Document:

Exhibit 10.5

 

 

 

MEZZANINE PLEDGE AND SECURITY AGREEMENT (OPERATING
PLEDGOR)

 

Dated as of December 20, 2016

 

by

 

ARC NY120W5701 TRS MEZZ, LLC, as Pledgor

 

in favor of

 

COLUMN FINANCIAL, INC., as Agent

 

 

 

 

     

     

    

 

MEZZANINE PLEDGE AND SECURITY AGREEMENT
(OPERATING PLEDGOR)

 

THIS MEZZANINE PLEDGE
AND SECURITY AGREEMENT (OPERATING PLEDGOR) (together with all extensions, renewals, modifications, substitutions and amendments
hereof, this “Agreement”), dated as of December 20, 2016, is made by ARC NY120W5701 TRS MEZZ, LLC, a
Delaware limited liability company, having its principal place of business at c/o New York REIT, Inc., 405 Park Avenue, New York,
New York 10022 (together with its successors and permitted assigns, “Pledgor”), in favor of COLUMN FINANCIAL,
INC., a Delaware corporation, having an address at 11 Madison Avenue, New York, New York 10010, on behalf of Lender (defined
below) (together with its successors and assigns, in such capacity, “Agent”). Capitalized terms used but not
otherwise defined herein shall have the meanings assigned to such terms in the Loan Agreement (defined below).

 

RECITALS

 

WHEREAS, Column
Financial, Inc., a Delaware corporation (together with its successors and permitted assigns, “Initial Mortgage Lender”)
is making a mortgage loan in the aggregate principal amount of Five Hundred Million and No/100 Dollars ($500,000,000.00) (the “Mortgage
Loan”) to the entities listed on Schedule I attached hereto (individually and/or collectively, together with
their successors and permitted assigns, “Mortgage Borrower”) pursuant to that certain Loan Agreement dated of
even date herewith, among Mortgage Borrower, Initial Mortgage Lender and certain other lender parties from time to time (together
with Initial Mortgage Lender and their respective successors and permitted assigns, collectively, “Mortgage Lender”)
and Column Financial, Inc., a Delaware corporation, as agent for Mortgage Lender (together with its successors and permitted assigns,
in such capacity, “Mortgage Agent”), and acknowledged and agreed to by ARC NY120W5701 TRS, LLC, a Delaware limited
liability company (“Operating Lessee”) (solely with respect to certain terms and conditions specified therein)
(as amended, supplemented or otherwise modified from time to time, the “Mortgage Loan Agreement”), which
Mortgage Loan is evidenced by the Note (as defined in the Mortgage Loan Agreement) and secured by, among other things, the Security
Instruments (as defined in the Mortgage Loan Agreement), encumbering Mortgage Borrower’s interest in the Properties, and
the Pledge Agreement (as defined in the Mortgage Loan Agreement), encumbering Issuer’s (defined below) interest in the Operating
Lessee;

 

WHEREAS, Column
Financial, Inc., a Delaware corporation (together with its successors and assigns, “Initial Lender”) is making
a mezzanine loan in the aggregate principal amount of Two Hundred Sixty Million and No/100 Dollars ($260,000,000.00) (the “Loan”)
to the entities listed on Schedule III attached hereto (individually and/or collectively, together with their successors
and permitted assigns, “Borrower”) pursuant to that certain Mezzanine Loan Agreement dated of even date herewith,
among Borrower, Initial Lender and certain other lender parties from time to time (together with Initial Lender and their respective
successors and permitted assigns, collectively, “Lender”) and Agent, and acknowledged and agreed to by Pledgor
(solely with respect to certain terms and conditions specified therein) (as amended, supplemented or otherwise modified from time
to time, the “Loan Agreement”), which Loan is evidenced by the Note and secured by, among other things, the
Mezzanine Pledge Agreement securing the collateral described therein;

 

     

     

    

 

WHEREAS, Mortgage
Borrower and Operating Lessee are parties to the Operating Lease pursuant to which Operating Lessee operates the Property known
as the Viceroy Hotel, and ARC NY120W5701 TRS MEZZ II, LLC, a Delaware limited liability company (“Issuer”) is
the beneficial owner of 100% of the direct equity interest in Operating Lessee;

 

WHEREAS, Pledgor
is the legal and beneficial owner of 100% of the issued and outstanding limited liability company interests in Issuer; and

 

WHEREAS, it is a
condition precedent to Lender making the Loan to Borrower under the Loan Agreement that Pledgor shall have executed and delivered
this Agreement to Lender as additional security for Borrower’s obligations and liabilities under the Loan Agreement.

 

NOW, THEREFORE,
in consideration of the premises and to induce Lender to make the Loan under the Loan Agreement, and other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, Pledgor hereby agrees with Lender as follows:

 

1.              Defined
Terms. As used in this Agreement, the following terms have the meanings set forth in or incorporated by reference below:

 

“Agent”
has the meaning ascribed to such term in the introductory paragraph.

 

“Agreement”
has the meaning ascribed to such term in the introductory paragraph.

 

“Article 8 Matter”
has the meaning ascribed to such term in Section 19(b) hereof.

 

“Borrower”
has the meaning ascribed to such term in the introductory paragraph.

 

“Code”
means the Uniform Commercial Code from time to time in effect in the State of New York.

 

“Collateral”
means the Pledged Collateral and all Proceeds thereof.

 

“Debt”
has the meaning ascribed to such term in the Loan Agreement.

 

“Initial Lender”
has the meaning ascribed to such term in the Recitals.

 

“Initial Mortgage
Lender” has the meaning ascribed to such term in the Recitals.

 

“Issuer”
has the meaning ascribed to such term in the Recitals.

 

“Lender”
has the meaning ascribed to such term in the Recitals.

 

    	 	2	 

     

    

 

“Loan”
has the meaning ascribed to such term in the Recitals.

 

“Loan Agreement”
has the meaning ascribed to such term in the Recitals.

 

“Loan Documents”
has the meaning ascribed to such term in the Loan Agreement.

 

“Mezzanine Pledge
Agreement” has the meaning ascribed to “Pledge Agreement” in the Loan Agreement.

 

“Mortgage Agent”
has the meaning ascribed to such term in the Recitals.

 

“Mortgage
Borrower” has the meaning ascribed to such term in the Recitals.

 

“Mortgage Lender”
has the meaning ascribed to such term in the Recitals.

 

“Mortgage Loan”
has the meaning ascribed to such term in the Recitals.

 

“Mortgage Loan
Agreement” has the meaning ascribed to such term in the Recitals.

 

“Note”
has the meaning ascribed to such term in the Loan Agreement.

 

“Operating Lessee”
has the meaning ascribed to such term in the Recitals.

 

“Pledge Agreement”
has the meaning ascribed to such term in the Mortgage Loan Agreement.

 

“Pledged Collateral”
has the meaning ascribed to such term in Section 2 of this Agreement.

 

“Pledged Securities”
means the limited liability company interests of Pledgor in Issuer listed on Schedule II hereto, together with all certificates
evidencing ownership of such interests, and all claims, powers, privileges, benefits, remedies, voting rights, options or rights
of any nature whatsoever of Pledgor with respect to such interest which currently exist or may be issued or granted by Issuer to
Pledgor while this Agreement is in effect, including, without limitation, the certificates evidencing such interest which have
been delivered to Agent, on behalf of Lender, pursuant to Section 3 hereof.

 

“Pledgor”
has the meaning ascribed to such term in the introductory paragraph.

 

“Proceeds”
means all “proceeds” as such term is defined in Section 9-102(a)(64) of the Code in effect in the State of New York
on the date hereof, and, in any event, shall include, without limitation, all dividends or other income from the Pledged Securities,
collections thereon or distributions with respect thereto, and all of Pledgor’s right, title and interest in all distributions,
monies, fees and compensation payable with respect to the Pledged Securities, as well as (i) all contract rights, general intangibles,
claims, powers, privileges, benefits and remedies of Pledgor relating to the foregoing and (ii) all cash or non-cash proceeds of
any of the foregoing.

 

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“Security Act”
has the meaning ascribed to such term in Section 10(a) hereof.

 

“Security Instruments”
has the meaning ascribed to such term in the Mortgage Loan Agreement.

 

“Special Damages”
has the meaning ascribed to such term in Section 18(j) hereof.

 

“UCC-1 Financing
Statements” has the meaning ascribed to such term in Section 12 hereof.

 

Terms used herein but not
otherwise defined herein shall have the respective meanings ascribed to them in the Loan Agreement.

 

(i)             The
words “hereof”, “herein” and “hereunder” and words of similar import when used in this Agreement
shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and section, subsection, schedule
and exhibit references are to this Agreement unless otherwise specified.

 

(ii)            The
word “including” when used in this Agreement shall be deemed to be followed by the words “but not limited to.”

 

2.              Pledge;
Grant of Security Interest. Pledgor hereby pledges and grants to Agent, on behalf of Lender, as collateral security for
the prompt and complete payment and performance when due (whether at the stated maturity, by acceleration or otherwise) of the
Debt, a first priority security interest in all of Pledgor’s right, title and interest to and under, in each case, whether
now owned or existing, or hereafter acquired or arising in the following (collectively, the “Pledged Collateral”):

 

(a)          all
Pledged Securities;

 

(b)          all
securities, security certificates, moneys or property representing the Pledged Securities, or representing dividends or interest
on any of the Pledged Securities, or representing a distribution in respect of the Pledged Securities, or resulting from a split-up,
revision, reclassification or other like change of the Pledged Securities or otherwise received in exchange therefor, and any subscription
warrants, rights or options issued to the holders of, or otherwise in respect of, the Pledged Securities;

 

(c)          all
right, title and interest of Pledgor in, to and under any policy of insurance payable by reason of loss or damage to the Pledged
Securities and any other Collateral;

 

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(d)          all
“accounts”, “deposit accounts”, “general intangibles”, “instruments”, “securities”
and “investment property” (in each case as defined in the Code) constituting or relating to the foregoing; and

 

(e)          all
Proceeds of any of the foregoing property of Pledgor (including, without limitation, any proceeds of insurance thereon).

 

3.             Certificates
and Powers. Concurrently with the execution and delivery of this Agreement, Pledgor shall deliver to Agent, on behalf of
Lender, each original certificate evidencing the Pledged Securities (which certificates shall constitute “security certificates”
(as defined in the Code)), together with an undated limited liability company membership power covering each such certificate duly
executed in blank.

 

4.             Representations
and Warranties. Pledgor represents and warrants as of the date hereof that:

 

(a)          no
authorization, consent of or notice to any other Person (including, without limitation, any member, owner, partner or creditor
of Pledgor and/or Issuer) that has not been obtained, is required in connection with the execution, delivery, performance, validity
or enforceability of this Agreement including, without limitation, the assignment and transfer by Pledgor of any of the Pledged
Collateral to Lender or the subsequent transfer thereof by Lender pursuant to the terms hereof;

 

(b)          all
of the certificates representing the Pledged Securities have been duly and validly issued and are fully paid and nonassessable
and have been delivered to Agent concurrently herewith;

 

(c)          the
Pledged Securities constitute all the issued and outstanding limited liability company interests in the Issuer;

 

(d)          Pledgor
is the record and beneficial owner of, and has good title to, the Pledged Securities set forth on Schedule II attached hereto
free and clear of any and all Liens or options in favor of, or claims of, any other Person, except the Lien created by this Agreement,
and the Pledged Securities have not previously been assigned, sold, transferred, pledged or encumbered (except pursuant to this
Agreement);

 

(e)          upon
delivery to Agent of the limited liability company certificates evidencing the Pledged Securities and the filing of UCC-1 Financing
Statements, to the extent required by law, the Lien granted pursuant to this Agreement will constitute a valid, perfected first
priority Lien on the Pledged Securities and related proceeds, enforceable as such against all creditors of Pledgor and any Persons
purporting to purchase any Pledged Securities and related proceeds from Pledgor, free from any adverse claim;

 

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(f)          upon
the filing of the UCC-1 Financing Statements referred to in Section 12 of this Agreement with the Delaware Secretary of
State, the Lien granted pursuant to this Agreement will constitute a valid, perfected, first priority Lien on the Collateral (other
than the Pledged Securities and related Proceeds) in such jurisdictions, enforceable as such against all creditors of Pledgor and
any Persons purporting to purchase any such other Collateral from Pledgor;

 

(g)          the
principal place of business and chief executive office of Pledgor is located at 106 York Road, Jenkintown, PA 19046;

 

(h)          the
exact name of Pledgor is as identified in the introductory paragraph of this Agreement;

 

(i)          Pledgor
is, and at all times has been, organized exclusively under the laws of the State of Delaware;

 

(j)          there
currently exist no certificates, instruments or writings representing the Pledged Securities other than the certificates delivered
to Agent and to the extent that in the future there exist any such certificates, instruments or writings, Pledgor shall deliver
all such certificates, instruments or writings to Lender together with the undated limited liability company membership powers
executed in blank; and

 

(k)          The
Pledged Securities (i) are “securities” (within the meaning of Sections 8-102(a)(15) and 8-103 of the Code), (ii) are
“financial assets” (within the meaning of Section 8-102(a)(9) of the Code) and (iii) are not credited to a “securities
account” (within the meaning of Section 8-501(a) of the Code). The operating agreement of Issuer and the certificates evidencing
the Pledged Securities each shall at all times state that the Pledged Securities are “securities” as such term is defined
in Article 8 of the Code.

 

5.              Covenants.
Pledgor covenants and agrees with Lender that, from and after the date of this Agreement until the Debt (exclusive of any indemnification
or other obligations which are expressly stated in any of the Loan Documents to survive satisfaction of the Note) is paid in full:

 

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(a)          Acknowledgement
of Parties. If Pledgor shall, as a result of its ownership of the Pledged Securities, become entitled to receive or shall receive
any limited liability company interest certificate (including, without limitation, any certificate representing a dividend or a
distribution in connection with any reclassification, increase or reduction of capital or any certificate issued in connection
with any reorganization), option or rights, whether in addition to, in substitution of, as a conversion of, or in exchange for
any of the Pledged Securities, or otherwise in respect thereof, Pledgor shall accept the same as Lender’s agent, hold the
same in trust for Lender and deliver the same forthwith to Lender in the exact form received, duly endorsed by Pledgor to Lender,
if required, together with an undated limited liability company power covering such certificate duly executed in blank and with,
if Lender so requests, signature guaranteed, to be held by Lender hereunder as additional security for the Debt. Any sums paid
upon or in respect of the Pledged Securities upon the liquidation or dissolution of Issuer shall be paid over to Lender, to be
held by it hereunder as additional security for the Debt and distributed in accordance with the provisions of the Loan Agreement
and the Mortgage Loan Agreement, and in case any distribution of capital shall be made on or in respect of the Pledged Securities
or any property shall be distributed upon or with respect to the Pledged Securities in each case pursuant to (a) any such liquidation
or dissolution of Issuer, or (b) recapitalization or reclassification of the capital of Issuer or pursuant to the reorganization
thereof, in violation of the provisions of the Loan Documents, then in such case the property so distributed shall be delivered
to Lender, to be held by it, subject to the terms hereof, as additional security for the Debt and distributed in accordance with
the provisions of the Loan Agreement and the Mortgage Loan Agreement; provided, however, that nothing in this paragraph
shall be deemed to limit or restrict Borrower’s rights to release any Release Collateral and/or prepay the Loan pursuant
to the Loan Documents and/or Borrower’s rights to cause Mortgage Borrower to release any Release Property and/or prepay the
Mortgage Loan pursuant to the Mortgage Loan Documents and/or Mortgage Borrower’s rights to release the Release Property and/or
prepay the Mortgage Loan pursuant to the Mortgage Loan Documents, and provided further that after any such release is conducted
in accordance with the Loan Documents and the Mortgage Loan Documents, any excess proceeds generated from any such release and
Transfer of the Release Collateral and/or Release Property, as applicable, shall be retained by Borrower and/or Mortgage Borrower,
as applicable, and may be distributed by Mortgage Borrower and/or Borrower  at its discretion, and shall not be paid over
to Lender.  If any sums of money or property so paid or distributed in respect of the Pledged Securities shall be received
by Pledgor and are required to be delivered to Lender as provided above, Pledgor shall deliver the same forthwith to Lender, and,
until such money or property is paid or delivered to Lender, hold such money or property in trust for Lender, segregated from other
funds of Pledgor, as additional security for the Debt (with any excess funds being promptly returned to Pledgor upon the indefeasible
payment in full of the Debt).  Pledgor shall cause Issuer, by its signature to the Acknowledgement and Consent, a form of
which is attached hereto as Exhibit A, to agree that it will notify Lender promptly of the occurrence of any events described
in this section. Notwithstanding the foregoing, if no such event described above entitling Lender to receive such sums or property
has occurred, then such distributions shall be made in the normal course of business of Issuer in accordance with Section 7
hereof.

 

(b)          Negative
Covenants. Without the prior written consent of Lender, Pledgor shall not, directly or indirectly (i) except as expressly permitted
in the Loan Agreement, vote to enable, or take any other action to permit Issuer to issue any additional limited liability company
interests or to issue any other securities convertible into or granting the right to purchase or exchange for any limited liability
company interests in Issuer, (ii) except as permitted by the Loan Agreement, sell, assign, transfer, exchange or otherwise dispose
of, or grant any option with respect to, the Collateral, or (iii) except as expressly permitted by the Loan Agreement, create,
incur, authorize or permit to exist any Lien or option in favor of, or any claim of any Person with respect to, any of the Collateral,
or any interest therein, except for the Lien provided for by this Agreement. Pledgor will not create, incur or permit to exist
any Lien (other than Permitted Encumbrances), or options in favor of, or claim on or to the Collateral, will defend, at its sole
cost and expense, the Collateral against, and will take all such other action as is reasonably necessary to remove, any Lien or
claim on or to the Collateral, other than the Liens created hereby and any Permitted Encumbrances, and will defend, at its sole
cost and expense, the right, title and interest of Lender in, to and under the Collateral against the claims and demands of all
Persons whomsoever, subject to the Permitted Encumbrances.

 

    	 	7	 

     

    

 

(c)          Filing.
At any time and from time to time, upon the written request of Lender, and at the sole expense of Pledgor, Pledgor shall promptly
and duly give, execute, deliver, file and/or record such further instruments and documents and take such further actions as Lender
may reasonably request for the purposes of obtaining, creating, perfecting, validating or preserving the full benefits of this
Agreement and of the rights and powers herein granted including, without limitation, filing UCC Financing Statements or UCC-3 continuation
statements, provided that the amount of the Debt or the obligations of Pledgor hereunder or under the Loan Documents shall not
be materially increased thereby or the rights of Pledgor hereunder or under the Loan Documents shall not be materially decreased
thereby. Pledgor hereby authorizes Lender to file any such financing statement or continuation statement without the signature
of Pledgor to the extent permitted by law. If any amount payable under or in connection with any of the Collateral shall be or
become evidenced by any promissory note, other instrument or chattel paper, such note, instrument or chattel paper shall be promptly
delivered to Lender, duly endorsed in a manner satisfactory to Lender, to be held as Collateral pursuant to this Agreement.

 

(d)          Further
Identification of Pledged Securities. Pledgor will furnish to Lender from time to time statements and schedules further identifying
and describing the Pledged Securities and such other reports in connection with the Pledged Securities as Lender may reasonably
request, all in reasonable detail.

 

(e)          Changes
in Name and Location. Except as expressly permitted in the Loan Agreement, Pledgor will not, unless (i) it shall have given
thirty (30) days’ prior written notice to such effect to Lender and (ii) all action reasonably necessary in Lender’s
opinion to protect and perfect the Liens and security interests intended to be created hereunder with respect to the Pledged Securities,
including, without limitation, the delivery of such opinions of counsel as may be reasonably required by Lender, shall have been
taken, (A) change the location of its chief executive office or principal place of business from that specified in Section 4(g)
hereof, or (B) change its name, identity or corporate organization, or (C) reorganize or reincorporate under the laws of another
jurisdiction.

 

(f)          Indemnity.
Pledgor shall pay, and save Lender harmless from, any and all liabilities with respect to, or resulting from any delay in paying,
any and all stamp, excise, sales or other taxes which may be payable or determined to be payable with respect to any of the Collateral
or in connection with any of the transactions contemplated by this Agreement excluding any income or franchise taxes imposed on
Lender.

 

    	 	8	 

     

    

 

(g)          UCC
Article 8. The Pledged Securities (i) shall continue to be “securities” (within the meaning of Sections 8-102(a)(15)
and 8-103 of the Code), (ii) shall continue to be “financial assets” (within the meaning of Section 8-102(a)(9) of
the Code) and (iii) shall not be credited to a “securities account” (within the meaning of Section 8-501(a) of the
Code). The operating agreement of Issuer and the certificates evidencing the Pledged Securities each shall at all times state that
the Pledged Securities are “securities” as such term is defined in Article 8 of the Code.

 

6.              Certain
Understandings of Parties; Control of Pledged Collateral; Registration of Pledge, Etc.

 

(a)          The
parties acknowledge and agree that all of the Pledged Securities are “certificated”, are “securities” governed
by Article 8 of the Code and, during the term of this Agreement, the Pledged Securities are and will be deemed securities and certificated
securities under Article 8 and Article 9 of the Code, including without limitation, Section 102(a)(5) of the Code. Pledgor covenants
and agrees that (i) the Pledged Securities are not and will not be dealt in or traded on securities exchanges or securities markets
and (ii) the Pledged Securities are not and will not be “investment company securities” within the meaning of Section
8-103 of the Code, and (iii) the Pledged Securities constitute “certificated securities” within the meaning of Section
8-102(a)(14) of the Code.

 

(b)          Notwithstanding
the foregoing, to better assure the perfection of the security interest of Lender in the Pledged Securities concurrently with the
execution and delivery of this Agreement, and subsequently from time to time upon Lender’s written request following Lender’s
transfer of all or any portion of the Loan subject to the terms of the Loan Agreement and all applicable laws, Pledgor shall send
written instructions in the form of Exhibit B hereto to the Issuer, and shall cause the Issuer to, and the Issuer shall,
deliver to Lender the Confirmation Statement and Instruction Agreement in the form of Exhibit C hereto pursuant to which
the Issuer will confirm that it has registered the pledge effected by this Agreement on its books and agrees to comply with the
instructions of Lender in respect of the Pledged Securities without further consent of Pledgor or any other Person. Notwithstanding
anything in this paragraph, neither the written instructions nor the Confirmation Statement and Instruction Agreement shall be
construed as expanding the rights of Lender to give instructions with respect to the Collateral beyond such rights set forth in
this Agreement.

 

7.             Cash
Dividends; Voting Rights. Subject to Section 8 hereof and the provisions of the Loan Agreement, and unless an Event
of Default shall have occurred and be continuing, Pledgor shall be permitted to receive, use and/or distribute all limited liability
company interest distributions or cash dividends, as applicable, paid in the normal course of business of the Issuer and to exercise
all voting and limited liability company interests with respect to the Pledged Securities, provided that no vote shall be cast
or right exercised which, in Lender’s reasonable judgment, would result in any violation of any provision of the Loan Agreement,
the Note, this Agreement or any other Loan Documents.

 

    	 	9	 

     

    

 

8.            Rights
of Lender.

 

(a)           If
an Event of Default shall occur and be continuing, Lender shall have the right to receive any and all income, cash dividends, distributions,
proceeds or other property received or paid in respect of the Pledged Securities and the other Collateral and make application
thereof to the Debt, in such order as Lender, in its sole discretion, may elect, subject to and in accordance with the Loan Documents.
If an Event of Default shall occur and be continuing, then all such Pledged Securities at Lender’s option, shall be registered
in the name of Lender or its nominee (if not already so registered), and Lender or its nominee may thereafter exercise (i) all
voting, and limited liability company interests of Pledgor pertaining to the Pledged Securities, including, without limitation,
all rights to control the Issuer (including the right to remove and/or replace directors and managers) pursuant to and in accordance
with such voting and beneficial interests and other rights of Pledgor or as set forth in the organizational documents of the Issuer
and (ii) any and all rights of conversion, exchange, and subscription and any other rights, privileges or options pertaining to
such Pledged Securities as if it were the absolute owner thereof (including, without limitation, the right to exchange at its discretion
any and all of the Pledged Securities upon the merger, consolidation, reorganization, recapitalization or other fundamental change
in the organizational structure of Issuer, or upon the exercise by Pledgor or Lender of any right, privilege or option pertaining
to such Pledged Securities, and in connection therewith, the right to deposit and deliver any and all of the Pledged Securities
with any committee, depositary, transfer agent, registrar or other designated agency upon such terms and conditions as it may determine),
all without liability except to account for property actually received by it and except to the extent arising out of Lender’s
gross negligence or willful misconduct, but Lender shall have no duty to exercise any such right, privilege or option and shall
not be responsible for any failure to do so or delay in so doing.

 

(b)          The
rights of Lender under this Agreement shall not be conditioned or contingent upon the pursuit by Lender of any right or remedy
against Pledgor or against any other Person which may be or become liable in respect of all or any part of the Debt or against
any other security therefor, guarantee thereof or right of offset with respect thereto. Lender shall not be liable for any failure
to demand, collect or realize upon all or any part of the Collateral or for any delay in doing so, nor shall it be under any obligation
to sell or otherwise dispose of any Collateral upon the request of Pledgor or any other Person or to take any other action whatsoever
with regard to the Collateral or any part thereof.

 

(c)          Upon
satisfaction in full of the Debt and payment of all amounts owed on the Note (exclusive of any indemnification or other obligations
which are expressly stated in any of the Loan Documents to survive satisfaction of the Note), Lender’s rights under this
Agreement shall automatically terminate and Lender, at Pledgor’s cost and expense, shall execute and deliver to Pledgor,
or shall authorize Pledgor to file, UCC-3 termination statements or similar documents and agreements to terminate (or, upon Pledgor’s
request to assign) all of Lender’s rights under this Agreement and all other Loan Documents and upon request, Lender shall,
or shall cause Agent to, deliver the certificates evidencing the Pledged Securities and any limited liability powers to Pledgor.

 

    	 	10	 

     

    

 

(d)          Pledgor
also authorizes Lender, at any time and from time to time, to execute, in connection with the sale provided for in Sections
9 or 10 hereof, any endorsements, assignments or other instruments of conveyance or transfer with respect to the Collateral.

 

(e)          The
powers conferred on Lender hereunder are solely to protect Lender’s interest in the Collateral and shall not impose any duty
upon Lender to exercise any such powers. Lender shall be accountable only for amounts that it actually receives as a result of
the exercise of such powers, and neither it nor any of its officers, directors, employees or Lenders shall be responsible to Pledgor
for any act or failure to act hereunder, except for its or their gross negligence or willful misconduct.

 

(f)          If
Pledgor fails to perform or comply with any of its agreements contained herein and Lender, as provided for by the terms of this
Agreement, shall itself perform or comply, or otherwise cause performance or compliance, with such agreement, the reasonable expenses
of Lender incurred in connection with such performance or compliance, together with interest at the Default Rate if such expenses
are not paid on demand, shall be payable by Pledgor to Lender on demand and shall constitute obligations secured hereby.

 

9.             Remedies.
(a) If an Event of Default shall occur and be continuing, Lender may, in addition to all other rights and remedies granted in this
Agreement and in any other instrument or agreement securing, evidencing or relating to the Debt:

 

(i)   exercise all rights and
remedies of a secured party under the (whether or not said Code is in effect in the jurisdiction where the rights and remedies
are asserted) and such additional rights and remedies to which a secured party is entitled under the laws in effect in any jurisdiction
where any rights and remedies hereunder may be asserted, including, without limitation, the right, to the maximum extent permitted
by law, to exercise all voting, consensual and other powers of ownership pertaining to the Collateral as if Lender were the sole
and absolute owner thereof (and Pledgor agrees to take all such action as may be appropriate to give effect to such right);

 

(ii)   make any reasonable
compromise or settlement deemed desirable with respect to any of the Collateral and may extend the time of payment, arrange for
payment in installments, or otherwise modify the terms of, any of the Collateral; and

 

(iii)   in its discretion,
in its name or in the name of Pledgor or otherwise, demand, sue for, collect, direct payment of or receive any money or property
at any time payable or receivable on account of or in exchange for any of the Collateral, but shall be under no obligation to do
so.

 

    	 	11	 

     

    

 

(b)   Without limiting the
generality of the foregoing, Lender, upon the occurrence and during the continuance of an Event of Default, without demand of performance
or other demand, presentment, protest, advertisement or notice of any kind (except any notice required by law referred to below
or otherwise required hereby) to or upon Issuer, Pledgor or any other Person (all and each of which demands, presentments, protests,
advertisements and notices, or other defenses, are hereby waived to the extent permitted under applicable law), may in such circumstances
forthwith collect, receive, appropriate and realize upon the Pledged Collateral, or any part thereof, and/or may forthwith sell,
assign, give option or options to purchase or otherwise dispose of and deliver the Collateral or any part thereof (or contract
to do any of the foregoing), in one or more parcels at public or private sale or sales, in the over-the-counter market, at any
exchange, broker’s board or office of Lender or elsewhere upon such terms and conditions as it may deem advisable and at
such prices as it may deem best in its sole discretion, for cash or on credit or for future delivery without assumption of any
credit risk. Upon the occurrence and during the continuance of an Event of Default, Lender shall have the right, without notice
or publication, to adjourn any public or private sale or cause the same to be adjourned from time to time by announcement at the
time and place fixed for such sale, and any such sale may be made at any time or place to which the same may be adjourned without
further notice. Lender shall have the right upon any such public sale or sales, and, to the extent permitted by law, upon any such
private sale or sales, to purchase the whole or any part of the Collateral so sold, free of any right or equity of redemption of
Pledgor, which right or equity of redemption is hereby waived or released. Lender shall apply any Proceeds from time to time held
by it and the net proceeds of any such collection, recovery, receipt, appropriation, realization or sale, after deducting all reasonable
costs and expenses of every kind incurred therein or incidental to the care or safekeeping of any of the Collateral or in any way
relating to the Collateral or the rights of Lender hereunder, including, without limitation, reasonable attorneys’ fees and
disbursements, to the payment in whole or in part of the Debt, in such order as Lender may elect, and only after such application
and after the payment by Lender of any other amount required by any provision of law, including, without limitation, Sections 9-610
and 9-615 of the Code, shall Lender be required to account for the surplus, if any, to Pledgor. To the extent permitted by applicable
law, Pledgor waives all claims, damages and demands it may acquire against Lender arising out of the exercise by Lender of any
of its rights hereunder, except for any claims, damages and demands it may have against Lender arising from the willful misconduct
or gross negligence of Lender or its affiliates, or any agents or employees of the foregoing. If any notice of a proposed sale
or other disposition of Collateral shall be required by law, such notice shall be deemed reasonable and proper if given at least
ten (10) days before such sale or other disposition.

 

(c)    Notwithstanding anything
herein to the contrary, if an Event of Default shall be continuing, Lender shall be entitled to exercise its rights under Section
8 hereof to register the Pledged Securities in the name of Lender or its nominee (if not already so registered) or Section
9 hereof to collect, receive, appropriate and realize upon the Collateral only upon the expiration of a period of ten (10)
business days commencing on the date on which notice of such intention to exercise any of such rights shall have been given by
Lender to Pledgor in accordance with Section 18(e), which notice may, at Lender’s option, be included within any notice furnished
by Lender to Pledgor under Section 10.6 of the Loan Agreement.

 

    	 	12	 

     

    

 

(d)   The rights, powers,
privileges and remedies of Lender under this Agreement are cumulative and shall be in addition to all rights, powers, privileges
and remedies available to Lender at law or in equity. All such rights, powers and remedies shall be cumulative and may be exercised
successively or concurrently without impairing the rights of Lender hereunder.

 

10.          Private
Sales. (a)    Pledgor recognizes that Lender may be unable to effect a public sale of any or all of the Pledged Securities,
by reason of certain prohibitions contained in the Securities Act of 1933 (the “Securities Act”), as amended,
and applicable state securities laws or otherwise, and may be compelled to resort to one or more private sales thereof to a restricted
group of purchasers which will be obliged to agree, among other things, to acquire such securities for their own account for investment
and not with a view to the distribution or resale thereof. Pledgor acknowledges and agrees that any such private sale may result
in prices and other terms less favorable to Lender than if such sale were a public sale and, notwithstanding such circumstances,
agrees that any such private sale shall not be deemed by Pledgor to have been made in a commercially unreasonable manner solely
by virtue of being a private sale. Lender shall be under no obligation to delay a sale of any of the Pledged Securities for the
period of time necessary to permit Issuer or Pledgor to register such securities for public sale under the Securities Act, or under
applicable state securities laws, even if Issuer or Pledgor would agree to do so.

 

(b)          After
and during the continuation of an Event of Default, Pledgor further shall use its reasonable efforts to do or cause to be done
all such other acts as may be reasonably necessary to make any sale or sales of all or any portion of the Pledged Securities pursuant
to this Section 10 valid and binding and in compliance with any and all other requirements of applicable law. Pledgor further
agrees that a breach of any of the covenants contained in this Section 10 will cause irreparable injury to Lender, that
Lender has no adequate remedy at law in respect of such breach and, as a consequence, that each and every covenant contained in
this Section 10 shall be specifically enforceable against Pledgor, and Pledgor hereby waives and agrees not to assert any
defenses against an action for specific performance of such covenants except for a defense that no Event of Default has occurred
and is continuing under the Loan Agreement.

 

(c)           Lender
shall not incur any liability as a result of the sale of any Collateral, or any part thereof, at any private sale conducted in
a commercially reasonable manner in accordance with applicable law, it being agreed that some or all of the Collateral is or may
be of one or more types that threaten to decline speedily in value and that are not customarily sold in a recognized market. Pledgor
hereby waives any claims against Lender arising by reason of the fact that the price at which any of the Collateral may have been
sold at such a private sale was less than the price which might have been obtained at a public sale or was less than the aggregate
amount of the Debt, even if Lender accepts the first offer received and does not offer any Collateral to more than one offeree,
provided that Lender has acted in a commercially reasonable manner in conducting such private sale in accordance with applicable
law.

 

    	 	13	 

     

    

 

11.            Limitation
on Duties Regarding Collateral. Lender’s sole duty with respect to the custody, safekeeping and physical preservation
of the Collateral in its possession, under Section 9-207 of the Code or otherwise, shall be to deal with it in the same manner
as Lender deals with similar securities and property for its own account. Neither Lender nor any of its directors, officers, employees
or agents shall be liable for failure to demand, collect or realize upon any of the Collateral or for any delay in doing so or
shall be under any obligation to sell or otherwise dispose of any Collateral upon the request of Pledgor or otherwise; provided
that Lender’s actions or failure to act do not amount to gross negligence or willful misconduct.

 

12.            Financing
Statements; Other Documents. Pledgor hereby authorizes Lender to file UCC-1 Financing Statements and amendments thereto
(“UCC-1 Financing Statements”) as Lender shall reasonably determine with respect to the Collateral, including,
without limitation, one or more financing statements describing the collateral covered thereby as “all assets or personal
property of the debtor” or words of similar effect. Pledgor agrees to deliver any other document or instrument which Lender
may reasonably request with respect to the Collateral for the purposes of obtaining or preserving the full benefits of this Agreement
and of the rights and powers herein granted. Without limiting the generality of the foregoing, Pledgor hereby authorizes the filing
of UCC-1 Financing Statements (and amendments of financing statements and continuation statements) that name the Pledgor as debtor
and the Lender as secured party and that cover all personal property or all assets of the Pledgor. Pledgor also hereby ratifies
the filing of any such UCC-1 Financing Statements (or amendments of financing statements or continuation statements) that were
filed prior to the execution hereof.

 

13.            Attorney-in-Fact.
Without limiting any rights or powers granted by this Agreement to Lender, upon the occurrence and during the continuance of an
Event of Default as a result of which Lender has accelerated the Maturity Date, Lender is hereby appointed, which appointment as
attorney-in-fact is irrevocable and coupled with an interest, the attorney-in-fact of Pledgor for the purpose of carrying out the
provisions of this Agreement and taking any action and executing any instruments which Lender may deem necessary or advisable during
the continuance of an Event of Default to accomplish the purposes hereof including, without limitation:

 

(a)           to
ask, demand, collect, sue for, recover, compromise, receive and give acquittance and receipts for moneys due and to become due
under or in respect of any of the Collateral;

 

(b)           to
receive, endorse and collect any drafts or other instruments, documents and chattel paper in connection with clause (a) above;

 

(c)    
      to file any claims or take any action or institute any proceedings that the Lender may
deem necessary or desirable for the collection of any of the Collateral or otherwise to enforce the rights of Lender, with
respect to any of the Collateral; and

 

    	 	14	 

     

    

 

(d)           to execute, in connection with the sale provided for in Sections 9 or 10 hereof,
any endorsement, assignments, or other instruments of conveyance or transfer with respect to the Collateral.

 

If so requested by Lender,
Pledgor shall ratify and confirm any such sale or transfer by executing and delivering to Lender at Pledgor’s expense all
proper deeds, bills of sale, instruments of assignment, conveyance of transfer and releases as may be designated in any such request.
Following the repayment of the Debt, Lender shall execute such documentation as is reasonable and customary to evidence the termination
of the power to act as attorney-in-fact for Pledgor.

 

14.          Additional
Covenants of Pledgor Relating to Affirmative Covenants of Issuer. Pledgor covenants and agrees with Lender that, from and
after the date of this Agreement until the Debt (exclusive of any indemnification or other obligations which are expressly stated
in any of the Loan Documents to survive satisfaction of the Note) is paid in full, (i) Pledgor shall take and shall cause Issuer
to take any and all actions either necessary or reasonably requested by Lender to ensure their complete compliance with Section
4.1.30 of the Mortgage Loan Agreement, (ii) Issuer shall take such actions as are required by or to comply with the terms of the
Mortgage Loan Documents, in each case, applicable to it, and shall not take any actions that violate any such documents, and (iii)
Issuer shall not apply amounts disbursed to the Issuer pursuant to the requirements of the Mortgage Loan in a manner contrary to
the requirements of the Mortgage Loan Documents.

 

15.          Additional
Covenants of Pledgor Relating to Negative Covenants of Issuer. Pledgor covenants and agrees with Lender that, from and
after the date of this Agreement until the Debt (exclusive of any indemnification or other obligations which are expressly stated
in any of the Loan Documents to survive satisfaction of the Note) is paid in full, Pledgor shall take and shall cause Issuer to
take any action to ensure Issuer’s compliance with Section 5.2 of the Mortgage Loan Agreement.

 

16.          Intentionally
Omitted.

 

17.          Indemnity.
Pledgor agrees to indemnify Lender from and against any and all losses, damages (but not special, punitive, incidental or consequential
damages), costs or expenses of any kind or nature (including reasonable attorney’s fees) of Lender resulting from the enforcement
of this Agreement, other than such losses, damages, costs or expenses resulting from Lender’s gross negligence or willful
misconduct.

 

18.          Miscellaneous.

 

(a)           Severability.
Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition
or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

    	 	15	 

     

    

 

(b)          Headings.
The headings used in this Agreement are for convenience of reference only and are not to affect the construction hereof or be taken
into consideration in the interpretation hereof.

 

(c)          No
Waiver; Cumulative Remedies. Lender shall not by any act (except by a written instrument pursuant to Section 18(d)
hereof), delay, indulge, omit or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any
default or in any breach of any of the terms and conditions hereof. No failure to exercise, nor any delay in exercising, on the
part of Lender, any right, power or privilege hereunder shall operate as a waiver thereof. No single or partial exercise of any
right, power or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power
or privilege. A waiver by Lender of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right
or remedy which Lender would otherwise have on any future occasion. The rights, remedies, powers and privileges herein provided
are cumulative, may be exercised singly or concurrently and are not exclusive of any rights, remedies, powers or privileges provided
by law.

 

(d)          Waivers
and Amendments; Successors and Assigns. None of the terms or provisions of this Agreement may be waived, amended, or otherwise
modified except by a written instrument executed by the party against which enforcement of such waiver, amendment, or modification
is sought. This Agreement shall be binding upon and shall inure to the benefit of Pledgor and the respective permitted successors
and assigns of Pledgor and shall inure to the benefit of Lender and its successors and assigns; provided no Pledgor shall have
any right to assign its rights hereunder, and any attempted assignment by Pledgor shall be null and void. The rights of Lender
under this Agreement shall automatically be transferred to any permitted transferee to which Lender transfers the Note and Loan
Agreement.

 

(e)          Notices.
All notices, consents, approvals and requests required or permitted hereunder shall be delivered in accordance with Section 10.6
of the Loan Agreement and the following:

 

	 	If to Pledgor:	c/o New York REIT, Inc.
	 	 	405 Park Avenue
	 	 	New York, New York 10022
	 	 	Attention:  Legal Department
	 	 	 
	 	with a copy to:	Arnold & Porter LLP
	 	 	399 Park Avenue
	 	 	New York, NY 10022
	 	 	Attention:  John Busillo, Esq.

 

    	 	16	 

     

    

 

(f)           Governing
Law.

 

(i)          THIS
AGREEMENT WAS NEGOTIATED IN THE STATE OF NEW YORK, AND MADE BY PLEDGOR AND ACCEPTED BY LENDER IN THE STATE OF NEW YORK, AND THE
PROCEEDS OF THE NOTE SECURED HEREBY WERE DISBURSED FROM THE STATE OF NEW YORK, WHICH STATE THE PARTIES AGREE HAS A SUBSTANTIAL
RELATIONSHIP TO THE PARTIES AND TO THE UNDERLYING TRANSACTION EMBODIED HEREBY, AND IN ALL RESPECTS, INCLUDING, WITHOUT LIMITING
THE GENERALITY OF THE FOREGOING, MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS AGREEMENT AND THE OBLIGATIONS ARISING
HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE
AND PERFORMED IN SUCH STATE AND ANY APPLICABLE LAW OF THE UNITED STATES OF AMERICA. TO THE FULLEST EXTENT PERMITTED BY LAW, PLEDGOR
HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS AGREEMENT
AND THE NOTE, AND THIS AGREEMENT AND THE NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK INCLUDING SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

 

(ii)         ANY
LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR PLEDGOR ARISING OUT OF OR RELATING TO THIS AGREEMENT MAY AT LENDER’S OPTION
BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN THE CITY OF NEW YORK, COUNTY OF NEW YORK, PURSUANT TO SECTION 5-1402 OF THE NEW
YORK GENERAL OBLIGATIONS LAW, AND PLEDGOR WAIVES ANY OBJECTIONS WHICH IT MAY NOW OR HEREAFTER HAVE BASED ON VENUE AND/OR FORUM
NON CONVENIENS OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND PLEDGOR HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT
IN ANY SUIT, ACTION OR PROCEEDING. PLEDGOR DOES HEREBY DESIGNATE AND APPOINT:

 

CORPORATION SERVICE COMPANY (CSC)

1180 AVENUE OF THE AMERICAS, SUITE 210

NEW YORK, NEW YORK 10036

 

    	 	17	 

     

    

 

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

 

(g)          Agents.
Lender may employ agents and attorneys-in-fact in connection herewith and shall not be responsible for their actions except for
the gross negligence or willful misconduct of any such agents or attorneys-in-fact selected by it in good faith. Each Lender, by
the Loan Agreement, has irrevocably appointed and authorized Agent to take such action as contractual representative on such Lender’s
behalf and to exercise such powers under this Agreement as are specifically delegated to Lender by the terms hereof and of the
Loan Agreement, together with such powers as are reasonably incidental thereto, all pursuant to and as more particularly set forth
in the Loan Agreement, which is incorporated herein by reference. All references to “Lender” herein shall mean “Lender”
or “Agent on behalf of Lender”, as the context requires.

 

(h)          Irrevocable
Authorization and Instruction to Issuer. Pledgor hereby authorizes and instructs Issuer and any servicer of the Loan to
comply with any instruction received by it from Lender in writing that (i) states that an Event of Default has occurred and is
continuing and (ii) is otherwise in accordance with the terms of this Agreement, without any other or further instructions from
Pledgor, and Pledgor agrees that Issuer and any servicer shall be fully protected in so complying.

 

(i)          Counterparts.
This Agreement may be executed in any number of counterparts and all the counterparts taken together shall be deemed to constitute
one and the same instrument.

 

    	 	18	 

     

    

 

(j)          WAIVER
OF JURY TRIAL. PLEDGOR AND LENDER EACH HEREBY AGREES TO WAIVE ITS RIGHTS TO A JURY TRIAL ON ANY CLAIM OR CAUSE OF ACTION BASED
UPON OR ARISING OUT OF THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, OR ANY DEALINGS BETWEEN PLEDGOR AND LENDER.
THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE
TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND
ALL OTHER COMMON LAW AND STATUTORY CLAIMS. PLEDGOR AND LENDER EACH ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO LENDER
TO ENTER INTO A BUSINESS RELATIONSHIP WITH PLEDGOR. PLEDGOR REPRESENTS AND WARRANTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL
COUNSEL, AND THAT SUCH WAIVER IS KNOWINGLY AND VOLUNTARILY GIVEN FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE,
MEANING THAT IT MAY NOT BE MODIFIED, EITHER ORALLY OR IN WRITING, AND THE WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS,
REPLACEMENTS, REAFFIRMATIONS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT, OR ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO
THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS CONCLUSIVE EVIDENCE
OF A WRITTEN CONSENT TO A TRIAL BY THE COURT.

 

(k)          Acknowledgment
and Consent. Pledgor shall cause Issuer to execute and deliver to Lender an Acknowledgment and Consent with respect to
this Agreement in the form of Exhibit C attached hereto in connection with the execution and delivery of this Agreement.

 

(l)          Joint
and Several Liability. If Pledgor consists of one or more person or party, the obligations and liabilities of each such
person or party hereunder shall be joint and several.

 

19.           Irrevocable
Proxy. (a) Solely with respect to Article 8 Matters (hereinafter defined), Pledgor hereby irrevocably grants and appoints
Lender, from the date of this Agreement until the termination of this Agreement in accordance with its terms, as Pledgor’s
true and lawful proxy, for and in Pledgor’s name, place and stead to vote the Pledged Securities, whether directly or indirectly,
beneficially or of record, now owned or hereafter acquired, with respect to Article 8 Matters. The proxy granted and appointed
in this Section 19(a) shall include the right to sign Pledgor’s name to any consent, certificate or other document
relating to an Article 8 Matter and the Pledged Securities that applicable law may permit or require, to cause the Pledged Securities
to be voted in accordance with the preceding sentence. Pledgor hereby represents and warrants that there are no other proxies and
powers of attorney with respect to an Article 8 Matter and the Pledged Securities that Pledgor may have granted or appointed that
are in still in effect as of the date hereof. Other than as permitted herein or in the Loan Agreement, Pledgor will not give a
subsequent proxy or power of attorney or enter into any other voting agreement with respect to the Pledged Securities with respect
to any Article 8 Matter and any attempt to do so with respect to an Article 8 Matter shall be void and of no effect.

 

    	 	19	 

     

    

 

(b)          As
used herein, “Article 8 Matter” means any action, decision, determination or election by Issuer or their member(s)
that its membership interests or other equity interests, or any of them, cease to be, a “security” as defined in and
governed by Article 8 of the Code, and all other matters directly related to any such action, decision, determination or election.

 

(c)          The
proxies and powers granted by Pledgor pursuant to this Agreement are coupled with an interest and are given to secure the performance
of the Pledgor’s obligations under the Loan Documents.

 

[SIGNATURES COMMENCE ON THE FOLLOWING PAGE]

 

    	 	20	 

     

    

 

IN WITNESS WHEREOF,
the parties have caused this Agreement to be executed by their duly authorized officers as of the date set forth above.

 

MEZZANINE BORROWER:

 

ARC MEZZ NY22936001, LLC, a
Delaware limited liability company

 

By: New York Recovery Operating
Partnership, L.P., a Delaware limited partnership

 

By: New York REIT, Inc.,
a Maryland corporation

 

By: /s/ Michael Ead                                  

Name:Michael Ead

Title:Authorized Signatory

 

ARC MEZZ NY21618001, LLC, a
Delaware limited liability company

 

By: New York Recovery Operating
Partnership, L.P., a Delaware limited partnership

 

By: New York REIT, Inc.,
a Maryland corporation

 

By: /s/ Michael Ead                                  

Name:Michael Ead

Title:Authorized Signatory

 

ARC NY333W3401 MEZZ, LLC, a
Delaware limited liability company

 

By: New York Recovery Operating
Partnership, L.P., a Delaware limited partnership

 

By: New York REIT, Inc.,
a Maryland corporation

 

By: /s/ Michael Ead                                  

Name:Michael Ead

Title:Authorized Signatory

 

    
[Signature Page to Pledge and Security Agreement (Mortgage Borrower)]

     

    

 

ARC NY350BL001 MEZZ, LLC, a
Delaware limited liability company

 

By: New York Recovery Operating
Partnership, L.P., a Delaware limited partnership

 

By: New York REIT, Inc.,
a Maryland corporation

 

By: /s/ Michael Ead                                  

Name:Michael Ead

Title:Authorized Signatory

 

ARC NYBLKST002 MEZZ, LLC, a
Delaware limited liability company

 

By: New York Recovery Operating
Partnership, L.P., a Delaware limited partnership

 

By: New York REIT, Inc.,
a Maryland corporation

 

By: /s/ Michael Ead                                  

Name:Michael Ead

Title:Authorized Signatory

 

ARC NYCTGRG001 MEZZ, LLC, a
Delaware limited liability company

 

By: New York Recovery Operating
Partnership, L.P., a Delaware limited partnership

 

By: New York REIT, Inc.,
a Maryland corporation

 

By: /s/ Michael Ead                                  

Name:Michael Ead

Title:Authorized Signatory

 

    
[Signature Page to Pledge and Security Agreement (Mortgage Borrower)]

     

    

 

ARC NYWSHST001 MEZZ, LLC, a
Delaware limited liability company

 

By: New York Recovery Operating
Partnership, L.P., a Delaware limited partnership

 

By: New York REIT, Inc.,
a Maryland corporation

 

By: /s/ Michael Ead                                  

Name:Michael Ead

Title:Authorized Signatory

 

ARC NYGRNAV001 MEZZ, LLC, a
Delaware limited liability company

 

By: New York Recovery Operating
Partnership, L.P., a Delaware limited partnership

 

By: New York REIT, Inc.,
a Maryland corporation

 

By: /s/ Michael Ead                                  

Name:Michael Ead

Title:Authorized Signatory

 

ARC NYW42ST001 MEZZ, LLC, a
Delaware limited liability company

 

By: New York Recovery Operating
Partnership, L.P., a Delaware limited partnership

 

By: New York REIT, Inc.,
a Maryland corporation

 

By: /s/ Michael Ead                                  

Name:Michael Ead

Title:Authorized Signatory

 

    
[Signature Page to Pledge and Security Agreement (Mortgage Borrower)]

     

    

 

ARC NY120W5701 MEZZ, LLC, a
Delaware limited liability company

 

By: New York Recovery Operating
Partnership, L.P., a Delaware limited partnership

 

By: New York REIT, Inc.,
a Maryland corporation

 

By: /s/ Michael Ead                                  

Name:Michael Ead

Title:Authorized Signatory

 

ARC NY24549W17 MEZZ, LLC, a
Delaware limited liability company

 

By: New York Recovery Operating
Partnership, L.P., a Delaware limited partnership

 

By: New York REIT, Inc.,
a Maryland corporation

 

By: /s/ Michael Ead                                  

Name:Michael Ead

Title:Authorized Signatory

 

50 VARICK MEZZ LLC, a Delaware
limited liability company

 

By: New York Recovery Operating
Partnership, L.P., a Delaware limited partnership

 

By: New York REIT, Inc.,
a Maryland corporation

 

By: /s/ Michael Ead                                  

Name:Michael Ead

Title:Authorized Signatory

 

    
[Signature Page to Pledge and Security Agreement (Mortgage Borrower)]

     

    

 

AGENT:

 

COLUMN FINANCIAL, INC., a Delaware
corporation

 

By: /s/ N. Dante LaRocca                                      

Name:N. Dante LaRocca

Title:Authorized Signatory

 

    
[Signature Page to Pledge and Security Agreement (Mortgage Borrower)]

     

    

 

SCHEDULE I

To Pledge Agreement

 

MORTGAGE BORROWER

 

ARC NY22936001, LLC, a Delaware limited liability company

ARC NY21618001, LLC, a Delaware limited liability company

ARC NY333W3401, LLC, a Delaware limited liability company

ARC NY350BL001, LLC, a Delaware limited liability company

ARC NYBLKST002, LLC, a Delaware limited liability company

ARC NYCTGRG001, LLC, a Delaware limited liability company

ARC NYWSHST001, LLC, a Delaware limited liability company

ARC NYGRNAV001, LLC, a Delaware limited liability company

ARC NYW42ST001, LLC, a Delaware limited liability company

ARC NY120W5701, LLC, a Delaware limited liability company

ARC NY24549W17, LLC, a Delaware limited liability company

50 Varick LLC, a New York limited liability company

 

     

     

    

 

SCHEDULE II

To Pledge Agreement

 

DESCRIPTION OF PLEDGED SECURITIES

 

	Owner	 	Issuer	 	Class of Membership 
 Interest/Stock Certificate 
 Number	 	Percentage
 of Interests	 
	ARC NY120W5701 TRS MEZZ, LLC	 	ARC NY120W5701 TRS MEZZ II, LLC	 	Limited liability company interests	 	 	100	%

 

     

     

    

 

SCHEDULE III

To Pledge Agreement

 

BORROWER

 

ARC Mezz NY22936001, LLC, a Delaware limited liability company

ARC Mezz NY21618001, LLC, a Delaware limited liability company

ARC NY333W3401 Mezz, LLC, a Delaware limited liability company

ARC NY350BL001 Mezz, LLC, a Delaware limited liability company

ARC NYBLKST002 Mezz, LLC, a Delaware limited liability company

ARC NYCTGRG001 Mezz, LLC, a Delaware limited liability company

ARC NYWSHST001 Mezz, LLC, a Delaware limited liability company

ARC NYGRNAV001 Mezz, LLC, a Delaware limited liability company

ARC NYW42ST001 Mezz, LLC, a Delaware limited liability company

ARC NY120W5701 Mezz, LLC, a Delaware limited liability company

ARC NY24549W17 Mezz, LLC, a Delaware limited liability company

50 Varick Mezz LLC, a Delaware limited liability company

 

     

     

    

 

EXHIBIT A

 

INSTRUCTION TO REGISTER PLEDGE

FOR ISSUER

 

[          ],
2016

 

To:         ARC NY120W5701 TRS MEZZ II, LLC

405 Park Avenue

New York, New York 10022

Attention: Michael Ead

 

In accordance with the
requirements of that certain Mezzanine Pledge and Security Agreement (Operating Pledgor), dated as the date hereof (as amended,
supplemented or otherwise modified from time to time, the “Pledge Agreement”; defined terms used herein as therein
defined), made by ARC NY120W5701 TRS MEZZ, LLC, a Delaware limited liability company (“Pledgor”), in
favor of COLUMN FINANCIAL, INC., a Delaware corporation, as agent for Lender (together with its successors and assigns,
“Agent”), you are hereby instructed, notwithstanding your and our understanding that the limited liability company
interests, partnership interests and shares of stock described below are a “security” under the Uniform Commercial
Code, as a precaution in the event that such interest was nevertheless held not to be a security and to better assure the perfection
of the security interest of Lender in such interests, to register the pledge of the following interests in the name of Lender as
follows:

 

The 100% limited liability
company interests of the undersigned in the Issuer as listed on Schedule II to the Pledge Agreement, including, without limitation,
all of the following property now owned or at any time hereafter acquired by Pledgor or in which Pledgor now has or at any time
in the future may acquire any right, title or interest:

 

(a)          all
additional limited liability company or partnership interests or shares of stock of, or other equity interests in, the Issuer and
options, warrants, and other rights hereafter acquired by Pledgor in respect of such limited liability company interests, partnership
interests, shares of stock or other equity interests, as applicable (whether in connection with any capital increase, recapitalization,
reclassification, or reorganization of the Issuer or otherwise) (all such limited liability company interests, partnership interests,
shares of stock and other equity interests, including those described on Schedule II to the Pledge Agreement, and all such options,
warrants and other rights being hereinafter collectively referred to as the “Pledged Securities”);

 

(b)          all
certificates, instruments, or other writings representing or evidencing the Pledged Securities, and all accounts and general intangibles
arising out of, or in connection with, the Pledged Securities;

 

    Exhibit A

     

    

  

(c)          any
and all moneys or property due and to become due to Pledgor nor or in the future in respect of the Pledged Securities, or to which
Pledgor may now or in the future be entitled to in its capacity as a member of the Issuer, whether by way of a dividend, distribution,
return of capital, or otherwise;

 

(d)          all
other claims which Pledgor now has or may in the future acquire in its capacity as a member of the Issuer against the Issuer and
its property;

 

(e)          all
rights of Pledgor under the operating agreement of the Issuer (and all other agreements, if any, to which Pledgor is a party from
time to time which relate to its ownership of the Pledged Securities), including, without limitation, all voting and consent rights
of Pledgor arising thereunder or otherwise in connection with Pledgor’s ownership of the Pledged Securities; and

 

(f)          to
the extent not otherwise included, all Proceeds of any or all of the foregoing.

 

You are hereby further
authorized and instructed to execute and deliver to Lender a Confirmation Statement and Instruction Agreement, substantially in
the form of Exhibit B to the Pledge Agreement and, to the extent provided more fully therein, to comply with the instructions of
Lender in respect of the Pledged Collateral without further consent of, or notice to, the undersigned. Notwithstanding anything
in this paragraph, this instruction shall not be construed as expanding the rights of Lender to give instructions with respect
to the Pledged Collateral beyond such rights set forth in the Pledge Agreement.

 

    Exhibit A

     

    

  

	 	Very truly yours,
	 	 
	 	ARC NY120W5701 TRS MEZZ, LLC, a Delaware limited liability company
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    Exhibit A

     

    

  

	 	AGENT:
	 	 
	 	COLUMN FINANCIAL, INC., a Delaware corporation
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    Exhibit A

     

    

  

EXHIBIT B

 

CONFIRMATION STATEMENT AND INSTRUCTION
AGREEMENT FOR ISSUER

 

[         ],
2016

 

To:         Column Financial, Inc.

11 Madison Avenue

New York, New York 10010

Attention: N. Dante LaRocca and Sarah Nelson

 

Pursuant to the requirements
of that certain Mezzanine Pledge and Security Agreement (Operating Pledgor), dated the date hereof (as amended, supplemented or
otherwise modified from time to time, the “Pledge Agreement”; defined terms used herein as therein defined),
made by ARC NY120W5701 TRS MEZZ, LLC, a Delaware limited liability company (“Pledgor”), in favor of COLUMN
FINANCIAL, INC., a Delaware corporation, as agent for Lender (together its successors and assigns, “Agent”),
this Confirmation Statement and Instruction Agreement relates to the Pledged Securities issued by Issuer.

 

The Pledged Securities
are not (i) “investment company securities” (within the meaning of Section 8-103 of the Code) or (ii) dealt in or traded
on securities exchanges or in securities markets.

 

The Pledged Securities
are “securities” (within the meaning of Sections 8-102(a)(15) and 8-103 of the Code), and therefore, for purposes of
perfecting the security interest of Lender therein, the Issuer agrees as follows:

 

On the date hereof the
registered owner of 100% of the limited liability company interests of ARC NY120W5701 TRS MEZZ II, LLC is ARC NY120W5701 TRS MEZZ,
LLC;

 

The registered pledgee
of the Pledged Securities is:

 

Column Financial, Inc.

Taxpayer I.D. Number: 58-2061106

 

There are no liens of the
undersigned on the Pledged Securities or any adverse claims thereto for which the Issuer has a duty under Section 8-403 of the
Code other than the liens of Lender. The Issuer has by book-entry registered the Pledged Securities in the name of the registered
pledgee on or before the date hereof. No other pledge is currently registered on the books and records of the Issuer with respect
to the Pledged Securities.

 

    Exhibit B

     

    

  

Until the Debt is paid
in full, the Issuer agrees to: (i) to the extent provided for in the Pledge Agreement and other Loan Documents, comply with the
instructions of Lender sent in accordance with Section 18(h) of the Pledge Agreement, without any further consent from Pledgor
or any other Person, in respect of the Pledged Securities; and (ii) disregard any request made by Pledgor or any other Person which
contravenes such instructions of Lender with respect to the Pledged Securities. Notwithstanding anything in this paragraph, this
Confirmation Statement and Instruction Agreement shall not be construed as expanding the rights of Lender to give instructions
with respect to the Pledged Securities beyond such rights set forth in the Pledge Agreement.

 

Dated: [          ],
2016

 

[Signatures follow on the next page]

 

    Exhibit B

     

    

  

	 	Very truly yours,
	 	 
	 	ARC NY120W5701 TRS MEZZ II, LLC, a Delaware limited liability company
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

[Signatures continue on
next Page]

 

    Exhibit B

     

    

  

ACKNOWLEDGED AND AGREED:

 

AGENT:

 

COLUMN FINANCIAL, INC.,

a Delaware corporation 

 

	By: 	 	 
	Name:	 
	Title:	 

 

    Exhibit B

     

    

   

EXHIBIT C

 

ACKNOWLEDGMENT AND CONSENT

 

Issuer hereby acknowledges
receipt of a copy of the Mezzanine Pledge and Security Agreement (Operating Pledgor) (the “Pledge Agreement”;
defined terms used herein as therein defined), dated as of December 20, 2016, made by ARC NY120W5701 TRS MEZZ, LLC, a Delaware
limited liability company (“Pledgor”) in favor of COLUMN FINANCIAL, INC., a Delaware corporation, as
agent for Lender (together with its successors and assigns, “Agent”), and agrees that Pledgor is bound thereby.
Issuer agrees to notify Lender promptly in writing of the occurrence of any of the events described in Section 5(a) of the Pledge
Agreement.

 

Dated as of [          ],
2016

 

[Signatures follow on next
page]

 

    Exhibit C

     

    

  

	 	ISSUER:
	 	 
	 	ARC NY120W5701 TRS MEZZ II, LLC
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

  

    Exhibit CExhibit 10.6

 

GUARANTY AGREEMENT

 

THIS GUARANTY
AGREEMENT (together with all extensions, renewals, modifications, substitutions and amendments hereof, this “Guaranty”)
is executed as of December 20, 2016, by New
York REIT, Inc., a Maryland corporation, having an address at 405 Park Avenue, New York, New York 10022 (together with
its permitted successors and assigns, “Guarantor”), for the benefit of COLUMN FINANCIAL, INC., a Delaware
corporation, having an address at 11 Madison Avenue, New York, New York 10010, as agent for the benefit of Lender (defined below)
(together with its successors and permitted assigns, in such capacity, “Agent”). Capitalized terms utilized
herein shall have the meaning as specified in the Loan Agreement (hereinafter defined), unless such term is otherwise specifically
defined herein.

 

WITNESSETH:

 

WHEREAS, pursuant
to the Note, the entities listed on Schedule I attached hereto (collectively, “Borrower”) have become
indebted, and may from time to time be further indebted, to Lender with respect to a loan in the original principal amount of FIVE
HUNDRED MILLION AND NO/100 DOLLARS ($500,000,000.00) (the “Loan”) made pursuant to that certain Loan Agreement
dated as of the date hereof among Borrower, Column Financial, Inc. a Delaware corporation (together with its successors and permitted
assigns, “Initial Lender”), and the other lenders party thereto from time to time (together with Initial Lender
and their respective successors and/or permitted assigns, individually and/or collectively as the context may require, “Lender”)
and Agent, and acknowledged and agreed to by ARC NY120W5701 TRS, LLC (“Operating Lessee”) (solely with respect
to certain terms and conditions specified therein) (as the same may be amended, restated, replaced, supplemented, or otherwise
modified from time to time, the “Loan Agreement”), which Loan is secured by, among other things, the Security
Instruments encumbering each Individual Property and the Pledge Agreement, granting Agent for the benefit of Lender a first priority
security interest in 100% of the direct equity interest in Operating Lessee, and is further evidenced, secured or governed by other
instruments and documents executed in connection with the Loan (together with the Note, the Loan Agreement, the Pledge Agreement
and the Security Instruments, collectively, the “Loan Documents”);

 

WHEREAS, Operating
Lessee is the operator of the Viceroy Property pursuant to the terms of the Operating Lease;

 

WHEREAS, Lender
is not willing to make the Loan, or otherwise extend credit, to Borrower unless Guarantor delivers this Guaranty for the benefit
of Lender and unconditionally guarantees payment and performance to Lender of the Guaranteed Obligations (as hereinafter defined);
and

 

WHEREAS, Guarantor
is the owner of a direct or indirect interest in Borrower, and Guarantor will directly benefit from Lender’s making the Loan
to Borrower.

 

NOW, THEREFORE,
as an inducement to Lender to make the Loan to Borrower, 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

 

NATURE
AND SCOPE OF GUARANTY

 

1.1           Guaranty
of Obligation. Guarantor hereby irrevocably and unconditionally guarantees to Agent for the benefit of Lender and its
successors and assigns the payment and performance of the Guaranteed Obligations as and when the same shall be due and
payable, whether by lapse of time, by acceleration of maturity or otherwise. Guarantor hereby irrevocably and unconditionally
covenants and agrees that it is liable for the Guaranteed Obligations as a primary obligor.

 

1.2           Definition
of Guaranteed Obligations. As used herein, the term “Guaranteed Obligations” means the prompt and
full payment when due, whether at stated maturity, by acceleration or otherwise, and performance of all obligations and
liabilities of Borrower under the Loan Agreement and other Loan Documents, including, without limitation, all obligations and
liabilities of Borrower pursuant to Section 9.4 of the Loan Agreement. Guarantor’s liability under this Guaranty is
effective regardless of whether Borrower has any personal liability for the Guaranteed Obligations and is not limited to the
original or outstanding principal balance of the Loan or the value of the Properties or the Collateral given as security for
the Loan. Notwithstanding anything to the contrary in this Guaranty, the Loan Agreement, the Note or any of the Loan
Documents, Lender may exercise its rights under Section 506(a), 506(b), 1111(b) or any other provisions of the
Bankruptcy Code to file a claim for the full amount of the Debt secured by the Security Instruments and the Pledge Agreement
or to require that all Properties and Collateral shall continue to secure all of the Debt owing to Lender in accordance with
the Loan Documents.

 

1.3           Nature
of Guaranty. Guarantor hereby acknowledges and agrees that this Guaranty (a) is an irrevocable, absolute, continuing
guaranty of payment and performance and not a guaranty of collection, (b) 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 (c) shall survive the foregoing and shall not merge with any resulting foreclosure deed, deed in
lieu or similar instrument (if any) subject to Section 5.2 hereof. Guarantor acknowledges that there are no conditions
precedent to the effectiveness of this Guaranty, and that this Guaranty is in full force and effect and is binding on
Guarantor as of the Closing Date, regardless of whether Lender obtains collateral or any guaranties from others or takes any
other action contemplated by this Guaranty. 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 (if
Guarantor is a natural person) Guarantor’s death (in which event this Guaranty shall be binding upon Guarantor’s
estate and Guarantor’s legal representatives and heirs). The fact that at any time or from time to time the Guaranteed
Obligations may be increased or reduced shall not release or discharge the obligation of Guarantor to Lender with respect to
the Guaranteed Obligations. This Guaranty may be enforced by Lender and any subsequent holder of the Note and shall not be
discharged by the assignment or negotiation of all or part of the Note.

 

    	 	-2-	 

     

    

  

1.4           Guaranteed
Obligations Not Reduced by Offset. The Guaranteed Obligations and the liabilities and obligations of Guarantor to
Lender 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 party (other than the defense of payment), against Lender or against payment of the
Guaranteed Obligations, whether such offset, claim or defense arises in connection with the Guaranteed Obligations (or the
transactions creating the Guaranteed Obligations) or otherwise.

 

1.5           Payment
By Guarantor. If all or any part of the Guaranteed Obligations shall not be punctually paid when due (and such
failure continues beyond the expiration of any applicable notice and cure period under the Loan Documents), whether at
demand, maturity, acceleration or otherwise, Guarantor shall, immediately upon demand by Lender, 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 due on the
Guaranteed Obligations to Lender at Lender’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, and may be made from time to time
with respect to the same or different items of Guaranteed Obligations. Such demand shall be deemed made, given and received
in accordance with the notice provisions hereof.

 

1.6           No
Duty To Pursue Others. It shall not be necessary for Lender (and Guarantor hereby waives any rights which Guarantor
may have to require Lender), in order to enforce the obligations of Guarantor hereunder, first to (a) institute suit or
exhaust its remedies against Borrower or others liable on the Loan or the Guaranteed Obligations or any other person, (b)
enforce Lender’s rights against any collateral which shall ever have been given to secure the Loan, (c) enforce
Lender’s rights against any other guarantors of the Guaranteed Obligations, (d) join Borrower or any others liable on
the Guaranteed Obligations in any action seeking to enforce this Guaranty, (e) exhaust any remedies available to Lender
against any collateral which shall ever have been given to secure the Loan, or (f) resort to any other means of obtaining
payment of the Guaranteed Obligations. Lender shall not be required to mitigate damages or take any other action to reduce,
collect or enforce the Guaranteed Obligations.

 

1.7           Waivers. Guarantor
agrees to the provisions of the Loan Documents, and hereby waives notice of: (a) any loans or advances made by Lender to
Borrower, (b) acceptance of this Guaranty, (c) any amendment or extension of the Note, the Loan Agreement or of any other
Loan Documents, (d) the execution and delivery by Borrower, Operating Lessee and 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 Properties, (e) the occurrence of any breach by Borrower or Operating Lessee under the Loan Documents
or an Event of Default, (f) Lender’s transfer or disposition of the Guaranteed Obligations, or any part thereof, (g)
the sale or foreclosure (or posting or advertising for sale or foreclosure) of any collateral for the Guaranteed Obligations,
(h) protest, proof of non-payment or default by Borrower or Operating Lessee, and (i) any other action at any time taken or
omitted by Lender, and, generally, all demands and notices of every kind in connection with this Guaranty, the Loan
Documents, any documents or agreements evidencing, securing or relating to any of the Guaranteed Obligations.

 

    	 	-3-	 

     

    

  

1.8           Payment
of Expenses. In the event that Guarantor shall breach any provisions of this Guaranty or fail to timely perform any
of its obligations hereunder, Guarantor shall, immediately upon demand by Lender, pay Lender all costs and expenses
(including court costs and reasonable attorneys’ fees) incurred by Lender in the enforcement hereof or the preservation
of Lender’s rights hereunder. The covenant contained in this Section 1.8 shall survive the payment and
performance of the Guaranteed Obligations.

 

1.9           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, Lender must rescind or restore any payment, or any part
thereof, received by Lender in satisfaction of the Guaranteed Obligations, as set forth herein, any prior release or
discharge from the terms of this Guaranty given to Guarantor by Lender shall be without effect, and this Guaranty shall
remain in full force and effect with respect to such rescinded or restored payment. It is the intention of Borrower and
Guarantor that Guarantor’s obligations hereunder shall not be discharged except by Guarantor’s performance of
such obligations and then only to the extent of such performance.

 

1.10         Waiver
of Subrogation, Reimbursement and Contribution. Notwithstanding anything to the contrary contained in this Guaranty,
Guarantor hereby unconditionally and irrevocably waives, releases and abrogates any and all rights it may now or hereafter
have under any agreement, at law or in equity (including, without limitation, any law subrogating the Guarantor to the rights
of Lender), to assert any claim against or seek contribution, indemnification or any other form of reimbursement from
Borrower or any other party liable for payment of any or all of the Guaranteed Obligations for any payment made by Guarantor
under or in connection with this Guaranty or otherwise while the Debt is outstanding.

 

1.11        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, transfer, devise, gift or bequest of Borrower or any interest in Borrower.

 

1.12        Financial
Covenants of Guarantor.

 

(a)           Guarantor
(i) shall keep and maintain complete and accurate books and records and (ii) as necessary to confirm compliance with the financial
covenants of Guarantor set forth in this Section 1.12, shall permit Lender and any authorized representatives of Lender
to have reasonable access to and to inspect and examine the books and records, any and all accounts, data and other documents of
Guarantor, at all reasonable times, during normal business hours.

 

(b)           Guarantor
hereby represents and warrants that, as of the date hereof, Guarantor is in compliance with the Guarantor Financial Covenants (as
hereinafter defined). At all times while the Debt remains unsatisfied, Guarantor shall comply with the Guarantor Financial Covenants.

 

    	 	-4-	 

     

    

  

(c)           During
the term hereunder, Guarantor shall deliver to Lender (a) within ninety (90) days after the end of each Fiscal Year of Borrower
(i) an Officer’s Certificate certifying as to the compliance of Guarantor with the Guarantor Financial Covenants and (ii)
financial statements audited by an independent certified public accountant, which shall include an annual balance sheet and profit
and loss statement of Guarantor, in the form provided to Lender in connection with the closing of the Loan or otherwise in form
reasonably approved by Lender, together with an Officer’s Certificate certifying that such annual financial statement presents
fairly the financial condition and the results of operations of Guarantor and that such financial statements have been prepared
in accordance with GAAP; and (b) within forty-five (45) days after the end of each calendar quarter, (i) an Officer’s Certificate
certifying as to the compliance of Guarantor with the Guarantor Financial Covenants and (ii) unaudited financial statements of
Guarantor, in the form provided to Lender in connection with the closing of the Loan or otherwise as reasonably approved by Lender,
together with an Officer’s Certificate certifying that such financial statement presents fairly the financial condition and
the results of operations of Guarantor and that such financial statements have been prepared in accordance with GAAP. In addition,
Guarantor shall provide any other information reasonably requested by Lender from time to time which Lender believes is material
and relevant in reviewing Guarantor’s compliance with the Guarantor Financial Covenants.

 

(d)           Until
all of the Obligations and the Guaranteed Obligations have been paid in full, (A) Guarantor shall at all times maintain a Net Worth
equal to or in excess of $300,000,000.00 (excluding its interest in the Properties), provided that, from and after
such time that the combined outstanding principal balance of the Loan and the Mezzanine Loan, in the aggregate, is less than $300,000,000.00,
Guarantor shall at all times maintain a minimum Net Worth equal to the greater of (x) the then combined outstanding principal balance
of the Loan and the Mezzanine Loan in the aggregate and (y) $150,000,000.00 and (B) Guarantor shall at all times maintain Liquid
Assets having a market value of at least $25,000,000.00, which minimum market value of Liquid Assets may be reduced to $15,000,000.00
in the event the outstanding Debt is equal to $100,000,00.00 or less (collectively, “Guarantor Financial Covenants”).

 

(e)           Definitions.
As used in this Section 1.12, the following terms shall have the following definitions:

 

(i)          The
term “Net Worth” as used in this Guaranty shall mean as of a given date net tangible assets less
liabilities, pursuant to the consolidated balance sheet of Guarantor and its consolidated subsidiaries, determined pursuant GAAP,
as adjusted to exclude Guarantor’s indirect interest in the Properties, straight-line rent receivables or payables, derivative
values and any other intangible assets or liabilities of Guarantor, and provided that Lender and Guarantor agreed upon  real
estate values as shown in Exhibit A attached hereto will be used rather than historical cost basis real estate values as
would otherwise be used in accordance with GAAP, all being determined consistent with the calculations shown on Exhibit A
hereto.

 

    	 	-5-	 

     

    

  

(ii)         As
used herein, “Liquid Assets” shall mean all unrestricted or unencumbered (A) cash and (B) any of the following:
(i) marketable direct obligations issued or unconditionally guaranteed by the United States Government or issued by an agency thereof
and backed by the full faith and credit of the United States; (ii) marketable direct obligations issued by any state or territory
of the United States of America or any political subdivision of any such state or territory or any public instrumentality thereof
which, at the time of acquisition, has a long term unsecured debt rating of not less than “BBB” by S&P, “BBB”
by Fitch and “Baa3” by Moody’s, and is not listed for possible down-grade in any publication of any of the foregoing
rating services; (iii) domestic certificates of deposit or domestic time deposits or repurchase agreements issued by any commercial
bank organized under the laws of the United States of America or any state thereof or the District of Columbia having a long term
unsecured debt rating of not less than “BBB” by S&P, “BBB” by Fitch and “Baa3” by Moody’s,
and not listed for possible down-grade in any publication of any of the foregoing rating services; (iv) money market funds having
assets under management in excess of $2,000,000,000.00; (v) any stock, shares, certificates, bonds, debentures, notes or other
instrument which constitutes a “security” under the Securities Act (other than Guarantor, Borrower and/or any of their
affiliates) which are freely tradable on any nationally recognized securities exchange or otherwise readily marketable and liquid;
and/or (vi) obligations of the following United States government sponsored agencies: Federal Home Loan Mortgage Corp. (debt obligations),
the Farm Credit System (consolidated systemwide bonds and notes), the Federal Home Loan Banks (consolidated debt obligations),
the Federal National Mortgage Association (debt obligations), and the Resolution Funding Corp. (debt obligations); provided,
however, that the investments described in this clause (vi) (1) must have a predetermined fixed dollar of principal
due at maturity that cannot vary or change, (2) if rated by S&P, must not have an any qualifier affixed to their rating,
(3) if such investments have a variable rate of interest, such interest rate must be tied to a single interest rate index
plus a fixed spread (if any) and must move proportionately with that index, (4) must not be subject to liquidation prior to their
maturity and (5) must have maturities of not more than 365 days.

 

ARTICLE
II

 

EVENTS
AND CIRCUMSTANCES NOT REDUCING

OR
DISCHARGING GUARANTOR’S OBLIGATIONS

 

Guarantor hereby 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, and waives to the extent permitted under applicable law, any common
law, equitable, statutory or other rights (including without limitation rights to notice) which Guarantor might otherwise have
as a result of or in connection with any of the following:

 

2.1           Modifications. Any
renewal, extension, increase, modification, alteration or rearrangement of all or any part of the Guaranteed Obligations,
the Note, the Loan Agreement, the other Loan Documents, or any other document, instrument, contract or understanding between
Borrower, Operating Lessee and Lender, or any other parties, pertaining to the Guaranteed Obligations or any failure of
Lender to notify Guarantor of any such action.

 

2.2           Adjustment. Any
adjustment, indulgence, forbearance or compromise that might be granted or given by Lender to Borrower, Operating Lessee or
any Guarantor.

 

    	 	-6-	 

     

    

  

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

 

2.4           Invalidity
of Guaranteed Obligations. The invalidity, illegality or unenforceability of all or any part of the Guaranteed
Obligations, or any document or agreement executed in connection with the Guaranteed Obligations, for any reason whatsoever,
including without limitation the fact that (a) the Guaranteed Obligations, or any part thereof, exceeds the amount permitted
by law, (b) the act of creating the Guaranteed Obligations or any part thereof is ultra vires, (c) the officers
or representatives executing the Note, the Loan Agreement or the other Loan Documents or otherwise creating the Guaranteed
Obligations acted in excess of their authority, (d) the Guaranteed Obligations violate applicable usury laws, (e) the
Borrower has valid defenses, claims or offsets (whether at law, in equity or by agreement) which render the Guaranteed
Obligations wholly or partially uncollectible from Borrower, (f) the creation, performance or repayment of the Guaranteed
Obligations (or the execution, delivery and performance of any document or instrument representing part of the Guaranteed
Obligations or executed in connection with the Guaranteed Obligations, or given to secure the repayment of the Guaranteed
Obligations) is illegal, uncollectible or unenforceable, or (g) the Note, the Loan Agreement 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 Guaranteed Obligations or
any part thereof for any reason (other than due to the defense of payment of the Debt).

 

2.5           Release
of Obligors. Any full or partial release of the liability of Borrower on the Guaranteed Obligations, or any part
thereof, or of any co-guarantors, or any other person or entity now or hereafter liable, whether directly or indirectly,
jointly, severally, or jointly and severally, to pay, perform, guarantee or assure the payment of 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 party, and Guarantor has not been induced to enter
into this Guaranty on the basis of a contemplation, belief, understanding or agreement that other Persons will be liable to
pay or perform the Guaranteed Obligations, or that Lender will look to other Persons to pay or perform the Guaranteed
Obligations.

 

2.6           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 Guaranteed Obligations.

 

2.7           Release
of Collateral. Any release, surrender, exchange, subordination, deterioration, waste, loss or impairment (including
without limitation negligent, willful, unreasonable or unjustifiable impairment) 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 Guaranteed Obligations.

 

    	 	-7-	 

     

    

  

2.8           Care
and Diligence. The failure of Lender or any other party 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 Lender (a) to take or prosecute any action
for the collection of any of the Guaranteed Obligations or (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 Guaranteed Obligations.

 

2.9           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 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 by
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 Guaranteed Obligations.

 

2.10         Offset. The
Note, the Loan Agreement, the Guaranteed Obligations and the liabilities and obligations of Guarantor to Lender hereunder
shall not be reduced, discharged or released because of or by reason of any existing or future right of offset, claim or
defense of Borrower, Operating Lessee or Guarantor against Lender, or any other Person, or against payment of the Guaranteed
Obligations, whether such right of offset, claim or defense (other than the defense of payment) arises in connection with the
Guaranteed Obligations (or the transactions creating the Guaranteed Obligations) or otherwise.

 

2.11         Merger. The
reorganization, merger or consolidation of Borrower, Operating Lessee into or with any other corporation or entity.

 

2.12         Preference. Any
payment by Borrower to Lender is held to constitute a preference under bankruptcy laws, or for any reason Lender is required
to refund such payment or pay such amount to Borrower or someone else.

 

2.13         Other
Actions Taken or Omitted. Any other action taken or omitted to be taken with respect to the Loan Documents, 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,
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 full and final payment and satisfaction of the Guaranteed Obligations.

 

    	 	-8-	 

     

    

 

 

ARTICLE
III

 

REPRESENTATIONS
AND WARRANTIES

 

To induce Lender to enter
into the Loan Documents and extend credit to Borrower, Guarantor represents and warrants to Lender as follows:

 

3.1           Benefit. Guarantor
is an Affiliate of Borrower, is the owner of a direct or indirect interest in Borrower, and has received, or will receive,
direct or indirect benefit from the making of this Guaranty with respect to the Guaranteed Obligations.

 

3.2           Familiarity
and Reliance. Guarantor is familiar with, and has independently reviewed books and records regarding, the financial
condition of Borrower and Operating Lessee and is familiar with the value of any and all collateral intended to be created as
security for the payment of the Note or Guaranteed Obligations; however, Guarantor is not relying on such financial condition
or the collateral as an inducement to enter into this Guaranty.

 

3.3           No
Representation By Lender. Neither Lender nor any other party has made any representation, warranty or statement to
Guarantor in order to induce the Guarantor to execute this Guaranty.

 

3.4           Guarantor’s
Financial Condition. As of the date hereof, and after giving effect to this Guaranty and the contingent obligation
evidenced hereby, Guarantor is, and intends to be, solvent, and has and intends to have assets which, fairly valued, exceed
its obligations, liabilities (including contingent liabilities) and debts, and has and intends to have property and assets
sufficient to satisfy and repay its obligations and liabilities.

 

3.5           Legality. 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 (or an event which with notice or lapse of time or both would constitute a default) under, or
result in the breach of, any indenture, mortgage, deed of trust, 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.

 

3.6           Litigation.
Except as identified on Schedule VI to the Loan Agreement, there are no actions, suits or proceedings at law or in equity by or
before any Governmental Authority or other agency now pending or threatened against or affecting Guarantor which could have a Material
Adverse Effect.

 

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

 

    	 	-9-	 

     

    

  

ARTICLE
IV

 

SUBORDINATION
OF CERTAIN INDEBTEDNESS

 

4.1           Subordination
of All Guarantor Claims. As used herein, the term “Guarantor Claims” shall mean all debts and
liabilities of Borrower or Operating Lessee to Guarantor, whether such debts and liabilities now exist or are hereafter
incurred or arise, or whether the obligations of Borrower or Operating Lessee 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 the 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 or
Operating Lessee (arising as a result of subrogation or otherwise) as a result of Guarantor’s payment of all or a
portion of the Guaranteed Obligations. Upon the occurrence and continuation of an Event of Default, Guarantor shall not
receive or collect, directly or indirectly, from Borrower, Operating Lessee or any other party any amount upon the Guarantor
Claims.

 

4.2           Claims
in Bankruptcy. In the event of receivership, bankruptcy, reorganization, arrangement, debtor’s relief, or other
insolvency proceedings involving Guarantor as debtor, Lender shall have the right to prove its claim 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
Lender. Should Lender receive, for application upon the Guaranteed Obligations, any such dividend or payment which is
otherwise payable to Guarantor, and which, as between Borrower and Guarantor or Operating Lessee and Guarantor, shall
constitute a credit upon the Guarantor Claims, then upon payment to Lender in full of the Guaranteed Obligations, Guarantor
shall become subrogated to the rights of Lender to the extent that such payments to Lender 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 Lender had not received dividends or payments upon
the Guarantor Claims.

 

4.3           Payments
Held in Trust. In the event that, notwithstanding anything to the contrary in this Guaranty, Guarantor should receive
any funds, payments, claims or distributions which are prohibited by this Guaranty, Guarantor agrees to hold in trust for
Lender an amount equal to the amount of all funds, payments, claims or distributions so received, and agrees that it shall
have absolutely no dominion over the amount of such funds, payments, claims or distributions so received except to pay them
promptly to Lender, and Guarantor covenants promptly to pay the same to Lender.

 

    	 	-10-	 

     

    

 

4.4           Liens
Subordinate. Guarantor agrees that any liens, security interests, judgment liens, charges or other encumbrances upon
Borrower’s or Operating Lessee’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 or
Operating Lessee’s assets securing payment of the Guaranteed Obligations, regardless of whether such encumbrances in
favor of Guarantor or Lender presently exist or are hereafter created or attach. Without the prior written consent of Lender,
until the Debt is paid in full, Guarantor shall not (a) exercise or enforce any creditor’s right it may have against
Borrower or Operating Lessee (b) create any Liens encumbering the Properties or the Collateral, Borrower Operating Lessee or
any interest in either of the foregoing, other than Permitted Encumbrances, or (c) foreclose, repossess, sequester or
otherwise take steps or institute any action or proceedings (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 or Operating Lessee held by Guarantor.

 

ARTICLE
V

 

MISCELLANEOUS

 

5.1           Waiver. No
failure to exercise, and no delay in exercising, on the part of 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 Lender 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 any 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.

 

5.2           Termination The
Guaranteed Obligations under this Guaranty (exclusive of any other obligations of Guarantor under any other guaranty,
indemnity or similar agreement relating to the Loan, and any obligations related to then ongoing and pending claims made
under this Guaranty) shall terminate upon the indefeasible repayment in full of the Debt and the expiration of all applicable
preference periods under the Bankruptcy Code.

 

5.3           Notices. All
notices or other written communications hereunder shall be made in accordance with Section 10.6 of the Loan Agreement.
Notices to Guarantor shall be made to:

 

Guarantor:

 

			New York REIT, Inc.

405 Park Avenue

New York, New York 10022

Attention: Legal Department

 

    	 	-11-	 

     

    

  

with a copy to:

 

Arnold & Porter LLP

399 Park Avenue

New York, NY 10022

Attention: John Busillo, Esq.

 

5.4           Governing
Law.

 

(a)          
This Guaranty shall be governed in accordance with the State of New York and the applicable law of the United States of America.

 

(b)          ANY
LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR GUARANTOR ARISING OUT OF OR RELATING TO THIS GUARANTY MAY AT LENDER’S
OPTION BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN THE CITY OF NEW YORK, COUNTY OF NEW YORK, PURSUANT TO SECTION 5-1402
OF THE NEW YORK GENERAL OBLIGATIONS LAW, AND EACH OF GUARANTOR AND LENDER, BY ITS ACCEPTANCE HEREOF, WAIVES ANY OBJECTIONS WHICH
IT MAY NOW OR HEREAFTER HAVE BASED ON VENUE AND/OR FORUM NON CONVENIENS OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND EACH OF GUARANTOR
AND LENDER, BY ITS ACCEPTANCE HEREOF, HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUIT, ACTION OR
PROCEEDING. EACH GUARANTOR DOES HEREBY DESIGNATE AND APPOINT:

 

			CORPORATION SERVICE COMPANY (CSC)

1180 AVENUE
OF THE AMERICAS, SUITE 210

NEW YORK,
NEW YORK 10036

 

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

 

    	 	-12-	 

     

    

  

5.5           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, 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, unless such continued effectiveness of this
Guaranty, as modified, would be contrary to the basic understandings and intentions of the parties as expressed herein.

 

5.6           Amendments. This
Guaranty may be amended only by an instrument in writing executed by Lender and Guarantor.

 

5.7           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, assigns and legal representatives; provided, however, that Guarantor
may not, without the prior written consent of Lender, assign any of its rights, powers, duties or obligations hereunder. If
Guarantor consists of more than one person or party, the obligations and liabilities of each such person or party shall be
joint and several.

 

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

 

5.9           Recitals. The
recital and introductory paragraphs hereof are a part hereof, form a basis for this Guaranty and shall be considered prima
facie evidence of the facts and documents referred to therein.

 

5.10         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.

 

5.11         Rights
and Remedies. If Guarantor becomes liable for any indebtedness owing by Borrower to Lender, by endorsement or
otherwise, 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 ever have against Guarantor. The
exercise by 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.

 

    	 	-13-	 

     

    

  

5.12         Special
Provision. Notwithstanding anything to the contrary herein, Guarantor shall have no liability hereunder for the payment
or performance of any increase in or change to the Guaranteed Obligations or the amount thereof
arising directly and solely from any increase, amendment, modification, alteration or rearrangement of the Note, the Loan Agreement
and/or the other Loan Documents (1) entered into after the transfer of title to the Collateral (as defined in the Mezzanine Loan
Agreement) to Mezzanine Lender (or any of its affiliates or designees) pursuant to a foreclosure, deed in lieu of foreclosure or
similar action of Mezzanine Lender’s lien under the Mezzanine Loan Documents or by any other mezzanine lender permitted under
Section 9.1.1(c) or 9.1.3(b) of the Loan Agreement and (2) not agreed or consented to by Guarantor in writing; it being agreed
to and understood that after any such transfer, Guarantor shall continue to remain liable for the Guaranteed Obligations (subject
to and in accordance with the terms of this Guaranty) with respect to the terms and conditions of the Loan Documents in effect
on the date of such transfer.

 

5.13         Entirety.
THIS GUARANTY EMBODIES THE FINAL AND ENTIRE AGREEMENT OF GUARANTOR AND LENDER 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. THIS GUARANTY IS INTENDED BY GUARANTOR AND LENDER AS A FINAL AND COMPLETE
EXPRESSION OF THE TERMS OF THE GUARANTY, AND NO COURSE OF DEALING BETWEEN GUARANTOR AND LENDER, 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 LENDER.

 

5.14         Waiver
of Right To Trial By Jury. EACH OF GUARANTOR AND LENDER (BY ACCEPTANCE OF THIS GUARANTY) HEREBY AGREES 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, THE NOTE, THE LOAN AGREEMENT, THE SECURITY INSTRUMENTS, THE PLEDGE
AGREEMENT OR THE OTHER LOAN DOCUMENTS, 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 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. LENDER IS HEREBY AUTHORIZED TO FILE A COPY OF
THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY GUARANTOR.

 

5.15         Cooperation.
Guarantor shall comply with the obligations set forth in Section 9.1 of the Loan Agreement, subject to and in accordance with the
terms of such Section 9.1.

 

    	 	-14-	 

     

    

  

5.16         Reinstatement
in Certain Circumstances. If at any time any payment of the principal of or interest under the Note or any other
amount payable by Borrower under the Loan Documents is rescinded or must be otherwise restored or returned upon the
insolvency, bankruptcy or reorganization of Borrower or otherwise, the Guarantor’s obligations hereunder with respect
to such payment shall be reinstated as though such payment has been due but not made at such time.

 

5.17         Agent.
 Each Lender, by the Loan Agreement, has irrevocably appointed and authorized Agent to take such action as contractual representative
on such Lender’s behalf and to exercise such powers under this Guaranty as are specifically delegated to Lender by the terms
hereof and of the Loan Agreement, together with such powers as are reasonably incidental thereto, all pursuant to and as more particularly
set forth in the Loan Agreement, which is incorporated herein by reference. All references to Lender herein shall mean “Lender”
or “Agent on behalf of Lender”, as the context requires.

 

[Remainder of page
intentionally left blank.]

 

    	 	-15-	 

     

    

 

This Guaranty has been
duly executed as of the day and year first written above.

 

GUARANTOR:

 

NEW YORK REIT, INC., a Maryland corporation

 

By: /s/ Michael Ead                                        

 Name:Michael
Ead

 Title:Authorized Signatory

 

    
[Signature Page to Guaranty Agreement]

     

    

 

SCHEDULE I

 

Borrower

 

ARC NY22936001, LLC, a Delaware limited liability company

ARC NY21618001, LLC, a Delaware limited liability company

ARC NY333W3401, LLC, a Delaware limited liability company

ARC NY350BL001, LLC, a Delaware limited liability company

ARC NYBLKST002, LLC, a Delaware limited liability company

ARC NYCTGRG001, LLC, a Delaware limited liability company

ARC NYWSHST001, LLC, a Delaware limited liability company

ARC NYGRNAV001, LLC, a Delaware limited liability company

ARC NYW42ST001, LLC, a Delaware limited liability company

ARC NY120W5701, LLC, a Delaware limited liability company

ARC NY24549W17, LLC, a Delaware limited liability company

50 Varick LLC, a New York limited liability company

 

     

     

    

 

EXHIBIT A

 

(attached)

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