 4999 of the Code, 
 whichever of the foregoing amounts, taking into account the applicable federal,
state and local income taxes and the excise tax imposed by Section 4999, results in the receipt by Executive on an after-tax basis, of the greatest amount of severance benefits, notwithstanding that all or some portion of such severance
benefits may be taxable under Section 4999 of the Code. Unless the Company and Executive otherwise agree in writing, any determination required under this Section 11 shall be made in writing by the Company’s independent public
accountants immediately prior to Change of Control (the “Accountants”), whose determination shall be conclusive and binding upon Executive and the Company for all purposes. For purposes of making the calculations required by this
Section 11, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code. The Company and
Executive shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section 11. The Company shall bear all costs the Accountants may reasonably incur in
connection with any calculations contemplated by this Section 11. If there is a reduction pursuant to this Section 11 of the severance benefits to be delivered to Executive, such reduction shall first be applied to any cash amounts to be
delivered to the Executive under this Agreement and thereafter to any other severance benefits of Executive hereunder. 
 12. Definition
of Terms. The following terms referred to in this Agreement shall have the following meanings: 
 (a) Benefit
Plans. “Benefit Plans” means plans, policies or arrangements that the Company sponsors (or participates in) and that immediately prior to Executive’s termination of employment provide Executive and/or Executive’s eligible
dependents with medical, dental, vision and/or financial counseling benefits. Benefit Plans do not include any other type of benefit (including, but not by way of limitation, disability, life insurance or retirement benefits). A requirement that the
Company provide Executive and Executive’s eligible dependents with coverage under the Benefit Plans will not be satisfied unless the coverage is no less favorable than that provided to Executive and Executive’s eligible dependents
immediately prior to Executive’s termination of employment. Notwithstanding any contrary provision of this Section 12, but subject to the immediately preceding sentence, the Company may, at its option, satisfy any requirement that the
Company provide coverage under any Benefit Plan by instead providing coverage under a separate plan or plans providing coverage that is no less favorable or by paying Executive a lump-sum payment sufficient to provide Executive and Executive’s
eligible dependents with equivalent coverage under a third party plan that is reasonably available to Executive and Executive’s eligible dependents. 
 (b) Cause. “Cause” means any of the following: (i) the failure by you to substantially perform your duties with the Company (other than due to your incapacity as a result of physical or mental
illness for a period not to exceed 90 days); (ii) the engaging by you in conduct which is materially injurious to the Company, its business or reputation, or which constitutes gross misconduct; (iii) your material breach of the terms of
this Agreement, the Invention Agreement or any other agreements between you and the Company; (iv) the material breach or taking of any action in material contravention of the policies of the Company adopted by the Board or any committee 

 
thereof, including, without limitation, the Company’s policies adopted by the Board of Directors or any committee thereof (including, without
limitation, a Code of Ethics, Insider Trading Compliance Program, Disclosure Process and Procedures or Corporate Governance Guidelines, if any such policies are adopted by the Board of Directors); (v) your conviction for or admission or plea of
no contest with respect to a felony; or (vi) an act of fraud against the Company, the misappropriation of material property belonging to the Company, or an act of violence against an officer, director, employee or consultant of the Company;
provided, however, that in the event that any of the foregoing events in (i), (iii) or (iv) is capable of being cured, the Company shall provide written notice to you describing the nature of such event, and you shall thereafter have
thirty (30) business days to cure such event. 
 (c) Change of Control. “Change of Control” means the
occurrence of any of the following: 
 (i) Any “person” (as such term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended) becomes the “beneficial owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the total voting
power represented by the Company’s then outstanding voting securities; or 
 (ii) Any action or event occurring within a
two-year period, as a result of which fewer than a majority of the directors are Incumbent Directors. “Incumbent Directors” shall mean directors who either (A) are directors of the Company as of the date hereof, or (B) are
elected, or nominated for election, to the Board with the affirmative votes of at least a majority of the Incumbent Directors at the time of such election or nomination (but shall not include an individual whose election or nomination is in
connection with an actual or threatened proxy contest relating to the election of directors to the Company); or 
 (iii) The
consummation of a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent
(either by remaining outstanding or by being converted into voting securities of the surviving entity) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity
outstanding immediately after such merger or consolidation; or 
 (iv) The consummation of the sale, lease or other
disposition by the Company of all or substantially all the Company’s assets. 
 Notwithstanding anything to the contrary in this
Agreement, a sale and issuance of capital stock of the Company in one transaction or a series of related transactions in a bona fide venture capital financing for capital raising purposes in which the holders of capital stock of the Company before
the financing do not hold at least a majority of the voting power of the Company after the financing shall not constitute a “Change of Control” for purposes of this Agreement 
 (d) Disability. “Disability” shall mean that Executive has been unable to perform his Company duties as the result of his
incapacity due to physical or mental illness, and such inability, at least twenty-six (26) weeks after its commencement, is determined to be total and permanent by a 

 
physician selected by the Company or its insurers and reasonably acceptable to Executive or Executive’s legal representative. Termination resulting from
Disability may only be effected after at least thirty (30) days’ written notice by the Company of its intention to terminate Executive’s employment. In the event that Executive resumes the performance of substantially all of his or
her duties hereunder before the termination of his or her employment becomes effective, the notice of intent to terminate shall automatically be deemed to have been revoked. 
 (e) Good Reason. “Good Reason” means any of the following unless such event is agreed to, in writing or as set forth
below, by you: (i) a material reduction in your salary or benefits (excluding the substitution of substantially equivalent compensation and benefits), other than as a result of a reduction in compensation affecting employees of the Company, or
its successor entity, generally; (ii) a material diminution of your duties or responsibilities relative to your duties and responsibilities in effect immediately prior to the Change of Control, provided however, that a mere change in your title
or reporting relationship alone shall not constitute “Good Reason;” (iii) relocation of your place of employment to a location more than 35 miles from the Company’s office location at the time of the Change of Control; and
(iv) failure of a successor entity in any Change of Control to assume and perform under this Agreement. If any of the events set forth above shall occur, you shall give prompt written notice of such event to the Company, or its successor
entity, and if such event is not cured within thirty (30) days from such notice you may exercise your rights to resign for Good Reason, provided that if you have not exercised such right within 45 days of the date of such notice you shall be
deemed to have agreed to the occurrence of such event. 
 13. Arbitration. 
 (a) General. In consideration of Executive’s service to the Company, its promise to arbitrate all employment related disputes
and Executive’s receipt of the compensation, pay raises and other benefits paid to Executive by the Company, at present and in the future, Executive agrees that any and all controversies, claims, or disputes with anyone (including the Company
and any employee, officer, director, shareholder or benefit plan of the Company in their capacity as such or otherwise) arising out of, relating to, or resulting from Executive’s service to the Company under this Agreement or otherwise or the
termination of Executive’s service with the Company, including any breach of this Agreement, will be subject to binding arbitration under the Arbitration Rules set forth in California Code of Civil Procedure Section 1280 through 1294.2,
including Section 1283.05 (the “Rules”) and pursuant to California law. Disputes which Executive agrees to arbitrate, and thereby agrees to waive any right to a trial by jury, include any statutory claims under state or federal
law, including, but not limited to, claims under Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act of 1990, the Age Discrimination in Employment Act of 1967, the Older Workers Benefit Protection Act, the California
Fair Employment and Housing Act, the California Labor Code, claims of harassment, discrimination or wrongful termination and any statutory claims. Executive further understands that this Agreement to arbitrate also applies to any disputes that the
Company may have with Executive. 
 (b) Procedure. Executive agrees that any arbitration will be administered by the
American Arbitration Association (“AAA”) and that a neutral arbitrator will be selected in a manner consistent with its National Rules for the Resolution of Employment Disputes. The arbitration proceedings will allow for discovery
according to the rules set forth in the National Rules for the Resolution of Employment Disputes or California Code of Civil Procedure. Executive agrees that 

 
the arbitrator will have the power to decide any motions brought by any party to the arbitration, including motions for summary judgment and/or adjudication
and motions to dismiss and demurrers, prior to any arbitration hearing. Executive agrees that the arbitrator will issue a written decision on the merits. Executive also agrees that the arbitrator will have the power to award any remedies, including
attorneys’ fees and costs, available under applicable law. Executive understands the Company will pay for any administrative or hearing fees charged by the arbitrator or AAA except that Executive will pay the first $125.00 of any filing fees
associated with any arbitration Executive initiates. Executive agrees that the arbitrator will administer and conduct any arbitration in a manner consistent with the Rules and that to the extent that the AAA’s National Rules for the Resolution
of Employment Disputes conflict with the Rules, the Rules will take precedence. 
 (c) Remedy. Except as provided by
the Rules, arbitration will be the sole, exclusive and final remedy for any dispute between Executive and the Company. Accordingly, except as provided for by the Rules, neither Executive nor the Company will be permitted to pursue court action
regarding claims that are subject to arbitration. Notwithstanding, the arbitrator will not have the authority to disregard or refuse to enforce any lawful Company policy, and the arbitrator will not order or require the Company to adopt a policy not
otherwise required by law which the Company has not adopted. 
 (d) Availability of Injunctive Relief. In addition to
the right under the Rules to petition the court for provisional relief, Executive agrees that any party may also petition the court for injunctive relief where either party alleges or claims a violation of this Agreement or the Confidentiality
Agreement or any other agreement regarding trade secrets, confidential information, nonsolicitation or Labor Code §2870. In the event either party seeks injunctive relief, the prevailing party will be entitled to recover reasonable costs
and attorneys fees. 
 (e) Administrative Relief. Executive understands that this Agreement does not prohibit Executive
from pursuing an administrative claim with a local, state or federal administrative body such as the Department of Fair Employment and Housing, the Equal Employment Opportunity Commission or the workers’ compensation board. This Agreement does,
however, preclude Executive from pursuing court action regarding any such claim. 
 (f) Voluntary Nature of Agreement.
Executive acknowledges and agrees that Executive is executing this Agreement voluntarily and without any duress or undue influence by the Company or anyone else. Executive further acknowledges and agrees that Executive has carefully read this
Agreement and that Executive has asked any questions needed for Executive to understand the terms, consequences and binding effect of this Agreement and fully understand it, including that Executive is waiving Executive’s right to a jury trial.
Finally, Executive agrees that Executive has been provided an opportunity to seek the advice of an attorney of Executive’s choice before signing this Agreement. 
 14. Successors. 
 (a) The Company’s Successors. Any successor to the
Company (whether direct or indirect and whether by purchase, merger, consolidation, liquidation or otherwise, and including, without limitation, a parent entity of any successor to the Company) to all or substantially all of the Company’s
business and/or assets shall assume the obligations under this Agreement and agree 

 
expressly to perform the obligations under this Agreement in the same manner and to the same extent as the Company would be required to perform such
obligations in the absence of a succession. For all purposes under this Agreement, the term “Company” shall include any successor to the Company’s business and/or assets which executes and delivers the assumption agreement described
in this Section 14(a) or which becomes bound by the terms of this Agreement by operation of law. 
 (b) The
Executive’s Successors. The terms of this Agreement and all rights of Executive hereunder shall inure to the benefit of, and be enforceable by, Executive’s personal or legal representatives, executors, administrators, successors,
heirs, distributees, devisees and legatees. 
 15. Notice. 
 (a) General. Notices and all other communications contemplated by this Agreement shall be in writing and shall be deemed to have
been duly given when personally delivered or when mailed by U.S. registered or certified mail, return receipt requested and postage prepaid. In the case of Executive, mailed notices shall be addressed to him or her at the home address which he or
she most recently communicated to the Company in writing. In the case of the Company, mailed notices shall be addressed to its corporate headquarters, and all notices shall be directed to the attention of its Chief Financial Officer. 
 (b) Notice of Termination. Any termination by the Company for Cause or by Executive for Good Reason or as a result of a voluntary
resignation shall be communicated by a notice of termination to the other party hereto given in accordance with Section 15(a) of this Agreement. Such notice shall indicate the specific termination provision in this Agreement relied upon, shall
set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination under the provision so indicated, and shall specify the termination date (which shall be not more than thirty (30) days after the giving of
such notice). 
 16. Miscellaneous Provisions. 
 (a) No Duty to Mitigate. Executive shall not be required to mitigate the amount of any payment contemplated by this Agreement, nor,
except as otherwise contemplated in this Agreement, shall any such payment be reduced by any earnings that Executive may receive from any other source. 
 (b) Waiver. No provision of this Agreement shall be modified, waived or discharged unless the modification, waiver or discharge is agreed to in writing and signed by Executive and by an authorized officer of
the Company (other than Executive). No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party shall be considered a waiver of any other condition or provision or of the same
condition or provision at another time. 
 (c) Headings. All captions and section headings used in this Agreement are
for convenient reference only and do not form a part of this Agreement. 
 (d) Entire Agreement. This Agreement and the
Invention Agreement constitute the entire agreement of the parties hereto and supersedes in their entirety all prior representations, understandings, undertakings or agreements (whether oral or written and whether expressed or implied) of the
parties with respect to the subject matter hereof. No future agreements between the Company and Executive may supersede this Agreement, unless they are in writing and specifically mentioned this Agreement. 

 (e) Choice of Law. The laws of the State of California (without reference to its
choice of laws provisions) shall govern the validity, interpretation, construction and performance of this Agreement. 
 (f)
Severability. The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision hereof, which shall remain in full force and effect. 
 (g) Withholding. All payments made pursuant to this Agreement will be subject to withholding of applicable income and employment
taxes. 
 (h) Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original,
but all of which together will constitute one and the same instrument. 
 [Remainder of Page Intentionally Left Blank] 

 IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by its
duly authorized officer, as of the day and year set forth below. 
  

							
	COMPANY	 		 	NEUROGESX, INC.
				
		 		 	By:	 	/s/ Anthony A. DiTonno
				
		 		 	Title:	 	President and Chief Executive Officer
				
	EXECUTIVE	 		 	By:	 	/s/ Russell Kawahata
		 		 		 	Russell Kawahata

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