Document:

Exhibit 10.2

 

Execution Copy

 

 

 

TPHGREENWICH OWNER LLC

(Mortgagor)

 

to

 

STERLING NATIONAL BANK, as Administrative
Agent

(Mortgagee)

 

 

MORTGAGE AND SECURITY AGREEMENT, 

ASSIGNMENT OF LEASES AND RENTS 

AND FIXTURES FILING

 

	 	Dated:	As of February 9, 2015
	 	 	 	 
	 	 	 	 
	 	Street Address:	38-42 Trinity Place and 67 Greenwich 
	 	 	Street, New York
	 	Block:	19	 
	 	Lot(s):	13 and 11	 
	 	City:	New York	 
	 	County:	New York	 
	 	State:	New York	 

 

 

 

 

 

 

 

 

 

 

Prepared
By:

Windels
Marx Lane & Mittendorf LLP

156
West 56th Street

New
York, New York 10019

Attention:
Michael J. Clain, Esq.

 

RECORD AND RETURN TO:

Sterling National Bank

400 Rella Boulevard

P.O. Box 600

Montebello, New York 10901

Attention: Commercial Loan Department

 

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MORTGAGE AND SECURITY AGREEMENT, ASSIGNMENT
OF LEASES AND RENTS AND FIXTURES FILING

 

THIS MORTGAGE
AND SECURITY AGREEMENT, ASSIGNMENT OF LEASES AND RENTS AND FIXTURES FILING is made as of February 9, 2015 this (“Mortgage”)
by TPHGREENWICH OWNER LLC, a Delaware limited liability company registered to do business in the state of New York, having
an address at 717 Fifth Avenue, Floor 12A, New York, NY 10022 (“Mortgagor”), to STERLING NATIONAL BANK,
having an office at 400 Rella Boulevard, Montebello, New York 10901, in its capacity as Administrative Agent (in such capacity,
together with any successor thereto in such capacity, herein called the “Mortgagee”) for the lenders (each,
a “Lender” and, collectively, the “Lenders”) party from time to time to the Loan Agreement
referred to below.

 

 

DEFINITION OF TERMS

 

Unless the context
clearly indicates a contrary intent, or unless otherwise specifically provided in this Mortgage, words used in this Mortgage shall
be used interchangeably in singular or plural form. Whenever the context may require, any pronouns used in this Mortgage shall
include the corresponding masculine, feminine or neuter forms, and the singular form of nouns and pronouns shall include the plural
and vice versa. All capitalized terms that are defined in the Loan Agreement and are not otherwise defined herein shall have the
respective meanings assigned to them in the Loan Agreement and, in addition, the following terms shall have the following meanings:

 

“Additional
Interest” shall mean any losses (including, without limitation, loss of bargain), costs (including, without limitation,
cost of funding) and expenses that Mortgagee may incur as a result of any default in performance of, or the termination of the
obligations of, Mortgagor pursuant to an Interest Rate Contract.

 

“Assessments”
is defined in Section 1.14 hereof.

 

“Award”
is defined in Section 1.16 hereof.

 

“Bankruptcy
Case” means, collectively, the jointly administered cases of Syms Corp, Filene’s
Basement, LLC and all other debtors that are pending under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court, Case No.
11-13511 (KJC).

 

“Business
Day” means any day other than a Saturday, a Sunday or any other day on which Mortgagee is not open for business.

 

“Damage”
is defined in Section 1.13(c) hereof.

 

“Debt”
means all Obligations.

 

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“Default Rate”
is defined in Section 3.6 hereof.

 

“Event of
Default” is defined in Section 3.1 hereof.

 

“Governmental
Authority” means each of the following: (a) the federal government, (b) any state or local government or any political
subdivision of any state or local government, or (c) any agency, court or body of either the federal government, or any state or
local government or any other political subdivision of any state or local government, exercising executive, legislative, judicial,
regulatory or administrative functions.

 

“Guarantor”
means Trinity Place Holdings Inc., a Delaware business corporation, and its successors and assigns.

 

“Guaranty”
means any indemnity agreement or guaranty made by any Guarantor to the Mortgagee.

“Including”
or “including” means “including, without limitation.”

 

“Loans”
shall mean all loans made by the Lenders from time to time under or pursuant to the Loan Agreement.

 

“Loan Agreement”
shall mean that certain Loan Agreement dated even date herewith by and between Mortgagor, as Borrower, the Lenders party thereto
and Mortgagee, as Administrative Agent for the Lenders, as the same may be amended, restated, supplemented or otherwise modified
from time to time.

 

“Loan Documents”
shall mean the Loan Agreement, the Notes, this Mortgage and all other instruments, documents or agreements executed and delivered
by Borrower, Guarantor or any Affiliate of Borrower in connection herewith or therewith, including all amendments, modifications
and supplements of or to all such instruments, documents or agreements.

 

“Mortgage”
means this this Mortgage and Security Agreement, Assignment Of Leases and Rents and Fixtures Filing, as the same may be amended,
restated, supplemented or otherwise modified from time to time.

 

“Mortgagee”
means the entities identified collectively as “Mortgagee” in the first paragraph of this Mortgage, together with their
successors and assigns.

 

“Mortgagor”
means all persons or entities identified as “Mortgagor” in the first paragraph of this Mortgage, together with their
successors and assigns.

 

“Note”
shall mean each promissory note issued to a Lender pursuant to the Loan Agreement, evidencing such Lender’s Loan; and “Notes”
shall mean all such promissory notes, collectively.

 

“Person”
or “person” means an individual, corporation, partnership, limited liability partnership, limited liability
company, trust, unincorporated association, government, governmental authority, or other entity.

 

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“Title Policy”
means that certain commitment of title insurance bearing Title No.: 14-7406-33647NYM, and issued by Fidelity National Title
Insurance Company.

 

The defined terms used
in this Mortgage which are not defined above or in the Loan Agreement have the meanings set forth elsewhere in this Mortgage.

 

 

GRANTING CLAUSE

 

In
order to secure the payment of an indebtedness in the principal sum of Forty Million and no/100 ($40,000,000.00) dollars
or so much thereof as shall, from time to time, actually be advanced, pursuant to the terms of the Loan Agreement, lawful money
of the United States of America, which is the maximum principal amount which is or under any contingency may be secured at the
date of execution hereof or at anytime thereafter, to be paid with interest in accordance with
the terms of the Loan Agreement and/or the other Loan Documents, Mortgagor has mortgaged, given, granted, bargained, sold, aliened,
enfeoffed, conveyed, confirmed and assigned (to the extent assignable), and by these presents does mortgage, give, grant, bargain,
sell, alien, enfeoff, convey, confirm and assign unto the Mortgagee, for its own benefit and for the benefit of the Lenders, forever
all assets and properties of the Mortgagor, whether now owned or hereafter acquired or created, including without limitation all
right, title and interest of the Mortgagor now owned, or hereafter acquired, in and to the property, rights and interests specified
below (such property, rights and interests being hereinafter collectively referred to as, the “Property”):

 

(a)               
all property described in Exhibit A annexed to this Mortgage (such property being called, the “Land”,
which term includes all property enclosed within the perimeter description set forth in Exhibit A, including, without limitation,
all minerals and other property located below the surface enclosed by such perimeter description, and all other rights and other
property located on or above such surface or relating to the airspace above such surface);

 

(b)              
all buildings, structures, fixtures and other improvements now or hereafter located on the Land (including, but not limited
to, furnaces, boilers, oil burners, radiators and piping, coal stokers, fuel lines, plumbing and bathroom fixtures, refrigeration,
air conditioning and sprinkler systems, wash-tubs, sinks, gas and electric fixtures, stoves, ranges, ovens, disposals, dishwashers,
hood and fan combinations, awnings, screens, window shades, elevators, motors, dynamos, refrigerators, kitchen cabinets, incinerators,
kitchen equipment, laundry equipment, plants and shrubbery), and all alterations and replacements to any of the above items specified
in this subparagraph (all of the above items in this subparagraph being collectively called, the “Improvements”),
being the same Land and Improvements which were conveyed to Syms Corp. by Deed dated August 31, 1989 made by The Chase Manhattan
Bank, N.A. f/k/a/ The Chase National Bank of the City of New York to Syms Corp., recorded in New York County on September 1, 1989
in Reel 1615, Page 2115 and as further conveyed by Trinity Place Holdings Inc., as successor by merger to Syms Corp., to the Mortgagor
by deed dated February 9, 2015 made by Trinity Place Holdings Inc. to the Mortgagor and intended to be recorded concurrently with
this Mortgage;

 

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(c)               
all of the estate, right, title, claim or demand of any nature whatsoever of the Mortgagor, either in law or in equity,
in possession or expectancy, in and to: (i) the Land, (ii) all additional lands and estates hereafter acquired by Mortgagor for
use in connection with the Land and all lands and estates that may, from time to time, by supplemental mortgage or additional agreement,
be made subject to the lien of this Mortgage, (iii) the reversion and reversions, remainder and remainders, and all land lying
in the bed of any street, road or avenue, opened or proposed, in front of or adjoining the Land, to the center line thereof, and
(iv) all the estates, rights, titles, interests, dower and rights of dower, curtesy and rights of curtesy, property, possession,
claim and demand whatsoever, both at law and in equity, of Mortgagor of, in and to the Land and all other interests which are included
in the Property;

 

(d)              
all easements, rights-of-way, strips and gores of land, streets, ways, alleys, passages, sewer rights, waters, water courses,
water rights and powers, mineral rights, and all estates, rights, titles, interests, privileges, liberties, tenements, hereditaments,
and appurtenances of any nature whatsoever, in any way belonging, relating or pertaining to the Property (including, without limitation,
all so-called “air rights,” bulk, development rights, floor area, floor area ratio, zoning rooms and other rights and
privileges now or hereafter appurtenant to the Premises and Improvements or any part thereof, as defined in, under or with respect
to the zoning and building codes or ordinances of all applicable jurisdictions and the regulations and interpretations thereunder
or thereof, whether or not transferable, and any or all of the same that may now or hereafter be acquired for use with the Premises
or Improvements, including without limitation all those rights acquired from Block 19, Lot 18 on the Tax Map of the Borough of
Manhattan) and including without limitation all benefits and rights derived or acquired from or binding against Block 19, Lot 18
on the Tax Map of the Borough of Manhattan, including without limitation all Mortgagee's rights, titles and interests in, to and
under those certain (v) Amended and Restated Declaration of Zoning Lot Restrictions between Tony Seiden and Syms Corp. dated May
26, 2009 and recorded June 17, 2009 in the Office of the City Register of the City of New York as CRFN 2009000183705, (w) Waiver
of Amended and Restated Declaration of Zoning Lot Restrictions by Signature Bank dated April 1, 2009 and recorded June 17, 2009
in said Register’s Office as CRFN 2009000183707, (x) Amended and Restated Zoning Lot Development Agreement between Tony Seiden
and Syms Corp. dated May 26, 2009 and recorded June 17, 2009 in said Register’s Office as CRFN 2009000183704, (y) Certification
of Parties in Interest, Etc. by Chicago Title Insurance Company dated March 23, 2009 and recorded June 17, 2009 in said Register’s
Office as CRFN 2009000183706, and (z) Light and Air Easement between Tony Seiden and Syms Corp. dated December 28, 2007 and recorded
January 9, 2008 in said Register’s Office as CRFN 2008000009878;

 

(e)               
(i) all machinery, apparatus, equipment, fittings, fixtures and other property of every kind and nature whatsoever and all
additions to any such property, and all renewals and replacements of any such property, and all substitutions for any such property
(all such machinery, apparatus, equipment, fittings, fixtures and other property, and all additions, renewals, replacements, and
substitutions being called, the “Equipment”), to the extent such Equipment is now owned or is hereafter acquired
by the Mortgagor, if: (1) such Equipment is now or hereafter located upon or in, or attached to, any portion of the Property, or
appurtenances thereto, (ii) all building equipment, materials and supplies of any nature whatsoever owned by the Mortgagor, now
or hereafter located upon, or intended to be incorporated in, the Property (all the items specified above in this paragraph being
called the “Tangible Personalty”), and (iii) all right, title and interest of the Mortgagor in and to any of
the Tangible Personalty which may be subject to any “security agreement” as defined in the Uniform Commercial Code
of the State of New York (the “Uniform Commercial Code”), superior in lien to the lien of this Mortgage, and
(iv) all proceeds and products of each of the items specified above in this paragraph;

 

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(f)               
except as otherwise set forth in the Loan Documents, all awards and payments, including, without limitation, interest thereon,
and the right to receive such awards and payments, which may be made with respect to the Property, whether (i) from the exercise
of the right of eminent domain (including any transfer made in lieu of the exercise of said right), or (ii) for any other injury
to or decrease in the value of the Property;

 

(g)              
all leases, licenses, concessions, occupancy agreements, and other agreements affecting the use or occupancy of the Property
now or hereafter entered into and all guarantees of any of the foregoing (all such leases, licenses, concessions, occupancy agreements,
and other agreements, and guarantees being collectively called the “Leases”), and all rents, issues and profits
of the Property (such rents, issues and profits being called the “Rents”), and all right, title and interest
of Mortgagor under each Lease, including, without limitation, all cash or securities, if any, deposited under each Lease to secure
performance by any tenant or occupant under such Lease of its respective obligations under such Lease and the right to enforce,
whether by action at law or in equity or by other means, all provisions, covenants and agreements of such Lease;

 

(h)              
all of Mortgagor’s rights in and to (i) all contracts from time to time executed by the Mortgagor, or any manager
or agent on its behalf, relating to the ownership, construction, maintenance, repair, operation, occupancy, sale or financing of
the Property, and (ii) all agreements relating to the purchase or lease of the Property or any property which is adjacent to, or
is or can be used in common with, the Property, together with the right to exercise all options under each such contract or agreement,
and under each lease of any Tangible Personalty, (iii) all consents, franchises, licenses, building permits, certificates
of occupancy and other governmental approvals relating to construction, completion, occupancy, use or operation of the Property,
and (iv) all drawings, plans, specifications and similar or related items relating to the Property;

 

(i)                
all trade names, trademarks, logos, copyrights, patents, intellectual property, good will and books and records, electronic
media, computer software, and data in paper, electronic, microwave, and other formats, relating to or used in connection with the
operation of the Property; and all general intangibles related to the operation of the Property now existing or hereafter arising;

 

(j)                
all accounts and revenues arising from the operation of the Property, including, without limitation, (i) each right
to payment now existing or hereafter arising for license or rental of any room, suite, or other space, or for goods sold or leased
or for services rendered, whether or not yet earned by performance, arising from the operation of the Property, and (ii) all
rights to payment from each credit-card, charge-card, or debit-card organization or entity, and (iii) all substitutions for each
such account or item of revenue, all proceeds of each such account or item of revenue (whether cash or non-cash, movable or immovable,
tangible or intangible) received upon the sale, exchange, transfer, collection or other disposition or substitution of any such
account or item of revenue, and any and all of the foregoing items specified in this paragraph, and all proceeds from each such
item;

 

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(k)              
all proceeds of, and all unearned premiums on, each insurance policy covering the Property, including, without limitation,
the right to receive and apply the proceeds of any insurance, judgments, or settlements made in lieu of such proceeds, for damage
to the Property;

 

(l)                
Mortgagor’s interest in all claims and causes of action relating directly or indirectly to the Property, whether such
claims or causes of action arise in Mortgagor’s name or such claims or causes of action are acquired by Mortgagor, directly
or indirectly, by subrogation or otherwise; and the right, in the name and on behalf of the Mortgagor, to appear in and defend
any action or proceeding brought with respect to the Property and to commence any action or proceeding to protect the interest
of the Mortgagee in the Property;

 

(m)            
all proceeds, whether cash or non-cash, of each of the foregoing items specified in the subsections (a) through (l) above;
and

 

(n)              
the proceeds of any loan secured by any interest in the Property described in the subsections (a) through (m) above.

 

TO HAVE AND TO HOLD
the above granted and described Property unto and to the proper use and benefit of the Mortgagee, and the successors and assigns
of the Mortgagee, for its own benefit and for the benefit of the Lenders, forever.

 

Article
I.    MORTGAGOR’S COVENANTS, REPRESENTATIONS AND WARRANTIES

 

The Mortgagor covenants
and agrees with, and represents and warrants to, the Mortgagee as follows:

 

Section
1.1            Payment of Debt. Mortgagor will
pay the Debt when due in accordance with the terms of the Loan Agreement and the other Loan Documents, and will perform, observe
and comply with all other provisions of the Loan Agreement, this Mortgage and the other Loan Documents.

 

Section
1.2            Marketable Title. Mortgagor warrants
good, marketable and insurable title in fee simple to the Property, free and clear of all liens, claims and encumbrances except
such as are listed as exceptions to title in the Title Policy insuring the lien of this Mortgage (such exceptions to the Title
Policy being collectively hereinafter referred to as, the “Permitted Encumbrances”); that it will own the Property
free and clear of liens and claims except as otherwise provided in the Loan Agreement and this Mortgage; and that this Mortgage
is and will remain a valid and enforceable lien on the Property subject only to the Permitted Encumbrances. Mortgagor will preserve
such title and will forever warrant and defend the same to the Mortgagee and will forever warrant and defend the validity and priority
of the lien hereof against the claims of all persons and parties whomsoever. Unless expressly provided otherwise, in the event
the ownership of this Mortgage and title to the fee in the Property covered by this Mortgage are vested in the same person or entity,
neither this Mortgage nor the Debt shall merge in said title, but shall continue to be and remain a valid first lien on the Property
for the amount of the Debt.

 

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Section
1.3            Estoppel Certificate. After request
by Mortgagee, Mortgagor, within fifteen (15) days and at its expense, will furnish Mortgagee with a statement, duly acknowledged
and certified, setting forth the amount of the Debt, the offsets or defenses thereto, if any, that the Loan Agreement and this
Mortgage have not been modified, or if modified, giving particulars of such modification, and any additional facts requested by
Mortgagee.

 

Section
1.4            Intentionally Omitted.

 

Section
1.5            Mortgagee’s Administrative Fees.Mortgagor
will, not more than ten (10) Business Days after demand, pay or reimburse Mortgagee and the Lenders for the payment of any reasonable,
actual costs or expenses (including reasonable attorneys’ fees and disbursements) which are incurred or expended in connection
with or incidental to (a) the preparation, execution, delivery, filing, recording, amendment or modification of this Mortgage,
the agreement to any waiver of any term under it, the release or substitution of any Property, or any other aspect of the administration
of this Mortgage, (b) any change in law affecting this Mortgage or the Property, (c) any Event of Default by Mortgagor under this
Mortgage or any of the other Loan Documents, (d) Mortgagee or any Lender exercising its right to cure any Event of Default of Mortgagor
under this Mortgage, (e) Mortgagee or any Lender exercising its right to act to protect the lien of this Mortgage, or (f) the enforcement,
defense or maintenance of any of its rights or remedies or Mortgagor’s obligations under this Mortgage or any of the Loan
Documents by litigation or otherwise. All sums so advanced and all expenses incurred by Mortgagee or any Lender hereunder or under
applicable law shall be deemed obligations owing by Mortgagor to Mortgagee or such Lender and shall bear interest, from the date
paid or incurred until paid, at the Post-Default Rate. Any amounts advanced shall be secured by this Mortgage.

 

Section
1.6            Changes in Taxation of Mortgages and Debts.
In the event of the passage after the date of this Mortgage of any law deducting from the value of real property, for the purpose
of taxation, any lien or encumbrance on such real property or changing in any way the laws for the taxation of mortgages or debts
secured by mortgages for state or local purposes or the manner of the collection of any such taxes, and imposing a tax, either
directly or indirectly, on the Debt, or any Loan Document, then the Mortgagor shall, if permitted by law, pay any tax imposed as
a result of any such law on or before the last day for payment without penalty, or within ten (10) Business Days after demand by
the Mortgagee, whichever is less. If, in the reasonable opinion of the attorneys for the Mortgagee, the Mortgagor is not permitted
by law to pay such taxes, then the Mortgagee shall have the right, at its option, to declare the Debt due and payable on a date
specified in a notice to the Mortgagor, which date shall be not less than sixty (60) days after the date such notice is given.

 

Section
1.7            No Credit For Assessments; Application of
Payments on Debt. The Mortgagor will not claim or demand, or be entitled to, any credit or credits (on account of the Debt)
for any part of the Assessments assessed against the Property. No deduction shall otherwise be made or claimed by the Mortgagor
from the taxable value of the Property, by reason of this Mortgage or the Debt. If at any time this Mortgage shall secure less
than the entire principal amount of the Debt, then each repayment of the principal amount of the Debt shall be applied first against
the portion of the Debt which is not secured by this Mortgage until such portion has been completely satisfied.

 

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Section
1.8            Revenue Stamps. If at any time the
United States of America, any state thereof, or any governmental subdivision of any such state, shall require revenue or other
stamps to be affixed to any Loan Document, then the Mortgagor will, promptly following demand by the Mortgagee, pay for such stamps,
with interest and penalties thereon, if any, and affix them to such Loan Document (to the extent required by law).

 

Section
1.9            Recording of Mortgage. The Mortgagor
will cause (a) this Mortgage, (b) each extension, modification, renewal or replacement of this Mortgage, (c) each security instrument
creating a lien or evidencing the lien of this Mortgage upon the Property, and (d) each instrument of further assurance, to be
filed, registered or recorded (immediately upon execution and delivery of each such document to the Mortgagee or its agents, but
in any event within ten (10) days of such execution and delivery), 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, preserve and perfect the lien of this Mortgage upon,
and the interest of the Mortgagee in, the Property. The Mortgagor will pay all title insurance fees and charges, all filing, registration
and recording fees, and all expenses incident to the preparation, execution and acknowledgment of this Mortgage, each mortgage
supplemental hereto, each security instrument with respect to the Property, and each instrument of further assurance, and all federal,
state, county, municipal, and other governmental taxes, duties, imposts, assessments and charges arising out of or in connection
with the Debt or the execution, delivery or recording of this Mortgage, each mortgage supplemental hereto, each security instrument
with respect to the Property, and each instrument of further assurance, or other Loan Document (all such taxes, duties, imposts,
assessments and charges being called, the “Mortgage Taxes”) in each case, to the extent payable under applicable
law. The Mortgagor shall hold harmless and indemnify the Mortgagee and each Lender, and their respective successors and assigns,
against all liability incurred by reason of the imposition of any such Mortgage Taxes on the making and recording of this Mortgage.

 

Section
1.10        Cooperation by Mortgagor. Except as otherwise provided
by the Loan Agreement, the Mortgagor will (at the sole cost and expense of the Mortgagor), do, execute, acknowledge and deliver
all such further acts, deeds, conveyances, mortgages, assignments, notices of assignments, transfers and assurances as the Mortgagee
shall, from time to time, reasonably require for the better assuring, conveying, assigning, transferring and confirming to and
unto the Mortgagee the property and rights mortgaged by this Mortgage or intended now or hereafter so to be, or which the Mortgagor
may be or may hereafter become bound to convey or assign to the Mortgagee, or for carrying out the intention or facilitating the
performance of the terms of any Loan Document or for filing, registering or recording this Mortgage. Within five (5) days following
demand from the Mortgagee, the Mortgagor will execute and deliver, and the Mortgagor hereby authorizes the Mortgagee to execute
in the name of the Mortgagor (to the extent the Mortgagee may lawfully do so), one or more financing statements, chattel mortgages
or comparable security instruments, to evidence more effectively each lien and security interest arising pursuant to this Mortgage
or any other Loan Document upon the Property. During the continuance of an Event of Default, the Mortgagor hereby authorizes the
Mortgagee to act as the attorney-in-fact of the Mortgagor to take any action which the Mortgagor is required or authorized to take
pursuant to any Loan Document. This power of attorney is coupled with an interest and is granted for a valuable consideration,
and is irrevocable.

 

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Section
1.11        Mortgagor’s General Representations and Warranties.
Subject only to the Permitted Encumbrances (and such other liens that may be incurred from time to time in accordance with the
Loan Agreement, if any) the Mortgagor warrants that it is the owner of, and the holder of title to, the Property.

 

Section 1.12       
Single Purpose Entity. Mortgagor hereby covenants that Mortgagor shall at all times remain a Special Purpose
Entity as such term is defined by the Loan Agreement.

 

Section 1.13       
Insurance.(a)The Mortgagor (i) will keep the Improvements and the Tangible Personalty insured with
all-risk coverage against loss or damage by fire, vandalism, malicious mischief and such other hazards (each such fire and other
hazard being called, a “Casualty”) as the Mortgagee shall from time to time require, in amounts approved by
the Mortgagee, which amounts shall in no event be less than one hundred (100%) percent of the replacement cost of the Improvements
and the Tangible Personalty, if any, and (ii) will maintain comprehensive general liability insurance and such other forms
of insurance coverage with respect to the Property as the Mortgagee shall from time to time reasonably require in amounts reasonably
approved by the Mortgagee. If the Land is improved, and any portion of the Land or any interest therein is located in a federally
designated “special flood hazard area,” then a flood insurance policy shall also be delivered by the Mortgagor to the
Mortgagee (all insurance policies required to be maintained by the Mortgagor pursuant to this Mortgage are collectively called,
the “Policies”). If no portion of the Land is located in a federally designated “special flood hazard
area,” then such fact shall be substantiated by a certificate, in form satisfactory to the Mortgagee, from a licensed surveyor,
appraiser or professional engineer or other qualified person, satisfactory to the Mortgagee, in accordance with all applicable
laws and regulations.

 

(b)              
The Mortgagor shall at all times comply with, and shall cause both the Property, and the use, occupancy, operation, maintenance,
alteration, repair and restoration of the Property, to comply with, the terms, conditions, stipulations and requirements of the
Policies. Each Policy shall be issued by an insurer having a minimum policy holders rating of “A-”and Financial Size
Category of Class IX or higher pursuant to the latest rating publication of Property and Casualty Insurers by A.M. Best Company
(or, in the absence of such publication, or if A.M. Best Company shall change its ratings or the standards for such ratings, or
shall fail to publish them currently, or shall not maintain its current reputation, then each Policy shall be issued by an insurer
having a minimum rating pursuant to such rating standards as may be designated by the Mortgagee in its sole discretion), at all
times when such Policy is in effect. Each such insurer must be financially sound and reputable and must otherwise be reasonably
acceptable in all respects to the Mortgagee. All Policies shall, with respect to the Improvements, contain the standard mortgagee
non-contribution clause endorsement (subject to the Mortgagee’s approval in its sole discretion). All Policies shall, with
respect to the remaining portion of the Property, contain such endorsement to the extent such endorsement is available. To the
extent that such endorsement is not available with respect to any such portion of the Property, then the Policies shall contain,
with respect to such portion, a lender’s loss payable clause endorsement (subject to the Mortgagee’s approval in its
sole discretion), all naming the Mortgagee as the person to which all payments made by the insurer under such Policies shall be
paid. All Policies shall otherwise be in form and substance satisfactory in all respects to the Mortgagee. Blanket insurance policies
shall not be acceptable for the purposes of this Section 1.13 unless otherwise approved in writing to the contrary by the Mortgagee,
such approval not to be unreasonably withheld. Subject to the provisions of Section 1.15 of this Mortgage, the Mortgagor shall
pay the premiums for the Policies as the same become due and payable. At the request of the Mortgagee, the Mortgagor will deliver
the Policies to the Mortgagee. Not later than thirty (30) days prior to the expiration date of each Policy, the Mortgagor will
deliver to the Mortgagee a renewal policy or policies (in replacement of such Policies) marked “premium paid” (with
respect to the premium under such Policies for the next twelve month period) by the insurer issuing such Policies or accompanied
by other evidence of payment of premium which is satisfactory to the Mortgagee. The insurer issuing each Policy must be obligated,
pursuant to an endorsement or certificate satisfactory to the Mortgagee in its sole discretion, to give at least thirty (30) days
prior written notice to the Mortgagee of the expiration, cancellation, termination, or modification of such Policy. If at any time
the Mortgagee is not in receipt of written evidence that all insurance required under this Mortgage is in full force and effect,
then the Mortgagee shall have the right, without notice to the Mortgagor, to take such action as the Mortgagee deems necessary
to protect its interest in the Property, including, without limitation, the obtaining of such insurance coverage as the Mortgagee
in its sole discretion deems appropriate, and reasonable, actual all expenses incurred by the Mortgagee in connection with such
action or in obtaining such insurance and keeping it in effect shall be paid by the Mortgagor to the Mortgagee upon demand and
until paid shall be secured by this Mortgage in accordance with the provisions of this Mortgage.

 

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(c)               
If the Property shall be damaged or destroyed, in whole or in part, by fire or other hazard or casualty (such damage or
destruction being called, the “Damage”), then the Mortgagor shall give notice of such Damage to the Mortgagee
promptly after Mortgagor obtains actual knowledge thereof, and the Mortgagor hereby authorizes and empowers the Mortgagee, following
the occurrence and during the continuance or an Event of Default, at the Mortgagee’s option and at the Mortgagee’s
sole discretion, as attorney-in-fact for the Mortgagor, to give notice of loss and make proof of loss, to adjust and compromise
any claim under any Policy, to appear in and prosecute any action arising from any Policy, to collect and receive insurance proceeds
and to deduct therefrom the Mortgagee’s expenses incurred in the collection process, to endorse any checks, drafts or other
instruments representing any proceeds of such insurance, whether payable by reason of loss under any Policy or otherwise, and to
make any election required or permitted under any Policy relating to repair or restoration. Following the occurrence of such Damage,
and provided that an Event of Default shall not have occurred and be continuing, Mortgagor shall, it its sole but reasonable discretion,
have the option to restore the Property to a similar condition as it existed prior to the Damage, or to apply any and all proceeds
of insurance actually received in connection therewith to the payment of the Debt, provided, however, that if the cost to restore
the Property to a similar condition as it existed prior to the Damage, is greater than or equal to $1,000,000.00, Mortgagor shall
not be entitled, without consent of Mortgagee, such consent not to be unreasonably withheld, to give notice of loss and make proof
of loss, to adjust and compromise any claim under any Policy, to appear in and prosecute any action arising from any Policy, to
collect and receive insurance proceeds, to endorse any checks, drafts or other instruments representing any proceeds of such insurance,
whether payable by reason of loss under any Policy or otherwise, and to make any election required or permitted under any Policy
relating to repair or restoration. All proceeds of insurance on account of any Damage, to the extent received by the Mortgagor,
shall be deemed to have been received in trust for the Mortgagee, and shall be immediately paid by the Mortgagor to the Mortgagee.
Any sums paid to the Mortgagee by any insurer may be retained and applied by the Mortgagee toward payment of the Debt, whether
or not then due and payable, in such order, priority and proportions as Mortgagee in its discretion shall deem proper in accordance
with the terms of the Loan Agreement. At the discretion of the Mortgagee, any sums paid to the Mortgagee by any insurer, on account
of any Damage, may: (i) be held, either in whole or in part, as additional security for the Debt, (ii) be paid, either in whole
or in part, to the Mortgagor for such purposes as the Mortgagee shall designate, or (iii) be paid, either in whole or in part,
to such third parties, for the repair or restoration of the Damage, as the Mortgagee may determine, provided, that any amount received
in excess of the Debt shall be immediately returned to Mortgagor. If the Mortgagee shall receive and retain any insurance proceeds
on account of any Damage, then the lien of this Mortgage shall be reduced only by the amount of such proceeds actually applied
by the Mortgagee in reduction of the Debt. The Mortgagee shall not be deemed to have applied any insurance proceeds in reduction
of the Debt unless and until the Mortgagee has given notice to the Mortgagor that the Mortgagee has applied such proceeds to the
Debt. Until such notice is given with respect to the insurance proceeds, then such proceeds, to the extent paid to the Mortgagee
and held by it, shall be deemed to be held by the Mortgagee as additional security for the Debt. The Mortgagee shall not be obligated
to see to the proper application of insurance money paid over to the Mortgagor. If the Land shall have been sold on foreclosure
of this Mortgage, then, as between the Mortgagor and the Mortgagee, the Mortgagee shall have the right to receive all insurance
proceeds on account of any Damage, and the Mortgagor shall pay over to the Mortgagee said insurance proceeds as, if and when the
Mortgagor receives same, to the extent of (x) any deficiency between (1) the unpaid balance of this Mortgage at the time of
such sale, and (2) the net proceeds of such sale (after payment of all expenses) actually received by the Mortgagee, with legal
interest thereon, whether or not a deficiency judgment on this Mortgage shall have been sought or recovered, and (y) the reasonable
attorney’s fees, reasonable, actual costs and disbursements incurred by the Mortgagee in connection with the collection of
such insurance proceeds. All right, title and interest of the Mortgagor in and to all Policies shall inure to the benefit of and
pass to the successor-in-interest of the Mortgagor or the purchaser or grantee of the Land and Improvements. If the prior written
appraisal of any underwriter is required in connection with the transfer of any Policy to such successor-in-interest, purchaser,
or grantee, then the Mortgagor shall obtain such appraisal, and deliver a copy of such appraisal to the Mortgagee, on or before
the date of such transfer.

 

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(d)              
The provisions of this Mortgage are only for the benefit of the Mortgagor, the Mortgagee and the Lenders, and no third party
shall be a beneficiary of any provision of this Mortgage. Moreover, the Mortgagee shall have no obligation to supervise the disbursement
of the proceeds of any Policy (or any Award), and the Mortgagee shall have no liability if such proceeds are not applied, in whole
or in part, to the restoration of any Casualty, or if the Award is not applied to the restoration of any part of the Property not
taken by a Taking. Notwithstanding anything contained herein to the contrary, the provisions of Section 254(4) of the Real
Property Law of New York (covering the insurance of buildings against loss by fire) shall not apply to this Mortgage.

 

(e)               
Mortgagor shall, upon request of Mortgagee, obtain and deliver evidence of such other types and amounts of insurance coverage
as are reasonably requested by Mortgagee and are customarily (A) maintained by owners or operators of properties similarly situated
to the Property, or (B) required by institutional lenders in like transactions.

 

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Section 1.14       
Assessments. Subject to Section 1.15 of this Mortgage, the Mortgagor shall pay all taxes, assessments, water
rates, sewer rents and other charges (including vault charges and license fees for the use of vaults, chutes and similar areas
adjoining the Land, and all special assessments and other assessments for local improvements, except that if any such assessment
is payable in installments, then the Mortgagor need only pay, at any given time, the installments which are then due and payable)
which are now due and payable, or which are now or hereafter levied or assessed against the Property (all such taxes, assessments,
rates, rents, charges and fees being collectively hereinafter referred to as, the “Assessments”) prior to the
date upon which the same shall become delinquent and, upon the failure of the Mortgagor to pay any Assessments, the Mortgagee or
any Lender may, in its sole discretion, but shall not be obligated to, pay such Assessments, and the Mortgagor shall reimburse
the Mortgagee or such Lender, upon demand by the Mortgagee or such Lender, for such expenditures, provided, however, that Mortgagor
shall not be required to pay or discharge any such debt, obligation, tax assessment, charge, levy or claim so long as it is Property
Contested. The Mortgagor shall deliver to the Mortgagee (as and when payment is made of the Assessments) receipted bills, cancelled
checks and other evidence satisfactory to the Mortgagee evidencing the payment of such Assessments prior to the date upon which
any fine, penalty, interest or cost may be added thereto or imposed by law for the nonpayment of such Assessments.

 

Section 1.15       
Reserve Fund. The Mortgagor will, at the option of the Mortgagee, in addition to the payments of principal and/or
interest due and payable pursuant to the Loan Agreement (the “Monthly Loan Payments”), pay to the Mortgagee,
on each date and in the manner specified in the Loan Agreement for payment of the Monthly Loan Payments, one hundred (100%)
percent of one-twelfth of the amount which would be sufficient to pay, during the one-year period commencing on such first day
(such year being called, the “Current Year”), the sum of (a) the Assessments, and (b) the premiums on all Policies
(the “Insurance Premiums”), to the extent such Assessments and Insurance Premiums are payable, or, at the Mortgagee’s
option, are estimated by the Mortgagee to be payable, during the Current Year (the total monthly payment to the Mortgagee, pursuant
to this sentence, at any given time, on account of the Assessments and the Insurance Premiums, is called, the “Monthly
Escrow Payments”). The Mortgagee will apply the amounts paid by the Mortgagor to the Mortgagee pursuant to the preceding
sentences of this paragraph (such amounts held by the Mortgagee being called, the “Reserve Fund”) to the payment
of Assessments and the Insurance Premiums which are required to be paid by the Mortgagor pursuant to the provisions of this Mortgage.
If the Mortgagor shall ever be entitled to a refund of all or any portion of the Reserve Fund, then the Mortgagee may pay such
refund to the person shown on the records of the Mortgagee to be the owner of the Property, and may otherwise deal with such owner,
even if such owner is not the original Mortgagor specified in this Mortgage. If, at any time, the amount of the Reserve Fund is
less than the sum of the two next Monthly Escrow Payments which are due in the then Current Year, then the Mortgagor shall pay
to the Mortgagee, upon request, an amount which the Mortgagee shall estimate, in its sole discretion, as sufficient to make up
the deficiency. Until expended or applied as above provided, any amounts in the Reserve Fund may be commingled with the general
funds of the Mortgagee and shall constitute additional security for the Debt and shall not bear interest. Furthermore, the Mortgagor
shall pay for any fee incurred by the Mortgagee, should the Mortgagee engage a third party provider to service the Reserve Fund.
Mortgagee shall not require the establishment of the Reserve Fund, nor the imposition of Monthly Escrow Payments so long as no
Event of Default occurs and is continuing.

 

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Section 1.16       
Eminent Domain. Notwithstanding any taking by any public or quasi-public authority through eminent domain, change
of grade, inverse condemnation, or other similar action (each such taking being called, a “Taking”), the Mortgagor
shall continue to pay the Debt as provided in the Loan Agreement and this Mortgage. The Debt shall not be reduced until and to
the extent that any award or payment for any Taking (each such award or payment being called, the “Award”) shall
have been actually received and applied by the Mortgagee to the discharge of the Debt. The Mortgagee shall not be deemed to have
applied any proceeds of the Award in reduction of the Debt unless and until the Mortgagee has given notice to the Mortgagor that
the Mortgagee has applied such proceeds to the Debt. Until such notice is given with respect to such proceeds of the Award, then
such proceeds, to the extent paid to the Mortgagee and held by it, shall be deemed to be held by the Mortgagee as additional security
for the Debt. The Mortgagee may apply the entire amount of any such Award to the discharge of the Debt whether or not then due
and payable in such order, priority and proportions as the Mortgagee in its discretion shall deem proper in accordance with the
terms of the Loan Agreement. The Mortgagee shall not be obligated to see to the proper application of any Award paid over to the
Mortgagor. If the Property is sold, through foreclosure or otherwise, prior to the receipt by the Mortgagee of such Award, then
the Mortgagee shall have the right, whether or not a deficiency judgment on the Loan Agreement shall have been sought, recovered
or denied, to receive such Award. The Mortgagor shall pay over to the Mortgagee: (a) said Award as, if and when the Mortgagor receives
such Award, together with (b) interest on such Award, whether or not a deficiency judgment on this Mortgage shall have been sought
or recovered or denied, and (c) the reasonable attorney’s fees, reasonable, actual costs and disbursements incurred by the
Mortgagee in connection with the collection of such Award. The Mortgagor shall file and prosecute its claim or claims for each
Award in good faith and with due diligence and cause the same to be collected and paid over to the Mortgagee. The Mortgagor hereby
irrevocably authorizes and empowers the Mortgagee, during the continuance of an Event of Default in the name of the Mortgagor or
otherwise, to collect and receipt for each Award and to file and prosecute such claim or claims. The Mortgagor shall, upon demand
of the Mortgagee, make, execute and deliver any and all assignments and other instruments sufficient for the purpose of assigning
each Award to the Mortgagee, free and clear of all encumbrances of any kind or nature whatsoever. However, such assignments and
other instruments shall not be necessary in order to establish the Mortgagee’s rights to any Award.

 

Section 1.17       
Leases and Tenancies.Subject to the terms of this Section 1.17, the Mortgagee waives the right to enter the
Property for the purpose of collecting the Rents, and grants the Mortgagor the right to collect the Rents and, subject to any restrictions
set forth in the Loan Agreement, to lease the Property. The Mortgagor shall hold the Rents in trust for use in payment of the Debt,
provided, however, that prior to an Event of Default, the Mortgagor may apply the Rents held by the Mortgagor at
any given time, first, to all amounts which are due and payable on account of the Debt at such time, second, to all expenses accruing
with respect to the Property, third, to the payment of all other liabilities of the Mortgagor, to the extent then due and payable,
and then fourth, to the Mortgagor. The right of the Mortgagor to collect the Rents and to lease the Property or any part thereof
may be revoked by the Mortgagee upon any Event of Default under the terms of this Mortgage, the Loan Agreement or any other Loan
Document and may be, in the sole discretion of the Mortgagee, reinstated following the resolution of such Event of Default to Mortgagee’s
satisfaction. Thereafter, the Mortgagee may let the Property or any part thereof, and may retain and apply the Rents toward payment
of the Debt in such order, priority and proportions as the Mortgagee, in its discretion, shall deem proper, or toward the operation,
maintenance and repair of the Property or any part thereof, and irrespective of whether the Mortgagee shall have commenced a foreclosure
of this Mortgage or shall have applied or arranged for the appointment of a receiver. The Mortgagee shall give to the Mortgagor
prompt notice of such revocation of the right to let and collect the Rents within a reasonable time after such revocation. The
Mortgagor represents, warrants, and covenants that, on or before the date of this Mortgage, the Mortgagor has not: (a) made, or
suffered to be made, any Lease, (b) modified any Lease, (c) cancelled or terminated any Lease, (d) accepted any prepayment of any
Rents for a period of more than one (1) month in advance of the date when such Rents are due and payable, or (e) further assigned
the whole or any part of the Rents or any Lease. On and after the occurrence of an Event of Default, the Mortgagor shall not, unless,
at arms’ length upon market terms (including such other terms and conditions as are contained in similar Leases for similar
space in New York City by landlords using prudent business judgment) without the prior written consent of the Mortgagee: (1) make,
or suffer to be made, any Lease, (2) modify any Lease, (3) cancel or terminate any Lease, (4) accept any prepayment of any Rents
for a period of more than one (1) month in advance of the date when such Rents are due and payable, or (5) further assign the whole
or any part of the Rents or any Lease. The Mortgagor shall (i) fulfill or perform each and every provision of the Leases on
the part of the Mortgagor to be fulfilled or performed, (ii) promptly send to the Mortgagee copies of each notice of default
which the Mortgagor shall send or receive under each Lease, and (iii) enforce, short of termination of any Lease, the performance
or observance of the provisions of such Lease by the tenant under such Lease. All Leases of the Property shall be subject and subordinate
to this Mortgage and to any and all amendments, extensions, restatements and/or consolidations of this Mortgage from time to time.
The Mortgagor shall, once every year, provide to the Mortgagee a complete and detailed leasing status report with respect to the
Improvements, which leasing status report is required to be satisfactory in all reasonable respects to the Mortgagee. In addition
to the rights which the Mortgagee may have in this Mortgage, during the continuation of an Event of Default the Mortgagee, at its
option, may require the Mortgagor to pay monthly in advance to the Mortgagee, or any receiver appointed to collect the Rents, the
fair and reasonable rental value for the use and occupation of each part of the Property as may be in possession of the Mortgagor
or any of its affiliates. Upon default in any such payment, and upon written notice to Mortgagor, the Mortgagor will vacate and
surrender possession of the Property to the Mortgagee, or to such receiver, and, if the Mortgagor shall fail to vacate and surrender
the Property as provided above, then the Mortgagor may be evicted by summary proceedings or otherwise. Nothing contained in this
Section 1.17 shall be construed as imposing on the Mortgagee any of the obligations of the landlord under the Leases. Notwithstanding
anything contained herein to the contrary, the Mortgagee shall have all of the rights against each tenant or other occupant of
the Property pursuant to Section 291-f of the Real Property Law of the State of New York.

 

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Section 1.18       
Intentionally Omitted.

 

Section 1.19       
Sale or Mortgage By Mortgagor.(a) Neither the Property, nor any interest in the Mortgagor or Holdings (whether
partnership, stock, equity, beneficial, profit, loss or otherwise), shall in any manner, directly or indirectly, be further encumbered,
sold, transferred, assigned or conveyed (or, in the case of the Property, leased), or permitted to be further encumbered, sold,
transferred, assigned, conveyed or leased, without the prior written consent of the Mortgagee. The above provisions of this Section
1.19 shall apply to each and every such further encumbrance, sale, transfer, assignment, conveyance or lease, regardless of whether
or not the Mortgagee has consented to, or waived by its action or inaction its rights under this Mortgage with respect to, any
particular encumbrance, sale, transfer, assignment, conveyance or lease, and irrespective of whether such further encumbrance,
sale, transfer, assignment, conveyance or lease is voluntary, by reason of operation of law or is otherwise made. In addition,
the Mortgagor shall not, without the Mortgagee’s prior written consent, (i) permit the transfer or issuance of any stock,
partnership, membership, ownership or other equity or beneficial interest in the Mortgagor or Holdings, (ii) merge or consolidate,
or permit Holdings to merge or consolidate, with any other party or entity, (iii) liquidate or dissolve itself (or suffer any liquidation
or dissolution), or permit Holdings to do so, or (iv) acquire by purchase or otherwise all or substantially all the business or
assets of, or any stock, partnership, membership, ownership interest or other evidence of equity or beneficial ownership of, any
entity. The Mortgagor shall not, and shall not permit Holdings to, dissolve or terminate or materially amend the terms of its partnership
agreement, operating agreement, or other agreement with the holders of equity interests.

 

(b)              
Notwithstanding the foregoing, Mortgagee’s prior written consent will not be required for (i) any Permitted Transfer
(as defined below), so long as all Transfer Requirements (as defined below) applicable to such Permitted Transfer are timely satisfied
or (ii) the encumbrance, sale, transfer, assignment or conveyance, in any manner, directly or indirectly, of any stock of the Guarantor
or of any equity interests in any entity that directly or indirectly holds any such stock. For purposes of this Section 1.19(b),
(i) the term “Permitted Transfer” shall mean the following: (A) the transfer of such percentage of the Equity
Interests (as defined below) in Mortgagor or Holdings as may be permitted by the Loan Agreement, and (B) any lease permitted by
the Loan Agreement, and (ii) the term “Transfer Requirements” means, with respect to any Permitted Transfer,
all of the following that apply to that transfer: (A) in the case of any Permitted Transfer, none of the persons or entities liable
for the repayment of the Debt shall be released from such liability and (B) no Event of Default shall exist. The term “Equity
Interest” means partnership interests in Mortgagor or Holdings, if Mortgagor or Holdings is a partnership, member interests
in Mortgagor or Holdings, if Mortgagor or Holdings is a limited liability company, or shares of stock of Mortgagor or Holdings,
if Mortgagor or Holdings is a corporation.

 

Section 1.20       
Maintenance and Repairs; Compliance with Laws and Recorded Documents. 

 

(a) Borrower shall
cause the Property to be maintained in accordance with the provisions of Section 5.1(d) of the Loan Agreement.

 

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(b)              
The Mortgagor represents and warrants that the Property is currently in compliance with, and the Mortgagor shall in the
future promptly comply in all material respects with, all applicable existing and future governmental laws, orders, ordinances,
rules and regulations affecting the Property or its use, including specifically, but not limited to, provisions of the Americans
with Disabilities Act. The Mortgagor shall comply with the requirements of all (and shall not modify, amend or terminate any) easements
and restrictive covenants which from time to time affect the Property. The Mortgagor shall also comply with all requirements of
(and to the extent reasonably within the Mortgagor’s control, maintain, preserve, enforce and renew) all rights of way, easements,
grants, privileges, licenses, franchises, restrictive covenants, recorded instruments, and other agreements which from time to
time benefit or pertain to the Property. The Mortgagor shall not modify, amend or terminate, or surrender any of its rights under,
any of such rights of way, easements, grants, privileges, licenses, franchises or restrictive covenants. The Mortgagor will not,
without obtaining the prior written consent of the Mortgagee, initiate, join in or consent to any new private restrictive covenant,
zoning ordinance, or other public or private restrictions, limiting or affecting the uses which may be made of the Property. The
Mortgagor will not alter the use of the Property (or any part thereof or interest therein) without the prior written consent of
the Mortgagee. The Mortgagor shall not permit the Property or any part thereof to be used to qualify for fulfillment of any municipal
or other governmental requirements for the construction or maintenance of any building, structure, or other improvement on premises
not mortgaged under this Mortgage; and Mortgagor hereby assigns to Mortgagee all rights to consent to such use. No building or
other improvement now or hereafter constructed on the Property shall rely on any premises not mortgaged under this Mortgage in
order to qualify for fulfillment of any municipal or other governmental requirements. The Mortgagor shall not impair, or permit
impairment of, the integrity of the Property as a single zoning lot or lots separate and apart from other premises. Mortgagor’s
obligations under this Section 1.20 shall at all times be subject to 9.17 of the Loan Agreement.

 

Section 1.21       
Intentionally Omitted.

 

Section 1.22       
Compliance With Loan Documents. The Mortgagor shall observe and perform each of the terms, covenants and provisions
contained in any of the Loan Documents prior to the expiration of any applicable cure period with respect thereto.

 

Section 1.23       
Inspection. The Mortgagee or any Lender and their agents shall have the right to enter and inspect the Property
at all reasonable times during business hours and, unless during the continuance of an Event of Default or in the event of an imminent
threat to the Property, upon 24 hour telephonic notice to Mortgagor.

 

Section 1.24       
Anti-Terrorism. Mortgagor hereby represents and warrants that neither Mortgagor nor any of Mortgagor’s
members, shareholders, directors, officers, partners, trustees, affiliates, or principals: (a) is in violation of any legal requirements
relating to terrorism or money laundering, including, without limitation, Executive Order No. 13224 on Terrorist Financing effective
September 24, 2001 (the “Executive Order”), and the Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56 (the “Patriot Act”), (b) is
a “Prohibited Person” which is defined as follows: (i) a person or entity that is listed in the annex to, or is otherwise
subject to the provisions of, the Executive Order, (ii) a person or entity owned or controlled by, or acting for or on behalf of,
any person or entity that is listed in the annex to, or is otherwise subject to the provisions of, the Executive Order, (iii)a
person or entity with whom Mortgagor is prohibited from dealing or otherwise engaging in any transaction by any terrorism or money
laundering legal requirements, including the Executive Order and the Patriot Act, (iv)a person or entity who commits, threatens
or conspires to commit or supports “terrorism” as defined in the Executive Order, (v)a person or entity that is named
as a “specially designated national and blocked person” on the most current list published by the U.S. Treasury Department
Office of Foreign Assets Control, and (vi) a person or entity who is affiliated with any person or entity listed above, and (c)
will (i) conduct any business or engage in any transaction or dealing with any Prohibited Person, including the making or receiving
of any contribution of funds, goods or services to or for the benefit of any Prohibited Person, (ii) deal in, or otherwise engage
in any transaction relating to, any property or interests in property blocked pursuant to the Executive Order, or (iii) engage
in or conspire to engage in any transaction that evades or avoids, or has the purposes of evading or avoiding, or attempts to violate,
any of the prohibitions set forth in the Executive Order or the Patriot Act.

 

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Section 1.25       
Operating Account. Mortgagor shall establish and maintain an operating account with the Mortgagee in accordance
with the Loan Agreement.

 

Section 1.26       
No Brokers. The Mortgagor covenants and agrees that no brokerage commission or other fee, commission or compensation
is to be paid by the Mortgagee on account of the Debt and secured hereby, or any other transaction between the Mortgagor and the
Mortgagee. The Mortgagor agrees to indemnify the Mortgagee against all claims for any such fee, commission, or compensation.

 

Article
II. SECURITY AGREEMENT

 

Section 2.1           
Security Interest. This Mortgage constitutes both a real property mortgage and a “security agreement,”
within the meaning of the Uniform Commercial Code, and the Property includes both real and personal property and all other rights
and interests, whether tangible or intangible in nature, of the Mortgagor in the Property. The Mortgagor, by executing and delivering
this Mortgage, hereby grants to the Mortgagee, as security for the Debt, a security interest in, and lien on, the Property.

 

Section 2.2           
Remedies Under Security Agreement and UCC.If there shall be an Event of Default hereunder, then the Mortgagee,
in addition to any other rights and remedies which it may have, shall have and may exercise immediately and without demand, any
and all rights and remedies granted to a secured party upon default under the Uniform Commercial Code, including, without limiting
the generality of the foregoing, the right to take possession of the Tangible Personalty and all other tangible property which
is included in the Property, and to take such other measures as the Mortgagee may deem necessary for the care, protection and preservation
of the Property, and to sell the Property. Provided that an Event of Default shall have occurred and be continuing, upon request
or demand of the Mortgagee, the Mortgagor shall at its expense assemble the Tangible Personalty (and all other tangible personal
property which is included in the Property) and make it available to the Mortgagee at a convenient place acceptable to the Mortgagee.
The Mortgagor shall pay to the Mortgagee and each Lender on demand any and all actual expenses, including legal expenses and reasonable
attorneys’ fees, incurred or paid by the Mortgagee or such Lender in protecting its interest in the Property and in enforcing
the Mortgagee’s rights under this Mortgage with respect to the Property. Any notice of sale, disposition or other intended
action by the Mortgagee or any Lender with respect to the Property sent to the Mortgagor in accordance with the provisions of this
Mortgage at least seven (7) days prior to the date of any such sale, disposition or other action, shall constitute reasonable notice
to the Mortgagor, and the method of sale or disposition or other intended action set forth or specified in such notice shall conclusively
be deemed to be commercially reasonable within the meaning of the Uniform Commercial Code unless objected to in writing by the
Mortgagor within five (5) days after receipt by the Mortgagor of such notice. The proceeds of any sale or disposition of the Property
may be applied by the Mortgagee to the payment of the Debt in such order, priority and proportions as the Mortgagee in its discretion
shall deem proper.

 

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Section 2.3           
Intentionally Omitted

 

Article
III.                     
EVENTS OF DEFAULT; MORTGAGEE’S REMEDIES

 

Section 3.1           
Definition of “Event of Default”. The term Event of Default shall have the meaning given to such
term in the Loan Agreement.

 

Section 3.2           
Remedies Upon Default. Upon the occurrence of any Event of Default all sums secured hereby shall become immediately
due and payable, without notice or demand except as provided in the Loan Agreement, at the option of Mortgagee and Mortgagee may:

 

(a)               
Have a receiver appointed as a matter of right on an ex parte basis without notice to Mortgagor and without regard
to the sufficiency of the Property or any other security for the indebtedness secured hereby and, without the necessity of posting
any bond or other security. Such receiver shall take possession and control of the Property and shall collect and receive the Rents.
If Mortgagee elects to seek the appointment of a receiver for the Property, Mortgagor, by its execution of this Mortgage, expressly
consents to the appointment of such receiver, including the appointment of a receiver ex parte if permitted by applicable
law. The receiver shall be entitled to receive a reasonable fee for managing the Property, which fee may be deducted from the Rents
or may be paid by Mortgagee or any Lender and added to the Debt secured by this Mortgage. Immediately upon appointment of a receiver,
Mortgagor shall surrender possession of the Property to the receiver and shall deliver to the receiver all documents, records (including
records on electronic or magnetic media), accounts, surveys, plans, and specifications relating to the Property and all security
deposits. If the Rents are not sufficient to pay the costs of taking control of and managing the Property and collecting the Rents,
any funds expended by Mortgagee or any Lender, or advanced by Mortgagee or any Lender to the receiver, for such purposes shall
become an additional part of the Debt secured by this Mortgage. The receiver may exclude Mortgagor and its representatives from
the Property. Mortgagor acknowledges and agrees that the exercise by Mortgagee of any of the rights conferred under this Section 3.2
shall not be construed to make Mortgagee or any Lender a “mortgagee-in-possession” of the Property so long as Mortgagee
or any Lender has not itself entered into actual possession of the Property;

 

(b)              
Proceed to foreclose on this Mortgage as now or then provided by law (in which event Mortgagee shall be entitled to the
appointment of a receiver) pursuant to a judicial proceeding in accordance with Article 13 of the New York Real Property Actions
and Proceedings Law or by advertisement in accordance with Article 14 of New York Real Property Actions and Proceedings Law (or
any successor or replacement statute thereof). Any foreclosure shall forever bar Mortgagor and all persons claiming under Mortgagor
from all right and interest in the Property. In any such proceeding Mortgagee and the Lenders shall be entitled to recover all
costs and expenses (regardless of the particular nature thereof and whether incurred prior to or during such proceeding) incident
to the realization of its rights hereunder, including court costs and reasonable attorneys’ fees. Mortgagee shall be entitled
to possession of the Property during any period of redemption. Mortgagor hereby waives any right it or its successors in interest
may have in the event of acceleration or foreclosure to obtain a partial release of the Property from the lien of this Mortgage
by paying less than the entire amount then secured hereby, or to partially redeem the Property by paying less than the amount necessary
to effect full redemption. If a deficiency remains after proper application of the proceeds of sale of the Property, Mortgagor
shall pay the same immediately after determination of the amount thereof;

 

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(c)               
Sue on the Loan Agreement as permitted under applicable law; and/or

 

(d)              
Avail itself of any other right or remedy available to it under the terms of this Mortgage, the other Loan Documents or
applicable law.

 

Section 3.3           
No Waiver. By accepting payment of any sum secured hereby after its due date, Mortgagee does not waive its right
either to require prompt payment when due of all other sums so secured or to declare an Event of Default for failure to do so.

 

Section 3.4           
Litigation Relating to Property. Upon the occurrence and during the continuance of an Event of Default or in
the event of a conflict in Mortgagor’s representation of Mortgagee in any proceeding, Mortgagee shall have the right to appear
in and defend any action or proceeding brought with respect to the Property and to bring any action or proceeding, in the name
and on behalf of the Mortgagor, which the Mortgagee, in its discretion, feels should be brought to protect the Mortgagee’s
interest in the Property.

 

Section 3.5           
Waiver of Marshaling, Etc. In connection with any foreclosure sale under this Mortgage, Mortgagor hereby waives,
for itself and all others claiming by, through or under Mortgagor, any right Mortgagor or such others would otherwise have to require
marshaling or to require that the Property be sold in parcels or in any particular order.

 

Section 3.6           
Intentionally Omitted.

 

Section 3.7           
Mortgagee’s Right to Remedy Defaults. Upon the occurrence of any Event of Default under this Mortgage,
the Mortgagee may, at its discretion, remedy the same and for such purpose shall have the right to enter upon the Property without
thereby becoming liable to the Mortgagor or any person holding under or claiming under or through the Mortgagor. Nothing contained
in this Mortgage shall in any manner obligate the Mortgagee or any Lender to remedy any Event of Default under this Mortgage. If
the Mortgagee or any Lender shall remedy such Event of Default or appear in, defend, or bring any action or proceeding to protect
the Mortgagee’s interest in the Property or to foreclose this Mortgage or collect the Debt, then the costs and expenses of
remedying such default, or bringing such action or proceeding (including reasonable attorneys’ fees to the extent permitted
by law), with interest at the Default Rate, shall be paid by the Mortgagor to the Mortgagee upon demand. To the extent that any
of the costs or expenses paid by the Mortgagee or any Lender after default by the Mortgagor shall constitute payment of (a) taxes,
charges or assessments which may be imposed by law upon the Property, (b) premiums on insurance policies covering the Property,
(c) expenses incurred in upholding the lien of this Mortgage, including, but not limited to, the costs and expenses of any
litigation to collect the Debt secured by this Mortgage or to prosecute, defend, protect or preserve the rights and the lien created
by this Mortgage, (d) any amount, cost or charge to which the Mortgagee or any Lender becomes subrogated, upon payment, whether
under recognized principles of law or equity, or under express statutory authority, or (e) unless prohibited by applicable laws,
any other amount; then, and in each such event, all such costs, expenses and amounts, together with interest thereon at the Default
Rate, shall be added to the Debt secured by this Mortgage, and shall be secured by this Mortgage.

 

    	19

    	 

    

  

Section 3.8           
Intentionally Omitted.

 

Article
IV.                     
MISCELLANEOUS

 

Section 4.1           
Notices.
Any notice, request or demand given or made under this Mortgage shall be in accordance with the Loan Agreement.

 

Section 4.2           
No Notice From Mortgagee Unless Agreed in Mortgage. The Mortgagor shall not be entitled to any notices of any
nature whatsoever from the Mortgagee except with respect to matters for which this Mortgage or any other Loan Document specifically
and expressly provides for the giving of notice by the Mortgagee to the Mortgagor. The Mortgagor hereby expressly waives, to the
maximum extent permitted by law, the right to receive any notice from the Mortgagee with respect to any matter for which this Mortgage
does not specifically and expressly provide for the giving of notice by the Mortgagee to the Mortgagor.

 

Section 4.3           
Interest Rate Ceilings. This Mortgage and the Loan Agreement are subject to the express condition that at no
time shall the Mortgagor be obligated or required to pay interest on the principal amount of the Debt at a rate which violates
any usury or interest rate maximum limitation, or which could subject any Lender to either civil or criminal liability as a result
of such rate being in excess of the maximum interest rate which the Mortgagor is permitted by law to contract or agree to pay (the
“Maximum Legal Rate”). If, by the terms of any Loan Document, the Mortgagor is at any time required or obligated
to pay interest on the principal amount of the Debt at a rate in excess of such Maximum Legal Rate, then the rate of interest under
the Loan Agreement shall be deemed to be immediately reduced to such Maximum Legal Rate and the interest payable shall be computed
at such Maximum Legal Rate and all prior interest payments in excess of such maximum rate shall be applied and shall be deemed
to have been payments in reduction of the principal amount of the Debt.

 

Section 4.4           
No Verbal Modification. This Mortgage may only be modified, amended or changed by an agreement in writing signed
by the Mortgagor and the Mortgagee. This Mortgage may only be released, discharged or satisfied of record by an agreement in writing
signed by the Mortgagee. No waiver of any term, covenant or provision of this Mortgage shall be effective unless given, for value,
in writing by the Mortgagee and if so given by the Mortgagee shall only be effective in the specific instance in which given. The
Mortgagor acknowledges that the Loan Documents set forth the entire agreement and understanding of the Mortgagor and the Mortgagee
with respect to the Loan and that no oral or other agreement, understanding, representation or warranty exists with respect to
the Loans other than the agreements, understandings, representations, and warranties set forth in the Loan Documents.

 

    	20

    	 

    

  

Section 4.5           
Severability. If any provision of this Mortgage is held to be illegal, invalid, or unenforceable under present
or future laws effective during the term of this Mortgage, then such provision shall be fully severable, and this Mortgage shall
be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a part of this Mortgage, and
the remaining provisions of this Mortgage shall remain in full force and effect and shall not be affected by the illegal, invalid
or unenforceable provision or by its severance from this Mortgage.

 

Section 4.6           
Debtor-Creditor Status. The relationship of the Mortgagee and the Lenders to the Mortgagor under this Mortgage
is solely that of lender and borrower, and mortgagee and mortgagor. Nothing contained in the Loan Documents is intended to create,
or shall in any event or under any circumstance be construed as creating, a partnership, joint venture, tenancy-in-common, joint
tenancy or other relationship of any nature whatsoever between the Mortgagee or any Lender and the Mortgagor other than as lender
and borrower and mortgagee and mortgagor.

 

Section 4.7           
No Presumption Against Drafter.The Mortgagor agrees that, when interpreting this Mortgage or any other document
delivered by the Mortgagor to the Mortgagee, there shall be no presumption against the Mortgagee or any Lender on account of the
fact that the Mortgagee is the party causing the drafting of this Mortgage.

 

Section 4.8           
Joint and Several. If the Mortgagor consists of more than one person, the obligations and liabilities of each
such person under this Mortgage shall be joint and several.

 

Section 4.9           
Time Is of the Essence. Time is of the essence under this Mortgage and in the performance of every term, covenant
and obligation contained herein.

 

Section 4.10       
Headings Have No Legal Effect. The headings and captions of this Mortgage are for convenience of reference only,
and have no legal effect, and are not to be construed as defining or limiting, in any way, the scope or intent of the provisions
of this Mortgage.

 

Section 4.11       
Counterparts. This Mortgage may be executed in any number of duplicate counterparts. If there is more than one
Mortgagor, then each such counterpart need not be signed by each signatory. Each such duplicate counterpart which has been signed
by at least one signatory, when combined with other counterparts which have been signed by the other signatories, shall be deemed
an original.

 

Section 4.12       
Intentionally Omitted.

 

Section 4.13       
Intentionally Omitted.

 

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Section 4.14       
No Action or Omission by Mortgagee Shall Be A Waiver. The failure of the Mortgagee to insist upon strict performance
of any term of this Mortgage shall not be deemed to be a waiver of any term of this Mortgage. No delay or omission by the Mortgagee
to exercise any right, power or remedy accruing under this Mortgage shall be construed to be a waiver of any default or acquiescence
therein. A waiver in one or more instances to exercise any right, power or remedy accruing under this Mortgage shall apply only
to the particular instance or instances, and at the particular time or times only, and no such waiver shall be deemed a continuing
waiver, but every term, covenant, provision or condition establishing such right, power or remedy shall survive and continue to
remain in full force and effect. The Mortgagor shall not be relieved of the Mortgagor’s obligation to pay the Debt, at the
time and in the manner provided for its payment in the Loan Documents, by reason of: (a) failure of the Mortgagee to comply
with any request of the Mortgagor to take any action to foreclose this Mortgage or otherwise enforce any of the provisions of the
Loan Documents, (b) the release, regardless of consideration, of the Property or any other security for the Debt, or (c) any
agreement or stipulation between the Mortgagee and any subsequent owner or owners of the Property or other person extending the
time of payment or otherwise modifying or supplementing the terms of any of the Loan Documents, without first having obtained the
consent of the Mortgagor, and, even if such consent is not obtained, the Mortgagor shall continue to be obligated to pay the Debt
at the time and in the manner provided in the Loan Agreement and this Mortgage, as so extended, modified and supplemented, unless
expressly released and discharged from such obligation by the Mortgagee in writing. Regardless of consideration, and without the
necessity for any notice to or consent by the holder of any subordinate lien, encumbrance, right, title or interest in or to the
Property, the Mortgagee may (i) release (1) any person at any time liable for the payment of the Debt or any portion thereof, or
(2) the Property, and (ii) extend the time of payment or otherwise modify the terms of any Loan Document, without, in each such
case, in any manner impairing or affecting this Mortgage or the lien or priority of this Mortgage, as so extended and modified,
as security for the Debt over any such subordinate lien, encumbrance, right, title or interest. The Mortgagee may resort for the
payment of the Debt to any other security held by the Mortgagee in such order and manner as the Mortgagee, in its discretion, may
elect. The Mortgagee may take action to recover the Debt, or any portion thereof, or to enforce any covenant of this Mortgage without
prejudice to the right of the Mortgagee thereafter to foreclose this Mortgage. The Mortgagee shall not be limited exclusively to
the rights and remedies stated in this Mortgage but shall be entitled to every additional right and remedy now or hereafter afforded
by law or equity. The rights of the Mortgagee under this Mortgage shall be separate, distinct and cumulative and none shall be
given effect to the exclusion of the others. No act of the Mortgagee shall be construed as an election to proceed under any one
provision in this Mortgage to the exclusion of any other provision.

 

Section 4.15       
Liability. In acting under this Agreement, neither Mortgagee, nor any Lender nor any of their respective officers,
directors, shareholders, members, managers, employees, or agents or contractors (collectively called the “Mortgagee Parties”)
shall be liable, in the case of any Mortgagee Party causing damage to the Mortgagor, for any error of judgment of such party, or
for any act done or step taken or omitted in good faith by such party, except that this sentence shall not protect any Mortgagee
Party with respect to any error, act, step or omission that is determined by a court of competent jurisdiction in a final and non-appealable
ruling to constitute the gross negligence or willful misconduct of such Mortgagee Party. Mortgagee Parties shall have no liability
or responsibility for taking any necessary steps to preserve rights against any third parties with respect to the Property. In
no event shall any Mortgagee Party be liable for any direct, consequential, or punitive damages on account of any default under
any Loan Document or any violation of applicable law or procedures.

 

    	22

    	 

    

  

Section 4.16       
Mortgagor’s Liability For Debt is Absolute and Unconditional. The Mortgagor acknowledges that the Mortgagor’s
obligation to pay the Debt in accordance with the provisions of the Loan Agreement , this Mortgage and the other Loan Documents
is and shall at all times continue to be absolute and unconditional in all respects, and shall at all times be valid and enforceable
irrespective of any other agreements or circumstances of any nature whatsoever which might otherwise constitute a defense to: (a)
any of the Loan Documents, (b) the obligation of the Mortgagor under the Loan Documents to pay the Debt, (c) the obligations of
any other person relating to the Loan Documents, or (d) the obligations of the Mortgagor, whether under the Loan Documents or otherwise,
with respect to the Loans. The Mortgagor absolutely, unconditionally and irrevocably waives any and all right to assert any setoff,
counterclaim or cross-claim of any nature whatsoever with respect to: (i) the obligation of the Mortgagor to pay the Debt in accordance
with the Loan Documents, or (ii) the obligations of any other person relating to the Loan Documents, or (iii) the obligations of
the Mortgagor, whether under the Loan Documents or otherwise, with respect to the Loan in any action or proceeding brought by the
Mortgagee or any Lender to collect the Debt, or any portion thereof, or to enforce, foreclose and realize upon the lien and security
interest created by any Loan Document, in whole or in part (provided, however, that the foregoing shall not be deemed
a waiver of the Mortgagor’s right to assert any compulsory counterclaim maintained in a court of the United States, or of
the State of New York if such counterclaim is compelled under local law or rule of procedure, nor shall the foregoing be deemed
a waiver of the Mortgagor’s right to assert any claim which would constitute a defense, setoff, counterclaim or crossclaim
of any nature whatsoever against the Mortgagee in any separate action or proceeding, provided that, the Mortgagor shall
not seek to consolidate any such separate action or proceeding with any action or proceeding by the Mortgagee).

 

Section
4.17       Governing Law; Submission to Jurisdiction. (A) THIS AGREEMENT
WAS NEGOTIATED IN THE STATE OF NEW YORK, AND MADE BY MORTGAGOR TO MORTGAGEE IN THE STATE OF NEW YORK, AND THE PROCEEDS OF THE LOANS
WERE OR WILL BE DISBURSED FROM THE STATE OF NEW YORK, WHICH STATE THE PARTIES AGREE HAS A SUBSTANTIAL RELATIONSHIP TO THE PARTIES
AND TO THE UNDERLYING TRANSACTIONS EMBODIED HEREBY, AND THE PARTIES HEREBY AGREE THAT, IN ALL RESPECTS, INCLUDING, WITHOUT LIMITING
THE GENERALITY OF THE FOREGOING, MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE OF THE LOAN AGREEMENT , THIS MORTGAGE AND THE
OTHER LOAN DOCUMENTS AND THE OBLIGATIONS ARISING HEREUNDER OR THEREUNDER SHALL BE GOVERNED BY, AND BE CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE (WITHOUT REGARD TO PRINCIPLES OF CONFLICT
OF LAWS) AND ANY APPLICABLE LAW OF THE UNITED STATES OF AMERICA. TO THE FULLEST EXTENT PERMITTED BY LAW, MORTGAGOR HEREBY UNCONDITIONALLY
AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THE LOAN AGREEMENT, THIS MORTGAGE OR
THE OTHER LOAN DOCUMENTS, AND THE LOAN AGREEMENT, THIS MORTGAGE AND THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY AND BE CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK PURSUANT TO SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

 

    	23

    	 

    

  

(B)EXCEPT AS PROVIDED
IN SECTION 7.5(a) OF THE LOAN AGREEMENT, ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST MORTGAGEE OR MORTGAGOR ARISING OUT OF OR
RELATING TO THE LOAN AGREEMENT, THIS MORTGAGE AND THE OTHER LOAN DOCUMENTS SHALL BE INSTITUTED IN ANY STATE COURT IN THE COUNTY
OF NEW YORK, NEW YORK OR THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, PURSUANT TO SECTION 5-1402 OF
THE NEW YORK GENERAL OBLIGATIONS LAW, AND MORTGAGOR WAIVES ANY OBJECTIONS WHICH IT MAY, AT MORTGAGOR’S OPTION, NOW OR HEREAFTER
HAVE BASED ON VENUE AND/OR FORUM NON CONVENIENS OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND MORTGAGOR HEREBY IRREVOCABLY SUBMITS
TO THE EXCLUSIVE JURISDICTION OF ANY SUCH COURT IN ANY SUIT, ACTION OR PROCEEDING. 

 

(C) THE MORTGAGOR
AGREES AND CONSENTS THAT, IN ADDITION TO ANY METHODS OF SERVICE OF PROCESS PROVIDED FOR UNDER APPLICABLE LAW, ALL SERVICE OF PROCESS
IN ANY SUCH SUIT, ACTION OR PROCEEDING REFERRED TO ABOVE MAY, AT MORTGAGEE’S OPTION, BE MADE BY CERTIFIED OR REGISTERED MAIL,
POSTAGE PREPAID, RETURN RECEIPT REQUESTED, DIRECTED TO MORTGAGOR AT THE ADDRESS INDICATED IN THIS MORTGAGE FOR SUCH PARTY.

 

Section 4.18                   
No Statutory Rights. THE MORTGAGOR SHALL NOT AND WILL NOT APPLY FOR OR AVAIL ITSELF OF ANY APPRAISEMENT, VALUATION,
STAY, EXTENSION OR EXEMPTION LAWS, OR ANY SO-CALLED “MORATORIUM LAWS,” NOW EXISTING OR HEREAFTER ENACTED, IN ORDER
TO PREVENT OR HINDER THE ENFORCEMENT OR FORECLOSURE OF THIS MORTGAGE, BUT THE MORTGAGOR HEREBY WAIVES THE BENEFIT OF SUCH LAWS
TO THE FULL EXTENT THAT THE MORTGAGOR MAY DO SO UNDER APPLICABLE LAW. THE MORTGAGOR, FOR ITSELF AND ALL WHO MAY CLAIM THROUGH OR
UNDER IT, WAIVES ANY AND ALL RIGHT TO HAVE THE PROPERTY MARSHALLED UPON ANY FORECLOSURE OF THE LIEN OF THIS MORTGAGE AND AGREES
THAT ANY COURT HAVING JURISDICTION TO FORECLOSE SUCH LIEN MAY ORDER THE PROPERTY SOLD AS AN ENTIRETY. THE MORTGAGOR HEREBY WAIVES
FOR ITSELF AND ALL WHO MAY CLAIM THROUGH OR UNDER IT, AND TO THE FULL EXTENT THE MORTGAGOR MAY DO SO UNDER APPLICABLE LAW, ANY
AND ALL RIGHTS OF REDEMPTION FROM SALE UNDER ANY ORDER OR DECREE OF FORECLOSURE OF THIS MORTGAGE OR GRANTED UNDER ANY STATUTE NOW
EXISTING OR HEREAFTER ENACTED.

 

    	24

    	 

    

 

Section 4.19                   
No Trial by Jury. THE MORTGAGOR HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, AND THE MORTGAGEE BY ITS ACCEPTANCE
OF THE LOAN AGREEMENT AND THIS MORTGAGE IRREVOCABLY AND UNCONDITIONALLY WAIVES, ANY AND ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION,
SUIT OR COUNTERCLAIM ARISING IN CONNECTION WITH, OUT OF OR OTHERWISE RELATING TO THE LOAN DOCUMENTS, OR THE LOAN, OR IN ANY WAY
RELATED TO THIS TRANSACTION OR OTHERWISE WITH RESPECT TO THE PROPERTY.

 

Section 4.20                   
Relief from Automatic Stay in a Bankruptcy Proceeding. MORTGAGOR knowingly,
voluntarily, intentionally and after consultation and advice of counsel agrees with Mortgagee that notwithstanding anything to
the contrary contained in this Mortgage or the other Loan Documents, in any case commenced under the Bankruptcy Code by or against
the Mortgagor (including without limitation the bankrupcy case), the following provisions shall be applicable to the extent permitted
under applicable law: (a) Mortgagee shall be entitled to the immediate termination of the automatic stay provisions of Section
362 of the Bankruptcy Code, as the same may be amended from time to time (and any other relevant provisions of the Bankruptcy Code),
and granted complete relief from the automatic stay and allowed to pursue any and all of its rights, remedies and recourses available
to Mortgagee under this Mortgage and the other Loan Documents and pursuant to any provisions of applicable law without requirement
that Mortgagee furnish to Mortgagor any notice or provide Mortgagor with any grace period. Mortgagee shall only be required to
submit an affidavit and proposed order to the bankruptcy court noticed for presentment on the Mortgagor and Mortgagor’s counsel,
annexing a copy of this Mortgage to such proposed order, with the affidavit solely for purposes of identifying the existing default
hereunder, and to advise the court of the Mortgagor’s consent to Mortgagee’s relief from the automatic stay, and (b)
Mortgagee shall be entitled as aforesaid to the lifting of the automatic stay without the necessity of an evidentiary hearing and
without the necessity or requirement of Mortgagee to establish or prove the value of the Mortgagor’s assets, the lack of
adequate protection of its interest in Mortgagor’s assets or the lack of equity therein. Mortgagee’s entitlement as
aforesaid to the lifting of the automatic stay hereunder by the appropriate bankruptcy court shall be deemed “for cause”
pursuant to Section 362(d)(1) of the Bankruptcy Code, as the same may be amended from time to time.

 

    	25

    	 

    

 

Section 4.21                   
Maximum Principal Amount; Additional Interest. (a) NOTWITHSTANDING ANY PROVISION SET FORTH HEREIN TO THE
CONTRARY, THE MAXIMUM AMOUNT OF PRINCIPAL INDEBTEDNESS SECURED BY THIS MORTGAGE AT EXECUTION, OR WHICH UNDER ANY CONTINGENCY MAY
BECOME SECURED HEREBY AT ANY TIME HEREAFTER, IS FORTY MILLION DOLLARS ($40,000,000.00) LAWFUL MONEY OF THE UNITED STATES
OF AMERICA, PLUS ALL INTEREST PAYABLE UNDER THE LOAN AGREEMENT AND ALL AMOUNTS EXPENDED BY MORTGAGEE AFTER DEFAULT BY MORTGAGOR
(A) FOR THE PAYMENT OF TAXES, CHARGES OR ASSESSMENTS WHICH MAY BE IMPOSED BY LEGAL REQUIREMENTS UPON THE PROPERTY, (B) TO MAINTAIN
THE INSURANCE REQUIRED UNDER THIS MORTGAGE, (C) FOR ANY EXPENSES INCURRED IN MAINTAINING THE PROPERTY AND UPHOLDING THE LIEN OF
THIS MORTGAGE, INCLUDING, BUT NOT LIMITED TO, THE EXPENSE OF ANY LITIGATION TO PROSECUTE OR DEFEND THE RIGHTS AND LIEN CREATED
BY THIS MORTGAGE, AND (D) FOR ANY AMOUNT, COST OR CHARGE TO WHICH MORTGAGEE BECOMES SUBROGATED, UPON PAYMENT, WHETHER UNDER RECOGNIZED
PRINCIPLES OF LAW OR EQUITY, OR UNDER EXPRESS STATUTORY AUTHORITY, TOGETHER WITH INTEREST ON ALL OF THE FOREGOING AMOUNTS AT THE
DEFAULT RATE.

 

(b)                    
The Mortgagor agrees that it shall be liable to the Mortgagee for the benefit of the Lenders for all Additional Interest
with respect to any Interest Rate Contract, and that the Additional Interest is secured by the lien of this Mortgage. The Additional
Interest is deemed to constitute interest and not principal under the Loans and any reference to “principal” in this
Mortgage shall not be deemed to apply to Additional Interest. The Additional Interest shall be immediately due and payable upon
demand by the Mortgagee.

 

Section 4.22                   
New York Lien Law. Pursuant to Section 13 of the Lien Law of New York, Mortgagor shall receive the advances secured
hereby and shall hold the right to receive such advances as a trust fund to be applied first for the purpose of paying the “cost
of improvement” and Mortgagor shall apply such advances first to the payment of the “cost of improvement” on
the Property before using any part of the total of the same for any other purpose. For purposes of this section, “cost of
improvement” has the meaning set forth in Subdivision 5 of Section 2 of the Lien Law of New York, whether or not the Land
is located in that state.

 

Section 4.23                   
Type of Property. This mortgage does not cover real property principally improved or to be improved by one or
more structures containing in the aggregate not more than six residential dwelling units, each having their own separate cooking
facilities.

 

Section 4.24                   
Intentionally Omitted.

 

Section 4.25                   
Satisfaction of Debt. Upon payment in full of the Debt, Mortgagee shall discharge this Mortgage or, upon Mortgagor’s
request, assign it as provided in the Loan Agreement.

 

[Remainder of Page Intentionally Left
Blank]

 

 

 

 

 

 

 

 

    	26

    	 

    

  

The
Mortgagor acknowledges that it has received a true copy of this Mortgage.

 

IN WITNESS WHEREOF, this Mortgage
has been executed by the Mortgagor as of the day and year first above written.

 

	 	 	TPHGREENWICH OWNER LLC,
	 	 	a Delaware limited liability company
	 	 	 	 
	 	 	 	 
	 	By:	/s/ RICHARD PYONTEK	 
	 	 	Name: Richard Pyontek	 
	 	 	Title:   Treasurer and Secretary	 

 

STATE OF NEW YORK     )

SS:

COUNTY OF NEW YORK)

 

On the 5th day of February,
2015 before me, the undersigned, a notary public in and for said state, personally appeared RICHARD PYONTEK personally known to
me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument
and acknowledged to me that he executed the same in his capacity, and that by his on the instrument, the individual, or the person
upon behalf of which the individual acted, executed the instrument.

 

 

/s/ STEPHANIE TUMSUDEN

Notary Public

 

STEPHANIE LYNN TUMSUDEN

NOTARY PUBLIC – STATE OF NEW YORK

No. 01TU6252438

Qualified in Suffolk County

My Commission Expires December 5, 2015

 

 

[Signature page to Mortgage and Security
Agreement,

Assignment of Leases and Rents and Fixtures
Filing]

 

    	27

    	 

    

 

Exhibit
A

 

Description of Land

 

 

PARCEL I: 

 

ALL that certain plot, piece or parcel of land situate, lying
and being in the Borough of Manhattan, County, City and State of New York, being bounded and described as follows:

 

BEGINNING at a point on the easterly side of Greenwich Street,
distant seventy-four (74) feet, eight (8) inches northerly from the corner formed by the intersection of the easterly side of Greenwich
Street with the northerly side of former Edgar Street;

 

RUNNING THENCE northerly along the said easterly side of Greenwich
Street forty (40) feet, six (6) inches to the center line of a party wall between these premises and premises now or late of Henry
Nayler;

 

THENCE easterly along the same, seventy-five (75) feet, eight
(8) inches to the westerly side of Trinity Place, (formerly Church Street), as extended;

 

THENCE southerly along the same, thirty-nine feet (39), two
(2) inches, to land now or late of S.J. Callender;

 

THENCE westerly along the same through the center of a party
wall seventy (70) feet, six (6) inches to the easterly side of Greenwich Street at the point or place of BEGINNING; be the said
several distances and dimensions more or less.

 

PARCEL II: 

 

ALL that certain plot, piece or parcel of land situate, lying
and being in the Borough of Manhattan, County, City and State of New York, being bounded and described as follows:

 

BEGINNING at a point on the westerly side of Trinity Place,
distant 111 feet 2-1/2 inches southerly from the corner formed by the intersection of the southerly side of Rector Street with
the westerly side of Trinity Place;

 

RUNNING THENCE southerly along the westerly side of Trinity
Place 133 feet, 11 inches;

 

THENCE westerly along a line which forms an interior angle of
90 degrees 30 minutes 30 seconds with the westerly side of Trinity Place, 75 feet 6-3/4 inches to the easterly side of Greenwich
Street;

 

THENCE northerly along the easterly side of Greenwich Street,
134 feet 10-3/4 inches;

 

    	28

    	 

    

  

THENCE easterly along a line which forms an exterior angle of
98 degrees 21 minutes 30 seconds with the easterly side of Greenwich Street, 97 feet 1-1/4 inches to the westerly side of Trinity
Place the point or place of BEGINNING; be the said several distances and dimensions more or less.

 

PERIMETER DESCRIPTION:

 

Parcel I and Parcel II taken together being more particularly
described as follows:

 

BEGINNING at a point on the westerly side of Trinity Place,
distant 111 feet 2-1/2 inches southerly from the corner formed by the intersection of the southerly side of Rector Street with
the westerly side of Trinity Place;

 

RUNNING THENCE southerly along the westerly side of Trinity
Place 173 feet, 3 inches to the corner formed by the intersection of the of the westerly side of Trinity Place with northerly side
of Edgar Street;

 

THENCE westerly along the northerly side of Edgar Street 70
feet 9-3/8 inches to the corner formed by the northerly side of Edgar Street with the easterly side of Greenwich Street;

 

THENCE northerly along the easterly side of Greenwich Street,
175 feet 7-3/4 inches to a point;

 

THENCE easterly 97 feet 1-1/4 inches to the westerly side of
Trinity Place the point or place of BEGINNING.

 

    	29Exhibit 10.3

 

WMLM 

Execution Copy

 

CARVEOUT GUARANTY

 

THIS CARVEOUT GUARANTY
(this “Guaranty”) is made as of February 9, 2015, by Trinity place
holdings inc., a Delaware corporation having an address at 717 Fifth Avenue, New York, New York 10022 (the “Guarantor”)
for the benefit of STERLING NATIONAL BANK, having a place of business at 400 Rella Boulevard, Montebello, New York 10901,
in its capacity as Administrative Agent (in such capacity, the “Administrative Agent”) for the ratable benefit
of the Lenders specified in the Term Loan Agreement described below.

 

W I T N E S S E T H:

 

WHEREAS,
concurrently herewith TPHGREENWICH OWNER LLC, a Delaware limited liability company (the “Borrower”), the Lenders
named therein and the Administrative Agent are entering into a Term Loan Agreement of even date herewith (as it may be amended,
restated, supplemented or modified from time to time, herein called the “Loan Agreement”), providing, among
other things, for first mortgage loans to be made by the Lenders to the Borrower in the initial aggregate principal amount of $40,000,000,
which amount may be increased to $50,000,000
on the terms and subject to the conditions set forth in the Loan Agreement (such
loans will be referred to herein collectively as the “Loans” and individually as a “Loan”)
to be evidenced by promissory notes of even date herewith (each, a “Note” and, collectively, the “Notes”),
and secured by, among other things, (i) a mortgage of even date herewith (the “Mortgage”), encumbering certain
land and improvements located at 38-42 Trinity Place and 67 Greenwich Street, New York, New York 10006 (collectively the “Property”),
as more fully described in the Mortgage, and (ii) various other documents executed in connection with the Loan Agreement, the Notes
and the Mortgage (the Loan Agreement, the Notes, the Mortgage, and any other instruments, documents or agreements executed in connection
therewith, as the same may be amended, restated, supplemented or modified from time to time, are hereinafter collectively referred
to as the “Loan Documents” and each as a “Loan Document”); and

 

WHEREAS, Guarantor
is the direct, legal and beneficial owner of 100% of the equity interests in Borrower, and Guarantor will directly or indirectly
and substantially benefit from the Lenders making the Loans to Borrower.

 

NOW, THEREFORE, as
an inducement to the Lenders to make the Loans to Borrower and to the Administrative Agent to act as such under the Loan Agreement,
and for other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the parties
do hereby agree as follows:

 

ARTICLE I

DEFINITIONS

 

1.1               
Definitions. All capitalized terms that are defined in the Loan Agreement and are not otherwise defined herein
shall have the respective meanings assigned to them in the Loan Agreement and, in addition, the following terms shall have the
following meanings:

 

(a)                
“Carveout Obligations” means all actual losses incurred by Administrative Agent or any Lender
(such losses to include, without limitation, the failure to recover any or all Loan Obligations but excluding punitive damages)
resulting from any of the following:

 

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

 

(ii)                
the misapplication in violation of the Loan Documents by Borrower or any of its Affiliates of any (1) insurance proceeds
paid to Borrower or any of its affiliates by reason of any loss, damage or destruction to the Property, (2) awards or other amounts
received by Borrower or any of its Affiliates in connection with the condemnation of all or a portion of the Property, (3) any
Rents following an Event of Default, or (4) any funds that are to be disbursed into or from any accounts or lockbox established
under the Loan Documents;

 

    	 

    	 

    

  

(iii)               
use of any Loan proceeds in violation of Section 2.6 of the Loan Agreement;

 

(iv)              
physical waste of any portion of the Property resulting from intentional or fraudulent acts or omissions by Borrower or
any of its Affiliates (other than physical waste resulting from insufficient cash flow from the Property);

 

(v)                
intentional failure by Borrower or any of its Affiliates to comply with any legal requirements of any Governmental Authority
(other than a failure resulting from the non-payment of money) resulting in a forfeiture by Borrower of the Property, or any material
portion thereof; or

 

(vi)              
any action or failure to act on the part of Borrower that causes it to cease to be a single purpose entity in accordance
with Section 6.3 of the Loan Agreement; or

 

(vii)             
the commencement by the Borrower or Holdings (as debtor) of any voluntary proceeding under the Bankruptcy Code or any other
insolvency, bankruptcy, arrangement, reorganization, liquidation, dissolution or similar law of the United States or any other
jurisdiction.

 

(b)                
“Guaranteed Obligations” means the Maintenance Obligations and the Carveout Obligations.

 

(c)                
“Guarantor Claims” shall have the meaning set forth in Section 5.1 of this Guaranty.

 

(d)                
“herein,” “hereof,” “hereunder,” and “herewith”
shall be deemed to refer to this entire Guaranty and not any particular provision of this Guaranty.

 

(e)                
“Including” or “including” means “including, without limitation.”

 

(f)                 
“Leases” means all leases, licenses, concessions, occupancy agreements, and other agreements affecting
the use or occupancy of the Property or any portion thereof, now or hereafter entered into and all guarantees of any of the foregoing.

 

(g)                
“Loan Obligations” means the Obligations, as such term is defined in the Loan Agreement.

 

(h)                
“Maintenance Obligations” means the obligation by Borrower to pay the following in full when due:

 

(i)                  
all costs necessary to maintain the Property in good condition and repair to the extent required in order to comply with
all applicable Laws;

 

(ii)                
all insurance premiums under policies maintained by Borrower and covering the Property (except to the extent that Borrower
has deposited funds therefor with Administrative Agent); and

 

(iii)               
all real estate taxes payable with respect to the Property (except to the extent that Borrower has deposited funds therefor
with Administrative Agent).

 

(i)                  
“Rents” means all rents, issues and profits of the Property or any part thereof.

 

    	 

    	 

    

 

ARTICLE II

NATURE AND SCOPE OF GUARANTY

 

2.1               
Guaranty of Certain Obligations. Subject to the terms hereof, effective immediately on the date hereof (and without
any notice or further act or condition of any kind), Guarantor hereby irrevocably and unconditionally agrees that it shall be liable
to the Administrative Agent for the ratable benefit of the Lenders (and their respective successors and permitted assigns) for
the payment in full when due of all Guaranteed Obligations. Guarantor hereby irrevocably and unconditionally covenants and agrees
that it is liable for the Guaranteed Obligations as a primary obligor and not merely as a surety.

 

2.2               
Nature of Guaranty. This Guaranty is an irrevocable, absolute, continuing guaranty of payment, and is not a guaranty
of collection. This Guaranty may not be revoked by Guarantor, and shall continue to be effective with respect to any Guaranteed
Obligations arising or created after any attempted revocation by Guarantor and after Guarantor’s liquidation and dissolution
(and in any such event, this Guaranty shall be binding upon Guarantor’s successors and assigns). The fact that, at any time,
or from time to time, the Loan Obligations or the Guaranteed Obligations may be increased or reduced, shall not release or discharge
the obligation of Guarantor to the Administrative Agent for the ratable benefit of Lenders with respect to the Guaranteed Obligations.
This Guaranty may be enforced by the Administrative Agent, and shall not be discharged by the assignment or negotiation of all
or part of any Note. This Guaranty shall survive any reinstatement of the Loan Obligations or any portion thereof.

 

2.3               
Guaranteed Obligations Not Reduced by Offset. The Guaranteed Obligations, and the liabilities and obligations
of Guarantor to Administrative Agent and Lenders hereunder, shall not be reduced, discharged or released because, or by reason,
of any existing or future offset, claim or defense of Borrower or any other Person against Administrative Agent or any Lender or
against payment of any Loan Obligations or Guaranteed Obligations, whether such offset, claim or defense arises in connection with
the Loan Obligations or the Guaranteed Obligations (or the transactions creating any Loan Obligations or Guaranteed Obligations)
or otherwise (other than, in any such case, the defense of payment of the Guaranteed Obligation in question).

 

2.4               
Payment by Guarantor. If all or any part of the Guaranteed Obligations shall not be punctually paid when due,
whether at demand, maturity, acceleration or otherwise, Guarantor shall, upon demand by Administrative Agent and without presentment,
protest, notice of protest, notice of non-payment, notice of intention to accelerate the maturity, notice of acceleration of the
maturity or any other notice whatsoever, pay in lawful money of the United States of America, the amount then due on the Guaranteed
Obligations, to Administrative Agent’s address as set forth herein. Such demand(s) may be made at any time coincident with
or after the time for payment of all or part of the Guaranteed Obligations pursuant to the terms of the Loan Documents. Such demand
shall be deemed made, given and received in accordance with the notice provisions hereof.

 

2.5               
No Duty to Accelerate or Pursue Others. It shall not be necessary for Administrative Agent (and Guarantor hereby
waives any rights which Guarantor may have to require Administrative Agent), in order to enforce the obligations of Guarantor hereunder,
first to (a) accelerate the Loan Obligations or the Guaranteed Obligations or take any other action or exercise any remedy available
to it under any Loan Document or by operation of Law, (b) provide any notice to or make any demand upon any Person other than the
Guarantor, (c) institute suit or exhaust its remedies against Borrower or others liable on the Loan Obligations or the Guaranteed
Obligations or any other Person, (d) enforce Administrative Agent’s or Lenders’ rights against any collateral which
shall ever have been given to secure the Loan Obligations or the Guaranteed Obligations, (e) enforce Administrative Agent’s
or Lenders’ rights against any other guarantors of the Loan Obligations or the Guaranteed Obligations, (f) join Borrower
or any other Person liable on the Loan Obligations or the Guaranteed Obligations in any action seeking to enforce this Guaranty,
(g) exhaust any remedies available to Administrative Agent or any Lender against any collateral which shall ever have been given
to secure the Loan Obligations or the Guaranteed Obligations, or (h) resort to any other means of obtaining payment of the Loan
Obligations or the Guaranteed Obligations. Neither Administrative Agent nor any Lender shall be required to mitigate damages or
take any other action to reduce, collect or enforce the Loan Obligations or the Guaranteed Obligations.

 

2.6               
Waivers. Guarantor acknowledges having reviewed the provisions of the Loan Documents, and hereby waives
notice of (i) any loans or advances made by any Lender to Borrower, (ii) acceptance of this Guaranty, (iii) any amendment, extension,
increase, waiver, consent or other modification of the Loan Agreement, Mortgage, or any other Loan Documents, (iv) the execution
and delivery by Borrower, Administrative Agent or any Lender of any other loan or credit agreement or of Borrower’s execution
and delivery of any promissory notes or other documents arising under the Loan Documents or in connection with the Loan Obligations
or the Guaranteed Obligations, (v) the occurrence of any Event of Default, (vi) any Lender’s transfer or disposition of its
share of the Loan Obligations or the Guaranteed Obligations, or any part thereof, (vii) sale or foreclosure (or posting or advertising
for sale or foreclosure) of any collateral for the Loan Obligations or the Guaranteed Obligations, (viii) protest, proof of nonpayment
or default by Borrower, or (ix) except to the extent expressly required by the terms hereof or the Loan Agreement, all demands
and notices of every kind in connection with this Guaranty or the Loan Documents.

 

    	 

    	 

    

  

2.7               
Payment of Expenses. In the event that Guarantor should breach or fail to timely perform any provisions
of this Guaranty, Guarantor shall, within 5 days following demand by Administrative Agent, pay Administrative Agent all out of
pocket costs and expenses (including court costs and reasonable attorneys’ fees and disbursements) incurred by Administrative
Agent or any Lender in the enforcement hereof or the preservation of Administrative Agent’s or Lenders’ rights hereunder.
 All costs and expenses will accrue interest at the highest default rate in any instrument evidencing the Loan Obligations
until payment is actually received by the Administrative Agent. Subject to Section 7.14 hereof, the covenant contained in this
Section shall survive the payment and performance of the Guaranteed Obligations.

 

2.8               
Effect of Bankruptcy. In the event that, pursuant to any insolvency, bankruptcy, reorganization, receivership
or other debtor relief law, or any judgment, order or decision thereunder, Administrative Agent or any Lender must rescind or restore
any payment or any part thereof received by Administrative Agent or such Lender in satisfaction of the Loan Obligations or the
Guaranteed Obligations, as set forth herein, then any prior release or discharge from the terms of this Guaranty, or credit, given
to Guarantor by Administrative Agent or any Lender shall be without effect and this Guaranty shall be restored and remain in full
force and effect to the extent of such payment so restored. It is the intention of Borrower and Guarantor that, subject to Section
7.14 hereof, the Guarantor’s obligations hereunder shall not be discharged except by Borrower’s indefeasible payment
in full of the Guaranteed Obligations, that in the event of any such rescission or restoration by Administrative Agent or any Lender
with respect to any payment as provided above in this paragraph, then to the extent of such rescission or restoration the Guaranteed
Obligations shall also be restored and shall remain in effect.

 

2.9               
Waiver of Subrogation, Reimbursement and Contribution. Notwithstanding anything to the contrary contained
in this Guaranty, Guarantor hereby unconditionally and irrevocably defers, until the indefeasible payment in full of the Loan Obligations,
all rights it may now or hereafter have under any agreement, at law or in equity (including, without limitation, any law subrogating
Guarantor to the rights of Administrative Agent or any Lender), to assert any claim against or seek contribution, indemnification
or any other form of reimbursement from Borrower, or any other Person liable for payment of any or all of the Guaranteed Obligations,
for any payment made by Guarantor under or in connection with this Guaranty.

 

2.10           
Borrower. The term “Borrower” as used herein shall include any new or successor corporation,
association, partnership (general or limited), limited liability company, joint venture, trust or other individual or organization
formed as a result of any merger, reorganization, sale or transfer of Borrower or any interest in Borrower.

 

2.11           
Other Guaranties. This Guaranty is separate, distinct and in addition to any liability or obligations
that Borrower or any other guarantor may have under any other guaranty or indemnity executed by Borrower or such other guarantor
in connection with the Loan Obligations.

 

ARTICLE III

EVENTS AND CIRCUMSTANCES NOT REDUCING

OR DISCHARGING GUARANTOR’S OBLIGATIONS

 

Guarantor hereby (i) consents and agrees
to each of the following, and agrees that Guarantor’s obligations under this Guaranty shall not be released, diminished,
impaired, reduced or adversely affected by any of the following, except to the extent expressly required by the terms hereof, and
(ii) waives any common law, equitable, statutory or other rights (including without limitation, except to the extent required by
the terms hereof, rights to notice) which Guarantor might otherwise have as a result of or in connection with any of the following:

 

    	 

    	 

    

  

3.1               
Modifications. Subject to Section 7.5 hereof, any amendment, renewal, extension, increase, modification,
alteration or rearrangement of all or any part of the Loan Obligations, the Loan Agreement, the Mortgage, or any other Loan Documents
or any other document, instrument, contract or understanding between Borrower and Administrative Agent or any Lender or any other
Person pertaining to the Loan Obligations or the Guaranteed Obligations, or any failure of Administrative Agent to notify Guarantor
of any such action.

 

3.2               
Adjustment. Any adjustment, indulgence, forbearance or compromise that might be granted or given by Administrative
Agent or any Lender to Borrower.

 

3.3               
Condition of Borrower or Guarantor. The insolvency, bankruptcy, arrangement, adjustment, composition,
liquidation, disability, dissolution or lack of power of Borrower, Guarantor or any other Person at any time liable for the payment
of all or part of the Loan Obligations or the Guaranteed Obligations; or any death or dissolution of Borrower or Guarantor or any
sale, lease or transfer of any or all of the assets of Borrower or Guarantor or any changes in the shareholders, partners or members
of Borrower or Guarantor; or any reorganization of Borrower or Guarantor.

 

3.4               
Invalidity of Guaranteed Obligations. The invalidity, illegality or unenforceability against Borrower
or any other Person at any time liable for the payment of all or part of the Loan Obligations or the Guaranteed Obligations or
any document or agreement executed in connection with the Loan Obligations or the Guaranteed Obligations for any reason whatsoever,
including, without limitation, the fact that (a) the Loan Obligations or the Guaranteed Obligations or any part thereof exceeds
the amount permitted by law, (b) the act of creating the Loan Obligations or the Guaranteed Obligations or any part thereof is
ultra vires, (c) the officers or representatives executing the Loan Agreement, the Mortgage, or any other Loan Documents
or otherwise creating the Loan Obligations or the Guaranteed Obligations acted in excess of their authority, (d) the Loan Obligations
or the Guaranteed Obligations violate applicable usury laws, (e) Borrower or any other Person at any time liable for the payment
of all or part of the Loan Obligations or the Guaranteed Obligations has valid defenses (other than payment), claims or offsets
(whether at law, in equity or by agreement) which render the Loan Obligations or the Guaranteed Obligations wholly or partially
unenforceable against or uncollectible from Borrower or any other Person at any time liable for the payment of all or part of the
Loan Obligations or the Guaranteed Obligations, (f) the creation, performance or repayment of the Loan Obligations or the Guaranteed
Obligations (or the execution, delivery and performance of any document or instrument representing part of the Loan Obligations
or the Guaranteed Obligations or executed in connection with the Loan Obligations or the Guaranteed Obligations or given to secure
the repayment of the Loan Obligations or the Guaranteed Obligations) is illegal, uncollectible or unenforceable, or (g) the Loan
Agreement, the Mortgage or any of the other Loan Documents have been forged or otherwise are irregular or not genuine or authentic,
it being agreed that Guarantor shall remain liable hereon regardless of whether Borrower or any other Person be found not liable
on the Loan Obligations or the Guaranteed Obligations or any part thereof for any reason (other than by reason of payment in full
thereof).

 

3.5               
Release of Obligors. Any full or partial release of the liability of Borrower on the Loan Obligations
or the Guaranteed Obligations or any part thereof, or of any co-guarantors, or any other Person now or hereafter liable, whether
directly or indirectly, jointly, severally, or jointly and severally, to pay, perform, guarantee or assure the payment of the Loan
Obligations or the Guaranteed Obligations, or any part thereof, it being recognized, acknowledged and agreed by Guarantor that
Guarantor may be required to pay the Guaranteed Obligations in full without assistance or support of any other Person, and Guarantor
has not been induced to enter into this Guaranty on the basis of a contemplation, belief, understanding or agreement that any other
Person will be liable to pay or perform the Loan Obligations or the Guaranteed Obligations, or that Administrative Agent or any
Lender will look to any other Person to pay or perform any of the Loan Obligations or the Guaranteed Obligations.

 

3.6               
Other Collateral. The taking or accepting of any other security, collateral or guaranty, or other assurance
of payment, for all or any part of the Loan Obligations or the Guaranteed Obligations.

 

3.7               
Release of Collateral. Any release, surrender, exchange, subordination, deterioration, waste, loss or
impairment (including without limitation negligent, willful, unreasonable or unjustifiable impairment) by any Person of any collateral,
property or security at any time existing in connection with, or assuring or securing payment of, all or any part of the Loan Obligations
or the Guaranteed Obligations.

 

    	 

    	 

    

  

3.8               
Care and Diligence. The failure of Administrative Agent, any Lender or any other Person to exercise diligence
or reasonable care in the preservation, protection, enforcement, sale or other handling or treatment of all or any part of any
collateral, property or security, including but not limited to any neglect, delay, omission, failure or refusal of Administrative
Agent or any Lender (a) to take or prosecute any action for the collection of any of the Loan Obligations or the Guaranteed Obligations,
(b) to foreclose, or initiate any action to foreclose, or, once commenced, prosecute to completion any action to foreclose upon
any security therefor, or (c) to take or prosecute any action in connection with any instrument or agreement evidencing or securing
all or any part of the Loan Obligations or the Guaranteed Obligations.

 

3.9               
Unenforceability. The fact that any collateral, security, security interest or lien contemplated or intended
to be given, created or granted as security for the repayment of the Loan Obligations or the Guaranteed Obligations, or any part
thereof, shall not be properly perfected or created, or shall prove to be unenforceable or subordinate to any other security interest
or lien, it being recognized and agreed, as between Administrative Agent, Lenders and Guarantor, that Guarantor is not entering
into this Guaranty in reliance on, or in contemplation of the benefits of, the validity, enforceability, collectibility or value
of any of the collateral for the Loan Obligations or the Guaranteed Obligations.

 

3.10           
Offset. Any existing or future right of offset, claim or defense of Borrower against Administrative Agent
or any Lender, or any other Person, or against payment of the Loan Obligations or the Guaranteed Obligations, whether such right
of offset, claim or defense arises in connection with the Loan Obligations or the Guaranteed Obligations (other than the indefeasible
payment in full of the Guaranteed Obligations) or the transactions creating the Loan Obligations and the Guaranteed Obligations.

 

3.11           
Merger. The reorganization, merger or consolidation of Borrower into or with any other Person.

 

3.12           
Preference. Any payment by Borrower to Administrative Agent or any Lender that is returned, recovered
or otherwise paid, in whole or in part, in settlement of a suit, claim or other demand seeking avoidance and recovery of such payment
as a preference or fraudulent conveyance under bankruptcy laws or applicable state law, or if for any reason Administrative Agent
or any Lender is required to refund such payment or pay such amount to Borrower or any other Person.

 

3.13           
Other Actions Taken or Omitted. Any other action taken or omitted to be taken with respect to the Loan
Documents, the Loan Obligations, the Guaranteed Obligations, or the security and collateral therefor, whether or not such action
or omission prejudices Guarantor or increases the likelihood that Guarantor will be required to pay the Guaranteed Obligations
pursuant to the terms hereof; and it is the unambiguous and unequivocal intention of Guarantor that Guarantor shall be obligated
to pay the Guaranteed Obligations when due, notwithstanding any occurrence, circumstance, event, action, or omission whatsoever,
whether contemplated or uncontemplated, and whether or not otherwise or particularly described herein, which obligation shall be
deemed satisfied only upon the indefeasible payment in full of the Guaranteed Obligations.

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

 

To induce Administrative Agent and Lenders
to enter into the Loan Agreement, the Mortgage and the other Loan Documents, and extend and maintain credit to Borrower, Guarantor
represents and warrants as of the date hereof to Administrative Agent for the benefit of the Lenders as follows:

 

4.1               
Benefit. Guarantor is an Affiliate of Borrower, and is the direct legal and beneficial owner of 100% of
the equity interests in Borrower, and has received, or will receive, direct or indirect and substantial benefit from the Loan.

 

4.2               
Familiarity and Reliance. Guarantor is familiar with, and has independently reviewed books and records
regarding, the financial condition of Borrower, and is familiar with the value of any and all collateral intended to be created
as security for the payment of the Loan Obligations and the Guaranteed Obligations; however, as between Administrative Agent, Lenders
and Guarantor, Guarantor is not relying on such information, or the financial condition of Borrower, the collateral or any other
condition, as an inducement to enter into this Guaranty.

 

    	 

    	 

    

  

4.3               
No Representation by Administrative Agent or Lenders. Neither Administrative Agent nor any Lender, nor
any other Person on behalf of Administrative Agent or any Lender, has made any representation, warranty or statement to Guarantor
in order to induce Guarantor to execute this Guaranty.

 

4.4               
Guarantor’s Financial Condition. As of the date hereof, and after giving effect to this Guaranty
and the contingent obligation evidenced hereby, Guarantor is solvent and has assets which, fairly valued, exceed its obligations,
liabilities (including contingent liabilities fairly estimated) and debts, and has property and assets sufficient to satisfy and
repay its obligations and liabilities, as and when the same become due.

 

4.5               
Legality; Due Authorization; Enforceability. The execution, delivery and performance by Guarantor of this
Guaranty, and the consummation of the transactions contemplated hereunder, do not and will not contravene or conflict with any
law, statute or regulation whatsoever to which Guarantor is subject, or constitute a default under or result in the breach of,
any indenture, mortgage, charge, lien, or any contract, agreement or other instrument to which Guarantor is a party or which may
be applicable to Guarantor. This Guaranty is a legal and binding obligation of Guarantor and is enforceable in accordance with
its terms, except as limited by bankruptcy, insolvency or other laws of general application relating to the enforcement of creditors’
rights and subject, as to enforceability, to general principals of equity regardless of whether enforcement is sought in a proceeding
in equity or at law.

 

4.6               
Litigation. There are no actions, suits or proceedings at law or in equity by or before any Governmental
Authority or other agency now pending or, to Guarantor’s knowledge, threatened, against or affecting Guarantor which would
reasonably be expected to materially adversely affect the ability of Guarantor to perform its obligations under this Guaranty.

 

4.7               
Survival. All representations and warranties made by Guarantor herein shall survive the execution hereof.

 

ARTICLE V

SUBORDINATION OF CERTAIN INDEBTEDNESS

 

5.1               
Subordination of All Guarantor Claims. As used herein, the term “Guarantor Claims”
shall mean all debts and liabilities of Borrower to Guarantor, whether such debts and liabilities now exist or are hereafter
incurred or arise, or whether the obligations of Borrower thereon be direct, contingent, primary, secondary, several, joint and
several, or otherwise, and irrespective of whether such debts or liabilities be evidenced by note, contract, open account, or otherwise,
and irrespective of any Person in whose favor such debts or liabilities may, at their inception, have been, or may hereafter be,
created, or the manner in which they have been or may hereafter be acquired by Guarantor. The Guarantor Claims shall include, without
limitation, all rights and claims of Guarantor against Borrower (arising as a result of subrogation or otherwise) as a result of
Guarantor’s payment of all or a portion of the Guaranteed Obligations. After the occurrence and during the existence of an
Event of Default, or the occurrence of an event which would, with the giving of notice or the passage of time, or both, constitute
an Event of Default, Guarantor shall not receive or collect, directly or indirectly, from Borrower or any other Person, any amount
upon the Guarantor Claims, until the indefeasible payment in full of the Loan Obligations and the Guaranteed Obligations.

 

5.2               
Claims in Bankruptcy. In the event of receivership, bankruptcy, reorganization, arrangement, debtor’s
relief, or other insolvency proceedings involving Borrower as debtor, Administrative Agent and Lenders shall have the right to
prove their respective claims in any such proceeding so as to establish its rights hereunder and receive directly, from the receiver,
trustee or other court custodian, dividends and payments which would otherwise be payable upon Guarantor Claims. Guarantor hereby
assigns such dividends and payments to Administrative Agent for the benefit of the Lenders to the extent of the Guaranteed Obligations.
Should Administrative Agent receive, for application against the Guaranteed Obligations, any dividend or payment which is otherwise
payable to Guarantor, and which, as between Borrower and Guarantor, shall constitute a credit against the Guarantor Claims, then,
upon the indefeasible payment and performance in full to Administrative Agent and Lenders of the Loan Obligations and the Guaranteed
Obligations, Guarantor shall become subrogated to the rights of Administrative Agent and Lenders to the extent that such payments
to Administrative Agent on the Guarantor Claims have contributed toward the liquidation of the Guaranteed Obligations, and such
subrogation shall be with respect to that proportion of the Guaranteed Obligations which would have been unpaid if Administrative
Agent had not received dividends or payments upon the Guarantor Claims.

 

    	 

    	 

    

  

5.3               
Payments Held in Trust. In the event that, notwithstanding anything to the contrary in this Guaranty,
Guarantor should receive any funds, payment, claim or distribution which is prohibited by this Guaranty, then Guarantor agrees
to hold in trust for Administrative Agent an amount equal to the amount of all funds, payments, claims or distributions so received
(but only to the extent of the Guaranteed Obligations), and Guarantor further agrees that it shall have absolutely no dominion
over (or equitable or beneficial ownership of) the amount of such funds, payments, claims or distributions so received, and Guarantor
covenants promptly to pay the same to Administrative Agent.

 

5.4               
Liens Subordinate. Guarantor agrees that any liens, security interests, judgment liens, charges or other
encumbrances upon Borrower’s assets securing payment of the Guarantor Claims shall be and remain inferior and subordinate
to any liens, security interests, judgment liens, charges or other encumbrances upon Borrower’s assets securing payment of
the Loan Obligations and the Guaranteed Obligations, regardless of whether such liens, security interests, judgment liens, charges
or other encumbrances in favor of Guarantor or Administrative Agent presently exist or are hereafter created or attach. Without
the prior written consent of Administrative Agent, Guarantor shall not (i) exercise or enforce any right it may have against Borrower,
or (ii) foreclose, repossess, sequester, or otherwise take steps, or institute any action or proceeding (judicial or otherwise,
including, without limitation, the commencement of, or joinder in, any liquidation, bankruptcy, rearrangement, debtor’s relief
or insolvency proceeding), to enforce any liens, mortgages, deeds of trust, security interests, collateral rights, judgments or
other encumbrances on assets of Borrower securing payment of the Guarantor Claims held by Guarantor.

 

ARTICLE VI

COVENANTS

 

6.1               
Financial Information. The Guarantor hereby represents and warrants, as of the date hereof, that all financial
statements of the Guarantor heretofore delivered to the Administrative Agent by or on behalf of the Guarantor are true and correct
in all material respects and fairly present the financial condition of the Guarantor as of the respective dates of such financial
statements. No material adverse change has occurred in any financial condition reflected in any such financial statement since
the date of such financial statement. In addition, the Guarantor covenants that so long as the Loan Obligations remain outstanding
and unpaid, the Guarantor will, or will cause the Borrower to, furnish to the Administrative Agent, unless otherwise consented
to in writing by the Administrative Agent, all of the financial statements of the Guarantor specified in Section 5.3 of the Loan
Agreement.

 

ARTICLE VII

MISCELLANEOUS

 

7.1               
Waiver. No failure to exercise, and no delay in exercising, on the part of Administrative Agent or any
Lender, any right hereunder, shall operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any other
or further exercise thereof or the exercise of any other right. The rights of Administrative Agent hereunder shall be in addition
to all other rights provided by law. No modification or waiver of any provision of this Guaranty, nor any consent to departure
therefrom, shall be effective unless in writing, and no such consent or waiver shall extend beyond the particular case and purpose
involved. No notice or demand given in any case shall constitute a waiver of the right to take other action in the same, similar
or other instances without such notice or demand except to the extent such a notice or demand is required by the terms hereof.

 

7.2               
Notices. All notices, consents, approvals and requests required or permitted hereunder shall be in writing,
and shall be either hand delivered or sent, by (a) certified or registered U.S. mail, Return Receipt Requested, first class postage
prepaid, or (b) expedited prepaid delivery service, either commercial (e.g., Federal Express or comparable national courier) or
U.S. Postal Service, with proof of attempted delivery. All notices to any party shall be addressed to such party at its following
address:

 

    	 

    	 

    

  

If to the Administrative
Agent:

Sterling National Bank

400 Rella Blvd., P.O. Box 600

Montebello, New York 10901

Attention: Commercial Loan Department

 

With a copy to:

Windels Marx Lane & Mittendorf,
LLP

156 West 56th Street

New York, New York 10019

Attn: Michael Clain, Esq.

 

If to the Guarantor:

Trinity Place Holdings Inc.

717 Fifth Avenue

New York, New York 10022

Attn: Mr. Matthew Messinger

 

With a copy to:

Kramer Levin Naftalis & Frankel
LLP

1177 Avenue of the Americas

New York, New York 10036

Attn: James P. Godman, Esq.

 

Any party may give notice, in the manner
permitted by this Section, designating a new address in the United States for all notices to such party pursuant to this Section,
and such notice shall become effective upon receipt of such notice by the other party or parties to this Guaranty.

 

7.3               
Governing Law; Submission to Jurisdiction. THIS GUARANTY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK AND THE APPLICABLE LAWS OF THE UNITED STATES OF AMERICA. ANY LEGAL SUIT, ACTION OR
PROCEEDING AGAINST ADMINISTRATIVE AGENT OR GUARANTOR ARISING OUT OF OR RELATING TO THIS GUARANTY MAY BE INSTITUTED IN ANY FEDERAL
OR STATE COURT IN NEW YORK COUNTY, NEW YORK, AND ADMINISTRATIVE AGENT, LENDERS (BY THEIR ACCEPTANCE HEREOF) AND GUARANTOR WAIVE
ANY OBJECTIONS WHICH THEY MAY NOW OR HEREAFTER HAVE BASED ON VENUE AND/OR FORUM NON CONVENIENS OF ANY SUCH SUIT, ACTION OR PROCEEDING,
AND ADMINISTRATIVE AGENT, LENDERS (BY THEIR ACCEPTANCE HEREOF) AND GUARANTOR HEREBY IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION
OF ANY SUCH COURT IN ANY SUIT, ACTION OR PROCEEDING. FURTHERMORE, THE GUARANTOR AGREES AND CONSENTS THAT, IN ADDITION TO ANY METHODS
OF SERVICE OF PROCESS PROVIDED FOR UNDER APPLICABLE LAW, ALL SERVICE OF PROCESS IN ANY SUCH SUIT, ACTION OR PROCEEDING REFERRED
TO ABOVE MAY BE MADE BY CERTIFIED OR REGISTERED MAIL, POSTAGE PREPAID, RETURN RECEIPT REQUESTED, DIRECTED TO GUARANTOR AT THE ADDRESS
INDICATED IN THIS GUARANTY FOR SUCH PARTY.

 

7.4               
Invalid Provisions. If any provision of this Guaranty is held to be illegal, invalid, or unenforceable
under present or future laws effective during the term of this Guaranty, then such provision shall be fully severable, and this
Guaranty shall be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a part of this
Guaranty, and the remaining provisions of this Guaranty shall remain in full force and effect and shall not be affected by the
illegal, invalid or unenforceable provision or by its severance from this Guaranty.

 

7.5               
Amendments and Waivers. No term or provision of this Guaranty may be amended, waived or otherwise modified
except pursuant an instrument in writing executed by the party (or an authorized representative of the party) against whom enforcement
of such amendment, waiver or modification is sought.

 

    	 

    	 

    

  

7.6               
Parties Bound; Assignment; Joint and Several. This Guaranty shall be binding upon and inure to the benefit
of the parties hereto and their respective successors, permitted assigns and legal representatives; provided, however,
that Guarantor may not, without the prior written consent of Administrative Agent, assign any of its rights, powers, duties or
obligations hereunder. 

 

7.7               
Headings. Section headings are for convenience of reference only and shall in no way affect the interpretation
of this Guaranty.

 

7.8               
Consideration. Guarantor is the direct, legal and beneficial owner of 100% of the direct equity interests
in Borrower and will substantially benefit from the Loans made by Lenders to Borrower pursuant to the Loan Agreement.

 

7.9               
Counterparts. To facilitate execution, this Guaranty may be executed in as many counterparts as may be
convenient or required. It shall not be necessary that the signature of, or on behalf of, each party, or that the signature
of all Persons required to bind any party, appear on each counterpart. All counterparts shall collectively constitute a
single instrument. It shall not be necessary, in making proof of this Guaranty, to produce or account for more than a single
counterpart containing the respective signatures of, or on behalf of, each of the parties hereto. Any signature page to
any counterpart may be detached from such counterpart, without impairing the legal effect of the signatures thereon, and thereafter
attached to another counterpart identical thereto except having attached to it additional signature pages.

 

7.10           
Rights and Remedies. If Guarantor becomes liable for any indebtedness owing by Borrower to Administrative
Agent or any Lender, by endorsement or otherwise, other than under this Guaranty, then such liability shall not be in any manner
impaired or affected hereby, and the rights of Administrative Agent and Lenders hereunder shall be cumulative of any and all other
rights that Administrative Agent and Lenders may ever have against Guarantor. The exercise by Administrative Agent or any
Lender of any right or remedy hereunder or under any other instrument, or at law or in equity, shall not preclude the concurrent
or subsequent exercise of any other right or remedy.

 

7.11           
Entirety. THIS GUARANTY EMBODIES THE FINAL, ENTIRE AGREEMENT OF GUARANTOR AND ADMINISTRATIVE AGENT WITH RESPECT
TO GUARANTOR’S GUARANTY OF THE GUARANTEED OBLIGATIONS AND SUPERSEDES ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS,
AND UNDERSTANDINGS, WHETHER WRITTEN OR ORAL, RELATING TO THE SUBJECT MATTER HEREOF, EXCEPT AS PROVIDED IN THE LOAN DOCUMENTS. THIS
GUARANTY IS INTENDED BY GUARANTOR AND ADMINISTRATIVE AGENT AS A FINAL AND COMPLETE EXPRESSION OF THE TERMS OF THE GUARANTY, AND
NO COURSE OF DEALING BETWEEN GUARANTOR AND ADMINISTRATIVE AGENT, NO COURSE OF PERFORMANCE, NO TRADE PRACTICES, AND NO EVIDENCE
OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OR OTHER EXTRINSIC EVIDENCE OF ANY NATURE SHALL BE USED
TO CONTRADICT, VARY, SUPPLEMENT OR MODIFY ANY TERM OF THIS GUARANTY AGREEMENT. THERE ARE NO ORAL AGREEMENTS BETWEEN GUARANTOR AND
ADMINISTRATIVE AGENT OR ANY LENDER RELATING TO THE GUARANTEED OBLIGATIONS.

 

7.12           
Waiver of Right To Trial By Jury. GUARANTOR, AND BY THEIR ACCEPTANCE HEREOF, ADMINISTRATIVE AGENT AND LENDERS,
AGREE NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVES ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT
THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THIS GUARANTY OR ANY CLAIM, COUNTERCLAIM OR OTHER ACTION ARISING
IN CONNECTION THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY EACH OF ADMINISTRATIVE AGENT,
LENDERS AND GUARANTOR, AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL
BY JURY WOULD OTHERWISE ACCRUE. EACH PARTY IS HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE
EVIDENCE OF THIS WAIVER.

 

7.13           
No Third Party Beneficiaries. This Guaranty is solely between the Guarantor and the Administrative Agent, and
solely for the benefit of the Administrative Agent, the Lenders and any subsequent holder or holders of any Note, and nothing in
this Guaranty, whether express or implied, shall be construed to give any other Person any legal or equitable right, remedy or
claim under or in respect of this Guaranty.

 

    	 

    	 

    

  

7.14           
Release of Maintenance Obligation on Cutoff Date. Guarantor shall have no obligations with respect to Maintenance
Obligations first occurring after the earlier to occur of (x) the first anniversary of the date, if any, on which Administrative
Agent (or its designee) takes title to the Property by foreclosure, deed-in-lieu of foreclosure or otherwise or (y) the first anniversary
of the date, if any, on which Borrower tenders a deed to the Property to Administrative Agent (or its designee)(the earlier of
the forgoing dates, the “Cut-Off Date”), and the term “Guaranteed Obligations” shall be deemed
to exclude any Maintenance Obligations first occurring after the Cut-off Date, notwithstanding anything to the contrary contained
in this Guaranty; provided that with respect to a tender of a deed that is not accepted by Administrative Agent (or its
designee), the Cut-Off Date shall not be deemed to occur until Borrower and Guarantor, at their sole cost and expense, shall have
furnished to Administrative Agent a Phase I environmental assessment of the Property (i) conducted by an environmental engineer
or consultant reasonably acceptable to Administrative Agent (but who shall in no event have less than ten (10) years’ experience
in conducting similar assessments on properties in the general geographical location of the Property); (ii) covering such subjects
as are addressed in the Environmental Report and (iii) that concludes, in the Administrative Agent’s reasonable discretion,
that the Property does not contain any Hazardous Substances in violation of applicable law.

 

 

 

 

[Balance of page intentionally left blank;
signature page follows]

  

    	 

    	 

    

 

IN WITNESS WHEREOF, the Guarantor
has executed this Guaranty as of the date above set forth.

 

	 	 	TRINITY PLACE
    HOLDINGS INC.,
	 	 	a Delaware corporation
	 	 	 	 
	 	 	 	 
	 	By:	/s/ RICHARD PYONTEK	 
	 	 	Name: Richard Pyontek	 
	 	 	Title:   Chief
    Financial Officer	 

 

ACKNOWLEDGMENT(S)

 

STATE
OF NEW YORK     )

 )
SS:

COUNTY
OF NEW YORK)

 

On
the 5th day of February, 2015 before me, the undersigned, a notary public in and for said state, personally appeared RICHARD
PYONTEK personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose names) is (are)
subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies),
and that by his/her/their signatures) on the instrument, the individual(s), or the person upon behalf of which the individual(s)
acted, executed the instrument.

 

	 	/s/
    STEPHANIE TUMSUDEN
	 	Notary
    Public
	 	 
	 	STEPHANIE
    LYNN TUMSUDEN
	 	NOTARY
    PUBLIC – STATE OF NEW YORK
	 	No. 01TU6252488
	 	Qualified
    in Suffolk County
	 	My Commission
    Expires December 05, 2015

 

 

 

 

 

 

 

 

 

 

[Signature page to Carveout Guaranty]

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