Document:

PURCHASE AND SALE AGREEMENT DATED JANUARY 31, 2000

 EXHIBIT 10.1 
  
 PURCHASE AND SALE AGREEMENT 
  

THIS PURCHASE AND SALE AGREEMENT, dated as of January 31, 2000 (this
“Agreement”), is by and among Bank of America, N.A., a national banking association with its principal offices in Charlotte, North Carolina (“Bank”); Capital Lease Funding, L.P., a Delaware limited partnership with
its principal offices in New York, New York (“CLF”); and CLF’s general partners, CLFC HPII Inc. (“CLFC”) and CLF Holdings, Inc. 
  
 RECITALS 
  
 A. In its ordinary course of business, CLF originates certain mortgage loans to certain borrowers. 
  
 B. CLF desires to sell certain of these mortgage loans to Bank, and Bank
desires to purchase certain of these mortgage loans from CLF, subject to the terms and conditions set forth below. 
  
 NOW, THEREFORE, in consideration of the foregoing recitals, the mutual agreements set forth herein and for additional
consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 
  
 1. Defined Terms and Rules for Construction. The following provisions shall govern the interpretation of certain terms used in this Agreement:

  
 (a) Defined Terms. Capitalized terms
shall have the meanings set forth below: 
  
 “Adjusted Book Amount” means: (i) with respect to any Purchased Mortgage Loan, the original Purchase Price for such Pool Asset less any principal payments received by Bank or the Servicer from or on behalf of the
applicable Mortgagor; and (ii) with respect to any Confirmed Loan that has become a Pool Asset, the amount loaned by Bank to the Mortgagor, less the Contribution Fee paid by CLF in respect of such Loan, and less any principal payments
received by Bank from or on behalf of the applicable Mortgagor. The Adjusted Book Amount for a Loan may never exceed the Purchase Price for such Loan. 
  
 “Bank Loans” means Commercial Mortgage Loans, including Construction Perm Loans and Converted Loans, that are originated
or made by Bank or any of its affiliates or subsidiaries to Mortgagors. 
  
 “Bank Mortgage Loan Documents” means all documents and instruments that would constitute the “Mortgage File” for a Bank Loan or a Bank Originated Mortgage Loan. 
  
 “Bank Originated Mortgage Loans” means Bank
Loans that CLF has purchased from Bank, either by exercise of the Call Option or pursuant to the 

 terms of the Contribution Agreement, and that were, but no longer are, Pool Assets. 
  
 “Business Day” means any calendar day in
which a federally chartered banking association doing business in the State of North Carolina is open for transacting business with the general public. 
  
 “Call Option” means the call option to be sold by Bank to CLF, as set forth in the Call Option Agreement. 
  
 “Call Option Agreement” means that certain
Call Option Agreement, of even date herewith, by and among Bank, as Grantor, CLF, as Buyer, and CLFC, the form of which is attached hereto as Exhibit F. 
  

“Ceiling Conditions” means the following: (a) the Performance Criteria have been and continue to be satisfied; (b) no
more than 25% of the total Market Value of all Pool Assets have Mortgaged Properties leased by any single Tenant or by any single Tenant and its affiliates (as such term is defined at 17 C.F.R. § 230.405); (c) no more than 35% of the total
Market Value of all Pool Assets have Mortgage Properties leased by one or more Tenants in the same industry group; and (d) CLF has (i) at least $1,000,000 in cash and (ii) equity of at least $20,000,000 or 8% of its assets, on a balance sheet basis
and determined as if the sales of Purchased Mortgage Loans were not true sales under the provisions of SFAS 125, whichever is greater. 
  
 “CLF Change Event” means the occurrence of a change in the partnership interests of CLF such that either (i) either CLFC
or CLF Holdings, Inc. shall no longer be a general partner of CLF or (ii) CLFC shall no longer have full authority to act as CLF’s general partner. 
  
 “CLF Management Change Event” means the termination without cause, to which Bank has not consented, which consent shall
not be withheld unreasonably, of CLF’s President, General Counsel or Chief Financial Officer. 
  
 “Closing Date” means the date on which all of the agreements evidencing the Facility are executed and delivered by the
parties hereto. 
  
 “Commercial Mortgage
Loan” means any loan secured by a Mortgage on Mortgaged Property, which property (i) would be generally characterized as commercial in nature and that is zoned for commercial use, including without limitation an office building, a shopping
center, a warehouse, an office/warehouse/showroom combination building, a hotel, a mobile home park or other property intended and zoned for commercial use and (ii) is intended to be leased by a Tenant which has a senior, long- term unsecured debt
rating of at least BBB- or Baa3. 
  
 “Committed Amounts” means the amounts that Bank has loaned or agreed to loan or advance to Mortgagors in respect of Construction Perm Loans. 
  

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 “Confirmation” means a document to be delivered and executed under the
terms of the Contribution Agreement, evidencing CLF’s consent to Bank’s making of a Loan, secured by a lien on specified Mortgaged Property, to a specified Mortgagor, substantially similar in form to the one attached hereto as Exhibit
A. 
  
 “Confirmed Loans”
means all Bank Loans that CLF has confirmed as acceptable as Pool Assets under the terms and conditions of the Contribution Agreement. 
  
 “Construction Loan” means any Commercial Mortgage Loan that is made to fund the construction of property which would be
generally characterized as commercial in nature and that is zoned by the applicable zoning or permitting authority for commercial use. 
  
 “Construction Perm Loan” means any Bank Loan identified by Bank and confirmed by CLF as being otherwise eligible for the
Facility, that is originated as a loan for the financing of the construction of commercial improvements to real property and that is convertible, at the Mortgagor’s option or otherwise, from a Construction Loan to a Permanent Loan. 

 
 “Contribution Agreement” means that
certain Contribution Agreement, of even date herewith, by and between Bank and CLF, the form of which is attached hereto as Exhibit G. 
  
 “Contribution Fee” means a fee to be paid by CLF to Bank under the terms of the Contribution Agreement, which fee shall
be determined by subtracting (x) the amount determined by application of the Purchase Price Grid to the sum of (i) the Loan proceeds advanced by Bank to the applicable Mortgagor in respect of the applicable Commercial Mortgage Loan plus (ii)
the premium for any Lease Enhancement Policy that may be issued in connection with such Commercial Mortgage Loan (unless such premium is being paid directly by the applicable Mortgagor) from (y) the sum of (i) and (ii), above. 
  
 “Conversion Date” means, with respect to
any Construction Perm Loan, the date upon which such Construction Perm Loan converts to a Permanent Loan. 
  
 “Converted Loans” means all Construction Perm Loans that have become Permanent Loans. 
  
 “Credit Rating” means the rating assigned
by a Rating Agency to the senior, unsecured debt obligations of a Tenant; provided, however, that if no Rating Agency has issued a Credit Rating for a Tenant, Bank and CLF shall mutually agree to a Credit Rating for such Tenant.

  
 “Custodian” means LaSalle
National Bank or any other institution that may provide custodial services in respect of Pool Assets. 
  

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 “Custody Agreement” means an agreement, the form of which is attached
hereto as Exhibit C, designating Custodian as the entity that will have physical custody of the Mortgage Files for Commercial Mortgage Loans sold by CLF to Bank. 
  
 “Disposition Surplus” means the amount determined by subtracting (i) the sum of (a) the
actual, reasonable costs and expenses incurred or paid by Bank upon a Securitization of the Pool Assets or upon a sale or transfer of the Pool Assets to a third party, (b) other amounts, fees or expenses, including without limitation any unpaid
Option Margin Premium, owed by CLF to Bank, (c) the Imputed Exercise Price for all Pool Assets and (d) the Profit Participation Amount from (ii) the gross proceeds received by Bank upon a securitization of the Pool Assets or a sale or transfer of
the Pool Assets to a third party. Notwithstanding the foregoing, if a Disposition Surplus is being determined after the occurrence of an Event of Default, then such Disposition Surplus shall not include any amount attributable to any gain (if any)
resulting from any hedging strategy used by Bank after the occurrence of such Event of Default. 
  
 “DV01” means dollar value, one basis point. 
  
 “Eurodollar Rate” means the per annum interest rate appearing at approximately 11:00 a.m.,
London time, and from time to time on Telerate Page 3750 (or any successor page) as the London Interbank offered rate for one-month term deposits in U.S. Dollars. If such rate is not available, the term “Eurodollar Rate” shall mean the per
annum interest rate appearing at approximately 11:00 a.m., London time, and from time to time on Reuters Screen LIBO Page at the London Interbank offered rate for one-month term deposits in U.S. Dollars at approximately 11:00 a.m., London time;
provided, however, that if more than one rate is shown on the Reuters Screen LIBO Page, then the applicable rate shall be the arithmetic mean of all rates shown. 
  
 “Event of Default” means the occurrence of any of the following: (i) the failure by CLF to
pay, in full, an Option Premium Adjustment Amount to Bank within five Business Days after CLF’s receipt of a Market Deficit Notice; (ii) the receipt by CLF of a notice of the occurrence of an event of default under any financing or financial
accommodation provided by any third-party to CLF or any securities contract between CLF and any third party, and the failure by CLF to cure such default within any applicable cure period, subject to any waivers of a default that may be granted to
CLF by such third party; (iii) the failure by CLF to deliver a Mortgage File to Bank or its designee within ten Business Days after the Purchase Date; (iv) the failure by CLF to remit to Bank, by the fifth (5th) Business Day after any applicable notice and cure period, any Option Margin Premium that may remain due and unpaid after giving effect to the
applicable setoff, as set forth in Section 3(a) of the Call Option Agreement, against Remittances; (v) the failure by CLF to materially and timely comply with any provision of this Agreement, and such default is not cured by CLF within ten Business
Days after CLF’s receipt of notice from Bank of such failure; (vi) any representation or warranty 
  

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 made by CLF that is or shall have been incorrect or untrue in any material respect when made or repeated,
or deemed to have been made or repeated, and such default is not cured by CLF within ten Business Days after CLF’s receipt of notice from Bank of such default; (vii) the dissolution of CLF or the merger or consolidation of CLF with any of its
general partners or with any other entity; (viii) the sale or transfer by CLF of all or a majority of its assets other than with respect to a disposition of the Pool Assets under the terms of this Agreement; (ix) a determination by a court of
competent jurisdiction or by an administrative agency, board, court or other body that would have the effect of rendering CLF’s performance under this Agreement impossible or impractical; (x) a determination by a court of competent jurisdiction
that CLF’s execution and delivery of, or CLF’s performance under, this Agreement is or would be a violation of any criminal or civil statute, regulation or other law; (xi) any event that would cause Bank to lose its position as a first
priority secured creditor with respect to any Pool Asset or any other collateral granted by CLF to Bank; (xii) a CLF Change Event; (xiii) a CLF Management Change Event; or (xiv) the failure by CLF to deliver a new or modified Report to Bank within
five Business Days after Bank notifies CLF that Bank has not received a Report for the preceding two-week period or that the information provided in any Report previously submitted by CLF to Bank is incomplete in any material way. 
  
 “Exercise Date” means any date before the
Expiration Date on which Bank receives proper notice from CLF that CLF is exercising the Call Option. 
  
 “Exercise Price” means, in respect of Pool Assets that CLF purchases from Bank by exercise of the Call Option, the sum of
(i) the Adjusted Book Amount for each Pool Asset, plus (or minus, if the Net Hedge Adjustment Amount is a positive number) (ii) the Net Hedge Adjustment Amount, plus (iii) the Securitization Fee for the Pool Assets that are the subject
of such Call Option, less (iv) all Option Premium Adjustment Amounts previously paid by CLF to Bank, plus (v) all Option Premium Adjustment Amounts disbursed by Bank to CLF under the provisions of the Call Option Agreement. 

 
 “Expanded Pool Assets” means all Pool
Assets and all Construction Perm Loans that are not Converted Loans. 
  
 “Expiration Date” means the earliest to occur of: (i) the Termination Date; (ii) the date on which an Event of Default occurs; (iii) the date on which an Insolvency Event occurs; or (iv) the date on
which the Facility is terminated in accordance with the provisions of Section 20 of this Agreement. 
  
 “Facility” means the financial arrangements and agreements between the parties set forth in this Agreement, the Call
Option Agreement, the Contribution Agreement and other related documents and instruments. 
  
 “Funding Confirmation” means a document, to be delivered and executed under the terms of the Contribution Agreement,
evidencing CLF’s consent to 
  

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 Bank’s making of a Loan, secured by a lien on specified Mortgaged Property, to a specified
Mortgagor. 
  
 “Hedge” means a
facility, or a collection of securities and/or derivatives, owned by Bank for the purpose of offsetting or reducing the market risk arising from the Bank’s ownership of Pool Assets. 
  
 “Imputed Exercise Price” means the Exercise Price, determined as if CLF had exercised the
Call Option on the date on which Bank causes a securitization of or transfers to a third party the Pool Assets, for Pool Assets securitized or transferred to a third party by Bank, plus any amounts that are otherwise due and owing to Bank
hereunder but that are unpaid as of the date for which an Imputed Exercise Price is being determined. 
  
 “Insolvency Event” means the occurrence of any of the following: (i) the inability of CLF to pay its obligations as such
obligations become due; (ii) CLF’s admission in writing that it is insolvent or unable to pay its debts as they become due; (iii) the commencement of a case by CLF under the provisions of title 11 of the United States Code; (iv) the entry of an
order for relief after the commencement of a case against CLF under the provisions of Section 303 of the Bankruptcy Code; (v) the failure of CLF to obtain the dismissal of any case brought against CLF under the provisions of Section 303 of the
Bankruptcy Code within 75 days of the commencement of such case; (vi) the failure by CLF to obtain, within 45 days after entry of an order appointing an interim trustee under the provisions of 11 U.S.C. § 303(g), an order by a court of
competent jurisdiction granting CLF possession of the property of the estate from such interim trustee; or (vii) the appointment by a court of competent jurisdiction of a trustee, receiver, conservator or liquidator, or other person or entity having
powers and obligations similar to those granted to any of the foregoing, for CLF or for all or substantially all of CLF’ s assets (except as set forth in the preceding clause (vi)). 
  
 “Investment Grade” means a senior unsecured debt credit rating of at least BBB-, if such
rating is issued by Standard & Poor’s Ratings Services, Fitch Investors Service, Inc., or Duff & Phelps Credit Rating Co., or at least Baa3, if such rating is issued by Moody’s Investors Service, Inc. 
  
 “Lease Enhancement Policy” means any lease
enhancement insurance policy issued in respect of a Commercial Mortgage Loan by an acceptable insuror to or in favor of CLF or Bank. 
  
 “Loan” means a Commercial Mortgage Loan, a Construction Perm Loan, a Converted Loan, a Confirmed Loan or a Permanent
Loan. 
  
 “Loan Value” means, in
respect of Commercial Mortgage Loans, the amount actually advanced by Bank or CLF to the applicable Mortgagor, and shall not include any amount solely attributable to the “grossing up” of such Loan. 
  

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 “Market Deficit Notice” means a notice delivered by Bank to CLF that (a)
the Market Value of the Pool Assets is less than the Mortgage Loan Balances of the Pool Assets and/or (b) the amount determined by subtracting the Securitization Costs (for a hypothetical Securitization) for all Pool Assets from the Market Value of
all Pool Assets is less than 103% of the Adjusted Book Amount of all Pool Assets. 
  
 “Market Value” means the sum of: (i) the fair market value of Pool Assets then-owned by Bank, determined by Bank in its
sole, commercially reasonable judgment with respect to the amount that would be received, in a commercially reasonable transaction, upon an actual or hypothetical Securitzation of such Pool Assets; plus (ii) the Net Hedge Adjustment Amount;
plus (iii) any Option Premium Adjustment Amount previously paid to, and still retained by, Bank. Without limiting the foregoing, the Net Hedge Adjustment Amount shall be subtracted from the amount determined under clause (i) of this
definition if the Net Hedge Adjustment Amount is a negative number. 
  
 “Material Adverse Change” means, in respect of any Commercial Mortgage Loan, any of the following: (a) the Credit Rating of the Tenant has declined, after the date of the Funding Confirmation but
before the date on which such Loan becomes a Pool Asset, (i) below an Investment-Grade rating or (ii) more than two rating levels below the Credit Rating of such entity or person as of the date on which CLF executed the applicable Funding
Confirmation (e.g., from AAA+ to AA+); (b) Bank’s environmental, engineering or appraisal reports reveal substantial deficiencies or conditions that cannot be timely cured and that would otherwise prevent the Bank from funding such Loan.

  
 “Mortgage” means a mortgage,
deed of trust, or other deed or instrument to secure indebtedness that creates a valid and enforceable lien, security interest or property interest on or in an estate in fee simple in or on real property, and the improvements thereon, securing a
mortgage note or similar evidence of indebtedness. 
  
 “Mortgage File” shall have the meaning set forth in the Custody Agreement. 
  
 “Mortgage Loan Balance” means the outstanding principal balance owed by a Mortgagor in respect of a Commercial Mortgage
Loan, including any Converted Loan, that is a Pool Asset. 
  
 “Mortgaged Property” means the real property and improvements thereon, and related personal property and other property interests, that are described in and subject to a Mortgage or that otherwise
secure repayment of obligations that are secured by a Mortgage. 
  

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 “Mortgagor” means an obligor of any obligation that is secured by a
Mortgage, which obligor is also the owner of the Mortgaged Property that secures such obligation. 
  
 “Net Hedge Adjustment Amount” means as follows: 
  
 (a) If Bank has not delivered a Market Deficit Notice to CLF, any net gain or loss incurred by Bank as a
result of the hedging strategy or strategies actually used by Bank and consented to by CLF; 
  
 (b) If Bank has delivered a Market Deficit Notice to CLF, then, for all periods beginning on the date on which Bank delivers to CLF a
Market Deficit Notice, any net gain or loss incurred by Bank as a result of the hedging strategy that Bank, in its sole discretion, actually uses; and, for all periods after CLF has paid Bank the Option Premium Adjustment Amount due in respect of
such Market Deficit Notice, the provisions of clause (a) of this definition shall apply on and after the date on which Bank receives such Option Premium Adjustment Amount to the same extent as if Bank had not issued such Market Deficit Notice to
CLF; or 
  
 (c) Notwithstanding the foregoing
clauses (a) and (b), if an Event of Default has occurred and has not been cured (if cure .is expressly allowed under this Agreement) or waived in writing by Bank, any net gain or loss incurred by Bank as a result of the hedging strategy that Bank,
in its sole discretion, actually uses. 
  
 The Net Hedge
Adjustment Amount shall be a positive number if the amount determined by application of this definition is a net gain, and shall be a negative number if the amount determined by application of this definition is a net loss. 
  
 “Non-Conforming Loan” means any Purchased
Mortgage Loan for which the long-term unsecured credit rating for the tenant of the Mortgaged Property is lowered to a rating that is less than a BBB- or Baa3, or to an equivalent rating, by any rating agency. 
  
 “Option Margin Premium” means the amount
that is determined by daily application, based on a 360 day per year basis for the actual number of days during the period commencing on (but excluding) the Closing Date and ending on (and including) the last day of each calendar month thereafter,
of (x) the Option Margin Premium Rate to (y) the Adjusted Book Amount for all Pool Assets. 
  
 “Option Margin Premium Rate” means the per annum rate that is the sum of (i) the Eurodollar Rate plus (ii) 100 basis
points, for the first $200,000,000 in Adjusted Book Amount of Pool Assets, and, for all remaining Pool Assets, the sum of (i) the Eurodollar Rate plus (ii) 150 basis points. 
  
 “Option Premium” means $350,000.00. 
  
 “Option Premium Adjustment Amount” means
the greater of: (i) the amount determined by subtracting (x) the amount determined by subtracting (A) 
  

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 the Securitization Costs, determined with respect to a hypothetical Securitization of all Pool Assets,
from (B) the Market Value of all Pool Assets, from (y) 103 percent of the Adjusted Book Amount of all Pool Assets; (ii) the difference between (x) the sum of all Mortgage Loan Balances for all Pool Assets less (y) the Market Value for all Pool
Assets; or (iii) zero (0). 
  
 “Participation Rate” means as follows: 
  
 (i) 50 basis points, if the total dollar amount of Bank Loans being securitized is at least 50% of the total dollar amount of the sum of (x) all Loans being securitized that, immediately prior to the exercise of the
Call Option in connection with the Securitization, were Pool Assets and (y) all Bank Originated Mortgage Loans being securitized; 
  
 (ii) 45 basis points, if the total dollar amount of Bank Loans being securitized is at least 25%, but less than 50%, of the total dollar
amount of the sum of (x) all Loans being securitized that, immediately prior to the exercise of the Call Option in connection with the Securitization, were Pool Assets and (y) all Bank Originated Mortgage Loans being securitized; 
  
 (iii) 40 basis points, if the total dollar amount of Bank
Loans being securitized is less than 25% of the total dollar amount of the sum of(x) all Loans being securitized that, immediately prior to the exercise of the Call Option in connection with the Securitization, were Pool Assets and (y) all Bank
Originated Mortgage Loans being securitized; 
  
 (iv) in respect of a whole loan sale of a Bank Loan by CLF to a third party, 50 basis points, if the total dollar amount of all Bank Loans is at least 50% of the total dollar amount of the sum of (x) all Pool Assets owned by Bank
immediately prior to such sale and (y) all Bank Originated Mortgage Loans then-owned by CLF; 45 basis points, if the total dollar amount of all Bank Loans is at least 25%, but less than 50%, of the total dollar amount of the sum of (x) all Pool
Assets owned by Bank immediately prior to such sale and (y) all Bank Originated Mortgage Loans then-owned by CLF; or 40 basis points, if the total dollar amount of all Bank Loans is less than 25% of the total dollar amount of the sum of (x) all Pool
Assets owned by Bank immediately prior to such sale and (y) all Bank Originated Mortgage Loans then-owned by CLF. 
  
 “Performance Criteria” means: (a) 103% of the aggregate of the Adjusted Book Amount for all Pool Assets does not exceed
the amount determined by subtracting (x) the Securitization Costs associated with a hypothetical Securitization of all Pool Assets from (y) the aggregate Market Value for all Pool Assets; (b) the Market Value of all Pool Assets is at least equal to
the Mortgage Balances for such Pool Assets; and (c) the Adjusted Book Amounts of all Pool Assets does not exceed the sum of the Mortgage Balances for all Pool Assets. 
  

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 “Permanent Loan” means any Bank Loan that was originated by or through
Bank or any of its affiliates as a Construction Perm Loan and that, under its terms, has converted from construction financing to commercial mortgage loan financing upon completion or substantial completion of construction of the improvements on the
Mortgaged Property. 
  
 “Pool
Assets” means all Purchased Mortgage Loans and all Confirmed Loans owned at any given time by Bank. Any Purchased Mortgage Loan or Confirmed Loan sold by Bank to CLF by CLF’s exercise of its Call Option shall cease to be a Pool Asset
upon Bank’s receipt of the Exercise Price and other amounts that may be due and payable to Bank upon CLF’s exercise of the Call Option. 
  
 “Prime Pool Assets” means Pool Assets for which the Tenants of the Mortgaged Properties have long-term unsecured debt
ratings, by a nationally recognized rating agency, of at least BBB-/Baa3. 
  
 “Profit Participation Amount” means the amount determined by multiplying (x) the Participation Rate by (y) the Mortgage Loan Balance for each Bank Loan that is the subject of a Securitization or a
whole-loan sale. 
  
 “Purchase
Date” means the date on which CLF assigns a Commercial Mortgage Loan to Bank under the provisions of Section 5 of this Agreement. 
  
 “Purchase Price” means the price that Bank pays CLF for a Pool Asset, as determined in accordance with the provisions of
Section 5(b) of this Agreement. 
  
 “Purchase Price Grid” means a table, prepared from time to time by Bank, in its sole discretion, setting forth various rates that will be applied to determine the amount that Bank is willing to pay CLF for the purchase of
any Commercial Mortgage Loan. The form of a Purchase Price Grid is attached hereto as Exhibit B. 
  
 “Purchased Mortgage Loans” means Commercial Mortgage Loans that Bank has purchased from CLF and for which CLF has the
option to purchase pursuant to a written agreement, regardless of whether such Commercial Mortgage Loans are Pool Assets or not. 
  
 “Rating Agency” means any of the entities listed in the definition of Investment Grade. 
  
 “Remittances” means, with respect to any
Pool Asset, all interest paid by or on behalf of the respective Mortgagor and received by Bank or its agent in respect of such Pool Asset after the relevant Purchase Date. 
  
 “Report” means a bi-weekly written summary prepared and submitted by CLF to Bank, within
two Business Days after the conclusion of the immediately 
  

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 preceding two-week period, that lists all Commercial Mortgage Loans originated by CLF, whether under the
terms of this Agreement or otherwise, during the relevant two week period, stating the name of the Tenant for such Commercial Mortgage Loan, the Tenant’s industry and the Tenant’s credit rating for long-term unsecured debt. 
  
 “Securitization” means the sale of certain
certificates, instruments or securities that are backed, in whole or in part, directly or indirectly, by any of the Pool Assets or any Bank Loans. 
  
 “Securitization Costs” means the sum of: (i) the actual or a reasonable, good faith estimate, determined by Bank, of all
underwriting, legal and accounting costs, and all fees that would be paid to one or more rating agencies for rating the instruments or securities to be issued; (ii) the Securitization Fee; and (iii) the Profit Participation Amount for Bank Loans
(other than Confirmed Loans), if any, contributed to such a Securitization. 
  
 “Securitization Fee” means the amount determined by multiplying (x) the sum of (i) all Purchase Prices that Bank paid to CLF to purchase Commercial Mortgage Loans from CLF that are being purchased by
exercise of the Call Option or that are being disposed of by Bank under the terms of this Agreement and (ii) all amounts loaned by Bank to Mortgagors, less the Contribution Fees paid by CLF to Bank, in respect of all Confirmed Loans that are,
at the time of such purchase or disposition, Pool Assets that are the subject of the purchase or disposition, by (y) 50 basis points. 
  
 “Servicer” means Midland Loan Services, Inc., or any other entity or institution that may service the Pool Assets.

  
 “Servicing Agreement” means
that certain Servicing Agreement, of even date herewith, the form of which is attached hereto as Exhibit D. 
  
 “Substituted Mortgage Loan” means any Pool Asset that is replaced with a Bank Loan pursuant to Section 2(d) of the Call
Option Agreement. 
  
 “Tenant”
means a tenant of real property pledged as collateral security for a Commercial Mortgage Loan. 
  
 “Termination Date” means January 31, 2001, or any subsequent date determined pursuant to Section 4 of this Agreement.

  
 (b) Other Definitions and Rules for
Construction. In addition to the foregoing defined terms, the word including” means “including without limitation.” As appropriate, the singular of any term shall be deemed to include reference to the plural, and vice versa.

  
 2. Purchase and Sale of Commercial Mortgage Loans.
Subject to the terms and conditions set forth in this Agreement, Bank hereby agrees that it, in its sole discretion, may purchase from CLF, and CLF hereby agrees that it will sell, transfer and assign to Bank, all of 
  

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 CLF’s rights, title and interests in and to certain Commercial Mortgage Loans that may be designated in writing by
the parties, free and clear of all liens, security interests and encumbrances, other than: (a) in respect of ad valorem taxes that may have accrued but are not yet payable under their own terms; and (b) as set forth or contemplated in this
Agreement, 
  
 3. Term and Amount. Subject to the terms set
forth herein, Bank may purchase, and CLF may sell, Commercial Mortgage Loans; provided, however, that the total Adjusted Book Amount of all Pool Assets, together with Committed Amounts, shall not exceed $200,000,000.00 at any one time.
Notwithstanding the foregoing limitation, Bank may purchase, if CLF agrees to sell to Bank, additional Commercial Mortgage Loans having an aggregate Purchase Price of no more than $75,000,000.00 (provided that the total Adjusted Book Amount of all
Pool Assets, together with Committed Amounts, may not exceed $275,000,000.00), provided that the Ceiling Conditions are satisfied. If the Ceiling Conditions remain satisfied, Bank may then purchase, if CLF agrees to sell to Bank, additional
Commercial Mortgage Loans having an aggregate purchase price of no more than $75,000,000.00 (provided that the total Adjusted Book Amount of all Pool Assets, together with Committed Amounts, may not exceed $350,000,000.00). To the extent that the
sum of (i) the total Adjusted Book Amount of all Pool Assets and (ii) Committed Amounts decreases at any time as a result of purchase of Pool Assets by CLF from Bank pursuant to an exercise of the Call Option. Bank may purchase additional Commercial
Mortgage Loans from CLF, subject to the limitations set forth herein. 
  
 4. Termination of Facility. The initial term of the Facility shall end on January 31, 2001 or upon termination pursuant to Section 20 of this Agreement, but may be extended from time to time for an additional one-year period pursuant
to the following terms and conditions. If the Ceiling Conditions are satisfied at the time of the prospective extension, the term of the Facility may be extended upon the occurrence of either of the following: 
  
 (i) First, CLF may send Bank a written request for
extension of the termination date no earlier than August 1 and no later than October 31 of the year prior to the year in which the Facility would expire but for the requested extension. If Bank elects to extend the term of the Facility, it shall,
within 30 days after the date of CLF’s request, send CLF written notice that the Facility will be extended for an additional year, with the new Termination Date being January 31 of the year following the then-current Termination Date. In no
event, however, may the Facility be renewed beyond January 31, 2003. 
  
 (ii) Second, the Facility shall be extended, without notice or request, for a period of twelve months following the effective date of a Securitization by CLF of Pool Assets in the greater amount of (i) at least
$100,000,000.00 or (ii) 50% of the Adjusted Book Amount for all Pool Assets existing on the date of the Securitization. If the effective date of such a Securitization occurs on a day other than the last day of a month, the Facility shall be extended
until the last calendar day of the twelfth month following the effective date of such Securitization, subject to the final sentence of clause (i), above. 
  

 12 

 5. Purchase Terms. Bank shall purchase the Commercial Mortgage Loans from CLF on the following
terms: 
  
 (a) Confirmation and Purchase of
Commercial Mortgage Loans. An agreement to purchase a Commercial Mortgage Loan may be entered into by Bank after receipt of a request of sale from CLF, which request shall be in the form of a proposed Confirmation. If Bank agrees to the proposed
sale, then CLF shall confirm the terms of the proposed sale of the Commercial Mortgage Loan by promptly issuing a written Confirmation, in a form reasonably satisfactory to the parties, to Bank. Such Confirmation shall describe the Commercial
Mortgage Loan(s) to be sold, identify Bank as buyer and CLF as seller and set forth (i) the Purchase Date, (ii) the Purchase Price, (iii) the purchase rate applicable to the sale of the Commercial Mortgage Loan, as determined from the then-current
Purchase Price Grid, (iv) the rating of the Tenant for the applicable Mortgaged Property, (v) whether the lease is a bond, triple net/ground or double net lease and (vi) any additional terms or conditions not inconsistent with this Agreement. After
the parties have agreed to the sale and purchase of a Commercial Mortgage Loan and after receipt of the Confirmation, Bank shall sign the Confirmation and return a copy to CLF. CLF shall submit all Commercial Mortgage Loans originated by or through
Bank, or any of its affiliates or subsidiaries, to Bank for consideration, and Bank shall have a commercially reasonable amount of time for the review of such Commercial Mortgage Loans before CLF may submit any such Commercial Mortgage Loan to any
third party for consideration. Without limiting the generality of the foregoing, Bank shall have no obligation to purchase any Commercial Mortgage Loan on or after the Expiration Date. 
  
 (b) Purchase Price. The Purchase Price for Commercial Mortgage Loans that Bank agrees to purchase
shall be determined in accordance with the then-current Purchase Price Grid, and by application of the purchase rate set forth therein to (i) the loan proceeds advanced by CLF to the Mortgagor under the Commercial Mortgage Loan for which the
Purchase Price is being determined, plus (ii) the premium for any Lease Enhancement Policy that may be issued in connection with such Commercial Mortgage Loan, unless such premium is being paid directly by the Mortgagor, in each case as set forth in
the relevant Confirmation. Bank may, in its sole discretion, alter or amend the Purchase Price Grid from time to time. 
  
 (c) Representations and Warranties. Upon a sale of a Commercial Mortgage Loan, CLF shall make customary representations and
warranties with respect to CLF’s legal ability to deliver such documents, instruments, rights, title and interests to Bank and with respect to the Commercial Mortgage Loan itself. If Bank discovers that any of these representations or
warranties was incorrect at the time of Bank’s purchase of a Commercial Mortgage Loan and if Bank notifies CLF of such error or nonconformity within ten Business Days after receipt (actual or constructive) of the Mortgage File or discovery of
the error or nonconformity, whichever occurs later, then CLF promptly shall refund the Purchase Price for such Commercial Mortgage Loan to Bank. 
  
 (d) Ownership. Ownership of Commercial Mortgage Loans and all related documents, instruments, rights and interests, including
without limitation applicable Lease Enhancement Policies shall be transferred by CLF to Bank upon payment of the Purchase Price by Bank, at which time said Commercial Mortgage Loans shall become Pool Assets. Except for its rights under the Call
Option Agreement, CLF shall retain no interest in, to or against the Pool Assets. 
  

 13 

 (e) Original Loan Documents. Within five Business Days after the Purchase Date for
a Commercial Mortgage Loan, CLF will deliver the original promissory note and deed of trust or mortgage for, together with other documents and instruments evidencing or relating to, the Purchased Mortgage Loan and related transactions to the
Custodian to hold in trust for the sole benefit of Bank. 
  
 (f) Prime Pool Assets. At no time shall the aggregate sum of the Adjusted Book Amounts for Prime Pool Assets be less than 90% of the sum of the Adjusted Book Amounts for all Pool Assets. 
  
 (g) Option Premium Adjustment Amount. Bank shall be
under no obligation to purchase any Commercial Mortgage Loan, regardless of whether Bank previously executed a Confirmation with respect to such Commercial Mortgage Loan, if CLF has failed to pay Bank an Option Premium Adjustment Amount by the end
of the fifth (5th) Business Day after CLF has received a Market Deficit Notice from Bank. 
  
 6. Custody of Loan Documents and Servicing of Purchased Mortgage
Loans. In respect of each Purchased Mortgage Loan, the Custodian, or a similar institution, will have custody of the original promissory note and deed of trust or mortgage, and other related documents and instruments, for the sole benefit of
Bank and on terms set forth in the Custody Agreement. Servicing of the Purchased Mortgage Loans will be performed by the Servicer, or a similar institution, on terms set forth in the Servicing Agreement. 
  
 7. Intent. The parties understand and intend that Bank’s purchase
of Commercial Mortgage Loans from CLF shall in each instance constitute an absolute assignment, and not an assignment for security, thereof. The parties also understand and intend that the Call Option shall constitute a securities contract, as such
item is defined at 11 U.S.C. § 741(7), and that each Purchased Mortgage Loan is a security for the purposes of 11 U.S.C. §§ 101(49) and 741(7). 
  

8. True Sale; Security Agreement. Notwithstanding that the parties intend that each sale of a Commercial Mortgage Loan to Bank be an absolute
assignment, CLF shall grant Bank a security interest in each Pool Asset purchased by Bank from CLF, all underlying and related documents and instruments, and all rights and interests, other than those established by the Call Option, relating to or
arising from the foregoing. The form of the agreement evidencing this grant of a security interest is attached hereto as Exhibit E. 
  
 9. Call Option. Simultaneously with the execution and delivery of this Agreement, Bank, CLF and CLFC shall execute and deliver the Call Option
Agreement. 
  
 10. Contribution Agreement. Simultaneously
with the execution and delivery of this Agreement, or as soon thereafter as is reasonably practicable, Bank, CLF and CLFC shall execute and deliver a Contribution Agreement. 
  
 11. Custody Agreement. Simultaneously with the execution and delivery of this Agreement, or as soon thereafter as is
reasonably practicable, Bank, CLF and CLFC shall execute and deliver the Custody Agreement. 
  

 14 

 12. Servicing Agreement. Simultaneously with the execution and delivery of this Agreement, or as
soon thereafter as is reasonably practicable, Bank, CLF and CLFC shall execute and deliver the Servicing Agreement. 
  
 13. Default; Liquidation Rights. Immediately upon the occurrence of an Event of Default and subject only to the rights of CLF and CLFC under
Sections 2(h) and 6 of the Call Option Agreement: (a) CLF’s purchase rights under the Call Option shall terminate; (b) Bank shall be under no obligation to purchase any Commercial Mortgage Loan from CLF; (c) Bank shall have the right, in its
sole discretion, to liquidate any or all of the Pool Assets; and (d) Bank may use any hedging strategy that it, in its sole discretion, deems appropriate. Bank’s liquidation rights include, without limitation, Bank’s right to freely sell
or dispose of all Pool Assets upon whatever terms Bank, in its sole discretion, deems advisable. Bank shall remit the Disposition Surplus to CLF upon any Securitization of the Pool Assets or any sale, transfer or assignment of the Pool Assets to a
third party. 
  
 14. Additional Remedies. In addition to
the liquidation rights set forth in Section 13, Bank may, upon the occurrence of an Event of Default, exercise any right or remedy granted to secured creditors under Article 9 of the Uniform Commercial Code. 
  
 15. Fees and Expenses. The actual, reasonable out-of-pocket fees and
expenses of Bank’s outside counsel incurred in connection with the negotiation, preparation and delivery of this Agreement, the Call Option Agreement and related documents and instruments shall be reimbursed to Bank by CLF upon the execution
and delivery by Bank and CLF of such documents and instruments. 
  
  

 15 

 16. Profit Participation Amount and Securitization Fee. CLF, promptly upon its sale, assignment or
other disposition of all or a substantial portion of its rights, interests and title in and to any Bank Loan to a third-party, or upon CLF’s assignment, sale, transfer (absolute or otherwise) or contribution of a Bank Loan to a trust or other
entity in conjunction with a Securitization, shall pay Bank the Profit Participation Amount determined for such Bank Loan. CLF also shall pay Bank the Securitization Fee in respect of any Securitization involving Pool Assets upon the later of: (i)
the date on which the Exercise Price in respect of such Securitization is due and payable under the terms of the Call Option Agreement; or (ii) the date on which a majority of the securities, certificates, or other documents evidencing beneficial
interests issued in connection with such Securitization are sold, transferred or assigned to any person or entity other than CLF. 
  
 17. Remittances. Prior to the Expiration Date, Bank shall, or shall direct the Servicer to, disburse to CLF on a monthly basis the amount by which
(i) Remittances received during the applicable month exceed (ii) the Option Margin Premium for the applicable month, provided that the amount of Remittances for the relevant period is at least equal to the amount of the Option Margin Premium for
such period. 
  
 18. Hedge. Bank shall establish a Hedge
and maintain a hedging strategy with respect to all Expanded Pool Assets, which hedging strategy shall be in an amount of at least 90% of the Loan Value of the Expanded Pool Assets on a DVO1 basis and which may be subject to CLF’s consent. For
all periods prior to the date on which Bank has delivered a Market Deficit Notice to CLF, and after CLF has timely paid any Option Premium Adjustment Amount then due and payable under the terms of the Call Option Agreement, Bank shall apply a
hedging strategy to which CLF has consented (which consent CLF shall not unreasonably withhold) or any other hedging strategy that Bank, in its sole discretion, decides to adopt if such consent is not forthcoming. At all times after Bank has
delivered a Market Deficit Notice to CLF and prior to the payment by CLF of the related Option Premium Adjustment Amount, Bank may apply any hedging strategy Bank, in its sole discretion, determines to be appropriate or reasonable. For the purposes
of this Section, the Loan Value of Construction Perm Loans that are not Converted Loans shall be the anticipated principal amount advanced by Bank to the applicable Mortgagor in respect of such loan at such time as it may become a Converted Loan.
When determining a Net Hedge Adjustment Amount for less than all Pool Assets, net gains or losses shall be determined with respect to only the Pool Assets for which the determination is being made. Nothing set forth in this Section 18 shall alter
the definition of Net Hedge Adjustment Amount. 
  
 19.
Reports. From and after the Closing Date, CLF shall prepare and deliver to Bank, within two Business Days after the immediately preceding two-week period, with the first two-week period commencing on the Closing Date, bi-weekly Reports
regarding all loans originated by CLF during such period. The form of such Reports shall be subject to Bank’s consent, which consent Bank will not withhold unreasonably. 
  
 20. Termination at Will. Either Bank or CLF may terminate the Facility upon 120 days written notice to the other
party hereto, and the 120th day following the date of any such notice shall be an Expiration Date. Bank shall have
no obligation to purchase any Commercial Mortgage Loan from CLF on or after the 60th day following the date of any
such notice. 
  

 16 

 21. Representations and Warranties. The parties represent and warrant to each other as follows:

  
 (a) Mutual Representations and
Warranties. Bank, CLF, CLFC and CLF Holdings, Inc. each represents and warrants to the others as follows: (i) it has full power and authority, and has taken all action necessary to execute and deliver this Agreement, and all documents required
to be executed and delivered by it hereunder, and to fulfill its obligations hereunder and thereunder, and to consummate the transactions contemplated hereby and thereby; (ii) the making and performance by it of this Agreement, and all documents
required to be executed by it hereunder, and to fulfill its obligations hereunder and thereunder, does not and will not violate any law or regulation of the jurisdiction under which it exists, any other law or regulation applicable to it or any
other agreement to which it is a party or by which it is bound; (iii) this Agreement, and all documents required to be executed by it hereunder have been duly executed and delivered by it and constitute its legal, valid and binding obligations,
enforceable in accordance with the respective terms hereunder or thereunder; and (iv) all approvals, authorizations or other actions by, or filings with, any governmental authority necessary for the validity or enforceability of its obligations
under this Agreement, and all documents required to be executed and delivered by it hereunder have been obtained. 
  
 (b) Additional Representations and Warranties of CLF. CLF represents and warrants to Bank that CLF is not, and upon consummation of
each transaction contemplated by this Agreement will not be, insolvent and, as of the date of any sale of a Commercial Mortgage Loan to Bank, that: (i) CLF owns such Commercial Mortgage Loan to be sold to Bank free and clear of any lien, security
interest, claim, encumbrance or tax (other than those taxes that may have accrued but for which payment is not yet due); (ii) CLF has taken all actions necessary to authorize the sale of each Commercial Mortgage Loan to Bank; (iii) the sale of such
Commercial Mortgage Loan to Bank will not violate any contract, agreement or order to which CLF is subject; (iv) the sale of such Commercial Mortgage Loan will constitute a legal, valid and binding obligation on CLF; (v) CLF is not, and will not be,
upon consummation of the sale of such Commercial Mortgage Loan to Bank, insolvent or otherwise unable to pay its obligations as and when such obligations become due; (vi) upon the sale of a Commercial Mortgage Loan to Bank, Bank will have all rights
and powers previously granted to or reserved by CLF under such Commercial Mortgage Loan; (vii) such Commercial Mortgage Loan is a valid and binding commitment of and against the respective Mortgagor; and (viii) CLF has, immediately prior to the
sale, a valid, perfected first priority security interest or lien on the Mortgaged Property and other collateral in respect of such Commercial Mortgage Loan. 
  
 22. Covenants of CLF. CLF covenants that, after the date hereof, it will: (i) forward to Bank, within two Business Days of receipt, any and all
notices, invoices or bills relating or affecting any Purchased Mortgage Loan; (ii) not take any action that could reasonably foreseeably result in or have a materially adverse impact on Bank’s rights and interests in and to any Purchased
Mortgage Loan; (iii) not make or issue any statement, or fail to correct any known misunderstanding, regarding the transfer to Bank of CLF’s rights, title and interests in and to any Purchased Mortgage Loan; (iv) have at least $1,000,000.00
cash on hand and maintain a 
  

 17 

 minimum equity of at least $20,000,000.00 or eight percent (8%) of its assets, determined as if the sale of Purchased
Mortgage Loans were not a true sale under the provisions of SFAS 125, whichever is greater; (v) not take any action or fail to take any action that could result in CLF or Bank losing a valid, perfected first priority security interest in or lien on
any mortgaged property or other collateral relating to any Purchased Mortgage Loan; (vi) take all reasonable actions after execution and delivery of this Agreement to ensure that CLF has and continues to have a valid, perfected first-priority
security interest in or lien on any Mortgaged Property and other collateral relating to any Purchased Mortgage Loan and that, at Bank’s request, Bank continues to have a valid, perfected first priority security interest in or lien on or with
respect to any Purchased Mortgage Loan; (vii) submit Reports to Bank on at least a bi-weekly basis; and (viii) provide Bank with financial reports, on at least a monthly basis, within thirty days after the end of the immediately preceding reporting
period. 
  
 23. Further Assurances. If CLF does not
exercise the Call Option as to all Purchased Mortgage Loans before the Expiration Date, then Bank shall: (a) notify CLF of the terms of any subsequent securitization or other disposition of Purchased Mortgage Loans; and (b) consider, in good faith,
any offer tendered to Bank by CLF for the purchase of the Purchased Mortgage Loans from Bank, provided that such offer is tendered to Bank prior to the earlier of (i) the date on which Bank has entered into a binding agreement with a third party
with respect to the disposition of Purchased Mortgage Loans or (ii) the date on which any securities that may be backed in whole or in part by Purchased Mortgage Loans have been “circled.” The parties shall take, from time to time
hereafter, such additional actions and execute and deliver such additional documents and instruments (at the requesting party’s expense) as may be reasonably necessary or advisable to: (i) evidence any transaction set forth or referred to in
this Agreement; (ii) to effectuate any provision of this Agreement; or (iii) ensure the priority, perfection or continuity of perfection of the security interest in and to the Purchased Mortgage Loans granted by CLF to Bank. 
  
 24. Notices. All notices permitted or required to be delivered under
the terms of this Agreement shall be delivered by telecopy, at the telecopy number listed below, with an original to follow by overnight delivery or certified U.S. mail to the following addresses. The telecopy numbers and addresses set forth below
may be changed from time to time by written notice sent to the other party to this Agreement. Receipt of any notice shall be deemed to have occurred on the first Business Day following the date on which delivery is made by telecopy. The addresses
and telecopy numbers for delivery of notices are as follows: 
  
 If to CLF, CLFC and CLF Holdings, Inc.: 
  
 Capital Lease Funding, L.P. 
 Attention: Mr. Paul H. McDowell 
 110 Maiden Lane, 36th Floor 
 New York, NY
10005 
 Telecopy: (212) 217-6301 
  
 CLFC HPII Inc. 
 Attention: Mr. Robert Perro

  

 18 

		
	 	  	 50 Charles Lindbergh Boulevard
 Uniondale,
NY 11553
 Telecopy: (516) 745-6787

		
	With a copy to:	  	 Mr. Alan Lawrence
 Cadwalader, Wickersham
& Taft
 100 Maiden Lane
 New York, NY 10038
 Telecopy: (212) 504-6666

		
	If to Bank:	  	 Bank of America, N.A.,
 Attention: Mr.
Robert D. Howlett
 100 North Tryon Street, 16th Floor
 NC1-007-16-10
 Charlotte, NC 28255
 Telecopy: (704)
386-2927

		
	With a copy to:	  	 Mr. Bradley E. Pearce
 Moore & Van
Allen, PLLC
 100 North Tryon Street, 47th Floor
 Charlotte, NC
28202-4003
 Telecopy: (704) 378-2095

  
 25. Miscellaneous
Provisions. The following provisions govern the effectiveness and interpretation of this Agreement: 
  
 (a) Captions. Underlined captions used herein are for ease of reference only and shall not be used in the interpretation of this
Agreement. 
  
 (b) Counterparts. This
Agreement may be executed in one or more counterparts, each of which when so executed shall constitute an original executed copy of this Agreement and which together shall constitute but one and the same instrument. 
  
 (c) Execution by Facsimile. This Agreement may be
executed and delivered by facsimile, and each party agrees that it shall be bound by this Agreement to the same extent as if such party had delivered an original executed copy hereof to the other party and that a facsimile copy of this Agreement
shall be competent, admissible evidence in any action, trial, arbitration or mediation of any dispute arising under or relating to this Agreement to the same extent as if it were the original executed instrument. Notwithstanding the foregoing, any
party that delivers this Agreement by facsimile shall ensure that an original executed copy hereof is delivered promptly to the other party or parties, without further demand. 
  
 (d) Entirety. This Agreement, and documents and instruments specifically referenced herein,
constitutes the complete and final agreement between the parties with respect to the subject matter hereof. All contemporaneous and prior agreements and understandings, whether oral or written, are hereby superseded and of no further 
  

 19 

 consequence or effect and shall not be binding on the parties or used in the interpretation of the
respective rights and obligations set forth in this Agreement. There are no oral agreements with respect to this Agreement or the transactions contemplated hereby between the parties hereto. 
  
 (e) Governing Law. This Agreement shall be construed
under the laws of the State of North Carolina, without giving effect to the choice-of-law provisions thereof. 
  
 (f) Binding Effect. This Agreement is and shall be binding on, and shall inure to the benefit of, the parties hereto and on their
respective successors, successors-in-interest and assigns. 
  
 (g) Jurisdiction. Any action arising out of or relating to this Agreement shall be heard by a court sitting in Mecklenburg County, North Carolina. 
  
 (h) Survival. CLF’s obligations hereunder shall survive execution and delivery of this Agreement
and any exercise by CLF of the Call Option with respect to less than all of the Pool Assets; and CLF’s obligations (with respect to Purchased Mortgage Loans for which neither CLF nor CLFC has exercised the Call Option) under Section 16 of this
Agreement shall also survive the Expiration Date. 
  
 (i) No Waiver. Bank, in its sole discretion, may refrain from time to time from providing CLF with notice of the occurrence of an Event of Default, a breach of any provision of this Agreement or any other act or event that would
constitute or that, with notice and the passage of time, would trigger an Event of Default hereunder. Any such election by Bank (i) shall not be a waiver of any of CLF’s obligations, or of any of Bank’s rights and remedies, under this
Agreement, and (ii) shall not bar Bank, in its sole discretion, from subsequently providing CLF with notice of the occurrence of an Event of Default, of a breach of any provision of this Agreement or of any other act or event that would constitute
or that, with notice and the passage of time, would trigger an Event of Default hereunder; provided, however, that Bank may not give such notice with respect to a previously-existing Event of Default or breach or any other act or event
that would constitute or that, with notice and the passage of time, would trigger an Event of Default hereunder unless it remains uncured as of the date on which Bank provides notice thereof to CLF. 
  
 [Remainder of Page Intentionally Left Blank] 
  

 20 

 IN WITNESS WHEREOF, the parties hereby execute and deliver this Agreement as of the date first set forth
above. 
  

	BANK OF AMERICA, N.A.
		
	By:	 	 /s/    ROBERT D. HOWLETT        

	 	

	 Title:
	 	 Vice President

  
  

	 CAPITAL LEASE FUNDING, L.P.,
 by
CLF HOLDINGS, INC., its general partner

		
	By:	 	 /s/    PAUL H. MCDOWELL      

	 	

	 Title:
	 	 Senior Vice President

  
  

	 CLFC HPII INC.

		
	By:	 	 /s/    ROBERT A. PERRO  

	 	

	 Title:
	 	 Vice President

  
  

	 CLF HOLDINGS, INC.

		
	By:	 	 /s/    PAUL H. MCDOWELL   

	 	

	 Title:
	 	 Senior Vice President

  

 21 

 EXHIBIT A 
  
 Form of Confirmation 
  

 A-1 

 EXHIBIT B 
  
 Form of Purchase Price Grid 
  

 B-1 

 EXHIBIT C 
  
 Form of Custody Agreement 
  

 C-1 

 EXHIBIT D 
  
 Form of Servicing Agreement 
  

 D-1 

 EXHIBIT E 
  
 Form of Security Agreement 
  

 E-1 

 EXHIBIT F 
  
 Form of Call Option Agreement 
  
  

 F-1 

 EXHIBIT G 
  
 Form of Contribution Agreement 
  

 G-1CALL OPTION AGREEMENT DATED JANUARY 31, 2000

 EXHIBIT 10.2 
  
 CALL OPTION AGREEMENT 
  
 This CALL OPTION AGREEMENT (this “Agreement”), dated as of January 31, 2000, is by and among Bank of America, N.A., a national
banking association with its principal offices in Charlotte, North Carolina (“Grantor” or “Bank”), Capital Lease Funding, L.P., a Delaware limited partnership with its principal offices in New York, New York
(“Buyer”), and CLFC HPII Inc., a Delaware corporation (“CLFC”) that is one of the Buyer’s general partners. 
  
 RECITALS 
  
 A. The parties to this Agreement are also parties to that certain Purchase and Sale Agreement, dated as of the date hereof (the “Purchase and Sale
Agreement”). Capitalized terms used but not defined herein have the meanings set forth in the Purchase and Sale Agreement. 
  
 B. Grantor is the owner of certain Pool Assets, consisting of Purchased Mortgage Loans, Converted Loans and Confirmed Loans. 
  
 C. Grantor desires to sell and grant to Buyer, and Buyer desires to purchase
and acquire from Grantor, a call option for the purchase from Grantor of Grantor’s rights, title and interests in and to, or arising under or in connection with, all or part of the Pool Assets. 
  
 D. CLFC has requested that, if certain events occur, it have the right to
exercise the call option after Buyer’s right to exercise the call option has expired; and Grantor and Buyer have agreed to this request by CLFC. 
  
 In consideration of the mutual agreements contained herein and for other consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties hereto agree as follows: 
  
 1. Definitions and Rules
for Construction. The following provisions govern the interpretation and application of this Agreement: 
  
 (a) Definitions. The following capitalized terms shall have the meanings set forth below: 
  
 “Call Notice”: A written notice from Buyer to Grantor in
form substantially similar to the form attached hereto as Exhibit A. 
  
 “Distribution”: A principal payment, or other payment received by Grantor or its agent in respect of a Pool Asset that is for the purpose of reducing the principal balance owed by a Mortgagor in
respect of such Pool Asset, including condemnation payments and proceeds from any Lease Enhancement Policy made in respect of such Pool Asset. 
  
 “Excluded Mortgage Loans”: Bank Loans or other Commercial Mortgage Loans owned by Grantor, excluding Commercial Mortgage Loans that have
been purchased by Grantor from Buyer. 
  
 “Exercise
Date”: Any Business Day during the Option Period on which Buyer or CLFC exercises the Call Option in whole or in part. 

 “Loan Documents”: All documents and instruments evidencing or relating to any Pool
Asset, including the following: 
  

	 	•	 	the original promissory note; 

  

	 	•	 	the original of any guaranty that may have been executed and delivered in connection therewith; 

  

	 	•	 	the recorded original of the Mortgage, or a copy thereof certified to be a true and complete copy of such original; 

  

	 	•	 	the recorded original of all assumption, modification, consolidation or extension agreements, if any, with respect to the Mortgage, or a copy thereof certified to be a true and
complete copy of such original; 

  

	 	•	 	the original assignment of the Mortgage; 

  

	 	•	 	duplicate originals of all intervening assignments of the Mortgage (if any); 

  

	 	•	 	the original assignment of leases and rents (if any); 

  

	 	•	 	copies of filed-stamped UCC-l financing statements or UCC-3 extension, assignment or modification statements (if any), or a copy thereof certified to be a true and complete copy of
such original; 

  

	 	•	 	original UCC-3 assignment statements, in blank assigning the UCC-l financing statements; 

  

	 	•	 	the original title insurance policy, final pro forma title insurance policy or marked and redated title insurance commitment for the Mortgage, or a copy thereof certified to be a
true and complete copy of such original; 

  

	 	•	 	a duplicate original of any security agreement, chattel mortgage or equivalent document executed in connection with the Mortgage, or a copy thereof certified to be a true and
complete copy of such original; 

  

	 	•	 	with respect to a Mortgage that does not allow the Mortgagor to self-insure, original binders and copies of related insurance policies (to the extent that said policies have been
delivered to Grantor); 

  

	 	•	 	binders for insurance policies or similar agreements insuring against losses resulting from any failure by a lessee of the Mortgaged Property to make any payment to the Mortgagor as
a result of a casualty, a condemnation or otherwise; 

  

	 	•	 	any other documents or instruments delivered by or on behalf of Mortgagor in respect of such Pool Asset; and 

  

	 	•	 	an original binder for any Lease Enhancement Policy. 

  
 “Option Period”: The period from the date of execution of the Agreement to and including the earlier of (i) 5:00 p.m., Eastern Time, on
the Termination Date or (ii) the Expiration Date. 
  
 “Substituted Mortgage Loan”: Any Purchased Mortgage Loan that is a Pool Asset and that is replaced with a Bank Loan, under the provisions of Section 2(d) of this Agreement, upon Buyer’s exercise of the Call Option.

  

 2 

 (b) Rules for Interpretation. As used in this Agreement, the word
“including” means “including, without limitation.” As may be required by the context, the singular of any defined term shall be deemed to also refer to the plural, and vice versa. 
  
 2. Call Option. Grantor hereby grants and sells to Buyer, and Buyer
hereby purchases from Grantor, the Call Option, subject to the following terms and conditions: 
  
 (a) Exercise. Buyer may exercise the Call Option in whole or in part, on one or more Exercise Dates, by delivering a duly executed
Call Notice to Grantor during the Option Period; provided, however, that Buyer may not exercise the Call Option unless Buyer is, at the time of exercise, in material compliance with the covenants set forth in Section 22 of the Purchase
and Sale Agreement. 
  
 (b) Payment of the
Exercise Price. Upon exercise of the Call Option, Buyer shall pay Grantor the Exercise Price for the Pool Assets specified in any Call Notice, by wire transfer of immediately available funds to Grantor’s account specified on Schedule I
hereto (or such other account as Grantor may specify in writing from time to time), on the earlier of: (i) the date on which the Securitization of all or a majority of such Pool Assets purchased by Buyer closes; (ii) the Termination Date; or (iii)
the 30th day after Grantor’s receipt from Buyer of a duly executed Call Notice. 
  
 (c) Pool Assets Purchased. If Buyer exercises the Call Option with respect to less than all Pool Assets, Buyer shall designate
which Pool Assets it wishes to purchase. Grantor shall have five Business Days to review Buyer’s request. If Grantor does not agree to each Pool Asset designated by Buyer, Grantor and Buyer shall confer with respect to which Pool Assets may be
purchased by Buyer. If Buyer and Grantor fail to reach a consensus with respect to which Pool Assets will be purchased, Grantor shall, in its sole discretion, designate which Pool Assets shall be delivered to Buyer, provided that such Pool Assets
shall be a representative sampling of all Pool Assets. If Buyer does not agree with Grantor’s designation of Pool Assets, then Buyer may rescind its exercise of the Call Option without prejudice; provided, however, that Buyer
shall not unreasonably disagree with Grantor’s designation(s) of Pool Assets to be purchased by Buyer. 
  
 (d) Right of Substitution. Notwithstanding the provisions of Section 2(c) and subject to the provision of this Section 2(d),
Grantor shall have the right to substitute Bank Loans for Pool Assets, provided that, on the date on which the sale of Pool Assets and Bank Loans to Buyer is consummated pursuant to an exercise of the Call Option, each Bank Loan shall be materially
similar to the relevant Substituted Mortgage Loan. For the purposes of this Section 2(d), a Bank Loan is materially similar to a Substituted Mortgage Loan if, with respect to the relevant Substituted Mortgage Loan, the Bank Loan: (i) bears interest
at a rate at least equal to the rate payable under the Substituted Mortgage Loan; (ii) has a comparable maturity date; (iii) is secured by a Mortgaged Property leased to a Tenant having, or whose lease obligations are guaranteed by a guarantor
having, a long-term unsecured debt rating that is the same or better than the long-term unsecured debt rating of the Tenant or of the guarantor of the lease obligations of the Tenant under the Substituted Mortgage Loan; (iv) is secured by a
Mortgaged Property leased to a Tenant in the same or a similar industry group as the Tenant under 
  

 3 

 
the lease of the Mortgaged Property securing the Substituted Mortgage Loan; (v) is substantially equivalent in outstanding principal amount as the
Substituted Mortgage Loan; and (vi) is secured by a Mortgaged Property subject to a lease substantially similar in maturity and other respects as the lease of the Mortgaged Property securing the Substituted Mortgage Loan. Prior to the sale to Buyer
of a Bank Loan in substitution for a Pool Asset, Grantor shall deliver to Buyer copies of the Bank Mortgage Loan Documents, and a statement of the outstanding balance or reserve balance with respect to such Bank Loan, for Buyer’s review. At the
sale of a Bank Loan to Buyer, Buyer shall pay Grantor the Exercise Price for such Bank Loan, which Exercise Price shall be: (i) the product of (x) the outstanding principal balance on such Bank Loan, as of the date of the sale, and (y) the
applicable multiplier determined under the Purchase Price Grid; or (ii) the maximum amount otherwise determined by application of the Purchase Price Grid to the outstanding principal balance of the Bank Loan as of the date of the sale. Additionally,
upon Grantor’s receipt of the Exercise Price in respect of a Bank Loan sold to Buyer under the provisions of this Section 2(d), Grantor shall deliver to Buyer the executed originals, properly endorsed or assigned, of the relevant Bank Mortgage
Loan Documents and a certificate, duly executed by an authorized representative of Grantor, representing and warranting that (A) each Bank Loan transferred to Buyer is free of any lien (other than any lien for ad valorem taxes that are not yet
payable) that has superior priority to, or that primes the lien of Grantor, encumbrance or impediment to transfer, (B) Grantor has good, valid and marketable title or right to sell and transfer the Bank Loan(s) to Buyer or its designee and (C) the
representations and warranties set forth in Section 21(b) of the Purchase and Sale Agreement are true and correct with respect to the Bank Loan(s) to the same extent as if such representations and warranties were made by Grantor for the Bank
Loan(s). If Buyer reasonably and in good faith determines that a Bank Loan is not a reasonable substitute for a proposed Substituted Mortgage Loan, then the Call Option shall be deemed to have been exercised without reference to the proposed
Substituted Mortgage Loan, and such proposed Substituted Mortgage Loan shall remain a Pool Asset. 
  
 (e) Retained Rights. Buyer acknowledges and agrees that Grantor retains all title, rights and interest to (i) each Pool Asset (and
all rights, claims and causes of action related thereto) prior to receipt of payment, in full, of an Exercise Price and other amounts due and payable under the provisions of Section 3(c) of this Agreement in respect of Pool Assets purchased pursuant
to the terms of this Agreement and (ii) all Pool Assets (including all rights, claims and causes of action related thereto) that are not purchased by Buyer by an exercise of the Call Option. 
  
 (f) Transfer of Pool Assets. After receipt of the
Exercise Price and any due and unpaid Option Premium, Option Margin Premium and/or Option Premium Adjustment Amount(s), Grantor will transfer to Buyer or its designee the Pool Assets and related Lease Enhancement Policies purchased by Buyer by
exercise of the Call Option. Grantor or its designee (including the Custodian) shall deliver the Mortgage Files for the appropriate Pool Assets and, if applicable, the Bank Mortgage Loan Files for Bank Loans to Buyer or its designee within three
Business Days of Grantor’s receipt of all amounts required to be paid under the provisions of Sections 2(b) and 3(c) of this Agreement, provided, however, that such Mortgage Files and Bank Mortgage Loan Files will be 

 

 4 

 
transferred to Buyer or its designee simultaneously with receipt by Grantor of all amounts required to be paid under the provisions of Sections 2(b) and 3(c)
of this Agreement if Buyer has given Grantor at least three Business Days prior written notice of its desire for a simultaneous transfer. 
  
 (g) Nonconforming Loans; Right of First Refusal. Notwithstanding any provision to the contrary contained in this Agreement, Grantor
shall not be required to sell any of the Pool Assets to Buyer upon Buyer’s exercise of the Call Option unless Buyer also purchases Non-Conforming Loans designated by Grantor if, after giving effect to the proposed purchase of Pool Assets by
Buyer pursuant to Buyer’s exercise of the Call Option, the aggregate of the Adjusted Book Amounts for all Prime Pool Assets does not or will not equal at least ninety percent (90%) of the aggregate of the Adjusted Book Amounts for all Purchased
Mortgage Loans. 
  
 (h) Termination of Call
Option Rights. On the Expiration Date, (i) the Call Option shall expire without notice or demand from Grantor and (ii) Buyer’s purchase rights for all Pool Assets shall terminate without notice. Upon any Securitization or any sale or
transfer to a third party of Pool Assets by Grantor, Grantor shall remit the Disposition Surplus to Buyer. Before any such Securitization or sale, Grantor shall: (a) notify Buyer of the terms of such Securitization or other disposition of Pool
Assets; and (b) consider, in good faith, any offer tendered by Buyer for the purchase of the Pool Assets, provided that such offer must be tendered to Grantor prior to the earlier of: (i) the date on which Grantor has entered into a binding
agreement with a third party with respect to the Securitization or other disposition of Pool Assets; (ii) the date on which any securities that may be backed in whole or in part by Pool Assets have been “circled”; or (iii) ten Business
Days after the date on which Grantor gives Buyer notice that Buyer may exercise its right of first refusal set forth herein. 
  
 3. Consideration. As part of the consideration for the Call Option granted by Grantor to Buyer, Buyer shall pay Grantor an Option Premium and other
amounts as set forth below: 
  
 (a) Option
Premium. Buyer shall pay Grantor the Option Premium for the Call Option upon the earliest of the following to occur of: (i) Buyer’s first exercise of the Call Option that results in Buyer’s purchase of Pool Assets with combined
Mortgage Loan Balances of at least $100,000,000; or (ii) December 31, 2000. If Buyer exercises the Call Option and such exercise results in Buyer’s purchase of Pool Assets with combined Mortgage Loan Balances of less than $100,000,000, then
Buyer, upon such exercise, shall pay Grantor a portion of the Option Premium, in an amount equal to 0.1% of the Mortgage Loan Balance(s) for the Pool Asset being purchased by Buyer by such exercise. Any and all such amounts received by Grantor shall
be credited against the Buyer’s obligation to pay the Option Premium. 
  
 (b) Option Margin Premium. Buyer shall pay Grantor the Option Margin Premium in arrears monthly after the Closing Date, until the Expiration Date, and shall be offset, no later than the second Business Day
following the fifteenth of any month (or the next following Business Day, if the fifteenth day of a month is not a Business Day), 
  

 5 

 
against Remittances received by the Servicer in respect of the applicable month. If the amount of Remittances received with respect to any month are
insufficient to fully offset the amount of the Option Margin Premium due for such month, then Buyer shall pay to Grantor the difference between the Option Margin Premium amount and the amount of Remittances received by Servicer or Grantor on the
later of (i) the twentieth (20th) day of any month (or the next Business Day after the 20th day of any month, if such 20th day is not a Business Day) or (ii) the second Business Day after the date on which Grantor notifies Buyer that Remittances for
the applicable month were insufficient to fully offset the Option Margin Premium for such month. 
  
 (c) Payment Upon Exercise. Buyer shall pay Grantor the Option Premium, if any such amount has not been paid previously by Buyer,
and/or any unpaid Option Premium Adjustment Amount, and/or any unpaid Option Margin Premium, upon the earliest to occur of (i) 30 days after the applicable Exercise Date, (ii) the Termination Date, or (iii) the effective date of a Securitization or
whole loan sale related to Buyer’s exercise of the Call Option. Buyer shall have no right, title or interest in or to any Pool Asset until Grantor has received, in good funds, the relevant Exercise Price and all such amounts. 
  
 4. Option Premium Adjustment. Grantor shall determine and inform Buyer
of the Market Value of all Pool Assets then-owned by Grantor on at least a bi-weekly basis If (a) the Market Value of the Pool Assets is less than the Mortgage Loan Balances of the Pool Assets or (b) the amount determined by subtracting the
Securitization Costs for all Pool Assets from the Market Value of all Pool Assets is less than 103% of the Adjusted Book Amount of all Pool Assets, then (i) Grantor may deliver a Market Deficit Notice to Buyer and to CLFC, and (ii) Buyer shall remit
payment of an Option Premium Adjustment Amount, in good funds, to Grantor within five Business Days of receipt of the Market Deficit Notice. Grantor shall hold for its own account all Option Premium Adjustment Amounts paid by Buyer in an
interest-bearing account. Prior to the Expiration Date, if Grantor has received payment of an Option Premium Adjustment Amount from Buyer and the Market Value of the Pool Assets subsequently increases such that the Market Value of all Pool Assets is
at least 103% of the Adjusted Book Amount of all Pool Assets, then within five Business Days of such increase Grantor shall pay to Buyer the amount by which the Market Value for all Pool Assets exceeds the greater of (i) 103% of the Adjusted Book
Amount of all Pool Assets or (ii) the sum of all Mortgage Loan Balances for all Pool Assets, together with all interest accrued thereon. In no event, however, shall Grantor be required to pay to Buyer any amount that, if aggregated with all prior
amounts previously refunded by Grantor to Buyer under the terms of this Section 4, would exceed the aggregate of all Option Premium Adjustment Amounts previously paid by Buyer to Grantor. Failure by Buyer to pay an Option Premium Adjustment Amount
within five Business Days after receipt of a Market Deficit Notice shall be an Event of Default, and Buyer shall have no further ability to exercise the Call Option. 
  
 5. Remittances. Prior to the Expiration Date, Grantor shall, or shall direct the Servicer to, disburse to Buyer on a
monthly basis the amount that is the difference between (i) Remittances received during the applicable month and (ii) the Option Margin Premium for the applicable month, provided that the amount of Remittances for the relevant period is at least
equal to the amount of the Option Margin Premium for such period. 
  

 6 

 6. Option Rights of CLFC. If an Event of Default occurs, Grantor shall promptly notify CLFC of
such Event of Default and CLFC may exercise the Call Option as to all Pool Assets, subject to the terms and conditions of sub-sections (d) through (f) of Section 2 of this Agreement, to the same extent as if all references to “Buyer” in
such sub-sections and in Sections 3(c) and 8 hereof were actually references to “CLFC.” CLFC may exercise the Call Option by (i) tendering to Grantor notice of an intent to exercise the Call Option, in form and substance reasonably similar
to the notice attached hereto as Exhibit B, within two Business Days after the date on which Grantor notifies CLFC that an Event of Default has occurred, and (ii) remitting payment to Grantor of the Exercise Price and all other amounts due
under the provisions of Section 3(c) of this Agreement within 30 days of Grantor’s receipt of the notice that CLFC is exercising its rights under this Section 6. Grantor shall refrain from exercising its liquidation rights, as set forth in
Section 2(h) of this Agreement and/or Sections 13 and 14 of the Purchase and Sale Agreement, until the earliest to occur of the following: (i) Grantor’s receipt of a notice from CLFC that CLFC is not exercising its option rights under this
Section 6; (ii) CLFC’s failure to give timely notice of its intent to exercise the Call Option; or (iii) CLFC’s failure to timely pay Bank all amounts due under the terms of this Section 6. CLFC shall have no other rights or interests
under this Agreement except as expressly set forth in this Section 6. CLFC shall have no right, title or interest in or to any Pool Asset (except for its purchase right, as set forth in this Section 6) until Grantor has received, in good funds, all
such amounts. 
  
 7. Representations and Warranties. Buyer,
Grantor and CLFC represent and warrant as follows: 
  
 (a) Mutual Representations and Warranties. Grantor hereby represents, warrants and acknowledges to Buyer, and Buyer and CLFC each hereby represents, warrants and acknowledges to Grantor, that: (i) it has full power and authority, and
has taken all action necessary to execute and deliver this Agreement, and all documents required to be executed and delivered by it hereunder, and to fulfill its obligations hereunder and thereunder, and to consummate the transactions contemplated
hereby and thereby; (ii) the making and performance by it of this Agreement, and all documents required to be executed by it hereunder, and to fulfill its obligations hereunder and thereunder, does not and will not violate any law or regulation of
the jurisdiction under which it exists, any other law or regulation applicable to it or any other agreement to which it is a party or by which it is bound; (iii) this Agreement, and all documents required to be executed by it hereunder have been
duly executed and delivered by it and constitute its legal, valid and binding obligations, enforceable in accordance with the respective terms hereunder or thereunder; and (iv) all approvals, authorizations or other actions by, or filings with, any
governmental authority necessary for the validity or enforceability of its obligations under this Agreement, and all documents required to be executed and delivered by it hereunder have been obtained. 
  
 (b) Buyer’s and CLFC’s Separate Representations
and Warranties. Buyer and CLFC each further represents, warrants and acknowledges to Grantor that: (i) Buyer and CLFC has received, reviewed and relied upon such information concerning the legal, business and financial condition of the Pool
Assets as Buyer and CLFC considers adequate to make an informed decision regarding the purchase of the Call Option; (ii) Buyer is a sophisticated purchaser with respect to the Call Option; (iii) Grantor has not 
  

 7 

 
given any investment advice or rendered any opinion to Buyer or CLFC as to whether the purchase of the Call Option is prudent, and neither Buyer nor CLFC is
relying on any representation or warranty of Grantor except as expressly set forth in this Agreement; (iv) Buyer and CLFC each acknowledges that the Exercise Price may vary from the fair market value of Pool Assets purchased pursuant to an exercise
of the Call Option; (v) without in any way implying that the Call Option is a “security” within the meaning of applicable securities laws, no offer to sell or solicitation of any offer to buy the Call Option or any portion of the Pool
Assets has been made by Grantor in a manner that would violate or require registration under such applicable securities laws, both Buyer and CLFC are sophisticated investors with respect to the Call Option, neither Buyer nor CLFC was formed for the
purchase of buying the Call Option and neither Buyer nor CLFC is buying the Call Option with the intent to sell, assign or distribute the Call Option in any manner that would violate applicable securities laws; and (vi) following an exercise of the
Call Option in respect of Pool Assets, neither Buyer nor CLFC shall have any recourse to Grantor with respect to Pool Assets purchased by virtue of any exercise of the Call Option. 
  
 (c) Grantor’s Separate Representations and Warranties. Grantor further represents, warrants and
acknowledges to Buyer and CLFC that: (i) neither Buyer nor CLFC has given any investment advice or rendered any opinion to Grantor as to whether the sale of the Call Option is prudent, and Grantor is not relying on any representation or warranty by
Buyer or CLFC except as expressly set forth in this Agreement; (ii) Grantor has received, reviewed and relied upon such information concerning the legal, business and financial condition of the Pool Assets as Grantor considers adequate to make an
informed decision regarding the sale of the Call Option; (iii) Grantor acknowledges that the Exercise Price may vary from the fair market value of the Pool Assets purchased pursuant to an exercise of the Call Option; and (iv) without implying that
the Call Option is a “security” within the meaning of applicable securities laws, Grantor is a sophisticated investor with respect to the Call Option, Grantor was not formed for the purpose of selling the Call Option and Grantor is not
selling the Call Option with a view to any public distribution thereof that would violate applicable securities laws. 
  
 8. Notice to Custodian and Servicer. Upon receipt of an Exercise Price and all other amounts due under the provisions of Section 3(c) of this
Agreement, Grantor shall inform the Custodian and the Servicer (or their respective successors or successors-in-interest) of the transfer of Pool Assets purchased by Buyer. Additionally, upon receipt of such Exercise Price, Grantor shall instruct:
(i) Custodian to transfer to Buyer or its designee all Loan Documents relating to all Pool Assets purchased in respect of such exercise of the Call Option or, if so requested by Buyer, to hold such Loan Documents on the behalf and expense of Buyer;
and (ii) Servicer to remit to Buyer or its designee all payments received by Servicer in respect of the purchased Pool Assets from and after the date on which Grantor receives the Exercise Price and all other amounts due under the provisions of
Section 3(c) of this Agreement and, at Buyer’s request, to service such Pool Assets on the behalf and expense of Buyer. If, however, Grantor or its designee has not received an original or a copy of any of the Loan Documents with respect to any
Pool Asset (excluding any Bank Loan) from Buyer when Buyer or CLFC exercises the Call Option, Grantor shall not be required to deliver the original of such document or instrument to Buyer, and Grantor’s failure to deliver such document(s) shall
not be a breach of Grantor’s 
  

 8 

 
obligations hereunder. Grantor shall have no liability for any expense or charge associated with any expenses incurred by or services performed by or on
account of Custodian and Servicer in respect of Pool Assets sold to Buyer upon exercise of the Call Option after the date on which the Exercise Price and other amounts due and payable under the provisions of Section 3(c) of this Agreement are paid
for such Pool Assets. 
  
 9. Principal Payments and Other
Payments. Should Grantor receive any Distribution on or after receipt from Buyer or CLFC of payment of an Exercise Price in respect of such Pool Assets, Grantor will, within three (3) Business Days after receipt of any such Distribution, pay the
same over to Buyer or CLFC, as appropriate, in the currency received by it. Until any Distributions are transferred to Buyer or CLEC pursuant to this Section 9, Grantor shall hold the same in trust for Buyer or CLFC and for Buyer’s or
CLFC’s sole account. If Grantor’s agent receives any Distribution on or after an Exercise Date in respect of such Pool Assets, Grantor shall, upon notice of such event, direct such agent to promptly remit such Distribution to Buyer or
CLFC, as appropriate. 
  
 10. Notices. All notices
permitted or required to be delivered under the terms of this Agreement shall be delivered by telecopy, at the telecopy number listed below, with an original to follow by overnight delivery or certified U.S. mail to the following addresses. The
telecopy numbers and addresses set forth below may be changed from time to time by written notice sent to the other party to this Agreement. Receipt of any notice shall be deemed to have occurred on the first Business Day following the date on which
delivery is made by telecopy. The addresses and telecopy numbers for delivery of notices are as follows: 
  

	            If to CLF:	  	Capital Lease Funding, L.P.
	 	  	Attention: Mr. Paul H. McDowell
	 	  	110 Maiden Lane, 36th Floor
	 	  	New York, NY 10005
	 	  	Telecopy: (212) 217-6301
		
	            With a copy to:	  	Mr. Alan Lawrence
	 	  	Cadwalader, Wickersham & Taft
	 	  	100 Maiden Lane
	 	  	New York, NY 10038
	 	  	Telecopy (212) 504-6666
		
	            and:	  	CLFC HPII Inc.
	 	  	Attention: Mr. Robert Perro
	 	  	50 Charles Lindbergh Blvd.
	 	  	Uniondale, NY 11553
	 	  	Telecopy: (516) 745-6787
		
	            If to Bank of America:	  	Bank of America, N.A.,
	 	  	Attention: Mr. Robert D. Howlett
	 	  	100 North Tryon Street, 16th Floor
	 	  	NC1-007-16-10

  

 9 

	 	  	Charlotte, NC 28255
	 	  	Telecopy: (704) 386-2927
		
	            With a copy to:	  	Mr. Bradley E. Pearce
	 	  	Moore & Van Allen, PLLC
	 	  	100 North Tryon Street, 47th Floor
	 	  	Charlotte, NC 28202-4003
	 	  	Telecopy: (704) 378-2095.

  
 11.
Indemnification. (a) Grantor shall indemnify and hold Buyer (and, as appropriate, Buyer’s fiduciaries, officers, managers, directors, partners, employees and agents) harmless from any actual losses, costs or expenses, including actual,
reasonable legal fees and expenses, that are incurred as a result of breaches of any of the representations, warranties, covenants or agreements made or given by Grantor in this Agreement; and (b) Buyer or CLFC, as appropriate, shall indemnify and
hold Grantor and its affiliates (and, as appropriate, their respective officers, directors, trustees, fiduciaries, managers, employees and agents) harmless from any actual losses, costs or expenses, including actual, reasonable legal fees and
expenses, that are incurred as a result of breaches of any of Buyer’s or CLFC’s representations, warranties, covenants or agreements made or given in this Agreement. 
  
 12. Costs and Expenses. Each party hereto shall be responsible for its own fees and expenses (including
attorneys’ fees and costs) in connection with any execution and delivery of a Call Notice. 
  
 13. Assignments. No party may assign this Call Option other than to an affiliate or subsidiary of such party, provided that such assignment has
been consented to in writing by the other parties hereto. No party shall unreasonably withhold its consent to any proposed transfer to an affiliate or subsidiary; nor shall any transfer alter, amend or modify any party’s obligations under this
Agreement. 
  
 14. Intent of Parties. The parties intend
that (i) a transfer of any Pool Assets purchased pursuant to an exercise of the Call Option shall constitute a true sale or absolute assignment of, rather than a pledge of an interest in, the Pool Assets so transferred to Buyer or CLFC and (ii)
there are no third-party beneficiaries of the parties’ rights and obligations under this Agreement. 
  
 15. Further Assurances. From and after the date hereof, each party hereto covenants and agrees to execute and deliver all such agreements,
instruments and documents and to take all such further actions any other party may reasonably deem necessary from time to time (at the requesting party’s expense) to carry out the intent and purposes of this Agreement and to consummate the
transactions contemplated hereby and to fully effect the transfer of the purchased Pool Assets to Buyer or CLFC, or their respective designee, upon proper exercise of the Call Option. 
  
 16. Termination at Will. Either Grantor or Buyer may terminate this Agreement upon 120 days written notice to the
other party hereto, and the 120th day following the date of any such notice shall be an Expiration Date. 
  

 10 

 17. Miscellaneous. The following provisions shall apply to this Agreement: 
  
 (a) Binding Effect and Benefit. This Agreement shall
be binding upon, enforceable by, and inure to the benefit of, the parties hereto and their respective successors and assigns, subject to the provisions of Section 13 of this Agreement. 
  
 (b) Survival. The representations, warranties, covenants, agreements and indemnities contained herein
shall survive the execution, delivery and performance of this Agreement and all documents to be executed in connection herewith. 
  
 (c) Complete Agreement; Amendments. This Agreement constitutes the full and final agreement among the parties hereto with respect
to the matters set forth herein; there are no prior or contemporaneous agreements with respect to the subject matter hereof that shall survive execution and delivery of this Agreement. Any amendments to, or waivers of, this Agreement shall be in
writing and signed by Grantor, Buyer, and CLFC. 
  
 (d) Choice of Law; Jurisdiction and Venue. This Agreement shall be interpreted under the laws of the State of North Carolina, without giving effect to the choice-of-law provisions thereof. Any action or proceeding relating in any
manner to this Agreement or the Call Option shall be heard by a court sitting in Mecklenburg County, North Carolina. 
  
 (e) Counterparts; Delivery by Telecopy. This Agreement may be executed in one or more counterparts, each of which shall constitute
an executed original hereof and which together shall constitute but one and the same instrument. Any party hereto may deliver an executed counterpart of this Agreement by telecopy, which telecopy, when so received, shall be fully enforceable against
the party delivering the executed original by telecopy and fully admissible in any action or proceeding to the same extent as if it were the original executed instrument. Without limiting the foregoing, any party delivering an executed original of
this Agreement by telecopy shall promptly deliver an executed original hereof to the other parties, without further notice or demand. 
  

 11 

 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the date first above
written. 
  

	 BUYER:
	 	 	 	 GRANTOR:

			
	 CAPITAL LEASE FUNDING, L.P.,
 by CLF HOLDINGS, INC., its general partner
	 	 	 	 BANK OF AMERICA, N.A.

					
	 By:
	 	 /s/ PAUL H. MCDOWELL

	 	 	 	 By:
	 	 /s/ ROBERT D. HOWLETT

	 Name:
	 	 Paul H. McDowell

	 	 	 	 Name:
	 	 Robert D. Howlett

	 Title:
	 	 Senior Vice President

	 	 	 	 Title:
	 	 Vice President

				
	 CLFC HPII INC.
	 	 	 	 	 	 
					
	 By:
	 	 /s/ ROBERT A. PERRO

	 	 	 	 	 	 
	 Name:
	 	 Robert A. Perro

	 	 	 	 	 	 
	 Title:
	 	 Vice President

	 	 	 	 	 	 

 SCHEDULE I 
  

Grantor’s Wire Instructions: 
  

	 Account Name:
	  	 Bank of America, N.A./Charlotte, NC

	 ABA#:
	  	 053-000-196

	 Acct#:
	  	 1366212250600 Corporate Credit Services

	 Attention:
	  	 Edna Benson

	 Reference:
	  	 Capital Lease Funding/Call Option

  
 Buyer’s Wire Instructions:

  

	 Bank Name:
	  	 Bank of New York

	 ABA#:
	  	 021 000 018

	 Acct#:
	  	 8900039248

	 Beneficiary:
	  	 Capital Lease Funding, L.P., 110 Maiden Lane, 36th Floor, New York, NY 10005

	 Attention:
	  	 Mary Kay Downey (212) 217-6300

	 Reference:
	  	 Call Option

 Exhibit A 
 [BUYER LETTERHEAD] 
  
 Call Notice

 [DATE] 
  
 Bank of America, N.A. 
 100 North Tryon Street, 16th Floor 
 Charlotte, North Carolina 28255 
 Attention: Mr. Robert D. Howlett 
  

	 	RE:	Call Option Agreement, dated as of January 31, 2000 (the “Agreement”), by and among Buyer, CLFC and Grantor (capitalized terms used herein and not otherwise defined
herein shall have the meanings given such terms in the Agreement) 

  
 Ladies and Gentlemen: 
  
 This is a “Call Notice” as referred to in Section 2(a) of the Agreement. Subject to the terms set forth in the Agreement, Buyer hereby purchases
from Grantor, subject to Grantor’s timely receipt of the Exercise Price and other amounts due under the terms of Section 3(c) of the Agreement, the following Pool Assets: 
  
 (DESCRIPTION OF PURCHASED POOL ASSETS, INCLUDING MORTGAGORS, 
 DATES AND AMOUNTS) 
  
 Buyer hereby represents and warrants to Grantor that each of the representations and warranties made by Buyer in the Agreement is true and correct as of the date hereof. 
  
 Please acknowledge your receipt of this Call Notice by signing in the space provided below and faxing an executed copy of
this letter to Buyer at (212) 217-6301 (attention: Mr. Paul H. McDowell). 
  

	 Sincerely,

	
	 CAPITAL LEASE FUNDING, L.P., by
 CLF HOLDINGS, INC., its general partner

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

  

 A-1 

	 RECEIPT ACKNOWLEDGED:

	
	 Bank of America, N.A.

		
	 By:
	 	  

	 Name:
	 	 Robert D. Howlett

	 Title:
	 	 Vice President

  

 A-2 

 Exhibit B 
 [CLFC LETTERHEAD] 
  
 Call Notice

 [DATE] 
  
 Bank of America, N.A. 
 100 North Tryon Street, 16th Floor 
 Charlotte, North Carolina
28255 
 Attention: Mr. Robert D. Howlett 
  

	 	RE:	Call Option Agreement, dated as of January 31, 2000 (the “Agreement”), by and among Buyer, CLFC and Grantor (capitalized terms used herein and not otherwise defined
herein shall have the meanings given such terms in the Agreement) 

  
 Ladies and Gentlemen: 
  
 This is a “Call
Notice” as referred to in Section 6 of the Agreement. Subject to the terms set forth in the Agreement, CLFC hereby purchases from Grantor, subject to Grantor’s timely receipt of the Exercise Price and other amounts due under the provisions
of Section 6 of the Agreement, the Pool Assets. 
  
 CLFC hereby
represents and warrants to Grantor that each of the representations and warranties made by CLFC in the Agreement is true and correct as of the date hereof. 
  
 Please acknowledge your receipt of this Call Notice by signing in the space provided below and faxing an executed copy of this letter to CLFC at (516)
745-6787 (attention: Mr. Robert Perro). 
  

	 Sincerely,
  
 CLFC HPII Inc.

		
	By:	 	 
	 	

	 Name:
 Title:
	 	 

  

	 RECEIPT ACKNOWLEDGED:
  
 Bank of America, N.A.

		
	By:	 	 
	 	

	 Name: Robert D. Howlett
 Title: Vice President

  

 B-1

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