Document:

EXHIBIT 10.2

 

LIMITED RECOURSE GUARANTY

 

THIS LIMITED RECOURSE
GUARANTY (as the same may be amended, restated, extended or otherwise modified from time to time, this “Guaranty”)
is made as of this 6th day of March, 2017, by NEW YORK CITY OPERATING PARTNERSHIP, L.P., a Delaware limited partnership,
having an address at c/o American Realty Capital New York City REIT, Inc., 106 York Road, Jenkintown, Pennsylvania 19046 (“Guarantor”),
in favor of BARCLAYS BANK PLC, a public company registered in England and Wales, having an address at 745 Seventh Avenue,
New York, New York 10019 (together with its successors, permitted transferees and/or permitted assigns, collectively, the “Lender”).

 

RECITALS:

 

A.           Lender
and ARC NYC123WILLIAM, LLC, a Delaware limited liability company (“Borrower”) have entered into a certain
Loan Agreement (as it may hereafter be modified, supplemented, extended, or renewed and in effect from time to time, the “Loan
Agreement”), which Loan Agreement sets forth the terms and conditions of a loan (said loan, together with all advances
which may hereafter be made pursuant to the Loan Agreement, being referred to herein as the “Loan”) to Borrower
secured by certain Property as defined and more particularly described in the Loan Agreement.

 

B.           Guarantor
is an Affiliate of Borrower and will receive direct or indirect benefit from Lender’s making of the Loan to Borrower.

 

C.           The
Loan is evidenced by that certain Severed, Amended and Restated Promissory Note A-1, that certain Severed, Amended and Restated
Promissory Note A-2 and that certain Severed, Amended and Restated Promissory Note A-3, each executed by Borrower and payable to
the order of each Lender (collectively, as each may hereafter be renewed, extended, supplemented, increased or modified and in
effect from time to time, and all other notes given in substitution therefor, or in modification, renewal, or extension thereof,
in whole or in part, the “Note”).

 

D.           Any
capitalized term used and not defined in this Guaranty shall have the meaning given to such term in the Loan Agreement. This Guaranty
is one of the Loan Documents described in the Loan Agreement.

 

NOW, THEREFORE, for good
and valuable consideration, the receipt and adequacy of which are hereby acknowledged, and as a material inducement to Lender to
extend credit to Borrower, Guarantor hereby guarantees to Lender the prompt and full payment and performance of the Guaranteed
Recourse Obligations of Borrower (defined below), this Guaranty being upon the following terms and conditions:

 

     

     

    

 

1.            Guaranteed
Recourse Obligations of Borrower.

 

(a)          Guarantor
hereby unconditionally and irrevocably guarantees to Lender the punctual payment when due under the Loan Agreement, and not merely
the collectability, whether by lapse of time, by acceleration of maturity, or otherwise, and at all times thereafter the payment
of the Guaranteed Recourse Obligations of Borrower (hereinafter defined). As used herein, the term “Guaranteed Recourse
Obligations of Borrower” shall mean all obligations and liabilities of Borrower for which Borrower shall be personally
liable pursuant to Article 13 of the Loan Agreement.

 

(b)          Notwithstanding
anything herein or in the Loan Documents to the contrary, Guarantor shall have no liability for the Guaranteed Recourse Obligations
of Borrower or other matters hereunder for any action taken or event first occurring
(a) following a foreclosure or acceptance of a deed-in-lieu of foreclosure by Lender or its nominee pursuant to the Loan Agreement,
or following any acquisition of title to the Property by Lender or its nominee,
or (b) from and after a mezzanine loan foreclosure or assignment-in-lieu thereof of the direct
or indirect ownership interest of Borrower by a mezzanine lender or its designee pursuant to the terms of a mezzanine
loan permitted under the Loan Agreement, including without limitation, pursuant to Section 11.6 thereof, or otherwise entered into
with the approval of Lender.

 

2.            Certain
Agreements and Waivers by Guarantor.

 

(a)          Guarantor
hereby agrees that each of the following shall constitute Events of Default hereunder: (i) the occurrence of a default by Guarantor
in payment of the Guaranteed Recourse Obligations of Borrower, or any part thereof, when such indebtedness becomes due under the
Loan Agreement (subject to any applicable notice and cure periods expressly set forth therein), and (ii) the dissolution, bankruptcy
and/or insolvency of any Guarantor.

 

(b)          Upon
the occurrence of any Event of Default hereunder, the Guaranteed Recourse Obligations of Borrower, for purposes of this Guaranty,
shall be deemed immediately due and payable at the election of Lender. Guarantor shall, on demand following such event, pay the
Guaranteed Recourse Obligations of Borrower to Lender. It shall not be necessary for Lender, in order to enforce such payment,
first to (i) institute suit or pursue or exhaust any rights or remedies against Borrower or others liable for the Debt, (ii) enforce
any rights against any security that shall ever have been given to secure the Debt, (iii) join Borrower or any others liable for
the payment or performance of the Guaranteed Recourse Obligations of Borrower or any part thereof in any action to enforce this
Guaranty and/or (iv) resort to any other means of obtaining payment or performance of the Guaranteed Recourse Obligations of Borrower.

 

(c)          Suit
may be brought or demand may be made against all parties who have signed this Guaranty as Guarantor or any other guaranty covering
all or any part of the Guaranteed Recourse Obligations of Borrower, or against any one or more of them, separately or together,
without impairing the rights of Lender against any party hereto.

 

    	 	2	 

     

    

 

(d)          In
the event any payment by Borrower or any other Person to Lender is held to constitute a preference, fraudulent transfer or other
voidable payment under any bankruptcy, insolvency or similar law, or if for any other reason Lender is required to refund such
payment or pay the amount thereof to any other party, such payment by Borrower or any other party to Lender shall not constitute
a release of Guarantor from any liability hereunder and this Guaranty shall continue to be effective or shall be reinstated (notwithstanding
any prior release, surrender or discharge by Lender of this Guaranty or of Guarantor), as the case may be, with respect to, and
this Guaranty shall apply to, any and all amounts so refunded by Lender or paid by Lender to another Person (which amounts shall
constitute part of the Guaranteed Recourse Obligations of Borrower), and any interest paid by Lender and any attorneys’ fees,
costs and expenses actually paid or incurred by Lender in connection with any such event. If acceleration of the time for payment
of any amount payable by Borrower under any Loan Document is stayed or delayed by any law or tribunal, any amounts due and payable
hereunder shall nonetheless be payable by Guarantor on demand by Lender.

 

3.            Subordination.
If, for any reason whatsoever, Borrower is now or hereafter becomes indebted to Guarantor:

 

(a)          such
indebtedness and all interest thereon and all liens, security interests and rights now or hereafter existing with respect to property
of Borrower securing same shall, at all times, be subordinate in all respects to the Guaranteed Recourse Obligations of Borrower
and to all liens, security interests and rights now or hereafter existing to secure the Guaranteed Recourse Obligations of Borrower;

 

(b)          Guarantor
shall not be entitled to enforce or receive payment, directly or indirectly, of any such indebtedness of Borrower to Guarantor
until the Guaranteed Recourse Obligations of Borrower have been fully and finally paid and performed; provided, however, nothing
herein is intended to limit Borrower’s ability to make distributions to Guarantor in the normal course of operations of Borrower;

 

(c)          Guarantor
hereby assigns and grants to Lender a security interest in all such indebtedness and security therefor, if any, of Borrower to
Guarantor now existing or hereafter arising, including any dividends and payments pursuant to debtor relief or insolvency proceedings
referred to below. In the event of receivership, bankruptcy, reorganization, or other debtor relief or insolvency proceedings involving
Borrower as debtor, Lender shall have the right to prove its claim in any such proceeding so as to establish its rights hereunder
and shall have the right to receive directly from the receiver, trustee or other custodian (whether or not an Event of Default
shall have occurred or be continuing under any of the Loan Documents), dividends and payments that are payable upon any obligation
of Borrower to Guarantor now existing or hereafter arising, and to have all benefits of any security therefor, until the Guaranteed
Recourse Obligations of Borrower have been fully and finally paid and performed. If, notwithstanding the foregoing provisions,
Guarantor should receive any payment, claim or distribution that is prohibited as provided above in this Section, Guarantor shall
pay the same to Lender immediately, Guarantor hereby agreeing that it shall receive the payment, claim or distribution in trust
for Lender and shall have absolutely no dominion over the same except to pay it immediately to Lender; and

 

(d)          Guarantor
shall promptly upon request of Lender from time to time execute such documents and perform such acts as Lender may require to evidence
and perfect its interest and to permit or facilitate exercise of its rights under this Section.

 

    	 	3	 

     

    

 

4.            Other
Liability of Guarantor or Borrower. If Guarantor is or becomes liable, by endorsement or otherwise, for any indebtedness owing
by Borrower to Lender other than under this Guaranty, such liability shall not be in any manner impaired or affected hereby, and
the rights of Lender hereunder shall be cumulative of any and all other rights that Lender may have against Guarantor.

 

5.            Assignment
by Lender. This Guaranty is for the benefit of Lender and Lender’s successors and permitted assigns, and in the event of
an assignment by Lender of the Guaranteed Recourse Obligations of Borrower, or any part thereof, the rights and benefits hereunder,
to the extent applicable to the Guaranteed Recourse Obligations of Borrower so assigned, may be transferred with such Guaranteed
Recourse Obligations of Borrower. Guarantor waives notice of any transfer or assignment of the Guaranteed Recourse Obligations
of Borrower, or any part thereof, and agrees that failure to give notice will not affect the liabilities of Guarantor hereunder.

 

6.            Binding
Effect. This Guaranty is binding not only on Guarantor, but also on Guarantor’s heirs, personal representatives, successors
and assigns. Upon the death of Guarantor, if Guarantor is a natural person, this Guaranty shall continue against Guarantor’s
estate as to all of the Guaranteed Recourse Obligations of Borrower, including that portion incurred or arising after the death
of Guarantor and shall be provable in full against Guarantor’s estate, whether or not the Guaranteed Recourse Obligations
of Borrower are then due and payable. If this Guaranty is signed by more than one Person, then all of the obligations of Guarantor
arising hereunder shall be jointly and severally binding on each of the undersigned, and their respective heirs, personal representatives,
successors and assigns, and the term “Guarantor” shall mean all of such Persons and each of them individually. Without
limitation of any other term, provision or waiver contained herein, Guarantor hereby acknowledges and agrees that it has been furnished
true, complete and correct copies of the Loan Documents and has reviewed the terms and provisions thereof (including, without limitation,
the Guaranteed Recourse Obligations of Borrower).

 

7.            Nature
of Guaranty. Guarantor hereby acknowledges and agrees that this Guaranty (a) is a guaranty of payment and not only of collection
and that Guarantor is liable hereunder as a primary obligor, (b) shall only be deemed discharged after the indefeasible satisfaction
in full of the Guaranteed Recourse Obligations of Borrower and the Debt, (c) shall not be reduced, released, discharged, satisfied
or otherwise impacted in connection with (i) any act or occurrence that might, but for the provisions hereof, be deemed a legal
or equitable reduction, satisfaction, discharge or release and/or (ii) Lender’s enforcement of remedies under the Loan Documents
and (d) shall survive the foregoing and shall not merge with any resulting foreclosure deed, deed in lieu or similar instrument
(if any).

 

8.            Governing
Law. The governing law and related provisions set forth in Section 17.2 of the Loan Agreement (including, without limitation, any
authorized agent provisions thereof) are hereby incorporated by reference as if fully set forth herein (with Guarantor substituted
in all places where Borrower appears thereunder) and shall be deemed fully applicable to Guarantor hereunder. Guarantor hereby
certifies that it has received and reviewed the Loan Agreement (including, without limitation, Section 17.2 thereof).

 

    	 	4	 

     

    

 

9.            Invalidity
of Certain Provisions. If any provision of this Guaranty or the application thereof to any Person or circumstance shall, for any
reason and to any extent, be declared to be invalid or unenforceable, neither the remaining provisions of this Guaranty nor the
application of such provision to any other Person or circumstance shall be affected thereby, and the remaining provisions of this
Guaranty, or the applicability of such provision to other Persons or circumstances, as applicable, shall remain in effect and be
enforceable to the maximum extent permitted by applicable Legal Requirements.

 

10.           Attorneys’
Fees, Costs and Expenses of Collection. Guarantor shall pay on demand all attorneys’ fees and all other costs and expenses
actually incurred by Lender in the enforcement of or preservation of Lender’s rights under this Guaranty including, without
limitation, all attorneys’ fees, costs and expenses, investigation costs, and all court costs, whether or not suit is filed
herein, or whether at maturity or by acceleration, or whether before or after maturity, or whether in connection with bankruptcy,
insolvency or appeal, or whether in connection with the collection and enforcement of this Guaranty against any other Guarantor,
if there be more than one. Guarantor agrees to pay interest on any expenses or other sums due to Lender under this Section 10 that
are not paid when due, at a rate per annum equal to the interest rate provided for in the Note. Guarantor’s obligations and
liabilities under this Section 10 shall survive any payment or discharge in full of the Guaranteed Recourse Obligations of Borrower.

 

11.          Payments.
All sums payable under this Guaranty shall be paid in lawful money of the United States of America that at the time of payment
is legal tender for the payment of public and private debts.

 

12.          Controlling
Agreement. It is not the intention of Lender or Guarantor to obligate Guarantor to pay interest in excess of that lawfully permitted
to be paid by Guarantor under applicable Legal Requirements. Should it be determined that any portion of the Guaranteed Recourse
Obligations of Borrower or any other amount payable by Guarantor under this Guaranty constitutes interest in excess of the maximum
amount of interest that Guarantor, in Guarantor’s capacity as guarantor, may lawfully be required to pay under applicable
Legal Requirements, the obligation of Guarantor to pay such interest shall automatically be limited to the payment thereof in the
maximum amount so permitted under applicable Legal Requirements. The provisions of this Section shall override and control all
other provisions of this Guaranty and of any other agreement between Guarantor and Lender.

 

13.          Notices.
Any and all notices, elections, demands, requests and responses thereto permitted or required to be given under this Guaranty shall
be given in accordance with the applicable terms and conditions of the Loan Agreement. Notices to Guarantor shall be addressed
as follows:

 

    	 	5	 

     

    

 

	Guarantor:	New York City Operating Partnership, L.P.
	 	c/o American Realty Capital New York City REIT, Inc.
	 	405 Park Avenue, 14th Floor
	 	New York, New York 10022
	 	Attention:  Legal Department
	 	 
	and	Arnold & Porter Kaye Scholer LLP
	 	250 West 55th Street
	 	New York, New York  10019
	 	Attention:  John J. Busillo, Esq.
	 	 
	Lender:	Barclays Bank PLC
	 	745 Seventh Avenue
	 	New York, New York 10019
	 	Attention:  Michael Birajiclian 
	 	 
	with a copy to:	Paul Hastings LLP
	 	200 Park Avenue
	 	New York, New York 10166
	 	Attention: Eric F. Allendorf, Esq.

 

14.          Cumulative
Rights. The exercise by Lender of any right or remedy hereunder or under any other Loan Document, or at law or in equity, shall
not preclude the concurrent or subsequent exercise of any other right or remedy. Lender shall have all rights, remedies and recourses
afforded to Lender by reason of this Guaranty or any other Loan Document or by law or equity or otherwise, and the same (a) shall
be cumulative and concurrent, (b) may be pursued separately, successively or concurrently against Guarantor or others obligated
for the Guaranteed Recourse Obligations of Borrower, or any part thereof, or against any one or more of them, or against any security
or otherwise, at the sole discretion of Lender, (c) may be exercised as often as occasion therefor shall arise, it being agreed
by Guarantor that the exercise of, discontinuance of the exercise of or failure to exercise any of such rights, remedies, or recourses
shall in no event be construed as a waiver or release thereof or of any other right, remedy, or recourse, and (d) are intended
to be, and shall be, nonexclusive. No waiver of any default on the part of Guarantor or of any breach of any of the provisions
of this Guaranty or of any other document shall be considered a waiver of any other or subsequent default or breach, and no delay
or omission in exercising or enforcing the rights and powers granted herein or in any other document shall be construed as a waiver
of such rights and powers, and no exercise or enforcement of any rights or powers hereunder or under any other document shall be
held to exhaust such rights and powers, and every such right and power may be exercised from time to time. The granting of any
consent, approval or waiver by Lender shall be limited to the specific instance and purpose therefor and shall not constitute consent
or approval in any other instance or for any other purpose. No notice to or demand on Guarantor in any case shall of itself entitle
Guarantor to any other or further notice or demand in similar or other circumstances. No provision of this Guaranty or any right,
remedy or recourse of Lender with respect hereto, or any default or breach, can be waived, nor can this Guaranty or Guarantor be
released or discharged in any way or to any extent, except specifically in each case by a writing intended for that purpose (and
which refers specifically to this Guaranty) executed, and delivered to Guarantor, by Lender.

 

    	 	6	 

     

    

 

15.          Subrogation.
Notwithstanding anything to the contrary contained herein, until the Guaranteed Recourse Obligations of Borrower have been fully
and finally paid, (a) Guarantor shall not have any right of subrogation in or under any of the Loan Documents or to participate
in any way therein, or in any right, title or interest in and to any security or right of recourse for the Guaranteed Recourse
Obligations of Borrower, and (b) if Guarantor is or becomes an “insider” (as defined in Section 101 of the Bankruptcy
Code) with respect to Borrower, then Guarantor hereby irrevocably and absolutely waives any and all rights of contribution, indemnification,
reimbursement or any similar rights against Borrower with respect to this Guaranty (including any right of subrogation, except
to the extent of collateral held by Lender), whether such rights arise under an express or implied contract or by operation of
law. It is the intention of the parties that Guarantor shall not be deemed to be a “creditor” (as defined in Section
101 of the Bankruptcy Code) of Borrower by reason of the existence of this Guaranty in the event that Borrower or Guarantor becomes
a debtor in any proceeding under the Bankruptcy Code. This waiver is given to induce Lender to make the Loan as evidenced by the
Note to Borrower.

 

16.          Further
Assurances. Guarantor at Guarantor’s expense will promptly execute and deliver to Lender upon Lender’s reasonable request
all such other and further documents, agreements, and instruments in compliance with or accomplishment of the agreements of Guarantor
under this Guaranty.

 

17.          No
Fiduciary Relationship. The relationship between Lender and Guarantor is solely that of lender and guarantor. Lender has no fiduciary
or other special relationship with or duty to Guarantor and none is created hereby or may be inferred from any course of dealing
or act or omission of Lender.

 

18.          Interpretation.
If this Guaranty is signed by more than one Person as “Guarantor”, then the term “Guarantor” as used in
this Guaranty shall refer to all such Persons jointly and severally, and all promises, agreements, covenants, waivers, consents,
representations, warranties and other provisions in this Guaranty are made by and shall be binding upon each and every such undersigned
Person, jointly and severally and Lender may pursue any Guarantor hereunder without being required (i) to pursue any other Guarantor
hereunder or (ii) pursue rights and remedies under any Security Instrument and/or applicable Legal Requirements with respect to
the Property or any other Loan Documents.

 

19.          Time
of Essence. Time shall be of the essence in this Guaranty with respect to all of Guarantor’s obligations hereunder.

 

20.          Execution.
This Guaranty may be executed in multiple counterparts, each of which, for all purposes, shall be deemed an original, and all of
which together shall constitute one and the same agreement.

 

    	 	7	 

     

    

 

21.          Entire
Agreement. This Guaranty embodies the entire agreement between Lender and Guarantor with respect to the guaranty by Guarantor of
the Guaranteed Recourse Obligations of Borrower. This Guaranty supersedes all prior agreements and understandings, if any, with
respect to guaranty by Guarantor of the Guaranteed Recourse Obligations of Borrower. No condition or conditions precedent to the
effectiveness of this Guaranty exist. This Guaranty shall be effective upon execution by Guarantor and delivery to Lender. This
Guaranty may not be modified, amended or superseded except in a writing signed by Lender and Guarantor referencing this Guaranty
by its date and specifically identifying the portions hereof that are to be modified, amended or superseded. The Loan Documents
represent the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous or subsequent
oral agreements of the parties.

 

22.          WAIVER
OF JURY TRIAL. EACH OF GUARANTOR AND LENDER (BY ACCEPTANCE OF THIS GUARANTY) HEREBY WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING
TO WHICH GUARANTOR AND LENDER MAY BE PARTIES ARISING OUT OF, IN CONNECTION WITH, OR IN ANY WAY PERTAINING TO, THIS GUARANTY AND
ANY OTHER LOAN DOCUMENT. IT IS AGREED AND UNDERSTOOD THAT THIS WAIVER CONSTITUTES A WAIVER OF TRIAL BY JURY OF ALL CLAIMS AGAINST
ALL PARTIES TO SUCH ACTIONS OR PROCEEDINGS, INCLUDING CLAIMS AGAINST PARTIES WHO ARE NOT PARTIES TO THIS GUARANTY. THIS WAIVER
IS KNOWINGLY, WILLINGLY AND VOLUNTARILY MADE BY GUARANTOR, AND GUARANTOR HEREBY REPRESENTS THAT NO REPRESENTATIONS OF FACT OR OPINION
HAVE BEEN MADE BY ANY INDIVIDUAL TO INDUCE THIS WAIVER OF TRIAL BY JURY OR TO IN ANY WAY MODIFY OR NULLIFY ITS EFFECT. GUARANTOR
FURTHER REPRESENTS AND WARRANTS THAT IT HAS BEEN REPRESENTED IN THE SIGNING OF THIS GUARANTY AND IN THE MAKING OF THIS WAIVER BY
INDEPENDENT LEGAL COUNSEL, OR HAS HAD THE OPPORTUNITY TO BE REPRESENTED BY INDEPENDENT LEGAL COUNSEL SELECTED OF ITS OWN FREE WILL,
AND THAT IT HAS HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL.

 

23.          Consent
to Jurisdiction. Guarantor irrevocably submits generally and unconditionally for itself and in respect of its property to the nonexclusive
jurisdiction of any state or federal court sitting in the State over any suit, action or proceeding arising out of, or relating
to, this Guaranty, and irrevocably agrees that all claims in respect of such action or proceeding may be heard and determined in
such state or federal court. Guarantor irrevocably waives, to the fullest extent permitted by law, any objection that Guarantor
may now or hereafter have to the laying of venue of any such suit, action or proceeding brought in any such court, and any claims
that any such suit, action or proceeding is brought in an inconvenient forum. Final judgment in any such suit, action or proceeding
brought in any such court shall be conclusive and binding upon Guarantor and may be enforced in any court in which Guarantor is
subject to jurisdiction, by a suit upon such judgment provided that service of process is effected upon Guarantor as provided in
the Loan Documents or as otherwise permitted by applicable Legal Requirements. Guarantor hereby releases, to the extent permitted
by applicable Legal Requirements, all errors and all rights of exemption, appeal, stay of execution, inquisition, and other rights
to which Guarantor may otherwise be entitled under the laws of the United States of America or of any state of possession of the
United States of America now in force and which may hereinafter be enacted. The authority and power to appear for and enter judgment
against Guarantor shall not be exhausted by one or more exercises thereof or by any imperfect exercise thereof and shall not be
extinguished by any judgment entered pursuant thereto. Such authority may be exercised on one or more occasions or from time to
time in the same or different jurisdiction as often as Lender shall deem necessary and desirable, for all of which this Guaranty
shall be sufficient warrant.

 

    	 	8	 

     

    

 

24.          Waivers.

 

(a)           Guarantor
hereby agrees that neither Lender’s rights or remedies nor Guarantor’s obligations under the terms of this Guaranty
shall be released, diminished, impaired, reduced or affected by any one or more of the following events, actions, facts, or circumstances,
and the liability of Guarantor under this Guaranty shall be absolute and unconditional irrespective of (and Guarantor hereby waives
any rights or protections related to): (i) any limitation of liability or recourse in any other Loan Document or arising under
any law; (ii) any claim or defense that this Guaranty was made without consideration or is not supported by adequate consideration;
(iii) the taking or accepting of any other security or guaranty for, or right of recourse with respect to, any or all of the Guaranteed
Recourse Obligations of Borrower; (iv) any homestead exemption or any other similar exemption under applicable Legal Requirements
and Guarantor hereby waives the benefit of any such exemption as to the Guaranteed Recourse Obligations of Borrower; (v) any release,
surrender, abandonment, exchange, alteration, sale or other disposition, subordination, deterioration, waste, failure to protect
or preserve, impairment, or loss of, or any failure to create or perfect any lien or security interest with respect to, or any
other dealings with, any collateral or security at any time existing or purported, believed or expected to exist in connection
with any or all of the Guaranteed Recourse Obligations of Borrower, including any impairment of Guarantor’s recourse against
any Person or collateral; (vi) whether express or by operation of law, any partial release of the liability of Guarantor hereunder,
or if one or more other guaranties are now or hereafter obtained by Lender covering all or any part of the Guaranteed Recourse
Obligations of Borrower, any complete or partial release of any one or more of such guarantors under any such other guaranty, or
any complete or partial release or settlement of Borrower or any other party liable, directly or indirectly, for the payment or
performance of any or all of the Guaranteed Recourse Obligations of Borrower; (vii) the death, insolvency, bankruptcy, disability,
dissolution, liquidation, termination, receivership, reorganization, merger, consolidation, change of form, structure or ownership,
sale of all assets, or lack of corporate, partnership or other power of Borrower or any other party at any time liable for the
payment or performance of any or all of the Guaranteed Recourse Obligations of Borrower; (viii) either with or without notice to
or consent of Guarantor: any renewal, extension, modification or rearrangement of the terms of any or all of the Guaranteed Recourse
Obligations of Borrower and/or any of the Loan Documents; (ix) any neglect, lack of diligence, delay, omission, failure, or refusal
of Lender to take or prosecute (or in taking or prosecuting) any action for the collection or enforcement of any of the Guaranteed
Recourse Obligations of Borrower, or to foreclose or take or prosecute any action to foreclose (or in foreclosing or taking or
prosecuting any action to foreclose) upon any security therefor, or to exercise (or in exercising) any other right or power with
respect to any security therefor, or to take or prosecute (or in taking or prosecuting) any action in connection with any Loan
Document, or any failure to sell or otherwise dispose of in a commercially reasonable manner any collateral securing any or all
of the Guaranteed Recourse Obligations of Borrower; (x) any failure of Lender to notify Guarantor of any creation, renewal, extension,
rearrangement, modification, supplement, subordination, or assignment of the Guaranteed Recourse Obligations of Borrower or any
part thereof, or of any Loan Document, or of any release of or change in any security, or of any other action taken or refrained
from being taken by Lender against Borrower or any security or other recourse, or of any new agreement between Lender and Borrower,
it being understood that Lender shall not be required to give Guarantor any notice of any kind under any circumstances with respect
to or in connection with the Guaranteed Recourse Obligations of Borrower, any and all rights to notice Guarantor may have otherwise
had being hereby waived by Guarantor, and Guarantor shall be responsible for obtaining for itself information regarding Borrower,
including, but not limited to, any changes in the business or financial condition of Borrower, and Guarantor acknowledges and agrees
that Lender shall have no duty to notify Guarantor of any information which Lender may have concerning Borrower; (xi) if for any
reason that Lender is required to refund any payment by Borrower to any other party liable for the payment or performance of any
or all of the Guaranteed Recourse Obligations of Borrower or pay the amount thereof to someone else; (xii) the making of advances
by Lender to protect its interest in the Property, preserve the value of the Property or for the purpose of performing any term
or covenant contained in any of the Loan Documents; (xiii) the existence of any claim, counterclaim (other than compulsory counterclaims),
set off, recoupment, reduction or defense based upon any claim or other right that Guarantor may at any time have against Borrower,
Lender, or any other Person, whether or not arising in connection with this Guaranty, the Note, the Loan Agreement, or any other
Loan Document; (xiv) the unenforceability of all or any part of the Guaranteed Recourse Obligations of Borrower against Borrower,
whether because the Guaranteed Recourse Obligations of Borrower exceed the amount permitted by law or violate any usury law, or
because the act of creating the Guaranteed Recourse Obligations of Borrower, or any part thereof, is ultra vires, or because the
officers or Persons creating same acted in excess of their authority, or because of a lack of validity or enforceability of or
defect or deficiency in any of the Loan Documents, or because Borrower has any valid defense, claim or offset with respect thereto
(other than the defense of payment and satisfaction), or because Borrower’s obligation ceases to exist by operation of law,
or because of any other reason or circumstance, it being agreed that Guarantor shall remain liable hereon regardless of whether
Borrower or any other Person be found not liable on the Guaranteed Recourse Obligations of Borrower, or any part thereof, for any
reason (and regardless of any joinder of Borrower or any other party in any action to obtain payment or performance of any or all
of the Guaranteed Recourse Obligations of Borrower); (xv) any order, ruling or plan of reorganization emanating from proceedings
under any bankruptcy or similar insolvency laws with respect to Borrower or any other Person, including any extension, reduction,
composition, or other alteration of the Guaranteed Recourse Obligations of Borrower, whether or not consented to by Lender; and/or
(xvi) any partial or total transfer, pledge and/or reconstitution of Borrower and/or any direct or indirect owner of Borrower (regardless
of whether the same is permitted under the Loan Documents).

 

    	 	9	 

     

    

 

(b)          This
Guaranty shall be effective as a waiver of, and Guarantor hereby expressly waives:

 

(i)          any
and all rights to which Guarantor may otherwise have been entitled under any suretyship laws in effect from time to time, including
any right or privilege, whether existing under statute, at law or in equity, to require Lender to take prior recourse or proceedings
against any collateral, security or Person whatsoever;

 

(ii)         any
rights of sovereign immunity and any other similar and/or related rights;

 

(iii)        any
other circumstance that may constitute a defense of Borrower or Guarantor hereunder and/or under the other Loan Documents (other
than the defense of payment and satisfaction); and

 

(iv)        any
right and/or requirement of or related to notice, presentment, protest, notice of protest, further notice of nonpayment, notice
of dishonor, default, nonperformance, intent to accelerate, acceleration, existence of the Debt and/or any amendment or modification
of the Debt.

 

25.          Representations,
Warranties and Covenants of Guarantor. Guarantor hereby makes the following representations, warranties and covenants (each of
which shall remain materially true and correct during the term hereof): (a) Guarantor is duly organized, validly existing and in
good standing under the laws of its state of formation, and Guarantor has all requisite right and power to execute and deliver
this Guaranty and to perform the Guaranteed Recourse Obligations of Borrower; (b) the execution, delivery and performance of this
Guaranty and the incurrence of the Guaranteed Recourse Obligations of Borrower, now or hereafter owing, (i) are within the powers
of Guarantor and (ii) do not require any approval or consent of, or filing with, any governmental authority or other Person (or
such approvals and consents have been obtained and delivered to the Lender) and are not in contravention of any provision of law
applicable to Guarantor; (c) this Guaranty and the other Loan Documents to which Guarantor is a party constitutes when delivered,
valid and binding obligations of Guarantor, enforceable in accordance with their respective terms; (d) Guarantor has filed all
tax returns which are required to be filed (or obtained proper extensions of time for the filing thereof) and has paid, or made
adequate provision for the payment of, all taxes which have or may become due pursuant to said returns or to assessments received;
(e) the financial statements and other information pertaining to Guarantor submitted
to Lender are true, complete and correct in all material respects and do not contain any material misstatement of fact or omit
to state a material fact or any fact necessary to make the statements contained therein not misleading; (f)
there is no litigation, at law or in equity, or any proceeding before any federal, state, provincial or municipal board or other
governmental or administrative agency pending or, to the knowledge of Guarantor, threatened, or any basis therefor, which involves
a risk of any material judgment or liability not fully covered by insurance (other than any deductible) which is likely to be adversely
determined and if so, would have a Material Adverse Effect, and no judgment, decree, or order of any federal, state, provincial
or municipal court, board or other governmental or administrative agency has been issued against Guarantor which has a Material
Adverse Effect; (g) the making of the Loan to Borrower will result in material
benefits to Guarantor; (h) Guarantor (i) has not entered into this Guaranty or
any Loan Document with the actual intent to hinder, delay, or defraud any creditor and (ii) has received reasonably equivalent
value in exchange for the Guaranteed Recourse Obligations of Borrower hereunder and under the Loan Documents.; and (i)
Guarantor is not a “foreign person” within the meaning of Section 1445(1)(3) of the Internal Revenue Code. Each of
the representations and covenants of and/or relating to Guarantor set forth in the other Loan Documents are hereby re-made by Guarantor
and incorporated herein by reference as if fully set forth herein. This Guaranty is not subject to any right of rescission, setoff,
counterclaim or defense (except of payment and satisfaction) by Guarantor, nor would the operation of any of the terms of this
Guaranty, or the exercise of any right hereunder, render the Loan Documents unenforceable. Guarantor has not asserted any right
of rescission, setoff, counterclaim or defense with respect to the Loan Documents.

 

    	 	10	 

     

    

 

26.          Financial
Covenants of Guarantor

 

(a)           Guarantor
(i) shall keep and maintain complete and accurate books and records and (ii) shall permit Lender and any authorized representatives
of Lender to have access to and to inspect, examine and make copies of the books and records, any and all accounts, data and other
documents of Guarantor, at all reasonable times, during normal business hours, at Guarantor’s address for notices as set
forth herein upon the giving of reasonable notice of such intent. Guarantor shall also provide to Lender, upon Lender’s reasonable
request, such information as Lender may reasonably request, from time to time, in such detail as may reasonably be required by
Lender.

 

(b)           Without
limiting the provisions of Section 26(a), Lender shall have the right, at any time and from time to time upon the occurrence and
continuance of an “Event of Default” hereunder or under the other Loan Documents, to audit the books and records of
Guarantor.

 

(c)            During
the term hereunder, sGuarantor will furnish or cause to be furnished to Lender, as soon as available, and in any event within one
hundred and twenty (120) days after the end of each fiscal year, (i) the annual consolidated financial statements of American Realty
Capital New York City REIT, Inc., which are inclusive of the Guarantor, which financial statements shall be
in form substantially similar to those previously delivered by Guarantor to Lender and which shall include a balance
sheet, income statement, and statement of cash flows, and
(ii) a certificate delivered to Lender by Guarantor which is signed by Responsible Officer of Guarantor certifying as to the Net
Worth and Liquidity of Guarantor as of the end of the preceding fiscal year. All such annual financial statements shall (A) be
prepared and audited by a “Big 4” accounting firm or other independent certified public accountant reasonably acceptable
to Lender, (B) be certified by Guarantor to Lender as true, correct and complete, in all material respects and (C) contain such
backup and/or supporting information as may be reasonably requested by Lender. In addition, Guarantor shall promptly furnish to
Lender any other financial information reasonably requested by Lender from time to time in respect of Guarantor.

 

    	 	11	 

     

    

 

(d)           Guarantor
shall, at all times while the Debt remains unsatisfied, maintain a Net Worth of not less than $100,000,000.00 and Liquidity of
not less than $5,000,000.00, in each case as calculated in accordance with GAAP.

 

(e)           As
used in this Section, the following terms shall have the respective meanings set forth below: 

 

(i)          “GAAP”
shall mean generally accepted accounting principles, consistently applied.

 

(ii)         “Liquidity”
shall mean, only to the extent owned individually or on a consolidated basis with Guarantor’s wholly-owned subsidiaries,
free of any security interests, liens or pledges: (a) cash or cash equivalents, (b) obligations of (or fully guaranteed as to principal
and interest by) the United States or any agency or instrumentality thereof (provided that the full faith and credit of the United
States supports such obligation or guarantee), (c) certificates of deposit (with a maturity of two years or less) issued by, or
savings account with, any bank or other financial institution having net assets of not less than $1 billion or (d) marketable securities
listed on a recognized stock exchange or traded over the counter and listed in the National Association of Securities Dealers Automatic
Quotations, marked to market, other than securities issued by any Guarantor or any Affiliate thereof.

 

(iii)        “Net
Worth” shall mean, as of a given date, (i) a Guarantor’s total assets as of such date, on a consolidated basis
with Guarantor’s wholly-owned subsidiaries (exclusive of any interest in the Property or in any other asset that is part
of the collateral for the Loan) less (ii) Guarantor’s total liabilities (including contingent liabilities but exclusive of
any liability under the Loan Documents) as of such date, calculated based on financial statements compiled in accordance with GAAP.

 

[NO FURTHER TEXT ON THIS PAGE]

 

    	 	12	 

     

    

 

IN WITNESS WHEREOF,
Guarantor has duly executed this Guaranty under as of the date first written above.

 

	 	GUARANTOR:
	 	 
	 	NEW YORK CITY OPERATING PARTNERSHIP, LP, a Delaware limited partnership
	 	 	 
	 	By:	 /s/ Michael A. Ead
	 	 	Name: Michael A. Ead
	 	 	Title: Authorized Signatory

 

[Signature Page to Limited Recourse Guaranty]EXHIBIT 10.3

 

ENVIRONMENTAL
INDEMNITY AGREEMENT

 

THIS ENVIRONMENTAL INDEMNITY
AGREEMENT (as the same may be amended, restated, extended, renewed or otherwise modified from time to time, this “Agreement”)
made as of the 6th day of March, 2017, by ARC NYC123WILLIAM, LLC, a Delaware limited liability company, having its principal
place of business at c/o American Realty Capital New York City REIT, Inc., 106 York Road, Jenkintown, Pennsylvania 19046 (“Borrower”),
and NEW YORK CITY OPERATING PARTNERSHIP, L.P., a Delaware limited partnership, having an address at c/o American Realty
Capital, 106 York Road, Jenkintown, Pennsylvania 19046 (“Principal”; Borrower and Principal are collectively
herein referred to as “Indemnitor”), in favor of BARCLAYS BANK PLC, a public company registered in England
and Wales, having an address at 745 Seventh Avenue, New York, New York 10019 (together with its successors, permitted transferees
and/or permitted assigns, collectively, “Indemnitee”) and other Indemnified Parties (defined below).

 

RECITALS:

 

A.           Indemnitee
is prepared to make a loan (the “Loan”) to Borrower pursuant to a Loan Agreement of even date herewith between
Borrower and Indemnitee (as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time,
the “Loan Agreement”). Capitalized terms not otherwise defined herein shall have the meaning set forth in the
Loan Agreement.

 

B.           Principal
is the owner of a direct and/or indirect equity interest in Borrower and will receive substantial benefit from Indemnitee’s
making of the Loan to Borrower.

 

C.           Indemnitee
is unwilling to make the Loan unless Indemnitor agrees to provide the indemnification, representations, warranties, covenants and
other matters described in this Agreement for the benefit of the Indemnified Parties.

 

D.           Indemnitor
is entering into this Agreement to induce Indemnitee to make the Loan.

 

AGREEMENT

 

NOW THEREFORE, in consideration
of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Indemnitor
hereby represents, warrants, covenants and agrees for the benefit of the Indemnified Parties as follows:

 

     

     

    

 

1.                        ENVIRONMENTAL
REPRESENTATIONS AND WARRANTIES. Except as otherwise disclosed by those certain Phase I environmental reports (or Phase II environmental
reports, if required) in respect of the Property (individually and/or collectively referred to below as the context may require
as the “Environmental Report”), copies of which have been provided to, or received by, Indemnitee, (a) there
are no Hazardous Substances (defined below) or underground storage tanks in, on, or under the Property, except those that are
in compliance with all Environmental Laws (defined below) and with permits issued pursuant thereto (b) to Indemnitor’s knowledge,
there are no past or present Releases (defined below) of Hazardous Substances in, on, under or from the Property which have not
been remediated in accordance with Environmental Law; (c) Indemnitor does not know of, and has not received any written notice
from any Person (including but not limited to a governmental entity) relating to the threat of any Release of Hazardous Substances
migrating to the Property; (d) there is no past or present material non-compliance with Environmental Laws, or with permits issued
pursuant thereto, in connection with the Property which has not been remediated or otherwise corrected in all material respects
in accordance with Environmental Law; (e) Indemnitor does not know of, and has not received, any written notice from any Person
(including but not limited to a governmental entity) relating to Hazardous Substances or Remediation (defined below) thereof,
of possible liability of any Person pursuant to any Environmental Law, other environmental conditions in connection with the Property
in violation of Environmental Law, or any actual or potential administrative or judicial proceedings in connection with any of
the foregoing; (f) Indemnitor has provided to Indemnitee, in writing, any and all information relating to conditions in, on, under
or from the Property that is known to Indemnitor and that is contained in files and records of Indemnitor or that has been provided
to Indemnitor, including but not limited to any reports relating to Hazardous Substances in, on, under or from the Property and/or
to any environmental condition of the Property; and (j) to Indemnitor’s knowledge, no Hazardous Substances have been handled,
manufactured, generated, stored or processed on the Property.

 

2.                        ENVIRONMENTAL
COVENANTS. Indemnitor covenants and agrees that: (a) all uses and operations on or of the Property, whether by Indemnitor
or any other Person, shall be in material compliance with all Environmental Laws and permits issued pursuant thereto; (b) Indemnitor
shall not cause, or permit, there to be any material Releases of Hazardous Substances in, on, under or from the Property; (c)
there shall be no Hazardous Substances in, on, or under the Property, except those that are both (i) in compliance with all Environmental
Laws and with permits issued pursuant thereto and (ii) disclosed to Indemnitee in writing; (d) Indemnitor shall use good faith
efforts to keep or cause to be kept the Property free and clear of all liens and other encumbrances imposed pursuant to any Environmental
Law, whether due to any act or omission of Indemnitor or any other Person (the “Environmental Liens”); (e)
Indemnitor shall, at its sole cost and expense, fully and expeditiously cooperate in all activities pursuant to Paragraph 3 of
this Agreement, including but not limited to providing all relevant information and making knowledgeable Persons available for
interviews; (f) in the event the Indemnified Parties have a good faith reason to believe there exists a Release or imminent threat
of Release of Hazardous Substances or any other environmental condition involving Hazardous Substances at the Property in violation
of Environmental Law, Indemnitor shall, at its sole cost and expense, perform any environmental site assessment or other investigation
of environmental conditions in connection with the Property, pursuant to any reasonable written request of Indemnitee (including
but not limited to sampling, testing and analysis of soil, water, air, building materials, and other materials and substances
whether solid, liquid or gas), and share with Indemnitee the reports and other results thereof, and Indemnitee and the other Indemnified
Parties shall be entitled to rely on such reports and other results thereof; (g) Indemnitor shall, at its sole cost and expense,
comply with all reasonable written requests of Indemnitee to (i) effectuate Remediation of any environmental condition (including
but not limited to a Release of a Hazardous Substance) in, on, under or from the Property to the extent that such Remediation
is required by applicable Environmental Law; (ii) comply with any directive from any governmental authority with respect to compliance
with any Environmental Law applicable to the Property; and (iii) take any other reasonable action necessary or appropriate for
protection of human health or the environment with respect to compliance with any Environmental Law applicable to the Property;
(h) Indemnitor shall not do or allow any tenant or other user of the Property to do any act that materially increases the dangers
to human health or the environment in violation of Environmental Laws applicable to the Property, poses an unreasonable risk of
harm to any Person in violation of Environmental Laws applicable to the Property; (i) Indemnitor shall promptly notify Indemnitee
in writing of (A) any presence or Releases or threatened Releases of Hazardous Substances in, on, under, from or migrating towards
the Property in violation of, or which would reasonably be expected to result in liability by Indemnitor pursuant to, applicable
Environmental Laws; (B) any non-compliance with any Environmental Laws applicable to the Property; (C) any actual or expected
Environmental Lien; (D) any required or proposed Remediation of environmental conditions relating to the Property; and (E) any
written notice that any Indemnitor receives from any source whatsoever (including but not limited to a governmental entity) relating
in any way to the presence, release, or threatened release of Hazardous Substances or Remediation thereof, possible liability
of Indemnitor pursuant to any Environmental Law applicable to the Property, other environmental conditions in connection with
the Property in violation of Environmental Law, or any actual or potential administrative or judicial proceedings in connection
with anything referred to in this Agreement; and (j) Indemnitor shall comply in all material respects with any and all applicable
local, state or federal laws, legislation, guidelines or statutes at any time in effect with respect to Microbial Matter.

 

    	 	2	 

     

    

 

3.                        INDEMNIFIED
RIGHTS/COOPERATION AND ACCESS. In the event the Indemnified Parties have a good faith reason to believe that an environmental
hazard involving a Hazardous Substance in violation of Environmental Law exists on the Property that, endangers any tenants or
other occupants of the Property or their guests or the general public, upon reasonable notice from the Indemnitee, Indemnitor
shall, at Indemnitor’s expense, promptly cause an engineer or consultant reasonably satisfactory to the Indemnified Parties
to conduct any environmental assessment or audit (the scope of which shall be determined in the sole and absolute discretion of
the Indemnified Parties) and take any samples of soil, groundwater or other water, air, or building materials or any other invasive
testing requested by Indemnitee and promptly deliver the results of any such assessment, audit, sampling or other testing; provided,
however, if such results are not delivered to the Indemnified Parties within a reasonable period, then, upon reasonable notice
to Indemnitor, the Indemnified Parties and any other Person designated by the Indemnified Parties, including but not limited to
any receiver, any representative of a governmental entity, and any environmental consultant, shall have the right, but not the
obligation, to enter upon the Property at all reasonable times to assess any and all aspects of the environmental condition of
the Property and its use, including but not limited to conducting any environmental assessment or audit (the scope of which shall
be determined in the sole and absolute discretion of the Indemnified Parties) and taking samples of soil, groundwater or other
water, air, or building materials, and reasonably conducting other invasive testing, unless, in the case of such results not being
delivered to the Indemnified Parties within a reasonable period, such results are delivered to the Indemnified Parties prior to
the taking of any such activities by any such Person. If the Indemnified Parties shall have a right of access to the Property
pursuant to this Section 3, Indemnitor shall cooperate with and provide the Indemnified Parties and any such Person designated
by the Indemnified Parties with such access.

 

    	 	3	 

     

    

 

4.                        INDEMNIFICATION.
Indemnitor covenants and agrees, at its sole cost and expense, to protect, defend, indemnify, release and hold Indemnified Parties
harmless from and against any and all Losses (defined below) imposed upon or incurred by or asserted against any Indemnified Parties
and directly or indirectly arising out of or in any way relating to any one or more of the following: (a) any presence of any
Hazardous Substances in, on, above, or under the Property; (b) any past, present or threatened Release of Hazardous Substances
in, on, above, under or from the Property; (c) any activity by Indemnitor, any Person affiliated with Indemnitor, and any tenant
or other user of the Property in connection with any actual, proposed or threatened use, treatment, storage, holding, existence,
disposition or other Release, generation, production, manufacturing, processing, refining, control, management, abatement, removal,
handling, transfer or transportation to or from the Property of any Hazardous Substances at any time located in, under, on or
above the Property; (d) any activity by Indemnitor, any Person affiliated with Indemnitor, and any tenant or other user of the
Property in connection with any actual or proposed Remediation of any Hazardous Substances at any time located in, under, on or
above the Property, whether or not such Remediation is voluntary or pursuant to court or administrative order, including but not
limited to any removal, remedial or corrective action; (e) any past, present or threatened non-compliance or violations of any
Environmental Laws (or permits issued pursuant to any Environmental Law) in connection with the Property or operations thereon,
including but not limited to any failure by Indemnitor, any Person affiliated with Indemnitor, and any tenant or other user of
the Property to comply with any order of any governmental authority in connection with any Environmental Laws; (f) the imposition,
recording or filing or the threatened imposition, recording or filing of any Environmental Lien encumbering the Property; (g)
any administrative processes or proceedings or judicial proceedings in any way connected with any matter addressed in this Agreement;
(h) any acts of Indemnitor, any Person affiliated with Indemnitor, and any tenant or other user of the Property in arranging for
disposal or treatment, or arranging with a transporter for transport for disposal or treatment, of Hazardous Substances at any
facility or incineration vessel containing such or similar Hazardous Substances; (i) any acts of Indemnitor, any Person affiliated
with any Indemnitor, and any tenant or other user of the Property in accepting any Hazardous Substances for transport to disposal
or treatment facilities, incineration vessels or sites from which there is a Release, or a threatened Release of any Hazardous
Substance which causes the incurrence of costs for Remediation; and (j) any misrepresentation or inaccuracy in any representation
or warranty or material breach or failure to perform any covenants or other obligations pursuant to this Agreement. Notwithstanding
the foregoing, Indemnitor shall not have any indemnification obligations to Indemnitee under this Agreement with respect to any
Losses that have been adjudicated as final (and are not subject to appeal) as having arisen solely out of, or that Indemnitor
can prove to the satisfaction of Indemnitee (determined in Indemnitee’s good faith discretion) arose solely out of, Hazardous
Substances in, on, under or about the Property that were (a) not (i) present prior to the date that (A) Indemnitee or its nominee
acquired title to the Property (and in no event resulting from or relating to a condition existing or which may have existed prior
to the date that Indemnitee or its nominee acquired title to the Property), whether by foreclosure, exercise of power of sale,
acceptance of a deed-in-lieu of foreclosure, or otherwise or (B) a mezzanine loan foreclosure or assignment in lieu of foreclosure
of the direct or indirect ownership interest of Borrower by a mezzanine lender or its designee pursuant to the terms of a mezzanine
loan permitted under the Loan Agreement, including without limitation, pursuant to Section 11.6 thereof, or entered into with
the approval of Indemnitee, and (ii) the result of any act or negligence of Indemnitor or any of Indemnitor’s affiliates,
agents or contractors; or (b) solely the result of the gross negligence or willful misconduct of any Indemnitee.

 

    	 	4	 

     

    

 

5.                        DUTY
TO DEFEND AND ATTORNEYS AND OTHER FEES AND EXPENSES. Upon written request by any Indemnified Party directly pertaining to
actions or suits arising out of the circumstances set forth in Section 4 above, Indemnitor shall defend same (if requested by
any Indemnified Party, in the name of the Indemnified Party) by attorneys and other professionals approved by the Indemnified
Parties. Notwithstanding the foregoing, any Indemnified Parties may, in their sole and absolute discretion, engage their own attorneys
and other professionals to defend or assist them, and, at the option of Indemnified Parties, their attorneys shall control the
resolution of any claim or proceeding, providing that no compromise or settlement shall be entered without Indemnitor’s
consent, which consent shall not be unreasonably withheld. Upon demand, Indemnitor shall pay or, in the sole and absolute discretion
of the Indemnified Parties, reimburse, the Indemnified Parties for the payment of reasonable fees and disbursements of attorneys,
engineers, environmental consultants, laboratories and other professionals in connection therewith.

 

6.                        DEFINITIONS.
As used in this Agreement, the following terms shall have the following meanings: The term “Environmental Law”
means any present and future federal, state and local laws, statutes, ordinances, rules, regulations and the like, as well as
common law, relating to protection of human health or the environment, relating to Hazardous Substances or relating to liability
for or costs of other actual danger to human health or the environment. The term “Environmental Law” includes,
but is not limited to, the following statutes, as amended, any successor thereto, and any regulations promulgated pursuant thereto,
and any state or local statutes, ordinances, rules, regulations and the like addressing similar issues: the Comprehensive Environmental
Response, Compensation and Liability Act; the Emergency Planning and Community Right-to-Know Act; the Hazardous Substances Transportation
Act; the Resource Conservation and Recovery Act (including but not limited to Subtitle I relating to underground storage tanks);
the Solid Waste Disposal Act; the Clean Water Act; the Clean Air Act; the Toxic Substances Control Act; the Safe Drinking Water
Act; the Occupational Safety and Health Act; the Federal Water Pollution Control Act; the Federal Insecticide, Fungicide and Rodenticide
Act; the Endangered Species Act; the National Environmental Policy Act; and the River and Harbors Appropriation Act. The term
“Environmental Law” also includes, but is not limited to, any present and future federal, state and local laws,
statutes ordinances, rules, regulations and the like, as well as common law: conditioning transfer of property upon a negative
declaration or other approval of a governmental authority of the environmental condition of the Property; requiring notification
or disclosure of Releases of Hazardous Substances or other environmental condition of the Property to any Governmental Authority
or other Person, whether or not in connection with transfer of title to or interest in property; imposing conditions or requirements
in connection with permits or other authorization for lawful activity; relating to nuisance, trespass or other causes of action
related to the Property; and relating to wrongful death, personal injury, or property or other damage in connection with any environmental
condition or use of the Property.

 

    	 	5	 

     

    

 

The term “Hazardous
Substances” means any and all substances (whether solid, liquid or gas) defined, regulated, listed, or otherwise classified
as pollutants, hazardous wastes, hazardous substances, hazardous materials, extremely hazardous wastes, or words of similar meaning
or regulatory effect under any present or future Environmental Laws or that may have a negative impact on human health or the environment,
including but not limited to Microbial Matter, petroleum and petroleum products, asbestos and asbestos-containing materials, polychlorinated
biphenyls, lead, radon, radioactive materials, flammables and explosives. The foregoing shall be deemed to exclude substances of
kinds and in amounts ordinarily and customarily used or stored in similar properties for the purposes of cleaning or other maintenance
or operations, provided the same (i) have been and continue to be in compliance with all Environmental Laws, (ii) have not and
do not result in contamination of the Property and (iii) have not had and do not otherwise have a Material Adverse Effect.

 

The term “Indemnified
Parties” means Indemnitee, any Person who is or will have been involved in the origination of the Loan, any Person who
is or will have been involved with the servicing of the Loan, any Person in whose name the encumbrance created by the Security
Instruments are or will have been recorded, Persons who may hold or acquire or will have held a full or partial direct interest
in the Loan (including, but not limited to, any custodians, trustees and other fiduciaries who hold or have held a full or partial
direct interest in the Loan for the benefit of third parties) as well as the respective directors, officers, shareholders, partners,
affiliates, subsidiaries, successors and assigns of any and all of the foregoing (including but not limited to any other Person
who holds or acquires or will have held a full or partial direct interest in the Loan or the Property, whether during the term
of the Loan or as a part of a foreclosure of the Loan and including, but not limited to, any successors by merger, consolidation
or acquisition of all or a substantial portion of Indemnitee’s assets and business).

 

The term “Losses”
means any actual losses, damages (excluding consequential damages, special damages and punitive damages), costs, fees, expenses,
claims, suits, judgments, awards, liabilities (including but not limited to strict liabilities), obligations, debts, fines, penalties,
charges, costs of Remediation (whether or not performed voluntarily), amounts paid in settlement, litigation costs, attorneys’
fees, engineers’ fees, environmental consultants’ fees, and investigation costs (including but not limited to costs
for sampling, testing and analysis of soil, water, air, building materials, and other materials and substances whether solid, liquid
or gas), in the case of each of the foregoing, of whatever kind or nature and whether or not incurred in connection with any judicial
or administrative proceedings, actions, claims, suits, judgments or awards.

 

The term “Microbial
Matter” means fungi or bacterial matter which reproduces through the release of spores or the splitting of cells, including,
but not limited to, mold, mildew, and viruses, whether or not such Microbial Matter is living.

 

The term “Release”
with respect to any Hazardous Substance means any release, deposit, discharge, emission, leaking, leaching, spilling, seeping,
migrating, injecting, pumping, pouring, emptying, escaping, dumping, disposing or other movement of Hazardous Substances.

 

    	 	6	 

     

    

 

The term “Remediation”
includes but is not limited to any response, remedial, removal, or corrective action; any activity to clean up, detoxify, decontaminate,
contain or otherwise remediate any Hazardous Substance; any actions to prevent, cure or mitigate any Release of any Hazardous Substance;
any action to comply with any Environmental Laws or with any permits issued pursuant thereto; any inspection, investigation, study,
monitoring, assessment, audit, sampling and testing, laboratory or other analysis, or evaluation relating to any Hazardous Substances
or to anything referred to herein.

 

7.                        OPERATIONS
AND MAINTENANCE PROGRAMS. If recommended by the Environmental Report or any other environmental assessment or audit of the
Property (including, without limitation, any assessment or audit performed after the date hereof), Indemnitor shall establish and
comply with an operations and maintenance program with respect to the Property, in form and substance reasonably acceptable to
Indemnitee, prepared by an environmental consultant reasonably acceptable to Indemnitee (each such program, as applicable, the
“O&M Program”), which O&M Program shall address any asbestos-containing material or lead based paint
that may now or in the future be detected at or on the Property. Borrower shall not permit any O&M Program to be amended, terminated,
replaced or otherwise modified, in each case, without obtaining Lender’s prior written consent thereto, not to be unreasonably
withheld. Without limiting the generality of the foregoing, Indemnitee may require in its reasonable discretion (a) periodic notices
or reports to Indemnitee in form, substance and at such intervals as Indemnitee may specify, (b) an amendment to any O&M Program
to address changing circumstances, laws or other matters, (c) access to the Property by Indemnitee, its agents or servicer, to
review and assess the environmental condition of the Property and Indemnitor’s compliance with any O&M Program and (e)
variation of any O&M Program in response to the reports provided by any such consultants. Indemnitor’s failure to comply
with the foregoing provisions of this Section within thirty (30) days of notice from Indemnitee shall, at Indemnitee’s option,
constitute an Event of Default. Without limitation of the foregoing, Borrower hereby acknowledges and agrees that (i) as of the
date hereof, Borrower has established the Operations and Maintenance Plan for Asbestos-Containing Materials dated as of January
27, 2015 (the “Closing Date O&M Program”) and (ii) the Closing Date O&M Program shall constitute an
“O&M Program” for purposes hereof. Borrower shall continue to implement the Closing Date O&M Program for the
Property, and shall diligently comply with the requirements of the Closing Date O&M Program during the term of the Loan. The
Closing Date O&M Program shall be in compliance in all material respects with all applicable Legal Requirements and shall be
subject to the reasonable approval of Indemnitee. Indemnitee’s requirement that Borrower comply with the Closing Date O&M
Program shall not be deemed to constitute a waiver or a modification of any of Borrower’s representations, covenants or agreements
with respect to environmental matters set forth herein, in the Loan Agreement or in any other Loan Document.

 

    	 	7	 

     

    

 

8.                        UNIMPAIRED
LIABILITY. The liability of Indemnitor under this Agreement shall in no way be limited or impaired by, and Indemnitor hereby
consents to and agrees to be bound by, any amendment or modification of the provisions of the Note, the Loan Agreement, the Security
Instruments or any other Loan Document to or with Indemnitee by Indemnitor or any Person who succeeds Indemnitor or any Person
as owner of the Property. In addition, the liability of Indemnitor under this Agreement shall in no way be limited or impaired
by (i) any extensions of time for performance required by the Note, the Loan Agreement, the Security Instruments or any of the
other Loan Documents, (ii) any sale or transfer of all or part of the Property, (iii) except as provided herein, any exculpatory
provision in the Note, the Loan Agreement, the Security Instruments or any of the other Loan Documents limiting Indemnitee’s
recourse to the Property or to any other security for the Note, or limiting Indemnitee’s rights to a deficiency judgment
against Indemnitor, (iv) the accuracy or inaccuracy of the representations and warranties made by Indemnitor under the Note, the
Loan Agreement, the Security Instruments or any of the other Loan Documents or herein, (v) the release of Indemnitor or any other
Person from performance or observance of any of the agreements, covenants, terms or conditions contained in any of the other Loan
Documents by operation of law, Indemnitee’s voluntary act, or otherwise, (vi) the release or substitution in whole or in
part of any security for the Note, or (vii) Indemnitee’s failure to record the Security Instruments or file any UCC financing
statements (or Indemnitee’s improper recording or filing of any thereof) or to otherwise perfect, protect, secure or insure
any security interest or lien given as security for the Note; and, in any such case, whether with or without notice to Indemnitor
and with or without consideration.

 

9.                        ENFORCEMENT.
Indemnified Parties may enforce the obligations of Indemnitor without first resorting to or exhausting any security or collateral
or without first having recourse to the Note, the Loan Agreement, the Security Instruments or any other Loan Documents or the
Property, through foreclosure proceedings or otherwise, provided, however, that nothing herein shall inhibit or prevent Indemnitee
from suing on the Note, foreclosing, or exercising any power of sale under, the Security Instrument, or exercising any other rights
and remedies thereunder. This Agreement is not collateral or security for the Debt, unless Indemnitee expressly elects in writing
to make this Agreement additional collateral or security for the Debt, which Indemnitee is entitled to do in its sole and absolute
discretion. It is not necessary for an Event of Default to have occurred pursuant to and as defined in the Loan Agreement for
Indemnified Parties to exercise their rights pursuant to this Agreement. Notwithstanding any provision of the Loan Agreement,
the obligations pursuant to this Agreement are exceptions to any non-recourse or exculpation provision of the Loan Agreement;
Indemnitor is fully and personally liable for such obligations, and such liability is not limited to the original or amortized
principal balance of the Loan or the value of the Property.

 

10.                      SURVIVAL.
Subject to this Section 10, the obligations and liabilities of Indemnitor under this Agreement shall fully survive indefinitely
notwithstanding any termination, satisfaction, assignment, entry of a judgment of foreclosure, exercise of any power of sale,
or delivery of a deed in lieu of foreclosure of the Security Instruments. Upon the full and indefeasible payment by Indemnitor
of the Debt, the indemnification obligations of Indemnitor hereunder shall be limited to Losses arising from conditions occurring
or existing prior to the date of such satisfaction and discharge of the Debt. Notwithstanding the foregoing, upon the full and
indefeasible payment by Indemnitor of the Debt, provided that Indemnitor furnishes to Indemnitee a Phase I environmental report
with respect to the Property, which report is from an environmental consultant reasonably acceptable to Lender, which updated
environmental report(s) disclose, no actual or threatened (other than as disclosed in the Environmental Report delivered to Indemnitee
by Indemnitor in connection with the origination of the Loan) (A) non-compliance with or violation in any material respect of
applicable Environmental Laws (or permits issued pursuant to Environmental Laws) in connection with the Property or operations
thereon, (B) Environmental Liens encumbering the Property, (C) administrative processes or proceedings or judicial proceedings
in any way connected with any matter addressed in the indemnity provisions of this Agreement or (D) presence or Release of Hazardous
Substances in, on, under or from the Property, excluding substances of kinds and in amounts ordinarily and customarily used or
stored in properties similar to the Property for the purposes of cleaning or other maintenance or operations and otherwise in
compliance with all Environmental Laws, that has not been fully remediated in accordance with all applicable Environmental Laws,
then this Agreement shall terminate and be of no further force and effect on the date that is two (2) years after the date on
which the Debt is so paid in full.

 

    	 	8	 

     

    

 

11.                      INTEREST.
Any amounts payable to any Indemnified Parties under this Agreement shall become immediately due and payable on demand and, if
not paid within five (5) days of such demand therefor, shall bear interest at the Default Rate.

 

12.                      WAIVERS.

 

(a)                      Indemnitor hereby waives (i) any right or claim of right to cause a marshaling of Indemnitor’s assets or to cause Indemnitee
or other Indemnified Parties to proceed against any of the security for the Loan before proceeding under this Agreement against
Indemnitor; (ii) and relinquishes all rights and remedies accorded by applicable law to indemnitors or guarantors, except any rights
of subrogation which Indemnitor may have, provided that the indemnity provided for hereunder shall neither be contingent upon the
existence of any such rights of subrogation nor subject to any claims or defenses whatsoever which may be asserted in connection
with the enforcement or attempted enforcement of such subrogation rights including, without limitation, any claim that such subrogation
rights were abrogated by any acts of Indemnitee or other Indemnified Parties; (iii) the right to assert a counterclaim, other than
a mandatory or compulsory counterclaim, in any action or proceeding brought against or by Indemnitee or other Indemnified Parties;
(iv) notice of acceptance hereof and of any action taken or omitted in reliance hereon; (v) presentment for payment, demand of
payment, protest or notice of nonpayment or failure to perform or observe, or other proof, or notice or demand; and (vi) all homestead
exemption rights against the obligations hereunder and the benefits of any statutes of limitations or repose. Notwithstanding anything
to the contrary contained herein, Indemnitor hereby agrees to postpone the exercise of any rights of subrogation with respect to
any collateral securing the Loan until the Loan shall have been paid in full.

 

(b)                      EACH
OF INDEMNITOR AND INDEMNITEE (BY ITS ACCEPTANCE OF THIS AGREEMENT) HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW,
THE RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM, WHETHER IN CONTRACT, TORT OR OTHERWISE, RELATING DIRECTLY
OR INDIRECTLY TO THE LOAN EVIDENCED BY THE NOTE, THE APPLICATION FOR THE LOAN EVIDENCED BY THE NOTE, THE SECURITY INSTRUMENT, THIS
AGREEMENT OR THE OTHER LOAN DOCUMENTS OR ANY ACTS OR OMISSIONS OF ANY INDEMNIFIED PARTIES IN CONNECTION THEREWITH.

 

13.                      SUBROGATION.
Indemnitor shall take any and all reasonable actions, including institution of legal action against third parties, necessary or
appropriate to obtain reimbursement, payment or compensation from such Persons responsible for the presence of any Hazardous Substances
at, in, on, under or near the Property or otherwise obligated by law to bear the cost. Indemnified Parties shall be and hereby
are subrogated to all of Indemnitor’s rights now or hereafter in such claims.

 

    	 	9	 

     

    

 

14.                      INDEMNITOR’S
REPRESENTATIONS AND WARRANTIES. Indemnitor represents and warrants that:

 

(a)                        it
has the full power and authority to execute and deliver this Agreement and to perform its obligations hereunder; the execution,
delivery and performance of this Agreement by Indemnitor has been duly and validly authorized; and all requisite action has been
taken by Indemnitor to make this Agreement valid and binding upon Indemnitor, enforceable in accordance with its terms;

 

(b)                        its
execution of, and compliance with, this Agreement is in the ordinary course of business of Indemnitor and will not result in the
breach of any term or provision of the charter, by-laws, partnership or trust agreement, or other governing instrument of Indemnitor
or result in the breach of any term or provision of, or conflict with or constitute a default under, or result in the acceleration
of any obligation under, any agreement, indenture or loan or credit agreement or other instrument to which Indemnitor or the Property
is subject, or result in the violation of any law, rule, regulation, order, judgment or decree to which Indemnitor or the Property
is subject;

 

(c)                        to
Indemnitor’s knowledge, there is no action, suit, proceeding or investigation pending or threatened against it which, either
in any one instance or in the aggregate, may result in any material adverse change in the business, operations, financial condition,
properties or assets of Indemnitor, or in any material impairment of the right or ability of Indemnitor to carry on its business
substantially as now conducted, or in any material liability on the part of Indemnitor, or which would draw into question the validity
of this Agreement or of any action taken or to be taken in connection with the obligations of Indemnitor contemplated herein, or
which would be likely to impair materially the ability of Indemnitor to perform under the terms of this Agreement;

 

(d)                        it
does not believe, nor does it have any reason or cause to believe, that it cannot perform each and every covenant contained in
this Agreement;

 

(e)                        to
Indemnitor’s knowledge, no approval, authorization, order, license or consent of, or registration or filing with, any governmental
authority or other person, and no approval, authorization or consent of any other party is required in connection with this Agreement;
and

 

(f)                        this
Agreement constitutes a valid, legal and binding obligation of Indemnitor, enforceable against it in accordance with the terms
hereof.

 

15.                      NO
WAIVER. No delay by any Indemnified Party in exercising any right, power or privilege under this Agreement shall operate as
a waiver of any such privilege, power or right.

 

    	 	10	 

     

    

 

16.                      NOTICE
OF LEGAL ACTIONS. Each party hereto shall, within five (5) Business Days of receipt thereof, give written notice to the other
party hereto of (i) any notice, advice or other communication from any governmental entity or any source whatsoever with respect
to Hazardous Substances on, from or affecting the Property, and (ii) any legal action brought against such party or related to
the Property, with respect to which Indemnitor may have liability under this Agreement. Such notice shall comply with the provisions
of Section 20 hereof.

 

17.                      EXAMINATION
OF BOOKS AND RECORDS. Indemnified Parties and their accountants shall have the right to examine the records, books, management
and other papers of Indemnitor which reflect upon its financial condition, at the Property or at the office regularly maintained
by Indemnitor where the books and records are located. Indemnified Parties and their accountants shall have the right to make
copies and extracts from the foregoing records and other papers. In addition, at reasonable times and upon reasonable notice,
Indemnified Parties and their accountants shall have the right to examine and audit the books and records of Indemnitor pertaining
to the income, expenses and operation of the Property during reasonable business hours at the office of Indemnitor where the books
and records are located.

 

18.                      SECURITIZATION.
Article 11 of the Loan Agreement is hereby incorporated by reference as if fully set forth herein. Indemnitor hereby agrees to
cooperate in fulfilling any obligation of Borrower under Article 11 of the Loan Agreement.

 

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

 

20.                      NOTICES.
All notices or other written communications hereunder shall be made in accordance with Article 14 of the Loan Agreement to the
addresses noted above (or to such other addresses as may be specified in writing by any party hereto to the other parties hereto).

 

21.                      DUPLICATE
ORIGINALS; COUNTERPARTS. This Agreement may be executed in any number of duplicate originals and each duplicate original shall
be deemed to be an original. This Agreement may be executed in several counterparts, each of which counterparts shall be deemed
an original instrument and all of which together shall constitute a single Agreement. The failure of any party hereto to execute
this Agreement, or any counterpart hereof, shall not relieve the other signatories from their obligations hereunder.

 

22.                      NO
ORAL CHANGE. This Agreement, and any provisions hereof, may not be modified, amended, waived, extended, changed, discharged
or terminated orally or by any act or failure to act on the part of Indemnitor or any Indemnified Party, but only by an agreement
in writing signed by the party against whom enforcement of any modification, amendment, waiver, extension, change, discharge or
termination is sought.

 

    	 	11	 

     

    

 

23.                      HEADINGS,
ETC. The headings and captions of various paragraphs of this Agreement are for convenience of reference only and are not to
be construed as defining or limiting, in any way, the scope or intent of the provisions hereof.

 

24.                      NUMBER
AND GENDER/SUCCESSORS AND ASSIGNS. All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine,
neuter, singular or plural as the identity of the Person or Persons referred to may require. Without limiting the effect of specific
references in any provision of this Agreement, the term “Indemnitor” shall be deemed to refer to each and every Person
comprising an Indemnitor from time to time, as the sense of a particular provision may require, and to include the heirs, executors,
administrators, legal representatives, successors and assigns of Indemnitor, all of whom shall be bound by the provisions of this
Agreement, provided that no obligation of Indemnitor may be assigned except with the written consent of Indemnitee. Each reference
herein to Indemnitee shall be deemed to include its successors and assigns. This Agreement shall inure to the benefit of Indemnified
Parties and their respective successors and assigns forever.

 

25.                      RELEASE
OF LIABILITY. Any one or more parties liable upon or in respect of this Agreement may be released without affecting the liability
of any party not so released.

 

26.                      RIGHTS
CUMULATIVE. The rights and remedies herein provided are cumulative and not exclusive of any rights or remedies which Indemnitee
has under the Note, the Security Instruments, the Loan Agreement or the other Loan Documents or would otherwise have at law or
in equity.

 

27.                      INAPPLICABLE
PROVISIONS. If any term, condition or covenant of this Agreement shall be held to be invalid, illegal or unenforceable in
any respect, this Agreement shall be construed without such provision.

 

28.                      GOVERNING
LAW. The governing law and related provisions set forth in Section 17.2 of the Loan Agreement (including, without limitation,
any authorized agent provisions thereof) are hereby incorporated by reference as if fully set forth herein (with Indemnitor substituted
in all places where Borrower appears thereunder) and shall be deemed fully applicable to Indemnitor hereunder. Indemnitor hereby
certifies that it has received and reviewed the Loan Agreement (including, without limitation, Section 17.2 thereof). In the event
of any conflict or inconsistency between the terms and conditions of this Agreement and this Section 28, this Section 28 shall
control.

 

29.                      MISCELLANEOUS.

 

(a)                      Wherever
pursuant to this Agreement (i) Indemnitee exercises any right given to it to approve or disapprove, (ii) any arrangement or term
is to be satisfactory to Indemnitee, or (iii) any other decision or determination is to be made by Indemnitee, the decision of
Indemnitee to approve or disapprove, all decisions that arrangements or terms are satisfactory or not satisfactory and all other
decisions and determinations made by Indemnitee, shall be in the sole and absolute discretion of Indemnitee and shall be final
and conclusive, except as may be otherwise expressly and specifically provided herein.

 

    	 	12	 

     

    

 

(b)                      Wherever
pursuant to this Agreement it is provided that Indemnitor pay any costs and expenses, such costs and expenses shall include, but
not be limited to, legal fees and disbursements of Indemnitee, whether retained firms, the reimbursements for the expenses of the
in-house staff or otherwise.

 

(c)                      If
Indemnitor consists of more than one person or party, the obligations and liabilities of each such person or party hereunder shall
be joint and several.

 

(d)                      Each of Indemnitor and Indemnitee irrevocably submits generally and unconditionally for itself and in respect of its property
to the nonexclusive jurisdiction of any state or federal court sitting in the State over any suit, action or proceeding arising
out of, or relating to, this Agreement, and irrevocably agrees that all claims in respect of such action or proceeding may be heard
and determined in such state or federal court. Each of Indemnitor and Indemnitee irrevocably waives, to the fullest extent permitted
by law, any objection that Indemnitor or Indemnitee, respectively, may now or hereafter have to the laying of venue of any such
suit, action or proceeding brought in any such court, and any claims that any such suit, action or proceeding is brought in an
inconvenient forum. Final judgment in any such suit, action or proceeding brought in any such court shall be binding upon Indemnitor
and may be enforced in any court in which Indemnitor or Indemnitee is subject to jurisdiction, by a suit upon such judgment provided
that service of process is effected upon Indemnitor or Indemnitee as provided in the Loan Documents or as otherwise permitted by
applicable Legal Requirements. The authority and power to appear for and enter judgment against Indemnitor shall not be exhausted
by one or more exercises thereof or by any imperfect exercise thereof and shall not be extinguished by any judgment entered pursuant
thereto. Such authority may be exercised on one or more occasions or from time to time in the same or different jurisdiction as
often as Indemnitee shall deem necessary and desirable, for all of which this Indemnitor shall be sufficient warrant.

 

[NO FURTHER TEXT ON THIS
PAGE]

 

    	 	13	 

     

    

 

IN WITNESS WHEREOF,
this Agreement has been executed by Indemnitor and is effective as of the day and year first above written.

 

	 	BORROWER:
	 	 
	 	ARC NYC123WILLIAM, LLC,
	 	a Delaware limited liability company
	 	 	 
	 	By:	 /s/ Michael A. Ead
	 	 	Name: Michael A. Ead
	 	 	Title: Authorized Signatory
	 	 	 
	 	PRINCIPAL:
	 	 
	 	NEW YORK CITY OPERATING PARTNERSHIP, L.P.,
	 	a Delaware limited partnership
	 	 	 
	 	By:	 /s/ Michael A. Ead
	 	 	Name: Michael A. Ead
	 	 	Title: Authorized Signatory

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00268-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00268-of-00352.parquet"}]]