Document:

exh10-76.htm

Exhibit 10.76

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT is made as of September 30, 2014 by and between CD International Enterprises, Inc., a Florida corporation (the “Company”), and Manuel Mustafa (“Executive”).

WITNESSETH:

WHEREAS, Executive wishes to be employed by the Company with the duties and responsibilities as hereinafter described, and the Company desires to assure itself of the availability of Executive’s services in such capacity.

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the Company and Executive hereby agree as follows:

1.           EMPLOYMENT. The Company hereby agrees to employ Executive, and Executive hereby agrees to serve the Company, upon the terms and conditions hereinafter set forth.

2.           TERM. The employment of Executive by the Company pursuant to this Agreement shall be for a thirty six (36) month period commencing on October 1, 2014 (the “Employment Term”).

3.           DUTIES. Executive shall, subject to overall direction consistent with the legal authority of the Board of Directors of the Company (the “Board”), serve as, and have all power and authority inherent in the office of President of CDII Minerals, Inc. (“CDII Minerals) and EM Resource Enterprises, Inc.  (“EM”), respectively, wholly owned subsidiaries of the Company.  Executive shall also be appointed to the Board of the Company.  Executive shall be responsible for the entire mineral and trading operations of the Company during the Employment Term. Executive shall devote substantially all his business time and efforts to the business of the Company, CDII Minerals and EM; provided, however, that it is understood and agreed that, while Executive may devote time to other business matters in which he may have an interest, in the event of a conflict, Executive’s first and primary responsibility shall be to the performance of his duties for the Company, CDII Minerals, and EM.

4.           COMPENSATION AND OTHER PROVISIONS. Executive shall be entitled to the compensation and benefits hereinafter described in subparagraphs (A) through (D) (such compensation and benefits being hereinafter referred to as “Compensation Benefits”).

A.      BASE SALARY. The Company shall pay to Executive a base salary (the “Base Salary”) of $360,000 per annum for the period commencing on October 1, 2014 and ending on September 30, 2017.  The Base Salary shall be paid through cash flow of EM operations.

B.      STOCK OPTIONS.  During the Employment Term, Executive shall receive options to purchase 3 million shares of the Company's common stock per year starting October 1, 2014.  The options are available to  be fully vested as of October 1, 2017.  The exercise price shall be the average closing price of CDII common stock 10 trading days prior to September 30, 2014.

C.      COMPENSATION ADJUSTMENT. The Base Salary and Executive’s other compensation will be reviewed by the Board of Directors of the Company (the “Board”) at least annually and may be increased (but not decreased) from time to time as the Board may determine.

D.      PARTICIPATION IN BENEFIT PLANS. During the Employment Term, Executive shall be eligible to participate in all Executive benefit plans and arrangements now in effect or which may hereafter be established, including, without limitation, all life, group insurance and medical care plans and all disability, retirement and other executive benefit plans of the Company.  Should the Executive not want to participate in the Company’s health plan, the Company will reimburse the Executive for the expense incurred in participating in another plan.

E.      BONUS.  Executive shall be entitled to receive annual and/or interim cash bonuses and/or other bonuses (“Bonus Payments”) when and in such amounts as may be determined by the Board, pursuant to a recommendation by the compensation committee of the Board. The Board shall meet at least annually to review Executive’s Bonus Payments and such Bonus Payments shall be based upon Executive’s performance of the duties assigned to him by the Board, the Company’s satisfaction of stated performance objectives known to Executive and/or other relevant factors.

F.

  

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G.      INDEMNIFICATION. The Company shall indemnify and hold harmless Executive to the fullest extent permitted by law for any action or inaction of Executive while employed by the Company or, as an officer or director of any other entity affiliated with the Company, or as a fiduciary of any benefit plan.  The Company shall include the Executive under the Company’s D&O liability insurance in the same amount and to the same extent as the Company covers its other officers and directors both (i) during the Employment Term, and (ii) for a five (5) year period after the Employment Term.  Notwithstanding anything herein to the contrary, the Company further agrees to pay, indemnify, defend and hold Executive  harmless from and against any and all any and all losses, claims, actions, causes of action, demands, damages, judgments, settlements, liabilities, deficiencies, costs and expenses (including, without limitation, reasonable attorney’s fees), whatsoever, incurred, sustained, or suffered by Executive as a result of any activity of the Company, including any associated with Taxes of the Company, occurring  prior to the date hereof.  “Taxes” shall mean all taxes, charges, fees, or other assessments of whatever kind or nature, including, without limitation, all net income, gross income, or gross receipts, assessments or charges of any kind whatsoever (together with any interest and any penalties, additions to tax or additional amounts) imposed by any taxing authority upon, or payable by, the Company.

5.           TERMINATION. Executive’s employment hereunder shall terminate as a result of any of the following events:

A.      Executive’s death;

B.      Executive shall be unable to perform his duties hereunder by reason of illness, accident or other physical or mental disability for a continuous period of at least three (3) months or an aggregate of nine (9) months during any continuous eighteen (18) month period, as determined by Executive’s regular physician (“Disability”);

C.      voluntary resignation by Executive; or

termination by the Company with Cause, where “Cause” shall mean: (i) final non-appealable adjudication of Executive of a felony, which would have a material or adverse effect on the business of the Company; or (ii) the determination of the Board (other than Executive) that Executive has engaged in documented gross negligence , which has a continuing material adverse effect on the business of the Company, provided, however, that the Company shall notify Executive of such gross negligence in writing and Executive shall have thirty (30) days to cure.

Any termination pursuant to subparagraph B, or D of this Section shall be communicated by a written notice (“Notice of Termination”), such notice to set forth with specificity the grounds for termination if termination is for “Cause”.  Executive’s employment under this Agreement shall be deemed to have terminated as follows: (i) if Executive’s employment is terminated pursuant to subparagraph A above, on the date of his death; (ii) if Executive’s employment is terminated pursuant to subparagraph B, or D  above, on the date the Notice of Termination is received by Executive (subject to cure); and (iii) if Executive’s employment is terminated pursuant to subparagraph C above, thirty (30) days after the date on which the Company receives Notice of Termination from Executive. The date on which termination is deemed to have occurred pursuant to this paragraph is hereinafter referred to as the “Date of Termination”. If the Notice of Termination is sent to Executive by Company, then it shall be sent to Executive pursuant to the terms set forth in Section 14 of this Agreement.

6.           PAYMENTS ON TERMINATION. In the event that Executive’s employment is terminated pursuant to Sections 5 A, or B above, the Company shall pay to Executive and or his estate, (i) all of the Compensation Benefits Executive is entitled to through the Date of Termination (ii) all Incentive Compensation, benefits and other compensation, if any, due and owing as of the Date of Termination, and (iii) any Severance Payments that the Executive may be entitled to pursuant to Section 15(C).

7.           LIFE INSURANCE. If requested by the Company, Executive shall submit to such physical examinations and otherwise take such actions and execute and deliver such documents as may be reasonably necessary to enable the Company to obtain life insurance on the life of Executive for the benefit of the Company.

8.           REPRESENTATIONS AND WARRANTIES. Executive represents and warrants to the Company that he is under no contractual or other restriction or obligation that would prevent the performance of his duties hereunder or interfere with the rights of the Company hereunder.

9.

  

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10.           DISCLOSURE AND PROTECTION OF CONFIDENTIAL INFORMATION.

A.      For purposes of this Agreement, “Confidential Information” means knowledge, information and material which is proprietary to the Company, of which Executive may obtain knowledge or access through or as a result of his employment by the Company (including information conceived, originated, discovered or developed in whole or in part by Executive).  Confidential Information includes, but is not limited to, (i) technical knowledge, information and material such as trade secrets, processes, formulas, data, know-how, improvements, inventions, computer programs, drawings, patents, and experimental and development work techniques, and (ii) marketing and other information, such as supplier lists, customer lists, marketing and business plans, business or technical needs of customers, consultants, licensees or suppliers and their methods of doing business, arrangements with customers, consultants, licensees or suppliers, manuals and personnel records or data.  Confidential Information also includes any information described above which the Company obtains from another party and which the Company treats as proprietary or designates as confidential, whether or not owned or developed by the Company.  Notwithstanding the foregoing, any information which is or becomes available to the general public other than by breach of this Section 9 shall not constitute Confidential Information for purposes of this Agreement.

B.      During the period in which the Executive is employed by the Company and for two (2) years thereafter, Executive agrees, to hold in confidence all Confidential Information and not to use such information for Executive’s own benefit or to reveal, report, publish, disclose or transfer, directly or indirectly, any Confidential Information to any person or entity, or to utilize any Confidential Information for any purpose, except in the course of Executive’s work for the Company or as required by law.

C.      Executive will abide by any and all policies and procedures, whether formal or informal, that may from time to time be imposed by the Company for the protection of Confidential Information, and will inform the Company of any defects in, or improvements that could be made to, such policies and procedures.

D.      Executive will notify the Company in writing immediately upon receipt of any subpoena, notice to produce, or other compulsory order or process of any court of law or government agency which requires or may require the disclosure or other transfer of Confidential Information.

E.      Upon termination of Executive’s employment with the Company, Executive will deliver to the Company or destroy (at Executive’s election) any and all records and tangible property that contain Confidential Information that are in his possession or under his control.

11.           INTENTIONALLY DELETED.

12.           AVAILABILITY OF INJUNCTIVE RELIEF. Executive acknowledges and agrees that any breach by him of the provisions of Sections 9 hereof will cause the Company irreparable injury and damage for which it cannot be adequately compensated in damages.  Executive therefore expressly agrees that the Company shall be entitled to seek injunctive and/or other equitable relief, on a temporary or permanent basis to prevent an anticipatory or continuing breach of this Agreement. Nothing herein shall be construed as a waiver by the Company of any right it may have or hereafter acquired to monetary damages by reason of any injury to its property, business or reputation or otherwise arising out of any wrongful act or omission of it.

13.           SURVIVAL. The covenants, agreements, representations and warranties contained in or made pursuant to this Agreement shall survive Executive’s termination of employment, irrespective of any investigation made by or on behalf of any party.

14.           MODIFICATION. This Agreement sets forth the entire understanding of the parties with respect to the subject matter hereof, supersedes all existing agreements between them concerning such subject matter, and may be modified only by a written instrument duly executed by each party.

15.           NOTICES. Any notice required or permitted hereunder shall be deemed validly given if delivered by hand, verified overnight delivery, or by first class, certified mail to the following addresses (or to such other address as the addressee shall notify in writing to the other party):

  

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If to Executive                                           Manuel Mustafa

550 Biltmore Way, Suite 200

Coral Gables, FL 33134

If to the Company:                                431 Fairway Drive, Suite 200

Deerfield Beach, FL 33441

16.           SEVERANCE PROVISIONS. Upon the occurrence of a Triggering Event, as hereinafter defined, Executive shall be entitled to the immediate receipt of all Severance Payments from the Company in accordance with the terms hereinafter set forth:

A.      TRIGGERING EVENT. The occurrence of any of the following events shall be defined as a “Triggering Event” for purposes of this Agreement:

i.           The Company’s termination of Executive’s employment for any reason whatsoever (other than for Cause);

ii.           The voluntary resignation of Executive for "good reason", which for purposes hereof shall include, without limitation, (i) a demotion, (ii) a reduction in salary, benefits, bonuses, incentives or perquisites, or (iii) the relocation of the principal office of the Company or the relocation of Executive outside of Broward or Palm Beach Counties, Florida;

iii.           The death or Disability of Executive; or

iv.           A Change of Control..

B.      CHANGE OF CONTROL. For purposes of this Agreement, the term "Change of Control" shall mean the occurrence of any of the following events:

i.           Twenty five percent (25%) or more of the Company's voting stock shall be acquired by any person (other than executives of the Company as of the date hereof ), entity or affiliated group;

 

ii.           If any individuals who at the beginning of any calendar year who were members of the Board ("Incumbent Directors") cease for any reason (other than death) to constitute at least a majority thereof; provided that each new director whose election, or nomination for election by the Company's shareholders, was approved by a vote of at least a majority of the directors then still in office who were directors at the beginning of such period shall be deemed an Incumbent Director unless such approval was made directly or indirectly in connection with an actual or threatened election contest with respect to directors or as a result of any other actual or threatened solicitation of proxies or consents by or on behalf of any person other than the Board;

 

iii.           Any merger, consolidation or business combination pursuant to which the Company is not the surviving corporation or twenty five percent (25%) or more of the Company's voting stock shall be owned or controlled by any person (other than executives of the Company as of the date hereof), entity or affiliated group;

 

iv.           A liquidation or dissolution of the Company; or

 

v.           The sale of all or substantially all of the Company's assets.

 

C.      SEVERANCE PAYMENTS. For purposes of this Agreement, the term “Severance Payment” shall mean that:

i.           Executive shall receive a lump sum payment equal to the sum of (i) the product of (x) two (2) and (y) the Executive’s highest annual Base Salary as of the date of termination; and (ii) the product of (x) two (2) and (y) the sum of (A) highest Bonus Payment, (B) highest Incentive Compensation that Executive was entitled to receive pursuant to Exhibit A in respect of any year within the three (3) years preceding the Triggering Event and (C) any other compensation payments the Executive is entitled pursuant to Section 4(D).

 

 

  

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SEVERANCE PAYMENT FORMULA:

Severance Payment = [(2)(highest Base Salary)] + [(2)( highest Bonus Payment + other compensation payments)]

ii.           All stock options, warrants, Incentive Compensation other stock appreciation rights and other similar securities shall accelerate and become immediately and fully vested and all conditions applicable to all contingently issued options, warrants, stock appreciation rights and other similar securities shall be deemed waived by the Company.  In addition, the Company will maintain in effect a registration statement covering the Executive’s Shares, as hereinafter defined.

iii.           All common shares underlying any stock options, warrants, Incentive Compensation, or other stock appreciation rights shall be covered by the Company by an effective or current registration statement under the Securities Act of 1933, as amended (the “Securities Act”);

iv.           All Compensation Benefits applicable to Executive and his family members under Sections 4.A, B and C of the Agreement shall continue for a period of two (2) years following the later of (i) the Triggering Event or (ii) the expiration of the Employment Term (as if the Triggering Event had not occurred);

v.           In the event that Severance Payments are deemed to be “excess parachute payments” as defined under Section 280G of the Internal Revenue Code, then the Company shall pay to Executive an additional lump sum cash payment as shall be necessary to provide Executive with the same “after-tax” compensation and benefits as if no such excise tax had been imposed;

vi.           The Company shall pay, as and when due, any and all attorneys’ fees and costs that Executive may incur in connection with the enforcement of his rights under this Agreement or any dispute or settlement in connection herewith;

vii.           Notwithstanding the foregoing, if a Triggering Event occurs on or prior to the first date that an Incentive Compensation payment is to be made to Executive, then the Incentive Compensation for purposes of this Section 15 shall be deemed to be one hundred percent (100%) of Executive’s Base Salary; and

viii.           Severance Payments will not be subject to mitigation in any respect.

D.      COMPLIANCE WITH CODE SECTION 409A.

i.           It is the intention of both the Company and Executive that the benefits and rights to which Executive could be entitled pursuant to this Agreement comply with Section 409A of the Code and the Treasury Regulations and other guidance promulgated or issued thereunder (“Section 409A”), to the extent that the requirements of Section 409A are applicable thereto, and the provisions of this Agreement shall be construed in a manner consistent with that intention. If Executive or the Company believes, at any time, that any such benefit or right that is subject to Section 409A does not so comply, it shall promptly advise the other and shall negotiate reasonably and in good faith to amend the terms of such benefits and rights such that they comply with Section 409A (with the most limited possible economic effect on Executive and on the Company).

ii.           If and to the extent required to comply with Section 409A, no payment or benefit required to be paid under this Agreement on account of termination of Executive’s employment shall be made unless and until Executive incurs a “separation from service” within the meaning of Section 409A.

  

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iii.           If Executive is a “specified Executive,” then no payment or benefit that is payable on account of Executive’s “separation from service”, as that term is defined for purposes of Section 409A, shall be made before the date that is six months after Executive’s “separation from service” (or, if earlier, the date of Executive’s death) if and to the extent that such payment or benefit constitutes deferred compensation (or may be nonqualified deferred compensation) under Section 409A and such deferral is required to comply with the requirements of Section 409A. Any payment or benefit delayed by reason of the prior sentence shall be paid out or provided in a single lump sum at the end of such required delay period in order to catch up to the original payment schedule.  For purposes of this Section, Executive shall be considered to be a “specified Executive” if, at the time of his or her separation from service, Executive is a “key Executive”, within the meaning of Section 416(i) of the Code, of the Company (or any person or entity with whom the Company would be considered a single employer under Section 414(b) or Section 414(c) of the Code) any stock in which is publicly traded on an established securities market or otherwise.

iv.           Neither the Company nor Executive, individually or in combination, may accelerate any payment or benefit that is subject to Section 409A, except in compliance with Section 409A and the provisions of this Agreement, and no amount that is subject to Section 409A shall be paid prior to the earliest date on which it may be paid without violating Section 409A.

v.           For purposes of applying the provisions of Section 409A to this Agreement, each separately identified amount to which Executive is entitled under this Agreement shall be treated as a separate payment. In addition, to the extent permissible under Section 409A, any series of installment payments under this Agreement shall be treated as a right to a series of separate payments.

E.      INDEPENDENT COUNSEL.  The Company and Executive agree that each of them have been, or were advised and fully understand, that they are entitled to be represented by independent legal counsel with respect to all matters contemplated herein from the commencement of negotiations at all times through the execution hereof

17.           WAIVER. Any waiver by either party of a breach of any provision of this Agreement shall not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Agreement. The failure of a party to insist upon strict adherence to any term of this Agreement on one or more occasions shall not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement. All waivers must be in writing.

18.           BINDING EFFECT. The Company’s rights and obligations under this Agreement shall not be transferable by assignment or otherwise, and any attempt to do any of the foregoing shall be void. The provisions of this Agreement shall be binding upon the Executive and his heirs and personal representatives, and shall be binding upon and inure to the benefit of the Company, its successors and assigns.

19.           HEADINGS. The headings in this Agreement are solely for convenience of reference and shall be given no effect in the construction or interpretation of this Agreement.

20.           GOVERNING LAW; VENUE. This Agreement is to be performed in the State of Florida, and the validity, construction and enforcement of, and the remedies under, this Agreement shall be governed in accordance with the laws of the State of Florida, without giving effect to any choice of laws principles. In the event of any litigation arising out of or relating to this Agreement, exclusive venue shall be in Miami-Dade County, Florida.

21.           ENTIRE AGREEMENT. This writing constitutes the binding and entire agreement of the parties superseding and extinguishing all prior agreements or understandings regarding the subject matter hereof, and may not be modified without the written agreement by the parties.

22.           INVALIDITY. The invalidity or unenforceability of any term of this Agreement shall not invalidate, make unenforceable or otherwise affect any other term of this Agreement, which shall remain in full force and effect.

  

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23.           ATTORNEYS’ FEES. If any dispute or litigation arises hereunder between any of the parties hereto, then the prevailing party shall be entitled to all reasonable costs and expenses incurred by it in connection therewith (including, without limitation, all reasonable attorneys’ fees and costs incurred before and at any trial or other proceeding and at all tribunal levels), as well as all other relief granted in any suit or other proceeding. As used herein, a party shall be deemed “prevailing” when it recovers (i) as to a damage claim, an aggregate of more than fifty percent (50%) of the damages which it seeks among its various asserted claims exclusive of interest, attorney’s fees, costs incurred and exemplary damages and (ii) as to an equity claim, substantial injunctive or other equitable relief upon its asserted claim. Either of the parties herein shall be entitled to request the trier of fact in any dispute, litigation or arbitration between them, to determine which of the parties is “prevailing”.

24.           DAMAGES. The Company and the Executive agree that the Executive will suffer a monetary loss if the common shares underlying the stock options, warrants, Incentive Compensation or other stock appreciation rights owned or held by Executive (the “Executive’s Securities”) are not covered for resale under a current registration statement under the Securities Act. Accordingly, so long as the Company is subject to reporting and filing obligations under the Securities Act of 1934, the Company shall deliver for each thirty (30) consecutive day period that the Executive’s Securities are not covered by a current registration statement (or such lessor pro-rata amount for any period of less than thirty days) to the Executive as Liquidated Damages, an amount equal to five percent (5%) of the total aggregate market value of the Executive’s Securities. The Company must pay the Liquidated Damages in cash.  The Liquidated Damages must be paid within ten (10) days after the end of each thirty (30) day period or shorter part thereof for which Liquidated Damages are payable.

[SIGNATURES APPEAR ON FOLLOWING PAGE]

  

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WITNESS WHEREOF, the parties have executed this Agreement as of the date first hereinabove written.

	
CD International Enterprises, Inc., a Florida Corporation

 

 

 

Name: James Wang

 

 

Signature: /s/ James Wang

 

 

Title: CEO

 

	  
	  	  

Executive

Manuel Mustafa

Signature: /s/ Manuel MustafaExhibit 10.10

 

EXECUTION COPY

 

GUARANTEE AGREEMENT

 

GUARANTEE AGREEMENT,
dated as of June 18, 2014 (as amended, restated, supplemented, or otherwise modified from time to time, this “Guarantee”),
made by ARC Realty Finance Trust, Inc., a Maryland corporation (“Guarantor”)
in favor of JPMorgan Chase Bank, National Association, a national banking association organized under the laws of the United States
(“Buyer”).

 

RECITALS

 

Pursuant to that certain
Master Repurchase Agreement, dated as of June 18, 2014 (as amended, supplemented or otherwise modified from time to time, the “Repurchase
Agreement”), between Buyer and ARC RFT JPM Loan,
LLC (“Seller”), Seller has agreed to sell, from time to time, to Buyer certain Eligible Assets (as defined
in the Repurchase Agreement, upon purchase by Buyer, each a “Purchased Asset” and, collectively, the “Purchased
Assets”), upon the terms and subject to the conditions as set forth therein. Pursuant to the terms of that certain Custodial
Agreement dated June 18, 2014 (the “Custodial Agreement”) by and among Buyer, Seller and Wells Fargo Bank, National
Association (the “Custodian”), Custodian is required to take possession of the Purchased Assets, along with
certain other documents specified in the Custodial Agreement, as Custodian of Buyer and any future purchaser, on several delivery
dates, in accordance with the terms and conditions of the Custodial Agreement. Pursuant to the terms of that certain Pledge Agreement
dated as of June 18, 2014 (the “Pledge Agreement”) made by ARC Realty Finance Operating Partnership, L.P. (“Parent”)
in favor of Buyer, Parent has pledged to Buyer all of the Pledged Collateral (as defined in the Pledge and Security Agreement).
The Repurchase Agreement, the Custodial Agreement, the Depository Agreement, the Servicing Agreement, the Fee Letter, this Guarantee
and any other agreements executed in connection with the Repurchase Agreement shall be referred to herein as the “Governing
Agreements”.

 

It is a condition precedent
to the purchase by Buyer of the Purchased Assets pursuant to the Repurchase Agreement that Guarantor shall have executed and delivered
this Guarantee with respect to the due and punctual payment and performance when due, whether at stated maturity, by acceleration
of the Repurchase Date or otherwise, of all of the following: (a) all payment obligations owing by Seller to Buyer under or in
connection with the Repurchase Agreement or any other Governing Agreements; (b) any and all extensions, renewals, modifications,
amendments or substitutions of the foregoing; (c) all fees and expenses, including, without limitation, reasonable attorneys’
fees and disbursements, that are incurred by Buyer in the enforcement of any of the foregoing or any obligation of Guarantor hereunder;
and (d) any other obligations of Seller and Parent with respect to Buyer under each of the Governing Agreements (collectively,
the “Obligations”).

 

NOW,
THEREFORE, in consideration of the foregoing premises, to induce Buyer to enter into the Governing Agreements and to enter
into the transaction contemplated thereunder, Guarantor hereby agrees with Buyer, as follows:

 

    	 

    	 

    

  

1.          Defined
Terms. Unless otherwise defined herein, capitalized terms used herein shall have the respective meanings given them in the
Repurchase Agreement.

 

“Guarantor
Minimum Net Worth Test” shall have the meaning set forth in the Fee Letter.

 

“Tangible
Net Worth” shall mean with respect to any Person and as of any date of determination, (a) all amounts that would be included
under capital or shareholders’ equity (or any like caption) of such Person and its consolidated Subsidiaries, if any, on
a balance sheet of such Person and its consolidated Subsidiaries at such date and not paid as a dividend or otherwise deployed,
determined in accordance with GAAP less (b) the sum of (i) amounts owing to such Person from Affiliates or from officers,
employees, partners, members, directors, shareholders or other Persons similarly affiliated with such Person or any Affiliate thereof,
(ii) intangible assets of such Person and its consolidated Subsidiaries, if any, and (iii) prepaid Taxes and/or expenses, all on
or as of such date.

 

“Total Assets”
shall mean, with respect to any Person and any date of determination, an amount equal to the aggregate book value of all assets
owned by such Person on a consolidated basis determined in accordance with GAAP and the proportionate share of assets owned by
non-consolidated Subsidiaries of such Person, less (a) amounts owing to such Person from any Affiliate thereof, or from officers,
employees, partners, members, directors, shareholders or other Persons similarly affiliated with such Person or any affiliate thereof,
(b) intangible assets, and (c) prepaid taxes and expenses, all on or as of such date.

 

“Total Indebtedness”
shall mean, for any Person as of any date of determination, the aggregate Indebtedness of such Person and its consolidated Subsidiaries
as of such date of determination, plus the proportionate share of all Indebtedness of all non-consolidated Subsidiaries of such
Person as of such date (including, in each case, without limitation, off-balance sheet Indebtedness).

 

2.          Guarantee.
(a) Guarantor hereby unconditionally and irrevocably guarantees to Buyer the prompt and complete payment and performance of the
Obligations by Seller and Parent when due (whether at the stated maturity, by acceleration or otherwise).

 

(b)          Guarantor
further agrees to pay any and all expenses (including, without limitation, all fees and disbursements of counsel) that may be paid
or incurred by Buyer in connection with (i) enforcing any of its rights hereunder, (ii) obtaining advice of counsel with respect
to the enforcement, potential enforcement or analysis of its rights hereunder, and (iii) collecting any amounts owed to it hereunder.
Without limiting the generality of the foregoing, Guarantor agrees to hold Buyer harmless from, and indemnify Buyer against, any
and all losses, costs or expenses relating to the failure of Primary Servicer or Interim Servicer to remit any Income to the Depository
Account or comply with any other provision of the Primary Servicing Agreement, the Interim Servicing Agreement, any other Servicing
Agreement or any Servicer Notice or Re-direction Letter. This Guarantee shall remain in full force and effect and be fully enforceable
against Guarantor in all respects until the later of (i) the date upon which the Obligations are paid in full and (ii) the termination
of the Repurchase Agreement, notwithstanding that from time to time prior thereto, Seller and/or Parent may be free from any Obligations.

 

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(c)          No
payment or payments made by Seller, Parent or any other Person or received or collected by Buyer from Seller, Parent or any other
Person by virtue of any action or proceeding or any set-off or appropriation or application, at any time or from time to time,
in reduction of or in payment of the Obligations shall be deemed to modify, reduce, release or otherwise affect the liability of
Guarantor hereunder, and Guarantor shall, notwithstanding any such payment or payments, remain liable for the full amount of the
Obligations under this Guarantee until the Obligations are paid in full.

 

(d)          Guarantor
agrees that whenever, at any time, or from time to time, Guarantor shall make any payment to Buyer on account of any liability
hereunder, Guarantor will notify Buyer in writing that such payment is made under this Guarantee for such purpose.

 

3.          Subrogation.
Upon making any payment hereunder, Guarantor shall be subrogated to the rights of Buyer against Seller and Parent and in any collateral
for any Obligations with respect to such payment; provided, that Guarantor shall not seek to enforce any right or receive
any payment by way of subrogation, or seek any contribution or reimbursement from Seller, until all amounts then due and payable
by Seller or Parent to Buyer or any of its Affiliates under the Governing Agreements have been paid in full; provided, further,
that such subrogation rights shall be subordinate in all respects to all amounts owing to Buyer under the Governing Agreements.
If any amount shall be paid to Guarantor on account of such subrogation rights at any time when all of the Repurchase Obligations
shall not have been paid in full, such amount shall be held by Guarantor in trust for Buyer, segregated from other funds of Guarantor,
and shall, forthwith upon receipt by Guarantor, be turned over to Buyer in the exact form received by Guarantor (duly indorsed
by Guarantor to Buyer, if required), to be applied against the Repurchase Obligations, whether matured or unmatured, in such order
as Buyer may determine.

 

4.          Amendments,
etc. with Respect to the Obligations. Guarantor shall remain obligated hereunder notwithstanding that, without any reservation
of rights against Guarantor, and without notice to or further assent by Guarantor, any demand for payment of any of the Obligations
made by Buyer may be rescinded by Buyer and any of the Obligations continued, and the Obligations, or the liability of any other
party upon or for any part thereof, or any collateral security or guarantee therefor or right of offset with respect thereto, may,
from time to time, in whole or in part, be renewed, extended, amended, modified, accelerated, compromised, waived, surrendered
or released by Buyer, and any Governing Agreement and any other document in connection therewith may be amended, modified, supplemented
or terminated, in whole or in part, as Buyer may deem advisable from time to time, and any collateral security, guarantee or right
of offset at any time held by Buyer for the payment of the Obligations may be sold, exchanged, waived, surrendered or released.
Buyer shall have no obligation to protect, secure, perfect or insure any lien at any time held by it as security for the Obligations
or for this Guarantee or any property subject thereto. When making any demand hereunder against Guarantor, Buyer may, but shall
be under no obligation to, make a similar demand on Seller, Parent or any other Person, and any failure by Buyer to make any such
demand or to collect any payments from Seller, Parent or any such other Person or any release of Seller, Parent or such other Person
shall not relieve Guarantor of its Obligations or liabilities hereunder, and shall not impair or affect the rights and remedies,
express or implied, or as a matter of law, of Buyer against Guarantor. For the purposes hereof “demand” shall include
the commencement and continuance of any legal proceedings.

 

    	-3-

    	 

    

  

5.          Guarantee
Absolute and Unconditional. (a) Guarantor hereby agrees that its obligations under this Guarantee constitute a guarantee of
payment when due and not of collection. Guarantor waives any and all notice of the creation, renewal, extension or accrual of any
of the Obligations and notice of or proof of reliance by Buyer upon this Guarantee or acceptance of this Guarantee; the Obligations,
and any of them, shall conclusively be deemed to have been created, contracted or incurred in reliance upon this Guarantee; and
all dealings between Seller, Parent and Guarantor, on the one hand, and Buyer, on the other hand, shall likewise be conclusively
presumed to have been had or consummated in reliance upon this Guarantee. Guarantor waives promptness, diligence, presentment,
protest, demand for payment and notice of default or nonpayment to or upon Seller, Parent or this Guarantee with respect to the
Obligations. This Guarantee shall be construed as a continuing, absolute and unconditional guarantee of payment without regard
to (i) the validity, regularity or enforceability of any Governing Agreement, any of the Obligations or any collateral security
therefor or guarantee or right of offset with respect thereto at any time or from time to time held by Buyer, (ii) any defense,
set-off or counterclaim (other than a defense of payment or performance) that may at any time be available to or be asserted by
Seller or Parent against Buyer, (iii) any requirement that Buyer exhaust any right to take any action against Seller, Parent or
any other Person prior to or contemporaneously with proceeding to exercise any right against Guarantor under this Guarantee or
(iv) any other circumstance whatsoever (with or without notice to, or knowledge of, Seller, Parent and Guarantor) that constitutes,
or might be construed to constitute, an equitable or legal discharge of Seller and/or Parent for the Obligations or of Guarantor
under this Guarantee, in bankruptcy or in any other instance. When pursuing its rights and remedies hereunder against Guarantor,
Buyer may, but shall be under no obligation, to pursue such rights and remedies that Buyer may have against Seller, Parent or any
other Person or against any collateral security or guarantee for the Obligations or any right of offset with respect thereto, and
any failure by Buyer to pursue such other rights or remedies or to collect any payments from Seller, Parent or any such other Person
or to realize upon any such collateral security or guarantee or to exercise any such right of offset, or any release of Seller,
Parent or any such other Person or any such collateral security, guarantee or right of offset, shall not relieve Guarantor of any
liability hereunder, and shall not impair or affect the rights and remedies, whether express, implied or available as a matter
of law, of Buyer against Guarantor. This Guarantee shall remain in full force and effect and be binding in accordance with and
to the extent of its terms upon Guarantor and its successors and assigns thereof, and shall inure to the benefit of Buyer, and
its permitted successors, endorsees, transferees and assigns, until all the Obligations and the obligations of Guarantor under
this Guarantee shall have been satisfied by payment in full, notwithstanding that from time to time during the term of the Governing
Agreements, Seller or Parent may be free from any Obligations.

 

(b)          Without
limiting the generality of the foregoing, Guarantor hereby agrees, acknowledges, and represents and warrants to Buyer as follows:

 

    	-4-

    	 

    

  

(i)          Guarantor
hereby waives any defense arising by reason of, and any and all right to assert against Buyer any claim or defense based upon,
an election of remedies by Buyer that in any manner impairs, affects, reduces, releases, destroys and/or extinguishes Guarantor’s
subrogation rights, rights to proceed against Seller, Parent or any other guarantor for reimbursement or contribution, and/or any
other rights of Guarantor to proceed against Seller, Parent, any other guarantor or any other person or security.

 

(ii)         Guarantor
is presently informed of the financial condition of Seller and Parent and of all other circumstances that diligent inquiry would
reveal and that bear upon the risk of nonpayment of the Obligations. Guarantor hereby covenants that it will make its own investigation
and will continue to keep itself informed about the financial condition of Seller and Parent and of all other circumstances that
bear upon the risk of nonpayment and that it will continue to rely upon sources other than Buyer for such information and will
not rely upon Buyer for any such information. Guarantor hereby waives the right, if any, to require Buyer to disclose to Guarantor
any information that Buyer may now or hereafter acquire concerning such condition or circumstances.

 

(iii)        Guarantor
has independently reviewed the Governing Agreements and related agreements and has made an independent determination as to the
validity and enforceability thereof, and in executing and delivering this Guarantee to Buyer, Guarantor is not in any manner relying
upon the validity, and/or enforceability, and/or attachment, and/or perfection of any liens or security interests of any kind or
nature granted by Seller or Parent to Buyer, now or at any time and from time to time in the future.

 

6.          Reinstatement.
This Guarantee shall continue to be effective, or be reinstated, as the case may be, if at any time payment, or any part thereof,
of any of the Obligations is rescinded or must otherwise be restored or returned by Buyer upon the insolvency, bankruptcy, dissolution,
liquidation or reorganization of Seller or Parent or upon or as a result of the appointment of a receiver, intervenor or conservator
of, or trustee or similar officer for Seller or Parent or any substantial part of the property of Seller or Parent, or otherwise,
all as though such payments had not been made.

 

7.          Payments.
Guarantor hereby agrees that the Obligations will be paid to Buyer without set-off or counterclaim in U.S. Dollars at the address
specified in writing by Buyer.

 

8.          Representations
and Warranties. Guarantor represents and warrants as of the date hereof and as of each Purchase Date under the Repurchase Agreement
that:

 

(a)          It
is duly organized, validly existing and in good standing under the laws and regulations of its jurisdiction of incorporation or
organization, as the case may be. It is duly licensed, qualified, and in good standing in every state where such licensing or qualification
is necessary for the transaction of its business. It has the power to own and hold the assets it purports to own and hold, and
to carry on its business as now being conducted and proposed to be conducted, and has the power to execute, deliver, and perform
its obligations under this Guarantee and the other Governing Agreements.

 

    	-5-

    	 

    

  

(b)          This
Guarantee has been duly executed and delivered by it, for good and valuable consideration. This Guarantee constitutes the legal,
valid and binding obligations of it, enforceable against it in accordance with its terms, except as enforceability may be limited
by bankruptcy, insolvency and other limitations on creditors’ rights generally and equitable principles.

 

(c)          Guarantor
does not believe, nor does it have any reason or cause to believe, that it cannot perform in all respects all covenants and obligations
contained in this Guarantee applicable to it.

 

(d)          Neither
the execution and delivery of this Guarantee nor compliance by it with the terms, conditions and provisions of this Guarantee will
conflict with or result in a breach of any of the terms, conditions or provisions of (A) its organizational documents, (B) any
contractual obligation to which it is now a party or constitute a default thereunder, or result thereunder in the creation or imposition
of any lien upon any of its assets, (C) any judgment or order, writ, injunction, decree or demand of any court applicable to it,
or (D) any applicable Requirement of Law.

 

(e)          There
is no action, suit, proceeding, investigation, or arbitration pending or threatened against Guarantor, Parent or Seller or any
of their respective assets (A) with respect to any of the Transaction Documents or any of the transactions contemplated hereby
or thereby, or (b) that could have a Material Adverse Effect. Guarantor is in compliance in all material respects with all Requirements
of Law. None of Guarantor, Parent or Seller is in default in any respect with respect to any judgment, order, writ, injunction,
decree, rule or regulation of any arbitrator or Governmental Authority.

 

(f)          Guarantor’s
execution and delivery of this Guarantee and its compliance with the terms and provisions hereof will not contravene or conflict
with or result in the creation or imposition of any lien upon any of the property or assets of it pursuant to the terms of any
indenture, mortgage, deed of trust, or other agreement or instrument to which it is a party or by which it may be bound, or to
which it may be subject. No consent, approval, authorization, or order of any third party is required in connection with the execution
and delivery by Guarantor of this Guarantee or to consummate the transactions contemplated hereby that has not already been obtained.

 

(g)          No
order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by,
any Governmental Authority is required to authorize, or is required in connection with, (A) the execution, delivery and performance
of this Guarantee, (B) the legality, validity, binding effect or enforceability of this Guarantee against it or (C) the consummation
of the transactions contemplated by this Guarantee.

 

(h)          Guarantor
has timely filed (taking into account all applicable extensions) all required federal income tax returns and all other material
tax returns, domestic and foreign, required to be filed by it and has paid all taxes, assessments, fees, and other governmental
charges payable by it, or with respect to any of its properties or assets, that have become due and payable except to the extent
such amounts are being contested in good faith by appropriate proceedings for which appropriate reserves have been established
in accordance with GAAP, and there is no claim relating to any such taxes now pending that was made in writing by any Governmental
Authority and that is not being contested in good faith as provided above.

 

    	-6-

    	 

    

  

(i)          There
are no judgments against Guarantor unsatisfied of record or docketed in any court located in the United States of America and no
Act of Insolvency has ever occurred with respect to it.

 

9.          Financial
and other Covenants.

 

(a)          On
and as of the date hereof and the Purchase Date and until all Repurchase Obligations have been paid in full, Guarantor covenants
that it shall at all times after the initial satisfaction by Guarantor of the Guarantor Minimum Net Worth Test pursuant to clause
(ii) of such definition, continue to satisfy the Guarantor Minimum Net Worth Test pursuant to clause (ii) of such definition; provided,
however, that during any time prior to the Guarantor’s initial satisfaction of the Guarantor Minimum Net Worth Test pursuant
to clause (ii) of such definition, so long as Guarantor at all times satisfies the Guarantor Minimum Raised Equity Test and Guarantor’s
Tangible Net Worth is at all times equal to or greater than the minimum amounts of additional cash required to be contributed by
the Guarantor Minimum Raised Equity Test, the foregoing covenant shall be deemed to be satisfied.

 

(b)          Guarantor’s
compliance with the covenants set forth in clause (a) above must be evidenced by Guarantor’s financial statements
and a Covenant Compliance Certificate (which may be delivered by Guarantor) in respect of the financial quarter most recently ended,
in the form of Exhibit XV to the Repurchase Agreement furnished together therewith, as provided by Seller to Buyer pursuant
to Article 11(j) of the Repurchase Agreement, and compliance with all such covenants are subject to continuing verification
by Buyer.

 

10.         Further
Covenants of Guarantor.

 

(a)          Taxes.

 

Guarantor has timely
filed (taking into account all applicable extensions) all required federal income tax returns and all other material tax returns,
domestic and foreign, required to be filed by it and has paid all taxes, assessments, fees, and other governmental charges payable
by it, or with respect to any of its properties or assets, that have become due and payable except to the extent such amounts are
being contested in good faith by appropriate proceedings diligently conducted and for which appropriate reserves have been established
in accordance with GAAP. No tax liens have been filed against Guarantor or any of Guarantor’s assets, and, as of the date
hereof, no claims are being asserted with respect to any such taxes, fees or other charges.

 

(b)          PATRIOT
Act.

 

(i)          Guarantor
is in compliance, in all respects, with (A) the Trading with the Enemy Act, as amended, and each of the foreign assets control
regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) and any other applicable enabling
legislation or executive order relating thereto, and (B) the Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism (USA Patriot Act of 2001). No part of the proceeds of any Transaction will be used,
directly or indirectly, for any payments to any governmental official or employee, political party, official of a political party,
candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or
obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as amended.

 

    	-7-

    	 

    

  

(ii)         Guarantor
agrees that, from time to time upon the prior written request of Buyer, it shall (A) execute and deliver such further documents,
provide such additional information and reports and perform such other acts as Buyer may reasonably request in order to insure
compliance with the provisions hereof (including, without limitation, compliance with the USA PATRIOT Act of 2001 and to fully
effectuate the purposes of this Guarantee and (B) provide such opinions of counsel concerning matters relating to this Guarantee
as Buyer may reasonably request; provided, however, that nothing in this Section 10(b) shall be construed
as requiring Buyer to conduct any inquiry or decreasing Guarantor’s responsibility for its statements, representations, warranties
or covenants hereunder. In order to enable Buyer and its Affiliates to comply with any anti-money laundering program and related
responsibilities including, but not limited to, any obligations under the USA Patriot Act of 2001 and regulations thereunder, Guarantor
on behalf of itself and its Affiliates represents to Buyer and its Affiliates that neither Guarantor, nor any of its Affiliates,
is a Prohibited Investor, and Guarantor is not acting on behalf of or for the benefit of any Prohibited Investor. Guarantor agrees
to promptly notify Buyer or a person appointed by Buyer to administer their anti-money laundering program, if applicable, of any
change in information affecting this representation and covenant.

 

(c)          Office
of Foreign Assets Control. Guarantor warrants, represents and covenants that neither Guarantor nor any of its Affiliates are
or will be an entity or person (A) that is listed in the Annex to, or is otherwise subject to the provisions of, Executive
Order 13224 issued on September 24, 2001 (“EO13224”); (B) whose name appears on the United States
Treasury Department’s Office of Foreign Assets Control’s most current list of “Specifically Designed National
and Blocked Persons”; (C) who commits, threatens to commit or supports “terrorism”, as that term is defined
in EO13224; or (D) who is otherwise affiliated with any entity or person listed above (any and all parties or persons described
in (A) through (D) above are herein referred to as a “Prohibited Person”). Guarantor covenants and
agrees that neither it nor any of its Affiliates will knowingly (1) conduct any business, nor engage in any transaction or
dealing, with any Prohibited Person or (2) engage in or conspire to engage in any transaction that evades or avoids or that
the purpose of evading or avoiding any of the prohibitions of EO13224. Guarantor further covenants and agrees to deliver to Buyer
any such certification or other evidence as may be requested by Buyer in its sole and absolute discretion, confirming that neither
it nor any of its Affiliates is a Prohibited Person and neither Guarantor nor any of its Affiliates has knowingly engaged in any
business transaction or dealings with a Prohibited Person, including, but not limited to, the making or receiving any contribution
of funds, goods or services to or for the benefit of a Prohibited Person.

 

(d)          Financial
Reporting. Guarantor shall provide, or cause to be provided, to Buyer the following financial and reporting information:

 

(i)          Within
forty-five (45) calendar days after the last day of each of the first three fiscal quarters in any fiscal year, a quarterly reporting
package substantially in the form of Exhibit III-B attached to the Repurchase Agreement;

 

    	-8-

    	 

    

  

(ii)         Within
ninety (90) calendar days after the last day of its fiscal year, an annual reporting package substantially in the form of Exhibit
III-C attached to the Repurchase Agreement; and

 

(iii)        Upon
Buyer’s request, copies of Guarantor’s consolidated Federal Income Tax returns, if any, delivered within thirty (30)
days after the earlier of (A) filing or (B) the last filing extension period.

 

(e)          Compliance
with Obligations and Laws. Guarantor shall at all times (i) comply with all contractual obligations, (ii) comply in all respects
with all laws, ordinances, rules, regulations and orders (including, without limitation, Environmental Laws) of any Governmental
Authority or any other federal, state, municipal or other public authority having jurisdiction over Guarantor or any of its assets,
(iii) maintain and preserve its legal existence, and (iv) preserve all of its rights, privileges, licenses and franchises necessary
for the operation of its business.

 

(f)          Books
and Records. Guarantor shall at all times keep proper books of records and accounts in which full, true and correct entries
shall be made of its transactions in accordance with GAAP, and set aside on its books from its earnings for each fiscal year all
such proper reserves in accordance with GAAP.

 

(g)          Change
of Name; Place of Business. Guarantor shall advise Buyer in writing of the opening of any new chief executive office or the
closing of any such office of Guarantor and of any change in Guarantor’s name or jurisdiction of organization not less than
fifteen (15) Business Days prior to taking any such action.

 

11.         Right
of Set-off. Guarantor hereby irrevocably authorizes Buyer and its Affiliates, without notice to Guarantor, any such notice
being expressly waived by Guarantor, to set-off and appropriate and apply any and all deposits (general or special, time or demand,
provisional or final), in any currency, and any other credits, indebtedness or claims, in any currency, in each case whether direct
or indirect, absolute or contingent, matured or unmatured, at any time held or owing by Buyer to or for the credit or the account
of Guarantor, or any part thereof in such amounts as Buyer may elect, against and on account of the obligations and liabilities
of Guarantor to Buyer hereunder and claims of every nature and description of Buyer against Guarantor, in any currency, arising
under any Governing Agreement, as Buyer may elect, whether or not Buyer has made any demand for payment and although such obligations,
liabilities and claims may be contingent or unmatured. Buyer shall notify Guarantor promptly of any such set-off and the application
made by Buyer, provided that the failure to give such notice shall not affect the validity of such set-off and application.
The rights of Buyer under this Section 11 are in addition to other rights and remedies (including, without limitation, other
rights of set-off) that the Buyer may have.

 

12.         Severability.
Any provision of this Guarantee that 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.

 

    	-9-

    	 

    

  

13.         Section
Headings. The section headings used in this Guarantee are for convenience of reference only and shall not affect the interpretation
or construction of this Guarantee.

 

14.         No
Waiver; Cumulative Remedies. Buyer shall not by any act (except by a written instrument pursuant to Section 15 hereof),
delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any default
or event of 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 Buyer, 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 Buyer of any right or remedy hereunder on any one occasion shall not be construed as a bar to any
right or remedy that Buyer would otherwise have on any future occasion. The rights and remedies herein provided are cumulative,
may be exercised singly or concurrently and are not exclusive of any rights or remedies provided by law.

 

15.         Waivers
and Amendments; Successors and Assigns; Governing Law. None of the terms or provisions of this Guarantee may be waived, amended,
supplemented or otherwise modified except by a written instrument executed by Guarantor and Buyer, except that any provision of
this Guarantee may be waived by Buyer in a letter or agreement specifically waiving such terms and executed solely by Buyer. This
Guarantee shall be binding upon Guarantor’s successors and assigns and shall inure to the benefit of Buyer, and Buyer’s
respective successors and assigns. THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THE INTERPRETATION OF THIS GUARANTEE
SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAW) APPLICABLE TO CONTRACTS
EXECUTED AND TO BE PERFORMED IN SUCH STATE. THIS CHOICE OF LAW IS MADE PURSUANT TO NEW YORK GENERAL OBLIGATION LAW SECTION 5-1401.
THE PARTIES CONSENT TO THE PERSONAL JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK IN CONNECTION WITH ANY CLAIM OR DISPUTE
ARISING OUT OF OR RELATING TO THIS GUARANTEE AND WAIVE ANY OBJECTION AS TO VENUE IN THE BOROUGH OF MANHATTAN, STATE OF NEW YORK.
THIS CHOICE OF VENUE IS MADE PURSUANT TO NEW YORK GENERAL OBLIGATION LAW SECTION 5-1402.

 

    	-10-

    	 

    

  

16.         Notices.
Notices by Buyer to Guarantor shall be given in writing, addressed to Guarantor at the address or transmission number set forth
under its signature below and shall be effective for all purposes if hand delivered or sent by (a) hand delivery, with proof of
delivery, (b) certified or registered United States mail, postage prepaid, (c) expedited prepaid delivery service, either commercial
or United States Postal Service, with proof of delivery or (d) by email, provided that such email notice must also be delivered
by one of the means set forth above, to the address or transmission number set forth under its signature below or at such other
address and person as shall be designated from time to time by Guarantor, as the case may be, in a written notice to Buyer. A notice
shall be deemed to have been given: (w) in the case of hand delivery, at the time of delivery, (x) in the case of registered or
certified mail, when delivered or the first attempted delivery on a Business Day, (y) in the case of expedited prepaid delivery
upon the first attempted delivery on a Business Day, or (z) in the case of email, upon receipt of confirmation, provided
that such email notice was also delivered as required in this Section 16. If Guarantor receives a notice that does not comply
with the technical requirements for notice under this Section 16 it may elect to waive any deficiencies and treat the notice
as having been properly given. Notice by Guarantor to Buyer shall be given in the manner set forth in Article 15 of the Repurchase
Agreement.

 

17.         SUBMISSION
TO JURISDICTION; WAIVERS. GUARANTOR HEREBY IRREVOCABLY AND UNCONDITIONALLY:

 

(A)         SUBMITS
IN ANY LEGAL ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS GUARANTEE OR THE OTHER LOAN DOCUMENTS TO WHICH GUARANTOR IS
A PARTY, OR FOR RECOGNITION AND ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF, TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF
THE STATE OF NEW YORK, THE COURTS OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK, AND APPELLATE COURTS FROM
ANY THEREOF;

 

(B)         CONSENTS
THAT ANY SUCH ACTION OR PROCEEDING MAY BE BROUGHT IN SUCH COURTS AND WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO
THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT COURT
AND AGREES NOT TO PLEAD OR CLAIM THE SAME;

 

(C)         AGREES
THAT SERVICE OF PROCESS IN ANY SUCH ACTION OR PROCEEDING MAY BE EFFECTED BY MAILING A COPY THEREOF BY REGISTERED OR CERTIFIED MAIL
(OR ANY SUBSTANTIALLY SIMILAR FORM OF MAIL), POSTAGE PREPAID, TO GUARANTOR AT ITS ADDRESS SET FORTH UNDER GUARANTOR’S SIGNATURE
BELOW OR AT SUCH OTHER ADDRESS OF WHICH BUYER SHALL HAVE BEEN NOTIFIED IN WRITING BY GUARANTOR; AND

 

(D)         AGREES
THAT NOTHING HEREIN SHALL AFFECT THE RIGHT TO EFFECT SERVICE OF PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE
RIGHT TO SUE IN ANY OTHER JURISDICTION.

 

18.         Integration.
This Guarantee represents the agreement of Guarantor with respect to the subject matter hereof and there are no promises or representations
by Buyer relative to the subject matter hereof not reflected herein.

 

19.         Execution.
This Guarantee may be executed in counterparts, each of which so executed shall be deemed to be an original, but all of such counterparts
shall together constitute but one and the same instrument. Delivery by telecopier or other electronic transmission (including a
..pdf e-mail transmission) of an executed counterpart of a signature page to this Guarantee shall be effective as delivery of an
original executed counterpart of this Guarantee.

 

    	-11-

    	 

    

  

20.         Acknowledgments.
Guarantor hereby acknowledges that:

 

(a)          it
has been advised by counsel in the negotiation, execution and delivery of this Guarantee and the related documents;

 

(b)          Buyer
has no fiduciary relationship to it, and the relationship between Buyer and Guarantor is solely that of surety and creditor; and

 

(c)          no
joint venture exists between or among any of Buyer, on the one hand, and Seller, Parent and/or Guarantor on the other hand.

 

21.         Intent.
Guarantor intends for this Guarantee to be a credit enhancement related to a repurchase agreement, within the meaning of Section
101(47) of the Bankruptcy Code and, therefore, for this Guarantee to be itself a repurchase agreement, within the meaning of Section
101(47) and Section 559 of the Bankruptcy Code.

 

22.         WAIVERS
OF JURY TRIAL. GUARANTOR HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING ARISING OUT
OF OR RELATING TO THIS GUARANTEE OR ANY RELATED DOCUMENT AND FOR ANY COUNTERCLAIM HEREIN OR THEREIN.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

    	-12-

    	 

    

  

IN WITNESS WHEREOF, the
undersigned has caused this Guarantee to be duly executed and delivered as of the date first above written.

 

	 	ARC REALTY FINANCE TRUST, INC., a 

Maryland corporation
	 	 
	 	By:	/s/ Marc A. Tolchin
	 	 	Name: Marc A. Tolchin
	 	 	Title: Authorized Signatory
	 	 	 
	 	Address:
	 	 
	 	405 Park Avenue, 3rd Floor  
	 	New York, New York 10022
	 	Attention:  Marc A. Tolchin, Esq.
	 	Email: mtolchin@arlcap.com
	 	 
	 	with a copy to:
	 	 
	 	Allen & Overy LLP
	 	1221 Avenue of the Americas
	 	New York, New York 10010
	 	Attention:  Robert J. Grados, Esq.
	 	Telephone:  (212) 610-6455
	 	Telecopy:   (212) 610-6399

 

    	-13-

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