Document:

Exhibit 10.35

 

Execution Version

 

Loan No: 5724

 

 

 

LOAN AGREEMENT

 

 

 

Dated as of May 1, 2013

 

Between

 

250 LIVINGSTON OWNER LLC

as Borrower

 

and

 

CITIGROUP GLOBAL MARKETS REALTY CORP.,

as Lender

 

     

    

    

 

TABLE OF CONTENTS

 

	 	 	 	Page
	 	 	 	 
	ARTICLE 1   DEFINITIONS; PRINCIPLES OF CONSTRUCTION	1
	 	 	 	 
	Section 1.1.	 	Definitions	1
	Section 1.2.	 	Principles of Construction	26
	 	 	 	 
	ARTICLE 2   GENERAL TERMS	26
	 	 	 	 
	Section 2.1.	 	Loan Commitment; Disbursement to Borrower	26
	Section 2.2.	 	The Loan	26
	Section 2.3.	 	Disbursement to Borrower	26
	Section 2.4.	 	The Note and the other Loan Documents	26
	Section 2.5.	 	Interest Rate	26
	Section 2.6.	 	Loan Payments	27
	Section 2.7.	 	Prepayments	28
	Section 2.8.	 	Defeasance	29
	 	 	 	 
	ARTICLE 3   REPRESENTATIONS AND WARRANTIES	32
	 	 	 	 
	Section 3.1.	 	Legal Status and Authority	32
	Section 3.2.	 	Validity of Documents	32
	Section 3.3.	 	Litigation	33
	Section 3.4.	 	Agreements	33
	Section 3.5.	 	Financial Condition	33
	Section 3.6.	 	Disclosure	33
	Section 3.7.	 	No Plan Assets	33
	Section 3.8.	 	Not a Foreign Person	34
	Section 3.9.	 	Intentionally Omitted	34
	Section 3.10.	 	Business Purposes	34
	Section 3.11.	 	Borrower Principal Place of Business	34
	Section 3.12.	 	Status of Property	34
	Section 3.13.	 	Financial Information	35
	Section 3.14.	 	Condemnation	36
	Section 3.15.	 	Separate Lots	36
	Section 3.16.	 	Insurance	36
	Section 3.17.	 	Use of Property	36
	Section 3.18.	 	Leases and Rent Roll	37
	Section 3.19.	 	Filing and Recording Taxes	38
	Section 3.20.	 	Management Agreement	38
	Section 3.21.	 	Illegal Activity/Forfeiture	38
	Section 3.22.	 	Taxes	38
	Section 3.23.	 	Permitted Encumbrances	38
	Section 3.24.	 	Third Party Representations	38
	Section 3.25.	 	Non-Consolidation Opinion Assumptions	39
	Section 3.26.	 	Federal Reserve Regulations	39
	Section 3.27.	 	Investment Company Act	39
	Section 3.28.	 	Fraudulent Conveyance	39

 

    i 

    

    

 

	Section 3.29.	 	Embargoed Person	39
	Section 3.30.	 	Patriot Act and OFAC Regulations	40
	Section 3.31.	 	Organizational Chart	40
	Section 3.32.	 	Bank Holding Company	41
	Section 3.33.	 	Intentionally Omitted	41
	Section 3.34.	 	Intentionally Omitted	41
	Section 3.35.	 	No Change in Facts or Circumstances; Disclosure	41
	 	 	 	 
	ARTICLE 4   BORROWER COVENANTS	41
	 	 	 	 
	Section 4.1.	 	Existence	41
	Section 4.2.	 	Legal Requirements	42
	Section 4.3.	 	Maintenance and Use of Property	42
	Section 4.4.	 	Waste	44
	Section 4.5.	 	Taxes and Other Charges	44
	Section 4.6.	 	Litigation	45
	Section 4.7.	 	Access to Property	45
	Section 4.8.	 	Notice of Default	45
	Section 4.9.	 	Cooperate in Legal Proceedings	45
	Section 4.10.	 	Performance by Borrower	45
	Section 4.11.	 	Intentionally Omitted	45
	Section 4.12.	 	Books and Records	45
	Section 4.13.	 	Estoppel Certificates	48
	Section 4.14.	 	Leases and Rents	48
	Section 4.15.	 	Management Agreement	49
	Section 4.16.	 	Payment for Labor and Materials	51
	Section 4.17.	 	Performance of Other Agreements	52
	Section 4.18.	 	Debt Cancellation	52
	Section 4.19.	 	ERISA	52
	Section 4.20.	 	No Joint Assessment	53
	Section 4.21.	 	Alterations	53
	Section 4.22.	 	Permanent Certificate of Occupancy	54
	 	 	 	 
	ARTICLE 5   ENTITY COVENANTS	54
	 	 	 	 
	Section 5.1.	 	Single Purpose Entity/Separateness	54
	Section 5.2.	 	Independent Director	58
	Section 5.3.	 	Change of Name, Identity or Structure	59
	Section 5.4.	 	Business and Operations	59
	 	 	 	 
	ARTICLE 6   NO SALE OR ENCUMBRANCE	59
	 	 	 	 
	Section 6.1.	 	Transfer Definitions	60
	Section 6.2.	 	No Sale/Encumbrance	61
	Section 6.3.	 	Permitted Equity Transfers	61
	Section 6.4.	 	Permitted Property Transfer (Assumption)	61
	Section 6.5.	 	Lender’s Rights	63
	Section 6.6.	 	OFAC, Patriot Act and Transfers	64

 

    ii 

    

    

 

	ARTICLE 7   INSURANCE; CASUALTY; CONDEMNATION; RESTORATION	64
	 	 	 	 
	Section 7.1.	 	Insurance	64
	Section 7.2.	 	Casualty	69
	Section 7.3.	 	Condemnation	69
	Section 7.4.	 	Restoration	70
	 	 	 	 
	ARTICLE 8   RESERVE FUNDS	74
	 	 	 	 
	Section 8.1.	 	Immediate Repair Funds	74
	Section 8.2.	 	Replacement Reserve Funds	75
	Section 8.3.	 	Leasing Reserve Funds	77
	Section 8.4.	 	Operating Expense Funds	77
	Section 8.5.	 	Excess Cash Flow Funds	78
	Section 8.6.	 	Tax and Insurance Funds	79
	Section 8.7.	 	The Accounts Generally	80
	Section 8.8.	 	Letters of Credit	82
	Section 8.9.	 	Required Violation Removal Reserve Account	83
	 	 	 	 
	ARTICLE 9   CASH MANAGEMENT	83
	 	 	 	 
	Section 9.1.	 	Establishment of Certain Accounts	83
	Section 9.2.	 	Deposits into the Restricted Account; Maintenance of Restricted Account	84
	Section 9.3.	 	Disbursements from the Cash Management Account	86
	Section 9.4.	 	Withdrawals from the Debt Service Account	86
	Section 9.5.	 	Payments Received Under this Agreement	86
	 	 	 	 
	ARTICLE 10   EVENTS OF DEFAULT; REMEDIES	87
	 	 	 	 
	Section 10.1.	 	Event of Default	87
	Section 10.2.	 	Remedies	89
	 	 	 	 
	ARTICLE 11   SECONDARY MARKET	91
	 	 	 	 
	Section 11.1.	 	Securitization	91
	Section 11.2.	 	Disclosure	93
	Section 11.3.	 	Reserves/Escrows	94
	Section 11.4.	 	Servicer	94
	Section 11.5.	 	Rating Agency Costs	94
	Section 11.6.	 	Mezzanine Option	94
	Section 11.7.	 	Conversion to Registered Form	94
	Section 11.8.	 	General Borrower’s Costs of Compliance	95
	 	 	 	 
	ARTICLE 12   INDEMNIFICATIONS	95
	 	 	 	 
	Section 12.1.	 	General Indemnification	95
	Section 12.2.	 	Mortgage and Intangible Tax Indemnification	95
	Section 12.3.	 	ERISA Indemnification	95
	Section 12.4.	 	Duty to Defend, Legal Fees and Other Fees and Expenses	96
	Section 12.5.	 	Survival	96
	Section 12.6.	 	Environmental Indemnity	96

 

    iii 

    

    

 

	ARTICLE 13   EXCULPATION	97
	 	 	 	 
	Section 13.1.	 	Exculpation	97
	 	 	 	 
	ARTICLE 14   NOTICES	99
	 	 	 	 
	Section 14.1.	 	Notices	99
	 	 	 	 
	ARTICLE 15   FURTHER ASSURANCES	100
	 	 	 	 
	Section 15.1.	 	Replacement Documents	100
	Section 15.2.	 	Recording of Security Instrument, etc	100
	Section 15.3.	 	Further Acts, etc	101
	Section 15.4.	 	Changes in Tax, Debt, Credit and Documentary Stamp Laws	101
	 	 	 	 
	ARTICLE 16   WAIVERS	102
	 	 	 	 
	Section 16.1.	 	Remedies Cumulative; Waivers	102
	Section 16.2.	 	Modification, Waiver in Writing	102
	Section 16.3.	 	Delay Not a Waiver	102
	Section 16.4.	 	Waiver of Trial by Jury	102
	Section 16.5.	 	Waiver of Notice	103
	Section 16.6.	 	Remedies of Borrower	103
	Section 16.7.	 	Marshalling and Other Matters	103
	Section 16.8.	 	Waiver of Statute of Limitations	103
	Section 16.9.	 	Waiver of Counterclaim	103
	Section 16.10.	 	Sole Discretion of Lender	104
	 	 	 	 
	ARTICLE 17    MISCELLANEOUS	104
	 	 	 	 
	Section 17.1.	 	Survival	104
	Section 17.2.	 	Governing Law	104
	Section 17.3.	 	Headings	106
	Section 17.4.	 	Severability	106
	Section 17.5.	 	Preferences	106
	Section 17.6.	 	Expenses	107
	Section 17.7.	 	Cost of Enforcement	107
	Section 17.8.	 	Schedules Incorporated	107
	Section 17.9.	 	Offsets, Counterclaims and Defenses	107
	Section 17.10.	 	No Joint Venture or Partnership; No Third Party Beneficiaries	107
	Section 17.11.	 	Publicity	108
	Section 17.12.	 	Limitation of Liability	108
	Section 17.13.	 	Conflict; Construction of Documents; Reliance	108
	Section 17.14.	 	Entire Agreement	109
	Section 17.15.	 	Liability	109
	Section 17.16.	 	Duplicate Originals; Counterparts	109
	Section 17.17.	 	Brokers	110

 

    iv 

    

    

 

LOAN AGREEMENT

 

THIS LOAN AGREEMENT,
dated as of May 1, 2013 (as amended, restated, replaced, supplemented or otherwise modified from time to time, this “Agreement”),
between CITIGROUP GLOBAL MARKETS REALTY CORP., having an address at 388 Greenwich Street, 19th Floor, New York, New York
10013 (together with its successors and/or assigns, “Lender”) and 250 LIVINGSTON OWNER LLC, a Delaware
limited liability company having its principal place of business at c/o Berkshire Capital, 4611 12th Avenue, Apt. 1L, Brooklyn,
New York 11219 (together with its successors and/or assigns, “Borrower”).

 

RECITALS:

 

Borrower desires to
obtain the Loan (defined below) from Lender.

 

Lender is willing to
make the Loan to Borrower, subject to and in accordance with the terms of this Agreement and the other Loan Documents (defined
below).

 

In consideration of
the making of the Loan by Lender and the covenants, agreements, representations and warranties set forth in this Agreement, the
parties hereto hereby covenant, agree, represent and warrant as follows:

 

ARTICLE 1

 

DEFINITIONS; PRINCIPLES OF CONSTRUCTION

 

Section 1.1.          Definitions.

 

For all purposes of
this Agreement, except as otherwise expressly required or unless the context clearly indicates a contrary intent:

 

“50% Required
Violation Removal Reserve Release Conditions” shall mean Borrower providing evidence reasonably satisfactory to Lender
that each of the Violations identified on Schedule 4.2(b) attached hereto and made a part hereof has been satisfied in full and
removed from the applicable public records.

 

“Acceptable
LLC” shall mean a limited liability company formed under Delaware or Maryland law which (i) has at least one springing
member, which, upon the dissolution of all of the members or the withdrawal or the disassociation of all of the members from such
limited liability company, shall immediately become the sole member of such limited liability company, and (ii) otherwise meets
the Rating Agency criteria then applicable to such entities.

 

“Account Collateral”
shall mean (i) the Accounts, and all cash, checks, drafts, certificates and instruments, if any, from time to time deposited or
held in the Accounts from time to time; (ii) any and all amounts invested in Permitted Investments; (iii) all interest, dividends,
cash, instruments and other property from time to time received, receivable or otherwise payable in respect of, or in exchange
for, any or all of the foregoing; and (iv) to the extent not covered by clauses (i) - (iii) above, all “proceeds” (as
defined under the UCC as in effect in the State in which the Accounts are located) of any or all of the foregoing.

 

     

    

    

 

“Accounts”
shall mean the Cash Management Account, the Debt Service Account, the Restricted Account, the Tax Account, the Insurance Account,
the Replacement Reserve Account, the Immediate Repair Account, the Leasing Reserve Account, the Excess Cash Flow Account, the Operating
Expense Account, the Required Violation Removal Reserve Account and any other account established by this Agreement or the other
Loan Documents.

 

“Act”
is defined in Section 5.1 hereof.

 

“Affiliate”
shall mean, as to any Person, any other Person that, directly or indirectly, is in Control of, is Controlled by or is under
common Control with such Person or is a director or officer of such Person or of an Affiliate of such Person.

 

“Affiliated
Manager” shall mean any managing agent of the Property in which Borrower, Guarantor, Sponsor, any SPE Component
Entity (if any) or any Affiliate of such entities has, directly or indirectly, any legal, beneficial or economic interest.

 

“ALTA”
shall mean American Land Title Association, or any successor thereto.

 

“Alteration
Threshold” shall mean an amount equal to 5% of the outstanding principal amount of the Loan.

 

“Annex”
shall have the meaning set forth in Section 3.30 hereof.

 

“Approved
Accounting Method” shall mean GAAP, federal tax basis accounting (consistently applied) or such other method of
accounting, consistently applied, as may be reasonably acceptable to Lender.

 

“Approved
Annual Budget” shall have the meaning set forth in Section 4.12 hereof.

 

“Approved
Bank” means (a) a bank or other financial institution which has the Required Rating, (b) if a Securitization has
not occurred, a bank or other financial institution acceptable to Lender or (c) if a Securitization has occurred, a bank or other
financial institution with respect to which Lender shall have received a Rating Agency Confirmation.

 

“Approved
Extraordinary Expense” shall mean an operating expense of the Property not set forth on the Approved Annual Budget
but approved by Lender in writing (which such approval shall not be unreasonably withheld or delayed).

 

“Approved
ID Provider” shall mean each of CT Corporation, Corporation Service Company, National Registered Agents, Inc.,
Wilmington Trust Company, Stewart Management Company and Lord Securities Corporation; provided, that, (A) the foregoing shall be
deemed Approved ID Providers unless and until disapproved by the Rating Agencies and (B) additional national providers of Independent
Directors may be deemed added to the foregoing hereunder to the extent approved in writing by Lender and the Rating Agencies.

 

“Approved
Operating Expense” shall mean an operating expense of the Property set forth on the Approved Annual Budget.

 

     2

    

    

 

“Assignment
of Management Agreement” shall mean, if Borrower enters into a Management Agreement pursuant to the terms hereof,
that certain Conditional Assignment of Management Agreement to be to be entered into by and between Lender, Borrower and Manager
contemporaneously with such Management Agreement, as the same may thereafter be amended, restated, replaced, extended, renewed,
supplemented or otherwise modified from time to time.

 

“Award”
shall mean any compensation paid by any Governmental Authority in connection with a Condemnation in respect of all or any part
of the Property.

 

“Bank”
shall be deemed to refer to the bank or other institution maintaining the Restricted Account pursuant to the Restricted Account
Agreement.

 

“Bankruptcy
Code” shall mean Title 11 of the United States Code entitled “Bankruptcy”, as amended from
time to time, and any successor statute or statutes and all rules and regulations from time to time promulgated thereunder, and
any comparable foreign laws relating to bankruptcy, insolvency or creditors’ rights.

 

“Bankruptcy
Event” shall mean the occurrence of any one or more the of the following: (i) Borrower or any SPE Component Entity
shall commence any case, proceeding or other action (A) under the Bankruptcy Code and/or any Creditors Rights Laws seeking to have
an order for relief entered with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or seeking reorganization,
liquidation or dissolution or (B) seeking appointment of a receiver, trustee, custodian, conservator or other similar official
for it or for all or any substantial part of its assets; (ii) Borrower or any SPE Component Entity shall make a general assignment
for the benefit of its creditors; (iii) any Restricted Party (or Affiliate thereof) files, or joins or colludes in the filing of,
(A) an involuntary petition against Borrower or SPE Component Entity under the Bankruptcy Code or any other Creditors Rights Laws,
or solicits or causes to be solicited or colludes with petitioning creditors for any involuntary petition under the Bankruptcy
Code or any other Creditors Rights Laws against Borrower or any SPE Component Entity or (B) any case, proceeding or other action
seeking issuance of a warrant of attachment, execution, distraint or similar process against all or any substantial part of Borrower’s
or any SPE Component Entity’s assets; (iv) Borrower or any SPE Component Entity files an answer consenting to or otherwise
acquiescing in or joining in any involuntary petition filed against it, by any other Person under the Bankruptcy Code or any other
Creditors Rights Laws, or solicits or causes to be solicited or colludes with petitioning creditors for any involuntary petition
from any Person; (v) any Restricted Party (or Affiliate thereof) consents to or acquiesces in or joins in an application for the
appointment of a custodian, receiver, trustee, or examiner for Borrower, any SPE Component Entity or any portion of the Property;
(vi) Borrower or any SPE Component Entity makes an assignment for the benefit of creditors, or admits, in writing or in any legal
proceeding, its insolvency or inability to pay its debts as they become due; (vii) any Restricted Party (or Affiliate thereof)
contesting or opposing any motion made by Lender to obtain relief from the automatic stay or seeking to reinstate the automatic
stay in the event of any proceeding under the Bankruptcy Code or any other Creditors Rights Laws involving Sponsor or its subsidiaries;
(viii) any Restricted Party (or Affiliate thereof) taking any action in furtherance of, in collusion with respect to or indicating
its consent to, approval of, or acquiescence in, any of the acts set forth in items (i) through (vii) above; and (ix) in the event
Lender receives less than the full value of its claim in any proceeding under the Bankruptcy Code or any other Creditors Rights
Laws, Sponsor or any of its Affiliates receiving an equity interest or other financial benefit of any kind as a result of a “new
value” plan or equity contribution.

 

     3

    

    

 

“Borrower
Party” and “Borrower Parties” shall mean each of Borrower, any SPE Component Entity, Sponsor and Guarantor.

 

“Business
Day” shall mean a day on which commercial banks are not authorized or required by applicable law to close in New York,
New York.

 

“Cash Flow
Adjustments” shall mean adjustments made by Lender in its calculation of Underwritable Cash Flow and the components thereof,
in each case, based upon Lender and Rating Agency underwriting criteria, which such adjustments shall include, without limitation,
adjustments (A) for (i) items of a non-recurring nature, (ii) a credit loss/vacancy allowance equal to the greater of actual and
underwritten vacancy and (iii) imminent liabilities and/or other expense increases (including, without limitation, imminent increases
to Taxes and Insurance Premiums); and (B) to exclude rental income attributable to any Tenant (i) in bankruptcy that has not affirmed
its Lease in the applicable bankruptcy proceeding pursuant to a final, non- appealable order of a court of competent jurisdiction,
(ii) in monetary default under its Lease beyond any applicable notice and cure periods, (iii) that has expressed its intention
(directly, constructively or otherwise) to not renew, terminate, cancel and/or reject its applicable Lease, (iv) under a non-residential
Lease whose tenancy at the Property is month-to-month, and/or (v) under a non-residential Lease which expires within 60 days or
less of the applicable date of calculation hereunder (an “Expiring Lease”), provided, however, that if Lender
receives a fully executed lease covering the space under the Expiring Lease (“Replacement Lease”) and such Replacement
Lease (a) commences no later than sixty (60) calendar days following the scheduled expiration of the term of the Expiring Lease,
(b) contains terms no less favorable to Borrower than those of the Expiring Lease, and (c) is otherwise in accordance with all
requirements contained in this Agreement (including, without limitation, Section 4.14 hereof), then the rental income under the
Expiring Lease during such 60 day or less period, net an amount equal to any free rent or concessions attributable to the Replacement
Lease, shall not be excluded from Underwritable Cash Flow; provided further, however, that rental income attributable
to any residential Tenant (1) whose tenancy at the Property is month-to-month, and/or (2) which expires within 60 days or less
of the applicable date of calculation hereunder, shall not be excluded from Underwritable Cash Flow.

 

“Cash Management
Account” shall have the meaning set forth in Section 9.1 hereof.

 

“Casualty”
shall have the meaning set forth in Section 7.2.

 

“Casualty
Consultant” shall have the meaning set forth in Section 7.4 hereof.

 

“Change in
Use” shall have the meaning set forth in Section 4.3(b) hereof.

 

“City of New
York” shall mean The City of New York, a municipal corporation, acting through the Department of Citywide Administrative
Services.

 

“Closing Date”
shall mean the date of the funding of the Loan.

 

     4

    

    

 

“Condemnation”
shall mean a temporary or permanent taking by any Governmental Authority as the result, in lieu or in anticipation, of the exercise
of the right of condemnation or eminent domain, of all or any part of the Property, or any interest therein or right accruing thereto,
including any right of access thereto or any change of grade affecting the Property or any part thereof.

 

“Condemnation
Net Proceeds” shall mean the Net Proceeds described in subsection (ii) of the definition of “Net Proceeds”
as set forth herein.

 

“Condemnation
Payment” shall have the meaning set forth in Section 7.4(c) hereof.

 

“Control”
shall mean the power to direct the management and policies of an entity, directly or indirectly, whether through the ownership
of voting securities or other beneficial interests, by contract or otherwise. The terms “Controlled” and “Controlling”
shall have correlative meanings.

 

“Covered Rating
Agency Information” shall mean any Provided Information furnished to the Rating Agencies in connection with issuing,
monitoring and/or maintaining the Securities.

 

“Creditors
Rights Laws” shall mean any existing or future law of any jurisdiction, domestic or foreign, relating to bankruptcy,
insolvency, reorganization, conservatorship, arrangement, adjustment, winding-up, liquidation, dissolution, composition or other
relief with respect to its debts or debtors.

 

“Debt”
shall mean the outstanding principal amount set forth in, and evidenced by, this Agreement and the Note together with all interest
accrued and unpaid thereon and all other sums due to Lender in respect of the Loan under the Note, this Agreement or the other
Loan Documents (including, without limitation, all costs and expenses payable to Lender thereunder).

 

“Debt Service”
shall mean, with respect to any particular period of time, scheduled principal (if applicable) and interest payments hereunder.

 

“Debt Service
Account” shall have the meaning set forth in Section 9.1 hereof.

 

“Debt Service
Coverage Ratio” shall mean the ratio calculated by Lender on a monthly basis of (i) the Underwritable Cash Flow to (ii)
the aggregate amount of debt service which would be due for the twelve (12) month period immediately preceding the date of calculation;
provided, that, the foregoing shall be calculated by Lender (A) based upon actual amount of debt service which would be due for
such period (B) assuming that the Loan had been in place for the entirety of said period and (C) disregarding any “interest
only” period under the Loan and assuming that the constant principal and interest payments provided for hereunder were due
for the entirety of said period.

 

     5

    

    

 

“Deemed Approval
Requirements” shall mean, with respect to any matter, that (i) no Event of Default shall have occurred and be continuing
(either at the date of any notices specified below or as of the effective date of any deemed approval), (ii) Borrower shall have
sent Lender a written request for approval with respect to such matter in accordance with the applicable terms and conditions hereof
(the “Initial Notice”), which such Initial Notice shall have been (A) accompanied by any and all required information
and documentation relating thereto as may be reasonably required in order to approve or disapprove such matter (the “Approval
Information”) and (B) marked in bold lettering with the following language: “LENDER’S RESPONSE IS REQUIRED
WITHIN TEN (10) BUSINESS DAYS OF RECEIPT OF THIS NOTICE PURSUANT TO THE TERMS OF A LOAN AGREEMENT BETWEEN THE UNDERSIGNED AND LENDER”
and the envelope containing the Initial Notice shall have been marked “PRIORITY-DEEMED APPROVAL MAY APPLY”; (iii) Lender
shall have failed to respond to the Initial Notice within the aforesaid time-frame; (iv) Borrower shall have submitted a second
request for approval with respect to such matter in accordance with the applicable terms and conditions hereof (the “Second
Notice”), which such Second Notice shall have been (A) accompanied by the Approval Information and (B) marked in bold
lettering with the following language: “LENDER’S RESPONSE IS REQUIRED WITHIN FIVE (5) BUSINESS DAYS OF RECEIPT OF THIS
NOTICE PURSUANT TO THE TERMS OF A LOAN AGREEMENT BETWEEN THE UNDERSIGNED AND LENDER” and the envelope containing the Second
Notice shall have been marked “PRIORITY-DEEMED APPROVAL MAY APPLY”; and (v) Lender shall have failed to respond to
the Second Notice within the aforesaid time-frame. For purposes of clarification, Lender requesting additional and/or clarified
information, in addition to approving or denying any request (in whole or in part), shall be deemed a response by Lender for purposes
of the foregoing.

 

“Default”
shall mean the occurrence of any event hereunder or under the Note or the other Loan Documents which, but for the giving of notice
or passage of time, or both, would be an Event of Default.

 

“Default Rate”
shall mean, with respect to the Loan, a rate per annum equal to the lesser of (i) the Maximum Legal Rate, or (ii) five percent
(5%) above the Interest Rate.

 

“Default Yield
Maintenance Premium” shall mean an amount equal to the Yield Maintenance Premium except that when calculating the Yield
Maintenance Premium, the reference to “Interest Rate” in the definition of “Calculated Payments” shall
be deemed to mean and refer to the “Default Rate”.

 

“Defeasance
Approval Item” shall have the meaning set forth in Section 2.8 hereof.

 

“Defeasance
Collateral Account” shall have the meaning set forth in Section 2.8 hereof.

 

“Disclosure
Documents” shall mean, collectively and as applicable, any offering circular, prospectus, prospectus supplement, private
placement memorandum or other offering document, in each case, in connection with a Securitization.

 

“Eligible
Account” shall mean a separate and identifiable account from all other funds held by the holding institution that is
either (a) an account or accounts maintained with a federal or state-chartered depository institution or trust company which (i)
complies with the definition of Eligible Institution, (ii) has a combined capital and surplus of at least $50,000,000 and (iii)
has corporate trust powers and is acting in its fiduciary capacity or (b) a segregated trust account or accounts maintained with
the corporate trust department of a federal or state chartered depository institution which (i) is subject to regulations regarding
fiduciary funds on deposit substantially similar to 12 C.F.R. §9.10(b), (ii) has a combined capital and surplus of at least
$50,000,000, (iii) is subject to supervision or examination by federal and state authority and (iv) has corporate trust powers
and is acting in its fiduciary capacity. An Eligible Account will not be evidenced by a certificate of deposit, passbook or other
instrument.

 

     6

    

    

 

“Eligible
Institution” shall mean (a) a depository institution or trust company insured by the Federal Deposit Insurance Corporation
(i) the short term unsecured debt obligations or commercial paper of which are rated at least “A-1+” (or its equivalent)
from each of the Rating Agencies (in the case of accounts in which funds are held for thirty (30) days or less) and (ii) the long
term unsecured debt obligations of which are rated at least “A+” (or its equivalent) from each of the Rating Agencies
(in the case of accounts in which funds are held for more than thirty (30) days) or (b) such other depository institution otherwise
approved by the Rating Agencies from time-to-time.

 

“Embargoed
Person” shall have the meaning set forth in Section 3.29 hereof.

 

“Environmental
Indemnity” shall mean that certain Environmental Indemnity Agreement, dated as of the date hereof, executed by Borrower
and Guarantor in connection with the Loan for the benefit of Lender, as the same may be amended, restated, replaced, supplemented
or otherwise modified from time to time.

 

“Environmental
Laws” shall have the meaning set forth in the Environmental Indemnity.

 

“Equity Collateral”
shall have the meaning set forth in Section 11.6 hereof.

 

“ERISA”
shall mean the Employee Retirement Income Security Act of 1974, as the same may heretofore have been or shall be amended, restated,
replaced or otherwise modified.

 

“Event of
Default” shall have the meaning set forth in Section 10.1 hereof.

 

“Excess Cash
Flow” shall have the meaning set forth in Section 9.3 hereof.

 

“Excess Cash
Flow Account” shall have the meaning set forth in Section 8.5 hereof.

 

“Excess Cash
Flow Funds” shall have the meaning set forth in Section 8.5 hereof.

 

“Exchange
Act” shall mean the Securities and Exchange Act of 1934, as amended.

 

“Exculpated
Parties” shall have the meaning set forth in Section 13.1 hereof.

 

“Fitch”
shall mean Fitch, Inc.

 

“Flood Insurance
Acts” shall have the meaning set forth in Section 7.1 hereof.

 

“GAAP”
shall mean generally accepted accounting principles in the United States of America as of the date of the applicable financial
report.

 

     7

    

    

 

“Government
Securities” shall mean “government securities” as defined in Section 2(a)(16) of the Investment Company Act
of 1940 and within the meaning of Treasury Regulation Section 1.860G-2(a)(8); provided, that, (i) such “government securities”
are not subject to prepayment, call or early redemption, (ii) to the extent that any REMIC Requirements require a revised and/or
alternate definition of “government securities” in connection with any defeasance hereunder, the foregoing shall be
deemed amended in a manner commensurate therewith and (iii) the aforesaid laws and regulations shall be deemed to refer to the
same as may be and/or may hereafter be amended, restated, replaced or otherwise modified.

 

“Governmental
Authority” shall mean any court, board, agency, commission, office or other authority of any nature whatsoever for any
governmental unit (federal, state, county, district, municipal, city or otherwise) whether now or hereafter in existence.

 

“Gross Rents”
shall mean an amount equal to annual rental income reflected in a current rent roll for all Tenants paying rent, open for business
and in actual physical occupancy of their respective space demised pursuant to Leases which are in full force and effect.

 

“Guarantor”
shall mean David Bistricer, an individual.

 

“Guaranty”
shall mean that certain Limited Recourse Guaranty executed by Guarantor and dated as of the date hereof.

 

“HRA Excess
Cash Flow Threshold” shall have the meaning set forth in Section 8.5(b) hereof.

 

“HRA Sweep
Cap” shall mean the amount of One Million Seven Hundred Thousand Dollars ($1,700,000).

 

“HRA Trigger
Deposit” shall have the meaning set forth in Section 8.5(a) hereof.

 

“HRA Trigger
Deposit Release Conditions” shall mean, subsequent to the occurrence of a HRA Trigger Event, Borrower (i) leasing the
entire space demised pursuant to the NYC HRA Lease in accordance with the applicable terms and conditions hereof and (ii) the applicable
Tenant under such Lease being in actual, physical occupancy of, and open to the public for business in, the space demised under
its Lease and paying the full amount of the rent due under its Lease

 

“HRA Trigger
Period” shall have the meaning set forth in Section 8.5(b) hereof.

 

“Immediate
Repair Account” shall have the meaning set forth in Section 8.1 hereof.

 

“Immediate
Repair Funds” shall have the meaning set forth in Section 8.1 hereof.

 

“Immediate
Repairs” shall have the meaning set forth in Section 8.1 hereof.

 

“Improvements”
shall have the meaning set forth in the granting clause of the Security Instrument.

 

     8

    

    

 

“Indebtedness”
shall mean, for any Person, any indebtedness or other similar obligation for which such Person is obligated (directly or indirectly,
by contact, operation of law or otherwise), including, without limitation, (i) all indebtedness of such Person for borrowed money,
for amounts drawn under a letter of credit, or for the deferred purchase price of property for which such Person or its assets
is liable, (ii) all unfunded amounts under a loan agreement, letter of credit, or other credit facility for which such Person would
be liable if such amounts were advanced thereunder, (iii) all amounts required to be paid by such Person by contract and/or as
a guaranteed payment (including, without limitation, any such amounts required to be paid to partners and/or as a preferred or
special dividend, including any mandatory redemption of shares or interests), (iv) all indebtedness incurred and/or guaranteed
by such Person, directly or indirectly (including, without limitation, contractual obligations of such Person), (v) all obligations
under leases that constitute capital leases for which such Person is liable, and (vi) all obligations of such Person under interest
rate swaps, caps, floors, collars and other interest hedge agreements, in each case whether such Person is liable contingently
or otherwise, as obligor, guarantor or otherwise, or in respect of which obligations such Person otherwise assures a creditor against
loss.

 

“Indemnified
Parties” shall mean (a) Lender, (b) any successor owner or holder of the Loan or participations in the Loan, (c) any
Servicer or prior Servicer of the Loan, (d) any Investor or any prior Investor in any Securities, (e) any trustees, custodians
or other fiduciaries who hold or who have held a full or partial interest in the Loan for the benefit of any Investor or other
third party, (f) any receiver or other fiduciary appointed in a foreclosure or other Creditors Rights Laws proceeding, (g) any
officers, directors, shareholders, partners, members, employees, agents, servants, representatives, contractors, subcontractors,
Affiliates or subsidiaries of any and all of the foregoing, and (h) the heirs, legal representatives, successors and assigns of
any and all of the foregoing (including, without limitation, any successors by merger, consolidation or acquisition of all or a
substantial portion of the Indemnified Parties’ assets and business), in all cases whether during the term of the Loan or
as part of or following a foreclosure of the Loan.

 

“Independent
Director” shall have the meaning set forth in Section 5.2 hereof.

 

“Insurance
Account” shall have the meaning set forth in Section 8.6 hereof.

 

“Insurance
Payment Date” shall mean, with respect to any applicable Policies, the date occurring 30 days prior to the date the applicable
Insurance Premiums associated therewith are due and payable.

 

“Insurance
Premiums” shall have the meaning set forth in Section 7.1 hereof.

 

“Interest
Accrual Period” shall mean the period beginning on (and including) the sixth (6th) day of each calendar month during
the term of the Loan and ending on (and including) the fifth (5th) day of the next succeeding calendar month.

 

“Interest
Bearing Accounts” shall mean the following Reserve Accounts: (a) the Immediate Repair Account, (b) the Debt Service Account,
(e) the Residential Replacement Reserve Account, (f) the Office Replacement Reserve Account, (g) the Leasing Reserve Account, (h)
the Excess Cash Flow Account, (i) Required Violation Removal Reserve Account and (j) the Operating Expense Account.

 

     9

    

    

 

“Interest
Rate” shall mean a rate per annum equal to four percent (4%).

 

“Interest
Shortfall” shall have the meaning set forth in Section 2.7 hereof.

 

“Investor”
shall mean any investor or potential investor in the Loan (or any portion thereof or interest therein) in connection with any Secondary
Market Transaction.

 

“IRS Code”
shall mean the Internal Revenue Code of 1986, as amended from time to time or any successor statute.

 

“Land”
shall have the meaning set forth in the Security Instrument.

 

“Lease”
shall have the meaning set forth in the Security Instrument.

 

“Leasing Reserve
Account” shall have the meaning set forth in Section 8.3 hereof.

 

“Leasing Reserve
Funds” shall have the meaning set forth in Section 8.3 hereof.

 

“Leasing Reserve
Monthly Deposit” shall have the meaning set forth in Section 8.3 hereof.

 

“Leasing Reserve
Threshold” shall have the meaning set forth in Section 8.3(a) hereof.

 

“Legal Requirements”
shall mean all federal, state, county, municipal and other governmental statutes, laws, rules, orders, regulations, ordinances,
judgments, decrees and injunctions of Governmental Authorities affecting Borrower or the Property or any part thereof, or the construction,
use, alteration or operation thereof, or any part thereof, whether now or hereafter enacted and in force, including, without limitation,
the Americans with Disabilities Act of 1990, and all Permits, authorizations and regulations relating thereto, and all covenants,
agreements, restrictions and encumbrances contained in any instruments, either of record or known to Borrower, at any time in force
affecting Borrower or the Property or any part thereof, including, without limitation, any which may (i) require repairs, modifications
or alterations in or to the Property or any part thereof, or (ii) in any way limit the use and enjoyment thereof.

 

“Letter of
Credit” shall mean an irrevocable, auto-renewing, unconditional, transferable, clean sight draft standby letter of credit
having an initial term of not less than one (1) year and with automatic renewals for one (1) year periods, for which Borrower shall
have no reimbursement obligation and which reimbursement obligation is not secured by the Property or any other property pledged
to secure the Note, in favor of Lender and entitling Lender to draw thereon in New York, New York, based solely on a statement
that Lender has the right to draw thereon executed by an officer or authorized signatory of Lender. A Letter of Credit must be
issued by an Approved Bank. Borrower’s delivery of any Letter of Credit hereunder shall, be conditioned upon Lender’s
receipt of a New Non-Consolidation Opinion relating to such Letter of Credit if reasonably requested by Lender or required by a
Rating Agency in connection with a Rating Agency Confirmation.

 

     10

    

    

 

“Liabilities”
shall have the meaning set forth in Section 11.2 hereof.

 

“Loan”
shall mean the loan made by Lender to Borrower pursuant to this Agreement.

 

“Loan Bifurcation”
shall have the meaning set forth in Section 11.1 hereof.

 

“Loan Documents”
shall mean, collectively, this Agreement, the Note, the Security Instrument, the Environmental Indemnity, the Assignment of Management
Agreement (if any), the Guaranty and all other documents executed and/or delivered in connection with the Loan, as each of the
same may be amended, restated, replaced, extended, renewed, supplemented or otherwise modified from time to time.

 

“Losses”
shall mean any and all claims, suits, liabilities (including, without limitation, strict liabilities), actions, proceedings, obligations,
debts, damages, losses, costs, expenses, fines, penalties, charges, fees, judgments, awards, amounts paid in settlement of whatever
kind or nature (including but not limited to legal fees and other costs of defense).

 

“Major Lease”
shall mean as to the Property (i) any Lease which, individually or when aggregated with all other leases at the Property with the
same Tenant or its Affiliate, demises 30,000 square feet or more of the Property’s gross leasable area, (ii) any Lease which
contains any option, offer, right of first refusal or other similar entitlement to acquire or encumber all or any portion of the
Property, (iii) each Specified Tenant Lease, and (iv) any instrument guaranteeing or providing credit support for any Lease meeting
the requirements of (i), (ii) and/or (iii) above.

 

“Management
Agreement” shall mean any management agreement entered into by and between Borrower and Manager, pursuant to which a
Manager is to provide management and other services with respect to the Property, as the same may be amended, restated, replaced,
extended, renewed, supplemented or otherwise modified from time to time.

 

“Manager”
shall mean such entity selected as the manager of the Property in accordance with the terms of this Agreement or the other Loan
Documents.

 

“Material
Adverse Effect” shall mean a material adverse effect on (i) the Property, (ii) the business, profits, prospects, management,
operations or condition (financial or otherwise) of Borrower, Guarantor, Sponsor or the Property, (iii) the enforceability, validity,
perfection or priority of the lien of the Security Instrument or the other Loan Documents, or (iv) the ability of Borrower and/or
Guarantor to perform its obligations under the Security Instrument or the other Loan Documents.

 

“Maturity
Date” shall mean May 6, 2023 or such other date on which the final payment of the principal amount of the Loan becomes
due and payable as herein provided, whether at such stated maturity date, by declaration of acceleration, or otherwise.

 

“Maximum Legal
Rate” shall mean the maximum non-usurious interest rate, if any, that at any time or from time to time may be contracted
for, taken, reserved, charged or received on the indebtedness evidenced by the Note and as provided for herein or the other Loan
Documents, under the laws of such state or states whose laws are held by any court of competent jurisdiction to govern the interest
rate provisions of the Loan.

 

     11

    

    

 

“Member”
is defined in Section 5.1 hereof.

 

“Mezzanine
Borrower” shall have the meaning set forth in Section 11.6 hereof.

 

“Mezzanine
Option” shall have the meaning set forth in Section 11.6 hereof.

 

“Minimum Disbursement
Amount” shall mean Fifteen Thousand and No/100 Dollars ($15,000).

 

“Monthly Debt
Service Payment Amount” shall mean for the Monthly Payment Date occurring in June, 2013 and for each Monthly Payment
Date occurring thereafter, a constant monthly payment of $179,030.74.

 

“Monthly Insurance
Deposit” shall have the meaning set forth in Section 8.6 hereof.

 

“Monthly Payment
Date” shall mean the sixth (6th) day of every calendar month occurring during the term of the Loan.

 

“Monthly Tax
Deposit” shall have the meaning set forth in Section 8.6 hereof.

 

“Moody’s”
shall mean Moody’s Investor Service, Inc.

 

“Net Proceeds”
shall mean: (i) the net amount of all insurance proceeds payable as a result of a Casualty to the Property, after deduction of
reasonable costs and expenses (including, but not limited to, reasonable attorneys’ fees), if any, in collecting such insurance
proceeds, or (ii) the net amount of the Award, after deduction of reasonable costs and expenses (including, but not limited to,
reasonable attorneys’ fees), if any, in collecting such Award (“Condemnation Net Proceeds”).

 

“Net Proceeds
Deficiency” shall have the meaning set forth in Section 7.4 hereof.

 

“New Manager”
shall mean any Person replacing or becoming the assignee of the then current Manager, in each case, in accordance with the applicable
terms and conditions hereof.

 

“New Non-Consolidation
Opinion” shall mean a substantive non-consolidation opinion provided by outside counsel acceptable to Lender and the
Rating Agencies and otherwise in form and substance acceptable to Lender and the Rating Agencies.

 

“Non-Conforming
Policy” shall have the meaning set forth in Section 7.1 hereof.

 

“Non-Consolidation
Opinion” shall mean that certain substantive non-consolidation opinion delivered to Lender by Backenroth Frankel &
Krinsky, LLP, in connection with the closing of the Loan.

 

     12

    

    

 

“Note”
shall mean that certain Consolidated, Amended and Restated Promissory Note of even date herewith in the principal amount of $37,500,000,
made by Borrower in favor of Lender, as the same may be amended, restated, replaced, extended, renewed, supplemented, severed,
split, or otherwise modified from time to time.

 

“NYC EPA Lease”
shall mean that certain Agreement of Lease dated July 30, 1999, between Livingston Acquisition, LLC, and the City of New York,
as assigned by that certain Assignment and Assumption of Space Leases dated May 9, 2002 by and between Livingston Acquisition,
LLC, as assignor, and Berkshire Equity LLC, as assignee, and as further assigned by that certain Assignment and Assumption of Leases
dated as of the date hereof between Berkshire Equity LLC, as assignor and Borrower, as assignee (including, without limitation,
any guaranty or similar instrument furnished thereunder) as the same may have been or may hereafter be amended, restated, extended,
renewed, replaced and/or otherwise modified.

 

“NYC HRA Lease”
shall mean that certain Agreement of Lease dated January 1, 1997, between Livingston Acquisition LLC, as successor in interest
to NPMM Realty Inc., and the City of New York, as assigned by that certain Assignment and Assumption of Space Leases dated May
9, 2002 by and between Livingston Acquisition, LLC, as assignor, and Berkshire Equity LLC, as assignee, and as further assigned
by that certain Assignment and Assumption of Leases dated as of the date hereof between Berkshire Equity LLC, as assignor and Borrower,
as assignee (including, without limitation, any guaranty or similar instrument furnished thereunder), as the same may have been
or may hereafter be amended, restated, extended, renewed, replaced and/or otherwise modified.

 

“OFAC”
shall have the meaning set forth in Section 3.30 hereof.

 

“Officer’s
Certificate” shall mean a certificate delivered to Lender by Borrower which is signed by Responsible Officer of Borrower.

 

“Office Replacements”
shall have the meaning set forth in Section 8.2 hereof.

 

“Office Replacement
Reserve Account” shall have the meaning set forth in Section 8.2 hereof.

 

“Office Replacement
Reserve Monthly Deposit” shall have the meaning set forth in Section 8.2 hereof.

 

“Op Ex Monthly
Deposit” shall have the meaning set forth in Section 8.4 hereof.

 

“Operating
Expense Account” shall have the meaning set forth in Section 8.4 hereof.

 

“Operating
Expense Funds” shall have the meaning set forth in Section 8.4 hereof.

 

     13

    

    

 

“Operating
Expenses” shall mean the total of all expenditures, computed in accordance with the Approved Accounting Method, of whatever
kind relating to the operation, maintenance and management of the Property that are incurred on a regular monthly or other periodic
basis, including without limitation, (and without duplication) (a) utilities, ordinary repairs and maintenance, insurance, license
fees, property taxes and assessments, advertising expenses, payroll and related taxes, computer processing charges, management
fees (equal to the greater of (x) four percent (4%) of the sum of (A) Operating Income for the trailing twelve (12) month period
plus (B) Gross Rents or (y) actual management fees payable under the Management Agreement, if any), operational equipment or other
lease payments as approved by Lender, but specifically excluding (i) depreciation, (ii) Debt Service, (iii) non-recurring or extraordinary
expenses, and (iv) deposits into the Reserve Funds; (b) normalized capital expenditures equal to (i) $6,750 per annum for residential
units and (ii) $53,172.80 for office and common area space per annum; and (c) normalized tenant improvement and leasing commission
expenditures equal to $265,864 per annum.

 

“Operating
Income” shall mean all income, computed in accordance with the Approved Accounting Method, derived from the ownership
and operation of the Property from whatever source, including, but not limited to common area maintenance, real estate tax recoveries,
utility recoveries, other miscellaneous expense recoveries, percentage rent, rent concessions or credits, if any, and other miscellaneous
income, but excluding Gross Rents, sales, use and occupancy or other taxes on receipts required to be accounted for by Borrower
to any Governmental Authority, refunds and uncollectible accounts, sales of furniture, fixtures and equipment, interest income
from any source other than the escrow accounts and/or reserve accounts required pursuant to this Agreement or the other Loan Documents,
insurance proceeds (other than business interruption or other loss of income insurance), Awards, unforfeited security deposits,
utility and other similar deposits, income from Tenants not paying rent, income from Tenants in bankruptcy, non- recurring or extraordinary
income, including, without limitation lease termination payments, and any disbursements to Borrower from the Reserve Funds. Operating
Income shall not be diminished as a result of the Security Instrument or the creation of any intervening estate or interest in
the Property or any part thereof.

 

“Other Charges”
shall mean all maintenance charges, impositions other than Taxes, and any other charges, vault charges and license fees for the
use of vaults, chutes and similar areas adjoining the Property, now or hereafter levied or assessed or imposed against the Property
or any part thereof.

 

“Patriot Act”
shall have the meaning set forth in Section 3.30 hereof.

 

“PCO”
shall have the meaning set forth in Section 4.22 hereof.

 

“PCO Issuance
Requirements” shall mean, collectively, the work that must be completed and the other requirements that must be satisfied
in order for a PCO to be obtained for the Property.

 

“Permits”
shall mean all necessary certificates, licenses, permits, franchises, certificates of occupancy, consents, and other approvals
(governmental and otherwise) required under applicable Legal Requirements for the operation of the Property and the conduct of
Borrower’s business (including, without limitation, all required zoning, building code, land use, environmental and other
similar permits or approvals).

 

“Permitted
Encumbrances” shall mean collectively, (a) the lien and security interests created by this Agreement and the other Loan
Documents, (b) all liens, encumbrances and other matters disclosed in the Title Insurance Policy, (c) liens, if any, for Taxes
imposed by any Governmental Authority not yet due or delinquent and (d) such other title and survey exceptions as Lender has approved
or may approve in writing in Lender’s sole discretion.

 

     14

    

    

 

“Permitted
Equipment Leases” shall mean equipment leases or other similar instruments entered into with respect to the Personal
Property; provided, that, in each case, such equipment leases or similar instruments (i) are entered into on commercially reasonable
terms and conditions in the ordinary course of Borrower’s business and (ii) relate to Personal Property which is (A) used
in connection with the operation and maintenance of the Property in the ordinary course of Borrower’s business and (B) readily
replaceable without material interference or interruption to the operation of the Property.

 

“Permitted
Investments” shall mean any one or more of the following obligations or securities acquired at a purchase price of not
greater than par, including those issued by Servicer, the trustee under any Securitization or any of their respective Affiliates,
payable on demand or having a maturity date not later than the Business Day immediately prior to the first Monthly Payment Date
following the date of acquiring such investment and meeting one of the appropriate standards set forth below:

 

(i)          obligations
of, or obligations fully guaranteed as to payment of principal and interest by, the United States or any agency or instrumentality
thereof provided such obligations are backed by the full faith and credit of the United States of America including, without limitation,
obligations of: the U.S. Treasury (all direct or fully guaranteed obligations), the Farmers Home Administration (certificates of
beneficial ownership), the General Services Administration (participation certificates), the U.S. Maritime Administration (guaranteed
Title XI financing), the Small Business Administration (guaranteed participation certificates and guaranteed pool certificates),
the U.S. Department of Housing and Urban Development (local authority bonds) and the Washington Metropolitan Area Transit Authority
(guaranteed transit bonds); provided, however, that the investments described in this clause must (A) have a predetermined fixed
dollar of principal due at maturity that cannot vary or change, (B) if rated by S&P, must not have an “r” highlighter
affixed to their rating, (C) if such investments have a variable rate of interest, such interest rate must be tied to a single
interest rate index plus a fixed spread (if any) and must move proportionately with that index, and (D) such investments must not
be subject to liquidation prior to their maturity;

 

(ii)         Federal
Housing Administration debentures;

 

(iii)        obligations
of the following United States government sponsored agencies: Federal Home Loan Mortgage Corp. (debt obligations), the Farm Credit
System (consolidated systemwide bonds and notes), the Federal Home Loan Banks (consolidated debt obligations), the Federal National
Mortgage Association (debt obligations), the Financing Corp. (debt obligations), and the Resolution Funding Corp. (debt obligations);
provided, however, that the investments described in this clause must (A) have a predetermined fixed dollar of principal due at
maturity that cannot vary or change, (B) if rated by S&P, must not have an “r” highlighter affixed to their rating,
(C) if such investments have a variable rate of interest, such interest rate must be tied to a single interest rate index plus
a fixed spread (if any) and must move proportionately with that index, and (D) such investments must not be subject to liquidation
prior to their maturity;

 

     15

    

    

 

(iv)        federal
funds, unsecured certificates of deposit, time deposits, bankers’ acceptances and repurchase agreements with maturities of
not more than 365 days of any bank, the short term obligations of which at all times are rated in the highest short term rating
category by each Rating Agency (or, if not rated by all Rating Agencies, rated by at least one Rating Agency in the highest short
term rating category and otherwise acceptable to each other Rating Agency, as confirmed in writing that such investment would not,
in and of itself, result in a downgrade, qualification or withdrawal of the initial, or, if higher, then current ratings assigned
to the Securities); provided, however, that the investments described in this clause must (A) have a predetermined fixed dollar
of principal due at maturity that cannot vary or change, (B) if rated by S&P, must not have an “r’,’ highlighter
affixed to their rating, (C) if such investments have a variable rate of interest, such interest rate must be tied to a single
interest rate index plus a fixed spread (if any) and must move proportionately with that index, and (D) such investments must not
be subject to liquidation prior to their maturity;

 

(v)         fully
Federal Deposit Insurance Corporation-insured demand and time deposits in, or certificates of deposit of, or bankers’ acceptances
issued by, any bank or trust company, savings and loan association or savings bank, the short term obligations of which at all
times are rated in the highest short term rating category by each Rating Agency (or, if not rated by all Rating Agencies, rated
by at least one Rating Agency in the highest short term rating category and otherwise acceptable to each other Rating Agency, as
confirmed in writing that such investment would not, in and of itself, result in a downgrade, qualification or withdrawal of the
initial, or, if higher, then current ratings assigned to the Securities); provided, however, that the investments described in
this clause must (A) have a predetermined fixed dollar of principal due at maturity that cannot vary or change, (B) if rated by
S&P, must not have an “r” highlighter affixed to their rating, (C) if such investments have a variable rate of
interest, such interest rate must be tied to a single interest rate index plus a fixed spread (if any) and must move proportionately
with that index, and (D) such investments must not be subject to liquidation prior to their maturity;

 

(vi)        debt
obligations with maturities of not more than 365 days and at all times rated by each Rating Agency (or, if not rated by all Rating
Agencies, rated by at least one Rating Agency and otherwise acceptable to each other Rating Agency, as confirmed in writing that
such investment would not, in and of itself, result in a downgrade, qualification or withdrawal of the initial, or, if higher,
then current ratings assigned to the Securities) in its highest long-term unsecured rating category; provided, however, that the
investments described in this clause must (A) have a predetermined fixed dollar of principal due at maturity that cannot vary or
change, (B) if rated by S&P, must not have an “r” highlighter affixed to their rating, (C) if such investments
have a variable rate of interest, such interest rate must be tied to a single interest rate index plus a fixed spread (if any)
and must move proportionately with that index, and (D) such investments must not be subject to liquidation prior to their maturity;

 

     16

    

    

 

(vii)       commercial
paper (including both non-interest-bearing discount obligations and interest-bearing obligations payable on demand or on a specified
date not more than one year after the date of issuance thereof) with maturities of not more than 365 days and that at all times
is rated by each Rating Agency (or, if not rated by all Rating Agencies, rated by at least one Rating Agency and otherwise acceptable
to each other Rating Agency, as confirmed in writing that such investment would not, in and of itself, result in a downgrade, qualification
or withdrawal of the initial, or, if higher, then current ratings assigned to the Securities) in its highest short-term unsecured
debt rating; provided, however, that the investments described in this clause must (A) have a predetermined fixed dollar of principal
due at maturity that cannot vary or change, (B) if rated by S&P, must not have an “r” highlighter affixed to their
rating, (C) if such investments have a variable rate of interest, such interest rate must be tied to a single interest rate index
plus a fixed spread (if any) and must move proportionately with that index, and (D) such investments must not be subject to liquidation
prior to their maturity;

 

(viii)      units
of taxable money market funds, which funds are regulated investment companies, seek to maintain a constant net asset value per
share and invest solely in obligations backed by the full faith and credit of the United States, which funds have the highest rating
available from each Rating Agency (or, if not rated by all Rating Agencies, rated by at least one Rating Agency and otherwise acceptable
to each other Rating Agency, as confirmed in writing that such investment would not, in and of itself, result in a downgrade, qualification
or withdrawal of the initial, or, if higher, then current ratings assigned to the Securities) for money market funds; and

 

(ix)         any
other security, obligation or investment which has been approved as a Permitted Investment in writing by (a) Lender and (b) each
Rating Agency, as evidenced by a written confirmation that the designation of such security, obligation or investment as a Permitted
Investment will not, in and of itself, result in a downgrade, qualification or withdrawal of the initial, or, if higher, then current
ratings assigned to the Securities by such Rating Agency;

 

provided, however,
that no obligation or security shall be a Permitted Investment if (A) such obligation or security evidences a right to receive
only interest payments or (B) the right to receive principal and interest payments on such obligation or security are derived from
an underlying investment that provides a yield to maturity in excess of 120% of the yield to maturity at par of such underlying
investment.

 

“Person”
shall mean any individual, corporation, partnership, joint venture, limited liability company, estate, trust, unincorporated
association, any federal, state, county or municipal government or any bureau, department or agency thereof and any fiduciary acting
in such capacity on behalf of any of the foregoing.

 

“Personal
Property” shall have the meaning set forth in the granting clause of the Security Instrument.

 

“Policies”
shall have the meaning specified in Section 7.1 hereof.

 

     17

    

    

 

“Prepayment
Release Date” shall mean the Monthly Payment Date occurring two (2) months prior to the Maturity Date.

 

“Prohibited
Transfer” shall have the meaning set forth in Section 6.2 hereof.

 

“Property”
shall have the meaning set forth in the Security Instrument.

 

“Provided
Information” shall mean any information provided by or on behalf of any Borrower Party in connection with the Loan, the
Property, such Borrower Party and/or any related matter or Person.

 

“Prudent Lender
Standard” shall, with respect to any matter, be deemed to have been met if the matter in question (i) prior to a Securitization,
is reasonably acceptable to Lender and (ii) after a Securitization, (A) if permitted by REMIC Requirements applicable to such matter,
would be reasonably acceptable to Lender or (B) if the Lender discretion in the foregoing subsection (A) is not permitted under
such applicable REMIC Requirements, would be acceptable to a prudent lender of securitized commercial mortgage loans.

 

“Qualified
Insurer” shall have the meaning set forth in Section 7.1 hereof.

 

“Qualified
Management Agreement” shall mean a management agreement with a Qualified Manager with respect to the Property which is
approved by Lender in writing (which such approval may be conditioned upon Lender’s receipt of a Rating Agency Confirmation
with respect to such management agreement).

 

“Qualified
Manager” shall mean a Person approved by Lender in writing (which such approval may be conditioned upon Lender’s
receipt of a Rating Agency Confirmation with respect to such Person).

 

“Rating Agencies”
shall mean each of S&P, Moody’s, Fitch and any other nationally- recognized statistical rating agency designated by Lender
(and any successor to any of the foregoing) in connection with and/or in anticipation of any Secondary Market Transaction.

 

“Rating Agency
Condition” shall be deemed to exist if (i) any Rating Agency fails to respond to any request for a Rating Agency Confirmation
with respect to any applicable matter or otherwise elects (orally or in writing) not to consider any applicable matter or (ii)
Lender (or its Servicer) is not required to and/or elects not to obtain (or cause to be obtained) a Rating Agency Confirmation
with respect to any applicable matter, in each case, pursuant to and in compliance with any pooling and servicing agreement(s)
or similar agreement(s), in each case, relating to the servicing and/or administration of the Loan.

 

“Rating Agency
Confirmation” shall mean (i) prior to a Securitization or if the Rating Agency Condition exists, that Lender has (in
consultation with the Rating Agencies (if required by Lender)) approved the matter in question in writing based upon Lender’s
good faith determination of applicable Rating Agency standards and criteria and (ii) from and after a Securitization (to the extent
the Rating Agency Condition does not exist), a written affirmation from each of the Rating Agencies (obtained at Borrower’s
sole cost and expense) that the credit rating of the Securities by such Rating Agency immediately prior to the occurrence of the
event with respect to which such Rating Agency Confirmation is sought will not be qualified, downgraded or withdrawn as a result
of the occurrence of such event, which affirmation may be granted or withheld in such Rating Agency’s sole and absolute discretion.

 

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“Registrar”
shall have the meaning set forth in Section 11.7 hereof.

 

“Regulation
AB” shall mean Regulation AB under the Securities Act and the Exchange Act, as such Regulation may be amended from time
to time.

 

“Release Date”
shall mean the earlier to occur of (i) the fourth anniversary of the Closing Date and (ii) the date that is two (2) years from
the “startup day” (within the meaning of Section 860G(a)(9) of the IRS Code) of the REMIC Trust established in connection
with the last Securitization involving any portion of or interest in the Loan.

 

“REMIC Opinion”
shall mean, as to any matter, an opinion as to the compliance of such matter with applicable REMIC Requirements (which such opinion
shall be, in form and substance and from a provider, in each case, reasonably acceptable to Lender and acceptable to the Rating
Agencies).

 

“REMIC Requirements”
shall mean any applicable legal requirements relating to any REMIC Trust (including, without limitation, those relating to the
continued treatment of the Loan (or the applicable portion thereof and/or interest therein) as a “qualified mortgage”
held by such REMIC Trust, the continued qualification of such REMIC Trust as such under the IRS Code, the non-imposition of any
tax on such REMIC Trust under the IRS Code (including, without limitation, taxes on “prohibited transactions and “contributions”)
and any other constraints, rules and/or other regulations and/or requirements relating to the servicing, modification and/or other
similar matters with respect to the Loan (or any portion thereof and/or interest therein) that may now or hereafter exist under
applicable legal requirements (including, without limitation under the IRS Code)).

 

“REMIC Trust”
shall mean any “real estate mortgage investment conduit” within the meaning of Section 860D of the IRS Code that holds
any interest in all or any portion of the Loan.

 

“Rent Roll”
shall have the meaning set forth in Section 3.18 hereof.

 

“Rent Loss
Proceeds” shall have the meaning set forth in Section 7.1 hereof.

 

“Rents”
shall have the meaning set forth in the Security Instrument.

 

“Replacement
Reserve Account” shall have the meaning set forth in Section 8.2 hereof.

 

“Replacement
Reserve Funds” shall have the meaning set forth in Section 8.2 hereof.

 

“Replacement
Reserve Monthly Deposit” shall have the meaning set forth in Section 8.2 hereof.

 

     19

    

    

 

“Replacements”
for any period shall mean replacements and/or alterations to the Property; provided, that, the same are (i) required to be capitalized
according to the Approved Accounting Method and (ii) reasonably approved by Lender.

 

“Reporting
Failure” shall have the meaning set forth in Section 4.12 hereof.

 

“Required
Financial Item” shall have the meaning set forth in Section 4.12 hereof.

 

“Required
Rating” means (i) a rating of not less than “A-1” (or its equivalent) from each of the Rating Agencies if
the term of such Letter of Credit is no longer than three (3) months or if the term of such Letter of Credit is in excess of three
(3) months, a rating of not less than “AA-” (or its equivalent) from each of the Rating Agencies or (ii) such other
rating with respect to which Lender shall have received a Rating Agency Confirmation.

 

“Required
Violation Removal Reserve Account” shall have the meaning set forth in Section 8.9 hereof.

 

“Required
Violation Removal Work” shall have the meaning set forth in Section 4.2(a) hereof.

 

“Reserve Accounts”
shall mean the Tax Account, the Insurance Account, the Replacement Reserve Account, the Immediate Repair Account, the Leasing Reserve
Account, the Excess Cash Flow Account, the Operating Expense Account and any other escrow account established by this Agreement
or the other Loan Documents (but specifically excluding the Cash Management Account, the Restricted Account and the Debt Service
Account).

 

“Reserve Funds”
shall mean the Tax and Insurance Funds, the Replacement Reserve Funds, the Immediate Repair Funds, the Leasing Reserve Funds, the
Excess Cash Flow Funds, the Operating Expense Funds, the funds on deposit in the Required Violation Removal Reserve Account and
any other escrow funds established by this Agreement or the other Loan Documents.

 

“Residential
Replacements” shall have the meaning set forth in Section 8.2 hereof.

 

“Residential
Replacement Reserve Account” shall have the meaning set forth in Section 8.2 hereof.

 

“Residential
Replacement Monthly Deposit” shall have the meaning set forth in Section 8.2 hereof.

 

“Responsible
Officer” means with respect to a Person, the chairman of the board, president, chief operating officer, chief financial
officer, treasurer or vice president of such Person or such other similar officer of such Person reasonably acceptable to Lender.

 

“Restoration”
shall mean, following the occurrence of a Casualty or a Condemnation which is of a type necessitating the repair of the Property
(or any portion thereof), the completion of the repair and restoration of the Property (or applicable portion thereof) as nearly
as possible to the condition the Property (or applicable portion thereof) was in immediately prior to such Casualty or Condemnation,
with such alterations as may be reasonably approved by Lender.

 

     20

    

    

 

“Restoration
Retainage” shall have the meaning set forth in Section 7.4 hereof.

 

“Restoration
Threshold” shall mean an amount equal to 5% of the outstanding principal amount of the Loan.

 

“Restricted
Account” shall have the meaning set forth in Section 9.1 hereof.

 

“Restricted
Account Agreement” shall mean that certain Restricted Account Agreement by and among Borrower, Lender and Wells Fargo
Bank, National Association, dated as of the date hereof.

 

“Restricted
Party” shall have the meaning set forth in Section 6.1 hereof.

 

“Sale or Pledge”
shall have the meaning set forth in Section 6.1 hereof.

 

“Scheduled
Defeasance Payments” shall mean scheduled payments of interest and principal hereunder for all Monthly Payment Dates
occurring after the Total Defeasance Date and up to and including the Prepayment Release Date (assuming the Note is prepaid in
full as of such Prepayment Release Date and including the outstanding principal balance and accrued interest on the Loan as of
such Prepayment Release Date), and all payments required after the Total Defeasance Date, if any, under the Loan Documents for
servicing fees, rating surveillance charges (to the extent applicable) and other similar charges.

 

“Secondary
Market Transaction” shall have the meaning set forth in Section 11.1 hereof.

 

“Securities”
shall have the meaning set forth in Section 11.1 hereof.

 

“Securities
Act” shall mean the Securities Act of 1933, as amended.

 

“Securitization”
shall have the meaning set forth in Section 11.1 hereof.

 

“Security
Agreement” shall mean a pledge and security agreement in form and substance satisfying the Prudent Lender Standard pursuant
to which Borrower grants Lender a perfected, first priority security interest in the Defeasance Collateral Account and the Total
Defeasance Collateral.

 

“Security
Instrument” shall mean that certain first priority Consolidated, Amended and Restated Mortgage and Security Agreement
dated as of the date hereof, executed and delivered by Borrower as security for the Loan and encumbering the Property, as the same
may be amended, restated, replaced, supplemented or otherwise modified from time to time.

 

“Servicer”
shall have the meaning set forth in Section 11.4 hereof.

 

“Severed Loan
Documents” shall have the meaning set forth in Article 10.

 

     21

    

    

 

“Significant
Obligor” shall have the meaning set forth in Item 1101(k) of Regulation AB under the Securities Act.

 

“Single Purpose
Entity” shall mean an entity whose structure and organizational and governing documents are otherwise in form and substance
acceptable to the Rating Agencies and satisfying the Prudent Lender Standard.

 

“Special Member”
is defined in Section 5.1 hereof.

 

“Specified
Tenant” shall mean individually and collectively, as the context may require, (i) the City of New York under the NYC
HRA Lease, (ii) the City of New York under the NYC EPA Lease, and (iii) any other lessee(s) of the Specified Tenant Space (or any
portion thereof) and any guarantor(s) of the applicable related Specified Tenant Lease(s).

 

“Specified
Tenant Cure Conditions” shall mean each of the following, as applicable (i) the applicable Specified Tenant has cured
all defaults under the applicable Specified Tenant Lease, (ii) [intentionally omitted], (iii) the applicable Specified Tenant has
revoked or rescinded all termination or cancellation notices with respect to the applicable Specified Tenant Lease and has re-affirmed
the applicable Specified Tenant Lease as being in full force and effect, (iv) in the event the Specified Tenant Trigger Period
is due to the City of New York’s failure to extend or renew the NYC HRA Lease prior to its scheduled expiration date in 2016,
in accordance with clause (vi) of the definition of “Specified Tenant Trigger Period” (the “HRA Trigger Event”),
Borrower has deposited with Lender cash or a Letter of Credit in the amount of the HRA Sweep Cap or the HRA Excess Cash Flow Threshold
has been satisfied to be held as additional security for Borrower’s obligations hereunder, (v) in the event the Specified
Tenant Trigger Period is due to the applicable Specified Tenant’s failure to extend or renew the applicable Specified Tenant
Lease in accordance with clause (vi) of the definition of “Specified Tenant Trigger Period” (other than a HRA Trigger
Event), the applicable Specified Tenant has renewed or extended the applicable Specified Tenant Lease in accordance with the terms
hereof and thereof for the Specified Tenant Renewal Term, (vii) with respect to any applicable bankruptcy or insolvency proceedings
involving the applicable Specified Tenant and/or the applicable Specified Tenant Lease, the applicable Specified Tenant is no longer
insolvent or subject to any bankruptcy or insolvency proceedings and has affirmed the applicable Specified Tenant Lease pursuant
to final, non-appealable order of a court of competent jurisdiction, (viii) the applicable Specified Tenant is paying full, unabated
rent under the applicable Specified Tenant Lease.

 

“Specified
Tenant Lease” shall mean each of (i) the NYC HRA Lease, and (ii) the NYC EPA Lease.

 

“Specified
Tenant Renewal Term” shall mean a renewal term of at least five (5) years under the applicable Specified Tenant Lease.

 

“Specified
Tenant Space” shall mean that portion of the Property demised as of the date hereof to the initial Specified Tenant pursuant
to the initial Specified Tenant Lease. References herein to “applicable portions” of the Specified Tenant Space (or
words of similar import) shall be deemed to refer to the portion of the Specified Tenant Space demised pursuant to the applicable
Specified Tenant Lease(s) entered into after the date hereof in accordance with the applicable terms and conditions hereof.

 

     22

    

    

 

“Specified
Tenant Trigger Period” shall mean a period (A) commencing upon the first to occur of (i) Specified Tenant being
in monetary default under the applicable Specified Tenant Lease beyond applicable notice and cure periods, (ii) [intentionally
omitted], (iii) Specified Tenant giving notice that it is terminating its Lease for all or any portion of the Specified Tenant
Space, (iv) any termination or cancellation of any Specified Tenant Lease (including, without limitation, rejection in any bankruptcy
or similar insolvency proceeding) and/or any Specified Tenant Lease failing to otherwise be in full force and effect, (v) any bankruptcy
or similar insolvency of Specified Tenant, (vi) Specified Tenant failing to provide written notice to Borrower of its election
to extend or renew the applicable Specified Tenant Lease for the Specified Tenant Renewal Term upon the earlier to occur of (x)
one (1) year prior to the expiration of the current term or any renewal term under the Specified Tenant Lease, or (y) the commencement
of the renewal notice period required under the Lease, and (B) expiring upon the first to occur of Lender’s receipt of evidence
reasonably acceptable to Lender (which such evidence may include, without limitation, a duly executed estoppel certificate from
the applicable Specified Tenant in form and substance acceptable to Lender) of (1) the satisfaction of the Specified Tenant Cure
Conditions, or (2) Borrower leasing the entire Specified Tenant Space (or applicable portion thereof) in accordance with the applicable
terms and conditions hereof, the applicable Tenant under such Lease being in actual, physical occupancy of, and open to the public
for business in, the space demised under its Lease and paying the full amount of the rent due under its Lease.

 

“SPE Component
Entity” shall have the meaning set forth in Section 5.1 hereof.

 

“Sponsor”
shall mean Berkshire Equity LLC.

 

“S&P”
shall mean Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc.

 

“State”
shall mean the state in which the Property or any part thereof is located.

 

“Successor
Borrower” shall have the meaning set forth in Section 2.8 hereof.

 

“Survey”
shall mean that certain survey of the Property certified and delivered to Lender in connection with the closing of the Loan.

 

“Tax Account”
shall have the meaning set forth in Section 8.6 hereof.

 

“Tax and Insurance
Funds” shall have the meaning set forth in Section 8.6 hereof.

 

“Taxes”
shall mean all taxes, assessments, water rates, sewer rents, and other governmental impositions, including, without limitation,
vault charges and license fees for the use of vaults, chutes and similar areas adjoining the Land, now or hereafter levied or assessed
or imposed against the Property or any part thereof.

 

     23

    

    

 

“Tax Payment
Date” shall mean, with respect to any applicable Taxes, the date occurring 30 days prior to the date the same
are due and payable.

 

“TCO”
shall have the meaning set forth in Section 3.11(a) hereof.

 

“Tenant”
shall mean any Person leasing, subleasing or otherwise occupying any portion of the Property under a Lease or other occupancy
agreement.

 

“Tenant Direction
Notice” shall have the meaning set forth in Section 9.2 hereof.

 

“Title Insurance
Policy” shall mean that certain ALTA mortgagee title insurance policy issued with respect to the Property and
insuring the lien of the Security Instrument.

 

“Total Defeasance
Collateral” shall mean Government Securities, which provide payments (i) on or prior to, but as close as possible
to, the Business Day immediately preceding all Monthly Payment Dates and other scheduled payment dates, if any, hereunder after
the Total Defeasance Date and up to and including the Prepayment Release Date (assuming the Note is required to be prepaid in full
as of such Prepayment Release Date), and (ii) in amounts equal to or greater than the Scheduled Defeasance Payments relating to
such Monthly Payment Dates and other scheduled payment dates.

 

“Total Defeasance
Date” shall have the meaning set forth in Section 2.8 hereof.

 

“Total Defeasance
Event” shall have the meaning set forth in Section 2.8 hereof.

 

“Trigger Period”
shall mean a period (A) commencing upon the earliest of (i) the occurrence and continuance of an Event of Default, (ii) the
Debt Service Coverage Ratio being less than 1.15 to 1.00 and (iii) the occurrence of a Specified Tenant Trigger Period; and (B)
expiring upon (x) with regard to any Trigger Period commenced in connection with clause (i) above, the cure (if applicable) of
such Event of Default, (y) with regard to any Trigger Period commenced in connection with clause (ii) above, the date that the
Debt Service Coverage Ratio is equal to or greater than 1.15 to 1.00 for two (2) consecutive calendar quarters and (z) with regard
to any Trigger Period commenced in connection with clause (iii) above, a Specified Tenant Trigger Period ceasing to exist in accordance
with the terms hereof. Notwithstanding the foregoing, a Trigger Period shall not be deemed to expire in the event that a Trigger
Period then exists for any other reason.

 

“True Up Payment”
shall mean a payment into the applicable Reserve Account of a sum which, together with any applicable monthly deposits into
the applicable Reserve Account, will be sufficient to discharge the obligations and liabilities for which such Reserve Account
was established as and when reasonably appropriate. The amount of the True Up Payment shall be determined by Lender in its reasonable
discretion and shall be final and binding absent manifest error.

 

“UCC”
or “Uniform Commercial Code” shall mean the Uniform Commercial Code as in effect in the State.

 

     24

    

    

 

“Underwritable
Cash Flow” shall mean an amount calculated by Lender on a monthly basis equal to the sum of Gross Rents plus the
trailing twelve (12) months Operating Income, less the trailing twelve (12) months Operating Expenses, each of which shall be subject
to Lender’s application of the Cash Flow Adjustments. Lender’s calculation of Underwritable Cash Flow (including determination
of items that do not qualify as Operating Income or Operating Expenses) shall be calculated by Lender in good faith based upon
Lender’s determination of Rating Agency criteria and Lender’s calculation of Underwritable Cash Flow shall be final
absent manifest error.

 

“Updated Information”
shall have the meaning set forth in Section 11.1 hereof.

 

“U.S. Obligations”
shall mean direct full faith and credit obligations of the United States of America that are not subject to prepayment, call
or early redemption.

 

“Yield Maintenance
Premium” shall mean an amount equal to the greater of (a) an amount equal to 1% of the amount prepaid;
or (b) an amount equal to the present value as of the date on which the prepayment is made of the Calculated Payments (as defined
below) from the date on which the prepayment is made through the Prepayment Release Date determined by discounting such payments
at the Discount Rate (as defined below). As used in this definition, the term “Calculated Payments” shall mean
the monthly payments of interest only which would be due based on the principal amount of the Loan being prepaid on the date on
which prepayment is made and assuming an interest rate per annum equal to the difference (if such difference is greater than zero)
between (y) the Interest Rate and (z) the Yield Maintenance Treasury Rate (as defined below). As used in this definition, the term
“Discount Rate” shall mean the rate which, when compounded monthly, is equivalent to the Yield Maintenance Treasury
Rate (as defined below), when compounded semi-annually. As used in this definition, the term “Yield Maintenance Treasury
Rate” shall mean the yield calculated by Lender by the linear interpolation of the yields, as reported in the Federal
Reserve Statistical Release H.15- Selected Interest Rates under the heading “U.S. Government Securities/Treasury Constant
Maturities” for the week ending prior to the date on which prepayment is made, of U.S. Treasury Constant Maturities with
maturity dates (one longer or one shorter) most nearly approximating the Prepayment Release Date. In the event Release H.15 is
no longer published, Lender shall select a comparable publication to determine the Yield Maintenance Treasury Rate. In no event,
however, shall Lender be required to reinvest any prepayment proceeds in U.S. Treasury obligations or otherwise. Lender shall notify
Borrower of the amount and the basis of determination of the required prepayment consideration. Lender’s calculation of the
Yield Maintenance Premium shall be conclusive absent manifest error.

 

“ZLDA”
shall mean that certain Zoning Lot Development Agreement made by and between Berkshire Equity LLC, as predecessor in interest
to Borrower, and Asfrie Properties LLC, dated as of September 13, 2005, and recorded October 19, 2005 as CRFN 2005000583884.

 

     25

    

    

 

Section
1.2.          Principles of Construction.

 

All references to sections
and schedules are to sections and schedules in or to this Agreement unless otherwise specified. All uses of the word “including”
shall mean “including, without limitation” unless the context shall indicate otherwise. Unless otherwise specified,
the words “hereof,” “herein” and “hereunder” and words of similar import when used in this
Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. Unless otherwise specified,
all meanings attributed to defined terms herein shall be equally applicable to both the singular and plural forms of the terms
so defined.

 

ARTICLE 2

 

GENERAL TERMS

 

Section
2.1.          Loan Commitment; Disbursement to Borrower. Except
as expressly and specifically set forth herein, Lender has no obligation or other commitment to loan any funds to Borrower or otherwise
make disbursements to Borrower. Borrower hereby waives any right Borrower may have to make any claim to the contrary.

 

Section
2.2.          The Loan. Subject to and upon the terms and conditions
set forth herein, Lender hereby agrees to make and Borrower hereby agrees to accept the Loan on the Closing Date.

 

Section
2.3.          Disbursement to Borrower. Borrower may request
and receive only one borrowing hereunder in respect of the Loan and any amount borrowed and repaid hereunder in respect of the
Loan may not be re-borrowed.

 

Section
2.4.          The Note and the other Loan Documents. The Loan
shall be evidenced by the Note and this Agreement and secured by this Agreement and the other Loan Documents.

 

Section 2.5.          Interest
Rate.

 

(a)          Interest
on the outstanding principal balance of the Loan shall accrue from the Closing Date at the Interest Rate until repaid in accordance
with the applicable terms and conditions hereof.

 

(b)          Intentionally
Omitted.

 

(c)          In
the event that, and for so long as, any Event of Default shall have occurred and be continuing, (i) the outstanding principal balance
of the Loan and, to the extent permitted by applicable law, overdue interest in respect of the Loan, shall each accrue interest
at the Default Rate, calculated from the date such payment was due without regard to any grace or cure periods contained herein,
(ii) without limitation of any rights or remedies contained herein and/or in any other Loan Document, any interest accrued at the
Default Rate in excess of the interest component of the Monthly Debt Service Payment Amount shall, to the extent not already paid
and/or due and payable hereunder, be due and payable on each Monthly Payment Date and (iii) all references herein and/or in
any other Loan Document to the “Interest Rate” shall be deemed to refer to the Default Rate.

 

     26

    

    

 

(d)          Interest
on the outstanding principal balance of the Loan shall be calculated by multiplying (a) the actual number of days elapsed in the
period for which the calculation is being made by (b) a daily rate based on a three hundred sixty (360) day year (that is, the
Interest Rate or the Default Rate, as then applicable, expressed as an annual rate divided by 360) by (c) the outstanding principal
balance. The accrual period for calculating interest due on each Monthly Payment Date shall be the Interest Accrual Period immediately
prior to such Monthly Payment Date. Borrower understands and acknowledges that such interest accrual requirement results in more
interest accruing on the Loan than if either a thirty (30) day month and a three hundred sixty (360) day year or the actual number
of days and a three hundred sixty-five (365) day year were used to compute the accrual of interest on the Loan.

 

(e)          This
Agreement and the other Loan Documents are subject to the express condition that at no time shall Borrower be required to pay interest
on the principal balance of the Loan at a rate which could subject Lender to either civil or criminal liability as a result of
being in excess of the Maximum Legal Rate. If by the terms of this Agreement or the other Loan Documents, Borrower is at any time
required or obligated to pay interest on the principal balance due hereunder at a rate in excess of the Maximum Legal Rate, the
Interest Rate or the Default Rate, as the case may be, shall be deemed to be immediately reduced to the Maximum Legal Rate and
all previous payments in excess of the Maximum Legal Rate shall be deemed to have been payments in reduction of principal and not
on account of the interest due hereunder. All sums paid or agreed to be paid to Lender for the use, forbearance, or detention of
the sums due under the Loan, shall, to the extent permitted by applicable law, be amortized, prorated, allocated, and spread throughout
the full stated term of the Loan until payment in full so that the rate or amount of interest on account of the Loan does not exceed
the Maximum Legal Rate from time to time in effect and applicable to the Loan for so long as the Loan is outstanding.

 

Section 2.6.          Loan
Payments.

 

(a)          Borrower
shall make a payment to Lender of interest only on the Closing Date for the period from (and including) the Closing Date through
(but excluding) the sixth (6th) day of either (i) the month in which the Closing Date occurs (if such Closing Date is
after the first day of such month, but prior to the sixth (6th) day of such month) or (ii) if the Closing Date is after
the sixth (6th) day of the then current calendar month, the month following the month in which the Closing Date occurs;
provided, however, if the Closing Date is the sixth (6th) day of a calendar month, no such separate payment of interest
shall be due. Borrower shall make a payment to Lender of interest and principal in the amount of the Monthly Debt Service Payment
Amount on the Monthly Payment Date occurring in June, 2013 and on each Monthly Payment Date thereafter to and including the Maturity
Date. Each payment shall be applied first to accrued and unpaid interest and the balance to principal. The non-interest only portion
of Monthly Debt Service Payment Amount required hereunder is based upon a thirty (30) year amortization schedule.

 

(b)          Intentionally
Omitted.

 

(c)          Borrower
shall pay to Lender on the Maturity Date the outstanding principal balance of the Loan, all accrued and unpaid interest and all
other amounts due hereunder and under the Note, the Security Instrument and the other Loan Documents.

 

     27

    

    

 

(d)          If
any principal, interest or any other sum due under the Loan Documents, other than the payment of principal due on the Maturity
Date, is not paid by Borrower on the date on which it is due, Borrower shall pay to Lender upon demand an amount equal to the lesser
of five percent (5%) of such unpaid sum or the maximum amount permitted by applicable law in order to defray the expense incurred
by Lender in handling and processing such delinquent payment and to compensate Lender for the loss of the use of such delinquent
payment. Any such amount shall be secured by the Security Instrument and the other Loan Documents.

 

(e)          

 

(i)          Except
as otherwise specifically provided herein, all payments and prepayments under this Agreement and the Note shall be made to Lender
not later than 2:00 P.M., New York City time, on the date when due and shall be made in lawful money of the United States of America
in immediately available funds at Lender’s office, and any funds received by Lender after such time shall, for all purposes
hereof, be deemed to have been paid on the next succeeding Business Day.

 

(ii)         Whenever
any payment to be made hereunder or under any other Loan Document shall be stated to be due on a day which is not a Business Day,
the due date thereof shall be deemed to be the immediately preceding Business Day.

 

(iii)        All
payments required to be made by Borrower hereunder or under the Note or the other Loan Documents shall be made irrespective of,
and without deduction for, any setoff, claim or counterclaim and shall be made irrespective of any defense thereto.

 

Section 2.7.          Prepayments.

 

(a)          Except
as otherwise provided herein, Borrower shall not have the right to prepay the Loan in whole or in part. On or after the Monthly
Payment Date occurring two (2) months prior to the Maturity Date, Borrower may, provided no Event of Default has occurred and is
continuing, at its option and upon thirty (30) days prior notice to Lender (or such shorter period of time as may be permitted
by Lender in its sole discretion), prepay the Debt in whole on any date without payment of any prepayment premium or penalty (including,
without limitation, any Default Yield Maintenance Premium). Any prepayment received by Lender on a date other than a Monthly Payment
Date shall include interest which would have accrued thereon to the next Monthly Payment Date (such amounts, the “Interest
Shortfall”) and such amounts (i.e., principal and interest prepaid by Borrower) shall be held by Lender as collateral
security for the Loan in an interest bearing Eligible Account at an Eligible Institution, with interest accruing on such amounts
to the benefit of Borrower; such amounts prepaid shall be applied to the Loan on the next Monthly Payment Date, with any interest
on such funds paid to Borrower on such date provided no Event of Default then exists.

 

(b)          On
each date on which Lender actually receives a distribution of Net Proceeds, and if Lender does not make such Net Proceeds available
to Borrower for Restoration, Borrower shall, at Lender’s option, prepay the Debt in an amount equal to one hundred percent
(100%) of such Net Proceeds together with any applicable Interest Shortfall. Borrower shall make the Condemnation Payment as and
to the extent required hereunder. No prepayment premium or penalty (including, without limitation, any Default Yield Maintenance
Premium) shall be due in connection with any prepayment made pursuant to this Section 2.7(b) (including, without limitation, in
connection with any Condemnation Payment). Any prepayment received by Lender pursuant to this Section 2.7(b) on a date other than
a Monthly Payment Date shall be held by Lender as collateral security for the Loan in an interest bearing, Eligible Account at
an Eligible Institution, with such interest accruing to the benefit of Borrower, and shall be applied by Lender on the next Monthly
Payment Date, with any interest on such funds paid to Borrower on such date provided no Event of Default then exists.

 

     28

    

    

 

(c)          If,
prior to the Prepayment Release Date, concurrently with or after an Event of Default, payment of all or any part of the principal
of the Loan is tendered by Borrower, a purchaser at foreclosure or any other Person, (i) such tender shall be deemed an attempt
to circumvent the prohibition against prepayment set forth herein and (ii) Borrower, such purchaser at foreclosure or other Person
shall pay the Default Yield Maintenance Premium, in addition to the outstanding principal balance, all accrued and unpaid interest
and other amounts payable under the Loan Documents. Notwithstanding anything to the contrary contained herein or in any other Loan
Document, any prepayment of the Debt shall be applied to the Debt in such order and priority as may be determined by Lender in
its sole discretion.

 

Section 2.8.          Defeasance.

 

(a)          Provided
no Event of Default shall have occurred and remain uncured, Borrower shall have the right at any time after the Release Date and
prior to the Maturity Date to voluntarily defease the entire Loan and obtain a release of the lien of the Security Instrument by
providing Lender with the Total Defeasance Collateral (hereinafter, a “Total Defeasance Event”), subject to
the satisfaction of the following conditions precedent:

 

(i)          Borrower
shall provide Lender not less than thirty (30) days notice (or such shorter period of time if permitted by Lender in its sole discretion)
but not more than ninety (90) days notice specifying a date (the “Total Defeasance Date”) on which the Total
Defeasance Event is to occur;

 

(ii)         Unless
otherwise agreed to in writing by Lender, Borrower shall pay to Lender (A) all payments of principal and interest due and payable
on the Loan to and including the Total Defeasance Date (provided, that, if such Total Defeasance Date is not a Monthly Payment
Date, Borrower shall also pay to Lender all payments of principal and interest due on the Loan to and including the next occurring
Monthly Payment Date, unless the Total Defeasance Collateral shall be sufficient to make such payments, together with all other
payments required to be made hereunder); (B) all other sums, if any, due and payable under the Note, this Agreement, the Security
Instrument and the other Loan Documents through and including the Total Defeasance Date (or, if the Total Defeasance Date is not
a Monthly Payment Date, the next occurring Monthly Payment Date); (C) all escrow, closing, recording, legal, Rating Agency and
other reasonable fees, costs and expenses paid or incurred by Lender or its agents in connection with the Total Defeasance Event,
the release of the lien of Security Instrument on the Property, the review of the proposed Defeasance Collateral and the preparation
of the Security Agreement, the Defeasance Collateral Account Agreement and related documentation; and (D) any revenue, documentary
stamp, intangible or other taxes, charges or fees due in connection with the transfer or assumption of the Note or the Total Defeasance
Event;

 

     29

    

    

 

(iii)        Borrower
shall deposit the Total Defeasance Collateral into the Defeasance Collateral Account and otherwise comply with the provisions of
Section 2.8(d) hereof;

 

(iv)        Borrower
shall execute and deliver to Lender a Security Agreement in respect of the Defeasance Collateral Account and the Total Defeasance
Collateral;

 

(v)         Borrower
shall deliver to Lender (i) an opinion of counsel for Borrower that is standard in commercial lending transactions and subject
only to customary qualifications, assumptions and exceptions opining, among other things, that (A) Lender has a legal and valid
perfected first priority security interest in the Defeasance Collateral Account and the Total Defeasance Collateral; (B) the Total
Defeasance Event will not result in a deemed exchange for purposes of the IRS Code and will not adversely affect the status of
the Note as indebtedness for federal income tax purposes; and (C) delivery of the Total Defeasance Collateral and the grant of
a security interest therein to Lender shall not constitute an avoidable preference under Section 547 of the Bankruptcy Code or
applicable state law; (ii) a REMIC Opinion with respect to the Total Defeasance Event; and (iii) a New Non-Consolidation Opinion
with respect to Successor Borrower;

 

(vi)        Borrower
shall deliver to Lender a Rating Agency Confirmation as to the Total Defeasance Event;

 

(vii)       Borrower
shall deliver an Officer’s Certificate certifying that the requirements set forth in this Section 2.8 have been satisfied;

 

(viii)      Borrower
shall deliver a certificate of a nationally recognized public accounting firm acceptable to Lender certifying that the Total Defeasance
Collateral will generate monthly amounts equal to or greater than the Scheduled Defeasance Payments; and

 

(ix)         Borrower
shall deliver such other certificates, opinions, documents and instruments as Lender may reasonably request.

 

(b)          If
Borrower has elected to defease the entire Loan and the requirements of this Section 2.8 have been satisfied, the Property shall
be released from the lien of the Security Instrument and the Total Defeasance Collateral pledged pursuant to the Security Agreement
shall be the sole source of collateral securing the Loan. In connection with the release of the lien, Borrower shall submit to
Lender, not less than fifteen (15) days prior to the Total Defeasance Date (or such shorter time as is acceptable to Lender in
its sole discretion), a release of lien (and related Loan Documents) for execution by Lender. Such release shall be in a form appropriate
in the jurisdiction in which the Property is located and that contains standard provisions protecting the rights of the releasing
lender. In addition, Borrower shall provide all other documentation Lender reasonably requires to be delivered by Borrower in connection
with such release, together with an Officer’s Certificate certifying that such documentation (i) is in compliance with all
Legal Requirements, and (ii) will effect such release in accordance with the terms of this Agreement. Except as set forth in this
Article 2, no repayment, prepayment or defeasance of all or any portion of the Loan shall cause, give rise to a right to require,
or otherwise result in, the release of the lien of the Security Instrument.

 

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(c)          Intentionally
Omitted.

 

(d)          On
or before the date on which Borrower delivers the Total Defeasance Collateral, Borrower shall open at any Eligible Institution
an Eligible Account (the “Defeasance Collateral Account”). The Defeasance Collateral Account shall contain only
(i) Total Defeasance Collateral, and (ii) cash from interest and principal paid on the Total Defeasance Collateral. All cash from
interest and principal payments paid on the Total Defeasance Collateral shall be paid over to Lender on each Monthly Payment Date
and applied first to accrued and unpaid interest and then to principal. Any cash from interest and principal paid on the Total
Defeasance Collateral not needed to pay the Scheduled Defeasance Payments shall be (i) paid to Borrower or Successor Borrower (as
applicable) and/or (ii) to the extent permitted by applicable REMIC Requirements, retained in the Defeasance Collateral Account.
Borrower shall cause the Eligible Institution at which the Total Defeasance Collateral is deposited to enter an agreement with
Borrower and Lender, satisfactory to Lender in its sole discretion, pursuant to which such Eligible Institution shall agree to
hold and distribute the Total Defeasance Collateral in accordance with this Agreement (such agreement, the “Defeasance
Collateral Account Agreement”). Borrower or Successor Borrower (as applicable) shall be the owner of the Defeasance Collateral
Account and shall report all income accrued on Total Defeasance Collateral for federal, state and local income tax purposes in
its income tax return. Borrower shall prepay all cost and expenses associated with opening and maintaining the Defeasance Collateral
Account. Lender shall not in any way be liable by reason of any insufficiency in the Defeasance Collateral Account.

 

(e)          In
connection with a Total Defeasance Event under this Section 2.8, a successor entity (the “Successor Borrower”)
shall be established, which such Successor Borrower shall be (i) a Single Purpose Entity and (ii) at Lender’s option and
in Lender’s sole discretion, established and/or designated by Lender or, if Lender does not so elect, established and/or
designated by Borrower. The right of Lender hereunder to designate and/or establish Successor Borrower may, at the option and in
the sole discretion of the initial named Lender hereunder, be retained by the initial named Lender hereunder notwithstanding any
Secondary Market Transaction. Borrower shall transfer and assign all obligations, rights and duties under and to the Note, Security
Agreement and Defeasance Collateral Account Agreement, together with the Total Defeasance Collateral to such Successor Borrower.
Such Successor Borrower shall assume the obligations under the Note, the Defeasance Collateral Account Agreement and the Security
Agreement in a manner acceptable to Lender and the Rating Agencies and Borrower shall be relieved of its obligations under the
Loan Documents (other than those obligations which by their terms survive a repayment, defeasance or other satisfaction of the
Loan and/or a transfer of the Property in connection with Lender’s exercise of its remedies under the Loan Documents). Borrower
shall pay all reasonable costs and expenses incurred by Lender and Successor Borrower, including attorney’s fees and expenses,
incurred in connection with the foregoing (including, without limitation, Lender’s costs of establishing and/or designating
Successor Borrower, if any).

 

     31

    

    

 

(f)          Notwithstanding
anything to the contrary contained in this Section 2.8, the parties hereto hereby acknowledge and agree that after the Securitization
of the Loan (or any portion thereof or interest therein), with respect to any Lender approval or similar discretionary rights over
any matters contained in this Section 2.8 (any such matter, an “Defeasance Approval Item”), such rights shall
be construed such that Lender shall only be permitted to withhold its consent or approval with respect to any Defeasance Approval
Item if the same fails to meet the Prudent Lender Standard.

 

ARTICLE 3

 

REPRESENTATIONS AND WARRANTIES

 

Borrower represents
and warrants as of the Closing Date that:

 

Section
3.1.          Legal Status and Authority. Borrower (a) is duly
organized, validly existing and in good standing under the laws of its state of formation; (b) is duly qualified to transact business
and is in good standing in the State; and (c) has all necessary approvals, governmental and otherwise, and full power and authority
to own, operate and lease the Property. Borrower has full power, authority and legal right to mortgage, grant, bargain, sell, pledge,
assign, warrant, transfer and convey the Property pursuant to the terms hereof and to keep and observe all of the terms of this
Agreement, the Note, the Security Instrument and the other Loan Documents on Borrower’s part to be performed.

 

Section
3.2.          Validity of Documents. (a) The execution, delivery
and performance of this Agreement, the Note, the Security Instrument and the other Loan Documents by Borrower and Guarantor and
the borrowing evidenced by the Note and this Agreement (i) are within the power and authority of such parties; (ii) have been authorized
by all requisite organizational action of such parties; (iii) have received all necessary approvals and consents, corporate, governmental
or otherwise; (iv) will not violate, conflict with, result in a breach of or constitute (with notice or lapse of time, or both)
a material default under any provision of law, any order or judgment of any court or Governmental Authority, any license, certificate
or other approval required to operate the Property, any applicable organizational documents, or any applicable indenture, agreement
or other instrument; (v) will not result in the creation or imposition of any lien, charge or encumbrance whatsoever upon any of
its assets, except the lien and security interest created hereby and by the other Loan Documents; and (vi) will not require any
authorization or license from, or any filing with, any Governmental Authority (except for the recordation of the Security Instrument
in appropriate land records in the State and except for Uniform Commercial Code filings relating to the security interest created
hereby), (b) this Agreement, the Note, the Security Instrument and the other Loan Documents have been duly executed and delivered
by Borrower and Guarantor and (c) this Agreement, the Note, the Security Instrument and the other Loan Documents constitute the
legal, valid and binding obligations of Borrower and Guarantor. The Loan Documents are not subject to any right of rescission,
set-off, counterclaim or defense by Borrower or Guarantor, including the defense of usury, nor would the operation of any of the
terms of the Loan Documents, or the exercise of any right thereunder, render the Loan Documents unenforceable (except as such enforcement
may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar Creditors Rights Laws, and by general principles
of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law)). Neither Borrower nor
Guarantor has asserted any right of rescission, set-off, counterclaim or defense with respect to the Loan Documents.

 

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Section
3.3.          Litigation. There is no action, suit, proceeding
or governmental investigation, in each case, judicial, administrative or otherwise (including any condemnation or similar proceeding),
pending or, to the best of Borrower’s knowledge, threatened or contemplated against Borrower, Sponsor or Guarantor or against
or affecting the Property other than those that are fully covered by insurance or would not otherwise have a Material Adverse Effect.

 

Section
3.4.          Agreements. Borrower is not a party to any agreement
or instrument or subject to any restriction which would have a Material Adverse Effect. Borrower is not in default in any material
respect in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any agreement
or instrument to which it is a party or by which Borrower or the Property is bound. Borrower has no material financial obligation
under any agreement or instrument to which Borrower is a party or by which Borrower or the Property is otherwise bound, other than
(a) obligations incurred in the ordinary course of the operation of the Property and (b) obligations under this Agreement, the
Security Instrument, the Note and the other Loan Documents. There is no agreement or instrument to which Borrower is a party or
by which Borrower is bound that would require the subordination in right of payment of any of Borrower’s obligations hereunder
or under the Note to an obligation owed to another party.

 

Section
3.5.          Financial Condition.

 

(a)          Borrower
is solvent and Borrower has received reasonably equivalent value for the granting of the Security Instrument. No proceeding under
Creditors Rights Laws with respect to any Borrower Party has been initiated

 

(b)          In
the last ten (10) years, no (i) petition in bankruptcy has been filed by or against any Borrower Party and (ii) Borrower Party
has ever made any assignment for the benefit of creditors or taken advantage of any Creditors Rights Laws.

 

(c)          No
Borrower Party is contemplating either the filing of a petition by it under any Creditors Rights Laws or the liquidation of its
assets or property and Borrower has no knowledge of any Person contemplating the filing of any such petition against any Borrower
Party.

 

Section
3.6.          Disclosure. Borrower has disclosed to Lender
all material facts and has not failed to disclose any material fact that could cause any representation or warranty made herein
to be materially misleading.

 

Section
3.7.          No Plan Assets. Borrower is not an “employee
benefit plan,” as defined in Section 3(3) of ERISA, subject to Title I of ERISA, and none of the assets of Borrower constitutes
or will constitute “plan assets” of one or more such plans within the meaning of 29 C.F.R. Section 2510.3-101. In addition,
(a) Borrower is not a “governmental plan” within the meaning of Section 3(32) of ERISA and (b) transactions by or with
Borrower are not subject to state statutes regulating investment of, and fiduciary obligations with respect to, governmental plans
similar to the provisions of Section 406 of ERISA or Section 4975 of the IRS Code currently in effect, which prohibit or otherwise
restrict the transactions contemplated by this Agreement.

 

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Section
3.8.          Not a Foreign Person. Borrower is not a “foreign
person” within the meaning of § 1445(f)(3) of the IRS Code.

 

Section
3.9.          Intentionally Omitted.

 

Section
3.10.         Business Purposes.         The
Loan is solely for the business purpose of Borrower, and is not for personal, family, household, or agricultural purposes.

 

Section
3.11.         Borrower Principal Place of Business. Borrower’s
principal place of business and its chief executive office as of the date hereof is 4611 12th Avenue, Apt. IL, Brooklyn, New York
11219. Borrower’s mailing address, as set forth in the opening paragraph hereof or as changed in accordance with the provisions
hereof, is true and correct. Borrower’s organizational identification number, if any, assigned by the state of its incorporation
or organization is 5222543. Borrower’s federal tax identification number is 46-1449451. Borrower is not subject to back-up
withholding taxes.

 

Section
3.12.         Status of Property.

 

(a)          Borrower
has obtained all Permits, all of which are in full force and effect as of the date hereof and not subject to revocation, suspension,
forfeiture or modification. A true, correct and complete copy of the current temporary certificate of occupancy for the Property
is attached hereto as Exhibit B (together with any renewal temporary certificate of occupancy for the Property, the “TCO”).
Exhibit C sets forth a true, correct and complete description of the PCO Issuance Requirements.

 

(b)          To
the best of Borrower’s knowledge, the Property and the present and contemplated use and occupancy thereof are in material
compliance with the TCO and all applicable zoning ordinances, building codes, land use laws, Environmental Laws and other similar
Legal Requirements.

 

(c)          The
Property is served by all utilities required for the current or contemplated use thereof. All utility service is provided by public
utilities and the Property has accepted or is equipped to accept such utility service.

 

(d)          All
public roads and streets necessary for service of and access to the Property for the current or contemplated use thereof have been
completed, are serviceable and all-weather and are physically and legally open for use by the public. The Property has either direct
access to such public roads or streets or access to such public roads or streets by virtue of a perpetual easement or similar agreement
inuring in favor of Borrower and any subsequent owners of the Property.

 

(e)          The
Property is served by public water and sewer systems.

 

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(f)          The
Property is free from damage caused by fire or other casualty. Except as expressly shown in the property condition reports delivered
to Lender, to the knowledge of Borrower, the Property, including, without limitation, all buildings, improvements, parking facilities,
sidewalks, storm drainage systems, roofs, plumbing systems, HVAC systems, fire protection systems, electrical systems, equipment,
elevators, exterior sidings and doors, landscaping, irrigation systems and all structural components, are in good condition, order
and repair in all material respects; there exists no structural or other material defects or damages in the Property, whether latent
or otherwise, and Borrower has not received notice from any insurance company or bonding company of any defects or inadequacies
in the Property, or any part thereof, which would adversely affect the insurability of the same or cause the imposition of extraordinary
premiums or charges thereon or of any termination or threatened termination of any policy of insurance or bond.

 

(g)          All
costs and expenses of any and all labor, materials, supplies and equipment used in the construction of the Improvements have been
paid in full. There are no mechanics’ or similar liens or claims which have been filed for work, labor or material (and no
rights are outstanding that under applicable Legal Requirements could give rise to any such liens) affecting the Property which
are or may be prior to or equal to the lien of the Security Instrument.

 

(h)          Borrower
has paid in full for, and is the owner of, all furnishings, fixtures and equipment (other than Tenants’ property) used in
connection with the operation of the Property, free and clear of any and all security interests, liens or encumbrances, except
the lien and security interest created by this Agreement, the Note, the Security Instrument and the other Loan Documents.

 

(i)          To
the knowledge of Borrower, all liquid and solid waste disposal, septic and sewer systems located on the Property are in a good
and safe condition and repair and in compliance with all Legal Requirements.

 

(j)          Except
as expressly disclosed on the Survey, no portion of the Improvements is located in an area identified by the Federal Emergency
Management Agency or any successor thereto as an area having special flood hazards pursuant to the Flood Insurance Acts. No part
of the Property consists of or is classified as wetlands, tidelands or swamp and overflow lands.

 

(k)          Except
as expressly disclosed on the Survey, all the Improvements lie within the boundaries of the Land and any building restriction lines
applicable to the Land.

 

(l)          To
Borrower’s knowledge after due inquiry, there are no pending or proposed special or other assessments for public improvements
or otherwise affecting the Property, nor are there any contemplated improvements to the Property that may result in such special
or other assessments.

 

Section
3.13.         Financial Information. All financial data, including,
without limitation, the balance sheets, statements of cash flow, statements of income and operating expense and rent rolls, that
have been delivered to Lender in respect of Borrower, Sponsor, Guarantor and/or the Property (a) are true, complete and correct
in all material respects, (b) accurately represent the financial condition of Borrower, Sponsor, Guarantor or the Property, as
applicable, as of the date of such reports, and (c) to the extent prepared or audited by an independent certified public accounting
firm, have been prepared in accordance with the Approved Accounting Method throughout the periods covered, except as disclosed
therein. Borrower does not have any contingent liabilities, liabilities for taxes, unusual forward or long-term commitments or
unrealized or anticipated losses from any unfavorable commitments that are known to Borrower and reasonably likely to have a Material
Adverse Effect, except as referred to or reflected in said financial statements. Since the date of such financial statements, there
has been no materially adverse change in the financial condition, operations or business of Borrower, Sponsor or Guarantor from
that set forth in said financial statements.

 

     35

    

    

 

Section
3.14.         Condemnation. No Condemnation or other proceeding
has been commenced or, to Borrower’s best knowledge, is threatened or contemplated with respect to all or any portion of
the Property or for the relocation of the access to the Property.

 

Section
3.15.         Separate Lots. The Property is assessed for real estate
tax purposes as one or more wholly independent tax lot or lots, separate from any adjoining land or improvements not constituting
a part of such lot or lots, and no other land or improvements is assessed and taxed together with the Property or any portion thereof.

 

Section
3.16.         Insurance. Borrower has obtained and has delivered
to Lender certified copies of all Policies (or such other evidence acceptable to Lender) reflecting the insurance coverages, amounts
and other requirements set forth in this Agreement. There are no present claims of any material nature under any of the Policies,
and to Borrower’s knowledge, no Person, including Borrower, has done, by act or omission, anything which would impair the
coverage of any of the Policies.

 

Section
3.17.         Use of Property. The Property is used exclusively
as a mixed-use commercial property, with residential apartments, retail space and dedicated office space, and other appurtenant
and related uses. Specifically, (i) floors one (1) through eight (8) are used exclusively as non-residential, dedicated office
space, (ii) floors nine (9) through eleven (11) are used or are to be used exclusively for residential apartments, and (iii) the
ground floor contains certain retail space.

 

     36

    

    

 

Section
3.18.         Leases and Rent Roll.

 

(a)          Except
as disclosed in the rent roll for the Property delivered to, certified to and approved by Lender in connection with the closing
of the Loan (the “Rent Roll”), (i) Borrower is the sole owner of the entire lessor’s interest in the Leases;
(ii) the Leases are valid and enforceable and in full force and effect; (iii) all of the Leases are arms-length agreements with
bona fide, independent third parties; (iv) no party under any Lease is in default; (v) all Rents due have been paid in full and
no Tenant is in arrears in its payment of Rent; (vi) the terms of all alterations, modifications and amendments to the Leases are
reflected in the certified occupancy statement delivered to and approved by Lender; (vii) none of the Rents reserved in the Leases
have been assigned or otherwise pledged or hypothecated; (viii) none of the Rents have been collected for more than one (1) month
in advance (except a security deposit shall not be deemed rent collected in advance); (ix) the premises demised under the Leases
have been completed, all improvements, repairs, alterations or other work required to be furnished on the part of Borrower under
the Leases have been completed, the Tenants under the Leases have accepted the premises demised thereunder and have taken possession
of the same on a rent-paying basis and any payments, credits or abatements required to be given by Borrower to the Tenants under
the Leases have been made in full; (xi) to the knowledge of Borrower, there exist no offsets or defenses to the payment of any
portion of the Rents and Borrower has no monetary obligation to any Tenant under any Lease; (xii) Borrower has received no notice
from any Tenant challenging the validity or enforceability of any Lease; (xiii) there are no agreements with the Tenants under
the Leases other than expressly set forth in each Lease; (xiv) the Leases are valid and enforceable against Borrower and the Tenants
set forth therein; (xv) no Lease contains an option to purchase, right of first refusal to purchase, right of first refusal to
lease additional space at the Property, or any other similar provision; (xvi) no Person has any possessory interest in, or right
to occupy, the Property except under and pursuant to a Lease; (xvii) all security deposits relating to the Leases are reflected
on the Rent Roll and have been collected by Borrower; (xviii) no brokerage commissions or finders fees are due and payable regarding
any Lease; (xix) each Tenant is in actual, physical occupancy of the premises demised under its Lease; (xx) there are no actions
or proceedings (voluntary or otherwise) pending against any Tenants or guarantors under Leases, in each case, under bankruptcy
or similar insolvency laws or regulations; and (xxi) no event has occurred giving any Tenant the right to cease operations at its
leased premises (i.e., “go dark”), terminate its Lease or pay reduced or alternative Rent to Borrower under any of
the terms of such Lease, such as a co-tenancy provision. Prior to the Closing Date, Borrower has (A) requested Tenant estoppel
certificates from each non-residential Tenant and (B) received duly executed estoppel certificates from each non-residential Tenant.
Prior to the Closing Date, Borrower has delivered to Lender Tenant Direction Notices (as defined in Section 9.2 hereof)) for each
Tenant occupying space at the Property under a non residential Lease as of the date hereof to be held in escrow pursuant to the
terms of Section 9.1 hereof.

 

(b)          With
respect to the NYC EPA Lease:

 

(i)          The
initial term of the NYC EPA Lease commenced on January 1,1998 and expires on August 31, 2020. The City of New York, as tenant under
the NYC EPA Lease, has no remaining options to renew the NYC EPA Lease.

 

(ii)         The
City of New York, as tenant under the NYC EPA Lease, has no rights of first refusal, options to purchase or other interest in or
claim to the Property, or any part thereof.

 

(iii)        The
annual base rent under the NYC EPA Lease is currently $3,460,023.24. The monthly base rent under the NYC EPA Lease is $288,335.27.

 

(c)          With
respect to the NYC HRA Lease:

 

(i)          The
initial term of the NYC HRA Lease commenced on January 1,1997 and expires on December 31, 2016. The City of New York, as tenant
under the NYC HRA Lease, has no remaining options to renew the NYC HRA Lease.

 

(ii)         The
City of New York, as tenant under the NYC HRA Lease, has no rights of first refusal, options to purchase or other interest in or
claim to the Property, or any part thereof.

 

(iii)        The
annual base rent under the NYC HRA Lease is currently $1,707,616.00. The monthly base rent under the NYC HRA Lease is $142,301.33.

 

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Section
3.19.         Filing and Recording Taxes. All mortgage, mortgage
recording, stamp, intangible or other similar tax required to be paid by any Person under applicable Legal Requirements currently
in effect in connection with the execution, delivery, recordation, filing, registration, perfection or enforcement of any of this
Agreement, the Security Instrument, the Note and the other Loan Documents, including, without limitation, the Security Instrument,
have been paid or will be paid, and, under current Legal Requirements, the Security Instrument and the other Loan Documents are
enforceable in accordance with their terms by Lender (or any subsequent holder thereof), except as such enforcement may be limited
by bankruptcy, insolvency, reorganization, moratorium or other similar Creditors Rights Laws, and by general principles of equity
(regardless of whether such enforceability is considered in a proceeding in equity or at law).

 

Section
3.20.         Management Agreement. No Management Agreement is currently
in effect and no management fees are paid by the Borrower or any other Person for the management or operation of the Property.

 

Section
3.21.         Illegal Activity/Forfeiture.

 

(a)          No
portion of the Property has been or will be purchased, improved, equipped or furnished with proceeds of any illegal activity and
to the best of Borrower’s knowledge, there are no illegal activities or activities relating to controlled substances at the
Property.

 

(b)          There
has not been and shall never be committed by Borrower or, to the knowledge of Borrower, any other Person in occupancy of or involved
with the operation or use of the Property any act or omission affording the federal government or any state or local government
the right of forfeiture as against the Property or any part thereof or any monies paid in performance of Borrower’s obligations
under this Agreement, the Note, the Security Instrument or the other Loan Documents. Borrower hereby covenants and agrees not to
commit, permit or suffer to exist any act or omission affording such right of forfeiture.

 

Section
3.22.         Taxes. Borrower has filed all federal, state, county,
municipal, and city income, personal property and other tax returns required to have been filed by it and has paid all taxes and
related liabilities which have become due pursuant to such returns or pursuant to any assessments received by it. Borrower knows
of no basis for any additional assessment in respect of any such taxes and related liabilities for prior years.

 

Section
3.23.         Permitted Encumbrances. None of the Permitted Encumbrances,
individually or in the aggregate, materially interferes with the benefits of the security intended to be provided by this Agreement,
the Security Instrument, the Note and the other Loan Documents materially and adversely affects the value or marketability of the
Property, impairs the use or the operation of the Property or impairs Borrower’s ability to pay its obligations in a timely
manner.

 

Section
3.24.         Third Party Representations. Each of the representations
and the warranties made by Sponsor and Guarantor in the other Loan Documents (if any) are true, complete and correct in all material
respects.

 

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Section
3.25.         Non-Consolidation Opinion Assumptions. All of the
assumptions made in the Non-Consolidation Opinion, including, but not limited to, any exhibits attached thereto and/or certificates
delivered in connect on therewith, are true, complete and correct.

 

Section
3.26.         Federal Reserve Regulations. No part of the proceeds
of the Loan will be used for the purpose of purchasing or acquiring any “margin stock” within the meaning of Regulation
U of the Board of Governors of the Federal Reserve System or for any other purpose which would be inconsistent with such Regulation
U or any other Regulations of such Board of Governors, or for any purposes prohibited by Legal Requirements or by the terms and
conditions of this Agreement, the Security Instrument, the Note or the other Loan Documents.

 

Section
3.27.         Investment Company Act. Borrower is not (a) an “investment
company” or a company “controlled” by an “investment company,” within the meaning of the Investment
Company Act of 1940, as amended; (b) a “holding company” or a “subsidiary company” of a “holding
company” or an “affiliate” of either a “holding company” or a “subsidiary company” within
the meaning of the Public Utility Holding Company Act of 1935, as amended; or (c) subject to any other federal or state law
or regulation which purports to restrict or regulate its ability to borrow money.

 

Section
3.28.         Fraudulent Conveyance. Borrower (a) has not entered
into the Loan or any Loan Document with the actual intent to hinder, delay, or defraud any creditor and (b) received reasonably
equivalent value in exchange for its obligations under the Loan Documents. Giving effect to the Loan, the fair saleable value of
Borrower’s assets exceeds and will, immediately following the execution and delivery of the Loan Documents, exceed Borrower’s
total liabilities, including, without limitation, subordinated, unliquidated, disputed or contingent liabilities. The fair saleable
value of Borrower’s assets is and will, immediately following the execution and delivery of the Loan Documents, be greater
than Borrower’s probable liabilities, including the maximum amount of its contingent liabilities or its debts as such debts
become absolute and matured. Borrower’s assets do not and, immediately following the execution and delivery of the Loan Documents
will not, constitute unreasonably small capital to carry out its business as conducted or as proposed to be conducted. Borrower
does not intend to, and does not believe that it will, incur debts and liabilities (including, without limitation, contingent liabilities
and other commitments) beyond its ability to pay such debts as they mature (taking into account the timing and amounts to be payable
on or in respect of obligations of Borrower).

 

Section
3.29.         Embargoed Person. To the best of Borrower’s
knowledge, as of the date hereof and at all times throughout the term of the Loan, including after giving effect to any transfers
of interests permitted pursuant to the Loan Documents, (a) none of the funds or other assets of any Borrower Party constitute (or
will constitute) property of, or are (or will be) beneficially owned, directly or indirectly, by any Person or government subject
to trade restrictions under U.S. law, including but not limited to, the International Emergency Economic Powers Act, 50 U.S.C.
§§ 1701 et seq., The Trading with the Enemy Act, 50 U.S.C. App. 1 et seq., and any Executive Orders or regulations promulgated
thereunder with the result that the investment in any such Borrower Party (whether directly or indirectly) is prohibited by applicable
law or the Loan made by Lender is in violation of applicable law (“Embargoed Person”); (b) no Embargoed Person
has (or will have) any interest of any nature whatsoever in any Borrower Party, with the result that the investment in any such
Borrower Party (whether directly or indirectly), is prohibited by applicable law or the Loan is in violation of applicable law;
and (c) none of the funds of any Borrower Party have been (or will be) derived from any unlawful activity with the result
that the investment in any such Borrower Party (whether directly or indirectly), is prohibited by applicable law or the Loan is
in violation of applicable law. Any violation of the foregoing shall, at Lender’s option, constitute an Event of Default
hereunder.

 

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Section
3.30.         Patriot Act and OFAC Regulations. Borrower hereby
represents and warrants that each Borrower Party and each and every Person Affiliated with any Borrower Party or that to Borrower’s
knowledge has an economic interest in any Borrower Party has not, and at all times throughout the term of the Loan, including after
giving effect to any transfers of interests permitted pursuant to the Loan Documents, shall not: (i) be a “blocked”
Person listed in the Annex to Executive Order Nos. 12947, 13099 and 13224 and all modifications thereto or thereof (as used in
this Section only, the “Annex”); (ii) fail to be in full compliance with the requirements of the Patriot Act
and all other requirements contained in the rules and regulations of the Office of Foreign Assets Control, Department of the Treasury
(as used in this Section only, “OFAC”); (iii) fail to operate under policies, procedures and practices, if any,
that are (A) in compliance with the Patriot Act and OFAC rules and regulations and (B) available to Lender for Lender’s review
and inspection during normal business hours and upon reasonable prior notice; (iv) be in receipt of any notice from the Secretary
of State or the Attorney General of the United States or any other department, agency or office of the United States claiming a
violation or possible violation of the Patriot Act and/or OFAC rules and regulations; (v) be listed as a Specially Designated National
or as a “blocked” Person on any lists maintained by OFAC; (vi) be a Person who has been determined by competent authority
to be subject to any of the prohibitions contained in the Patriot Act; and (vii) be owned or controlled by or be acting for or
on behalf of any Person named in the Annex or any other OFAC list or any other Person who has been determined to be subject to
the prohibitions contained in the Patriot Act. Borrower covenants and agrees that in the event Borrower receives any notice that
any Borrower Party (or any of their respective beneficial owners or Affiliates) become listed on the Annex or any other list issued
by OFAC or is indicted, arraigned, or custodially detained on charges involving money laundering or predicate crimes to money laundering,
Borrower shall immediately notify Lender. It shall be an Event of Default hereunder if any Borrower Party or any other party to
any Loan Document becomes listed on any list issued by OFAC or is indicted, arraigned or custodially detained on charges involving
money laundering or predicate crimes to money laundering. All capitalized words and phrases and all defined terms used in the USA
Patriot Act of 2001, 107 Public Law 56 (October 26, 2001) and in other statutes and all orders, rules and regulations of the United
States government and its various executive departments, agencies and offices related to the subject matter of the Patriot Act
(collectively referred to in this Section only as the “Patriot Act”) and are incorporated into this Section.

 

Section
3.31.         Organizational Chart. The organizational chart attached
as Schedule 3.31 hereto (the “Organizational Chart”), relating to Borrower and certain Affiliates and
other parties, is true, complete and correct on and as of the date hereof.

 

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Section
3.32.         Bank Holding Company. Borrower is not a “bank
holding company” or a direct or indirect subsidiary of a “bank holding company” as defined in the Bank Holding
Company Act of 1956, as amended, and Regulation Y thereunder of the Board of Governors of the Federal Reserve System.

 

Section
3.33.         Intentionally Omitted.

 

Section
3.34.         Intentionally Omitted.

 

Section
3.35.         No Change in Facts or Circumstances; Disclosure.

 

All information submitted
by (or on behalf of) Borrower, Guarantor or Sponsor to Lender and in all financial statements, rent rolls, reports, certificates
and other documents submitted in connection with the Loan or in satisfaction of the terms thereof and all statements of fact made
by Borrower, Sponsor and/or Guarantor in this Agreement or in the other Loan Documents, are accurate, complete and correct in all
material respects. There has been no material adverse change in any condition, fact, circumstance or event that would make any
such information inaccurate, incomplete or otherwise misleading in any material respect or that otherwise have a Material Adverse
Effect. Borrower has disclosed to Lender all material facts and has not failed to disclose any material fact that could cause any
representation or warranty made herein to be materially misleading.

 

Borrower agrees that,
unless expressly provided otherwise, all of the representations and warranties of Borrower set forth in this Article 3 and elsewhere
in this Agreement and the other Loan Documents shall survive for so long as any portion of the Debt remains owing to Lender. All
representations, warranties, covenants and agreements made in this Agreement and in the other Loan Documents shall be deemed to
have been relied upon by Lender notwithstanding any investigation heretofore or hereafter made by Lender or on its behalf.

 

ARTICLE 4

 

BORROWER COVENANTS

 

From the date hereof
and until payment and performance in full of all obligations of Borrower under this Agreement, the Security Instrument, the Note
and the other Loan Documents or the earlier release of the lien of the Security Instrument (and all related obligations) in accordance
with the terms of this Agreement, the Security Instrument, the Note and the other Loan Documents, Borrower hereby covenants and
agrees with Lender that:

 

Section
4.1.          Existence. Borrower will continuously maintain
(a) its existence and shall not dissolve or permit its dissolution, (b) its rights to do business in the State and (c) its franchises
and trade names, if any.

 

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Section
4.2.          Legal Requirements.

 

(a)          Borrower
shall promptly comply and shall cause the Property to comply with all Legal Requirements affecting the Property or the use thereof
(which such covenant shall be deemed to (i) include Environmental Laws and (ii) require Borrower to keep all Permits in full force
and effect). Without limiting the generality of the foregoing, Borrower agrees to cause the removal of each of the violations set
forth on Schedule 4.2(a) with respect to the Property (and, upon such removal, Borrower shall promptly provide to Lender
evidence of such removal) by September 30, 2013 (the “Required Violation Removal Work”), provided,
however, that if Borrower is diligently pursuing the completion of the Required Violation Removal Work and has filed all
necessary paperwork for the completion of the Required Violation Removal Work, but is not able to complete such removal by September
30, 2013, Lender shall extend the deadline for completion of the Required Violation Removal Work. Failure on behalf of Borrower
to provide evidence reasonably acceptable to Lender of the removal of each violation set forth on Schedule 4.2(a) that
presents a life safety or health concern, or could potentially result in a Material Adverse Effect, within the applicable time
periods contained herein shall, at Lender’s sole and absolute discretion, constitute an Event of Default hereunder.

 

(b)          Borrower
shall from time to time, upon Lender’s request, provide Lender with evidence reasonably satisfactory to Lender that the Property
complies with all Legal Requirements or is exempt from compliance with Legal Requirements.

 

(c)          Borrower
shall give prompt notice to Lender of the receipt by Borrower of any notice related to a violation of any Legal Requirements and
of the commencement of any proceedings or investigations which relate to compliance with Legal Requirements.

 

(d)          After
prior written notice to Lender, Borrower, at its own expense, may contest by appropriate legal proceeding, promptly initiated and
conducted in good faith and with due diligence, the validity of any Legal Requirement, the applicability of any Legal Requirement
to Borrower or the Property or any alleged violation of any Legal Requirement, provided that (i) no Event of Default has occurred
and remains uncured; (ii) such proceeding shall be permitted under and be conducted in accordance with the provisions of any instrument
to which Borrower is subject and shall not constitute a default thereunder and such proceeding shall be permitted by and conducted
in accordance with all applicable Legal Requirements; (iii) neither the Property nor any part thereof or interest therein will
be in danger of being sold, forfeited, terminated, cancelled or lost; (iv) Borrower shall promptly upon final determination thereof
comply with any such Legal Requirement determined to be valid or applicable or cure any violation of any Legal Requirement; (v)
such proceeding shall suspend the enforcement of the contested Legal Requirement against Borrower or the Property; and (vi) Borrower
shall furnish such security as may be required in the proceeding, or as may be requested by Lender, to insure compliance with such
Legal Requirement, together with all interest and penalties payable in connection therewith. Lender may apply any such security
or part thereof, as necessary to cause compliance with such Legal Requirement at any time when, in the judgment of Lender, the
validity, applicability or violation of such Legal Requirement is finally established or the Property (or any part thereof or interest
therein) shall be in danger of being sold, forfeited, terminated, cancelled or lost.

 

Section
4.3.          Maintenance and Use of Property.

 

(a)          Borrower
shall cause the Property to be maintained in a good and safe condition and repair. The Improvements and the Personal Property shall
not be removed, demolished or materially altered (except for normal replacement of the Personal Property) without the consent of
Lender or as otherwise permitted pursuant to Section 4.21 hereof. Borrower shall perform (or shall cause to be performed) the prompt
repair, replacement and/or rebuilding of any part of the Property which may be destroyed by any casualty, or become damaged, worn
or dilapidated or which may be affected by any proceeding of the character referred to in Section 3.14 hereof and shall complete
and pay for (or cause the completion and payment for) any structure at any time in the process of construction or repair on the
Land.

 

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(b)          Borrower
shall operate the Property for the same uses as the Property is currently operated and Borrower shall not (i) change the use of
the Property (including, without limitation, changing the use of any floor of the Property as set forth in Section 3.17 hereof)
or (ii) initiate, join in, acquiesce in, or consent to any change in any private restrictive covenant, zoning law or other public
or private restriction, limiting or defining the uses which may be made of the Property or any part thereof ((i) and (ii), collectively,
a “Change of Use”). Notwithstanding the foregoing, Borrower may be permitted to a Change of Use, provided Borrower
must obtain the prior written consent of Lender to any such Change of Use, such consent not to be unreasonably withheld by Lender
provided the foregoing conditions shall satisfied:

 

(i)          Lender
shall have received at least sixty (60) days prior written notice requesting the Change of Use;

 

(ii)         if
the Loan is part of a Securitization, Lender shall have received confirmation in writing from the Rating Agencies to the effect
that such Change of Use will not in and of itself result in a withdrawal, qualification or downgrade of the respective ratings
in effect immediately prior to such Change in Use for the Securities, or any class thereof, issued in connection with the Securitization
that are then outstanding;

 

(iii)        no
Event of Default shall have occurred and be continuing and Borrower shall be in compliance in all material respects with all terms
and conditions set forth in this Agreement and in each Loan Document on Borrower’s part to be observed or performed. Lender
shall have received a certificate from Borrower confirming the foregoing, stating that the representations and warranties of Borrower
contained in this Agreement that are applicable to the Property are true and correct in all material respects on and as of the
date of the Change of Use, unless such certificate would be inaccurate, such certificate to be in form and substance satisfactory
to the Rating Agencies;

 

(iv)        Lender
shall have received valid certificates of insurance indicating that the requirements for the policies of insurance required for
the Property hereunder have been satisfied with respect to the Change of Use and evidence of the payment of all premiums payable
for the existing policy period;

 

(v)         Lender
shall have received a physical conditions report stating that the Property and its use (as changed by the Change of Use) comply
in all material respects with all applicable Legal Requirements (including, without limitation, zoning, subdivision and building
laws) and that the Property is in good condition and repair and free of damage or waste; and

 

(vi)        Lender
shall have received, in a form and substance acceptable to Lender in its sole and absolute discretion, a completion guaranty executed
by Guarantor for the benefit of Lender, guarantying any work undertaken in connection with the Change of Use and/or necessary or
advisable to comply with all applicable Legal Requirements (including, without limitation, zoning, subdivision and building laws).

 

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(c)          If
under applicable zoning provisions the use of all or any portion of the Property is or shall become a nonconforming use, Borrower
will not cause or permit the nonconforming use to be discontinued or the nonconforming Improvement to be abandoned without the
express written consent of Lender.

 

Section
4.4.          Waste. Borrower shall not commit or suffer any
intentional physical waste of the Property or make any change in the use of the Property which will in any way materially increase
the risk of fire or other hazard arising out of the operation of the Property, or take any action that might invalidate or give
cause for cancellation of any Policy, or do or permit to be done thereon anything that may in any way impair the value of the Property
or the security for the Loan. Borrower will not, without the prior written consent of Lender, permit any drilling or exploration
for or extraction, removal, or production of any minerals from the surface or the subsurface of the Property, regardless of the
depth thereof or the method of mining or extraction thereof.

 

Section
4.5.          Taxes and Other Charges.

 

(a)          Borrower
shall pay (or cause to be paid) all Taxes and Other Charges now or hereafter levied or assessed or imposed against the Property
or any part thereof as the same become due and payable; provided, however, prior to the occurrence and continuance of an Event
of Default, Borrower’s obligation to directly pay Taxes shall be suspended for so long as Borrower complies with the terms
and provisions of Section 8.6 hereof. Borrower shall furnish to Lender receipts for the payment of the Taxes and the Other Charges
prior to the date the same shall become delinquent (provided, however, that Borrower is not required to furnish such receipts for
payment of Taxes in the event that such Taxes have been paid by Lender pursuant to Section 8.6 hereof). Borrower shall not suffer
and shall promptly cause to be paid and discharged any lien or charge whatsoever which may be or become a lien or charge against
the Property, and shall promptly pay for all utility services provided to the Property.

 

(b)          After
prior written notice to Lender, Borrower, at its own expense, may contest (or permit to be contested) by appropriate legal proceeding,
promptly initiated and conducted in good faith and with due diligence, the amount or validity or application in whole or in part
of any Taxes or Other Charges, provided that (i) no Event of Default has occurred and remains uncured; (ii) such proceeding shall
be permitted under and be conducted in accordance with the provisions of any other instrument to which Borrower is subject and
shall not constitute a default thereunder and such proceeding shall be permitted by and conducted in accordance with all applicable
Legal Requirements; (iii) neither the Property nor any part thereof or interest therein will be in danger of being sold, forfeited,
terminated, canceled or lost; (iv) Borrower shall promptly upon final determination thereof pay the amount of any such Taxes or
Other Charges, together with all costs, interest and penalties which may be payable in connection therewith; (v) such proceeding
shall suspend the collection of such contested Taxes or Other Charges from the Property; and (vi) Borrower shall furnish such security
as may be required in the proceeding, or deliver to Lender such reserve deposits as may be requested by Lender, to insure the payment
of any such Taxes or Other Charges, together with all interest and penalties thereon. Lender may pay over any such cash deposit
or part thereof held by Lender to the claimant entitled thereto at any time when, in the judgment of Lender, the entitlement of
such claimant is established or the Property (or part thereof or interest therein) shall be in danger of being sold, forfeited,
terminated, canceled or lost or there shall be any danger of the lien of the Security Instrument being primed by any related lien.

 

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Section
4.6.          Litigation. Borrower shall give prompt written
notice to Lender of any litigation or governmental proceedings pending or threatened in writing against Borrower which might have
a Material Adverse Effect.

 

Section
4.7.          Access to Property. Borrower shall, subject to
the rights of Tenants, permit agents, representatives and employees of Lender to inspect the Property or any part thereof at reasonable
hours upon reasonable advance notice.

 

Section
4.8.          Notice of Default. Borrower shall promptly advise
Lender of any material adverse change in Borrower’s, Sponsor’s and/or Guarantor’s condition (financial or otherwise)
or of the occurrence of any Default or Event of Default of which Borrower has knowledge.

 

Section
4.9.          Cooperate in Legal Proceedings. Borrower shall
cooperate fully with Lender with respect to any proceedings before any court, board or other Governmental Authority which may in
any way affect the rights of Lender hereunder or any rights obtained by Lender under any of the Note, the Security Instrument or
the other Loan Documents and, in connection therewith, permit Lender, at its election, to participate in any such proceedings.

 

Section
4.10.         Performance by Borrower. Borrower hereby acknowledges
and agrees that Borrower’s observance, performance and fulfillment of each and every covenant, term and provision to be observed
and performed by Borrower under this Agreement, the Security Instrument, the Note and the other Loan Documents is a material inducement
to Lender in making the Loan.

 

Section
4.11.         Intentionally Omitted.

 

Section
4.12.         Books and Records.

 

(a)          Borrower
shall furnish to Lender:

 

(i)          quarterly
(and prior to a Securitization (if requested by Lender), monthly) certified rent rolls within ten (10) days after the end of each
calendar month or thirty (30) days after the end of each calendar quarter, as applicable;

 

(ii)         quarterly
(and prior to a Securitization (if requested by Lender), monthly) operating statements of the Property detailing the revenues received,
the expenses incurred and the components of Underwritable Cash Flow before and after Debt Service and major capital improvements
for the period of calculation and containing appropriate year-to-date information, within ten (10) days after the end of each calendar
month or thirty (30) days after the end of each calendar quarter, as applicable;

 

     45

    

    

 

(iii)        within
ninety (90) days after the close of each fiscal year of Borrower (A) with respect to Borrower, an annual balance sheet, profit
and loss statement, statement of cash flow, and statement of change in financial position (each of which shall not include any
Person other than Borrower) and (B) an annual operating statement of the Property (detailing the revenues received, the expenses
incurred and the components of Underwritable Cash Flow before and after Debt Service and major capital improvements for the period
of calculation and containing appropriate year-to-date information);

 

(iv)        by
no later than December 1 of each calendar year, an annual operating budget for the next succeeding calendar year presented on a
monthly basis consistent with the annual operating statement described above for the Property, including cash flow projections
for the upcoming year and all proposed capital replacements and improvements, which such budget shall (A) until the occurrence
and continuance of a Trigger Period, be provided to Lender for informational purposes and (B) after the occurrence and during the
continuance of a Trigger Period not take effect until approved by Lender (after such approval has been given in writing, such approved
budget shall be referred to herein as the “Approved Annual Budget”). Until such time that Lender approves a
proposed Annual Budget, (1) to the extent that an Approved Annual Budget does not exist for the immediately preceding calendar
year, all operating expenses of the Property for the then current calendar year shall be deemed extraordinary expenses of the Property
and shall be subject to Lender’s prior written approval (not to be unreasonably withheld or delayed) and (2) to the extent
that an Approved Annual Budget exists for the immediately preceding calendar year, such Approved Annual Budget shall apply to the
then current calendar year; provided, that such Approved Annual Budget shall be adjusted to reflect actual increases in Taxes,
Insurance Premiums and utilities expenses; and

 

(v)         by
no later than ten (10) days after and as of the end of each calendar month during the period prior to Securitization, and thereafter
by no later than thirty (30) days after and as of the end of each calendar quarter, (A) a calculation of the then current Debt
Service Coverage Ratio, together with such back-up information as Lender shall require and (B) after the occurrence and during
the continuance of a Trigger Period, a calculation of the amount of Excess Cash Flow generated by the Property for such period
together with such back-up information as Lender shall require.

 

(b)          Upon
request from Lender, Borrower shall furnish in a timely manner to Lender:

 

(i)          a
property management report for the Property, showing the number of inquiries made and/or rental applications received from tenants
or prospective tenants and deposits received from tenants and any other information requested by Lender, but no more frequently
than quarterly;

 

(ii)         an
accounting of all security deposits held in connection with any Lease of any part of the Property, including the name and identification
number of the accounts in which such security deposits are held, the name and address of the financial institutions in which such
security deposits are held and the name of the Person to contact at such financial institution, along with any authority or release
necessary for Lender to obtain information regarding such accounts directly from such financial institutions; and

 

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(iii) evidence
reasonably acceptable to Lender of compliance with the terms and conditions of Articles 5 and 9 hereof.

 

(c)          Borrower
shall, within ten (10) days of request, furnish Lender (and shall cause Sponsor and/or Guarantor to furnish to Lender) with such
other additional financial or management information (including State and Federal tax returns) as may, from time to time, be reasonably
required by Lender in form and substance satisfactory to Lender. Borrower shall furnish to Lender and its agents convenient facilities
for the examination and audit of any such books and records.

 

(d)          Borrower
agrees that (i) Borrower shall keep adequate books and records of account and (ii) all Required Financial Items (defined below)
to be delivered to Lender pursuant to Section 4.12 shall: (A) be complete and correct; (B) present fairly the financial condition
of the applicable Person; (C) disclose all liabilities that are required to be reflected or reserved against; (D) be prepared (1)
in the form required by Lender and certified by a Responsible Officer of Borrower (2) in hardcopy and electronic formats and
(3) in accordance with the Approved Accounting Method; and (E) upon request of Lender, be audited by an independent certified public
accountant acceptable to Lender. Borrower shall be deemed to warrant and represent that, as of the date of delivery of any such
financial statement, there has been no material adverse change in financial condition, nor have any assets or properties been sold,
transferred, assigned, mortgaged, pledged or encumbered since the date of such financial statement except as disclosed by Borrower
in a writing delivered to Lender. Borrower agrees that all Required Financial Items shall not contain any misrepresentation or
omission of a material fact.

 

(e)          Borrower
acknowledges the importance to Lender of the timely delivery of each of the items required by this Section 4.12 and the other financial
reporting items required by this Agreement (each, a “Required Financial Item” and, collectively, the
“Required Financial Items”). In the event Borrower fails to deliver to Lender any of the Required Financial
Items within fifteen (15) calendar days of the giving of notice by Lender to Borrower of Borrower’s failure to deliver within
the time frame specified herein (each such event, a “Reporting Failure”), the same shall, at Lender’s
option, constitute an immediate Event of Default hereunder and, without limiting Lender’s other rights and remedies with
respect to the occurrence of such an Event of Default, Borrower shall pay to Lender the sum of $1,000.00 per occurrence for each
Reporting Failure. It shall constitute a further Event of Default hereunder if any such payment is not received by Lender within
thirty (30) days after the date on which demand for such payment was made, and Lender shall be entitled to the exercise of all
of its rights and remedies provided hereunder.

 

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Section
4.13.         Estoppel Certificates.

 

(a)          After
request by Lender, Borrower, within ten (10) days of such request, but no more often than once in any twelve (12) month period
other than in connection with a Secondary Market Transaction, shall furnish Lender or any proposed assignee with a statement, duly
acknowledged and certified, setting forth (i) the original principal amount of the Loan, (ii) the unpaid principal amount of the
Loan, (iii) the rate of interest of the Loan, (iv) the terms of payment and maturity date of the Loan, (v) the date installments
of interest and/or principal were last paid, (vi) that, except as provided in such statement, no Event of Default exists, (vii)
that this Agreement, the Note, the Security Instrument and the other Loan Documents are valid, legal and binding obligations and
have not been modified or if modified, giving particulars of such modification, (viii) whether any offsets or defenses exist against
the obligations secured hereby and, if any are alleged to exist, a detailed description thereof, (ix) that all Leases are in full
force and effect and have not been modified (or if modified, setting forth all modifications), (x) the date to which the Rents
thereunder have been paid pursuant to the Leases, (xi) whether or not, to the best knowledge of Borrower, any of the lessees under
the Leases are in default under the Leases, and, if any of the lessees are in default, setting forth the specific nature of all
such defaults, (xii) the amount of security deposits held by Borrower under each Lease and that such amounts are consistent with
the amounts required under each Lease, and (xiii) as to any other matters reasonably requested by Lender and reasonably related
to the Leases, the obligations created and evidenced hereby and by the Security Instrument or the Property.

 

(b)          Borrower
shall use commercially reasonable efforts to deliver to Lender, promptly upon request but no more than often than once in any twelve
(12) month period other than in connection with a Secondary Market Transaction, duly executed estoppel certificates from any one
or more non-residential Tenants as required by Lender attesting to such facts regarding the Lease as Lender may require, including,
but not limited to, attestations that each Lease covered thereby is in full force and effect with no defaults thereunder on the
part of any party, that none of the Rents have been paid more than one month in advance, except as security, no free rent or other
concessions are due lessee and that the lessee claims no defense or offset against the full and timely performance of its obligations
under the Lease.

 

Section
4.14.         Leases and Rents.

 

(a)          All
Leases and all renewals of Leases executed after the date hereof shall (i) provide for rental rates comparable to existing
local market rates for similar properties, (ii) be on commercially reasonable terms with unaffiliated, third parties (unless
otherwise consented by Lender), (iii) provide that such Lease is subordinate to the Security Instrument and that the lessee will
attorn to Lender and any purchaser at a foreclosure sale and (iv) not contain any terms which would have a Material Adverse Effect.
All Major Leases and all renewals, amendments and modifications thereof executed after the date hereof shall be subject to Lender’s
prior approval, which approval shall not be unreasonably withheld or delayed.

 

(b)          Borrower
(i) shall observe and perform the obligations imposed upon the lessor under the Leases in a commercially reasonable manner; (ii)
shall enforce the terms, covenants and conditions contained in the Leases upon the part of the lessee thereunder to be observed
or performed in a commercially reasonable manner, provided, however, Borrower shall not terminate or accept a surrender of a Major
Lease without Lender’s prior approval (except if the applicable Tenant is in default thereunder beyond all applicable notice
and cure periods, and Borrower has provided Lender with prior written notice); (iii) shall not collect any of the Rents more than
one (1) month in advance (other than security deposits); (iv) shall not execute any assignment of lessor’s interest in the
Leases or the Rents (except as contemplated by the Loan Documents); (v) shall not, without Lender’s prior written consent
(not to be unreasonably withheld or delayed), alter, modify or change any Lease so as to change the amount of or payment date for
rent, change the expiration date, grant any option for additional space or term, materially reduce the obligations of the lessee
or increase the obligations of lessor (in each case, to the extent the same would, individually or in the aggregate, (A) cause
any such Lease to violate 4.14(a)(i) through (iii) above or (B) have a Material Adverse Effect); and (vi) shall hold all security
deposits under all Leases in accordance with Legal Requirements. Upon request, Borrower shall furnish Lender with executed copies
of all Leases.

 

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(c)          Notwithstanding
anything contained herein to the contrary, Borrower shall not willfully withhold from Lender any information regarding renewal,
extension, amendment, modification, waiver of provisions of, termination, rental reduction of, surrender of space of, or shortening
of the term of, any Lease during the term of the Loan. Borrower further agrees to provide Lender with written notice of a non-residential
Tenant “going dark” under such Tenant’s Lease within five (5) Business Days after Borrower obtaining actual knowledge
that such Tenant “goes dark.”

 

(d)          Borrower
shall notify Lender in writing, within two (2) Business Days following receipt thereof, of Borrower’s receipt of any early
termination fee or payment or other termination fee or payment paid by any Tenant under any Lease, and Borrower further covenants
and agrees that Borrower shall hold any such termination fee or payment in trust for the benefit of Lender and that any use of
such termination fee or payment shall be subject in all respects to Lender’s prior written consent in Lender’s sole
discretion (which consent may include, without limitation, a requirement by Lender that such termination fee or payment be placed
in reserve with Lender to be disbursed by Lender for tenant improvement and leasing commission costs with respect to the Property
and/or for payment of the Debt or otherwise in connection with the Loan evidenced by the Note and/or the Property, as so determined
by Lender). The foregoing consent right of Lender (including, without limitation, any Reserve requirement) shall not be subject
to any “cap” or similar limit on the amount of Reserve Funds held by Lender (including, without limitation, any “cap”
or similar limit relating to the Leasing Reserve Funds).

 

(e)          To
the extent that the Deemed Approval Requirements are fully satisfied in connection with any Borrower request for Lender consent
under this Section and Lender thereafter fails to respond, Lender’s approval shall be deemed given with respect to the matter
for which approval was requested.

 

Section
4.15.         Management Agreement.

 

(a)          In
the event Borrower enters into a Management Agreement, Borrower shall (i) diligently and promptly perform, observe and enforce
all of the terms, covenants and conditions of the Management Agreement on the part of Borrower to be performed, observed and enforced
to the end that all things shall be done which are necessary to keep unimpaired the rights of Borrower under the Management Agreement,
(ii) promptly notify Lender of any default under the Management Agreement; (iii) promptly deliver to Lender a copy of any notice
of default or other material notice received by Borrower under the Management Agreement; (iv) promptly give notice to Lender of
any notice or information that Borrower receives which indicates that Manager is terminating the Management Agreement or that Manager
is otherwise discontinuing its management of the Property; and (v) promptly enforce the performance and observance of all of the
covenants required to be performed and observed by Manager under the Management Agreement.

 

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(b)          In
the event Borrower enters into a Management Agreement, Borrower shall not, without the prior written consent of Lender, (i) surrender,
terminate or cancel the Management Agreement, consent to any assignment of the Manager’s interest under the Management Agreement
or otherwise replace Manager or enter into any other management agreement with respect to the Property; provided, however, that
Borrower may replace Manager and/or consent to the assignment of Manager’s interest under the Management Agreement, in each
case, in accordance with the applicable terms and conditions hereof and of the other Loan Documents; (ii) reduce or consent to
the reduction of the term of the Management Agreement; (iii) increase or consent to the increase of the amount of any charges under
the Management Agreement; or (iv) otherwise modify, change, alter or amend, in any material respect, or waive or release any of
its material rights and remedies under, the Management Agreement in any material respect.

 

(c)          In
the event Borrower enters into a Management Agreement, and if Borrower shall default in the performance or observance of any material
term, covenant or condition of such Management Agreement on the part of Borrower to be performed or observed, then, without limiting
the generality of the other provisions of this Agreement, and without waiving or releasing Borrower from any of its obligations
hereunder, Lender shall have the right, but shall be under no obligation, to pay any sums and to perform any act or take any action
as may be appropriate to cause all the terms, covenants and conditions of the Management Agreement on the part of Borrower to be
performed or observed to be promptly performed or observed on behalf of Borrower, to the end that the rights of Borrower in, to
and under the Management Agreement shall be kept unimpaired and free from default. Lender and any Person designated by Lender shall
have, and are hereby granted, the right to enter upon the Property at any time and from time to time for the purpose of taking
any such action. If Manager shall deliver to Lender a copy of any notice sent to Borrower of default under the Management Agreement,
such notice shall constitute full protection to Lender for any action taken or omitted to be taken by Lender in good faith, in
reliance thereon. Borrower shall notify Lender if Manager sub-contracts to a third party or an Affiliate any or all of its management
responsibilities under the Management Agreement.

 

(d)          In
the event Borrower enters into a Management Agreement, Borrower shall, thereafter from time to time, use its best efforts to obtain
from Manager under the Management Agreement such certificates of estoppel with respect to compliance by Borrower with the terms
of the Management Agreement as may be requested by Lender. Borrower shall exercise each individual option, if any, to extend or
renew the term of the Management Agreement upon demand by Lender made at any time within one (1) year of the last day upon which
any such option may be exercised, and Borrower hereby expressly authorizes and appoints Lender its attorney-in-fact to exercise
any such option in the name of and upon behalf of Borrower, which power of attorney shall be irrevocable and shall be deemed to
be coupled with an interest.

 

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(e)          In
the event Borrower enters into a Management Agreement, and in the event that such Management Agreement is scheduled to expire at
any time during the term of the Loan, Borrower shall submit to Lender by no later than 60 days prior to such expiration a draft
replacement management agreement for approval in accordance with the terms and conditions hereof. Borrower’s failure to submit
the same within such time-frame shall, at Lender’s option, constitute an immediate Event of Default.

 

(f)          Borrower
shall have the right to replace any Manager or consent to the assignment of any Manager’s rights under a Management Agreement,
if any, in each case, to the extent that (i) no Event of Default has occurred and is continuing, (ii) Lender’s receives at
least sixty (60) days prior written notice of the same and (iii) the applicable New Manager is a Qualified Manager engaged pursuant
to a Qualified Management Agreement. In the event Borrower enters into a Management Agreement, Manager shall not (and Borrower
shall not permit Manager to) resign as Manager or otherwise cease managing the Property until a New Manager is engaged to manage
the Property in accordance with the applicable terms and conditions hereof and of the other Loan Documents.

 

(g)          Without
limitation of the foregoing, (i) upon the occurrence of an Event of Default; or (ii) if Borrower enters into a Management Agreement
and such Management Agreement is terminated or expires pursuant to the Assignment of Management Agreement, ceases to be in full
force or effect or is for any other reason no longer in effect (including, without limitation, in connection with any Sale or Pledge);
then, in either case, Lender, at its option, may require Borrower to engage, in accordance with the terms and conditions set forth
herein, a New Manager (or in the event no Management Agreement is then in effect, a Manager) to manage the Property, which such
New Manager (or Manager, as applicable) shall be a Qualified Manager and shall be engaged pursuant to a Qualified Management Agreement.

 

(h)          As
conditions precedent to any engagement of a Manager or New Manager hereunder, (i) Manager or New Manager, as applicable, and Borrower
shall execute an Assignment of Management Agreement in the form required by Lender (with such changes thereto as may be required
by the Rating Agencies) and (ii) to the extent that such Manager or New Manager is an Affiliated Manager, Borrower shall deliver
to Lender a New Non- Consolidation Opinion with respect to such Manager or New Manager and such Management Agreement.

 

(i)          Any
sums expended by Lender pursuant to this Section shall bear interest at the Default Rate from the date such cost is incurred to
the date of payment to Lender, shall be deemed to constitute a portion of the Debt, shall be secured by the lien of the Security
Instrument and the other Loan Documents and shall be immediately due and payable upon demand by Lender therefor.

 

(j)          Notwithstanding
anything to the contrary contained herein, in no event shall Borrower (i) enter into a Management Agreement other than with a Qualified
Manager pursuant to a Qualified Management Agreement or (ii) pay, or permit any other Person to pay, any fees in connection with
the management of the Property unless such fees are required under a Management Agreement.

 

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Section 4.16.         Payment
for Labor and Materials.

 

(a)          Subject
to Section 4.16(b) below, Borrower will promptly pay (or cause to be paid) when due all bills and costs for labor, materials, and
specifically fabricated materials incurred in connection with the Property (any such bills and costs, a “Work Charge”)
and never permit to exist in respect of the Property or any part thereof any lien or security interest, even though inferior
to the liens and the security interests hereof, and in any event never permit to be created or exist in respect of the Property
or any part thereof any other or additional lien or security interest other than the liens or security interests created hereby
and by the Security Instrument, except for the Permitted Encumbrances.

 

(b)          After
prior written notice to Lender, Borrower, at its own expense, may contest by appropriate legal proceeding, promptly initiated and
conducted in good faith and with due diligence, the validity of any Work Charge, the applicability of any Work Charge to Borrower
or to the Property or any alleged non-payment of any Work Charge and defer paying the same, provided that (i) no Event of Default
has occurred and is continuing; (ii) such proceeding shall be permitted under and be conducted in accordance with the provisions
of any instrument to which Borrower is subject and shall not constitute a default thereunder and such proceeding shall be conducted
in accordance with all applicable Legal Requirements; (iii) neither the Property nor any part thereof or interest therein will
be in imminent danger of being sold, forfeited, terminated, cancelled or lost; (iv) Borrower shall promptly upon final determination
thereof pay (or cause to be paid) any such contested Work Charge determined to be valid, applicable or unpaid; (v) such proceeding
shall suspend the collection of such contested Work Charge from the Property or Borrower shall have paid the same (or shall have
caused the same to be paid) under protest; and (vi) Borrower shall furnish (or cause to be furnished) such security as may be required
in the proceeding, or as may be reasonably requested by Lender, to insure payment of such Work Charge, together with all interest
and penalties payable in connection therewith. Lender may apply any such security or part thereof, as necessary to pay for such
Work Charge at any time when, in the judgment of Lender, the validity, applicability or non-payment of such Work Charge is finally
established or the Property (or any part thereof or interest therein) shall be in present danger of being sold, forfeited, terminated,
cancelled or lost.

 

Section
4.17.         Performance of Other Agreements. Borrower shall observe
and perform each and every term to be observed or performed by Borrower pursuant to the terms of any agreement or recorded instrument
affecting or pertaining to the Property, or given by Borrower to Lender for the purpose of further securing the Debt and any amendments,
modifications or changes thereto.

 

Section
4.18.         Debt Cancellation. Borrower shall not cancel or otherwise
forgive or release any claim or debt (other than termination of Leases in accordance herewith) owed to Borrower by any Person,
except for adequate consideration and in the ordinary course of Borrower’s business.

 

Section
4.19.         ERISA.

 

(a)          Borrower
shall not engage in any transaction which would cause any obligation, or action taken or to be taken, hereunder (or the exercise
by Lender of any of its rights hereunder or under the other Loan Documents) to be a non-exempt (under a statutory or administrative
class exemption) prohibited transaction under ERISA.

 

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(b)          Borrower
further covenants and agrees to deliver to Lender such certifications or other evidence from time to time throughout the term of
the Security Instrument, as requested by Lender in its reasonable discretion, that (i) Borrower is not an “employee benefit
plan” as defined in Section 3(3) of ERISA, or other retirement arrangement, which is subject to Title I of ERISA or Section
4975 of the IRS Code, or a “governmental plan” within the meaning of Section 3(32) of ERISA; (ii) Borrower is not subject
to state statutes regulating investments and fiduciary obligations with respect to governmental plans; and (iii) one or more of
the following circumstances is true:

 

(A)         Equity
interests in Borrower are publicly offered securities, within the meaning of 29 C.F.R.§ 2510.3 101(b)(2);

 

(B)         Less
than 25 percent of each outstanding class of equity interests in Borrower are held by “benefit plan investors” within
the meaning of 29 C.F.R.§ 2510.3 101(f)(2); or

 

(C)         Borrower
qualifies as an “operating company” or a “real estate operating company” within the meaning of 29 C.F.R
§ 2510.3 101I or (e) or an investment company registered under The Investment Company Act of 1940, as amended.

 

Section
4.20.         No Joint Assessment. Borrower shall not suffer, permit
or initiate the joint assessment of the Property with (a) any other real property constituting a tax lot separate from the Property,
or (b) any portion of the Property which may be deemed to constitute personal property, or any other procedure whereby the lien
of any taxes which may be levied against such personal property shall be assessed or levied or charged to the Property.

 

Section
4.21.         Alterations. Lender’s prior approval shall be
required in connection with any alterations to any Improvements (a) that may have a Material Adverse Effect, (b) the cost of which
(including any related alteration, improvement or replacement) is reasonably anticipated to exceed the Alteration Threshold or
(c) that are structural in nature and could potentially result in a Material Adverse Effect, which approval may be granted or withheld
in Lender’s sole discretion. If the total unpaid amounts incurred and to be incurred with respect to any alterations to the
Improvements shall at any time exceed the Alteration Threshold, Borrower shall promptly deliver to Lender as security for the payment
of such amounts and as additional security for Borrower’s obligations under the Loan Documents any of the following: (i)
cash, (ii) U.S. Obligations, (iii) other security acceptable to Lender, (provided that Lender shall have received a Rating Agency
Confirmation as to the form and issuer of same), or (iv) a completion bond (provided that Lender shall have received a Rating Agency
Confirmation as to the form and issuer of same). Such security shall be in an amount equal to the excess of the total unpaid amounts
incurred and to be incurred with respect to such alterations to the Improvements over the Alteration Threshold.

 

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Section
4.22.         Permanent Certificate of Occupancy. Borrower shall
(a) maintain the TCO at all times until a new, valid, permanent certificate of occupancy is obtained for the Property (the “PCO”),
(b) exercise good faith and commercially reasonable efforts to complete (or cause to be completed) all PCO Issuance Requirements
and to cause a PCO to be obtained for the Property and (c) cause a copy of the PCO to be delivered to Lender upon issuance of the
PCO. Borrower further covenants throughout the Loan term to continue to renew any then applicable TCO prior to its expiration date
and to deliver a renewal TCO to Lender promptly upon receipt thereof. The terms and provisions of this Section shall not be deemed
to limit the other terms and conditions hereof or of the other Loan Documents.

 

ARTICLE 5

 

ENTITY COVENANTS

 

Section
5.1.          Single Purpose Entity/Separateness.

 

(a)          Borrower
has not and will not:

 

(i)          engage
in any business or activity other than the ownership, operation and maintenance of the Property, and activities incidental thereto;

 

(ii)         acquire
or own any assets other than (A) the Property, and (B) such incidental Personal Property as may be necessary for the ownership,
leasing, maintenance and operation of the Property;

 

(iii)        merge
into or consolidate with any Person, or dissolve, terminate, liquidate in whole or in part, transfer or otherwise dispose of all
or substantially all of its assets or change its legal structure;

 

(iv)        fail
to observe all organizational formalities, or fail to preserve its existence as an entity duly organized, validly existing and
in good standing (if applicable) under the applicable Legal Requirements of the jurisdiction of its organization or formation,
or amend, modify, terminate or fail to comply with the provisions of its organizational documents;

 

(v)         own
any subsidiary, or make any investment in, any Person (other than, with respect to any SPE Component Entity, in Borrower);

 

(vi)        commingle
its funds or assets with the funds or assets of any other Person;

 

(vii)       incur
any Indebtedness, secured or unsecured, direct or contingent (including guaranteeing any obligation), other than (A) the Debt,
(B) trade and operational indebtedness incurred in the ordinary course of business with trade creditors, provided such indebtedness
is (1) unsecured, (2) not evidenced by a note, (3) on commercially reasonable terms and conditions, and (4) due not more than ninety
(90) days past the date incurred and paid on or prior to such date, and/or (C) Permitted Equipment Leases; provided however, the
aggregate amount of the indebtedness described in (B) and (C) shall not exceed at any time two percent (3%) of the outstanding
principal amount of the Debt. No Indebtedness other than the Debt may be secured (subordinate or pari passu) by the Property;

 

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(viii)      fail
to maintain all of its books, records, financial statements and bank accounts separate from those of any other Person (including,
without limitation, any Affiliates). Borrower’s assets have not and will not be listed as assets on the financial statement
of any other Person; provided, however, that Borrower’s assets may be included in a consolidated financial statement of its
Affiliates provided that (i)appropriate notation shall be made on such consolidated financial statements to indicate the separateness
of Borrower and such Affiliates and to indicate that Borrower’s assets and credit are not available to satisfy the debts
and other obligations of such Affiliates or any other Person and (ii) such assets shall be listed on Borrower’s own separate
balance sheet. Borrower has maintained and will maintain its books, records, resolutions and agreements as official records;

 

(ix)         enter
into any contract or agreement with any general partner, member, shareholder, principal or Affiliate, except upon terms and conditions
that are intrinsically fair and substantially similar to those that would be available on an arm’s-length basis with unaffiliated
third parties;

 

(x)          maintain
its assets in such a manner that it will be costly or difficult to segregate, ascertain or identify its individual assets from
those of any other Person;

 

(xi)         assume
or guaranty the debts of any other Person, hold itself out to be responsible for the debts of any other Person, or otherwise pledge
its assets for the benefit of any other Person or hold out its credit as being available to satisfy the obligations of any other
Person;

 

(xii)        make
any loans or advances to any Person;

 

(xiii)       fail
to file its own tax returns (unless prohibited by applicable Legal Requirements from doing so);

 

(xiv)      fail
to (A) hold itself out to the public and identify itself, in each case, as a legal entity separate and distinct from any other
Person and not as a division or part of any other Person, (B) conduct its business solely in its own name, (C) hold its assets
in its own name or (D) correct any known misunderstanding regarding its separate identity;

 

(xv)       fail
to maintain adequate capital for the normal obligations reasonably foreseeable in a business of its size and character and in light
of its contemplated business operations (but only to the extent there exists sufficient cash flow from the Property to do so);

 

(xvi)      without
the prior unanimous written consent of all of its partners or members, as applicable, and the prior written consent of each Independent
Director (regardless of whether such Independent Director is engaged at the Borrower or SPE Component Entity level), (a) file or
consent to the filing of any petition, either voluntary or involuntary, to take advantage of any Creditors Rights Laws, (b) seek
or consent to the appointment of a receiver, liquidator or any similar official, (c) take any action that might cause such entity
to become insolvent, or (d) make an assignment for the benefit of creditors;

 

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(xvii)     fail
to allocate shared expenses (including, without limitation, shared office space) or fail to use separate stationery, invoices and
checks;

 

(xviii)    fail
to pay its own liabilities (including, without limitation, salaries of its own employees) from its own funds or fail to maintain
a sufficient number of employees in light of its contemplated business operations (in each case to the extent there exists sufficient
cash flow from the Property to do so);

 

(xix)       acquire
obligations or securities of its partners, members, shareholders or other Affiliates, as applicable;

 

(xx)        identify
its partners, members, shareholders or other Affiliates, as applicable, as a division or part of it; or

 

(xxi) violate
or cause to be violated the assumptions made with respect to Borrower and its principals in the Non-Consolidation Opinion or in
any New Non-Consolidation Opinion.

 

(b)          If
Borrower is a partnership or limited liability company (other than an Acceptable LLC), each general partner (in the case of a partnership)
and at least one member (in the case of a limited liability company) of Borrower, as applicable, shall be a corporation or an Acceptable
LLC (each an “SPE Component Entity”) whose sole asset is its interest in Borrower. Each SPE Component Entity
(i) will at all times comply with each of the covenants, terms and provisions contained in Section 5.1(a)(iii) – (vi) (inclusive)
and (viii) – (xxi) (inclusive) and, if such SPE Component Entity is an Acceptable LLC, Section 5.1(c) and (d) hereof, as
if such representation, warranty or covenant was made directly by such SPE Component Entity; (ii) will not engage in any business
or activity other than owning an interest in Borrower; (iii) will not acquire or own any assets other than its partnership, membership,
or other equity interest in Borrower; (iv) will at all times continue to own no less than a 0.5% direct equity ownership interest
in Borrower; (v) will not incur any debt, secured or unsecured, direct or contingent (including guaranteeing any obligation); and
(vi) will cause Borrower to comply with the provisions of this Section 5.1.

 

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(c)          In
the event Borrower or the SPE Component Entity is an Acceptable LLC, the limited liability company agreement of Borrower or the
SPE Component Entity (as applicable) (the “LLC Agreement”) shall provide that (i) upon the occurrence of any
event that causes the last remaining member of Borrower or the SPE Component Entity (as applicable) (“Member”)
to cease to be the member of Borrower or the SPE Component Entity (as applicable) (other than (A) upon an assignment by Member
of all of its limited liability company interest in Borrower or the SPE Component Entity (as applicable) and the admission of the
transferee in accordance with the Loan Documents and the LLC Agreement, or (B) the resignation of Member and the admission of an
additional member of Borrower or the SPE Component Entity (as applicable) in accordance with the terms of the Loan Documents and
the LLC Agreement), any person acting as Independent Director of Borrower or the SPE Component Entity (as applicable) shall, without
any action of any other Person and simultaneously with the Member ceasing to be the member of Borrower or the SPE Component Entity
(as applicable) automatically be admitted to Borrower or the SPE Component Entity (as applicable) as a member with a 0% economic
interest (“Special Member”) and shall continue Borrower or the SPE Component Entity (as applicable) without
dissolution and (ii) Special Member may not resign from Borrower or the SPE Component Entity (as applicable) or transfer its rights
as Special Member unless (A) a successor Special Member has been admitted to Borrower or the SPE Component Entity (as applicable)
as a Special Member in accordance with requirements of Delaware or Maryland law (as applicable) and (B) after giving effect
to such resignation or transfer, there remains at least one Independent Director of the SPE Component Entity or Borrower (as applicable)
in accordance with Section 5.2 below. The LLC Agreement shall further provide that (i) Special Member shall automatically cease
to be a member of Borrower or the SPE Component Entity (as applicable) upon the admission to Borrower or the SPE Component Entity
(as applicable) of the first substitute member, (ii) Special Member shall be a member of Borrower or the SPE Component Entity (as
applicable) that has no interest in the profits, losses and capital of Borrower or the SPE Component Entity (as applicable) and
has no right to receive any distributions of the assets of Borrower or the SPE Component Entity (as applicable), (iii) pursuant
to the applicable provisions of the limited liability company act of the State of Delaware or Maryland (as applicable, the “Act”),
Special Member shall not be required to make any capital contributions to Borrower or the SPE Component Entity (as applicable)
and shall not receive a limited liability company interest in Borrower or the SPE Component Entity (as applicable), (iv) Special
Member, in its capacity as Special Member, may not bind Borrower or the SPE Component Entity (as applicable) and (v) except as
required by any mandatory provision of the Act, Special Member, in its capacity as Special Member, shall have no right to vote
on, approve or otherwise consent to any action by, or matter relating to, Borrower or the SPE Component Entity (as applicable)
including, without limitation, the merger, consolidation or conversion of Borrower or the SPE Component Entity (as applicable);
provided, however, such prohibition shall not limit the obligations of Special Member, in its capacity as Independent Director,
to vote on such matters required by the Loan Documents or the LLC Agreement. In order to implement the admission to Borrower or
the SPE Component Entity (as applicable) of Special Member, Special Member shall execute a counterpart to the LLC Agreement. Prior
to its admission to Borrower or the SPE Component Entity (as applicable) as Special Member, Special Member shall not be a member
of Borrower or the SPE Component Entity (as applicable), but Special Member may serve as an Independent Director of Borrower or
the SPE Component Entity (as applicable).

 

(d)          The
LLC Agreement shall further provide that (i) upon the occurrence of any event that causes the Member to cease to be a member of
Borrower or the SPE Component Entity (as applicable) to the fullest extent permitted by law, the personal representative of Member
shall, within ninety (90) days after the occurrence of the event that terminated the continued membership of Member in Borrower
or the SPE Component Entity (as applicable) agree in writing (A) to continue Borrower or the SPE Component Entity (as applicable)
and (B) to the admission of the personal representative or its nominee or designee, as the case may be, as a substitute member
of Borrower or the SPE Component Entity (as applicable) effective as of the occurrence of the event that terminated the continued
membership of Member in Borrower or the SPE Component Entity (as applicable), (ii)any action initiated by or brought against Member
or Special Member under any Creditors Rights Laws shall not cause Member or Special Member to cease to be a member of Borrower
or the SPE Component Entity (as applicable) and upon the occurrence of such an event, the business of Borrower or the SPE Component
Entity (as applicable) shall continue without dissolution and (iii) each of Member and Special Member waives any right it might
have to agree in writing to dissolve Borrower or the SPE Component Entity (as applicable) upon the occurrence of any action initiated
by or brought against Member or Special Member under any Creditors Rights Laws, or the occurrence of an event that causes Member
or Special Member to cease to be a member of Borrower or the SPE Component Entity (as applicable).

 

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Section
5.2.          Independent Director.

 

(a)          The
organizational documents of Borrower (to the extent Borrower is a corporation or an Acceptable LLC) or the SPE Component Entity,
as applicable, shall provide that at all times there shall be at least one duly appointed independent director or manager of such
entity (each, an “Independent Director”) (unless two (2) Independent Directors are required by Lender in connection
with a Secondary Market Transaction, in which case two (2) Independent Directors shall be appointed and all references to a single
Independent Director shall be deemed to mean two (2) Independent Directors for all purposes hereunder) who shall (I) not have
been at the time of each such individual’s initial appointment, and shall not have been at any time during the preceding
five years, and shall not be at any time while serving as Independent Director, either (i) a shareholder (or other equity owner)
of, or an officer, director (other than in its capacity as Independent Director), partner, member or employee of, Borrower or any
of its respective shareholders, partners, members, subsidiaries or Affiliates, (ii) a customer of, or supplier to, or other Person
who derives any of its purchases or revenues from its activities with, Borrower or any of its respective shareholders, partners,
members, subsidiaries or Affiliates, (iii) a Person who Controls or is under common Control with any such shareholder, officer,
director, partner, member, employee supplier, customer or other Person, or (iv) a member of the immediate family of any such shareholder,
officer, director, partner, member, employee, supplier, customer or other Person (II) shall have, at the time of their appointment,
had at least three (3) years experience in serving as an independent director and (Ill) be employed by, in good standing with and
engaged by Borrower in connection with, in each case, an Approved ID Provider.

 

(b)          The
organizational documents of Borrower and the SPE Component Entity shall further provide that (I) the board of directors or managers
of Borrower and the SPE Component Entity and the constituent equity owners of such entities (such constituent equity owners, the
“Constituent Members”) shall not take any action which, under the terms of any organizational documents of Borrower
or the SPE Component Entity, requires an unanimous vote of the Constituent Members or of the board of directors or managers of
Borrower or the SPE Component Entity unless, in each case, at the time of such action there shall be at least one Independent Director
engaged as provided by the terms hereof and such Independent Director vote in favor of such action; (II) any resignation, removal
or replacement of any Independent Director shall not be effective without (1) prior written notice to Lender and the Rating
Agencies (which such prior written notice must be given on the earlier of five (5) days or three (3) Business Days prior to the
applicable resignation, removal or replacement) and (2) evidence that the replacement Independent Director satisfies the applicable
terms and conditions hereof and of the applicable organizational documents (which such evidence must accompany the aforementioned
notice); (III) to the fullest extent permitted by applicable law, including Section 18-1101(c) of the Act and notwithstanding any
duty otherwise existing at law or in equity, the Independent Director shall consider only the interests of the Constituent Members
and Borrower and any SPE Component Entity (including Borrower’s and any SPE Component Entity’s respective creditors)
in acting or otherwise voting on the matters provided for herein and in Borrower’s and SPE Component Entity’s organizational
documents (which such fiduciary duties to the Constituent Members and Borrower and any SPE Component Entity (including Borrower’s
and any SPE Component Entity’s respective creditors), in each case, shall be deemed to apply solely to the extent of their
respective economic interests in Borrower or SPE Component Entity (as applicable) exclusive of (x) all other interests (including,
without limitation, all other interests of the Constituent Members), (y) the interests of other Affiliates of the Constituent Members,
Borrower and SPE Component Entity and (z) the interests of any group of Affiliates of which the Constituent Members, Borrower or
SPE Component Entity is a part)); (IV) other than as provided in subsection (III) above, the Independent Director shall not have
any fiduciary duties to any Constituent Members, any directors of Borrower or SPE Component Entity or any other Person; (V) the
foregoing shall not eliminate the implied contractual covenant of good faith and fair dealing under applicable law; and (VI) to
the fullest extent permitted by applicable law, including Section 18-1101(e) of the Act, an Independent Director shall not be liable
to Borrower, SPE Component Entity, any Constituent Member or any other Person for breach of contract or breach of duties (including
fiduciary duties), unless the Independent Director acted in bad faith or engaged in willful misconduct.

 

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Section
5.3.          Change of Name, Identity or Structure. Borrower
shall not change (or permit to be changed) Borrower’s or the SPE Component Entity’s (a) name, (b) identity (including
its trade name or names), (c) principal place of business set forth on the first page of this Agreement or, (d) if not an individual,
Borrower’s or the SPE Component Entity’s corporate, partnership or other structure, without notifying Lender of such
change in writing at least thirty (30) days prior to the effective date of such change and, in the case of a change in Borrower’s
or the SPE Component Entity’s structure, without first obtaining the prior written consent of Lender and, if required by
Lender, a Rating Agency Confirmation with respect thereto. Borrower shall execute and deliver to Lender, prior to or contemporaneously
with the effective date of any such change, any financing statement or financing statement change required by Lender to establish
or maintain the validity, perfection and priority of the security interest granted herein. At the request of Lender, Borrower shall
execute a certificate in form satisfactory to Lender listing the trade names under which Borrower or the SPE Component Entity intends
to operate the Property, and representing and warranting that Borrower or the SPE Component Entity does business under no other
trade name with respect to the Property.

 

Section
5.4.          Business and Operations. Borrower will continue
to engage in the businesses now conducted by it as and to the extent the same are necessary for the ownership, maintenance, management
and operation of the Property. Borrower will qualify to do business and will remain in good standing under the laws of the jurisdiction
as and to the extent the same are required for the ownership, maintenance, management and operation of the Property.

 

ARTICLE 6

 

NO SALE OR ENCUMBRANCE 

 

Section
6.1.          Transfer Definitions. For purposes of this Article
6, “Restricted Party” shall mean Borrower, Sponsor, Guarantor, any SPE Component Entity, any Affiliated Manager,
or any shareholder, partner, member or non-member manager, or any direct or indirect legal or beneficial owner of Borrower, Sponsor,
Guarantor, any SPE Component Entity, any Affiliated Manager or any non-member manager; and a “Sale or Pledge”
shall mean a voluntary or involuntary sale, conveyance, mortgage, grant, bargain, encumbrance, pledge, assignment, grant of any
options with respect to, or any other transfer or disposition of (directly or indirectly, voluntarily or involuntarily, by operation
of law or otherwise, and whether or not for consideration or of record) of a legal or beneficial interest.

 

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Section 6.2.          No
Sale/Encumbrance.

 

(a)          It
shall be an Event of Default hereof if, without the prior written consent of Lender, a Sale or Pledge of the Property or any part
thereof or any legal or beneficial interest therein (including, without limitation, the Loan and/or Loan Documents) occurs, a Sale
or Pledge of an interest in any Restricted Party occurs and/or Borrower shall acquire any real property in addition to the real
property owned by Borrower as of the Closing Date (each of the foregoing, collectively, a “Prohibited Transfer”),
other than (i) pursuant to Leases of space in the Improvements to Tenants in accordance with the provisions of Section 4.14 and
(ii) as permitted pursuant to the express terms of this Article 6.

 

(b)          A
Prohibited Transfer shall include, but not be limited to, (i) an installment sales agreement wherein Borrower agrees to sell the
Property or any part thereof for a price to be paid in installments; (ii) an agreement by Borrower leasing all or a substantial
part of the Property for other than actual occupancy by a Tenant thereunder or a sale, assignment or other transfer of, or the
grant of a security interest in, Borrower’s right, title and interest in and to any (A) Leases or any Rents; (iii) if a Restricted
Party is a corporation, any merger, consolidation or Sale or Pledge of such corporation’s stock or the creation or issuance
of new stock in one or a series of transactions; (iv) if a Restricted Party is a limited or general partnership or joint venture,
any merger or consolidation or the change, removal, resignation or addition of a general partner or the Sale or Pledge of the partnership
interest of any general or limited partner or any profits or proceeds relating to such partnership interests or the creation or
issuance of new limited partnership interests; (v) if a Restricted Party is a limited liability company, any merger or consolidation
or the change, removal, resignation or addition of a managing member or non- member manager (or if no managing member, any member)
or the Sale or Pledge of the membership interest of any member or any profits or proceeds relating to such membership interest;
(vi) if a Restricted Party is a trust or nominee trust, any merger, consolidation or the Sale or Pledge of the legal or beneficial
interest in a Restricted Party or the creation or issuance of new legal or beneficial interests; (vii) in the event Borrower has
entered into a Management Agreement, the removal or the resignation of Manager (including, without limitation, an Affiliated Manager)
other than in accordance with Section 4.15; or (viii) any action for partition of the Property (or any portion thereof or interest
therein) or any similar action instituted or prosecuted by Borrower or by any other Person, pursuant to any contractual agreement
or other instrument or under applicable law (including, without limitation, common law).

 

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Section
6.3.          Permitted Equity Transfers. Notwithstanding the
restrictions contained in this Article 6, the following equity transfers shall be permitted without Lender’s consent: (a)
a transfer (but not a pledge) by devise or descent or by operation of law upon the death of a Restricted Party or any member, partner
or shareholder of a Restricted Party, (b) the transfer (but not the pledge), in one or a series of transactions, of the stock,
partnership interests or membership interests (as the case may be) in a Restricted Party or (c) the sale, transfer or issuance
of shares of common stock in any Restricted Party that is a publicly traded entity, provided such shares of common stock are listed
on the New York Stock Exchange or another nationally recognized stock exchange (provided, that, the foregoing provisions of this
clause (c) shall not be deemed to waive, qualify or otherwise limit Borrower’s obligation to comply (or to cause the
compliance with) the other covenants set forth herein and in the other Loan Documents (including, without limitation, the covenants
contained herein relating to ERISA matters)); provided, further, that, with respect to the transfers listed in clauses (a) and/or
(b) above, (A) Lender shall receive not less than thirty (30) days prior written notice of such transfers; (B) no such
transfers shall result in a change in Control of Sponsor, Guarantor or Affiliated Manager; (C) after giving effect to such
transfers, Sponsor shall (I) own at least a 51% direct or indirect equity ownership interest in each of Borrower and any SPE Component
Entity; (II) Control Borrower and any SPE Component Entity and (III) control the day-to-day operation of the Property; (D) after
giving effect to such transfers, Guarantor shall own at least a 16.5% direct or indirect equity ownership interest in Borrower;
(E) after giving effect to such transfers, and in the event Borrower has entered into a Management Agreement, the Property shall
continue to be managed by Manager or a New Manager approved in accordance with the applicable terms and conditions hereof; (F)
in the case of the transfer of any direct equity ownership interests in Borrower or in any SPE Component Entity, such transfers
shall be conditioned upon continued compliance with the relevant provisions of Article 5 hereof; (G) in the case of (1) the transfer
of the management of the Property to a new Affiliated Manager in accordance with the applicable terms and conditions hereof, or
(2) the transfer of any equity ownership interests (I) directly in Borrower or in any SPE Component Entity, or (II) in any Restricted
Party whose sole asset is a direct or indirect equity ownership interest in Borrower or in any SPE Component Entity, such transfers
shall be conditioned upon delivery to Lender of a New Non-Consolidation Opinion addressing such transfer; and (H) such transfers
shall be conditioned upon Borrower’s ability to, after giving effect to the equity transfer in question (I) remake the representations
contained herein relating to ERISA matters (and, upon Lender’s request, Borrower shall deliver to Lender an Officer’s
Certificate containing such updated representations effective as of the date of the consummation of the applicable equity transfer)
and (II) continue to comply with the covenants contained herein relating to ERISA matters. Upon request from Lender, Borrower shall
promptly provide Lender a revised version of the organizational chart delivered to Lender in connection with the Loan reflecting
any equity transfer consummated in accordance with this Section 6.3.

 

Section
6.4.          Permitted Property Transfer (Assumption). Notwithstanding
the foregoing provisions of this Article 6, at any time other than the sixty (60) days prior to and following any Secondary Market
Transaction, Lender shall not unreasonably withhold consent to a one-time transfer of the Property in its entirety to, and the
related assumptions of the Loan by, any Person (a “Transferee”) provided that each of the following terms and
conditions are satisfied:

 

(a)          no
Event of Default has occurred and is continuing;

 

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(b)          Borrower
shall have (i) delivered written notice to Lender of the terms of such prospective transfer not less than sixty (60) days before
the date on which such transfer is scheduled to close and, concurrently therewith, all such information concerning the proposed
Transferee as Lender shall reasonably require and (ii) paid to Lender a non-refundable processing fee in the amount of $25,000.
Lender shall have the right to approve or disapprove the proposed transfer based on its then current underwriting and credit requirements
for similar loans secured by similar properties which loans are sold in the secondary market, such approval not to be unreasonably
withheld, conditioned or delayed. In determining whether to give or withhold its approval of the proposed transfer, Lender shall
consider the experience and track record of Transferee and its principals in owning and operating facilities similar to the Property,
the financial strength of Transferee and its principals, the general business standing of Transferee and its principals and Transferee’s
and its principals’ relationships and experience with contractors, vendors, tenants, lenders and other business entities;
provided, however, that, notwithstanding Lender’s agreement to consider the foregoing factors in determining whether to give
or withhold such approval, such approval shall be given or withheld based on what Lender determines to be commercially reasonable
and, if given, may be given subject to such conditions as Lender may deem reasonably appropriate;

 

(c)          Borrower
shall have paid to Lender, concurrently with the closing of such prospective transfer, (i) a non-refundable assumption fee in an
amount equal to one percent (1%) of the then outstanding principal balance of the Loan, (ii) all out-of-pocket costs and expenses,
including reasonable attorneys’ fees, incurred by Lender in connection therewith and (iii) all fees, costs and expenses of
all third parties and the Rating Agencies incurred in connection therewith;

 

(d)          Transferee
assumes and agrees to pay the Debt as and when due subject to the provisions of Article 13 hereof and, prior to or concurrently
with the closing of such transfer, Transferee and its constituent partners, members, shareholders, Affiliates or sponsors as Lender
may require, shall execute, without any cost or expense to Lender, such documents and agreements as Lender shall reasonably require
to evidence and effectuate said assumption and an Affiliate of Transferee reasonably acceptable to Lender (but in all events able
to satisfy the net worth, liquidity and other similar covenants in the Guaranty (unless otherwise agreed to by Lender)) shall execute
a recourse guaranty and an environmental indemnity in form and substance identical to the Guaranty and Environmental Indemnity,
respectively, with such changes to each of the foregoing as may be reasonably required by Lender;

 

(e)          Borrower
and Transferee, without any cost to Lender, shall furnish any information requested by Lender for the preparation of, and shall
authorize Lender to file, new financing statements and financing statement amendments and other documents to the fullest extent
permitted by applicable Legal Requirements, and shall execute any additional documents reasonably requested by Lender;

 

(f)          Borrower
shall have delivered to Lender, without any cost or expense to Lender, such endorsements to Lender’s Title Insurance Policy
insuring that fee simple or leasehold title to the Property, as applicable, is vested in Transferee (subject to Permitted Encumbrances),
hazard insurance endorsements or certificates and other similar materials as Lender may deem necessary at the time of the transfer,
all in form and substance satisfactory to Lender;

 

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(g)          Transferee
shall have furnished to Lender all appropriate papers evidencing Transferee’s organization and good standing, and the qualification
of the signers to execute the assumption of the Debt, which papers shall include certified copies of all documents relating to
the organization and formation of Transferee and of the entities, if any, which are partners or members of Transferee. Transferee
and such constituent partners, members or shareholders of Transferee (as the case may be), as Lender shall require, shall comply
with the covenants set forth in Article 5 hereof;

 

(h)          Transferee
shall assume the obligations of Borrower under any Management Agreement, if any, or provide a new management agreement with a new
manager which meets with the requirements of the Assignment of Management Agreement, if any, and Section 4.15 hereof and assign
to Lender as additional security such new management agreement;

 

(i)          Transferee
shall furnish to Lender a New Non-Consolidation Opinion and, a REMIC Opinion with respect to the transfer and the transactions
related thereto and an additional opinion of counsel satisfactory to Lender and its counsel (A) that Transferee’s formation
documents provide for the matters described in subparagraph (g) above, (B) that the assumption of the Debt has been duly authorized,
executed and delivered, and that the assumption agreement and the other Loan Documents are valid, binding and enforceable against
Transferee in accordance with their terms, (C) that Transferee and any entity which is a controlling stockholder, member or general
partner of Transferee, have been duly organized, and are in existence and good standing and (D) with respect to such other matters
as Lender may reasonably request;

 

(j)          if
required by Lender, Lender shall have received (A) a Rating Agency Confirmation with respect to such transfer; and

 

(k)          Borrower’s
obligations under the contract of sale pursuant to which the transfer is proposed to occur shall expressly be subject to the satisfaction
of the terms and conditions of this Section 6.4.

 

Section
6.5.          Lender’s Rights. Lender reserves the right
to condition the consent to a Prohibited Transfer requested hereunder upon (a) assumption of this Agreement and the other Loan
Documents, (b) payment of a transfer fee of 1% of outstanding principal balance of the Loan and all of Lender’s third-party
expenses incurred in connection with such Prohibited Transfer, (c) receipt of a Rating Agency Confirmation with respect to the
Prohibited Transfer, (d) the proposed transferee’s continued compliance with the covenants set forth in this Agreement,
including, without limitation, the covenants in Article 5, (e) receipt of a New Non-Consolidation Opinion with respect to the Prohibited
Transfer and/or (f) such other conditions and/or legal opinions as Lender shall determine in its sole discretion to be in the interest
of Lender. All third-party expenses incurred by Lender shall be payable by Borrower whether or not Lender consents to the Prohibited
Transfer. Lender shall not be required to demonstrate any actual impairment of its security or any increased risk of default hereunder
in order to declare the Debt immediately due and payable upon a Prohibited Transfer without Lender’s consent. This provision
shall apply to every Prohibited Transfer, whether or not Lender has consented to any previous Prohibited Transfer.

 

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Section
6.6.          OFAC, Patriot Act and Transfers. Borrower shall
(and shall cause its direct and indirect constituent owners and Affiliates to) (a) at all times comply with the representations
and covenants contained in Sections 3.29 and 3.30 such that the same remain true, correct and not violated or breached and (b)
not permit a Prohibited Transfer to occur and shall cause the ownership requirements specified in this Article 6 (including, without
limitation, those stipulated in Section 6.3 hereof) to be complied with at all times. Borrower hereby represents that, other than
in connection with the Loan, the Loan Documents and any Permitted Encumbrances, as of the date hereof, there exists no Sale or
Pledge of (i) the Property or any part thereof or any legal or beneficial interest therein or (ii) any interest in any Restricted
Party.

 

ARTICLE 7

 

INSURANCE; CASUALTY; CONDEMNATION;
RESTORATION

 

Section
7.1.          Insurance.

 

(a)          Borrower
shall obtain and maintain, or cause to be obtained and maintained, insurance for Borrower and the Property providing at least the
following coverages:

 

(i)          insurance
with respect to the Improvements and the Personal Property insuring against any peril now or hereafter included within the classification
“All Risk” or “Special Perils” (including, without limitation, fire, lightning, windstorm, hail, terrorism
and similar acts of sabotage, explosion, riot, riot attending a strike, civil commotion, vandalism, aircraft, vehicles and smoke),
in each case (A) in an amount equal to 100% of the “Full Replacement Cost,” which for purposes of this Agreement shall
mean actual replacement value exclusive of costs of excavations, foundations, underground utilities and footings, with a waiver
of depreciation; (B) in an amount sufficient so that no co-insurance penalties shall apply; (C) providing for no deductible in
excess of $10,000; (D) at all times insuring against at least those hazards that are commonly insured against under a “special
causes of loss” form of policy, as the same shall exist on the date hereof, and together with any increase in the scope of
coverage provided under such form after the date hereof; and (E) providing coverage for contingent liability from Operation of
Building Laws, Demolition Costs and Increased Cost of Construction Endorsements together with an “Ordinance or Law Coverage”
endorsement. The Full Replacement Cost shall be re-determined from time to time (but not more frequently than once in any twelve
(12) calendar months) at the request of Lender by an appraiser or contractor designated and paid by Borrower and approved by Lender,
or by an engineer or appraiser in the regular employ of the insurer. After the first appraisal, additional appraisals may be based
on construction cost indices customarily employed in the trade. No omission on the part of Lender to request any such ascertainment
shall relieve Borrower of any of its obligations under this Subsection;

 

(ii)         commercial
general liability insurance against all claims for personal injury, bodily injury, death or property damage occurring upon, in
or about the Property, including “Dram Shop” or other liquor liability coverage if alcoholic beverages are sold, manufactured
or distributed from the Property, such insurance (A) to be on the so-called “occurrence” form with a general aggregate
limit of not less than $2,000,000 and a per occurrence limit of not less than $1,000,000, with no deductible or self insured retention
exceeding $25,000; (B) to continue at not less than the aforesaid limit until required to be changed by Lender in writing by reason
of changed economic conditions making such protection inadequate; and (C) to cover at least the following hazards: (1) premises
and operations; (2) products and completed operations on an “if any” basis; (3) independent contractors; (4) blanket
contractual liability for all written and oral contracts; (5) contractual liability covering the indemnities contained in
Article 13 hereof to the extent the same is available; and (6) acts of terrorism and similar acts of sabotage;

 

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(iii)        loss
of rents and/or business interruption insurance (A) with loss payable to Lender; (B) covering all risks required to be covered
by the insurance provided for in Subsection 7.1(a)(i), (iv) and (vi) through (viii); (C) in an amount equal to 100% of the projected
gross income from the Property (on an actual loss sustained basis) for a period continuing until the Restoration of the Property
is completed; the amount of such business interruption/loss of rents insurance shall be determined prior to the Closing Date and
at least once each year thereafter based on Lender’s determination of the net operating income plus fixed expenses for the
Property for a twelve (12) month period and (D) containing an extended period of indemnity endorsement which provides that after
the physical loss to the Improvements and the Personal Property has been repaired, the continued loss of income will be insured
until such income either returns to the same level it was at prior to the loss, or the expiration of six (6) months from the date
that the Property is repaired or replaced and operations are resumed, whichever first occurs, and notwithstanding that the policy
may expire prior to the end of such period. To the extent that insurance proceeds are payable to Lender pursuant to this Subsection
(the “Rent Loss Proceeds”) and Borrower is entitled to disbursement of such Rent Loss Proceeds in accordance
with the terms hereof (1) a Trigger Period shall be deemed to exist and (2) such Rent Loss Proceeds shall be deposited by
Lender in the Cash Management Account and disbursed as provided in Article 9 hereof; provided, however, that (I) nothing herein
contained shall be deemed to relieve Borrower of its obligations to pay the obligations secured hereunder on the respective dates
of payment provided for in the Note except to the extent such amounts are actually paid out of the Rent Loss Proceeds and (II)
in the event the Rent Loss Proceeds are paid in a lump sum in advance and Borrower is entitled to disbursement of such Rent Loss
Proceeds in accordance with the terms hereof, Lender or Servicer shall hold such Rent Loss Proceeds in a segregated interest-bearing
Eligible Account (which shall deemed to be included within the definition of the “Accounts” hereunder) and Lender or
Servicer shall estimate the number of months required for Borrower to restore the damage caused by the applicable Casualty, shall
divide the applicable aggregate Rent Loss Proceeds by such number of months and shall disburse such monthly installment of Rent
Loss Proceeds from such Eligible Account into the Cash Management Account each month during the performance of such Restoration;

 

(iv)        at
all times during which structural construction, repairs or alterations are being made with respect to the Improvements (A) owner’s
contingent or protective liability insurance covering claims not covered by or under the terms or provisions of the above mentioned
commercial general liability insurance policy; and (B) the insurance provided for in Subsection 7.1(a)(i) written in a so-called
builder’s risk completed value form (1) on a non-reporting basis, (2) against all risks insured against pursuant to Subsection
7.1(a)(i), (3) including permission to occupy the Property, and (4) with an agreed amount endorsement waiving co-insurance provisions;

 

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(v)         workers’
compensation, subject to the statutory limits of the state in which the Property is located, and employer’s liability insurance
with a limit of at least $1,000,000 per accident and per disease per employee, and $1,000,000 for disease aggregate in respect
of any work or operations on or about the Property, or in connection with the Property or its operation (if applicable);

 

(vi)        comprehensive
boiler and machinery insurance covering all mechanical and electrical equipment and pressure vessels and boilers in an amount not
less than their replacement cost or in such other amount as shall be reasonably required by Lender;

 

(vii)       if
any portion of the Improvements is at any time located in an area identified by (A) the Federal Emergency Management Agency in
the Federal Register as an area having special flood hazards and/or (B) the Secretary of Housing and Urban Development or any successor
thereto as an area having special flood hazards pursuant to the National Flood Insurance Act of 1968, the Flood Disaster Protection
Act of 1973 or the National Flood Insurance Reform Act of 1994, as each may be amended, or any successor law (the “Flood
Insurance Acts”), flood hazard insurance in an amount equal to the maximum limit of coverage available for the Property
under the Flood Insurance Acts (or such higher amount as Lender may require in its sole discretion);

 

(viii)      earthquake,
sinkhole and mine subsidence insurance, if required, in amounts equal to two times (2x) the probable maximum loss of the Property
as determined by Lender in its sole discretion and in form and substance satisfactory to Lender, provided that the insurance pursuant
to this Subsection (viii) shall be on terms consistent with the all risk insurance policy required under Section 7.1(a)(i);

 

(ix)         umbrella
liability insurance in an amount not less than $10,000,000 per occurrence on terms consistent with the commercial general liability
insurance policy required under subsection (ii) above;

 

(x)          intentionally
omitted;

 

(xi)         motor
vehicle liability coverage for all owned and non-owned vehicles, including rented and leased vehicles containing minimum limits
per occurrence, including umbrella coverage, of One Million and No/100 Dollars ($1,000,000); and

 

(xii)        such
other insurance and in such amounts as Lender from time to time may reasonably request against such other insurable hazards which
at the time are commonly insured against for property similar to the Property located in or around the region in which the Property
is located.

 

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(b)          All
insurance provided for in Subsection 7.1(a) hereof shall be obtained under valid and enforceable policies (the “Policies”
or in the singular, the “Policy”), in such forms and, from time to time after the date hereof, in such amounts
as may be satisfactory to Lender, issued by financially sound and responsible insurance companies authorized and admitted to do
business in the state in which the Property is located and approved by Lender. The insurance companies must have a general policy
rating of A or better and a financial class of VIII or better by A.M. Best Company, Inc., and a claims paying ability/financial
strength rating of ”A-” (or its equivalent) or better by at least two (2) of the Rating Agencies (one of which will
be S&P if they are rating the Securities and one of which shall be Moody’s if they are rating the Securities), or if
only one Rating Agency is rating the Securities, then only by such Rating Agency (each such insurer shall be referred to below
as a “Qualified Insurer”). Not less than fifteen (15) days prior to the expiration dates of the Policies theretofore
furnished to Lender pursuant to Subsection 7.1(a), Borrower shall deliver certified copies of the Policies marked “premium
paid” or accompanied by evidence satisfactory to Lender of payment of the premiums due thereunder (the “Insurance
Premiums”), provided, however, that in the case of renewal Policies, Borrower may furnish Lender with binders and Acord
Form 28 Certificates therefor to be followed by the original Policies when issued.

 

(c)          Borrower
shall not obtain (or permit to be obtained) (i) any umbrella or blanket liability or casualty Policy unless, in each case, such
Policy is approved in advance in writing by Lender, Lender’s interest is included therein as provided in this Agreement,
such Policy is issued by a Qualified Insurer and such Policy includes such changes to the coverages and requirements set forth
herein as may be required by Lender (including, without limitation, increases to the amount of coverages required herein) or (ii)
separate insurance concurrent in form or contributing in the event of loss with that required in Subsection 7.1(a) to be furnished
by, or which may be reasonably required to be furnished by, Borrower. In the event Borrower obtains (or causes to be obtained)
separate insurance or an umbrella or a blanket Policy, Borrower shall notify Lender of the same and shall cause certified copies
of each Policy to be delivered as required in Subsection 7.1(a). Notwithstanding Lender’s approval of any umbrella or blanket
liability or casualty Policy hereunder, Lender reserves the right, in its sole discretion, to require Borrower to obtain a separate
Policy in compliance with this Section 7.1.

 

(d)          All
Policies of insurance provided for or contemplated by Subsection 7.1(a), except for the Policy referenced in Subsection 7.1(a)(v),
shall name Lender and Borrower as the insured or additional insured, as their respective interests may appear, and in the case
of property damage, rent loss, business interruption, boiler and machinery, earthquake and flood insurance, shall contain a so-called
New York standard noncontributing mortgagee clause (or its equivalent) in favor of Lender providing that the loss thereunder shall
be payable to Lender.

 

(e)          All
Policies of insurance provided for in Subsection 7.1(a) shall contain clauses or endorsements to the effect that:

 

(i)          the
following shall in no way affect the validity or enforceability of the Policy insofar as Lender is concerned: (A) any act or negligence
of Borrower, of anyone acting for Borrower, of any Tenant under any Lease or other occupant, of Lender or of any other Person named
as an insured, additional insured and/or loss payee and (B) the failure to comply with the provisions of the Policy which might
otherwise result in a forfeiture of the insurance or any part thereof;

 

(ii)         the
Policy shall not be materially changed (other than to increase the coverage provided thereby), terminated or cancelled without
at least 30 days’ written notice (via certified mail, postage prepaid, return receipt requested) to Lender and any other
party named therein as an insured;

 

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(iii)        the
issuer(s) of the Policy shall give written notice to Lender (via certified mail, postage prepaid, return receipt requested) if
the Policy has not been renewed thirty (30) days prior to its expiration;

 

(iv)        Lender
shall not be liable for any Insurance Premiums thereon or subject to any assessments or commissions thereunder and that the related
issuer(s) waive any related claims to the contrary;

 

(v)         Lender
shall, at its option and with no obligation to do so, have the right to directly pay Insurance Premiums in order to avoid cancellation,
expiration and/or termination of the Policy due to non-payment of Insurance Premiums; and

 

(vi)        the
Policy shall not exclude coverage for acts of terror or similar acts of sabotage.

 

(f)          By
no later than five (5) days following the expiration date of any Policies, Borrower shall furnish to Lender a statement certified
by Borrower or a Responsible Officer of Borrower of the amounts of insurance maintained in compliance herewith, of the risks covered
by such insurance and of the insurance company or companies which carry such insurance and, if requested by Lender, verification
of the adequacy of such insurance by an independent insurance broker or appraiser acceptable to Lender. Without limitation of the
foregoing, Borrower shall also comply with the foregoing within ten (10) days of written request of Lender.

 

(g)          If
at any time Lender is not in receipt of written evidence that all insurance required hereunder is in full force and effect, Lender
shall have the right, without notice to Borrower to take such action as Lender deems necessary to protect its interest in the Property,
including, without limitation, the obtaining of such insurance coverage as Lender in its sole discretion deems appropriate, and
all expenses incurred by Lender in connection with such action or in obtaining such insurance and keeping it in effect shall be
paid by Borrower to Lender upon demand and until paid shall be secured by the Security Instrument and shall bear interest at the
Default Rate.

 

(h)          In
the event of a foreclosure of the Security Instrument or other transfer of title to the Property in extinguishment in whole or
in part of the Debt, all right, title and interest of Borrower in and to the Policies then in force concerning the Property and
all proceeds payable thereunder shall thereupon vest exclusively in Lender or the purchaser at such foreclosure or other transferee
in the event of such other transfer of title.

 

(i)          As
an alternative to the Policies required to be maintained pursuant to the preceding provisions of this Section 7.1, Borrower will
not be in default under this Section 7.1 if Borrower maintains (or causes to be maintained) Policies which (i) have coverages,
deductibles and/or other related provisions other than those specified above and/or (ii) are provided by insurance companies not
meeting the credit ratings requirements set forth above (any such Policy, a “Non-Conforming Policy”), provided,
that, prior to obtaining such Non-Conforming Policies (or permitting such Non-Conforming Policies to be obtained), Borrower shall
have (1) received Lender’s prior written consent thereto and (2) if required by Lender, confirmed that Lender has received
a Rating Agency Confirmation with respect to any such Non-Conforming Policy. Notwithstanding the foregoing, Lender hereby reserves
the right to deny its consent to any Non-Conforming Policy regardless of whether or not Lender has consented to the same on any
prior occasion.

 

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(j)          Borrower
shall cooperate with Lender in obtaining for Lender the benefits of any Awards or insurance proceeds lawfully or equitably payable
in connection with the Property, and Lender shall be reimbursed for any expenses incurred in connection therewith (including reasonable,
actual attorneys’ fees and disbursements, and the payment by Borrower of the expense of an appraisal on behalf of Lender
in case of a Casualty or Condemnation affecting the Property or any part thereto) out of such Awards or insurance proceeds.

 

Section
7.2.          Casualty. If the Property shall be damaged or
destroyed, in whole or in part, by fire or other casualty (a “Casualty”), Borrower shall give prompt notice
of such damage to Lender and shall promptly commence and diligently prosecute the completion of the Restoration of the Property
and otherwise comply with the provisions of Section 7.4. Borrower shall pay all costs of Restoration (including, without limitation,
any applicable deductibles under the Policies) whether or not such costs are covered by the Net Proceeds. Lender may, but shall
not be obligated to, make proof of loss if not made promptly by Borrower.

 

Section
7.3.          Condemnation. Borrower shall promptly give Lender
notice of the actual or threatened commencement of any proceeding for the Condemnation of the Property of which Borrower has knowledge
and shall deliver to Lender copies of any and all papers served in connection with such proceedings. Lender may participate in
any such proceedings, and Borrower shall from time to time deliver to Lender all instruments requested by it to permit such participation.
Borrower shall, at its expense, diligently prosecute any such proceedings, and shall consult with Lender, its attorneys and experts,
and cooperate with them in the carrying on or defense of any such proceedings. Notwithstanding any taking by any public or quasi-public
authority through Condemnation or otherwise (including but not limited to any transfer made in lieu of or in anticipation of the
exercise of such taking), Borrower shall continue to pay the Debt at the time and in the manner provided for its payment in the
Note and in this Agreement and the Debt shall not be reduced until any Award shall have been actually received and applied by Lender,
after the deduction of expenses of collection, to the reduction or discharge of the Debt. Lender shall not be limited to the interest
paid on the Award by the condemning authority but shall be entitled to receive out of the Award interest at the rate or rates provided
herein or in the Note. If the Property or any portion thereof is taken by a condemning authority, Borrower shall promptly commence
and diligently prosecute the Restoration of the Property and otherwise comply with the provisions of Section 7.4. Borrower shall
pay all costs of Restoration whether or not such costs are covered by the Net Proceeds. If the Property is sold, through foreclosure
or otherwise, prior to the receipt by Lender of the Award, Lender shall have the right, whether or not a deficiency judgment on
the Note shall have been sought, recovered or denied, to receive the Award, or a portion thereof sufficient to pay the Debt. Notwithstanding
the foregoing to the contrary contained herein, if, in connection with any Condemnation, a prepayment of the Debt (in whole or
in part) is required under REMIC Requirements, (a) the Condemnation Net Proceeds shall be applied to the Debt in accordance with
Section 7.4(c) hereof and (b) to the extent that the amount of Condemnation Net Proceeds actually applied to the Debt in connection
therewith is insufficient under REMIC Requirements, Borrower shall, within five (5) days of demand by Lender, prepay the principal
amount of the Debt (without payment of any Yield Maintenance Premium) in accordance with the terms and conditions hereof in an
amount equal to such insufficiency plus the amount of any then applicable Interest Shortfall (such prepayment, together with any
related Interest Shortfall Payment, collectively, the “Condemnation Payment”). Lender may require Borrower to
deliver a REMIC Opinion in connection with each of the foregoing.

 

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Section
7.4.          Restoration. The following provisions shall apply
in connection with the Restoration of the Property:

 

(a)          Subject
to Section 7.4(c) hereof, if the Net Proceeds shall be less than the Restoration Threshold and the costs of completing the Restoration
shall be less than the Restoration Threshold, the Net Proceeds will be disbursed by Lender to Borrower upon receipt, provided that
all of the conditions set forth in Section 7.4(b)(i) are met and Borrower delivers to Lender a written undertaking to expeditiously
commence and to satisfactorily complete with due diligence the Restoration in accordance with the terms of this Agreement.

 

(b)          Subject
to Section 7.4(c) hereof, if the Net Proceeds are equal to or greater than the Restoration Threshold or the costs of completing
the Restoration are equal to or greater than the Restoration Threshold, Lender shall make the Net Proceeds available for the Restoration
in accordance with the provisions of this Section 7.4.

 

(i)          The
Net Proceeds shall be made available for Restoration provided that each of the following conditions are met:

 

(A)         no
Event of Default shall have occurred and be continuing;

 

(B)         (1)
in the event the Net Proceeds are insurance proceeds, less than thirty percent (30%) of each of (i) fair market value of the Property
as reasonably determined by Lender, and (ii) rentable area of the Property has been damaged, destroyed or rendered unusable as
a result of a Casualty or (2) in the event the Net Proceeds are condemnation proceeds, less than ten percent (10%) of each of (i)
the fair market value of the Property as reasonably determined by Lender and (ii) rentable area of the Property is taken, such
land is located along the perimeter or periphery of the Property, no portion of the Improvements is located on such land and such
taking does not materially impair the existing access to the Property;

 

(C)         Leases
demising in the aggregate a percentage amount equal to or greater than 75% of the total rentable space in the Property which has
been demised under executed and delivered Leases in effect as of the date of the occurrence of such fire or other casualty or taking,
whichever the case may be, shall remain in full force and effect during and after the completion of the Restoration, notwithstanding
the occurrence of any such Casualty or Condemnation, whichever the case may be, and Borrower furnishes to Lender evidence satisfactory
to Lender that all Tenants under Major Leases shall continue to operate their respective space at the Property after the completion
of the Restoration;

 

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(D)         Borrower
shall commence (or shall cause the commencement of) the Restoration as soon as reasonably practicable (but in no event later than
thirty (30) days after the issuance of a building permit with respect thereto) and shall diligently pursue the same to satisfactory
completion in compliance with all applicable Legal Requirements, including, without limitation, all applicable Environmental Laws;

 

(E)         Lender
shall be satisfied that any operating deficits which will be incurred with respect to the Property as a result of the occurrence
of any such fire or other casualty or taking will be covered out of (1) the Net Proceeds, (2) the insurance coverage referred to
in Section 7.1(a)(iii) above, or (3) by other funds of Borrower;

 

(F)         Lender
shall be satisfied that the Net Proceeds together with any cash or cash equivalent deposited by Borrower with Lender are sufficient
to cover the cost of the Restoration;

 

(G)         Lender
shall be satisfied that, upon the completion of the Restoration, the fair market value and cash flow of the Property will not be
less than the fair market value and cash flow of the Property as the same existed immediately prior to the applicable Casualty
or Condemnation;

 

(H)         Lender
shall be satisfied that the Restoration will be completed on or before the earliest to occur of (1) six (6) months prior to the
Maturity Date, (2) six (6) months after the occurrence of such fire or other casualty or taking, (3) the earliest date required
for such completion under the terms of any Major Leases, (4) such time as may be required under applicable Legal Requirements or
(5) the expiration of the insurance coverage referred to in Section 7.1(a)(iii) above;

 

(I)         Borrower
shall execute and deliver to Lender a completion guaranty in form and substance satisfactory to Lender and its counsel pursuant
to the provisions of which Borrower shall guaranty to Lender the lien-free completion by Borrower of the Restoration in accordance
with the provisions of this Subsection 7.4(b);

 

(J)         the
Property and the use thereof after the Restoration will be in compliance with and permitted under all applicable Legal Requirements;

 

(K)         the
Restoration shall be done and completed in an expeditious and diligent fashion and in compliance with all applicable Legal Requirements;

 

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(L)         Lender
shall be satisfied, in its sole and absolute discretion, that the Restoration of the Property will not be limited or restricted
by the terms of the ZLDA; and

 

(M)         Lender
shall be satisfied that making the Net Proceeds available for Restoration shall be permitted pursuant to REMIC Requirements and,
in that regard, Lender may require Borrower to deliver a REMIC Opinion in connection therewith.

 

(ii)         The
Net Proceeds shall be held by Lender and, until disbursed in accordance with the provisions of this Section 7.4(b), shall constitute
additional security for the Debt and other obligations under this Agreement, the Security Instrument, the Note and the other Loan
Documents. The Net Proceeds (other than the Rent Loss Proceeds) shall be disbursed by Lender to, or as directed by, Borrower from
time to time during the course of the Restoration, upon receipt of evidence satisfactory to Lender that (A) all materials installed
and work and labor performed (except to the extent that they are to be paid for out of the requested disbursement) in connection
with the related Restoration item have been paid for in full, and (B) there exist no notices of pendency, stop orders, mechanic’s
or materialman’s liens or notices of intention to file same, or any other liens or encumbrances of any nature whatsoever
on the Property which have not either been fully bonded to the satisfaction of Lender and discharged of record or in the alternative
fully insured to the satisfaction of Lender by the title company issuing the Title Insurance Policy.

 

(iii)        All
plans and specifications required in connection with the Restoration shall be subject to prior review and acceptance in all respects
by Lender and by an independent consulting engineer selected by Lender (the “Casualty Consultant”). Lender shall
have the use of the plans and specifications and all permits, licenses and approvals required or obtained in connection with the
Restoration. The identity of the contractors, subcontractors and materialmen engaged in the Restoration shall be subject to prior
review and acceptance by Lender and the Casualty Consultant, such acceptance not to be unreasonably withheld or delayed. All costs
and expenses incurred by Lender in connection with making the Net Proceeds available for the Restoration including, without limitation,
reasonable counsel fees and disbursements and the Casualty Consultant’s fees, shall be paid by Borrower. Borrower shall have
the right to settle all claims under the Policies jointly with Lender, provided that (a) no Event of Default exists, (b) Borrower
promptly and with commercially reasonable diligence negotiates a settlement of any such claims and (c) the insurer with respect
to the Policy under which such claim is brought has not raised any act of the insured as a defense to the payment of such claim.
If an Event of Default exists, Lender shall, at its election, have the exclusive right to settle or adjust any claims made under
the Policies in the event of a Casualty.

 

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(iv)        In
no event shall Lender be obligated to make disbursements of the Net Proceeds in excess of an amount equal to the costs actually
incurred from time to time for work in place as part of the Restoration, as certified by the Casualty Consultant, minus the Restoration
Retainage. The term “Restoration Retainage” as used in this Subsection 7.4(b) shall mean an amount equal
to 10% of the costs actually incurred for work in place as part of the Restoration, as certified by the Casualty Consultant, until
such time as the Casualty Consultant certifies to Lender that Net Proceeds representing 50% of the required Restoration have been
disbursed. There shall be no Restoration Retainage with respect to costs actually incurred by Borrower for work in place in completing
the last 50% of the required Restoration. The Restoration Retainage shall in no event, and notwithstanding anything to the contrary
set forth above in this Subsection 7.4(b), be less than the amount actually held back by Borrower from contractors, subcontractors
and materialmen engaged in the Restoration. The Restoration Retainage shall not be released until the Casualty Consultant certifies
to Lender that the Restoration has been completed in accordance with the provisions of this Subsection 7.4(b) and that all approvals
necessary for the re-occupancy and use of the Property have been obtained from all appropriate governmental and quasi-governmental
authorities, and Lender receives evidence satisfactory to Lender that the costs of the Restoration have been paid in full or will
be paid in full out of the Restoration Retainage, provided, however, that Lender will release the portion of the Restoration Retainage
being held with respect to any contractor, subcontractor or materialman engaged in the Restoration as of the date upon which the
Casualty Consultant certifies to Lender that the contractor, subcontractor or materialman has satisfactorily completed all work
and has supplied all materials in accordance with the provisions of the contractor’s, subcontractor’s or materialman’s
contract, and the contractor, subcontractor or materialman delivers the lien waivers and evidence of payment in full of all sums
due to the contractor, subcontractor or materialman as may be reasonably requested by Lender or by the title company insuring the
lien of the Security Instrument. If required by Lender, the release of any such portion of the Restoration Retainage shall be approved
by the surety company, if any, which has issued a payment or performance bond with respect to the contractor, subcontractor or
materialman.

 

(v)         Lender
shall not be obligated to make disbursements of the Net Proceeds more frequently than once every calendar month.

 

(vi)        If
at any time the Net Proceeds or the undisbursed balance thereof shall not, in the reasonable opinion of Lender in consultation
with the Casualty Consultant, be sufficient to pay in full the balance of the costs which are estimated by the Casualty Consultant
to be incurred in connection with the completion of the Restoration, Borrower shall deposit the deficiency (the “Net Proceeds
Deficiency”) with Lender before any further disbursement of the Net Proceeds shall be made. The Net Proceeds Deficiency
deposited with Lender shall be held by Lender and shall be disbursed for costs actually incurred in connection with the Restoration
on the same conditions applicable to the disbursement of the Net Proceeds, and until so disbursed pursuant to this Section 7.4(b)
shall constitute additional security for the Debt and other obligations under this Agreement, the Security Instrument, the Note
and the other Loan Documents.

 

(vii)       The
excess, if any, of the Net Proceeds and the remaining balance, if any, of the Net Proceeds Deficiency deposited with Lender after
the Casualty Consultant certifies to Lender that the Restoration has been completed in accordance with the provisions of this Section
7.4(b), and the receipt by Lender of evidence satisfactory to Lender that all costs incurred in connection with the Restoration
have been paid in full, shall be remitted by Lender to Borrower, provided no Event of Default shall have occurred and shall be
continuing under this Agreement, the Security Instrument, the Note or any of the other Loan Documents.

 

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(c)          Notwithstanding
the foregoing provisions of this Section 7.4, if the Loan is included in a REMIC Trust and, immediately following a release of
any portion of the real property relating to the Property following a Casualty or Condemnation (but taking into account any proposed
Restoration of the remaining Property), the ratio of the unpaid principal balance of the Loan to the value of the remaining real
property relating to the Property is greater than 125% (such value to be determined, in Lender’s sole discretion, by any
commercially reasonable method permitted to a REMIC Trust), the principal balance of the Loan must be paid down by Borrower by
an amount sufficient to satisfy REMIC Requirements plus the amount of any then applicable Interest Shortfall (collectively, such
payment, the “Condemnation Payment”), unless the Lender receives an opinion of counsel that the Loan will not
fail to maintain its status as a “qualified mortgage” within the meaning of Section 860G(a)(3)(A) of the IRS Code as
a result of the related release of lien. Borrower shall not be required to pay any Yield Maintenance Premium in connection with
a Condemnation Payment as contemplated by this Subsection 7.4(c).

 

(d)          All
Net Proceeds not required (i) to be made available for the Restoration or (ii) to be returned to Borrower as excess Net Proceeds
pursuant to Subsection 7.4(b)(vii) shall be retained and applied by Lender toward the payment of the Debt whether or not then due
and payable in such order, priority and proportions as Lender in its discretion shall deem proper. If Lender shall receive and
retain Net Proceeds, the lien of the Security Instrument shall be reduced only by the amount thereof received and retained by Lender
and actually applied by Lender in reduction of the Debt. Borrower shall not be required to pay any Yield Maintenance Premium in
connection with the application of Net Proceeds in accordance with the terms of this Section 7.4(d).

 

ARTICLE 8

 

RESERVE FUNDS

 

Section
8.1.          Immediate Repair Funds.

 

(a)          Borrower
shall perform the repairs at the Property as set forth on Schedule 8.1 hereto (such repairs hereinafter referred to as “Immediate
Repairs”) and shall complete each of the Immediate Repairs on or before the respective deadline for each repair as set
forth on Schedule 8.1 hereto. On the Closing Date, Borrower shall deposit into an Eligible Account held by Lender or Servicer
(the “Immediate Repair Account”) the amount set forth on such Schedule 8.1 hereto to perform the Immediate
Repairs. Amounts deposited pursuant to this Section 8.1 are referred to herein as the “Immediate Repair Funds”.

 

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(b)          Lender
shall disburse to Borrower the Immediate Repair Funds upon satisfaction by Borrower of each of the following conditions: (i) Borrower
shall submit a request for payment to Lender at least ten (10) days prior to the date on which Borrower requests such payment be
made and specifies the Immediate Repairs to be paid; (ii) on the date such request is received by Lender and on the date such payment
is to be made, no Event of Default shall exist and remain uncured; (iii) Lender shall have received a certificate from Borrower
(A) stating that all Immediate Repairs to be funded by the requested disbursement have been completed in a good and workmanlike
manner and in accordance with all applicable Legal Requirements, such certificate to be accompanied by a copy of any license, permit
or other approval by any Governmental Authority required in connection with the Immediate Repairs, (B) identifying each Person
that supplied materials or labor in connection with the Immediate Repairs to be funded by the requested disbursement, and (C) stating
that each such Person has been paid in full or will be paid in full upon such disbursement, such certificate to be accompanied
by lien waivers, invoices and/or other evidence of payment satisfactory to Lender; (iv) at Lender’s option, if the cost of
the Immediate Repairs exceeds $25,000, a title search for the Property indicating that the Property is free from all liens, claims
and other encumbrances other than Permitted Encumbrances; (v) at Lender’s option, if the cost of the Immediate Repairs exceeds
$25,000, Lender shall have received a report satisfactory to Lender in its reasonable discretion from an architect or engineer
approved by Lender in respect of such architect or engineer’s inspection of the required repairs; and (vi) Lender shall have
received such other evidence as Lender shall reasonably request that the Immediate Repairs to be funded by the requested disbursement
have been completed and are paid for or will be paid upon such disbursement to Borrower. Lender shall not be required to disburse
Immediate Repair Funds more frequently than once each calendar month nor in an amount less than the Minimum Disbursement Amount
(or a lesser amount if the total Immediate Repair Funds is less than the Minimum Disbursement Amount, in which case only one disbursement
of the amount remaining in the account shall be made).

 

Section
8.2.          Replacement Reserve Funds.

 

(a)          Borrower
shall deposit into an Eligible Account held by Lender or Servicer (the “Residential Replacement Reserve Account”)
on each Monthly Payment Date an amount equal to $562.50 (the “Residential Replacement Reserve Monthly Deposit”)
for the Replacements required in connection with the residential units (“Residential Replacements”).

 

(b)          Borrower
shall deposit into an Eligible Account held by Lender or Servicer (the “Office Replacement Reserve Account”)
on each Monthly Payment Date an amount equal to $4,431.07 (the “Office Replacement Reserve Monthly Deposit”
and the amounts deposited in the Office Replacement Reserve Account being herein referred to as the “Office Replacement
Reserve Funds”) for the Replacements required in connection with the office space and common area space (“Office
Replacements”), until such time as the amount deposited in the Office Replacement Reserve account is equal to $159,518.40
(the “Office Replacement Reserve Threshold”). Borrower shall replenish the Office Replacement Reserve Account
(up to the Office Replacement Reserve Threshold) with Office Replacement Monthly Deposits if Borrower draws down the Office Replacement
Reserve Account after the Office Replacement Reserve Threshold is met.

 

(c)          Amounts
deposited pursuant to this Section 8.2 are collectively referred to herein as the “Replacement Reserve Funds.”
Lender may reassess its estimate of the amount necessary for Replacements from time to time and, and may require Borrower to increase
the monthly deposits required pursuant to this Section 8.2 upon thirty (30) days notice to Borrower if Lender determines in its
reasonable discretion that an increase is necessary to maintain proper operation of the Property.

 

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(d)          Lender
shall disburse Replacement Reserve Funds deposited in the Residential Replacement Reserve Account only for Residential Replacements,
and shall disburse Replacement Reserve Funds deposited in the Office Replacement Reserve Account only for Office Replacements.
Lender shall disburse to Borrower the applicable Replacement Reserve Funds upon satisfaction by Borrower of each of the following
conditions: (i) Borrower shall submit a request for payment to Lender at least ten (10) days prior to the date on which Borrower
requests such payment be made and specifies the Replacements to be paid; (ii) on the date such request is received by Lender and
on the date such payment is to be made, no Event of Default shall exist and remain uncured, (iii) Lender shall have received a
certificate from Borrower (A) stating that the items to be funded by the requested disbursement are Replacements and specifying
whether such Replacements are Office Replacements or Residential Replacements, (B) stating that all Replacements at the Property
to be funded by the requested disbursement have been completed in a good and workmanlike manner and in accordance with all applicable
Legal Requirements, such certificate to be accompanied by a copy of any license, permit or other approval required by any Governmental
Authority in connection with the Replacements, (C) identifying each Person that supplied materials or labor in connection with
the Replacements to be funded by the requested disbursement and (D) stating that each such Person has been paid in full or will
be paid in full upon such disbursement, such certificate to be accompanied by lien waivers, invoices and/or other evidence of payment
satisfactory to Lender; (iv) at Lender’s option, if the cost of any individual Replacement exceeds $25,000, a title search
for the Property indicating that the Property is free from all liens, claims and other encumbrances other than Permitted Encumbrances;
(v) at Lender’s option, if the cost of any individual Replacement exceeds $25,000, Lender shall have received a report satisfactory
to Lender in its reasonable discretion from an architect or engineer approved by Lender in respect of such architect or engineer’s
inspection of the required repairs; and (vi) Lender shall have received such other evidence as Lender shall reasonably request
that the Replacements at the Property to be funded by the requested disbursement have been completed and are paid for or will be
paid upon such disbursement to Borrower. Lender shall not be required to disburse Replacement Reserve Funds more frequently than
once each calendar month nor in an amount less than the Minimum Disbursement Amount (or a lesser amount if the total amount of
Replacement Reserve Funds is less than the Minimum Disbursement Amount, in which case only one disbursement of the amount remaining
in the account shall be made).

 

(e)          Nothing
in this Section 8.2 shall (i) make Lender responsible for making or completing the Replacements; (ii) require Lender to expend
funds in addition to the Replacement Reserve Funds to complete any Replacements; (iii) obligate Lender to proceed with the Replacements;
or (iv) obligate Lender to demand from Borrower additional sums to complete any Replacements.

 

(f)          Borrower
shall permit Lender and Lender’s agents and representatives (including, without limitation, Lender’s engineer, architect,
or inspector) or third parties to enter onto the Property during normal business hours (subject to the rights of Tenants under
their Leases) to inspect the progress of any Replacements and all materials being used in connection therewith and to examine all
plans and shop drawings relating to such Replacements. Borrower shall cause all contractors and subcontractors to cooperate with
Lender or Lender’s representatives or such other Persons described above in connection with inspections described in this
Section.

 

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Section
8.3.          Leasing Reserve Funds.

 

(a)          Borrower
shall deposit into an Eligible Account held by Lender or Servicer (the “Leasing Reserve Account”) on each Monthly
Payment Date the sum of $22,155.33 (the “Leasing Reserve Monthly Deposit”) until such time as the amount
deposited in the Leasing Reserve Account is equal to $1,329,320 (the “Leasing Reserve Threshold”), for
tenant improvements and leasing commissions that may be incurred following the date hereof. Amounts deposited pursuant to this
Section 8.3 are referred to herein as the “Leasing Reserve Funds”. Borrower shall replenish the Leasing Reserve
Account (up to the Leasing Reserve Threshold) with Leasing Reserve Monthly Deposits if Borrower draws down the Leasing Reserve
Account after the Leasing Reserve Threshold is met.

 

(b)          Lender
shall disburse to Borrower the Leasing Reserve Funds upon satisfaction by Borrower of each of the following conditions: (i) Borrower
shall submit a request for payment to Lender at least ten (10) days prior to the date on which Borrower requests such payment be
made and specifies the tenant improvement costs and leasing commissions to be paid; (ii) on the date such request is received by
Lender and on the date such payment is to be made, no Event of Default shall exist and remain uncured; (iii) if required herein,
Lender shall have reviewed and approved the Lease and related leasing commissions in respect of which Borrower is obligated to
pay or reimburse certain tenant improvement costs and leasing commissions; (iv) Lender shall have received and approved a budget
for tenant improvement costs and a schedule of leasing commissions payments and the requested disbursement will be used to pay
all or a portion of such costs and payments; (v) Lender shall have received a certificate from Borrower (A) stating that all tenant
improvements at the Property to be funded by the requested disbursement have been completed in good and workmanlike manner and
in accordance with all applicable federal, state and local laws, rules and regulations, such certificate to be accompanied by a
copy of any license, permit or other approval by any Governmental Authority required in connection with the tenant improvements,
(B) identifying each Person that supplied materials or labor in connection with the tenant improvements to be funded by the requested
disbursement and (C) stating that each such Person has been paid in full or will be paid in full upon such disbursement, such certificate
to be accompanied by lien waivers, invoices and/or other evidence of payment satisfactory to Lender; (vi) at Lender’s option,
if the cost of any individual tenant improvement exceeds $25,000, a title search for the Property indicating that the Property
is free from all liens, claims and other encumbrances not previously approved by Lender; and (vii) Lender shall have received such
other evidence as Lender shall reasonably request that the tenant improvements at the Property and/or leasing commissions to be
funded by the requested disbursement have been completed (to the extent applicable), are due and payable and are paid for or will
be paid upon such disbursement to Borrower. Lender shall not be required to disburse Leasing Reserve Funds more frequently than
once each calendar month nor in an amount less than the Minimum Disbursement Amount (or a lesser amount if the total amount of
Leasing Reserve Funds is less than the Minimum Disbursement Amount, in which case only one disbursement of the amount remaining
in the account shall be made).

 

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Section
8.4.          Operating Expense Funds. On the first Monthly
Payment Date occurring after each occurrence of a Trigger Period, Borrower shall make a True Up Payment into the Operating Expense
Account. On each Monthly Payment Date occurring on and after the occurrence and continuance of a Trigger Period, Borrower shall
deposit (or shall cause there to be deposited) into an Eligible Account held by Lender or Servicer (the “Operating Expense
Account”) an amount equal to the aggregate amount of Approved Operating Expenses and Approved Extraordinary Expenses
to be incurred by Borrower for the then current Interest Accrual Period (such amount, the “Op Ex Monthly Deposit”).
Amounts deposited pursuant to this Section 8.4 are referred to herein as the “Operating Expense Funds”. Provided
no Event of Default has occurred and is continuing, Lender shall disburse the Operating Expense Funds to Borrower to pay Approved
Operating Expenses and/or Approved Extraordinary Expenses upon Borrower’s request (which such request shall be accompanied
by an Officer’s Certificate detailing the applicable expenses to which the requested disbursement relates and attesting that
such expense shall be paid with the requested disbursement).

 

Section
8.5.          Excess Cash Flow Funds.

 

(a)          On
each Monthly Payment Date occurring after the occurrence and continuance of a Trigger Period, Borrower shall deposit (or cause
to be deposited) into an Eligible Account with Lender or Servicer (the “Excess Cash Flow Account”) an amount
equal to the Excess Cash Flow generated by the Property for the immediately preceding Interest Accrual Period (each such monthly
deposit being herein referred to as the “Monthly Excess Cash Flow Deposits” and the amounts on deposit in the
Excess Cash Flow Reserve Account being herein referred to as the “Excess Cash Flow Funds”). Provided no Event
of Default has occurred and is continuing, any Excess Cash Flow Funds remaining in the Excess Cash Flow Account shall be disbursed
to Borrower upon the expiration of any Trigger Period in accordance with the applicable terms and conditions hereof; provided,
however, in the event of a HRA Trigger Period, upon the cure of such HRA Trigger Period in accordance with the terms hereof, provided
no other Trigger Period no Event of Default has occurred and is continuing, any Excess Cash Flow Funds remaining in the Excess
Cash Flow Account, less an amount equal to the HRA Excess Cash Flow Threshold shall be disbursed to Borrower, and such remainder
(the “HRA Trigger Deposit”) shall remain on deposit in the Excess Cash Flow Account, to be held as additional
security for Borrower’s obligations hereunder, subject to the immediately succeeding two sentences of this Section 8.5(a).
Notwithstanding the foregoing, Lender shall disburse to Borrower the HRA Trigger Deposit upon satisfaction by Borrower of each
of the following conditions: (i) Borrower shall submit a request for payment to Lender at least ten (10) days prior to the date
on which Borrower requests such payment be made; (ii) on the date such request is received by Lender and on the date such payment
is to be made, no Trigger Period shall exist and remain uncured; and (iii) Borrower shall provide evidence reasonably satisfactory
to Lender that the HRA Trigger Deposit Release Conditions have been satisfied. Further, in the event that the Leasing Reserve Account
contains insufficient amounts for purposes of permitted tenant improvements and leasing commissions expenses incurred in connection
with the re-leasing and re-tenanting of the space currently demised pursuant to the NYC EPA Lease and/or the NYC HRA Lease (the
“NYC Demised Space TI/LC Expenses”), Borrower shall be permitted to disbursements of portions of the HRA Trigger
Deposit for purposes of reimbursement for or payment of permitted NYC Demised Space TI/LC Expenses upon the satisfaction of all
requirements contained in Section 8.3 applicable to the disbursement of the Leasing Reserve Funds, as the same shall be deemed
applicable to such disbursement of the HRA Trigger Deposit.

 

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(b)          Notwithstanding
the foregoing, in the event that a Trigger Period exists solely due to the occurrence and continuance of an HRA Trigger Event (an
“HRA Trigger Period”), all Excess Cash Flow generated by the Property shall be deposited in the Excess Cash
Flow Account until such time as the Excess Cash Flow Funds equal the amount of the HRA Sweep Cap (the “HRA Excess Cash
Flow Threshold”).

 

Section
8.6.          Tax and Insurance Funds. In addition to the initial
deposits with respect to Taxes and, if applicable, Insurance Premiums made by Borrower to Lender on the Closing Date to be held
in Eligible Accounts by Lender or Servicer and hereinafter respectively referred to as the “Tax Account” and
the “Insurance Account”, Borrower shall pay (or cause to be paid) to Lender on each Monthly Payment Date (a)
one-twelfth of an amount which would be sufficient to pay the Taxes payable, or estimated by Lender to be payable, during the next
ensuing twelve (12) months assuming that said Taxes are to be paid in full on the Tax Payment Date (the “Monthly Tax Deposit”),
each of which such deposits shall be held in the Tax Account, and (b) at the option of Lender, if the liability or casualty Policy
maintained by Borrower covering the Property shall not constitute an approved blanket or umbrella Policy pursuant to Subsection
7.1(c) hereof, or Lender shall require Borrower to obtain a separate Policy pursuant to Subsection 7.1(c) hereof, one-twelfth of
an amount which would be sufficient to pay the Insurance Premiums due for the renewal of the coverage afforded by the Policies
upon the expiration thereof (the “Monthly Insurance Deposit”), each of which such deposits shall be held in
the Insurance Account (amounts held in the Tax Account and the Insurance Account are collectively herein referred to as the “Tax
and Insurance Funds”). In the event Lender shall elect, after the Closing Date, to collect payments in escrow for Insurance
Premiums or Taxes, Borrower shall make a True Up Payment with respect to the same into the applicable Reserve Account. Additionally,
if, at any time, Lender determines that amounts on deposit or scheduled to be deposited in (i) the Tax Account will be insufficient
to pay all applicable Taxes in full on the Tax Payment Date and/or (ii) the Insurance Account will be insufficient to pay all applicable
Insurance Premiums in full on the Insurance Payment Date, Borrower shall make a True Up Payment with respect to such insufficiency
into the applicable Reserve Account. Borrower agrees to notify Lender immediately of any changes to the amounts, schedules and
instructions for payment of any Taxes and Insurance Premiums of which it has or obtains knowledge and authorizes Lender or its
agent to obtain the bills for Taxes directly from the appropriate taxing authority. Provided there are sufficient amounts in the
Tax Account and Insurance Account, respectively, and no Event of Default exists, Lender shall be obligated to pay the Taxes and
Insurance Premiums as they become due on their respective due dates on behalf of Borrower by applying the Tax and Insurance Funds
to the payment of such Taxes and Insurance Premiums. If the amount of the Tax and Insurance Funds shall exceed the amounts due
for Taxes and Insurance Premiums pursuant to Sections 4.5 and 7.1 hereof, Lender shall, in its discretion, return any excess to
Borrower or credit such excess against future payments to be made to the Tax and Insurance Funds.

 

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Section
8.7.          The Accounts Generally.

 

(a)          Borrower
grants to Lender a first-priority perfected security interest in each of the Accounts and any and all sums now or hereafter deposited
in the Accounts as additional security for payment of the Debt. Until expended or applied in accordance herewith, the Accounts
and the funds deposited therein shall constitute additional security for the Debt. The provisions of this Section 8.7 (together
with the other related provisions of the other Loan Documents) are intended to give Lender and/or Servicer “control”
of the Accounts and the Account Collateral and serve as a “security agreement” and a “control agreement”
with respect to the same, in each case, within the meaning of the UCC. Borrower acknowledges and agrees that the Accounts are subject
to the sole dominion, control and discretion of Lender, its authorized agents or designees, subject to the terms hereof, and Borrower
shall have no right of withdrawal with respect to any Account except with the prior written consent of Lender or as otherwise provided
herein. The funds on deposit in the Accounts shall not constitute trust funds and may be commingled with other monies held by Lender.

 

(b)          Borrower
shall not, without obtaining the prior written consent of Lender, further pledge, assign or grant any security interest in the
Accounts or the sums deposited therein or permit any lien to attach thereto, or any levy to be made thereon, or any UCC-1 Financing
Statements, except those naming Lender as the secured party, to be filed with respect thereto. Borrower hereby authorizes Lender
to file a financing statement or statements under the UCC in connection with any of the Accounts and the Account Collateral in
the form required to properly perfect Lender’s security interest therein. Borrower agrees that at any time and from time
to time, at the expense of Borrower, Borrower will promptly execute and deliver all further instruments and documents, and take
all further action, that may be reasonably necessary or desirable, or that Lender may reasonably request, in order to perfect and
protect any security interest granted or purported to be granted hereby (including, without limitation, any security interest in
and to any Permitted Investments) or to enable Lender to exercise and enforce its rights and remedies hereunder with respect to
any Account or Account Collateral.

 

(c)          Notwithstanding
anything to the contrary contained herein or in any other Loan Document, upon the occurrence and during the continuance of an Event
of Default, without notice from Lender or Servicer (i) Borrower shall have no rights in respect of the Accounts, (ii) Lender
may liquidate and transfer any amounts then invested in Permitted Investments pursuant to the applicable terms hereof to the Accounts
or reinvest such amounts in other Permitted Investments as Lender may reasonably determine is necessary to perfect or protect any
security interest granted or purported to be granted hereby or pursuant to the other Loan Documents or to enable Lender to exercise
and enforce Lender’s rights and remedies hereunder or under any other Loan Document with respect to any Account or any Account
Collateral, and (iii) Lender shall have all rights and remedies with respect to the Accounts and the amounts on deposit therein
and the Account Collateral as described in this Agreement and in the Security Instrument, in addition to all of the rights and
remedies available to a secured party under the UCC, and, notwithstanding anything to the contrary contained in this Agreement
or in the Security Instrument, may apply the amounts of such Accounts as Lender determines in its sole discretion including, but
not limited to, payment of the Debt.

 

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(d)          The
insufficiency of funds on deposit in the Accounts shall not absolve Borrower of the obligation to make any payments, as and when
due pursuant to this Agreement and the other Loan Documents, and such obligations shall be separate and independent, and not conditioned
on any event or circumstance whatsoever.

 

(e)          Borrower
shall indemnify Lender and hold Lender harmless from and against any and all actions, suits, claims, demands, liabilities, losses,
damages, obligations and costs and expenses (including litigation costs and reasonable attorneys fees and expenses) arising from
or in any way connected with the Accounts, the sums deposited therein or the performance of the obligations for which the Accounts
were established, except to the extent arising from the gross negligence or willful misconduct of Lender, its agents or employees.
Borrower shall assign to Lender all rights and claims Borrower may have against all Persons supplying labor, materials or other
services which are to be paid from or secured by the Accounts; provided, however, that Lender may not pursue any such right or
claim unless an Event of Default has occurred and remains uncured.

 

(f)          Borrower
and Lender (or Servicer on behalf of Lender) shall maintain each applicable Account as an Eligible Account, except as otherwise
expressly agreed to in writing by Lender. In the event that Lender or Servicer no longer satisfies the criteria for an Eligible
Institution, Borrower shall cooperate with Lender in transferring the applicable Accounts to an institution that satisfies such
criteria. Borrower hereby grants Lender power of attorney (irrevocable for so long as the Loan is outstanding) with respect to
any such transfers and the establishment of accounts with a successor institution.

 

(g)          Interest
accrued on any Account other than an Interest Bearing Account shall not be required to be remitted either to Borrower or to any
Account and may instead be retained by Lender. Funds deposited in the Interest Bearing Accounts shall be invested in Permitted
Investments as provided for in Section 8.7(h) hereof. Interest accrued, if any, on sums on deposit in the Interest Bearing Accounts
shall be remitted to and become part of the applicable Account. All such interest that so becomes part of the applicable Account
shall be disbursed in accordance with the disbursement procedures contained herein applicable to such Account; provided, however,
that Lender may, at its election, retain any such interest for its own account during the occurrence and continuance of an Event
of Default.

 

(h)          Sums
on deposit in the Interest Bearing Accounts shall, upon Borrower’s written request, be invested in Permitted Investments
selected by Lender or Servicer provided (i) such investments are then regularly offered by Lender (or Servicer on behalf of Lender)
for accounts of this size, category and type (Borrower acknowledges that the Servicer or Lender may only offer as an investment
opportunity the right to place funds on deposit in the applicable Accounts in an interest bearing account (bearing interest at
the money market rate)), (ii) such investments are permitted by applicable federal, State and local rules, regulations and laws,
(iii) the maturity date of the Permitted Investment is not later than the date on which sums in the Interest Bearing Accounts are
required to be disbursed pursuant to the terms hereof, and (iv) no Event of Default shall have occurred and be continuing. All
income earned from the aforementioned Permitted Investments shall be property of Borrower and Borrower hereby irrevocably authorizes
and directs Lender (or Servicer on behalf of Lender) to hold any income earned from the aforementioned Permitted Investments as
part of the applicable Interest Bearing Account. Borrower shall be responsible for payment of any federal, State or local income
or other tax applicable to income earned from Permitted Investments. No other investments of the sums on deposit in the Interest
Bearing Accounts shall be permitted. Lender shall not be liable for any loss sustained on the investment of any funds in the Interest
Bearing Accounts.

 

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(i)          Borrower
acknowledges and agrees that it solely shall be, and shall at all times remain, liable to Lender or Servicer for all fees, charges,
costs and expenses actually incurred in connection with the Accounts, this Agreement and the enforcement hereof, including, without
limitation, any monthly or annual fees or charges as may be assessed by Lender or Servicer in connection with the administration
of the Accounts and the reasonable fees and expenses of legal counsel to Lender and Servicer as needed to enforce, protect or preserve
the rights and remedies of Lender and/or Servicer under this Agreement.

 

Section
8.8.          Letters of Credit.

 

(a)          This
Section shall apply to any Letters of Credit which are permitted to be delivered pursuant to the express terms and conditions hereof.
Other than in connection with any Letters of Credit delivered in connection with the closing of the Loan, Borrower shall give Lender
no less than ten (10) days written notice of Borrower’s election to deliver a Letter of Credit together with a draft of the
proposed Letter of Credit and Borrower shall pay to Lender all of Lender’s reasonable out-of-pocket costs and expenses in
connection therewith. No party other than Lender shall be entitled to draw on any such Letter of Credit. In the event that any
disbursement of any Reserve Funds relates to a portion thereof provided through a Letter of Credit, any “disbursement”
of said funds as provided above shall be deemed to refer to (i) Borrower providing Lender a replacement Letter of Credit in
an amount equal to the original Letter of Credit posted less the amount of the applicable disbursement provided hereunder and (ii)
Lender, after receiving such replacement Letter of Credit, returning such original Letter of Credit to Borrower; provided, that,
no replacement Letter of Credit shall be required with respect to the final disbursement of the applicable Reserve Funds such that
no further sums are required to be deposited in the applicable Reserve Funds.

 

(b)          Each
Letter of Credit delivered hereunder shall be additional security for the payment of the Debt. Upon the occurrence and during the
continuance of an Event of Default, Lender shall have the right, at its option, to draw on any Letter of Credit and to apply all
or any part thereof to the payment of the items for which such Letter of Credit was established or to apply each such Letter of
Credit to payment of the Debt in such order, proportion or priority as Lender may determine. Any such application to the Debt shall
be subject to the terms and conditions hereof relating to application of sums to the Debt. Lender shall have the additional rights
to draw in full any Letter of Credit: (i) if Lender has received a notice from the issuing bank that the Letter of Credit will
not be renewed and a substitute Letter of Credit is not provided at least forty five (45) days prior to the date on which the outstanding
Letter of Credit is scheduled to expire; (ii) if Lender has not received a notice from the issuing bank that it has renewed the
Letter of Credit at least thirty (30) days prior to the date on which such Letter of Credit is scheduled to expire and a substitute
Letter of Credit is not provided at least thirty (30) days prior to the date on which the outstanding Letter of Credit is
scheduled to expire; (iii) upon receipt of notice from the issuing bank that the Letter of Credit will be terminated (except if
the termination of such Letter of Credit is permitted pursuant to the terms and conditions hereof or a substitute Letter of Credit
is provided by no later than forty five (45) days prior to such termination); (iv) if Lender has received notice that the bank
issuing the Letter of Credit shall cease to be an Approved Bank and Borrower has not substituted a Letter of Credit from an Approved
Bank within fifteen (15) days after notice; and/or (v) if the bank issuing the Letter of Credit shall fail to (A) issue a replacement
Letter of Credit in the event the original Letter of Credit has been lost, mutilated, stolen and/or destroyed or (B) consent to
the transfer of the Letter of Credit to any Person designated by Lender. If Lender draws upon a Letter of Credit pursuant to the
terms and conditions of this Agreement, provided no Event of Default exists, Lender shall apply all or any part thereof for the
purposes for which such Letter of Credit was established. Notwithstanding anything to the contrary contained in the above, Lender
is not obligated to draw any Letter of Credit upon the happening of an event specified in (i), (ii), (iii), (iv) or (v) above and
shall not be liable for any losses sustained by Borrower due to the insolvency of the bank issuing the Letter of Credit if Lender
has not drawn the Letter of Credit.

 

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Section
8.9.          Required Violation Removal Reserve Account. On
the Closing Date, Borrower shall deposit $33,125 into an Eligible Account by Lender or Servicer (the “Required
Violation Removal Reserve Account”) to be held as additional security for the Borrower’s obligations hereunder.,
Lender shall disburse to Borrower the 50% of the funds on deposit in the Required Violation Removal Reserve Account upon satisfaction
by Borrower of each of the following conditions: (i) Borrower shall submit a request for payment to Lender at least ten (10) days
prior to the date on which Borrower requests such payment be made; (ii) on the date such request is received by Lender and on the
date such payment is to be made, no Event of Default shall have occurred and remain uncured; and (iii) Borrower shall provide evidence
reasonably satisfactory to Lender that the 50% Required Violation Removal Reserve Release Conditions have been satisfied. Lender
further agrees that it shall disburse to Borrower the remaining funds on deposit in the Required Violation Removal Reserve Account
upon satisfaction by Borrower of each of the following conditions: (i) Borrower shall submit a request for payment to Lender at
least ten (10) days prior to the date on which Borrower requests such payment be made; (ii) on the date such request is received
by Lender and on the date such payment is to be made, no Event of Default shall have occurred and remain uncured; and (iii) Borrower
shall provide evidence reasonably satisfactory to Lender that the Required Violation Removal Work has been completed in full in
accordance with the terms hereof. Notwithstanding the foregoing

 

ARTICLE 9

 

CASH MANAGEMENT

 

Section
9.1.          Establishment of Certain Accounts.

 

(a)          Upon
the first occurrence of a Trigger Period, Borrower shall establish an Eligible Account (the “Restricted Account”)
pursuant to the Restricted Account Agreement in the name of Borrower for the sole and exclusive benefit of Lender into which Borrower
shall deposit, or cause to be deposited, all revenue generated by the Property. Pursuant to the Restricted Account Agreement, funds
on deposit in the Restricted Account shall be transferred on each Business Day to or at the direction of Borrower unless a Trigger
Period exists, in which case such funds shall be transferred on each Business Day to the Cash Management Account. At closing, Borrower
shall have delivered to Lender for Lender to hold in escrow the Restricted Account Agreement with the Bank executed by Borrower,
together with all other documents required by the Bank to be executed and completed by Borrower, and upon the occurrence of a Trigger
Period, Borrower authorizes Lender, at its option, to complete and deliver said Restricted Account Agreement and other documentation
to the Bank and to open the Restricted Account, and Borrower further authorizes Lender to complete and deliver such Tenant Direction
Notices as then held by Lender pursuant to Section 3.18 hereof. Upon the expiration of the first Trigger Period, Borrower shall
deliver to Lender undated replacement Tenant Direction Notices for each Tenant occupying space at the Property under a non-residential
Lease as of the date thereof, and upon the occurrence of the second Trigger Period, Borrower authorizes Lender, at its option,
to complete and deliver such Tenant Direction Notices.

 

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(b)          Upon
the first occurrence of a Trigger Period, Lender, on Borrower’s behalf, shall establish an Eligible Account (the “Cash
Management Account”) with Lender or Servicer, as applicable, in the name of Borrower for the sole and exclusive benefit
of Lender. Upon the first occurrence of a Trigger Period, Lender, on Borrower’s behalf, shall also establish with Lender
or Servicer an Eligible Account into which Borrower shall deposit, or cause to be deposited the amounts required for the payment
of Debt Service under the Loan (the “Debt Service Account”).

 

(c)          LENDER
AGREES TO PROVIDE WRITTEN NOTICE TO BORROWER IN ACCORDANCE WITH THE TERMS OF SECTION 14.1 HEREOF UPON LENDER’S DETERMINATION
OF THE OCCURRENCE OF A TRIGGER PERIOD DURING THE TERM OF THE LOAN AND THAT ALL CASH MANAGEMENT PROVISIONS HEREUNDER RELATING TO
THE EXISTENCE OF TRIGGER PERIOD ARE IN THEN EFFECT.

 

Section
9.2.          Deposits into the Restricted Account; Maintenance
of Restricted Account.

 

(a)          Borrower
represents, warrants and covenants that, (x) upon the occurrence of and during the continuance of the first Trigger Period and
(y) upon the occurrence of the second Trigger Period and thereafter for so long as the Debt remains outstanding (irrespective of
whether said second Trigger Period ceases to exist), and pursuant to Section 9.1 hereof, (i) Borrower shall (or in the event Borrower
has entered into a Management Agreement, shall cause Manager to) immediately deposit all revenue derived from the Property and
received by Borrower (or Manager, as the case may be), into the Restricted Account; (ii) Borrower shall, in the event Borrower
has entered into a Management Agreement, instruct Manager to immediately deposit (A) all revenue derived from the Property collected
by Manager, if any, pursuant to the Management Agreement (or otherwise) into the Restricted Account and (B) all funds otherwise
payable to Borrower by Manager pursuant to the Management Agreement (or otherwise in connection with the Property) into the Restricted
Account; (iii) (A) simultaneously with the execution of any non-residential Lease, or, in the event the Property is managed by
an Affiliated Manager, any Lease, on or after the date hereof in accordance with the applicable terms and conditions hereof, Borrower
shall furnish each Tenant under each such Lease a notice, substantially in the form of Exhibit A attached hereto, directing
them to pay all Rents and other sums due under the Lease to which they are a party into the Restricted Account (such notice, the
“Tenant Direction Notice”), and (B) Borrower shall continue to send the aforesaid Tenant Direction Notices until
each addressee thereof complies with the terms thereof; (iv) there shall be no other accounts maintained by Borrower or any other
Person into which revenues from the ownership and operation of the Property are directly deposited; and (v) neither Borrower nor
any other Person shall open any other such account with respect to the direct deposit of income in connection with the Property.
Until deposited into the Restricted Account, any Rents and other revenues from the Property held by Borrower shall be deemed to
be collateral and shall be held in trust by it for the benefit, and as the property, of Lender pursuant to the Security Instrument
and shall not be commingled with any other funds or property of Borrower. Borrower warrants and covenants that it shall not rescind,
withdraw or change any notices or instructions required to be sent by it pursuant to this Section 9.2 without Lender’s prior
written consent.

 

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(b)          Once
the Restricted Account is established in accordance with Section 9.1 hereof, Borrower shall maintain the Restricted Account for
so long as the Debt remains outstanding, which Restricted Account shall be under the sole dominion and control of Lender (subject
to the terms hereof and of the Restricted Account Agreement). The Restricted Account shall have a title evidencing the foregoing
in a manner reasonably acceptable to Lender. Borrower hereby grants to Lender a first-priority security interest in the Restricted
Account and all deposits at any time contained therein and the proceeds thereof and will take all actions necessary to maintain
in favor of Lender a perfected first priority security interest in the Restricted Account. Borrower hereby authorizes Lender to
file UCC Financing Statements and continuations thereof to perfect Lender’s security interest in the Restricted Account and
all deposits at any time contained therein and the proceeds thereof. All costs and expenses for establishing and maintaining the
Restricted Account (or any successor thereto) shall be paid by Borrower. All monies now or hereafter deposited into the Restricted
Account shall be deemed additional security for the Debt. Borrower shall not alter or modify either the Restricted Account or the
Restricted Account Agreement, in each case without the prior written consent of Lender. The Restricted Account Agreement shall
provide (and Borrower shall provide) Lender online access to bank and other financial statements relating to the Restricted Account
(including, without limitation, a listing of the receipts being collected therein). In connection with any Secondary Market Transaction,
Lender shall have the right to cause the Restricted Account to be entitled with such other designation as Lender may select to
reflect an assignment or transfer of Lender’s rights and/or interests with respect to the Restricted Account. Lender shall
provide Borrower with prompt written notice of any such renaming of the Restricted Account. Borrower shall not further pledge,
assign or grant any security interest in the Restricted Account or the monies deposited therein or permit any lien or encumbrance
to attach thereto, or any levy to be made thereon, or any UCC Financing Statements, except those naming Lender as the secured party,
to be filed with respect thereto. The Restricted Account (i) shall be an Eligible Account and (ii) shall not be commingled with
other monies held by Borrower or Bank. Upon (A) Bank ceasing to be an Eligible Institution, (B) the Restricted Account ceasing
to be an Eligible Account, (C) any resignation by Bank or termination of the Restricted Account Agreement by Bank or Lender and/or
(D) the occurrence and continuance of an Event of Default, Borrower shall, within fifteen (15) days of Lender’s request,
(1) terminate the existing Restricted Account Agreement, (2) appoint a new Bank (which such Bank shall (I) be an Eligible Institution,
(II) other than during the continuance of an Event of Default, be selected by Borrower and approved by Lender and (III) during
the continuance of an Event of Default, be selected by Lender), (3) cause such Bank to open a new Restricted Account (which such
account shall be an Eligible Account) and enter into a new Restricted Account Agreement with Lender on substantially the same terms
and conditions as the previous Restricted Account Agreement and (4) send any Notices and the other notices required pursuant to
the terms hereof relating to such new Restricted Account Agreement and Restricted Account. Borrower constitutes and appoints Lender
its true and lawful attorney-in-fact with full power of substitution to complete or undertake any action required of Borrower under
this Section 9.2 in the name of Borrower in the event Borrower fails to do the same. Such power of attorney shall be deemed to
be a power coupled with an interest and cannot be revoked.

 

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Section
9.3.          Disbursements from the Cash Management Account.
On each Monthly Payment Date, Lender or Servicer, as applicable, shall allocate all funds, if any, on deposit in the Cash Management
Account and disburse such funds in the following amounts and order of priority:

 

(a)          First,
funds sufficient to pay the Monthly Tax Deposit due for the then applicable Monthly Payment Date, if any, shall be deposited in
the Tax Account;

 

(b)          Second,
funds sufficient to pay the Monthly Insurance Deposit due for the then applicable Monthly Payment Date, if any, shall be deposited
in the Insurance Account;

 

(c)          Third,
funds sufficient to pay any interest accruing at the Default Rate and late payment charges, if any, shall be deposited into the
Debt Service Account;

 

(d)          Fourth,
funds sufficient to pay the Debt Service due on the then applicable Monthly Payment Date shall be deposited in the Debt Service
Account;

 

(e)          Fifth,
funds sufficient to pay the Office Replacement Reserve Monthly Deposit for the then applicable Monthly Payment Date, if any, shall
be deposited in the Office Replacement Reserve Account;

 

(f)          Sixth,
funds sufficient to pay the Residential Replacement Reserve Monthly Deposit for the then applicable Monthly Payment Date, if any,
shall be deposited in the Residential Replacement Reserve Account;

 

(g)          Seventh,
funds sufficient to pay the Leasing Reserve Monthly Deposit for the then applicable Monthly Payment Date, if any, shall be deposited
in the Leasing Reserve Account;

 

(h)          Eighth,
funds sufficient to pay any other amounts due and owing to Lender and/or Servicer pursuant to the terms hereof and/or of the other
Loan Documents, if any, shall be deposited with or as directed by Lender;

 

(i)          Ninth,
to the extent that a Trigger Period has occurred and is continuing, funds sufficient to pay the Op Ex Monthly Deposit for the then
applicable Monthly Payment Date, if any, shall be deposited in the Operating Expense Account; and

 

(j)          Tenth,
all amounts remaining in the Cash Management Account after deposits for items (a) through (i) above (“Excess Cash
Flow”) shall (i) to the extent that a Trigger Period has occurred and is continuing, be deposited into the Excess Cash
Flow Account, and (ii) to the extent that no Trigger Period exists, be disbursed to Borrower.

 

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Section
9.4.          Withdrawals from the Debt Service Account. Prior
to the occurrence and continuance of an Event of Default, funds on deposit in the Debt Service Account, if any, shall be used to
pay Debt Service when due, together with any late payment charges or interest accruing at the Default Rate.

 

Section
9.5.          Payments Received Under this Agreement. Notwithstanding
anything to the contrary contained in this Agreement or the other Loan Documents, provided no Event of Default has occurred and
is continuing, Borrower’s obligations with respect to the monthly payment of Debt Service and amounts due for the Reserve
Accounts shall (provided Lender is not prohibited from withdrawing or applying any funds in the applicable Accounts by operation
of law or otherwise) be deemed satisfied to the extent sufficient amounts are deposited in applicable Accounts to satisfy such
obligations on the dates each such payment is required, regardless of whether any of such amounts are so applied by Lender.

 

ARTICLE 10

 

EVENTS OF DEFAULT; REMEDIES

 

Section
10.1.          Event of Default.

 

The occurrence of any
one or more of the following events shall constitute an “Event of Default”:

 

(a)          if
(A) any monthly Debt Service payment or the payment due on the Maturity Date is not paid when due, (B) any deposit to any of the
Accounts required hereunder or under the other Loan Documents is not paid when due or (C) any other portion of the Debt is not
paid when due and such non-payment continues for five (5) days following notice to Borrower that the same is due and payable;

 

(b)          if
any of the Taxes or Other Charges are not paid when the same are due and payable except to the extent sums sufficient to pay such
Taxes and Other Charges have been deposited with Lender in accordance with the terms of this Agreement and Lender’s access
to such sums is not restricted or constrained in any manner;

 

(c)          if
the Policies are not kept in full force and effect or if evidence of the same is not delivered to Lender as provided in Section
7.1 hereof;

 

(d)          if
any of the representations or covenants contained in Article 5, Article 6, Section 3.34 or Section 4.22 hereof are breached or
violated;

 

(e)          if
any representation or warranty made herein, in the Guaranty or in the Environmental Indemnity or in any other guaranty, or in any
certificate, report, financial statement or other instrument or document furnished to Lender in connection with the Loan shall
have been false or misleading in any material adverse respect when made;

 

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(f)          if
(i) Borrower, any SPE Component Entity, Sponsor or Guarantor shall commence any case, proceeding or other action (A) under any
Creditors Rights Laws seeking to have an order for relief entered with respect to it, or seeking to adjudicate it a bankrupt or
insolvent, or seeking reorganization, liquidation or dissolution, or (B) seeking appointment of a receiver, trustee, custodian,
conservator or other similar official for it or for all or any substantial part of its assets, or Borrower or any managing member
or general partner of Borrower, any SPE Component Entity, Sponsor or Guarantor shall make a general assignment for the benefit
of its creditors; (ii) there shall be commenced against Borrower or any managing member or general partner of Borrower, any SPE
Component Entity, Sponsor or Guarantor any case, proceeding or other action of a nature referred to in clause (i) above (other
than any case, action or proceeding already constituting an Event of Default by operation of the other provisions of this subsection)
which (A) results in the entry of an order for relief or any such adjudication or appointment or (B) remains undismissed, undischarged
or unbonded for a period of sixty (60) days; (iii) there shall be commenced against Borrower, any SPE Component Entity, Sponsor
or Guarantor any case, proceeding or other action seeking issuance of a warrant of attachment, execution, distraint or similar
process against all or any substantial part of its assets (other than any case, action or proceeding already constituting an Event
of Default by operation of the other provisions of this subsection) which results in the entry of any order for any such relief
which shall not have been vacated, discharged, or stayed or bonded pending appeal within sixty (60) days from the entry thereof;
(iv) Borrower, any SPE Component Entity, Sponsor or Guarantor shall take any action in furtherance of, in collusion with respect
to, or indicating its consent to, approval of, or acquiescence in, any of the acts set forth in clause (i), (ii), or (iii) above;
(v) Borrower, any SPE Component Entity, Sponsor or Guarantor shall generally not, or shall be unable to, or shall admit in writing
its inability to, pay its debts as they become due; (vi) any Restricted Party is substantively consolidated with any other entity
in connection with any proceeding under the Bankruptcy Code or any other Creditors Rights Laws involving Sponsor or its subsidiaries;
or (vii) a Bankruptcy Event occurs;

 

(g)          if
Borrower shall be in default beyond applicable notice and grace periods under any other mortgage, deed of trust, deed to secure
debt or other security agreement covering any part of the Property whether it be superior or junior in lien to the Security Instrument;

 

(h)          if
the Property becomes subject to any mechanic’s, materialman’s or other lien other than a lien for any Taxes not then
due and payable and the lien shall remain undischarged of record (by payment, bonding or otherwise) for a period of thirty (30)
days;

 

(i)          if
any federal tax lien is filed against Borrower, any SPE Component Entity, Sponsor, Guarantor or the Property and same is not discharged
of record (by payment, bonding or otherwise) within thirty (30) days after same is filed;

 

(j)          if
Borrower shall fail to deliver to Lender, within ten (10) days after request by Lender, the estoppel certificates required by Section
4.13(a) or (c) hereof;

 

(k)          if
any default occurs under any guaranty or indemnity executed in connection herewith (including, without limitation, the Environmental
Indemnity and/or the Guaranty) and such default continues after the expiration of applicable grace periods, if any;

 

(l)          if
any of the assumptions contained in the Non-Consolidation Opinion, or in any New Non-Consolidation Opinion (including, without
limitation, in any schedules thereto and/or certificates delivered in connection therewith) are untrue or shall become untrue in
any material respect;

 

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(m)          if
Borrower has entered into a Management Agreement, and Borrower defaults under such Management Agreement beyond the expiration of
applicable notice and grace periods, if any, thereunder or if such Management Agreement is canceled, terminated or surrendered,
expires pursuant to its terms or otherwise ceased to be in full force and effect, unless, in each such case, Borrower, contemporaneously
with such cancellation, termination, surrendered, expiration or cessation, enters into a Qualified Management Agreement with a
Qualified Manager in accordance with the applicable terms and provisions hereof;

 

(n)          if
any representation and/or covenant herein relating to ERISA matters is breached;

 

(o)          if
any Borrower Party shall breach or violate of any of the terms or conditions contained in Section 11.1 and/or 11.6;

 

(p)          with
respect to any default or breach of any term, covenant or condition of this Agreement not specified in subsections (a) through
(o) above or not otherwise specifically specified as an Event of Default in this Agreement, if the same is not cured (i) within
ten (10) days after notice from Lender (in the case of any default which can be cured by the payment of a sum of money) or (ii)
for thirty (30) days after notice from Lender (in the case of any other default or breach); provided, that, with respect to any
default or breach specified in subsection (ii), if the same cannot reasonably be cured within such thirty (30) day period and Borrower
shall have commenced to cure the same within such thirty (30) day period and thereafter diligently and expeditiously proceeds to
cure the same, such thirty (30) day period shall be extended for so long as it shall require Borrower in the exercise of due diligence
to cure the same, such period to be determined in Lender’s sole discretion; or

 

(q)          if
any default shall exist under any of the other Loan Documents beyond any applicable cure periods contained in such Loan Documents
or if any other such event shall occur or condition shall exist, if the effect of such event or condition is to accelerate the
maturity of any portion of the Debt or to permit Lender to accelerate the maturity of all or any portion of the Debt.

 

Section
10.2.          Remedies.

 

(a)          Upon
the occurrence and during the continuance of an Event of Default (other than an Event of Default described in Section 10.1(f) above
with respect to Borrower or any SPE Component Entity) and at any time thereafter Lender may, in addition to any other rights or
remedies available to it pursuant to this Agreement, the Security Instrument, the Note and the other Loan Documents or at law or
in equity, take such action, without notice or demand, that Lender deems advisable to protect and enforce its rights against Borrower
and in the Property, including, without limitation, declaring the Debt to be immediately due and payable, and Lender may enforce
or avail itself of any or all rights or remedies provided in this Agreement, the Security Instrument, the Note and the other Loan
Documents against Borrower and the Property, including, without limitation, all rights or remedies available at law or in equity.
Upon any Event of Default described in Section 10.1(f) above with respect to Borrower or any SPE Component Entity, the Debt and
all other obligations of Borrower under this Agreement, the Security Instrument, the Note and the other Loan Documents shall immediately
and automatically become due and payable, without notice or demand, and Borrower hereby expressly waives any such notice or demand,
anything contained herein or in the Security Instrument, the Note and the other Loan Documents to the contrary notwithstanding.

 

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(b)          Upon
the occurrence and during the continuance of an Event of Default, all or any one or more of the rights, powers, privileges and
other remedies available to Lender against Borrower under this Agreement, the Security Instrument, the Note or the other Loan Documents
executed and delivered by, or applicable to, Borrower or at law or in equity may be exercised by Lender at any time and from time
to time, whether or not all or any of the Debt shall be declared due and payable, and whether or not Lender shall have commenced
any foreclosure proceeding or other action for the enforcement of its rights and remedies under this Agreement, the Security Instrument,
the Note or the other Loan Documents with respect to the Property. Any such actions taken by Lender shall be cumulative and concurrent
and may be pursued independently, singularly, successively, together or otherwise, at such time and in such order as Lender may
determine in its sole discretion, to the fullest extent permitted by applicable law, without impairing or otherwise affecting the
other rights and remedies of Lender permitted by applicable law, equity or contract or as set forth herein or in the Security Instrument,
the Note or the other Loan Documents. No delay or omission to exercise any remedy, right or power accruing upon an Event of Default
shall impair any such remedy, right or power or shall be construed as a waiver thereof, but any such remedy, right or power may
be exercised from time to time and as often as may be deemed expedient. A waiver of one Default or Event of Default with respect
to Borrower shall not be construed to be a waiver of any subsequent Default or Event of Default by Borrower or to impair any remedy,
right or power consequent thereon.

 

(c)          Lender
shall have the right from time to time to partially foreclose the Security Instrument in any manner and for any amounts secured
by the Security Instrument then due and payable as determined by Lender in its sole discretion including, without limitation, the
following circumstances: (i) in the event Borrower defaults beyond any applicable grace period in the payment of one or more scheduled
payments of principal and interest, Lender may foreclose the Security Instrument to recover such delinquent payments, or (ii) in
the event Lender elects to accelerate less than the entire outstanding principal balance of the Loan, Lender may foreclose the
Security Instrument to recover so much of the principal balance of the Loan as Lender may accelerate and such other sums secured
by the Security Instrument as Lender may elect. Notwithstanding one or more partial foreclosures, the Property shall remain subject
to the Security Instrument to secure payment of sums secured by the Security Instrument and not previously recovered.

 

(d)          Lender
shall have the right from time to time to sever the Note and the other Loan Documents into one or more separate notes, security
instruments and other security documents (the “Severed Loan Documents”) in such denominations as Lender shall
determine in its sole discretion for purposes of evidencing and enforcing its rights and remedies provided hereunder. Borrower
shall execute and deliver to Lender from time to time, promptly after the request of Lender, a severance agreement and such other
documents as Lender shall request in order to effect the severance described in the preceding sentence, all in form and substance
reasonably satisfactory to Lender. Borrower hereby absolutely and irrevocably appoints Lender as its true and lawful attorney,
coupled with an interest, in its name and stead to make and execute all documents necessary or desirable to effect the aforesaid
severance, Borrower ratifying all that its said attorney shall do by virtue thereof; provided, however, Lender shall not make or
execute any such documents under such power until three (3) days after notice has been given to Borrower by Lender of Lender’s
intent to exercise its rights under such power. Borrower shall not be obligated to pay any costs or expenses incurred in connection
with the preparation, execution, recording or filing of the Severed Loan Documents and the Severed Loan Documents shall not contain
any representations, warranties or covenants not contained in the Loan Documents and any such representations and warranties contained
in the Severed Loan Documents will be given by Borrower only as of the Closing Date.

 

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(e)          Notwithstanding
anything to the contrary contained herein or in any other Loan Document, any amounts recovered from the Property or any other collateral
for the Loan and/or paid to or received by Lender may, after an Event of Default, be applied by Lender toward the Debt in such
order, priority and proportions as Lender in its sole discretion shall determine.

 

(f)          Lender
may, but without any obligation to do so and without notice to or demand on Borrower and without releasing Borrower from any obligation
hereunder or being deemed to have cured any Event of Default hereunder, make, do or perform any obligation of Borrower hereunder
in such manner and to such extent as Lender may deem necessary. Lender is authorized to enter upon the Property for such purposes,
or appear in, defend, or bring any action or proceeding to protect its interest in the Property for such purposes, and the cost
and expense thereof (including reasonable attorneys’ fees to the extent permitted by applicable law), with interest as provided
in this Section, shall constitute a portion of the Debt and shall be due and payable to Lender upon demand. All such costs and
expenses incurred by Lender in remedying such Event of Default or such failed payment or act or in appearing in, defending, or
bringing any action or proceeding shall bear interest at the Default Rate, for the period after such cost or expense was incurred
into the date of payment to Lender. All such costs and expenses incurred by Lender together with interest thereon calculated at
the Default Rate shall be deemed to constitute a portion of the Debt and be secured by the liens, claims and security interests
provided to Lender under the Loan Documents and shall be immediately due and payable upon demand by Lender therefore.

 

ARTICLE 11

 

SECONDARY MARKET

 

Section
11.1.          Securitization.

 

(a)          Lender
shall have the right (i) to sell or otherwise transfer the Loan (or any portion thereof and/or interest therein), (ii) to sell
participation interests in the Loan (or any portion thereof and/or interest therein) or (iii) to securitize the Loan (or any portion
thereof and/or interest therein) in a single asset securitization or a pooled asset securitization. The transaction referred to
in clauses (i), (ii) and (iii) above shall hereinafter be referred to collectively as “Secondary Market Transactions”
and the transactions referred to in clause (iii) shall hereinafter be referred to as a “Securitization”.
Any certificates, notes or other securities issued in connection with a Securitization are hereinafter referred to as “Securities”.

 

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(b)          If
requested by Lender, Borrower shall, at Lender’s reasonable cost and expense, assist Lender in satisfying the market standards
to which Lender customarily adheres or which may be reasonably required in the marketplace or by the Rating Agencies in connection
with any Secondary Market Transactions, including, without limitation, to:

 

(i)          provide
(A) updated financial and other information with respect to the Property, the business operated at the Property, Borrower, Guarantor,
Sponsor, SPE Component Entity and Manager (if any), (B) updated budgets relating to the Property, and (C) updated appraisals, market
studies, environmental reviews (Phase I’s and, if appropriate, Phase II’s), property condition reports and other due
diligence investigations of the Property (the “Updated Information”), together, if customary, with appropriate
verification of the Updated Information through letters of auditors or opinions of counsel acceptable to Lender and the Rating
Agencies;

 

(ii)         provide
new and/or updated opinions of counsel, which may be relied upon by Lender, the Rating Agencies and their respective counsel, agents
and representatives, as to substantive non-consolidation, fraudulent conveyance, matters of Delaware or Maryland (as applicable)
and federal bankruptcy law relating to limited liability companies, true sale and any other opinion customary in Secondary Market
Transactions or required by the Rating Agencies with respect to the Property, Borrower and Borrower’s Affiliates, which counsel
and opinions shall be satisfactory in form and substance to Lender and the Rating Agencies;

 

(iii)        provide
updated, as of the closing date of the Secondary Market Transaction, representations and warranties made in the Loan Documents
and such additional representations and warranties as the Rating Agencies may require; and

 

(iv) execute such amendments
to the Loan Documents and Borrower’s or any SPE Component Entity’s organizational documents as may be reasonably requested
by Lender or requested by the Rating Agencies or otherwise to effect any Secondary Market Transaction, including, without limitation,
(A) to amend and/or supplement the Independent Director provisions provided herein and therein, in each case, in accordance with
the applicable requirements of the Rating Agencies, (B) bifurcating the Loan into two or more components and/or additional separate
notes and/or creating additional senior/subordinate note structure(s) (any of the foregoing, a “Loan Bifurcation”)
and (C) to modify all operative dates (including but not limited to payment dates, interest period start dates and end dates, etc.)
under the Loan Documents, by up to ten (10) days; provided, however, that Borrower shall not be required to so modify or amend
any Loan Document if such modification or amendment (1) would change the interest rate, the stated maturity (except as provided
in subclause (C) above) or the amortization of principal set forth herein, except in connection with a Loan Bifurcation which may
result in varying fixed interest rates and amortization schedules, but which shall have the same initial weighted average coupon
of the original Note, or (2) materially increase Borrower’s obligations or decrease Borrower’s rights under the Loan
Documents.

 

(c)          Upon
request, Borrower shall furnish to Lender from time to time such financial data and financial statements as Lender determines to
be necessary, advisable or appropriate for complying with any applicable legal requirements (including those applicable to Lender
or any Servicer (including, without limitation and to the extent applicable, Regulation AB)) within the timeframes necessary, advisable
or appropriate in order to comply with such legal requirements.

 

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Section
11.2.          Disclosure.

 

(a)          Borrower
(on its own behalf and on behalf of each other Borrower Party) understands that information provided to Lender by Borrower, any
other Borrower Party and/or their respective agents, counsel and representatives may be (i) included in (A) the Disclosure Documents
and (B) filings under the Securities Act and/or the Exchange Act and (ii) made available to Investors, the Rating Agencies and
service providers, in each case, in connection with any Secondary Market Transaction.

 

(b)          Borrower
shall indemnify Lender and its officers, directors, partners, employees, representatives, agents and affiliates against any losses,
claims, damages or liabilities (collectively, the “Liabilities”) to which Lender and/or its officers, directors,
partners, employees, representatives, agents and/or affiliates may become subject in connection with (x) any Disclosure Document
and/or any Covered Rating Agency Information, in each case, insofar as such Liabilities arise out of or are based upon any untrue
statement of any material fact in the Provided Information and/or arise out of or are based upon the omission to state a material
fact in the Provided Information required to be stated therein or necessary in order to make the statements in the applicable Disclosure
Document and/or Covered Rating Agency Information, in light of the circumstances under which they were made, not misleading, and
(y) after a Securitization, any indemnity obligations incurred by Lender or Servicer in connection with any Rating Agency Confirmation.

 

(c)          Promptly
after receipt by an indemnified party under this Section 11.2 of notice of the commencement of any action, such indemnified party
will, if a claim in respect thereof is to be made against the indemnifying party under this Section 11.2, notify the indemnifying
party in writing of the commencement thereof (but the omission to so notify the indemnifying party will not relieve the indemnifying
party from any liability which the indemnifying party may have to any indemnified party hereunder except to the extent that failure
to notify causes prejudice to the indemnifying party). In the event that any action is brought against any indemnified party, and
it notifies the indemnifying party of the commencement thereof, the indemnifying party will be entitled, jointly with any other
indemnifying party, to participate therein and, to the extent that it (or they) may elect by written notice delivered to the indemnified
party promptly after receiving the aforesaid notice from such indemnified party, to assume the defense thereof with counsel satisfactory
to such indemnified party. After notice from the indemnifying party to such indemnified party under this Section 11.2, such indemnifying
party shall pay for any legal or other expenses subsequently incurred by such indemnifying party in connection with the defense
thereof; provided, however, if the defendants in any such action include both the indemnified party and the indemnifying party
and the indemnified party shall have reasonably concluded that there are any legal defenses available to it and/or other indemnified
parties that are different from or additional to those available to the indemnifying party, the indemnified party or parties shall
have the right to select separate counsel to assert such legal defenses and to otherwise participate in the defense of such action
on behalf of such indemnified party at the cost of the indemnifying party.

 

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(d)          The
liabilities and obligations of both Borrower and Lender under this Section 11.2 shall survive the termination of this Agreement
and the satisfaction and discharge of the Debt. Failure by Borrower and/or any Borrower Party to comply with the provisions of
Section 11.1 and/or Section 11.2 within the timeframes specified therein and/or as otherwise required by Lender shall, at Lender’s
option, constitute a breach of the terms thereof and/or an Event of Default. Borrower (on its own behalf and on behalf of each
Borrower Party) hereby expressly authorizes and appoints Lender its attorney-in-fact to take any actions required of any Borrower
Party under Sections 11.1, 11.2 and/or 11.6 in the event any Borrower Party fails to do the same, which power of attorney shall
be irrevocable and shall be deemed to be coupled with an interest.

 

Section
11.3.          Reserves/Escrows. In the event that Securities
are issued in connection with the Loan, all funds held by Lender in escrow or pursuant to reserves in accordance with this Agreement
and the other Loan Documents shall be deposited in “eligible accounts” at “eligible institutions” and,
to the extent applicable, invested in “permitted investments” as then defined and required by the Rating Agencies.

 

Section
11.4.          Servicer. At the option of Lender, the Loan
may be serviced by a servicer/special servicer/trustee selected by Lender (collectively, the “Servicer”) and
Lender may delegate all or any portion of its responsibilities under this Agreement and the other Loan Documents to such Servicer
pursuant to a servicing agreement between Lender and such Servicer. In no event shall Borrower be responsible for any routine and/or
recurring fees due to a master servicer in connection with the day to day servicing of the Loan.

 

Section
11.5.          Rating Agency Costs. In connection with any
Rating Agency Confirmation or other Rating Agency consent, approval or review required hereunder (other than the initial review
of the Loan by the Rating Agencies in connection with a Securitization), Borrower shall pay all of the costs and expenses of Lender,
Servicer and each Rating Agency in connection therewith, and, if applicable, shall pay any fees imposed by any Rating Agency in
connection therewith.

 

Section
11.6.          Mezzanine Option. Lender shall have the option
(the “Mezzanine Option”) at any time to divide the Loan into two parts, a mortgage loan and a mezzanine loan,
provided, that (i) the total loan amounts for such mortgage loan and such mezzanine loan shall equal the then outstanding amount
of the Loan immediately prior to Lender’s exercise of the Mezzanine Option, and (ii) the weighted average interest rate of
such mortgage loan and mezzanine loan shall initially equal the Interest Rate. Borrower shall, at Lender’s sole cost and
expense (other than de minimis costs and expenses), cooperate with Lender in Lender’s exercise of the Mezzanine Option in
good faith and in a timely manner, which such cooperation shall include, but not be limited to, (i) executing such amendments to
the Loan Documents and Borrower or any SPE Component Entity’s organizational documents as may be reasonably requested by
Lender or requested by the Rating Agencies, (ii) creating one or more Single Purpose Entities (the “Mezzanine Borrower”),
which such Mezzanine Borrower shall (A) own, directly or indirectly, 100% of the equity ownership interests in Borrower (the “Equity
Collateral”), and (B) together with such constituent equity owners of such Mezzanine Borrower as may be designated by
Lender, execute such agreements, instruments and other documents as may be required by Lender in connection with the mezzanine
loan (including, without limitation, a promissory note evidencing the mezzanine loan and a pledge and security agreement pledging
the Equity Collateral to Lender as security for the mezzanine loan); and (iii) delivering such opinions, title endorsements, UCC
title insurance policies, documents and other materials as may be required by Lender or the Rating Agencies.

 

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Section
11.7.          Conversion to Registered Form. At the request
of Lender, Borrower shall appoint, as its agent, a registrar and transfer agent (the “Registrar”) reasonably
acceptable to Lender which shall maintain, subject to such reasonable regulations as it shall provide, such books and records as
are necessary for the registration and transfer of the Note in a manner that shall cause the Note to be considered to be in registered
form for purposes of Section 163(f) of the IRS Code. The option to convert the Note into registered form once exercised may not
be revoked. Any agreement setting out the rights and obligation of the Registrar shall be subject to the reasonable approval of
Lender. Borrower may revoke the appointment of any particular person as Registrar, effective upon the effectiveness of the appointment
of a replacement Registrar. The Registrar shall not be entitled to any fee from Borrower or Lender or any other lender in respect
of transfers of the Note and other Loan Documents.

 

Section
11.8.          General Borrower’s Costs of Compliance.
Except as otherwise provided for herein, all third-party out of pocket costs and expenses incurred by Borrower in connection with
its cooperation and satisfaction of obligations pursuant to Section 11.1, other than de minimis costs and expenses of Borrower,
shall be the responsibility of Lender.

 

ARTICLE 12

 

INDEMNIFICATIONS

 

Section
12.1.          General Indemnification. Borrower shall, at
its sole cost and expense, protect, defend, indemnify, release and hold harmless the Indemnified Parties from and against any and
all Losses imposed upon or incurred by or asserted against any Indemnified Parties and directly or indirectly arising out of or
in any way relating to any one or more of the following: (a) any accident, injury to or death of persons or loss of or damage
to property occurring in, on or about the Property or any part thereof or on the adjoining sidewalks, curbs, adjacent property
or adjacent parking areas, streets or ways; (b) any use, nonuse or condition in, on or about the Property or any part thereof or
on the adjoining sidewalks, curbs, adjacent property or adjacent parking areas, streets or ways; (c) performance of any labor or
services or the furnishing of any materials or other property in respect of the Property or any part thereof; (d) any failure of
the Property to be in compliance with any applicable Legal Requirements; (e) any and all claims and demands whatsoever which may
be asserted against Lender by reason of any alleged obligations or undertakings on its part to perform or discharge any of the
terms, covenants, or agreements contained in any Lease; (f) the payment of any commission, charge or brokerage fee to anyone (other
than a broker or other agent retained by Lender) which may be payable in connection with the funding of the Loan evidenced by the
Note and secured by the Security Instrument; and/or (g) the holding or investing of the funds on deposit in the Accounts or the
performance of any work or the disbursement of funds in each case in connection with the Accounts. Any amounts payable to Lender
by reason of the application of this Section 12.1 shall become immediately due and payable and shall bear interest at the Default
Rate from the date loss or damage is sustained by Lender until paid:

 

Section
12.2.          Mortgage and Intangible Tax Indemnification.
Borrower shall, at its sole cost and expense, protect, defend, indemnify, release and hold harmless the Indemnified Parties from
and against any and all Losses imposed upon or incurred by or asserted against any Indemnified Parties and directly or indirectly
arising out of or in any way relating to any tax on the making and/or recording of the Security Instrument, the Note or any of
the other Loan Documents.

 

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Section
12.3.       ERISA Indemnification. Borrower shall, at its
sole cost and expense, protect, defend, indemnify, release and hold harmless the Indemnified Parties from and against any and all
Losses (including, without limitation, reasonable attorneys’ fees and costs incurred in the investigation, defense, and settlement
of Losses incurred in correcting any prohibited transaction or in the sale of a prohibited loan, and in obtaining any individual
prohibited transaction exemption under ERISA that may be required, in Lender’s sole discretion) that Lender may incur, directly
or indirectly, as a result of a default under Sections 3.7 or 4.19 of this Agreement.

 

Section
12.4.       Duty to Defend, Legal Fees and Other Fees and Expenses.
Upon written request by any Indemnified Party, Borrower shall defend such Indemnified Party (if requested by any Indemnified Party,
in the name of the Indemnified Party) by attorneys and other professionals approved by the Indemnified Parties. Notwithstanding
the foregoing, any Indemnified Parties may, in their sole discretion, engage their own attorneys and other professionals to defend
or assist them, and, at the option of Indemnified Parties, their attorneys shall control the resolution of any claim or proceeding.
Upon demand, Borrower shall pay or, in the sole discretion of the Indemnified Parties, reimburse, the Indemnified Parties for the
payment of reasonable fees and disbursements of attorneys, engineers, environmental consultants, laboratories and other professionals
in connection therewith.

 

Section
12.5.       Survival. The obligations and liabilities of
Borrower under this Article 12 shall fully survive indefinitely notwithstanding any termination, satisfaction, assignment, entry
of a judgment of foreclosure, exercise of any power of sale, or delivery of a deed in lieu of foreclosure of the Security Instrument.

 

Section
12.6.       Environmental Indemnity. Simultaneously herewith,
Borrower and Guarantor have executed and delivered the Environmental Indemnity to Lender, which Environmental Indemnity is not
secured by the Security Instrument.

 

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ARTICLE 13

EXCULPATION

 

Section 13.1.          Exculpation.

 

(a)          Subject
to the qualifications below, Lender shall not enforce the liability and obligation of Borrower to perform and observe the obligations
contained in the Note, this Agreement, the Security Instrument or the other Loan Documents by any action or proceeding wherein
a money judgment or any deficiency judgment or other judgment establishing personal liability shall be sought against Borrower
or any principal, director, officer, employee, beneficiary, shareholder, partner, member, trustee, agent, or Affiliate of Borrower
or any legal representatives, successors or assigns of any of the foregoing (collectively, the “Exculpated Parties”),
except that Lender may bring a foreclosure action, an action for specific performance or any other appropriate action or proceeding
to enable Lender to enforce and realize upon its interest under the Note, this Agreement, the Security Instrument and the other
Loan Documents, or in the Property, the Rents, or any other collateral given to Lender pursuant to the Loan Documents; provided,
however, that, except as specifically provided herein, any judgment in any such action or proceeding shall be enforceable against
Borrower only to the extent of Borrower’s interest in the Property, in the Rents and in any other collateral given to Lender,
and Lender, by accepting the Note, this Agreement, the Security Instrument and the other Loan Documents, shall not sue for, seek
or demand any deficiency judgment against Borrower or any of the Exculpated Parties in any such action or proceeding under or by
reason of or under or in connection with the Note, this Agreement, the Security Instrument or the other Loan Documents. The provisions
of this Section shall not, however, (1) constitute a waiver, release or impairment of any obligation evidenced or secured by any
of the Loan Documents; (2) impair the right of Lender to name Borrower as a party defendant in any action or suit for foreclosure
and sale under the Security Instrument; (3) affect the validity or enforceability of any indemnity, guaranty or similar instrument
(including, without limitation, indemnities set forth in Article 12 hereof, Section 11.2 hereof, in the Guaranty and the Environmental
Indemnity) made in connection with the Loan or any of the rights and remedies of Lender thereunder (including, without limitation,
Lender’s right to enforce said rights and remedies against Borrower and/or Guarantor (as applicable) personally and without
the effect of the exculpatory provisions of this Article 13); (4) impair the rights of Lender to (A) obtain the appointment of
a receiver and/or (B) enforce its rights and remedies provided in Articles 8 and 9 hereof; (5) impair the enforcement of the assignment
of leases and rents contained in the Security Instrument and in any other Loan Documents; (6) impair the right of Lender to
enforce Section 4.12(e) of this Agreement; (7) constitute a prohibition against Lender to seek a deficiency judgment against Borrower
in order to fully realize the security granted by the Security Instrument or to commence any other appropriate action or proceeding
in order for Lender to exercise its remedies against the Property; or (8) constitute a waiver of the right of Lender to enforce
the liability and obligation of Borrower, by money judgment or otherwise, to the extent of any Loss incurred by Lender (including
attorneys’ fees and costs reasonably incurred) arising out of or in connection with the following:

 

(i)          fraud
or intentional misrepresentation by any Borrower Party in connection with the Loan;

 

(ii)         the
willful misconduct of any Borrower Party;

 

(iii)        any
litigation or other legal proceeding related to the Debt filed by any Borrower Party that delays, opposes, impedes, obstructs,
hinders, enjoins or otherwise interferes with or frustrates the efforts of Lender to exercise any rights and remedies available
to Lender as provided herein and in the other Loan Documents;

 

(iv)        waste
to the Property caused by the intentional acts or intentional omissions of any Borrower Party and/or the removal or disposal of
any portion of the Property after an Event of Default;

 

(v)         the
misapplication, misappropriation or conversion by any Borrower Party of (A) any insurance proceeds paid by reason of any loss,
damage or destruction to the Property, (B) any Awards or other amounts received in connection with the Condemnation of all or a
portion of the Property, (C) any Rents following an Event of Default or (D) any Tenant security deposits or Rents collected in
advance;

 

    	 	97	 

     

    

 

(vi)        failure
to pay Taxes, charges for labor or materials or other charges that can create liens on any portion of the Property in accordance
with the terms and provisions hereof (other than, in each case, due solely to the insufficiency of cash flow generated by the
Property and made available to Borrower);

 

(vii)       failure
to pay Insurance Premiums, to maintain the Policies in full force and effect and/or to provide Lender evidence of the same, in
each case, as expressly provided herein (other than, in each case, due solely to the insufficiency of cash flow generated by the
Property and made available to Borrower);

 

(viii)      any
security deposits, advance deposits or any other deposits collected with respect to the Property which are not delivered to Lender
upon a foreclosure of the Property or action in lieu thereof, except to the extent any such security deposits were applied in accordance
with the terms and conditions of any of the Leases prior to the occurrence of the Event of Default that gave rise to such foreclosure
or action in lieu thereof;

 

(ix)         [intentionally
omitted];

 

(x)          the
seizure or forfeiture of the Property, or any portion thereof, or Borrower’s interest therein, resulting from criminal wrongdoing
by any Borrower Party;

 

(xi)         the
failure to make any Condemnation Payment or to permit on-site inspections of the Property, in each case, as and when required herein;

 

(xii)        [intentionally
omitted];

 

(xiii)       the
failure to comply with any provisions hereof relating to cash management as required by and in accordance with, as applicable,
the terms and provisions of, this Agreement, the Assignment of Management Agreement and the Security Instrument;

 

(xiv)      [intentionally
omitted];

 

(xv)       the
failure of Borrower to appoint a new property manager upon the request of Lender or failure of Borrower to comply with any limitations
on instructing the property manager, each as required by and in accordance with, as applicable, the terms and provisions of, this
Agreement, the Assignment of Management Agreement, if any, and the Security Instrument; and/or

 

(xvi) the failure
of Borrower to establish the Restricted Account or to pay, or make deposits, to the Restricted Account, in each case as are required
under Article 9 of this Agreement, provided, however, in connection therewith Borrower shall not be required to perform any action
beyond Borrower’s reasonable control.

 

    	 	98	 

     

    

 

(b)          Notwithstanding
anything to the contrary in this Agreement, the Note or any of the Loan Documents, (A) Lender shall not be deemed to have waived
any right which Lender may have under Section 506(a), 506(b), 1111(b) or any other provisions of the Bankruptcy Code to file a
claim for the full amount of the Debt or to require that all collateral shall continue to secure all of the Debt owing to Lender
in accordance with the Loan Documents, and (B) the Debt shall be fully recourse to Borrower in the event that: (i) the first full
monthly payment of principal and interest under the Note is not paid when due; (ii) [intentionally omitted]; (iii) any representation,
warranty or covenant contained in Article 5 or Article 6 hereof is violated or breached; provided, however: with respect to any
breach or violation of Article 5, the Debt shall not be fully recourse to Borrower if: (A) such breach or violation was immaterial
and non- recurring, (B) Borrower corrects (or causes to be corrected) such breach or violation within ten (10) Business Days following
written notice from Lender, and (C) if requested by Lender upon its reasonable determination that such breach or violation might
be considered by a court as a factor in the court’s finding for a consolidation of the assets of Borrower with the assets
of another Person, Borrower delivers to Lender within seven (7) days of notice from Lender opinions of counsel, which counsel and
opinions shall be satisfactory in form and substance to Lender and the Rating Agencies, to the effect that such breach or violation
shall not negate/impair the opinions contained in the Non-Consolidation Opinion (or alternatively, deliver to Lender a new Non-Consolidation
Opinion from counsel, satisfactory to Lender and the Rating Agencies, opining that the effect of such failure would not result
in such consolidation); or (iv) a Bankruptcy Event occurs.

 

ARTICLE 14

NOTICES

 

Section
14.1.          Notices. All notices or other written communications
hereunder shall be deemed to have been properly given (a) upon delivery, if delivered in person or by facsimile transmission with
receipt acknowledged by the recipient thereof and confirmed by telephone by sender, (b) one (1) Business Day after having been
deposited for overnight delivery with any reputable overnight courier service, or (c) three (3) Business Days after having been
deposited in any post office or mail depository regularly maintained by the U.S. Postal Service and sent by registered or certified
mail, postage prepaid, return receipt requested, addressed as follows:

 

	If to Borrower:	250 Livingston Owner LLC
	 	c/o Berkshire Capital
	 	4611 12th Avenue, Apt. IL,
	 	Brooklyn, New York 11219
	 	Attention: David Bistricer
	 	 
	With a copy to:	Josh Graff
	 	Sukenik Segal Graff
	 	404 5th Avenue #5
	 	New York, NY 10018

 

    	 	99	 

     

    

 

	If to Lender:	Citigroup Global Markets Realty Corp.
	 	388 Greenwich Street
	 	19th Floor
	 	New York, New York 10013
	 	Attention: Ana Rosu Marmann
	 	Facsimile No.: (646) 328-2938
	 	 
	With a copy to:	Sidley Austin LLP
	 	One South Dearborn Street
	 	Chicago, Illinois 60603
	 	Attention: Charles E. Schrank, Esq.
	 	Facsimile No.: (312) 853-7036

 

or addressed as such party
may from time to time designate by written notice to the other parties.

 

Either party by notice
to the other may designate additional or different addresses for subsequent notices or communications.

 

ARTICLE 15

FURTHER ASSURANCES

 

Section
15.1.       Replacement Documents. Upon receipt of an affidavit
of an officer of Lender as to the loss, theft, destruction or mutilation of the Note, this Agreement or any of the other Loan Documents
which is not of public record, and, in the case of any such mutilation, upon surrender and cancellation of the Note, this Agreement
or such other Loan Document, Borrower will issue, in lieu thereof, a replacement thereof, dated the date of the Note, this Agreement
or such other Loan Document, as applicable, in the same principal amount thereof and otherwise of like tenor.

 

Section
15.2.       Recording of Security Instrument, etc Borrower
forthwith upon the execution and delivery of the Security Instrument and thereafter, from time to time, will cause the Security
Instrument and any of the other Loan Documents creating a lien or security interest or evidencing the lien hereof upon the Property
and each instrument of further assurance to be filed, registered or recorded in such manner and in such places as may be required
by any present or future law in order to publish notice of and fully to protect and perfect the lien or security interest hereof
upon, and the interest of Lender in, the Property. Borrower will pay all taxes, filing, registration or recording fees, and all
expenses incident to the preparation, execution, acknowledgment and/or recording of the Note, the Security Instrument, this Agreement,
the other Loan Documents, any note, deed of trust or mortgage supplemental hereto, any security instrument with respect to the
Property and any instrument of further assurance, and any modification or amendment of the foregoing documents, and all federal,
state, county and municipal taxes, duties, imposts, assessments and charges arising out of or in connection with the execution
and delivery of the Security Instrument, any deed of trust or mortgage supplemental hereto, any security instrument with respect
to the Property or any instrument of further assurance, and any modification or amendment of the foregoing documents, except where
prohibited by applicable law so to do.

 

    	 	100	 

     

    

 

Section
15.3.       Further Acts, etc. Borrower will, at the cost
of Borrower, and without expense to Lender, do, execute, acknowledge and deliver all and every further acts, deeds, conveyances,
deeds of trust, mortgages, assignments, notices of assignments, transfers and assurances as Lender shall, from time to time, reasonably
require, for the better assuring, conveying, assigning, transferring, and confirming unto Lender the property and rights hereby
mortgaged, deeded, granted, bargained, sold, conveyed, confirmed, pledged, assigned, warranted and transferred or intended now
or hereafter so to be, or which Borrower may be or may hereafter become bound to convey or assign to Lender, or for carrying out
the intention or facilitating the performance of the terms of this Agreement or for filing, registering or recording the Security
Instrument, or for complying with all Legal Requirements. Borrower, on demand, will execute and deliver, and in the event it shall
fail to so execute and deliver, hereby authorizes Lender to execute in the name of Borrower or without the signature of Borrower
to the extent Lender may lawfully do so, one or more financing statements to evidence more effectively the security interest of
Lender in the Property. Borrower grants to Lender an irrevocable power of attorney coupled with an interest for the purpose of
exercising and perfecting any and all rights and remedies available to Lender at law and in equity, including without limitation,
such rights and remedies available to Lender pursuant to this Section 15.3.

 

Section
15.4.       Changes in Tax, Debt, Credit and Documentary Stamp
Laws.

 

(a)          If
any law is enacted or adopted or amended after the date of this Agreement which deducts the Debt from the value of the Property
for the purpose of taxation and which imposes a tax, either directly or indirectly, on the Debt or Lender’s interest in the
Property, Borrower will pay the tax, with interest and penalties thereon, if any. If Lender is advised by counsel chosen by it
that the payment of tax by Borrower would be unlawful or taxable to Lender or unenforceable or provide the basis for a defense
of usury then Lender shall have the option by written notice of not less than ninety (90) days to declare the Debt immediately
due and payable.

 

(b)          Borrower
will not claim or demand or be entitled to any credit or credits on account of the Debt for any part of the Taxes or Other Charges
assessed against the Property, or any part thereof, and no deduction shall otherwise be made or claimed from the assessed value
of the Property, or any part thereof, for real estate tax purposes by reason of the Security Instrument or the Debt. If such claim,
credit or deduction shall be required by applicable law, Lender shall have the option, by written notice of not less than ninety
(90) days, to declare the Debt immediately due and payable.

 

(c)          If
at any time the United States of America, any State thereof or any subdivision of any such State shall require revenue or other
stamps to be affixed to the Note, the Security Instrument, or any of the other Loan Documents or impose any other tax or charge
on the same, Borrower will pay for the same, with interest and penalties thereon, if any.

 

    	 	101	 

     

    

 

ARTICLE 16

WAIVERS

 

Section
16.1.       Remedies Cumulative; Waivers.

 

The rights, powers and
remedies of Lender under this Agreement shall be cumulative and not exclusive of any other right, power or remedy which Lender
may have against Borrower pursuant to this Agreement, the Security Instrument, the Note or the other Loan Documents, or existing
at law or in equity or otherwise. Lender’s rights, powers and remedies may be pursued singularly, concurrently or otherwise,
at such time and in such order as Lender may determine in Lender’s sole discretion. No delay or omission to exercise any
remedy, right or power accruing upon an Event of Default shall impair any such remedy, right or power or shall be construed as
a waiver thereof, but any such remedy, right or power may be exercised from time to time and as often as may be deemed expedient.
A waiver of one Default or Event of Default with respect to Borrower shall not be construed to be a waiver of any subsequent Default
or Event of Default by Borrower or to impair any remedy, right or power consequent thereon.

 

Section
16.2.       Modification, Waiver in Writing.

 

No modification, amendment,
extension, discharge, termination or waiver of any provision of this Agreement, the Security Instrument, the Note and the other
Loan Documents, nor consent to any departure by Borrower therefrom, shall in any event be effective unless the same shall be in
a writing signed by the party against whom enforcement is sought, and then such waiver or consent shall be effective only in the
specific instance, and for the purpose, for which given. Except as otherwise expressly provided herein, no notice to, or demand
on Borrower, shall entitle Borrower to any other or future notice or demand in the same, similar or other circumstances.

 

Section
16.3.       Delay Not a Waiver.

 

Neither any failure nor
any delay on the part of Lender in insisting upon strict performance of any term, condition, covenant or agreement, or exercising
any right, power, remedy or privilege under this Agreement, the Security Instrument, the Note or the other Loan Documents, or any
other instrument given as security therefor, shall operate as or constitute a waiver thereof, nor shall a single or partial exercise
thereof preclude any other future exercise, or the exercise of any other right, power, remedy or privilege. In particular, and
not by way of limitation, by accepting payment after the due date of any amount payable under this Agreement, the Security Instrument,
the Note or the other Loan Documents, Lender shall not be deemed to have waived any right either to require prompt payment when
due of all other amounts due under this Agreement, the Security Instrument, the Note and the other Loan Documents, or to declare
a default for failure to effect prompt payment of any such other amount.

 

Section
16.4.       Waiver of Trial by Jury.

 

BORROWER AND LENDER, BY
ACCEPTANCE OF THIS AGREEMENT, HEREBY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE RIGHT TO TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR COUNTERCLAIM, WHETHER IN CONTRACT. TORT OR OTHERWISE, RELATING DIRECTLY OR INDIRECTLY TO THE LOAN, THE APPLICATION
FOR THE LOAN, THIS AGREEMENT, THE NOTE, THE SECURITY INSTRUMENT OR THE OTHER LOAN DOCUMENTS OR ANY ACTS OR OMISSIONS OF LENDER
OR BORROWER.

 

    	 	102	 

     

    

 

Section
16.5.       Waiver of Notice.

 

Borrower shall not be entitled
to any notices of any nature whatsoever from Lender except (a) with respect to matters for which this Agreement specifically and
expressly provides for the giving of notice by Lender to Borrower and (b) with respect to matters for which Lender is required
by applicable law to give notice, and Borrower hereby expressly waives the right to receive any notice from Lender with respect
to any matter for which this Agreement does not specifically and expressly provide for the giving of notice by Lender to Borrower.

 

Section
16.6.       Remedies of Borrower.

 

In the event that a claim
or adjudication is made that Lender or its agents have acted unreasonably or unreasonably delayed acting in any case where by applicable
law or under this Agreement, the Security Instrument, the Note and the other Loan Documents, Lender or such agent, as the case
may be, has an obligation to act reasonably or promptly, Borrower agrees that neither Lender nor its agents shall be liable for
any monetary damages, and Borrower’s sole remedies shall be limited to commencing an action seeking injunctive relief or
declaratory judgment. The parties hereto agree that any action or proceeding to determine whether Lender has acted reasonably shall
be determined by an action seeking declaratory judgment. Lender agrees that, in such event, it shall cooperate in expediting any
action seeking injunctive relief or declaratory judgment.

 

Section
16.7.       Marshalling and Other Matters.

 

Borrower hereby waives,
to the extent permitted by applicable Legal Requirements, the benefit of all appraisement, valuation, stay, extension, reinstatement
and redemption laws now or hereafter in force and all rights of marshalling in the event of any sale under the Security Instrument
of the Property or any part thereof or any interest therein. Further, Borrower hereby expressly waives any and all rights of redemption
from sale under any order or decree ·of foreclosure of the Security Instrument on behalf of Borrower, and on behalf of each
and every person acquiring any interest in or title to the Property subsequent to the date of the Security Instrument and on behalf
of all persons to the extent permitted by applicable Legal Requirements.

 

Section
16.8.       Waiver of Statute of Limitations.

 

To the extent permitted
by applicable Legal Requirements, Borrower hereby expressly waives and releases to the fullest extent permitted by applicable Legal
Requirements, the pleading of any statute of limitations as a defense to payment of the Debt or performance of its obligations
hereunder, under the Note, Security Instrument or other Loan Documents.

 

Section
16.9.       Waiver of Counterclaim. Borrower hereby waives
the right to assert a counterclaim, other than a compulsory counterclaim, in any action or proceeding brought against it by Lender
or its agents.

 

    	 	103	 

     

    

 

Section
16.10.      Sole Discretion of Lender. Wherever pursuant to this
Agreement (a) Lender exercises any right given to it to approve or disapprove, (b) any arrangement or term is to be satisfactory
to Lender, or (c) any other decision or determination is to be made by Lender, the decision to approve or disapprove all decisions
that arrangements or terms are satisfactory or not satisfactory, and all other decisions and determinations made by Lender, shall
be in the sole discretion of Lender, except as may be otherwise expressly and specifically provided herein.

 

ARTICLE 17

MISCELLANEOUS

 

Section
17.1.       Survival. This Agreement and all covenants,
agreements, representations and warranties made herein and in the certificates delivered pursuant hereto shall survive the making
by Lender of the Loan and the execution and delivery to Lender of the Note, and shall continue in full force and effect so long
as all or any of the Debt is outstanding and unpaid unless a longer period is expressly set forth in this Agreement, the Security
Instrument, the Note or the other Loan Documents. Whenever in this Agreement any of the parties hereto is referred to, such reference
shall be deemed to include the legal representatives, successors and assigns of such party. All covenants, promises and agreements
in this Agreement, by or on behalf of Borrower, shall inure to the benefit of the legal representatives, successors and assigns
of Lender.

 

Section
17.2.       Governing Law.

 

THIS AGREEMENT WAS NEGOTIATED
IN THE STATE OF NEW YORK, THE LOAN WAS MADE BY LENDER AND ACCEPTED BY BORROWER IN THE STATE OF NEW YORK, AND THE PROCEEDS OF THE
LOAN DELIVERED PURSUANT HERETO WERE DISBURSED FROM THE STATE OF NEW YORK, WHICH STATE THE PARTIES AGREE HAS A SUBSTANTIAL RELATIONSHIP
TO THE PARTIES AND TO THE UNDERLYING TRANSACTION EMBODIED HEREBY, AND IN ALL RESPECTS, INCLUDING, WITHOUT LIMITING THE GENERALITY
OF THE FOREGOING, MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS AGREEMENT, THE NOTE AND THE OTHER LOAN DOCUMENTS AND
THE OBLIGATIONS ARISING HEREUNDER AND THEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE (WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS) AND
ANY APPLICABLE LAW OF THE UNITED STATES OF AMERICA, EXCEPT THAT AT ALL TIMES THE PROVISIONS FOR THE CREATION, PERFECTION, AND ENFORCEMENT
OF THE LIENS AND SECURITY INTERESTS CREATED PURSUANT HERETO AND PURSUANT TO THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED
ACCORDING TO THE LAW OF THE STATE, IT BEING UNDERSTOOD THAT, TO THE FULLEST EXTENT PERMITTED BY THE LAW OF SUCH STATE, THE LAW
OF THE STATE OF NEW YORK SHALL GOVERN THE CONSTRUCTION, VALIDITY AND ENFORCEABILITY OF ALL LOAN DOCUMENTS AND ALL OF THE OBLIGATIONS
ARISING HEREUNDER OR THEREUNDER. TO THE FULLEST EXTENT PERMITTED BY LAW, BORROWER HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES
ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS AGREEMENT, THE NOTE AND THE OTHER LOAN DOCUMENTS, AND THIS
AGREEMENT, THE NOTE AND THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK PURSUANT TO SECTION 5 1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

 

    	 	104	 

     

    

 

ANY LEGAL SUIT, ACTION
OR PROCEEDING AGAINST LENDER OR BORROWER ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS WILL, AT LENDER’S
OPTION, BE INSTITUTED IN (OR, IF PREVIOUSLY INSTITUTED, MOVED TO) ANY FEDERAL OR STATE COURT DESIGNATED BY LENDER IN THE
CITY OF NEW YORK, COUNTY OF NEW YORK. BORROWER HEREBY (I) WAIVES ANY OBJECTIONS WHICH IT MAY NOW OR HEREAFTER HAVE BASED
ON VENUE AND/OR FORUM NON CONVENIENS OF ANY SUCH SUIT, ACTION OR PROCEEDING AND (II) IRREVOCABLY SUBMITS TO THE EXCLUSIVE
JURISDICTION OF ANY SUCH COURT IN ANY SUIT, ACTION OR PROCEEDING. BORROWER AND LENDER HEREBY ACKNOWLEDGE AND AGREE THAT THE FOREGOING
AGREEMENT, WAIVER AND SUBMISSION ARE MADE PURSUANT TO SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

 

BORROWER DOES HEREBY
DESIGNATE AND APPOINT: 

 

SUKENIK SEGAL GRAFF, P.C.

404 5TH AVENUE #5

NEW YORK, NEW YORK 10018 

 

AS ITS AUTHORIZED AGENT
TO ACCEPT AND ACKNOWLEDGE ON ITS BEHALF SERVICE OF ANY AND ALL PROCESS WHICH MAY BE SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING
IN ANY FEDERAL OR STATE COURT IN NEW YORK, NEW YORK, AND AGREES THAT SERVICE OF PROCESS UPON SAID AGENT AT SAID ADDRESS AND NOTICE
OF SAID SERVICE MAILED OR DELIVERED TO BORROWER IN THE MANNER PROVIDED HEREIN SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE
OF PROCESS UPON BORROWER IN ANY SUCH SUIT, ACTION OR PROCEEDING IN THE STATE OF NEW YORK. BORROWER (I) SHALL GIVE PROMPT
NOTICE TO LENDER OF ANY CHANGED ADDRESS OF ITS AUTHORIZED AGENT HEREUNDER, (II) MAY AT ANY TIME AND FROM TIME TO TIME DESIGNATE
A SUBSTITUTE AUTHORIZED AGENT WITH AN OFFICE IN NEW YORK, NEW YORK (WHICH SUBSTITUTE AGENT AND OFFICE SHALL BE DESIGNATED AS THE
PERSON AND ADDRESS FOR SERVICE OF PROCESS), AND (III) SHALL PROMPTLY DESIGNATE SUCH A SUBSTITUTE IF ITS AUTHORIZED AGENT
CEASES TO HAVE AN OFFICE IN NEW YORK, NEW YORK OR IS DISSOLVED WITHOUT LEAVING A SUCCESSOR.

 

Section
17.3.       Headings. The Article and/or Section headings
in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any
other purpose.

 

    	 	105	 

     

    

 

Section
17.4.       Severability. Wherever possible, each provision
of this Agreement shall be interpreted in such manner as to be effective and valid under applicable Legal Requirements, but if
any provision of this Agreement shall be prohibited by or invalid under applicable Legal Requirements, such provision shall be
ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining
provisions of this Agreement.

 

Section
17.5.       Preferences. Lender shall have the continuing
and exclusive right to apply or reverse and reapply any and all payments by Borrower to any portion of the obligations of Borrower
hereunder. To the extent Borrower makes a payment or payments to Lender, which payment or proceeds or any part thereof are subsequently
invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, receiver or any other
party under any Creditors Rights Laws, state or federal law, common law or equitable cause, then, to the extent of such payment
or proceeds received, the obligations hereunder or part thereof intended to be satisfied shall be revived and continue in full
force and effect, as if such payment or proceeds had not been received by Lender.

 

Section
17.6.       Expenses. Borrower covenants and agrees to pay
its own costs and expenses and pay, or, if Borrower fails to pay, to reimburse, Lender, upon receipt of written notice from Lender,
for Lender’s reasonable costs and expenses (including reasonable, actual attorneys’ fees and disbursements) in each
case, incurred by Lender in accordance with this Agreement in connection with (i) the preparation, negotiation, execution and delivery
of this Agreement, the Security Instrument, the Note and the other Loan Documents and the consummation of the transactions contemplated
hereby and thereby and all the costs of furnishing all opinions by counsel for Borrower (including without limitation any opinions
requested by Lender as to any legal matters arising under this Agreement, the Security Instrument, the Note and the other Loan
Documents with respect to the Property); (ii) Borrower’s ongoing performance of and compliance with Borrower’s
respective agreements and covenants contained in this Agreement, the Security Instrument, the Note and the other Loan Documents
on its part to be performed or complied with after the Closing Date, including, without limitation, confirming compliance with
environmental and insurance requirements; (iii) Lender’s ongoing performance and compliance with all agreements and
conditions contained in this Agreement, the Security Instrument, the Note and the other Loan Documents on its part to be performed
or complied with after the Closing Date (including, without limitation, those contained in Articles 8 and 9 hereof); (iv) the negotiation,
preparation, execution, delivery and administration of any consents, amendments, waivers or other modifications to this Agreement,
the Security Instrument, the Note and the other Loan Documents and any other documents or matters requested by Lender; (v) securing
Borrower’s compliance with any requests made pursuant to the provisions of this Agreement; (vi) the filing and recording
fees and expenses, title insurance and reasonable fees and expenses of counsel for providing to Lender all required legal opinions,
and other similar expenses incurred in creating and perfecting the lien in favor of Lender pursuant to this Agreement, the Security
Instrument, the Note and the other Loan Documents; (vii) enforcing or preserving any rights, in response to third party claims
or the prosecuting or defending of any action or proceeding or other litigation, in each case against, under or affecting Borrower,
this Agreement, the Security Instrument, the Note, the other Loan Documents, the Property, or any other security given for the
Loan; and (viii) enforcing any obligations of or collecting any payments due from Borrower under this Agreement, the Security Instrument,
the Note and the other Loan Documents or with respect to the Property or in connection with any refinancing or restructuring of
the credit arrangements provided under this Agreement in the nature of a “work-out” or of any insolvency or bankruptcy
proceedings (which such costs and expenses shall be deemed to include, without limitation and in each case, any special servicing
fees, liquidation fees, modification fees, work-out fees and other similar costs or expenses payable to any Servicer, trustee and/or
special servicer of the Loan (or any portion thereof and/or interest therein)); provided, however, that Borrower shall not be liable
for the payment of any such costs and expenses to the extent the same arise by reason of the gross negligence, illegal acts, fraud
or willful misconduct of Lender.

 

    	 	106	 

     

    

 

Section
17.7.       Cost of Enforcement. In the event (a) that the
Security Instrument is foreclosed in whole or in part, (b) of the bankruptcy, insolvency, rehabilitation or other similar proceeding
in respect of Borrower or any of its constituent Persons or an assignment by Borrower or any of its constituent Persons for the
benefit of its creditors, or (c) Lender exercises any of its other remedies under this Agreement, the Security Instrument, the
Note and the other Loan Documents, Borrower shall be chargeable with and agrees to pay all costs of collection and defense, including
attorneys’ fees and costs, incurred by Lender or Borrower in connection therewith and in connection with any appellate proceeding
or post judgment action involved therein, together with all required service or use taxes.

 

Section
17.8.       Schedules Incorporated. The Schedules annexed
hereto are hereby incorporated herein as a part of this Agreement with the same effect as if set forth in the body hereof.

 

Section
17.9.       Offsets, Counterclaims and Defenses. Any assignee
of Lender’s interest in and to this Agreement, the Security Instrument, the Note and the other Loan Documents shall take
the same free and clear of all offsets, counterclaims or defenses which are unrelated to such documents which Borrower may otherwise
have against any assignor of such documents, and no such unrelated counterclaim or defense shall be interposed or asserted by Borrower
in any action or proceeding brought by any such assignee upon such documents and any such right to interpose or assert any such
unrelated offset, counterclaim or defense in any such action or proceeding is hereby expressly waived by Borrower.

 

Section
17.10.      No Joint Venture or Partnership; No Third Party Beneficiaries.

 

(a)          Borrower
and Lender intend that the relationships created under this Agreement, the Security Instrument, the Note and the other Loan Documents
be solely that of borrower and lender. Nothing herein or therein is intended to create a joint venture, partnership, tenancy-in-
common, or joint tenancy relationship between Borrower and Lender nor to grant Lender any interest in the Property other than that
of mortgagee, beneficiary or lender.

 

(b)          This
Agreement, the Security Instrument, the Note and the other Loan Documents are solely for the benefit of Lender and Borrower and
nothing contained in this Agreement, the Security Instrument, the Note or the other Loan Documents shall be deemed to confer upon
anyone other than Lender and Borrower any right to insist upon or to enforce the performance or observance of any of the obligations
contained herein or therein. All conditions to the obligations of Lender to make the Loan hereunder are imposed solely and exclusively
for the benefit of Lender and no other Person shall have standing to require satisfaction of such conditions in accordance with
their terms or be entitled to assume that Lender will refuse to make the Loan in the absence of strict compliance with any or all
thereof and no other Person shall under any circumstances be deemed to be a beneficiary of such conditions, any or all of which
may be freely waived in whole or in part by Lender if, in Lender’s sole discretion, Lender deems it advisable or desirable
to do so.

 

    	 	107	 

     

    

 

(c)          The
general partners, members, principals and (if Borrower is a trust) beneficial owners of Borrower are experienced in the ownership
and operation of properties similar to the Property, and Borrower and Lender are relying solely upon such expertise and business
plan in connection with the ownership and operation of the Property. Borrower is not relying on Lender’s expertise, business
acumen or advice in connection with the Property.

 

(d)          Notwithstanding
anything to the contrary contained herein, Lender is not undertaking the performance of (i) any obligations related to the Property
(including, without limitation, under the Leases); or (ii) any obligations with respect to any agreements, contracts, certificates,
instruments, franchises, permits, trademarks, licenses and other documents to which any Borrower Party and/or the Property is subject.

 

(e)          By
accepting or approving anything required to be observed, performed or fulfilled or to be given to Lender pursuant to this Agreement,
the Security Instrument, the Note or the other Loan Documents, including, without limitation, any officer’s certificate,
balance sheet, statement of profit and loss or other financial statement, survey, appraisal, or insurance policy, Lender shall
not be deemed to have warranted, consented to, or affirmed the sufficiency, the legality or effectiveness of same, and such acceptance
or approval thereof shall not constitute any warranty or affirmation with respect thereto by Lender.

 

(f)          Borrower
recognizes and acknowledges that in accepting this Agreement, the Note, the Security Instrument and the other Loan Documents, Lender
is expressly and primarily relying on the truth and accuracy of the representations and warranties set forth in Article 3 of this
Agreement without any obligation to investigate the Property and notwithstanding any investigation of the Property by Lender; that
such reliance existed on the part of Lender prior to the date hereof, that the warranties and representations are a material inducement
to Lender in making the Loan; and that Lender would not be willing to make the Loan and accept the this Agreement, the Note, the
Security Instrument and the other Loan Documents in the absence of the warranties and representations as set forth in Article 3
of this Agreement.

 

Section
17.11.    Publicity. All news releases, publicity or advertising
by Borrower or its Affiliates through any media intended to reach the general public which refers to this Agreement, the Note,
the Security Instrument or the other Loan Documents or the financing evidenced by this Agreement, the Note, the Security Instrument
or the other Loan Documents, to Lender or any of its Affiliates shall be subject to the prior written approval of Lender, not to
be unreasonably withheld.

 

    	 	108	 

     

    

 

Section
17.12.     Limitation of Liability. No claim may be made by
Borrower, or any other Person against Lender or its Affiliates, directors, officers, employees, attorneys or agents of any of such
Persons for any special, indirect, consequential or punitive damages in respect of any claim for breach of contract or any other
theory of liability arising out of or related to the transactions contemplated by this Agreement or any act, omission or event
occurring in connection therewith; and Borrower hereby waives, releases and agrees not to sue upon any claim for any such damages,
whether or not accrued and whether or not known or suspected to exist in its favor.

 

Section
17.13.   Conflict; Construction of Documents; Reliance. In
the event of any conflict between the provisions of this Agreement and the Security Instrument, the Note or any of the other Loan
Documents, the provisions of this Agreement shall control. The parties hereto acknowledge that they were represented by competent
counsel in connection with the negotiation, drafting and execution of this Agreement, the Note, the Security Instrument and the
other Loan Documents and this Agreement, the Note, the Security Instrument and the other Loan Documents shall not be subject to
the principle of construing their meaning against the party which drafted same. Borrower acknowledges that, with respect to the
Loan, Borrower shall rely solely on its own judgment and advisors in entering into the Loan without relying in any manner on any
statements, representations or recommendations of Lender or any parent, subsidiary or Affiliate of Lender. Lender shall not be
subject to any limitation whatsoever in the exercise of any rights or remedies available to it under this Agreement, the Note,
the Security Instrument and the other Loan Documents or any other agreements or instruments which govern the Loan by virtue of
the ownership by it or any parent, subsidiary or Affiliate of Lender of any equity interest any of them may acquire in Borrower,
and Borrower hereby irrevocably waives the right to raise any defense or take any action on the basis of the foregoing with respect
to Lender’s exercise of any such rights or remedies. Borrower acknowledges that Lender engages in the business of real estate
financings and other real estate transactions and investments which may be viewed as adverse-to or competitive with the business
of Borrower or its Affiliates.

 

Section
17.14.   Entire Agreement. This Agreement, the Note, the Security
Instrument and the other Loan Documents contain the entire agreement of the parties hereto and thereto in respect of the transactions
contemplated hereby and thereby, and all prior agreements among or between such parties, whether oral or written between Borrower
and Lender are superseded by the terms of this Agreement, the Note, the Security Instrument and the other Loan Documents.

 

Section
17.15.   Liability. If Borrower consists of more than one
Person, the obligations and liabilities of each such Person hereunder shall be joint and several. This Agreement shall be binding
upon and inure to the benefit of Borrower and Lender and their respective successors and assigns forever.

 

Section
17.16.    Duplicate Originals; Counterparts. This Agreement
may be executed in any number of duplicate originals and each duplicate original shall be deemed to be an original. The failure
of any party hereto to execute this Agreement, or any counterpart hereof, shall not relieve the other signatories from their obligations
hereunder.

 

    	 	109	 

     

    

 

Section
17.17.    Brokers. Borrower agrees (i) to pay any and all fees
imposed or charged by all brokers, mortgage bankers and advisors (each a “Broker”) hired or contracted by any
Borrower Party or their Affiliates in connection with the transactions contemplated by this Agreement and (ii) to indemnify and
hold Lender harmless from and against any and all claims, demands and liabilities for brokerage commissions, assignment fees, finder’s
fees or other compensation whatsoever arising from this Agreement or the making of the Loan which may be asserted against Lender
by any Person. The foregoing indemnity shall survive the termination of this Agreement and the payment of the Debt. Borrower hereby
represents and warrants that the only Broker engaged by any Borrower Party in connection with the transactions contemplated by
this Agreement respect hereto is Meridian Capital Group. Lender hereby agrees to pay any and all fees imposed or charged by any
Broker hired solely by Lender. Borrower acknowledges and agrees that (a) any Broker is not an agent of Lender and has no power
or authority to bind Lender, (b) Lender is not responsible for any recommendations or advice given to any Borrower Party by any
Broker, (c) Lender and the Borrower Parties have dealt at arms-length with each other in connection with the Loan, (d) no fiduciary
or other special relationship exists or shall be deemed or construed to exist among Lender and the Borrower Parties and (e) none
of the Borrower Parties shall be entitled to rely on any assurances or waivers given, or statements made or actions taken, by any
Broker which purport to bind Lender or modify or otherwise affect this Agreement or the Loan, unless Lender has, in its sole discretion,
agreed in writing with any such Borrower Party to such assurances, waivers, statements, actions or modifications. Borrower acknowledges
and agrees that Lender may, in its sole discretion, pay fees or compensation to any Broker in connection with or arising out of
the closing and funding of the Loan. Such fees and compensation, if any, (i) shall be in addition to any fees which may be paid
by any Borrower Party to such Broker and (ii) create a potential conflict of interest for Broker in its relationship with the Borrower
Parties. Such fees and compensation, if applicable, may include a direct, one- time payment, servicing fees and/or incentive payments
based on volume and size of financings involving Lender and such Broker.

 

[NO FURTHER TEXT ON THIS PAGE]

 

    	 	110	 

     

    

 

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

 

	 	BORROWER:
	 	 
	 	250 LIVINGSTON OWNERS LLC,
	 	a Delaware limited liability company
	 	 
	 	By:	/s/ David Bistricer
	 	    Name:  David Bistricer
	 	    Title:  President

 

[Lender’s signature page follows]

 

[250 Livingston – Loan Agreement] 

 

     

     

    

 

	 	LENDER:
	 	 
	 	CITIGROUP GLOBAL MARKETS REALTY CORP.
	 	 	 
	 	By:	/s/ Ana Rosu Marmann
	 	    Name:  Ana Rosu Marmann
	 	    Title:  Authorized Signatory

 

[NO FURTHER TEXT ON THIS PAGE]

 

[250 Livingston – Loan Agreement]Blueprint

 

EXHIBIT 4(b)

 

CEL-SCI CORPORATION

2016 INCENTIVE STOCK OPTION PLAN

 

1.          Purpose.
The purpose of this Incentive Stock Option Plan (the "Plan") is to
advance the interests of CEL-SCI Corporation and any subsidiary
corporation (hereinafter referred to as the "Company") and all of
its shareholders, by strengthening the Company's ability to attract
and retain in its employ individuals of training, experience, and
ability, and to furnish additional incentive to officers and valued
employees upon whose judgment, initiative, and efforts the
successful conduct and development of its business largely depends,
by encouraging such officers and employees to become owners of
capital stock of the Company.

 

This
will be effected through the granting of stock options as herein
provided, which options are intended to qualify as "Incentive Stock
Options" within the meaning of Section 422 of the Internal Revenue
Code, as amended (the "Code").

 

2.          Definitions.

 

(a)          "Board"
means the Board of Directors of the Company.

(b)          "Committee"
means the directors duly appointed to administer the
Plan.

(c)          "Common
Stock" means the Company's Common Stock.

(d)          "Date
of Grant" means the date on which an Option is granted under the
Plan.

(e)          "Option"
means an Option granted under the Plan.

(f)          "Optionee"
means a person to whom an Option, which has not expired, has been
granted under the Plan.

(g)          "Successor"
means the legal representative of the estate of a deceased optionee
or the person or persons who acquire the right to exercise an
Option by bequest or inheritance or by reason of the death of any
Optionee.

 

3.          Administration
of Plan. The Plan shall be administered by the Company's
Board of Directors or in the alternative, by a committee of two or
more directors appointed by the Board (the "Committee"). If a
Committee should be appointed, the Committee shall report all
action taken by it to the Board. The Committee shall have full and
final authority in its discretion, subject to the provisions of the
Plan, to determine the individuals to whom and the time or times at
which Options shall be granted and the number of shares and
purchase price of Common Stock covered by each Option; to construe
and interpret the Plan; to determine the terms and provisions of
the respective Option agreements, which need not be identical,
including, but without limitation, terms covering the payment of
the Option Price; and to make all other determinations and take all
other actions deemed necessary or advisable for the proper
administration of the Plan. All such actions and determinations
shall be conclusively binding for all purposes and upon all
persons.

 

 

1

 

 

4.          Common
Stock Subject to Options. The aggregate number of shares of
the Company's Common Stock which may be issued upon the exercise of
Options granted under the Plan shall not exceed 1,500,000. The
shares of Common Stock to be issued upon the exercise of Options
may be authorized but unissued shares, shares issued and reacquired
by the Company or shares bought on the market for the purposes of
the Plan. In the event any Option shall, for any reason, terminate
or expire or be surrendered without having been exercised in full,
the shares subject to such Option but not purchased thereunder
shall again be available for Options to be granted under the
Plan.

 

The
aggregate fair market value (determined as of the time any option
is granted) of the stock for which any employee may be granted
options which are first exercisable in any single calendar year
under this Plan (and any other plan of the Company meeting the
requirements for Incentive Stock Option Plans) shall not exceed
$100,000.

 

5.          Participants.
Options will be granted only to persons who are employees of the
Company or subsidiaries of the Company and only in connection with
any such person's employment. The term "employees" shall include
officers as well as other employees, and the officers and other
employees who are directors of the Company. The Committee will
determine the employees to be granted options and the number of
shares subject to each option.

 

6.          Terms
and Conditions of Options. Any Option granted under the Plan
shall be evidenced by an agreement executed by the Company and the
recipient and shall contain such terms and be in such form as the
Committee may from time to time approve, subject to the following
limitations and conditions:

 

(a)          Option
Price. The purchase price of each option shall not be less
than 100% of the fair market value of the Company's common stock at
the time of the granting of the option provided, however, if the
optionee, at the time the option is granted, owns stock possessing
more than 10% of the total combined voting power of all classes of
stock of the Company, the purchase price of the option shall not be
less than 110% of the fair market value of the stock at the time of
the granting of the option.

 

(b)          Period
of Option. The maximum period for exercising an option shall
be 10 years from the date upon which the option is granted,
provided, however, if the optionee, at the time the option is
granted, owns stock possessing more than l0% of the total combined
voting power of all classes of stock of the Company, the maximum
period for exercising an option shall be five years from the date
upon which the option is granted and provided further, however,
that these periods may be shortened in accordance with the
provisions of Paragraph 7 below.

 

Subject
to the foregoing, the period during which each option may be
exercised, and the expiration date of each Option shall be fixed by
the Committee.

 

If an
optionee shall cease to be employed by the Company due to
disability, as defined in Section 22(e)(3) of the Code, he may, but
only within the one year next succeeding such cessation of
employment, exercise his option to the extent that he was entitled
to exercise it on the date of such cessation. The Plan will not
confer upon any optionee any right with respect to continuance of
employment by the Company, nor will it interfere in any way with
his right, or his employer's right, to terminate his employment at
any time.

 

 

2

 

 

(c)          Vesting
of Shareholder Rights. Neither an Optionee nor his successor
shall have any rights as a shareholder of the Company until the
certificates evidencing the shares purchased are properly delivered
to such Optionee or his successor.

 

(d)          Exercise
of Option. Each Option shall be exercisable from time to
time during a period (or periods) determined by the Committee and
ending upon the expiration or termination of the Option; provided,
however, the Committee may, by the provisions of any Option
Agreement, limit the number of shares purchaseable thereunder in
any period or periods of time during which the Option is
exercisable. An Option shall not be exercisable in whole or in part
prior to the date of shareholder approval of the Plan.

 

Options
may be exercised in part from time to time during the option
period. The exercise of any option will be contingent upon
compliance by the Optionee (or purchaser acting pursuant to Section
6(b)) with the provisions of Section 10 below and upon receipt by
the Company of either (i) cash or certified bank check payable to
its order in the amount of the purchase price of such shares (ii)
shares of Company stock having a fair market value equal to the
purchase price of such shares, or (iii) a combination of (i) and
(ii). If any law or regulation requires the Company to take any
action with respect to the shares to be issued upon exercise of any
option, then the date for delivery of such stock shall be extended
for the period necessary to take such action.

 

(e)          Nontransferability
of Option. No Option shall be transferable or assignable by
an Optionee, otherwise than by will or the laws of descent and
distribution and each Option shall be exercisable, during the
Optionee's lifetime, only by him. No Option shall be pledged or
hypothecated in any way and no Option shall be subject to
execution, attachment, or similar process except with the express
consent of the Committee.

 

(f)          Death
of Optionee. In the event of the death of an optionee while
in the employ of the Company, the option theretofore granted to him
shall be exercisable only within the three months succeeding such
death and then only (i) by the person or persons to whom the
optionee's rights under the option shall pass by the optionee's
will or by the laws of descent and distribution, and (ii) if and to
the extent that he was entitled to exercise the option at the date
of his death.

 

7.          Assumed
Options. In connection with any transaction to which Section
424(a) of the Code is applicable, options may be granted pursuant
hereto in substitution of existing options or existing options may
be assumed as prescribed by that Section and any regulations issued
thereunder. Notwithstanding anything to the contrary contained in
this Plan, options granted pursuant to this Paragraph shall be at
prices and shall contain such terms, provisions, and conditions as
may be determined by the Committee and shall include such
provisions and conditions as may be necessary to meet the
requirements of Section 424(a) of the Code.

 

 

3

 

 

8.          Certain
Dispositions of Shares. Any options granted pursuant to this
Plan shall be conditioned such that if, within the earlier of (i)
the two-year period beginning on the date of grant of an option or
(ii) the one-year period beginning on the date after which any
share of stock is transferred to an individual pursuant to his
exercise of an option, such an individual makes a disposition of
such share of stock by way of sale, exchange, gift, transfer of
legal title, or otherwise, such individual shall promptly report
such disposition to the Company in writing and shall furnish to the
Company such details concerning such disposition as the Company may
reasonably request.

 

9.          Reclassification,
Consolidation, or Merger. If and to the extent that the
number of issued shares of Common Stock of the Corporation shall be
increased or reduced by change in par value, split up,
reclassification, distribution of a dividend payable in stock, or
the like, the number of shares subject to Option and the Option
price per share shall be proportionately adjusted by the Committee,
whose determination shall be conclusive. If the Corporation is
reorganized or consolidated or merged with another corporation, an
Optionee granted an Option hereunder shall be entitled to receive
Options covering shares of such reorganized, consolidated, or
merged company in the same proportion, at an equivalent price, and
subject to the same conditions. The new Option or assumption of the
old Option shall not give Optionee additional benefits which he did
not have under the old Option, or deprive him of benefits which he
had under the old Option.

 

10.          Restrictions
on Issuing Shares. The exercise of each Option shall be
subject to the condition that if at any time the Company shall
determine in its discretion that the satisfaction of withholding
tax or other withholding liabilities, or that the listing,
registration, or qualification of any shares otherwise deliverable
upon such exercise upon any securities exchange or under any state
or federal law, or that the consent or approval of any regulatory
body, is necessary or desirable as a condition of, or in connection
with, such exercise or the delivery or purchase of shares purchased
thereto, then in any such event, such exercise shall not be
effective unless such withholding, listing, registration,
qualification, consent, or approval shall have been effected or
obtained free of any conditions not acceptable to the
Company.

 

Unless
the shares of stock covered by the Plan have been registered with
the Securities and Exchange Commission pursuant to Section 5 of the
Securities Act of l933, each optionee shall, by accepting an
option, represent and agree, for himself and his transferees by
will or the laws of descent and distribution, that all shares of
stock purchased upon the exercise of the option will be acquired
for investment and not for resale or distribution. Upon such
exercise of any portion of an option, the person entitled to
exercise the same shall, upon request of the Company, furnish
evidence satisfactory to the Company (including a written and
signed representation) to the effect that the shares of stock are
being acquired in good faith for investment and not for resale or
distribution. Furthermore, the Company may, if it deems
appropriate, affix a legend to certificates representing shares of
stock purchased upon exercise of options indicating that such
shares have not been registered with the Securities and Exchange
Commission and may so notify its transfer agent. Such shares may be
disposed of by an optionee in the following manner only: (l)
pursuant to an effective registration statement covering such
resale or reoffer, (2) pursuant to an applicable exemption from
registration as indicated in a written opinion of counsel
acceptable to the Company, or (3) in a transaction that meets all
the requirements of Rule l44 of the Securities and Exchange
Commission. If shares of stock covered by the Plan have been
registered with the Securities and Exchange Commission, no such
restrictions on resale shall apply, except in the case of optionees
who are directors, officers, or principal shareholders of the
Company. Such persons may dispose of shares only by one of the
three aforesaid methods.

 

 

4

 

 

11.          Use
of Proceeds. The proceeds received by the Company from the
sale of Common Stock pursuant to the exercise of Options granted
under the Plan shall be added to the Company's general funds and
used for general corporate purposes.

 

l2.          Amendment,
Suspension, and Termination of Plan. The Board of Directors
may alter, suspend, or discontinue the Plan, but may not, without
the approval of a majority of those holders of the Company's Common
Stock voting in person or by proxy at any meeting of the Company's
shareholders, make any alteration or amendment thereof which
operates to (a) make any material change in the class of eligible
employees as defined in Section 5, (b) extend the term of the Plan
or the maximum option periods provided in paragraph 6, (c) decrease
the minimum option price provided in paragraph 6, except as
provided in paragraph 9, or (d) materially increase the benefits
accruing to employees participating under this Plan.

 

Unless
the Plan shall theretofore have been terminated by the Board, the
Plan shall terminate ten years after the adoption of the Plan. No
Option may be granted during any suspension or after the
termination of the Plan. No amendment, suspension, or termination
of the Plan shall, without an Optionee’s consent, alter or
impair any of the rights or obligations under any Option
theretofore granted to such Optionee under the Plan.

 

13.          Limitations.
Every right of action by any person receiving options pursuant to
this Plan against any past, present or future member of the Board,
or any officer or employee of the Company arising out of or in
connection with this Plan shall, irrespective of the place where
such action may be brought and irrespective of the place of
residence of any such director, officer or employee cease and be
barred by the expiration of one year from the date of the act or
omission in respect of which such right of action
arises.

 

14.          Governing
Law. The Plan shall be governed by the laws of the State of
Colorado.

 

l5.          Expenses
of Administration. All costs and expenses incurred in the
operation and administration of this Plan shall be borne by the
Company.

 

 

 

5

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