Document:

exhibit102

                                                        EXECUTION VERSION                               GPMT 2018-FL1, LTD.,                                    as Issuer,                 WELLS FARGO BANK, NATIONAL ASSOCIATION,                          as Preferred Share Paying Agent,                                       and                              MAPLESFS LIMITED,                     as Preferred Share Registrar and Administrator               PREFERRED SHARE PAYING AGENCY AGREEMENT                              Dated as of May 9, 2018   24582442.6 

 

                            TABLE OF CONTENTS                                                                            Page  ARTICLE I. DEFINITIONS ...........................................................................................................1  Section 1.1. Definitions.............................................................................................................1 Section 1.2. Rules of Construction. ..........................................................................................5  ARTICLE II. THE PREFERRED SHARES ...................................................................................5  Section 2.1. Form of Preferred Shares......................................................................................5 Section 2.2. Execution; Delivery; Dating and Cancellation. ....................................................6 Section 2.3. Registration...........................................................................................................7 Section 2.4. Registration of Transfer and Exchange of Preferred Shares.................................8 Section 2.5. Transfer and Exchange of Preferred Shares..........................................................9 Section 2.6. [Reserved.]..........................................................................................................12 Section 2.7. Non-Permitted Holders. ......................................................................................12 Section 2.8. Certain Tax Matters. ...........................................................................................13 Section 2.9. Provisions of the Indenture and Servicing Agreement. ......................................13  ARTICLE III. DISTRIBUTIONS TO THE HOLDERS...............................................................13  Section 3.1. Disbursement of Funds. ......................................................................................13 Section 3.2. Condition to Payments........................................................................................15 Section 3.3. The Preferred Share Payment Account...............................................................16 Section 3.4. Redemption.........................................................................................................16 Section 3.5. Fees or Commissions in Connection with Disbursements..................................16 Section 3.6. Liability of the Preferred Share Paying Agent in Connection with                Disbursements..................................................................................................17  ARTICLE IV. ACCOUNTING AND REPORTS.........................................................................17  Section 4.1. Reports and Notices. ...........................................................................................17 Section 4.2. Notice of Plan Assets..........................................................................................17 Section 4.3. Requests by Independent Accountants. ..............................................................18 Section 4.4. Rule 144A Information.......................................................................................18 Section 4.5. Tax Information. .................................................................................................18  ARTICLE V. THE PREFERRED SHARE PAYING AGENT.....................................................19  Section 5.1. Appointment of Preferred Share Paying Agent. .................................................19 Section 5.2. Resignation and Removal. ..................................................................................19 Section 5.3. Fees; Expenses; Indemnification; Liability. .......................................................19   24582442.6                            -i- 

 

ARTICLE VI. [RESERVED] ........................................................................................................21  ARTICLE VII. MISCELLANEOUS PROVISIONS ....................................................................21  Section 7.1. Amendment.........................................................................................................21 Section 7.2. Notices; Rule 17g-5 Procedures..........................................................................21 Section 7.3. Governing Law. ..................................................................................................22 Section 7.4. Non-Petition; Limited Recourse. ........................................................................22 Section 7.5. No Partnership or Joint Venture. ........................................................................22 Section 7.6. Counterparts........................................................................................................22  Exhibit A   Form of Preferred Share Exhibit B   Form of Purchaser Certificate   24582442.6                           -ii- 

 

            This PREFERRED     SHARE   PAYING    AGENCY    AGREEMENT      (this “Agreement”) is dated as of May 9, 2018, by and among GPMT 2018-FL1, LTD., an exempted company incorporated with limited liability under the laws of the Cayman Islands (the “Issuer”), WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as paying agent for the Preferred Shares (in such capacity, the “Preferred Share Paying Agent”), and MAPLESFS LIMITED, a licensed trust company incorporated in the Cayman Islands, as administrator (in such capacity, the “Administrator”) and share registrar for the Preferred Shares (in such capacity, the “Preferred Share Registrar”).                           PRELIMINARY STATEMENT              As authorized by the Issuer and permitted under the terms of the Issuer’s Amended and Restated Memorandum and Articles of Association (the “Memorandum and Articles”) as may be hereafter amended and in effect from time to time, the Issuer has a duly authorized share capital consisting of 250 ordinary voting shares, par value U.S.$1.00 per share, all of which will have been issued by the Issuer and are outstanding on the Closing Date, and 94,022.414 Preferred Shares, consisting of (i) 94,020.414 shares of Class P Preferred Shares (the “Class P Preferred Shares”), having a par value U.S.$0.001 per share and with an aggregate liquidation preference and notional amount equal to U.S.$1,000 per share; (ii) one share of Class X Preferred Shares (the “Class X Preferred Shares”), having a par value U.S.$0.001 per share and with an aggregate notional amount equal to the Class X Preferred Share Notional Amount (as defined herein) and a liquidation preference equal to U.S.$1,000 per share and (iii) one share of Class R Preferred Shares (the “Class R Preferred Shares”), having a par value U.S.$0.001 per share and with an aggregate liquidation preference and notional amount equal to U.S.$1,000 per share (the Class P Preferred Shares, the Class X Preferred Shares and the Class R Preferred Shares are collectively referred to herein as the “Preferred Shares”), all of which have been issued on the date hereof on the terms and provisions set forth herein. The distributions on each of the Preferred Shares will be payable in accordance with the Memorandum and Articles, the Indenture (as defined below), and this Agreement. The Issuer has entered into this Agreement to provide for the payment of such distributions.              All representations, covenants and agreements made herein by the Issuer and the Preferred Share Paying Agent are for the benefit of the Holders. The Issuer is entering into this Agreement, and the Preferred Share Paying Agent, the Administrator and the Preferred Share Registrar are accepting their obligations hereunder, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged.                                   ARTICLE I.                                  DEFINITIONS              Section 1.1. Definitions.              Capitalized terms used but not defined herein have the respective meanings given to such terms in the Indenture and, if not defined therein, in the Memorandum and Articles, and are incorporated by reference herein. As used herein, the following terms have the following   24582442.6 

 

respective meanings and the definitions of such terms are equally applicable both in the singular and the plural forms of such terms and in the masculine, feminine and neuter genders of such terms:              “Administrator”: The meaning set forth in the Preliminary Statement to this Agreement.              “Affiliate” or “Affiliated”: With respect to a Person, (i) any other Person who, directly or indirectly, is in control of, or controlled by, or is under common control with, such Person or (ii) any other Person who is a director, Officer or employee (a) of such Person, (b) of any subsidiary or parent company of such Person or (c) of any Person described in clause (i) above. For the purposes of this definition, control of a Person shall mean the power, direct or indirect, (i) to vote more than 50% of the securities having ordinary voting power for the election of directors of such Person, or (ii) to direct or cause the direction of the management and policies of such Person whether by contract or otherwise; provided that neither the Administrator nor any other company, corporation or person to which the Administrator provides directors and/or administrative services and/or acts as share trustee shall be an Affiliate of the Issuer or Co-Issuer.              “Agreement”: The meaning set forth in the Preliminary Statement to this Agreement.              “Authorized Denomination”: Any integral number of Preferred Shares equal to or greater than 250 shares and integral multiples of one share in excess thereof.              “Available Funds”: With respect to each Payment Date, the amount (if any) of distributions received by the Preferred Share Paying Agent from the Issuer or the Trustee under the Priority of Payments under the Indenture for payments on the Preferred Shares.              “Bank”: Wells Fargo Bank, National Association, a national banking association.              “Benefit Plan Investor”: (A) An “employee benefit plan” (as defined in Section 3(3) of ERISA) that is subject to Title I of ERISA, (B) a “plan” within the meaning of Section 4975(e)(1) of the Code that is subject to Section 4975 of the Code, or (C) any entity whose underlying assets include “plan assets” by reason of such employee benefit plan’s or plan’s investment in the entity or otherwise.              “Business Day”: Each Business Day under the Indenture.              “Class P Preferred Share”: The Class P Preferred Shares issued by the Issuer pursuant to the Memorandum and Articles.              “Class P Preferred Share Notional Amount”: $94,020,414.00.              “Class P Preferred Shares Stated Redemption Price”: The meaning set forth in Section 3.1(a) hereof.              “Class R Preferred Share”: The Class R Preferred Shares issued by the Issuer pursuant to the Memorandum and Articles.   24582442.6                           -2- 

 

            “Class X Preferred Share”: The Class X Preferred Shares issued by the Issuer pursuant to the Memorandum and Articles.              “Class X Preferred Rate”: With respect to any Payment Date, a per annum rate (greater than or equal to zero) equal to: (a)(i) the total amount of Interest Proceeds available for actual payment to the holders of the Notes and the Preferred Shares on such Payment Date less (ii) the total amount of Interest Proceeds distributed on such Payment Date to the holders of the Notes and the Class P Preferred Shares, divided by (b) the outstanding Class X Preferred Share Notional Amount, expressed as a percentage and as an annualized rate on an actual/360 basis in order to produce the aggregate amount of interest described in clause (a) to accrue on the outstanding Class X Preferred Share Notional Amount during the related Interest Accrual Period.              “Class X Preferred Share Notional Amount”: The meaning set forth in Section 3.1(b) hereof..              “Closing Date”: May 9, 2018.              “Co-Issuer”: GPMT 2018-FL1 LLC, a Delaware limited liability company.              “Code”: The United States Internal Revenue Code of 1986, as amended.              “EHRI”: The Preferred Shares, which are retained by the Retention Holder on the Closing Date.              “FATCA”: Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantially comparable) and any current or future treasury regulations promulgated thereunder, and any related provisions of law, court decisions, administrative guidance or agreements with any taxing authority (or laws thereof) in respect thereof, including any agreements entered into pursuant to Section 1471(b)(1) of the Code or any U.S. or non-U.S. fiscal or regulatory legislation, rules, guidance notes or practices adopted pursuant to any intergovernmental agreement entered into in connection with the implementation of such Sections of the Code or analogous provisions of non-U.S. law.              “Holder”: With respect to any Preferred Shares, the Person in whose name such Preferred Shares are registered in the Preferred Share Register.              “Indenture”: The indenture dated as of May 9, 2018 among the Issuer, the Co- Issuer, the Bank, as note administrator, GPMT Seller LLC, as advancing agent and Wilmington Trust, National Association, as trustee (the “Trustee”), as amended from time to time in accordance with the terms thereof.              “Institutional Accredited Investor”: An institution that is an “accredited investor” as described in clause (1), (2), (3) or (7) of Rule 501(a) of Regulation D under the Securities Act or an entity in which all of the equity owners are such “accredited investors.”              “Investment Company Act”: Investment Company Act of 1940, as amended.   24582442.6                           -3- 

 

            “Issuer Order”: A written order or request dated and signed in the name of the Issuer by an Authorized Officer of the Issuer.              “Majority”: The Holders of more than 50% of the aggregate outstanding Preferred Shares.              “Memorandum and Articles”: The meaning set forth in the Preliminary Statement to this Agreement.              “Non-Permitted Holder”: (a) Any U.S. person (as defined in Regulation S) that becomes the beneficial owner of any Preferred Shares or interest in Preferred Shares and is not a Qualified Institutional Buyer, (b) any Person for which the representations made, or deemed to be made, by such Person for purposes of ERISA, Section 4975 of the Code or applicable Similar Law in any representation letter or Purchaser Certificate, or by virtue of deemed representations are or become untrue, or (c) any Benefit Plan Investor.              “Notes”: The Class A Notes, the Class A-S Notes, the Class B Notes, the Class C Notes, the Class D Notes, the Class E Notes and the Class F Notes, collectively, authorized by, and authenticated and delivered under, the Indenture.              “Ordinary Shares”: The 250 ordinary shares, U.S.$1.00 par value per share, of the Issuer which have been issued by the Issuer and are outstanding from time to time.              “Payment Date”: Each Payment Date under the Indenture (including the Stated Maturity Date and any Redemption Date).              “Plan Asset Regulation”: U.S. Department of Labor regulations 29 C.F.R. Section 2510.3-101, as modified by Section 3(42) of ERISA.              “Preferred Share Certificate”: Any Preferred Share represented by a physical certificate in definitive, fully registered, certificated form set forth in Exhibit A.              “Preferred Share Paying Agent”: The Bank, solely in its capacity as Preferred Share Paying Agent under this Agreement, unless a successor Person shall have become the Preferred Share Paying Agent pursuant to the applicable provisions of this Agreement, and thereafter “Preferred Share Paying Agent” shall mean such successor Person.              “Preferred Share Payment Account”: The meaning set forth in Section 3.3.              “Preferred Share Register”: The register of members maintained by the Preferred Share Registrar.              “Preferred Shares”: The meaning set forth in the Preliminary Statement to this Agreement.              “Purchaser”: Each purchaser of an interest in Preferred Shares, including any account for which it is acting.   24582442.6                           -4- 

 

            “Purchaser Certificate”: A certificate substantially in the form of Exhibit B attached hereto, duly completed as appropriate.              “Qualified Institutional Buyer”: Any Person that, at the time of its acquisition, purported acquisition or proposed acquisition of Preferred Shares, is a qualified institutional buyer within the meaning of Rule 144A.              “Qualified Purchaser”: Any Person that, at the time of its acquisition, purported acquisition or proposed acquisition of Preferred Shares, is a qualified purchaser within the meaning of the Investment Company Act.              “Record Date”: With respect to any Payment Date, the date that is 15 days (whether or not a Business Day) prior to such Payment Date.              “Redemption Date”: The earlier of (i) the Stated Maturity Date and (ii) the Payment Date on which a redemption of the Preferred Shares occurs.              “Redemption Price”: The Redemption Price for the Preferred Shares calculated in accordance with the procedures set forth in the Indenture.              “Retention Holder”: GPMT CLO Holdings LLC, a Delaware limited liability company.              “Rule 144A Information”: The meaning set forth in Section 4.4.              “Similar Law”: Any local, state, federal, non-U.S. or other law that is substantially similar to the fiduciary responsibility or prohibited transaction provisions of ERISA or Section 4975 of the Code.              “Specified Person”: The meaning set forth in Section 2.2(g).              “U.S. Person”: As defined in Regulation S under the Securities Act.              Section 1.2. Rules of Construction.              (a)   The Article and Section headings herein and the Table of Contents are for convenience only and shall not affect the construction hereof.              (b)   References to Preferred Shares and Certificates shall, when the context requires, be construed to mean the Preferred Share Certificate representing the same.                                   ARTICLE II.                            THE PREFERRED SHARES              Section 2.1. Form of Preferred Shares.              The Preferred Shares shall be duly executed by the Issuer and delivered by the Preferred Share Paying Agent as hereinafter provided.   24582442.6                           -5- 

 

            Section 2.2. Execution; Delivery; Dating and Cancellation.              (a)   Any Preferred Share Certificates shall be executed on behalf of the Issuer by one or more Authorized Officers of the Issuer. The signature of such Authorized Officer on a Preferred Share Certificate may be manual or facsimile.              (b)   Preferred Share Certificates bearing the signatures of individuals who were at any time the Authorized Officers of the Issuer shall bind the Issuer, notwithstanding the fact that such individuals or any of them have ceased to hold such offices prior to the delivery of such Preferred Share Certificates or did not hold such offices at the date of issuance of such Preferred Shares.              (c)   At any time and from time to time after the execution of this Agreement, the Issuer may deliver Preferred Share Certificates executed by the Issuer to the Preferred Share Paying Agent for authentication, and the Preferred Share Paying Agent, upon Issuer Order, shall authenticate and deliver such Preferred Share Certificates as directed by the Issuer.              (d)   All Preferred Share Certificates authenticated and delivered by the Preferred Share Paying Agent upon Issuer Order on the Closing Date shall be dated on the Closing Date. All other Preferred Share Certificates that are authenticated after the Closing Date for any other purpose under this Agreement shall be dated on the date of their execution.              (e)   No Preferred Share Certificate shall be entitled to any benefit under this Preferred Share Paying Agency Agreement or be valid or obligatory for any purpose, unless there appears on such Preferred Share Certificate a Preferred Share Certificate of Authentication, substantially in the form provided for herein, executed by the Preferred Share Paying Agent by the manual signature of one of their Authorized Officers, and such certificate upon any Preferred Share Certificate shall be conclusive evidence, and the only evidence, that such Preferred Share Certificate has been duly authenticated and delivered hereunder.              (f)   All Preferred Share Certificates surrendered for registration of transfer or exchange, or deemed lost or stolen, shall, if surrendered to any Person other than the Preferred Share Paying Agent, be delivered to the Preferred Share Paying Agent, and shall promptly be canceled. No Preferred Share Certificates shall be issued in lieu of or in exchange for any Preferred Share Certificates canceled as provided in this Section 2.2(f), except as expressly permitted by this Agreement. All canceled Preferred Share Certificates held by the Preferred Share Paying Agent shall be destroyed or held by the Preferred Share Paying Agent in accordance with its standard retention policy.              (g)   If (i) any mutilated or defaced Preferred Share Certificate is surrendered to the Preferred Share Paying Agent, or if there shall be delivered to the Issuer or the Preferred Share Paying Agent (each, a “Specified Person”) evidence to their reasonable satisfaction of the destruction, loss or theft of any Preferred Share Certificate, and (ii) there is delivered to each Specified Person such security or indemnity as may be required by each Specified Person to save each of them and any agent of any of them harmless, then, in the absence of notice to the Specified Persons that such Preferred Share Certificate has been acquired by a bona fide purchaser, the Issuer shall execute in lieu of any such mutilated, defaced, destroyed, lost or stolen Preferred Share   24582442.6                           -6- 

 

Certificate, a new Preferred Share Certificate, of like tenor (including the same date of issuance) and equal principal amount, registered in the same manner, dated the date of its authentication, bearing interest from the date to which interest has been paid on the mutilated, defaced, destroyed, lost or stolen Preferred Share Certificate and bearing a number not contemporaneously outstanding.                    If, after delivery of such new Preferred Share Certificate, a bona fide purchaser of the predecessor Preferred Share Certificate presents for payment, transfer or exchange such predecessor Preferred Share Certificate, any Specified Person shall be entitled to recover such new Preferred Share Certificate from the Person to whom it was delivered or any Person taking therefrom, and each Specified Person shall be entitled to recover upon the security or indemnity provided therefor to the extent of any loss, damage, cost or expense incurred by such Specified Person in connection therewith.                    In case any such mutilated, defaced, destroyed, lost or stolen Preferred Share Certificate has become due and payable, the Issuer, in its discretion may, instead of issuing a new Preferred Share Certificate, pay such Preferred Share Certificate without requiring surrender thereof except that any mutilated or defaced Preferred Share Certificate shall be surrendered.                    Upon the issuance of any new Preferred Share Certificate under this Section 2.2(g), the Issuer may require the payment by the registered Holder thereof of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Preferred Share Paying Agent) connected therewith.                    Every new Preferred Share Certificate issued pursuant to this Section 2.2(g) in lieu of any mutilated, defaced, destroyed, lost or stolen Preferred Share Certificate shall constitute an original additional contractual obligation of the Issuer, and such new Preferred Share Certificate shall be entitled, subject to this Section 2.2(g), to all the benefits of this Agreement equally and proportionately with any and all other Preferred Share Certificates duly issued hereunder.                    The provisions of this Section 2.2(g) are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, defaced, destroyed, lost or stolen Preferred Share Certificates.              Section 2.3. Registration.              (a)   The Issuer shall keep or cause to be kept the Preferred Share Register in which, subject to such reasonable regulations as it may prescribe, the Preferred Share Registrar shall provide for the registration of holders of, and the registration of transfers and exchanges of, Preferred Shares and Ordinary Shares. The Administrator is hereby initially appointed as agent of the Issuer to act as the “Preferred Share Registrar” for the purpose of maintaining the Preferred Share Register and registering and recording in the Preferred Share Register the Preferred Shares and transfers of such Preferred Shares as herein provided. Upon any resignation or removal of the Preferred Share Registrar, the Issuer shall promptly appoint a successor. The Preferred Share Paying Agent shall promptly provide the Preferred Share Registrar with all information necessary   24582442.6                           -7- 

 

to prepare and maintain the Preferred Share Register. The Preferred Share Registrar shall be entitled to rely on such information provided to it pursuant to the preceding sentence without any liability on its part.              (b)   The Preferred Share Paying Agent shall maintain a duplicate share register and shall be entitled to conclusively rely on such duplicate share register for the purpose of payment on the Preferred Shares. The Preferred Share Paying Agent shall have the right to inspect the Preferred Share Register at all reasonable times and to obtain copies thereof and the Preferred Share Paying Agent shall have the right to rely upon a certificate executed on behalf of such Preferred Share Registrar by an Authorized Officer thereof as to the names and addresses of the Holders and the numbers of such Preferred Shares. If either party becomes aware of any discrepancies between the Preferred Share Register and the duplicate share register, it shall promptly inform the other of the same and the Preferred Share Registrar and the Preferred Share Paying Agent shall cooperatively ensure that the Preferred Share Register and the duplicate share register are reconciled in a timely manner and in any case prior to the next Record Date. Notwithstanding anything to the contrary herein, the Preferred Share Paying Agent shall have no duty to monitor or determine whether any discrepancies exist between the two registers.              Section 2.4. Registration of Transfer and Exchange of Preferred Shares.              (a)   Subject to this Section 2.4 and Section 2.5, upon surrender for registration of transfer of any Preferred Share Certificates at the offices of the Issuer or the Preferred Share Paying Agent in compliance with the restrictions set forth in any legend appearing on any such Preferred Share Certificate, the Issuer shall execute and the Preferred Share Paying Agent shall deliver, in the name of the designated transferee or transferees, one or more new Preferred Share Certificates, each in an Authorized Denomination, of like terms and of a like number.              (b)   Subject to this Section 2.4 and Section 2.5, at the option of the Holder, Preferred Shares may be exchanged for Preferred Shares, each in an Authorized Denomination, of like terms and of like number upon surrender of the related Preferred Share Certificate at such office as the Preferred Share Paying Agent may designate for such purposes. Whenever any Preferred Share Certificate is surrendered for exchange, the Issuer shall execute and the Preferred Share Paying Agent shall deliver the Preferred Share Certificate that the Holder making the exchange is entitled to receive.              (c)   Preferred Share Certificates representing Preferred Shares issued upon any registration of transfer or exchange of Preferred Shares shall represent equity interests of the Issuer entitled to the same benefits under this Agreement and the Memorandum and Articles as the Preferred Shares represented by the Preferred Share Certificate surrendered upon such registration of transfer or exchange.              (d)   All Preferred Share Certificates presented or surrendered for registration of transfer or exchange shall be accompanied by an assignment form and a written instrument of transfer each in a form satisfactory to the Issuer and the Preferred Share Paying Agent, duly executed by the Holder thereof or its attorney duly authorized in writing.   24582442.6                           -8- 

 

            (e)   No service charge shall be made to a Holder for any registration of transfer or exchange of Preferred Shares, but the Preferred Share Paying Agent may require payment of a sum sufficient to cover the expenses of delivery (if any) not made by regular mail or any tax or other governmental charge payable in connection therewith.              (f)   The Issuer, the Preferred Share Paying Agent, the Preferred Share Registrar, and any agent of the Issuer, the Preferred Share Paying Agent or the Preferred Share Registrar shall treat the Person in whose name any Preferred Shares are registered on the Preferred Share Register as the owner of such Preferred Shares on the applicable Record Date for the purpose of receiving payments in respect of such Preferred Shares and none of the Issuer, the Preferred Share Paying Agent, the Preferred Share Registrar or any agent of the Issuer, the Preferred Share Paying Agent or the Preferred Share Registrar shall be affected by notice to the contrary.              Section 2.5. Transfer and Exchange of Preferred Shares.              (a)   Restrictions on Transfer.              (i)   As long as any Note is outstanding, the Retention Holder must at all times       own (for U.S. federal income tax purposes) 100% of both the Preferred Shares and the       Ordinary Shares, and will not transfer (whether by means of actual transfer or a transfer of       beneficial ownership for U.S. federal income tax purposes), pledge or hypothecate any of       the Preferred Shares or the Ordinary Shares to any other person, entity or entities, as long       as the Issuer receives an opinion of Dechert LLP, Sidley Austin LLP or another nationally       recognized tax counsel experienced in such matters that such transfer, pledge or       hypothecation will not cause the Issuer to be treated as a foreign corporation engaged in a       trade or business within the United States for U.S. federal income tax purposes or otherwise       to become subject to U.S. federal income tax on a net income basis (or has previously       received an opinion of Dechert LLP, Sidley Austin LLP or another nationally recognized       tax counsel experienced in such matters that the Issuer will be treated as a foreign       corporation that is not engaged in a trade or business within the United States for U.S.       federal income tax purposes, which opinion may be conditioned, in each case, on       compliance with certain restrictions on the investment or other activities of the Issuer and       the Servicer on behalf of the Issuer).              (ii)  No Preferred Shares may be sold or transferred (including, without       limitation, by pledge or hypothecation) unless such sale or transfer is exempt from the       registration requirements of the Securities Act and is exempt under applicable securities       laws of any state or other jurisdiction of the United States.              (b)   No Preferred Shares may be offered, sold, delivered or transferred (including, without limitation, by pledge or hypothecation) except to (i) (A) a non-U.S. person (as defined under Regulation S) in accordance with the requirements of Regulation S or (B) both (x) a Qualified Institutional Buyer and (y) a Qualified Purchaser and (ii) in accordance with any other applicable law.              (c)   No Preferred Shares may be offered, sold or delivered within the United States or to, or for the benefit of, U.S. persons (as defined in Regulation S) except in accordance   24582442.6                           -9- 

 

with Rule 144A or an exemption from the registration requirements of the Securities Act, to Persons purchasing for their own account or for the accounts of one or more Qualified Institutional Buyers for which the purchaser is acting as a fiduciary or agent. Preferred Shares may be sold or resold, as the case may be, in offshore transactions to non-U.S. persons (as defined in Regulation S) in reliance on Regulation S. None of the Issuer, the Preferred Share Paying Agent, the Preferred Share Registrar or any other Person may register the Preferred Shares under the Securities Act or any state securities laws or the applicable laws of any other jurisdiction.              (d)   No transfer of Preferred Shares to a proposed transferee that is or will be, or is acting on behalf of or using any assets of any Person that is or will become, a Benefit Plan Investor will be effective, and the Preferred Share Paying Agent will not process or recognize any such transfer.              Beneficial interests in Preferred Shares may not at any time be acquired or held by or on behalf of a Benefit Plan Investor.              No transfer of Preferred Shares will be effective, and the Issuer and the Preferred Share Paying Agent will not recognize any such transfer, if the transferee’s acquisition, holding or disposition of such interest constitutes or will constitute or otherwise result in a prohibited transaction under Section 406 of ERISA or Section 4975 of the Code (or, in the case of a plan subject to Similar Law, a violation of Similar Law) unless an exemption is available (all of the conditions of which have been satisfied) or any other violation of an applicable requirement of ERISA, the Code or other applicable law.              Notwithstanding anything contained herein to the contrary, the Preferred Share Paying Agent and the Preferred Share Registrar shall not be responsible for ascertaining whether any transfer complies with the registration provisions of or any exemptions from the Securities Act, applicable state securities laws or the applicable laws of any other jurisdiction, ERISA, the Code or the Investment Company Act; provided, that if a Purchaser Certificate is specifically required by the express terms of this Section 2.5 to be delivered to the Preferred Share Paying Agent, the Preferred Share Paying Agent shall be under a duty to receive and examine the same to determine whether or not the certificate conforms on its face to the terms of this Agreement and shall promptly notify the party delivering the same if such Purchaser Certificate does not comply with such terms.              (e)   Transfers and exchanges of Certificates, in whole or in part, shall only be made in accordance with this Section 2.5(e). Any purported transfer or exchange in violation of the foregoing requirements shall be null and void ab initio, the Issuer shall not execute and the Preferred Share Paying Agent shall not deliver Preferred Share Certificates with respect to the transfer or exchange and the Preferred Share Registrar shall not register any such purported transfer.              (i)   Transfer—Preferred Share Certificate to Preferred Share Certificate. If a       Holder of a Preferred Share Certificate wishes at any time to transfer such Preferred Share       Certificate to a Person that will take delivery in the form of Certificates, such Holder may       transfer or cause the transfer of such interest for an equivalent interest in one or more   24582442.6                           -10- 

 

      Certificates (in Authorized Denominations), but only upon delivery of the documents set       forth in the following sentence. Upon receipt by the Preferred Share Paying Agent of:                    (A)   the Preferred Share Certificates properly endorsed for assignment to             the transferee; and                    (B)   a Purchaser Certificate;        the Preferred Share Paying Agent shall cancel such Preferred Share Certificates, arrange       for new Preferred Share Certificates to be executed by the Issuer, and deliver one or more       Preferred Share Certificates registered in the name and number specified in the Purchaser       Certificate (the aggregate number of such Preferred Shares being equal to the interest       delivered to the Preferred Share Paying Agent) and in Authorized Denominations. The       Preferred Share Paying Agent shall record the exchange on the duplicate share register and       instruct the Preferred Share Registrar to, and the Preferred Share Registrar shall upon such       instruction, record the exchange in the Preferred Share Register.              (ii)  Exchange—Preferred Share Certificate to Preferred Share Certificate. If a       Holder of a Preferred Share Certificate wishes at any time to exchange such Preferred Share       Certificate for one or more Certificates, such Holder may exchange or cause such exchange       for an equivalent interest in one or more Certificates (in Authorized Denominations), but       only upon delivery of the documents set forth in the following sentence. Upon receipt by       the Preferred Share Paying Agent of:                    (A)   the Preferred Share Certificates properly endorsed for exchange; and                    (B)   a Purchaser Certificate;        the Preferred Share Paying Agent shall cancel such Preferred Share Certificates, arrange       for new Preferred Share Certificates to be executed by the Issuer, and deliver one or more       such new Preferred Share Certificates, registered in the names and numbers specified in       the Purchaser Certificate (the aggregate number of Preferred Shares being equal to the       number of Preferred Shares delivered to the Preferred Share Paying Agent) and in       Authorized Denominations. The Preferred Share Paying Agent shall record the exchange       on the duplicate share register and instruct the Preferred Share Registrar to, and the       Preferred Share Registrar shall upon such instruction, record the transfer in the Preferred       Share Register.              (f)   Preferred Share Certificates shall bear a legend substantially in the form set forth in Exhibit A unless there is delivered to the Issuer such satisfactory evidence, which may include an Opinion of Counsel, as may be reasonably required by the Issuer to the effect that neither such applicable legend nor the restrictions on transfer set forth therein are required to ensure that transfers thereof comply with the provisions of Rule 144A under, Section 4(2) of, or Regulation S under, the Securities Act, as applicable, and to ensure that neither the Issuer nor the pool of Collateral becomes an investment company required to be registered under the Investment Company Act. Preferred Share Certificates that are delivered to the Preferred Share Paying Agent by or on behalf of the Issuer without such legend shall be conclusive evidence that the Issuer has satisfied any conditions precedent, and the Preferred Share Paying Agent shall have no obligation   24582442.6                           -11- 

 

to determine whether such legend is required. The Preferred Share Paying Agent shall make no representation or warranty to the validity of any Preferred Share, except to the extent of its own signature thereon.              (g)   The Preferred Share Registrar may rely conclusively on any directions given by the Issuer or the Preferred Share Paying Agent in accordance with this Agreement without further review, to effect the transfer of Preferred Shares by making all necessary entries in the Preferred Share Register and shall have no liability for acting in reliance on any such directions.              (h)   Notwithstanding anything contained herein to the contrary, at all times, if a transfer of all or any portion of the EHRI after the Closing Date is to be made, then the Preferred Share Registrar shall refuse to register such transfer unless it receives (and, upon receipt, may conclusively rely upon) (i) a certification from such Holder’s prospective transferee and (ii) a certification from the Holder of the EHRI desiring to effect such transfer, each, in form and substance, acceptable to GPMT Seller LLC. Upon receipt of the foregoing certifications, the Preferred Share Registrar shall, subject to this Section 2.5, reflect such EHRI in the name of the prospective transferee.              Section 2.6. [RESERVED]              Section 2.7. Non-Permitted Holders.              (a)   Notwithstanding any other provision in this Agreement, any transfer of a beneficial interest in Preferred Shares to a Non-Permitted Holder shall be null and void ab initio and any such purported transfer of which the Issuer or the Preferred Share Paying Agent shall have notice may be disregarded by the Issuer and the Preferred Share Paying Agent for all purposes at any time after either of them learns that any Person is or has become a Non-Permitted Holder.              (b)   If any Non-Permitted Holder becomes the beneficial owner of Preferred Shares, the Issuer shall, promptly after discovery of any such Non-Permitted Holder by the Issuer or the Preferred Share Paying Agent (and notice by the Preferred Share Paying Agent to the Issuer, if the Preferred Share Paying Agent makes the discovery), send notice to such Non-Permitted Holder demanding that such Non-Permitted Holder transfer its Preferred Shares or interest to a Person that is not a Non-Permitted Holder within 30 days of the date of such notice. If such Non-Permitted Holder fails to so transfer such Preferred Shares or interest, the Issuer shall have the right, without further notice to the Non-Permitted Holder, to sell such Preferred Shares or interest in Preferred Shares to a purchaser selected by the Issuer that is not a Non-Permitted Holder on such terms as the Issuer may choose. The Issuer may retain an investment bank to act on the Issuer’s behalf or request one or more bids from one or more brokers or other market professionals that regularly deal in securities similar to the Preferred Shares, and the Issuer will sell such Preferred Shares or interest to the highest such bidder. However, the Issuer may select a purchaser by any other means determined by it in its sole discretion. Each Holder of Preferred Shares, the Non-Permitted Holder and each other Person in the chain of title from the Holder to the Non-Permitted Holder, by its acceptance of an interest in the applicable Preferred Shares, agrees to cooperate with the Issuer and the Preferred Share Paying Agent to effect such transfers. The proceeds of such sale, net of any commissions, expenses and taxes due in connection with such sale shall be remitted to the Non-Permitted Holder. The terms and conditions of any sale under   24582442.6                           -12- 

 

this subsection shall be determined in the sole discretion of the Issuer, and none of the Issuer, Preferred Share Registrar or the Preferred Share Paying Agent shall be liable to any Person having an interest in the Preferred Shares sold as a result of any such sale or the exercise of such discretion.              Section 2.8. Certain Tax Matters.              (a)   The Issuer, and each Holder by acceptance of such Preferred Shares, each agree, where permitted by applicable law and unless the Issuer is a Qualified REIT Subsidiary, to treat such Preferred Shares as an equity interest in the Issuer for U.S. federal, State and local income and franchise tax purposes.              (b)   The Issuer and the Preferred Share Paying Agent agree that they do not intend for this Agreement to represent an agreement to enter into a partnership, a joint venture or any other business entity for U.S. federal income tax purposes. The Issuer and the Preferred Share Paying Agent shall not represent or otherwise hold themselves out to the IRS or other third parties as partners in a partnership or members of a joint venture or other business entity for U.S. federal income tax purposes.              (c)   The Issuer shall not elect to be treated as a partnership and neither the Issuer, nor the Preferred Share Paying Agent shall file or cause to be filed any U.S. federal, State or local partnership tax return with respect to this Agreement.              (d)   The Issuer shall take all actions necessary or advisable to allow the Issuer to comply with FATCA, including, appointing any agent or representative to perform due diligence, withholding or reporting obligations of the Issuer pursuant to FATCA. The Issuer shall provide any certification or documentation (including the applicable IRS Form W-9 (or if required, the applicable IRS Form W-8) or any successor form) to any payor (as defined in FATCA) from time to time as provided by law to minimize U.S. withholding tax under FATCA.              Section 2.9. Provisions of the Indenture and Servicing Agreement.              Each Holder of the Preferred Shares, by its acceptance of the Preferred Shares issued hereunder, agrees to be bound by the provisions of the Indenture and Servicing Agreement relating to the Preferred Shares.                                  ARTICLE III.                       DISTRIBUTIONS TO THE HOLDERS              Section 3.1. Disbursement of Funds.              (a)   The Class P Preferred Shares outstanding will have an aggregate stated redemption price from time to time equal to the Aggregate Outstanding Portfolio Balance minus the Aggregate Outstanding Amount of all Classes of Notes (the “Class P Preferred Shares Stated Redemption Price”). The Class P Preferred Shares will have a stated dividend rate of LIBOR index plus 4.25%. Such dividend rate will be applied to the outstanding Class P Preferred Share Notional Amount.   24582442.6                           -13- 

 

            (b)   The Class X Preferred Shares outstanding will have a notional amount from time to time equal to the outstanding Class P Preferred Share Notional Amount (the “Class X Preferred Shares Notional Amount”). The Class X Preferred Shares will have a stated dividend rate of the Class X Preferred Rate. Such dividend rate will be applied to the outstanding Class X Preferred Share Notional Amount.              (c)   The Class R Preferred Shares will be entitled to any amount remaining after all distributions to the Class P Preferred Shares and the Class X Preferred Shares (including, without limitation, any accrued and unpaid dividends and Class P Preferred Shares Stated Redemption Price) have been made in accordance with the priority of distribution described herein.              (d)   Subject to Section 3.2, on each Payment Date (including any Redemption Date and the Stated Maturity Date) the Preferred Share Paying Agent shall apply the Available Funds to make payment (i) of dividends and (ii) with respect to any Redemption Date or Stated Maturity Date, the Redemption Price, to each Holder on the relevant Record Date, on a pro rata basis in accordance with the priority of distribution described herein.              (e)   Notwithstanding the foregoing, in accordance with the provisions of Section 12.1(f) of the Indenture and at any time when the Retention Holder holds 100% of the Preferred Shares, the Retention Holder may designate all or any portion of the Available Funds, which would otherwise be distributed to the Preferred Share Paying Agent for payment on the Preferred Shares, for deposit into the Payment Account as a contribution to the Issuer. Any such amounts paid to the Issuer as a contribution shall be deemed for all purposes as having been paid to the Preferred Share Paying Agent pursuant to the Priority of Payments in the Indenture.              (f)   Payments will be made by wire transfer to a U.S. dollar account maintained by such Holder as notified to the Preferred Share Paying Agent or, in the absence of such notification, by U.S. dollar check delivered by first class mail to the Holder at its address of record. The Preferred Share Registrar shall, upon request, provide the Preferred Share Paying Agent with a certified list of the Holders and all relevant information regarding the Holders as the Preferred Share Paying Agent may require promptly and in each case no later than five Business Days after receipt of such request (or each relevant Record Date, if sooner or if no such request is made); provided, that in no event shall the Preferred Share Registrar be expected to respond in less than two Business Days from receipt of such request.              (g)   Subject to Section 3.1(d), the Preferred Share Paying Agent shall distribute all amounts to be paid in accordance with the Priority of Payments to the holders of the Preferred Shares as follows:              (i)   Interest Proceeds. On each Payment Date, Available Funds that constitute       Interest Proceeds under the Indenture shall be distributed in the following order of priority:                    (A)   to the Class P Preferred Shares, to the extent of accrued and unpaid             dividends thereon;                    (B)   to the Class X Preferred Shares, to the extent of accrued and unpaid             dividends thereon; and   24582442.6                           -14- 

 

                  (C)   to the Class R Preferred Shares, the remaining Interest Proceeds (if             any) in the Preferred Share Paying Account.              (ii)  Principal Proceeds. On each Payment Date, Available Funds that constitute       Principal Proceeds under the Indenture shall be distributed in the following order of       priority:                    (A)   to the Class P Preferred Shares, pro rata based on the aggregate             Class P Preferred Shares Notional Amount, in partial redemption thereof, until the             Class P Preferred Shares Notional Amount has been reduced to zero; and                    (B)   to the Class R Preferred Shares, the remaining Principal Proceeds (if             any) in the Preferred Share Payment Account.              Section 3.2. Condition to Payments.              (a)   As a condition to payment of any amount hereunder without the imposition of U.S. withholding tax, the Preferred Share Paying Agent, on behalf of the Issuer, shall require certification acceptable to it to enable the Issuer and the Preferred Share Paying Agent to determine their duties and liabilities with respect to any taxes or other charges that they may be required to deduct or withhold from payments in respect of the Preferred Shares under any present or future law or regulation of the United States or any present or future law or regulation of any political subdivision thereof or taxing authority therein or to comply with any reporting or other requirements under such law or regulation. Without limiting the foregoing, as a condition to any payment on the Preferred Shares without U.S. federal back-up withholding, the Issuer shall require the delivery of properly completed and signed applicable U.S. federal income tax certifications (generally, an IRS Form W-9 (or applicable successor form) in the case of a Person that is a “United States person” as defined in the Code or an IRS Form W-8BEN or IRS Form W-8BEN- E, as applicable (or applicable successor form), in the case of a Person that is not a “United States person” within the meaning of the Code). In addition, the Issuer or any of its agents shall require (i) complete and accurate information and documentation that may be required to enable the Issuer or any of its agents to comply with FATCA and (ii) each Holder to agree that the Issuer and/or any of its agents may (1) provide such information and documentation and any other information concerning its investment in the Preferred Shares to the Cayman Islands Tax Information Authority (including, without limitation, the properly completed and executed “Entity Self-Certification Form” or “Individual Self-Certification Form” (in the forms published by the Cayman Islands Department for International Tax Cooperation, which forms  can be  obtained at http://www.tia.gov.ky/pdf/CRS_Legislation.pdf)), the U.S. Internal Revenue Service and any other relevant tax authority and (2) take any other actions necessary for the Issuer or the Co-Issuer to comply with FATCA or necessary to provide to the Cayman Islands Tax Information Authority pursuant to the Cayman Islands Tax Information Authority Law (2017 Revision) and the Organization for Economic Co-operation and Development’s Standard for Automatic Exchange of Financial Account Information – Common Reporting Standard (each as amended) (including any implementing legislation, rules, regulations and guidance notes with respect to such laws).   24582442.6                           -15- 

 

            Amounts properly withheld under the Code or other applicable law by any Person from a payment of dividends to any Holder shall be considered as having been paid by the Issuer to such Holder for all purposes of this Agreement.              (b)   [RESERVED]              (c)   Notwithstanding anything in this Agreement to the contrary, distributions of Available Funds on any Payment Date (including any Redemption Date or the Stated Maturity Date), shall be subject to the Issuer being solvent under Cayman Islands law (defined as the Issuer being able to pay its debts as they become due in the ordinary course of business) immediately prior to, and after giving effect to, such payment as determined by the Issuer.              (d)   If the Issuer determines that the condition set forth in subsection (c) above is not satisfied with respect to any portion of the Available Funds on such Payment Date, the Issuer shall instruct the Preferred Share Paying Agent in writing on or before one Business Day prior to such Payment Date that such portion should not be paid, and the Preferred Share Paying Agent shall not pay the same until the first succeeding Payment Date or, in the case of any payments which would otherwise be payable on any Redemption Date or the Stated Maturity Date, until the first succeeding Business Day, upon which the Issuer notifies the Preferred Share Paying Agent in writing that each condition is satisfied. Any amounts so retained will be held in the Preferred Share Payment Account until such amounts are paid, subject to the availability of such funds under Cayman Islands law to pay any liability of the Issuer. In the absence of such notification from the Issuer, the Preferred Share Paying Agent may conclusively assume that the condition set forth in subsection (c) has been satisfied and shall pay the amounts due under this Agreement.              Section 3.3. The Preferred Share Payment Account.              The Preferred Share Paying Agent shall, prior to the Closing Date, establish a single, segregated, non-interest bearing trust account, which shall be designated as the “Preferred Share Payment Account”, for the benefit of the Issuer (the “Preferred Share Payment Account”). The Preferred Share Paying Agent shall promptly credit all Available Funds to the Preferred Share Payment Account. All sums payable by the Preferred Share Paying Agent hereunder shall be paid out of the Preferred Share Payment Account. For the avoidance of doubt, the Preferred Share Payment Account (and interest, if any, earned on amounts on deposit therein) shall be owned by the Issuer (or the related REIT so long as the Issuer is a Qualified REIT Subsidiary) for U.S. federal income tax purposes.              Section 3.4. Redemption.              The Preferred Shares shall be redeemed (in whole but not in part) at the Redemption Price on any Redemption Date or on the Stated Maturity Date (if not redeemed earlier).              Section 3.5. Fees or Commissions in Connection with Disbursements.              All payments by the Preferred Share Paying Agent hereunder shall be made without charging any commission or fee to the Holders.   24582442.6                           -16- 

 

            Section 3.6. Liability of the Preferred Share Paying Agent in Connection with Disbursements.              (a)   Notwithstanding anything herein, the Preferred Share Paying Agent shall not incur any personal liability to pay amounts due to Holders and shall only be required to make payments, including the payment of dividends, if there are sufficient funds in the Preferred Share Payment Account to make such payments.              (b)   Except as otherwise required by applicable law, any funds deposited with the Preferred Share Paying Agent and held in the Preferred Share Payment Account or otherwise held for payment on the Preferred Shares and remaining unclaimed for two years after such payment has become due and payable shall be paid to the Issuer; and the Holder of such Preferred Shares shall thereafter look only to the Issuer for payment of such amounts and all liability of the Preferred Share Paying Agent with respect to such funds (but only to the extent of the amounts so paid to the Issuer) shall thereupon cease. The Preferred Share Paying Agent, before being required to make any such release of payment, may, but shall not be required to, adopt and employ at the expense of the Issuer any reasonable means of notification of such release of payment, including, but not limited to, arranging with the Preferred Share Registrar for the Preferred Share Registrar to mail notice of such release to Holders whose right to or interest in amounts due and payable but not claimed is determinable from the records of the Issuer or Preferred Share Paying Agent, as applicable, at the last address of record of each such Holder.                                  ARTICLE IV.                          ACCOUNTING AND REPORTS              Section 4.1. Reports and Notices.              (a)   The Preferred Share Paying Agent shall cause to be made available to the Holders the reports required to be made available by the Note Administrator pursuant to Section 10.12 of the Indenture.              (b)   The Preferred Share Paying Agent shall notify the Preferred Shareholders of the occurrence of an Event of Default under the Indenture of which it receives notice from the Trustee or the Issuer.              Section 4.2. Notice of Plan Assets.              The Preferred Share Paying Agent has no duty to investigate whether the assets of the Issuer are reasonably likely to be deemed “plan assets” (within the meaning of the Plan Asset Regulation); however, in the event that any officer within the corporate trust office of the Preferred Share Paying Agent (or any successor thereto) working on matters related to the Issuer has actual knowledge that the assets of the Issuer are “plan assets,” the Preferred Share Paying Agent will promptly provide notice to the Preferred Share Registrar for forwarding to the Issuer and the Holders.   24582442.6                           -17- 

 

            Section 4.3. Requests by Independent Accountants.              Upon written request by Independent accountants appointed by the Issuer, the Preferred Share Registrar shall provide to them that information contained in the Preferred Share Register needed for them to provide tax information to the Holders.              Section 4.4. Rule 144A Information.              At any time when the Issuer is not subject to Section 13 or 15(d) of the Exchange Act and is not exempt from reporting pursuant to Rule 12g3-2(b) under the Exchange Act, upon the written request of a Holder, the Issuer shall promptly furnish or cause to be furnished Rule 144A Information, and deliver such Rule 144A Information to such Holder, to a prospective purchaser designated by such Holder or beneficial owner or to the Preferred Share Paying Agent for delivery to such Holder or a prospective purchaser designated by such Holder, in order to permit required or protective compliance by any such Holder with Rule 144A in connection with the resale of any such Preferred Shares. “Rule 144A Information” shall be information that is required by subsection (d)(4) of Rule 144A.              Section 4.5. Tax Information.              If the Issuer is no longer a Qualified REIT Subsidiary, the Issuer shall provide to each beneficial owner of Preferred Shares any information that the beneficial owner reasonably requests in order for the beneficial owner to (i) comply with its federal state, or local tax and information returns and reporting obligations, (ii) make and maintain a “qualified electing fund” election (as defined in the Code) with respect to the Issuer (including a “PFIC Annual Information Statement” as described in Treasury Regulation §1.1295-1(g) (or any successor Treasury Regulation or IRS release or notice), including all representations and statements required by such statement), or (iii) comply with filing requirements that arise as a result of the Issuer being classified as a “controlled foreign corporation” for U.S. federal income tax purposes (such information to be provided at such beneficial owner’s expense); provided that the Issuer shall not file, or cause to be filed, any income or franchise tax return in the United States or any state of the United States unless it shall have obtained advice from Sidley Austin LLP or an opinion of other nationally recognized U.S. tax counsel experienced in such matters prior to such filing that, under the laws of such jurisdiction, the Issuer is required to file such income or franchise tax return.              If required to prevent the withholding or imposition of United States income tax, (i) the Issuer and each beneficial owner shall deliver or cause to be delivered an IRS Form W-9, IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable, or successor applicable form, and (ii) the Issuer, with respect to (as applicable) an item included in the Collateral, shall deliver or cause to be delivered an IRS Form W-9 or IRS Form W-8BEN-E to each issuer, counterparty or Preferred Share Paying Agent at the time such item included in the Collateral is purchased or entered into (or if such item is held at the time that the Issuer ceases to be a Qualified REIT Subsidiary, at that time) and thereafter prior to the expiration or obsolescence of such form.   24582442.6                           -18- 

 

                                 ARTICLE V.                    THE PREFERRED SHARE PAYING AGENT              Section 5.1. Appointment of Preferred Share Paying Agent.              The Issuer hereby appoints the Bank to act as the Preferred Share Paying Agent, and the Bank hereby accepts such appointment. The Issuer hereby appoints the Administrator to act as the Preferred Share Registrar, and the Administrator hereby accepts such appointment. The Issuer hereby authorizes the Preferred Share Paying Agent and the Administrator to perform their respective obligations as provided in this Agreement.              Section 5.2. Resignation and Removal.              The Preferred Share Paying Agent may at any time resign as Preferred Share Paying Agent by giving written notice to the Issuer of its resignation, specifying the date on which its resignation shall become effective (which date shall not be less than 60 days after the date on which such notice is given unless the Issuer shall agree to a shorter period). The Issuer may remove the Preferred Share Paying Agent at any time by giving written notice of not less than 60 days to the Preferred Share Paying Agent specifying the date on which such removal shall become effective. Such resignation or removal shall only take effect upon the appointment by the Issuer of a successor Agent and upon the acceptance of such appointment by such successor Agent or, in the absence of such appointment, the assumption of the duties of the Preferred Share Paying Agent by the Issuer; provided, however, that in any event, such resignation or removal shall take effect not later than one year from the date of such notice of resignation or removal. The Issuer shall provide notice to the Rating Agency of any successor Preferred Share Paying Agent appointed pursuant to this section to the Rating Agency pursuant to this Agreement, provided that no such notice shall be required in the event that the successor Preferred Share Paying Agent is a Person succeeding to all or substantially all of the institutional trust services business of the Preferred Share Paying Agent. If the Preferred Share Paying Agent has resigned or has been terminated under the Indenture, then it shall also be deemed to have been resigned or terminated hereunder.              Section 5.3. Fees; Expenses; Indemnification; Liability.              (a)   Pursuant to, and at the times and to the extent contemplated by the Indenture, the Issuer shall pay to the Preferred Share Paying Agent compensation at such amounts and/or rates as shall be agreed between the Issuer and the Preferred Share Paying Agent and from time to time shall reimburse the Preferred Share Paying Agent for its reasonable out-of-pocket expenses (including reasonable legal fees and expenses), disbursements, and advances incurred or made in accordance with any provisions of this Agreement, except any such expense, disbursement, or advance that may be attributable to its gross negligence, bad faith or willful misconduct. The obligations of the Issuer to the Preferred Share Paying Agent pursuant to the Indenture and this Section 5.3(a) shall survive the resignation or removal of the Trustee and the satisfaction or termination of this Agreement.              (b)   The Issuer shall indemnify and hold harmless the Preferred Share Paying Agent, the Preferred Share Registrar and their respective directors, officers, employees, and agents   24582442.6                           -19- 

 

from and against any and all liabilities, costs and expenses (including reasonable legal fees and expenses) relating to or arising out of or in connection with its or their performance under this Agreement, except to the extent that they are caused by the gross negligence, bad faith, or willful misconduct of the Preferred Share Paying Agent or the Preferred Share Registrar, as the case may be, or any of their respective directors, officers, employees and agents. The foregoing indemnity includes, but is not limited to, any action taken or omitted in good faith within the scope of this Agreement upon telephone, facsimile or other electronically transmitted instructions, if authorized herein, received from or reasonably believed by the Preferred Share Paying Agent or the Preferred Share Registrar, as the case may be, acting in good faith, to have been given by, an Authorized Officer of the Issuer. This indemnity shall be payable in accordance with the Priority of Payments set forth in the Indenture and shall survive the resignation or removal of the Preferred Share Paying Agent or the Preferred Share Registrar, as the case may be, and the satisfaction or termination of this Agreement.              (c)   The Preferred Share Paying Agent shall carry out its duties hereunder in good faith and without gross negligence or willful misconduct. None of the Preferred Share Paying Agent, the Preferred Share Registrar or their respective directors, officers, employees or agents shall be liable for any act or omission hereunder except in the case of gross negligence, bad faith, or willful misconduct of the Preferred Share Paying Agent or the Preferred Share Registrar, as the case may be, in violation of its duties under this Agreement. The duties and obligations of the Preferred Share Paying Agent and the Preferred Share Registrar, as the case may be, and their respective employees or agents shall be determined solely by the express provisions of this Agreement, and they shall not be liable except for the performance of such duties and obligations as are specifically set forth herein, and no implied covenants shall be read into this Agreement against them. The Preferred Share Paying Agent and the Preferred Share Registrar, as the case may be, may consult with counsel and shall be protected in any action reasonably taken in good faith in accordance with the advice of such counsel. Notwithstanding anything contained herein, in no event shall the Preferred Share Paying Agent be liable for special, indirect or consequential loss or damage of any kind whatsoever (including but not limited to lost profits), even if the Preferred Share Paying Agent has been advised of such loss or damage and regardless of the form of action.              (d)   Each of the Preferred Share Paying Agent and the Preferred Share Registrar may rely conclusively on any notice, certificate or other document furnished to it hereunder and reasonably believed by it in good faith to be genuine. Neither the Preferred Share Paying Agent nor the Preferred Share Registrar shall be liable for any action taken by it in good faith and reasonably believed by it to be within the discretion or powers conferred upon it, or taken by it pursuant to any direction or instruction by which it is governed hereunder, or omitted to be taken by it by reason of the lack of direction or instruction required hereby for such action. The Preferred Share Paying Agent and the Preferred Share Registrar shall in no event be liable for the application or misapplication of funds by any other Person, or for the acts or omissions of any other Person. The Preferred Share Paying Agent and the Preferred Share Registrar shall not be bound to make any investigation into the facts or matters stated in any certificate, report or other document; provided that, if the form thereof is prescribed by this Agreement, the Preferred Share Paying Agent and the Preferred Share Registrar shall examine the same to determine whether it conforms on its face to the requirements hereof. The Preferred Share Paying Agent and the Preferred Share Registrar may exercise or carry out any of its duties under this Agreement either directly or   24582442.6                           -20- 

 

indirectly through agents or attorneys, and shall not be responsible for any acts or omissions on the part of any such agent or attorney appointed with due care. To the extent permitted by applicable law, the Preferred Share Paying Agent and the Preferred Share Registrar shall not be required to give any bond or surety in the execution of its duties. The Preferred Share Paying Agent and the Preferred Share Registrar shall not be deemed to have knowledge or notice of any matter unless actually known to a Responsible Officer of the Preferred Share Paying Agent or unless the Preferred Share Paying Agent or the Preferred Share Registrar, as the case may be, has received written notice thereof from the Issuer, the Trustee or the Holder of a Preferred Share.                                  ARTICLE VI.                                  [RESERVED]                                  ARTICLE VII.                         MISCELLANEOUS PROVISIONS              Section 7.1. Amendment.              This Agreement may not be amended by any party hereto except (i) in writing executed by each party hereto and (ii) with the prior written consent of Holders of a Majority of the Preferred Shares.              Section 7.2. Notices; Rule 17g-5 Procedures.              (a)   Except as otherwise expressly provided herein, any notice or other document provided or permitted by this Agreement or the Indenture to be made upon, given or furnished to, or filed with any of the parties hereto shall be sufficient for every purpose hereunder if made, given, furnished or filed in writing and mailed by certified mail, return receipt requested, hand delivered, sent by courier service guaranteeing delivery within two Business Days or transmitted by electronic mail or facsimile in legible form at the following addresses. Any such notice shall be deemed delivered upon receipt unless otherwise provided herein.                    (i)   to the Preferred Share Paying Agent at Wells Fargo Bank, National       Association, 9062 Old Annapolis Road, Columbia, Maryland, 21045-1951 Attention:       Corporate Trust Services (CMBS), GPMT 2018-FL1, or at any other address previously       furnished in writing by the Preferred Share Paying Agent;                    (ii)  to the Issuer at c/o MaplesFS Limited, PO Box 1093, Queensgate       House, Grand Cayman, KY1-1102, Cayman Islands, or at any other address previously       furnished in writing by the Issuer; or                    (iii) to the Preferred Share Registrar at MaplesFS Limited, PO Box 1093,       Queensgate House, Grand Cayman, KY1-1102, Cayman Islands, or at any other address       previously furnished in writing by the Preferred Share Registrar.              (b)   Each of the parties hereto agrees that (i) it will not orally communicate information to the Rating Agency for purposes of determining the initial credit rating of the Notes   24582442.6                           -21- 

 

or undertaking surveillance of the Notes unless such oral communication is summarized in writing and the summary is promptly delivered to the 17g-5 Information Provider to be posted on the 17g-5 Website pursuant to the Indenture, and (ii) it shall cause any notice or other written communication provided by such Person to the Rating Agency to be delivered to the 17g-5 Information Provider at 17g5informationprovider@wellsfargo.com for posting to the 17g-5 Website prior to its delivery to the Rating Agency, and otherwise comply with the Rule 17g-5 Procedures set forth in Section 14.13 of the Indenture.              Section 7.3. Governing Law.              THIS AGREEMENT     AND   ALL  DISPUTES   ARISING  HEREFROM     OR RELATING   HERETO   SHALL   BE  GOVERNED    IN ALL   RESPECTS   (WHETHER   IN CONTRACT OR IN TORT) BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW    YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN WITHOUT REGARD TO THE CONFLICT OF LAWS PRINCIPLES THAT WOULD RESULT IN THE APPLICATION OF ANY LAW        OTHER THAN THE LAW OF THE STATE OF NEW   YORK.              Section 7.4. Non-Petition; Limited Recourse.              None of the Preferred Share Paying Agent, the Preferred Share Registrar or any Holder may, prior to the date which is one year (or if longer the applicable preference period then in effect) plus one day after the payment in full of the Notes, institute against, or join any other Person in instituting against, the Issuer, the Co-Issuer or any Permitted Subsidiary any bankruptcy, reorganization, arrangement, insolvency, moratorium or liquidation proceedings, or other proceedings under Cayman Islands, U.S. federal or state bankruptcy or similar laws of any jurisdiction.              The provisions of this Section 7.4 shall survive termination of this Agreement for any reason whatsoever.              Section 7.5. No Partnership or Joint Venture.              The Issuer, the Preferred Share Registrar and the Preferred Share Paying Agent are not partners or joint venturers with each other and nothing in this Agreement shall be construed to make them such partners or joint venturers or impose any liability as such on any of them.              Section 7.6. Counterparts.              This Agreement may be signed in two or more counterparts with the same effect as if the signatures thereto and hereto were upon the same instrument.                          [SIGNATURE PAGES FOLLOW]   24582442.6                           -22- 

 

 

 

 

 

 

 

                                                                   EXHIBIT A                         PREFERRED SHARE CERTIFICATE                               GPMT 2018-FL1, LTD.        PREFERRED SHARES, PAR VALUE US $0.001 PER SHARE AND WITH AN  AGGREGATE LIQUIDATION PREFERENCE AND NOTIONAL AMOUNT EQUAL TO                             U.S.$1,000 PER SHARE  THE PREFERRED SHARES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED    UNDER   THE  SECURITIES   ACT  OF  1933, AS  AMENDED    (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES  OR  ANY   OTHER   RELEVANT    JURISDICTION, AND    MAY   BE  RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) (1) ON THE CLOSING DATE TO GPMT CLO HOLDINGS LLC, A DELAWARE LIMITED LIABILITY COMPANY, IN A TRANSACTION    EXEMPT   FROM   REGISTRATION    UNDER    THE  SECURITIES  ACT PURSUANT TO THE EXEMPTION PROVIDED BY SECTION 4(2) THEREOF, (2) PERSONS THAT  ARE   BOTH   (X) A  “QUALIFIED   INSTITUTIONAL    BUYER”   (“QUALIFIED INSTITUTIONAL   BUYER”) WITHIN    THE  MEANING    OF RULE   144A  UNDER   THE SECURITIES ACT (“RULE 144A”) AND (Y) A “QUALIFIED PURCHASER” AS DEFINED IN SECTION 2(a)(51) OF THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED (THE “INVESTMENT COMPANY ACT”) AND THE RULES THEREUNDER, PURCHASING FOR ITS OWN ACCOUNT OR ONE OR MORE ACCOUNTS WITH RESPECT TO WHICH IT EXERCISES SOLE INVESTMENT DISCRETION, EACH         OF WHICH   THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER, AND NONE OF WHICH ARE (X) A DEALER OF THE TYPE DESCRIBED IN PARAGRAPH (a)(1)(ii) OF RULE 144A UNLESS IT OWNS AND INVESTS ON A DISCRETIONARY BASIS NOT LESS THAN $25,000,000 IN SECURITIES OF CO-ISSUERS THAT ARE NOT AFFILIATED TO IT OR (Y) A PARTICIPANT-DIRECTED EMPLOYEE PLAN, SUCH AS A 401(k) PLAN, OR ANY OTHER TYPE OF PLAN REFERRED TO IN PARAGRAPH (a)(1)(i)(D) OR (a)(1)(i)(E) OF RULE 144A, OR A TRUST FUND REFERRED TO IN PARAGRAPH (a)(1)(i)(F) OF RULE 144A THAT HOLDS THE ASSETS OF SUCH A PLAN, UNLESS INVESTMENT DECISIONS WITH RESPECT TO THE PLAN ARE MADE SOLELY BY THE FIDUCIARY, TRUSTEE OR SPONSOR OF SUCH PLAN, TO WHOM NOTICE IS GIVEN THAT THE RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON THE EXEMPTION FROM SECURITIES  ACT   REGISTRATION    PROVIDED   BY  RULE   144A, OR   (3) TO  AN INSTITUTION  THAT   IS NOT   WHO   IS NOT   A  U.S. PERSON   (AS DEFINED   IN REGULATION S UNDER THE SECURITIES ACT (“REGULATION S”)), PURCHASING FOR ITS OWN ACCOUNT OR ONE OR MORE ACCOUNTS WITH RESPECT TO WHICH IT EXERCISES SOLE INVESTMENT DISCRETION, EACH OF WHICH IS NEITHER A U.S. PERSON  NOR   A U.S. RESIDENT (WITHIN    THE MEANING    OF THE INVESTMENT COMPANY ACT), IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 903 OR RULE 904 (AS APPLICABLE) OF REGULATION S, AND (B) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES AND ANY OTHER RELEVANT JURISDICTION. THE ISSUER HAS NOT BEEN REGISTERED   24582442.6 

 

UNDER THE INVESTMENT COMPANY ACT. NO TRANSFER OF THE PREFERRED SHARES REPRESENTED HEREBY MAY BE MADE (AND NEITHER THE PREFERRED SHARE PAYING AGENT NOR THE PREFERRED SHARE REGISTRAR WILL RECOGNIZE ANY SUCH TRANSFER) IF (A) SUCH TRANSFER WOULD BE MADE TO A TRANSFEREE WHO IS EITHER A U.S. PERSON (AS DEFINED IN REGULATION S) OR A U.S. RESIDENT (WITHIN THE MEANING     OF THE INVESTMENT COMPANY        ACT) WHO   IS NOT A QUALIFIED  INSTITUTIONAL BUYER     AND   A QUALIFIED   PURCHASER, (B) SUCH TRANSFER WOULD HAVE THE EFFECT OF REQUIRING EITHER OF THE ISSUER OR THE PLEDGED OBLIGATIONS TO REGISTER AS AN INVESTMENT COMPANY UNDER THE INVESTMENT COMPANY ACT OR (C) SUCH TRANSFER WOULD BE MADE TO A PERSON  WHO   IS OTHERWISE    UNABLE    TO MAKE    THE  CERTIFICATIONS AND REPRESENTATIONS DEEMED TO BE MADE BY SUCH PERSON IN THE INDENTURE REFERRED TO HEREIN. ACCORDINGLY, AN INVESTOR IN THE PREFERRED SHARES REPRESENTED HEREBY MUST BE PREPARED TO BEAR THE ECONOMIC RISK OF THE INVESTMENT FOR    AN  INDEFINITE PERIOD    OF TIME.   NO   TRANSFER   OF THE PREFERRED SHARES REPRESENTED HEREBY MAY BE MADE (AND NONE OF THE ISSUER, THE PREFERRED    SHARE PAYING     AGENT OR    THE PREFERRED    SHARE REGISTRAR WILL RECOGNIZE ANY SUCH TRANSFER) IF AFTER GIVING EFFECT TO SUCH TRANSFER, ANY PREFERRED SHARES WOULD BE HELD BY ANY “BENEFIT PLAN  INVESTOR,” AS DEFINED    IN 29 C.F.R. §2510.3-101 (INCLUDING, WITHOUT LIMITATION, AN INSURANCE COMPANY GENERAL ACCOUNT, IF APPLICABLE) OR SUCH TRANSFER WOULD BE MADE TO A PERSON WHO IS OTHERWISE UNABLE TO MAKE   THE   CERTIFICATIONS    AND   REPRESENTATIONS     REQUIRED    BY   THE APPLICABLE   TRANSFER    CERTIFICATE   ATTACHED    AS   AN  EXHIBIT  TO   THE PREFERRED SHARES PAYING AGENCY AGREEMENT.  AS A CONDITION TO THE PAYMENT OF ANY AMOUNT HEREUNDER WITHOUT THE IMPOSITION  OF WITHHOLDING     TAX, THE PREFERRED     SHARE PAYING     AGENT SHALL REQUIRE CERTIFICATION ACCEPTABLE TO IT TO ENABLE THE ISSUER AND THE PREFERRED    SHARE PAYING    AGENT TO    DETERMINE THEIR     DUTIES AND LIABILITIES WITH RESPECT TO ANY TAXES OR OTHER CHARGES THAT THEY MAY BE REQUIRED TO PAY, DEDUCT OR WITHHOLD IN RESPECT OF THE PREFERRED SHARES REPRESENTED HEREBY OR THE HOLDER HEREOF UNDER ANY PRESENT OR FUTURE LAW    OR REGULATION OF THE CAYMAN ISLANDS OR THE UNITED STATES OR ANY PRESENT OR FUTURE LAW       OR REGULATION OF ANY POLITICAL SUBDIVISION THEREOF OR TAXING AUTHORITY THEREIN OR TO COMPLY WITH ANY  REPORTING    OR  OTHER    REQUIREMENTS     UNDER   ANY   SUCH   LAW   OR REGULATION.  SO LONG   AS ANY  NOTE ISSUED    BY THE ISSUER OF THE PREFERRED       SHARES REPRESENTED   HEREBY    IS OUTSTANDING, NO    TRANSFER    OF THE PREFERRED SHARES REPRESENTED HEREBY MAY BE MADE BY GPMT CLO HOLDINGS LLC, A DELAWARE LIMITED LIABILITY COMPANY (AND NEITHER THE PREFERRED SHARE PAYING AGENT NOR THE PREFERRED SHARE REGISTRAR WILL RECOGNIZE ANY SUCH TRANSFER) TO ANY OTHER PERSON OR ENTITY.                                       A- 2 - 24582442.6 

 

THE  ISSUER   MAY   REQUIRE    ANY   HOLDER    OF  THE   PREFERRED    SHARES REPRESENTED HEREBY WHO IS A U.S. PERSON (AS DEFINED IN REGULATION S) OR A U.S. RESIDENT (WITHIN THE MEANING OF THE INVESTMENT COMPANY ACT) WHO IS DETERMINED NOT TO HAVE BEEN A (1) QUALIFIED PURCHASER AND (2) A QUALIFIED   INSTITUTIONAL   BUYER    (EXCEPT   IN THE   CASE  OF  GPMT   CLO HOLDINGS LLC) AT THE TIME OF ACQUISITION         OF THE PREFERRED     SHARES REPRESENTED HEREBY TO SELL THE PREFERRED SHARES REPRESENTED HEREBY TO A TRANSFEREE THAT IS (A) BOTH (X) A QUALIFIED INSTITUTIONAL BUYER AND (Y) AN QUALIFIED   PURCHASER    OR  (B) NOT A   U.S. PERSON  (AS DEFINED   IN REGULATION    S) NOR   A  U.S. RESIDENT    (WITHIN   THE  MEANING    OF   THE INVESTMENT COMPANY ACT) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH REGULATION S.  GPMT CLO HOLDINGS LLC, AND EACH TRANSFEREE OF THE PREFERRED SHARES REPRESENTED    HEREBY    WILL   BE   REQUIRED    TO  DELIVER    A  TRANSFER CERTIFICATE IN   THE FORM   REQUIRED    BY  THE PREFERRED    SHARES PAYING AGENCY AGREEMENT. ANY TRANSFER IN VIOLATION OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB INITIO, AND WILL NOT OPERATE TO TRANSFER    ANY  RIGHTS TO    THE  TRANSFEREE, NOTWITHSTANDING        ANY INSTRUCTIONS    TO  THE  CONTRARY     TO  THE   ISSUER, THE    TRUSTEE, THE PREFERRED SHARE PAYING AGENT OR ANY INTERMEDIARY.                                       A- 3 - 24582442.6 

 

                            GPMT 2018-FL1, LTD.  Number P-1                                            CUSIP [__]                    Incorporated under the laws of the Cayman Islands          [94,022.414] Preferred Shares of a par value of U.S.$0.001 per share and   with an aggregate liquidation preference and notional amount equal to U.S.$1,000 per share   THIS IS TO CERTIFY THAT ____________________________________________________  is the registered holder of 94,020.414 Class P Preferred Shares, one Class X Preferred Share and  one Class R Preferred Share in the above named Company, subject to the Amended and Restated  Memorandum and Articles of Association thereof, as may be hereafter amended and in effect  from time to time.                                       A- 4 - 24582442.6 

 

THIS CERTIFICATE IS ISSUED BY the said Company on this _____ day of __________, 20__.  EXECUTED AS A DEED on behalf of the said Company by:              DIRECTOR   ____________________________________   24582442.6 

 

                             ASSIGNMENT FORM  For value received  does hereby sell, assign and transfer unto   Please insert social security or other identifying number of assignee  Please print or type name and address, including zip code, of assignee:   ___________Preferred Shares and does hereby irrevocably constitute and appoint ___________ Attorney to transfer the Preferred Shares on the books of the Issuer with full power of substitution in the premises.  Date: _____________________           Your Signature:                                                     (Sign exactly as your name                                                     appears on the Preferred Share                                                     Certificate)   24582442.6 

 

                                                                   EXHIBIT B         FORM OF PURCHASER CERTIFICATE FOR PREFERRED SHARES   24582442.6                           B-1 

 

                         INVESTOR QUESTIONNAIRE  a.    General Information  1.    Print Full Name of Investor:  2.    Name in which Preferred Shares should be       registered:  3.    Address and Contact Person for Notices:                                                  Attention:  4.    Telephone Number:  5.    Telecopier Number:  6.    Permanent Address:       (if different from above)  7.    U.S. Taxpayer Identification or Social Security       Number (if any):  8.    Payment Instructions:  9.    Instructions for delivery of Preferred Shares (if       not completed, Preferred Shares will be sent by       courier to address and attention of party set forth       in item 3 above):  10.   Purchasing:                               Restricted Preferred Shares OR                                                 Regulation S Preferred Shares (circle                                                 one)  b.    Non-U.S. Person Status  The Investor represents and warrants that the Investor is        an institution that is a non-U.S. person (as defined in Rule 902(k) promulgated under the       Securities Act) purchasing the Preferred Shares for its own account and not for the account       or benefit of a U.S. person.  OR   24582442.6                           B-2 

 

c.    Qualified Purchaser/Qualified Institutional Buyer Status  1.    If the Investor is a U.S. Person (as defined in Regulation S promulgated under the Securities       Act), the Investor must complete the following:        The Investor represents and warrants that the Investor is a “qualified purchaser” (a       “Qualified Purchaser”) within the meaning of the Investment Company Act of 1940, as       amended (the “1940 Act”) and has checked the box or boxes below which are next to the       categories under which the Investor qualifies as a Qualified Purchaser:              (a)   It is a natural person (including any person who holds joint, community                   property, or other similar shared ownership interest in an issuer that is                   excepted under Section 3(c)(7) of the 1940 Act with that person’s qualified                   purchaser spouse) who owns not less than U.S.$5,000,000 in “investments”                   as defined in Rule 2a51-1 promulgated under the 1940 Act (“Investments”)                   and as valued in accordance with such Rule 2a51-1 (including, without                   limitation, deducting from the amount of such Investments the amount of                   any outstanding indebtedness incurred to acquire or for the purpose of                   acquiring such Investments) (including Investments held (1) jointly with                   such person’s spouse, or in which such person shares with such person’s                   spouse a community property or similar shared ownership interest and (2) in                   an individual retirement account or similar account the Investments of                   which are directed by and held for the benefit of such person).              (b)   It is a company that (1) owns not less than U.S.$5,000,000 in Investments                   as valued in accordance with such Rule 2a51-1 (including, without                   limitation, deducting from the amount of such Investments the amount of                   any outstanding indebtedness incurred to acquire or for the purpose of                   acquiring such Investments) that is owned directly or indirectly by or for                   two or more natural persons who are related as siblings or spouse (including                   former spouses), or direct lineal descendants by birth or adoption, spouses                   of such persons, the estates of such persons, or foundations, charitable                   organizations, or trusts established by or for the benefit of such persons and                   (2) was not formed for the specific purpose of acquiring Preferred Shares of                   the Issuer unless each beneficial owner of the Investor’s securities is a                   Qualified Purchaser.              (c)   It is a trust that is not covered by clause (b) above and that was not formed                   for the specific purpose of acquiring the securities offered, as to which the                   trustee or other person authorized to make decisions with respect to the trust,                   and each settlor or other person who has contributed assets to the trust, is a                   person described in clause (a), (b) or (d).              (d)   It is a person, acting for its own account, who (1) in the aggregate owns and                   invests on a discretionary basis, not less than U.S.$25,000,000 in                   Investments as valued in accordance with such Rule 2a51-1 (including,                   without limitation, deducting from the amount of such Investments the   24582442.6                           B-3 

 

                  amount of any outstanding indebtedness incurred to acquire or for the                   purpose of acquiring such Investments) (including Investments owned by                   majority-owned subsidiaries of the company and Investments owned by a                   company (a “Parent Company”) of which the company is a majority-owned                   subsidiary, or by a majority-owned subsidiary of the company and other                   majority-owned subsidiaries of the Parent Company) and (2) was not                   formed for the specific purpose of acquiring Preferred Shares unless each                   beneficial owner of the Investor’s securities is a Qualified Purchaser.              (e)   It is a “qualified institutional buyer” within the meaning of Rule 144A(a)                   promulgated under the Securities Act, acting for its own account; provided:                    (a)   that a dealer described in paragraph (a)(1)(ii) of Rule 144A shall                   own and invest on a discretionary basis at least U.S.$25,000,000 in                   securities of Co-Issuers that are not affiliated persons of the dealer; and                    (b)   that a plan referred to in paragraph (a)(1)(D) or (a)(1)(E) of                   Rule 144A, or a trust fund referred to in paragraph (a)(1)(F) of Rule 144A                   that holds the assets of such a plan, will not be deemed to be acting for its                   own account if investment decisions with respect to the plan are made by                   the beneficiaries of the plan, except with respect to investment decisions                   made solely by the fiduciary, trustee or sponsor of such plan.              (f)   It is an entity in which each beneficial owner of the Investor’s securities is                   a Qualified Purchaser.  d.    Suitability  1.    The Investor understands that an investment in Preferred Shares is a leveraged investment       in the underlying Collateral. In addition, the Investor has indicated which, if any, of the       following statements (paragraphs (A) through (E) below) apply to the Investor:              (a)   In connection with evaluating the merits and risks of its prospective                   investment in the Preferred Shares, the Investor has relied upon:                     and such person or entity (the “Purchaser Representative”) has disclosed to                   the Investor in writing a reasonable time prior to the Closing Date any                   material relationship between such Purchaser Representative or its                   affiliates, on the one hand, and the Issuer and its affiliates, on the other hand,                   that then exists, that is mutually understood to be contemplated or that has                   existed at any time during the previous two years, and any compensation                   received or to be received as a result of such relationship.              (b)   If the Investor has retained a Purchaser Representative in connection with                   its proposed investment in the Preferred Shares, the Investor has disclosed   24582442.6                           B-4 

 

                  to such Purchaser Representative such information concerning the                   Investor’s financial status, tax status and investment and other financial                   objectives as is necessary for such Purchaser Representative to have                   reasonable grounds for believing that the Investor’s investment in the                   Preferred Shares is suitable for the Investor given the Investor’s financial                   situation and needs.              (c)   The Investor currently employs, or has in the past employed, one or more                   financial consultants, investment advisers or bank trust departments.              (d)   The Investor has specific experience with one or more investments in one                   or more of (i) high yield debt securities, (ii) investment funds whose assets                   consist principally of high yield debt securities or (iii) other securities                   similar to the Preferred Shares (including experience with how market and                   other relevant developments affect the value of those investments).              (e)   The Investor regularly receives and considers ideas, suggestions, market                   views and other information obtained from market professionals, including                   market professionals whose expertise relates to investments in one or more                   of (i) high yield debt securities, (ii) investment funds whose assets consist                   principally of high yield debt securities or (iii) other securities similar to the                   Preferred Shares.  2.    The Investor’s financial condition is such that it has no need for liquidity with respect to       the Preferred Shares and no need to dispose of any Preferred Shares or portion thereof to       satisfy any existing or contemplated indebtedness, obligations or other undertaking, and       the aggregate amount to be paid by the Investor to purchase the Preferred Shares is not       disproportionate to the Investor’s net worth, and the Investor is able to bear any loss in       connection with any Preferred Shares (including loss of the Investor’s original principal       investment):                                      Yes         No  3.    The Investor, either alone or with the Investor’s Purchaser Representative identified above,       has determined that an investment in the Preferred Shares, based upon an appropriate       characterization thereof for legal, investment, accounting, regulatory and tax purposes, is       consistent with any legal investment restrictions applicable to the Investor:                                      Yes         No  4.    None of the Issuer, its affiliates and the respective agents of the foregoing is acting as a       fiduciary for or an investment adviser (or in any other similar role) to the Investor in       connection with the offering and sale of the Preferred Shares:                                      Yes         No   24582442.6                           B-5 

 

e.    Supplemental Data for Entities  If the Investor is an entity, furnish the following supplemental data (natural persons may skip this Section E of the Investor Questionnaire):  1.    Legal form of entity (corporation, partnership, trust, etc.):        Jurisdiction of organization:  2.    If the Investor is a U.S. resident (within the meaning of the 1940 Act) is the investor a       Flow-Through Investment Vehicle?                                      Yes         No  f.    Related Parties  1.    To the best of the Investor’s knowledge, does the Investor control, or is the Investor       controlled by or under common control with, any other investor in the Issuer?                                      Yes         No  2.    Will any other person or persons have a beneficial interest in the Preferred Shares to be       acquired hereunder (other than as a shareholder, partner or other beneficial owner of equity       interests in the Investor)?                                      Yes         No        If either question above was answered “Yes,” please contact the Issuer for additional       information that will be required.  g.    Cayman Islands  1.    Is the Investor a member of the public in the Cayman Islands?                                      Yes         No  h.    Reg Y Institution  1.    Is the Investor a Reg Y Institution?                                      Yes         No        For purposes of this item, “Reg Y Institution” means any Preferred Shareholder that is, or       is controlled by a person that is, subject to the provisions of Regulation Y of the Board of       Governors of the Federal Reserve System of the United States or any successor to such       regulation, but excludes, in any event, (a) any “qualifying foreign banking organization”       within the meaning of Regulation Y of the Board of Governors of the Federal Reserve       System (12 C.F.R. Section 211.23) that has booked its investment in the Preferred Shares       outside the United States and (b) any financial holding company or subsidiary of a financial   24582442.6                           B-6 

 

      holding company authorized to engage in merchant banking activities pursuant to       Section 4(k)(4)(H) of the Bank Holding Company Act of 1956, as amended.  i.    ERISA Status  1(a)  Is the Investor, or is the Investor acting on behalf of or using any assets of any person that       is or will become, a Benefit Plan Investor” (as defined below)?                                      Yes         No        A “Benefit Plan Investor” includes (i) an “employee benefit plan” (as defined in Section       3(3) of ERISA) that is subject to Title I of the Employee Retirement Income Security Act       of 1974, as amended (“ERISA”), (ii) a “plan” within the meaning of Section 4975(e)(1) of       the Internal Revenue Code of 1986, as amended (the “Code”) that is subject to Section       4975 of the Code, or (iii) any entity whose underlying assets include “plan assets” by reason       of such employee benefit plan’s or plan’s investment in such entity or otherwise.        ANY INVESTOR THAT RESPONDS “YES” TO QUESTION 1(a) WILL NOT BE       PERMITTED TO INVEST IN THE PREFERRED SHARES.   (b)(1)Is the Investor an insurance company general account?                                      Yes         No   (b)(2)If the answer to the question in (b)(1) above is “Yes”, please provide the following       information:              The maximum percentage of the assets of such insurance company general account             that constitutes or will constitute “plan assets” within the meaning of 29 C.F.R. §             2510.3-101, as modified by Section 3(42) of ERISA (the “Plan Asset Regulation”)             at any time that the Investor holds any interest in the Preferred Shares is: ______%.              ANY INVESTOR THAT (i) RESPONDS “YES” TO QUESTION 1(b)(1) AND             (ii) PROVIDES A PERCENTAGE GREATER THAN ZERO IN RESPONSE TO             QUESTION   1(b)(2) WILL NOT  BE  PERMITTED    TO  INVEST  IN  THE             PREFERRED SHARES.   (c)  Is the Investor an entity, other than an insurance company general account, that holds “plan       assets” by reason of a Benefit Plan Investor’s investment in the entity or otherwise?                                    Yes         No        ANY INVESTOR THAT RESPONDS “YES” TO QUESTION 1(c) WILL NOT BE       PERMITTED TO INVEST IN THE PREFERRED SHARES.   (d)  Is the Investor a plan that is subject to any federal, state, local, non-U.S. or other law that       is substantially similar to Section 406 of ERISA or Section 4975 of the Code (“Similar       Law”)?   24582442.6                           B-7 

 

                                    Yes         No        ANY INVESTOR THAT RESPONDS “YES” TO QUESTION 1(d) WILL BE DEEMED       TO HAVE REPRESENTED AND WARRANTED THAT ITS ACQUISITION AND       HOLDING OF THE PREFERRED SHARES DO NOT AND WILL NOT CONSTITUTE       OR OTHERWISE GIVE RISE TO A NON-EXEMPT VIOLATION OF SIMILAR LAW.   (e)  The representations made in this Item i shall be deemed to be made on each day from the       date the Investor makes such representations through and including the date on which the       Investor disposes of its interests in the Preferred Shares. The Investor understands and       agrees that the information supplied above will be utilized to determine whether Benefit       Plan Investors own any Preferred Shares of the Issuer, both upon the original issuance of       Preferred Shares and upon subsequent transfers of Preferred Shares for any reason.       Accordingly, without limiting the remedies available in the event of a breach, the Investor       undertakes:          (i) to inform the Issuer, the Preferred Share Paying Agent and the Preferred Share       Registrar immediately of any change in the information provided in this Item i, and          (ii) to provide to the Issuer, the Preferred Share Paying Agent and the Preferred Share       Registrar such information as the Issuer, the Preferred Share Paying Agent or the Preferred       Share Registrar may reasonably request from time to time to enable the Issuer, the Preferred       Share Paying Agent or the Preferred Share Registrar to make a determination with respect       to the portion, if any, of the Preferred Shares of the Issuer that may be held by or for the       benefit of Benefit Plan Investors.  The Investor understands that the foregoing information will be relied upon by the Issuer for the purpose of determining the eligibility of the Investor to purchase Preferred Shares. The Investor agrees to provide, if requested, any additional information that may be required to substantiate the Investor’s status as an Institutional Accredited Investor or under the exception provided pursuant to Section 3(c)(7) of the 1940 Act, to determine compliance with ERISA or Section 4975 of the Code or to otherwise determine its eligibility to purchase Preferred Shares.   24582442.6                           B-8 

 

The Investor further agrees to promptly notify the Issuer by telephone and in writing if any of the information contained in this Investor Questionnaire becomes untrue prior to the purchase by the Investor of the Preferred Shares.                                         Signature:                                          By                                           (Signature)                                          (Print Name and Title) Date:   24582442.6                           B-9 

 

                                SCHEDULE I              Capitalized terms used in this Schedule I that are defined in Regulation S are used as defined therein.              1.    (A) The Holder is aware that the sale of such Preferred Shares to it is being       made in reliance on the exemption from registration provided by Regulation S and       understands that the Preferred Shares offered in reliance on Regulation S will bear the       appropriate legend set forth herein. The Preferred Shares so represented may not at any       time be held by or on behalf of U.S. Persons or U.S. Residents. The Holder is not, and will       not be, a U.S. Person or a U.S. Resident. Before any Preferred Share issued in reliance on       Regulation S may be offered, resold, pledged or otherwise transferred, the transferee will       be required to provide the Trustee with a written certification substantially in the form       attached to the Preferred Shares Paying Agency Agreement as to compliance with the       transfer restrictions. The Holder understands that it must inform a prospective transferee       of the transfer restrictions; or                    (B) The Holder (1) is both (x) a Qualified Institutional Buyer and (y) a       Qualified Purchaser; (2) is aware that the sale of the Preferred Shares to it is being made in       reliance on the exemption from registration provided by Rule 144A or Rule 501(a) of       Regulation D and (3) is acquiring the Preferred Shares for its own account or for one or       more accounts, each of which is a Qualified Institutional Buyer, and as to each of which       the owner exercises sole investment discretion.              2.    The Holder understands that the Preferred Shares are being offered only in       a transaction not involving any public offering within the meaning of the Securities Act,       the Preferred Shares have not been and will not be registered under the Securities Act, and,       if in the future the Holder decides to offer, resell, pledge or otherwise transfer the Preferred       Shares, such Preferred Shares may only be offered, resold, pledged or otherwise transferred       only in accordance with the Issuer Charter and the Preferred Shares Paying Agency       Agreement and the applicable legend on such Preferred Shares set forth herein. The Holder       acknowledges that no representation is made by the Issuer or the Placement Agents as to       the availability of any exemption under the Securities Act or any State securities laws for       resale of the Preferred Shares.              3.    The Holder understands that the Preferred Shares have not been approved       or disapproved by the United States Securities and Exchange Commission (“SEC”) or any       other governmental authority or agency or any jurisdiction and that neither the SEC nor       any other governmental authority or agency has passed upon the accuracy of the final       offering memorandum relating to the Preferred Shares. The Holder further understands that       any representation to the contrary is a criminal offense.              4.    The Holder is not purchasing the Preferred Shares with a view to the resale,       distribution or other disposition thereof in violation of the Securities Act. The Holder       understands that an investment in the Preferred Shares involves certain risks, including the       risk of loss of all or a substantial part of its investment under certain circumstances.                                   Schedule I-1 24582442.6 

 

            5.    In connection with the purchase of the Preferred Shares (A) none of the       Issuer, the Placement Agents or the Preferred Share Paying Agent is acting as a fiduciary       or financial or investment adviser for the Holder; (B) the Holder is not relying (for purposes       of making any investment decision or otherwise) upon any advice, counsel or       representations (whether written or oral) of the Issuer, the Placement Agents or the       Preferred Share Paying Agent other than in, if applicable, a current offering memorandum       for such Preferred Shares; (C) none of the Issuer, the Placement Agents or the Preferred       Share Paying Agent has given to the Holder (directly or indirectly through any other       person) any assurance, guarantee, or representation whatsoever as to the expected or       projected success, profitability, return, performance, result, effect, consequence, or benefit       (including legal, regulatory, tax, financial, accounting, or otherwise) of its purchase; (D)       the Holder has consulted with its own legal, regulatory, tax, business, investment, financial,       accounting and other advisers to the extent it has deemed necessary, and it has made its       own investment decisions (including decisions regarding the suitability of an investment       in the Preferred Shares) based upon its own judgment and upon any advice from such       advisers as it has deemed necessary and not upon any view expressed by the Issuer, the       Placement Agents or the Preferred Share Paying Agent; and (E) the Holder is purchasing       the Preferred Shares with a full understanding of all of the terms, conditions and risks       thereof (economic and otherwise), and is capable of assuming and willing to assume       (financially and otherwise) these risks.              6.    The Holder understands that the certificates representing the Preferred       Shares will bear the applicable legend set forth herein. The Preferred Shares may not at       any time be held by or on behalf of any U.S. Person that is not both (x) a Qualified       Institutional Buyer and (y) a Qualified Purchaser. The Holder understand that it must       inform a prospective transferee of the transfer restrictions.              7.    The Holder understands and agrees that a legend in substantially the       following form will be placed on each certificate representing any Preferred Shares unless       the Issuer determines otherwise in compliance with applicable law:              THE PREFERRED SHARES REPRESENTED HEREBY HAVE             NOT BEEN AND WILL NOT BE REGISTERED UNDER THE             UNITED STATES SECURITIES ACT OF 1933, AS AMENDED             (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF             ANY STATE OF THE UNITED STATES, AND THE ISSUER             HAS  NOT   BEEN   REGISTERED    AS  AN   INVESTMENT             COMPANY    UNDER   THE UNITED   STATES INVESTMENT             COMPANY     ACT    OF   1940,  AS   AMENDED      (THE             “INVESTMENT    COMPANY     ACT”).   THE   PREFERRED             SHARES REPRESENTED HEREBY MAY NOT BE OFFERED,             SOLD, PLEDGED OR OTHERWISE TRANSFERRED, EXCEPT             (A) (1) PERSONS  THAT   ARE  BOTH   (X) A  QUALIFIED             INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE             144A UNDER THE SECURITIES ACT (A “QIB”) AND (Y) A             QUALIFIED PURCHASER AS DEFINED IN SECTION 2(a)(51)             OF THE  INVESTMENT COMPANY       ACT (A   “QUALIFIED                                   Schedule I -2 24582442.6 

 

            PURCHASER), AND IS EITHER PURCHASING FOR ITS OWN             ACCOUNT    OR  FOR  THE  ACCOUNT    OF  A  QUALIFIED             INSTITUTIONAL BUYER AND FOR EACH SUCH ACCOUNT,             IN A TRANSACTION MEETING THE REQUIREMENTS OF             RULE 144A UNDER THE SECURITIES ACT SO LONG AS THE             PREFERRED    SHARES    REPRESENTED     HEREBY    ARE             ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER             THE SECURITIES ACT, SUBJECT TO THE SATISFACTION             OF CERTAIN CONDITIONS SPECIFIED IN THE PREFERRED             SHARES PAYING    AGENCY   AGREEMENT, OR (2) TO     AN             INSTITUTION   THAT   IS NOT   A  U.S. PERSON   IN  AN             OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE             903 OR RULE 904 (AS APPLICABLE) OF REGULATION S             UNDER   THE   SECURITIES    ACT,  SUBJECT    TO   THE             SATISFACTION OF CERTAIN CONDITIONS SPECIFIED IN             THE PREFERRED SHARES PAYING AGENCY AGREEMENT,             AND  (B) IN   ACCORDANCE     WITH   ALL  APPLICABLE             SECURITIES  LAWS   OF  ANY   STATE   OF  THE  UNITED             STATES AND   ANY   OTHER APPLICABLE JURISDICTION.             EACH  PURCHASER OF A     PREFERRED   SHARE WILL BE             REQUIRED   TO   MAKE   THE   REPRESENTATIONS     AND             AGREEMENTS    SET   FORTH   IN SCHEDULE    I OF   THE             PREFERRED   SHARES    PAYING   AGENCY    AGREEMENT.             ANY TRANSFER IN VIOLATION OF THE FOREGOING WILL             BE OF NO FORCE AND EFFECT, WILL BE VOID AB INITIO,             AND WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO             THE     TRANSFEREE,      NOTWITHSTANDING         ANY             INSTRUCTIONS TO THE CONTRARY TO THE ISSUER, THE             PREFERRED SHARE REGISTRAR, THE PREFERRED SHARE             PAYING  AGENT OR ANY     INTERMEDIARY.     IF AT ANY             TIME, THE ISSUER DETERMINES OR IS NOTIFIED THAT             THE  HOLDER   OF  SUCH   PREFERRED    SHARE   WAS  IN             BREACH, AT    THE   TIME  GIVEN, OF    ANY   OF   THE             REPRESENTATIONS     SET  FORTH   IN  THE  PREFERRED             SHARES PAYING AGENCY AGREEMENT, THE ISSUER AND             THE PREFERRED SHARE PAYING AGENT MAY CONSIDER             THE   ACQUISITION    OF   THE   PREFERRED     SHARES             REPRESENTED HEREBY VOID AND REQUIRE THAT THE             PREFERRED    SHARES     REPRESENTED     HEREBY     BE             TRANSFERRED    TO  A  PERSON   DESIGNATED    BY   THE             ISSUER.  NO  TRANSFER    OF THE PREFERRED     SHARES             REPRESENTED HEREBY MAY BE MADE (AND THE ISSUER             AND THE PREFERRED SHARE PAYING AGENT WILL NOT             RECOGNIZE    ANY   SUCH   TRANSFER)   IF    (A) SUCH             TRANSFER WOULD     HAVE THE EFFECT OF REQUIRING             THE ISSUER TO REGISTER AS AN INVESTMENT COMPANY                                   Schedule I -3 24582442.6 

 

            UNDER THE INVESTMENT COMPANY ACT OR (B) SUCH             TRANSFER   WOULD    BE MADE   TO  A  PERSON   WHO   IS             OTHERWISE UNABLE TO      MAKE THE CERTIFICATIONS             AND REPRESENTATIONS DEEMED TO BE MADE BY SUCH             PERSON IN THE PREFERRED SHARES PAYING AGENCY             AGREEMENT REFERRED TO HEREIN. ACCORDINGLY, AN             INVESTOR  IN  THE PREFERRED    SHARES REPRESENTED             HEREBY MUST BE PREPARED TO BEAR THE ECONOMIC             RISK OF THE INVESTMENT FOR AN INDEFINITE PERIOD             OF TIME. EXCEPT AS OTHERWISE PERMITTED BY THE CO-             ISSUERS, NO  TRANSFER    OF THE PREFERRED     SHARES             REPRESENTED HEREBY MAY BE MADE (AND NONE OF             THE CO-ISSUERS, PREFERRED SHARE PAYING AGENT OR             THE PREFERRED SHARE REGISTRAR WILL RECOGNIZE             ANY  SUCH   TRANSFER) IF AFTER    GIVING  EFFECT   TO             SUCH TRANSFER, ANY PREFERRED SHARES WOULD BE             HELD BY “BENEFIT PLAN INVESTORS,” AS DEFINED IN 29             C.F.R. §2510.3-101 (EITHER DIRECTLY OR THROUGH AN             INSURANCE COMPANY GENERAL ACCOUNT) OR SUCH             TRANSFER   WOULD    BE MADE   TO  A  PERSON   WHO   IS             OTHERWISE UNABLE TO      MAKE THE CERTIFICATIONS             AND REPRESENTATIONS REQUIRED BY THE APPLICABLE             TRANSFER CERTIFICATE ATTACHED AS AN EXHIBIT TO             THE PREFERRED SHARES PAYING AGENCY AGREEMENT.              AS A CONDITION TO THE PAYMENT OF ANY AMOUNT             UNDER THE PREFERRED SHARES REPRESENTED HEREBY             WITHOUT THE IMPOSITION OF BACKUP WITHHOLDING             TAX, THE ISSUER AND THE PREFERRED SHARE PAYING             AGENT SHALL REQUIRE CERTIFICATION        ACCEPTABLE             TO THEM TO ENABLE THE ISSUER AND THE PREFERRED             SHARE PAYING    AGENT TO   DETERMINE THEIR DUTIES             AND  LIABILITIES WITH   RESPECT TO    ANY  TAXES OR             OTHER CHARGES THAT THEY       MAY   BE REQUIRED    TO             PAY, DEDUCT    OR  WITHHOLD     IN RESPECT    OF  THE             PREFERRED   SHARES   REPRESENTED    HEREBY    OR  THE             HOLDER   THEREOF UNDER     ANY  PRESENT OR    FUTURE             LAW OR REGULATION OF THE CAYMAN ISLANDS OR THE             UNITED STATES OR ANY PRESENT OR FUTURE LAW         OR             REGULATION OF ANY POLITICAL SUBDIVISION THEREOF             OR TAXING AUTHORITY THEREIN OR TO COMPLY WITH             ANY REPORTING OR OTHER REQUIREMENTS UNDER ANY             SUCH LAW  OR REGULATION.              8.    The Holder will not, at any time, offer to buy or offer to sell the Preferred       Shares by any form of general solicitation or advertising, including, but not limited to, any       advertisement, article, notice or other communication published in any newspaper,                                   Schedule I -4 24582442.6 

 

      magazine or similar medium or broadcast over television or radio or at a seminar or meeting       whose attendees have been invited by general solicitations or advertising.              9.    The Holder is not a member of the public in the Cayman Islands, within the       meaning of Section 175 of the Cayman Islands Companies Law (2018 Revision).              10.   The Holder understands that each of the Issuer, the Trustee or the Preferred Share Paying Agent shall require certification acceptable to it (A) as a condition to the payment of distributions in respect of any Preferred Shares without, or at a reduced rate of, U.S. withholding or backup withholding tax, and (B) to enable the Issuer, the Trustee and the Preferred Share Paying Agent to determine their duties and liabilities with respect to any taxes or other charges that they may be required to pay, deduct or withhold from payments in respect of such Preferred Shares or the Holder of such Preferred Shares under any present or future law or regulation of the Cayman Islands or the United States or any present or future law or regulation of any political subdivision thereof or taxing authority therein or to comply with any reporting or other requirements under any such law or regulation. Such certification may include U.S. federal income tax forms (such as IRS Form W-8BEN (Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals)), IRS Form W-8BEN-E (Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Entities)), IRS Form W- 8IMY (Certificate of Foreign Intermediary, Flow-Through Entity, or Certain U.S. Branches for United States Tax Withholding and Reporting), IRS Form W-9 (Request for Taxpayer Identification Number and Certification), or IRS Form W-8ECI (Certificate of Foreign Person’s Claim That Income Is Effectively Connected with Conduct of a Trade or Business in the United States) or any successors to such IRS forms) and the properly completed and executed “Entity Self-Certification Form” or “Individual Self-Certification Form” (in the forms published by the Cayman Islands Department for International Tax Cooperation, which forms can be obtained at http://www.tia.gov.ky/pdf/CRS_Legislation.pdf). In addition, the Issuer or the Preferred Share Paying Agent may require certification acceptable to it to enable the Issuer to qualify for a reduced rate of withholding in any jurisdiction from or through which the Issuer receives payments on its assets. Each owner agrees to provide any certification requested pursuant to this paragraph and to update or replace such form or certification in accordance with its terms or its subsequent amendments.              11.   The Holder hereby agrees that, for purposes of U.S. federal, state and local       income and franchise tax and any other income taxes, if the Issuer is no longer a Qualified       REIT Subsidiary (A) the Issuer will be treated as a foreign corporation and (B) the Notes       will be treated as equity in the Issuer; the Holder agrees to such treatment and agrees to       take no action inconsistent with such treatment, unless required by law.              12.   The Holder, if not a “United States person” (as defined in Section       7701(a)(30) of the Code), either: (A) is not a bank (within the meaning of Section       881(c)(3)(A) of the Code); (B) is a bank (within the meaning of Section 881(c)(3)(A) of       the Code) and after giving effect to its purchase of the Preferred Shares, the Holder (x)       shall not own more than 50% of the Preferred Shares (by number) or 50% by value of the       aggregate of the Preferred Shares and all Classes of Notes that are treated as equity for U.S.       federal income tax purposes either directly or indirectly, and will not otherwise be related       to the Issuer (within the meaning of section 267(b) of the Code) and (y) has not purchased                                   Schedule I -5 24582442.6 

 

      the Preferred Shares in whole or in part to avoid any U.S. federal income tax liability       (including, without limitation, any U.S. withholding tax that would be imposed on the       Preferred Shares with respect to the Collateral if held directly by the Holder); (C) is a bank       (within the meaning of Section 881(c)(3)(A) of the Code) has provided an IRS Form W-       8ECI representing that all payments received or to be received by it from the Issuer are       effectively connected with the conduct of a trade or business in the United States; or (D) is       a bank (within the meaning of Section 881(c)(3)(A) of the Code) is eligible for benefits       under an income tax treaty with the United States that eliminates U.S. federal income       taxation of U.S. source interest not attributable to a permanent establishment in the United       States and the Issuer is treated as a fiscally transparent entity (as defined in Treasury       regulations section 1.894-1(d)(3)(iii)) under the laws of Holder’s jurisdiction with respect       to payments made on the Collateral held by the Issuer.              13.   The Holder will, prior to any sale, pledge or other transfer by such owner       of any Preferred Share, obtain from the prospective transferee, and deliver to the Preferred       Share Paying Agent, a duly executed transferee certificate addressed to each of the       Preferred Share Paying Agent and the Issuer in the form of the relevant exhibit attached to       the Preferred Shares Paying Agency Agreement, and such other certificates and other       information as the Issuer or the Preferred Share Paying Agent may reasonably require to       confirm that the proposed transfer complies with the transfer restrictions contained in the       Issuer Charter and the Preferred Shares Paying Agency Agreement.              14.   The Holder agrees that no Preferred Share may be purchased, sold, pledged       or otherwise transferred in a number less than the minimum number set forth in the       Preferred Shares Paying Agency Agreement. In addition, the Holder understands that the       Preferred Shares will be transferable only upon registration of the transferee in the       Preferred Share Register of the Issuer following delivery to the Preferred Share Registrar       of a duly executed share transfer certificate, the Preferred Share to be transferred (if       applicable) and any other certificates and other information required by the Issuer Charter       and the Preferred Shares Paying Agency Agreement.              15.   The Holder is aware and agrees that no Preferred Share (or beneficial       interest therein) may be offered or sold, pledged or otherwise transferred (i) to a transferee       taking delivery of such Preferred Shares represented by a certificate representing a       Preferred Share except to both (x) a transferee that the Holder reasonably believes is a       Qualified Institutional Buyer, purchasing for its account, to which notice is given that the       resale, pledge or other transfer is being made in reliance on the exemption from the       registration requirements of the Securities Act provided by Rule 144A or another person       the sale to which is exempt under the Securities Act and (y) a Qualified Purchaser, and if       such transfer is made in accordance with any applicable securities laws of any state of the       United States and any other relevant jurisdiction, (ii) to a transferee taking delivery of such       Preferred Share represented by a certificate representing a Preferred Share issued in       reliance on Regulation S except (A) to a transferee that is acquiring such interest in an       offshore transaction in accordance with Rule 904 of Regulation S, (B) to a transferee that       is not a U.S. resident (within the meaning of the Investment Company Act) unless such       transferee is a Qualified Purchaser, (C) such transfer is made in compliance with the other       requirements set forth in the Preferred Shares Paying Agency Agreement and (D) if such                                   Schedule I -6 24582442.6 

 

      transfer is made in accordance with any applicable securities laws of any state of the United       States and any other jurisdiction or (iii) if such transfer would have the effect of requiring       the Issuer to register as an “investment company” under the Investment Company Act.              16.   The Holder understands that, although the Placement Agents may from time       to time make a market in the Preferred Shares, the Placement Agents are not under any       obligation to do so and, following the commencement of any market-making, may       discontinue the same at any time. Accordingly, the Holder must be prepared to hold the       Preferred Shares until the scheduled Redemption Date for the Preferred Shares.              17.   The Holder also understands that the Preferred Shares are equity interests       in the Issuer and are not secured by the Collateral securing the Notes. As such, the Holder       and any other Holders of the Preferred Shares will, on a winding up of the Issuer, rank       behind all of the creditors, whether secured or unsecured and known or unknown, of the       Issuer, including, without limitation, the Holders of the Notes, the Hedge Counterparties       and any judgment creditors. Payments in respect of the Preferred Shares are subject to       certain requirements imposed by Cayman Islands law. Any amounts paid by the Preferred       Share Paying Agent as distributions by way of dividend on the Preferred Shares will be       payable only if the Issuer has sufficient distributable profits and/or share premium. In       addition, such distributions and any redemption payments will be payable only to the extent       that the Issuer is and remains solvent after such distributions or redemption payments are       paid. Under Cayman Islands law, a company generally is deemed solvent if it is able to       pay its debts as they come due in the ordinary course of business. To the extent the       requirements under Cayman Islands law described above are not met, amounts otherwise       payable to the Holders of the Preferred Shares will be retained in the Preferred Shares       Distribution Account until the next succeeding Payment Date, or (in the case of any       payment that would otherwise be payable on a redemption of the Preferred Shares) the next       succeeding Business Day, on which the Issuer notifies the Preferred Share Paying Agent       that such requirements are met. Amounts on deposit in the Preferred Shares Distribution       Account (unless deposited in error) will not be available to pay amounts due to the Holders       of the Notes, the Note Administrator, the Trustee or any other creditor of the Issuer the       claim of which is limited in recourse to the Collateral. However, amounts on deposit in       the Preferred Shares Distribution Account may be subject to the claims of creditors of the       Issuer that have not contractually limited their recourse to the Collateral.              18.   The Holder agrees that (i) any sale, pledge or other transfer of a Preferred       Share made in violation of the transfer restrictions contained in the Preferred Shares Paying       Agency Agreement, or made based upon any false or inaccurate representation made by       the Holder or a transferee to the Issuer, the Preferred Share Paying Agent or the Preferred       Share Registrar, will be void and of no force or effect and (ii) none of the Issuer, the       Preferred Share Paying Agent and the Preferred Share Registrar has any obligation to       recognize any sale, pledge or other transfer of a Preferred Share (or any beneficial interest       therein) made in violation of any such transfer restriction or made based upon any such       false or inaccurate representation.              19.   The Holder acknowledges that the Issuer, the Trustee, the Preferred Share       Paying Agent, the Preferred Share Registrar, the Placement Agents and others will rely                                   Schedule I -7 24582442.6 

 

      upon the truth and accuracy of the foregoing acknowledgments, representations and       agreements and agrees that, if any of the acknowledgments, representations or warranties       made or deemed to have been made by it in connection with its purchase of the Preferred       Shares are no longer accurate, the Holder will promptly notify the Issuer, the Trustee, the       Note Administrator, the Preferred Share Paying Agent, the Preferred Share Registrar and       the Placement Agents.                                    Schedule I -8 24582442.6exhibit103

                                                        EXECUTION VERSION                COLLATERAL INTEREST PURCHASE AGREEMENT              This  COLLATERAL      INTEREST    PURCHASE     AGREEMENT      (this “Agreement”) is made as of May 9, 2018 by and among GPMT Seller LLC, a Delaware limited liability company (the “Seller”), GPMT 2018-FL1, Ltd., an exempted company incorporated in the Cayman Islands with limited liability (the “Issuer”), and Granite Point Mortgage Trust Inc., a Maryland corporation (“GPMT” and, together with the Seller, the “Seller Parties”).                                W I T N E S S E T H:              WHEREAS, the Issuer desires to purchase from the Seller and the Seller desires to sell to the Issuer an initial portfolio of Collateral Interests, each as identified on Exhibit A attached hereto (the “Closing Date Collateral Interests”);              WHEREAS, the Seller may sell to the Issuer, from time to time, fully-funded Future Funding Companion Participations (as defined in the Indenture) or funded portions thereof (the “Related Funded Companion Participations” and, together with the Closing Date Collateral Interests, the “Collateral Interests”) and the Issuer may purchase such Companion Participations or portions thereof, and all payments and collections thereon after the related Subsequent Seller Transfer Date (as defined herein) on or before the end of the Companion Participation Acquisition Period (as defined in the Indenture) from the Seller;              WHEREAS, in connection with the sale of any Collateral Interests to the Issuer, the Seller desires to release any interest it may have in such Collateral Interests and desires to make certain representations and warranties regarding such Collateral Interests;              WHEREAS, the Issuer and GPMT 2018-FL1 LLC, a Delaware limited liability company (the “Co-Issuer”), intend to issue (a) the U.S.$442,215,000 Class A Senior Secured Floating Rate Notes Due 2035 (the “Class A Notes”), (b) the U.S.$52,693,000 Class A-S Second Priority Secured Floating Rate Notes Due 2035 (the “Class A-S Notes”), (c) the U.S.$49,595,000 Class B Third Priority Floating Rate Notes Due 2035 (the “Class B Notes”), (d) the U.S.$47,527,000 Class C Fourth Priority Floating Rate Notes Due 2035 (the “Class C Notes”), (e) the U.S.$68,192,000 Class D Fifth Priority Floating Rate Notes Due 2035 (the “Class D Notes” and, together with the Class A Notes, the Class A-S Notes, the Class B Notes and the Class C Notes, the “Senior Notes”) and the Issuer intends to issue the U.S.$35,130,000 Class E Sixth Priority Secured Floating Rate Notes Due 2035 (the “Class E Notes”) and the U.S.$37,195,000 Class F Seventh Priority Secured Floating Rate Notes Due 2035 (the “Class F Notes” and, together with the Class E Notes and the Senior Notes, the “Notes”) pursuant to an indenture, dated as of May 9, 2018 (the “Indenture”), by and among the Issuer, the Co-Issuer, Seller, as advancing agent, Wilmington Trust, National Association, as trustee (the “Trustee”), and Wells Fargo Bank, National Association, as note administrator (in such capacity, the “Note Administrator”);              WHEREAS, pursuant to its Governing Documents, certain resolutions of its Board of Directors and a preferred share paying agency agreement, the Issuer also intends to   24552556.6.BUSINESS 

 

issue the U.S.$94,022,414 aggregate notional amount preferred shares (the “Preferred Shares” and, together with the Notes, the “Securities”); and              WHEREAS, the Issuer intends to pledge the Collateral Interests purchased hereunder by the Issuer to the Trustee as security for the Notes.              NOW, THEREFORE, the parties hereto agree as follows:              1.    Defined Terms.              Capitalized terms used and not otherwise defined herein shall have the same meanings ascribed to such terms in the Indenture.              “Assignment of Leases, Rents and Profits”: With respect to any Mortgage, an assignment of leases, rents and profits thereunder, notice of transfer or equivalent instrument in recordable form, sufficient under the laws of the jurisdiction wherein the Mortgaged Property is located to reflect the assignment of leases to the Mortgagee.              “Assignment of Mortgage”: With respect to any Mortgage, an assignment of the Mortgage, notice of transfer or equivalent instrument in recordable form, sufficient under the laws of the jurisdiction wherein the related Mortgaged Property is located to reflect the assignment of the Mortgage to the Mortgagee.              “Borrower”: With respect to any Commercial Real Estate Loan, the related borrower or other obligor thereunder.              “Collateral Interest”: As defined in the Indenture.              “Collateral Interest File”: As defined in the Indenture.              “Combined Loan“: With respect to any Pari Passu Participation that represents an interest in both (i) a Mortgage Loan and (ii) a Mezzanine Loan secured by a pledge of all of the equity interests in the Borrower under such Mortgage Loan, such Mortgage Loan together with such Mezzanine Loan, as if they are a single loan.              “Commercial Real Estate Loan”: Any Whole Loan or Participated Loan.              “Companion Participation Acquisition Period”: As defined in the Indenture.              “Companion Participation Holder”: The holder of any Companion Participation.              “Cut-Off Date”: With respect to each Collateral Interest, May 9, 2018.              “Document Defect”: Any document or documents constituting a part of a Collateral Interest File that has not been properly executed, has not been delivered within the time periods provided for herein, has not been properly executed, is missing, does not appear to be regular on its face or contains information that does not conform in any material respect with   24552556.6.BUSINESS                  -2- 

 

the corresponding information set forth in the Collateral Interest Schedule attached hereto as Exhibit A or as set forth on an exhibit to a Subsequent Transfer Instrument.              “Exception Schedule”: The schedule identifying any exceptions to the representations and warranties made with respect to the Collateral Interests to be conveyed hereunder, which is attached hereto as Schedule 1(a) to Exhibit B or as attached to any Subsequent Transfer Instrument.              “Funded Companion Participations Purchase Price”: As defined in Section 2(b).              “Future Funding Amount”: As defined in the Indenture.              “Future Funding Companion Participation”: With respect to each Collateral Interest that is a Pari Passu Participation, the future funding companion participation interest, which (unless it is acquired as a Related Funded Companion Participation after the Closing Date in accordance with the terms of the Indenture) is not an asset of the Issuer and is not part of the Collateral.              “Loan Documents”:  The documents evidencing and securing a Collateral Interest.              “Material Breach”: As defined in Section 4(e).              “Material Document Defect”: A Document Defect that materially and adversely affects the value of a Collateral Interest, the interest of the Noteholders or the ownership interests of the Issuer or any assignee thereof in such Collateral Interest.              “Mezzanine Loan”: A mezzanine loan secured by a pledge of all of the equity interest in a Borrower under a Mortgage Loan.              “Mortgage”: With respect to each Commercial Real Estate Loan, the mortgage, deed of trust, deed to secure debt or similar instrument that secures the Mortgage Note and creates a lien on the fee or leasehold interest in the related Mortgaged Property.              “Mortgage Loan”: A commercial or multi-family real estate mortgage loan secured by a first-lien mortgage or deed-of-trust (or in the case of the Collateral Interest identified on Exhibit A as “South City Plaza,” a combination of a first-lien mortgage or deed-of- trust and second-lien mortgage or deed-of-trust) on commercial and/or multi-family properties.              “Mortgage Note or Note”: With respect to each Mortgage Loan, the promissory note evidencing the indebtedness of the related Borrower, together with any rider, addendum or amendment thereto, or any renewal, substitution or replacement of such note.              “Mortgage Rate”: The stated rate of interest on a Mortgage Loan.              “Mortgaged Property”: With respect to any Mortgage Loan or Mezzanine Loan, the commercial, multi-family housing community and/or multi-family mortgage property or properties directly or indirectly securing such Mortgage Loan or Mezzanine Loan, as applicable.   24552556.6.BUSINESS                  -3- 

 

            “Mortgagee”: With respect to each Collateral Interest, the party secured by the related Mortgage.              “Non-CLO Custody Collateral Interest”: The Collateral Interests identified on Exhibit A as “Perkins Rowe,” “Shippan Landing,” “Sunset Industrial Park,” “Renaissance Dallas,” “5250 Lankershim Plaza” and “Patewood Corporate Center.”              “Pari Passu Participation”: A fully-funded or partially-funded pari passu participation interest in a Participated Loan.              “Participated Loan”: Any Mortgage Loan or Combined Loan in which a Pari Passu Participation represents an interest.              “Participation”: Any Pari Passu Participation and/or the related Companion Participation, as applicable and as the context may require.              “Participation Agent”: With respect to each Participated Loan that is a Non-CLO Custody Collateral Interest, the party designated as such under the related Participation Agreement.              “Participation Agreement”: With respect to each Participated Loan, the participation agreement that governs the rights and obligations of the holders of the related Pari Passu Participation and the related Companion Participation.              “Participation Custodial Agreement”: With respect to each Participated Loan that is Non-CLO  Custody Collateral Interest, that certain Custodial Agreement entered into in accordance with the related Participation Agreement and pursuant to which the Participation Custodian holds the loan file with respect to such Participated Loan.              “Participation Custodian”: With respect to each Participated Loan that is Non- CLO Custody Collateral Interest, the document custodian or similar party under the related Participation Custodial Agreement.              “Patewood Mezzanine Loan”: As defined in Section 4(f).              “Repurchase Price”: The sum of the following (in each case, without duplication) as of the date of such repurchase: (i) the then-Stated Principal Balance of such Collateral Interest, plus (ii) accrued and unpaid interest on such Collateral Interest, plus (iii) any unreimbursed advances made under the Indenture or the Servicing Agreement, plus (iv) accrued and unpaid interest on advances made under the Indenture or the Servicing Agreement on the Collateral Interest, plus (v) any reasonable costs and expenses (including, but not limited to, the cost of any enforcement action incurred by the Issuer or the Trustee in connection with any such repurchase).              “Retained Interest”: Any origination fees paid on the Collateral Interests and any interest in respect of any Collateral Interest that accrued prior to the Closing Date and has not been paid to Seller.   24552556.6.BUSINESS                  -4- 

 

            “Servicing File”: The file maintained by the servicer with respect to each Collateral Interest.              “Stated Principal Balance”: With respect to each Collateral Interest, the principal balance as of the Cut-off Date as reduced (to not less than zero) on each Payment Date by (i) all payments or other collections of principal of such Collateral Interest received or deemed received thereon during the related Collection Period and (ii) any principal forgiven by the Special Servicer and other principal losses realized in respect of such Collateral Interest during the related Collection Period.              “Subsequent Seller Transfer Date”: As defined in Section 2(b).              “Subsequent Transfer Instrument”: As defined in Section 2(b).              “Whole Loan”: A whole mortgage loan (and not a participation interest in a mortgage loan and/or a mezzanine loan) secured by commercial or multi-family real estate.              2.    Purchase and Sale of the Collateral Interests.              (a)   Set forth in Exhibit A hereto is a list of the Closing Date Collateral Interests and certain other information with respect to each of the Closing Date Collateral Interests. The Seller agrees to sell to the Issuer, and the Issuer agrees to purchase from the Seller, all of the Closing Date Collateral Interests at an aggregate purchase price of U.S.$816,091,291 (the “Purchase Price”). Immediately prior to such sale, the Seller hereby conveys and assigns all right, title and interest it may have in such Closing Date Collateral Interests to the Issuer. The sale and transfer of the Closing Date Collateral Interests to the Issuer is inclusive of all rights and obligations from the Closing Date forward, with respect to such Closing Date Collateral Interests, provided, that the sale and transfer of Closing Date Collateral Interests that are Pari Passu Participations are made subject to the rights and obligations of the Companion Participation Holder under the related Participation Agreement, and provided however, it expressly excludes any conveyance of any Retained Interest which shall remain the property of the Seller and shall not be conveyed to the Issuer. The Issuer shall cause any Retained Interest to be paid to the Seller (or the Seller’s designee) promptly upon receipt in accordance with the terms and conditions hereof, the Servicing Agreement and the Indenture. For the avoidance of doubt, the Seller is not transferring any obligation to fund any Future Funding Amounts under the Participated Loans, all of which will remain the obligation of the party specified under the related Participation Agreement. Delivery or transfer of the Closing Date Collateral Interests shall be made on May 9, 2018 (the “Closing Date”), at the time and in the manner agreed upon by the parties. Upon receipt of evidence of the delivery or transfer of the Closing Date Collateral Interests to the Issuer or its designee, the Issuer shall pay or cause to be paid to the Seller the Purchase Price in the manner agreed upon by the Seller and the Issuer.              (b)   From time to time, during the period commencing on the Closing Date and ending on the last day of the Companion Participation Acquisition Period, the Seller may present Related Funded Companion Participations to the Issuer for purchase hereunder. If the conditions set forth in Section 3 below are satisfied with respect to the Related Funded Companion Participations, the Issuer may purchase and the Seller shall sell and assign without recourse,   24552556.6.BUSINESS                  -5- 

 

except as expressly provided in this Agreement, to the Issuer, but subject to the other terms and provisions of this Agreement, all of the right, title and interest of the Seller in and to (i) the Related Funded Companion Participations identified on the schedule attached to the related subsequent transfer instrument (a “Subsequent Transfer Instrument”), which Subsequent Transfer Instrument shall be in the form of Exhibit K to the Indenture and delivered by the Seller on the date of such sale (each, a “Subsequent Seller Transfer Date”), and (ii) all amounts received or receivable on the Related Funded Companion Participations, whether now existing or hereafter acquired, after the related Subsequent Seller Transfer Date (other than amounts due prior to the related Subsequent Seller Transfer Date). Such sale and assignment of the Related Funded Companion Participation to the Issuer is inclusive of all rights and obligations from the Subsequent Seller Transfer Date forward, with respect to such Related Funded Companion Participations, provided however, it expressly excludes any conveyance of any Retained Interest which shall remain the property of the Seller and shall not be conveyed to the Issuer hereunder. The purchase price with respect to each Related Funded Companion Participation (the “Funded Companion Participation Purchase Price”) shall be at a price no greater than the outstanding principal balance of such Related Funded Companion Participation, as set forth in the related Subsequent Transfer Instrument.              The sale to the Issuer of the Related Funded Companion Participations identified on the schedule attached to the related Subsequent Transfer Instrument shall be absolute and is intended by the Seller and the Issuer to constitute and to be treated as an absolute sale of the Related Funded Companion Participation by the Seller to the Issuer, conveying good title free and clear of any liens, claims, encumbrances or rights of others from the Seller to the Issuer and the Related Funded Companion Participations shall not be part of the Seller’s estate in the event of the insolvency or bankruptcy of the Seller. Each schedule of a Related Funded Companion Participation pursuant to a Subsequent Transfer Instrument is hereby incorporated and made a part of this Agreement.              (c)   Within 45 days after the Closing Date, each UCC financing statement in favor of the Issuer or the Participation Agent that is required to be filed in accordance with the definition of “Collateral Interest File” in the Indenture or “Participated Loan File” in the Participation Custodial Agreement, as applicable, shall be submitted for filing. In the event that any such UCC financing statement is lost or returned unrecorded or unfiled, as the case may be, because of a defect therein, the Seller shall promptly prepare or cause the preparation of a substitute therefor or cure or cause the curing of such defect, as the case may be, and shall thereafter deliver the substitute or corrected document for recording or filing, as appropriate, at the Seller’s expense. In the event that the Seller receives the original filed copy, the Seller shall, or shall cause a third party vendor or any other party under its control to, promptly upon receipt of the original recorded or filed copy (and in no event later than 5 Business Days following such receipt) deliver such original to the Custodian, with evidence of filing thereon.              3.    Conditions.              The obligations of the parties under this Agreement are subject to satisfaction of the following conditions:   24552556.6.BUSINESS                  -6- 

 

            (a)   the representations and warranties contained herein shall be accurate and complete (i) as of the Closing Date, except as set forth in the Exception Schedule, with respect to the Closing Date Collateral Interests and (ii) as of each Subsequent Seller Transfer Date, except as set forth in the Subsequent Transfer Instrument, with respect to any Future Funding Companion Participations;              (b)   on the Closing Date and on each Subsequent Seller Transfer Date, as applicable, counsel for the Issuer shall have been furnished with all such documents, certificates and opinions as such counsel may reasonably request in order to evidence the accuracy and completeness of any of the representations, warranties or statements of the Seller Parties, the performance of any of the Collateral Interests of the Seller hereunder or the fulfillment of any of the conditions herein contained;              (c)   with respect to the Closing Date Collateral Interests, the issuance of the Securities and receipt by the Issuer of full payment therefor; and              (d)   with respect to the Related Funded Companion Participations sold on a Subsequent Seller Transfer Date, such Related Funded Companion Participations shall, collectively and individually (as applicable, after giving effect to the Grant of such Related Funded Companion Participations to the Issuer) satisfy or are deemed to satisfy the Acquisition Criteria in accordance with the terms of the Indenture.              4.    Covenants, Representations and Warranties.              (a)   Each party to this Agreement hereby represents and warrants to the other party that (i) it is duly organized or incorporated, as the case may be, and validly existing as an entity under the laws of the jurisdiction in which it is incorporated, chartered or organized, (ii) it has the requisite power and authority to enter into and perform this Agreement, and (iii) this Agreement has been duly authorized by all necessary action, has been duly executed by one or more duly authorized officers and is the valid and binding agreement of such party enforceable against such party in accordance with its terms.              (b)   The Seller further represents and warrants to the Issuer (i) with respect to the Closing Date Collateral Interests, as of the Closing Date and (ii) with respect to the Related Funded Companion Participations, as of each Subsequent Seller Transfer Date, that:              (i)   immediately prior to the sale of the Collateral Interests to the Issuer, the       Seller shall own the Collateral Interests, shall have good and marketable title thereto, free       and clear of any pledge, lien, security interest, charge, claim, equity, or encumbrance of       any kind, and upon the delivery or transfer of the Collateral Interests to the Issuer as       contemplated herein, the Issuer shall receive good and marketable title to the Collateral       Interests, free and clear of any pledge, lien, security interest, charge, claim, equity or       encumbrance of any kind;             (ii)   the Seller acquired its ownership in the Collateral Interests in good faith       without notice of any adverse claim, and upon the delivery or transfer of the Collateral       Interests to the Issuer as contemplated herein, the Issuer shall acquire ownership in the       Collateral Interests in good faith without notice of any adverse claim;   24552556.6.BUSINESS                  -7- 

 

           (iii)  the Seller has not assigned, pledged or otherwise encumbered any interest       in the Collateral Interests (or, if any such interest has been assigned, pledged or otherwise       encumbered, it has been released);             (iv)   none of the execution, delivery or performance by the Seller of this       Agreement shall (x) conflict with, result in any breach of or constitute a default (or an       event which, with the giving of notice or passage of time, or both, would constitute a       default) under, any term or provision of the organizational documents of the Seller, or       any material indenture, agreement, order, decree or other material instrument to which       the Seller is party or by which the Seller is bound which materially adversely affects the       Seller’s ability to perform its obligations hereunder or (y) violate any provision of any       law, rule or regulation applicable to the Seller of any regulatory body, administrative       agency or other governmental instrumentality having jurisdiction over the Seller or its       properties which has a material adverse effect;             (v)    no consent, license, approval or authorization from, or registration or       qualification with, any governmental body, agency or authority, nor any consent,       approval, waiver or notification of any creditor or lessor is required in connection with       the execution, delivery and performance by the Seller of this Agreement the failure of       which to obtain would have a material adverse effect except such as have been obtained       and are in full force and effect;             (vi)   it has adequate capital for the normal obligations reasonably foreseeable in       a business of its size and character and in light of its contemplated business operations. It       is generally able to pay, and as of the date hereof is paying, its debts as they come due. It       has not become or is not presently, financially insolvent nor will it be made insolvent by       virtue of its execution of or performance under any of the provisions of this Agreement       within the meaning of the bankruptcy laws or the insolvency laws of any jurisdiction. It       has not entered into this Agreement or the transactions effectuated hereby in       contemplation of insolvency or with intent to hinder, delay or defraud any creditor;            (vii)   no proceedings are pending or, to its knowledge, threatened against it       before any federal, state or other governmental agency, authority, administrative or       regulatory body, arbitrator, court or other tribunal, foreign or domestic, which, singularly       or in the aggregate, could materially and adversely affect the ability of the Seller to       perform any of its obligations under this Agreement; and            (viii)  the consideration received by it upon the sale of the Collateral Interests       owned by it constitutes fair consideration and reasonably equivalent value for such       Collateral Interests.              (c)   The Seller further represents and warrants to the Issuer (i) with respect to the Closing Date Collateral Interests, as of the Closing Date and (ii) with respect to the Related Funded Companion Participations, as of any Subsequent Seller Transfer Date, that:   24552556.6.BUSINESS                  -8- 

 

            (i)   the Loan Documents with respect to each Collateral Interest do not       prohibit the Issuer from granting a security interest in and assigning and pledging such       Collateral Interest to the Trustee;             (ii)   none of the Collateral Interests will cause the Issuer to have payments       subject to foreign or United States withholding tax;             (iii)  (A) with respect to each Closing Date Collateral Interest, except as set       forth in the Exception Schedule and (B) with respect to each Future Funding Companion       Participation, except as set forth in the Subsequent Transfer Instrument, the       representations and warranties set forth in Exhibit B are true and correct in all material       respects;             (iv)   the Seller has delivered to the Issuer or its designee the documents       required to be delivered with respect to each Collateral Interest set forth in the definition       of “Collateral Interest File” in the Indenture; and             (v)    if applicable, the Participation Custodian has received, or will receive, in       accordance with the timing required under the Participation Custodial Agreement, the       documents required to be delivered with respect to each Participated Loan set forth in the       definition of “Participated Loan File” in the Participation Custodial Agreement.              (d)   For purposes of the representations and warranties set forth in Exhibit B, the phrases “to the knowledge of the Seller” or “to the Seller’s knowledge” shall mean, except where otherwise expressly set forth in a particular representation and warranty, the actual state of knowledge of the Seller or any servicer acting on its behalf regarding the matters referred to, in each case: (i) at the time of the Seller’s origination or acquisition of the particular Collateral Interest, after the Seller having conducted such inquiry and due diligence into such matters as would be customarily performed by a prudent institutional commercial or multi-family, as applicable, mortgage lender; and (ii) subsequent to such origination, the Seller having utilized monitoring practices that would be utilized by a prudent commercial or multi-family, as applicable, mortgage lender and having made prudent inquiry as to the knowledge of the servicer servicing such Collateral Interest on its behalf. Also, for purposes of such representations and warranties, the phrases “to the actual knowledge of the Seller” or “to the Seller’s actual knowledge” shall mean, except where otherwise expressly set forth below, the actual state of knowledge of the Seller or any servicer acting on its behalf without any express or implied obligation to make inquiry. All information contained in documents which are part of or required to be part of a Collateral Interest File shall be deemed to be within the knowledge and the actual knowledge of the Seller. Wherever there is a reference to receipt by, or possession of, the Seller of any information or documents, or to any action taken by the Seller or not taken by the Seller, such reference shall include the receipt or possession of such information or documents by, or the taking of such action or the failure to take such action by, the Seller or any servicer acting on its behalf.              (e)   The Seller shall, not later than ninety (90) days from discovery by the Seller or receipt of written notice from any party to the Indenture of (i) its breach of a representation or a warranty pursuant to this Agreement that materially and adversely affects the   24552556.6.BUSINESS                  -9- 

 

ownership interests of the Issuer (or the Trustee as its assignee) in a Collateral Interest or the value of a Collateral Interest or the interests of the Noteholders therein (a “Material Breach”), or (ii) any Material Document Defect relating to any Collateral Interest, (1) cure such Material Breach or Material Document Defect, provided, that, if such Material Breach or Material Document Defect cannot be cured within such 90-day period (any such 90-day period, the “Initial Resolution Period”), the Seller shall repurchase the affected Collateral Interest not later than the end of such Initial Resolution Period at the Repurchase Price; provided, however, that if the Seller certifies to the Issuer and the Trustee in writing that (x) any such Material Breach or Material Document Defect, as the case may be, is capable of being cured in all material respects but not within the Initial Resolution Period and (y) the Seller has commenced and is diligently proceeding with the cure of such Material Breach or Material Document Defect, as the case may be, then the Seller shall have an additional 90-day period to complete such cure or, failing such, to repurchase the affected Collateral Interest (or the related Mortgaged Property); provided, further, that, if any such Material Document Defect is still not cured in all material respects after the Initial Resolution Period and any such additional 90-day period solely due to the failure of the Seller to have received the recorded or filed document, then the Seller shall be entitled to continue to defer its cure and repurchase obligations in respect of such Material Document Defect so long as the Seller certifies to the Trustee every 30 days thereafter that such Material Document Defect is still in effect solely because of its failure to have received the recorded or filed document and that the Seller is diligently pursuing the cure of such Material Document Defect (specifying the actions being taken); and provided, further, notwithstanding anything to the contrary, the Seller shall not be entitled to continue to defer its cure and repurchase obligations in respect of any Material Document Defect for more than 18 months after beginning of the Initial Resolution Period with respect to such Material Document Defect, or (2) subject to the consent of a Majority of the Holders of each Class of Notes (excluding any Note held by the Seller or any of its affiliates), the Seller shall make a cash payment to the Issuer in an amount that the Special Servicer on behalf of the Issuer determines is sufficient to compensate the Issuer for such breach of representation or warranty or defect (such payment, a “Loss Value Payment”), which Loss Value Payment will be deemed to cure such Material Breach or Material Document Defect. Such repurchase, cure or Loss Value Payment obligation by the Seller and GPMT’s guarantee of such obligations pursuant to Section 13 shall be the Issuer’s sole remedy for any Material Breach or Material Document Defect pursuant to this Agreement with respect to any Collateral Interest sold to the Issuer by the Seller.              (f)   In the event that the Mortgage Loan portion of the Collateral Interest referred to on Exhibit A as “Patewood Corporate Center” is repaid in full but the related Mezzanine Loan (the “Patewood Mezzanine Loan”) remains outstanding, the Seller shall repurchase the Collateral Interest relating to the Patewood Mezzanine Loan from the Issuer at a price equal to the sum of the following (in each case, without duplication) as of the date of such repurchase: (i) the then outstanding principal balance of such Collateral Interest; plus (ii) accrued and unpaid interest on such Collateral Interest; plus (iii) any unreimbursed advances; plus (iv) accrued and unpaid interest on advances on such Collateral Interest; plus (v) any reasonable costs and expenses (including, but not limited to, the cost of any enforcement action incurred by the Issuer or the Trustee in connection with any such repurchase).   24552556.6.BUSINESS                  -10- 

 

            (g)   Each Seller Party hereby acknowledges and consents to the collateral assignment by the Issuer of this Agreement and all right, title and interest thereto to the Trustee, for the benefit of the Secured Parties, as required in Sections 15.1(f)(i) and (ii) of the Indenture.              (h)   The Seller hereby covenants and agrees that it shall perform any provisions of the Indenture made expressly applicable to the Seller by the Indenture, as required by Section 15.1(f)(i) of the Indenture.              (i)   Each Seller Party hereby covenants and agrees that all of the representations, covenants and agreements made by or otherwise entered into by it in this Agreement shall also be for the benefit of the Secured Parties, as required by Section 15.1(f)(ii) of the Indenture and agrees that enforcement of any rights hereunder by the Trustee, the Note Administrator, the Servicer, or the Special Servicer, as the case may be, shall have the same force and effect as if the right or remedy had been enforced or executed by the Issuer but that such rights and remedies shall not be any greater than the rights and remedies of the Issuer under Section 4(e) above.              (j)   On or prior to the Closing Date or each Subsequent Seller Transfer Date, as applicable, the Seller shall deliver the Loan Documents to the Issuer or, at the direction of the Issuer, to the Custodian, with respect to each Collateral Interest sold to the Issuer hereunder. The Seller hereby covenants and agrees, as required by Section 15.1(f)(iii) of the Indenture, that it shall deliver to the Trustee duplicate original copies of all notices, statements, communications and instruments delivered or required to be delivered to the Issuer by each party pursuant to this Agreement.              (k)   Each Seller Party hereby covenants and agrees, as required by Section 15.1(f)(iv) of the Indenture, that it shall not enter into any agreement amending, modifying or terminating this Agreement (other than in respect of an amendment or modification to cure any inconsistency, ambiguity or manifest error, in each case, so long as such amendment or modification does not affect in any material respects the interests of any Secured Party), without notifying the Rating Agency through the 17g-5 Website as set forth in the Indenture.              (l)   GPMT and the Issuer hereby covenant, that at all times (1) GPMT will qualify as a REIT for federal income tax purposes and the Issuer will qualify as a Qualified REIT Subsidiary or other disregarded entity of GPMT for federal income tax purposes, or (2) based on an Opinion of Counsel, the Issuer will be treated as a Qualified REIT Subsidiary or other disregarded entity of a REIT other than GPMT, or (3) based on an Opinion of Counsel, the Issuer will be treated as a foreign corporation that is not engaged in a trade or business within the United States for U.S. federal income tax purposes (which Opinion may be conditioned on compliance with certain restrictions on the investment or other activities of the Issuer and/or the Servicer on behalf of the Issuer).              (m)   Except for the agreed-upon procedures report obtained from the accounting firm engaged to provide procedures involving a comparison of information in loan files for the Collateral Interests to information on a data tape relating to the Collateral Interests (the “Accountants’ Due Diligence Report”), the Seller Parties have not obtained (and, through and including the Closing Date, will not obtain) any “third party due diligence report” (as   24552556.6.BUSINESS                  -11- 

 

defined in Rule 15Ga-2 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) in connection with the transactions contemplated herein and the Offering Memorandum and, except for the accountants with respect to the Accountants’ Due Diligence Report, the Seller Parties have not employed (and, through and including the Closing Date, will not employ) any third party to engage in any activity that constitutes “due diligence services” within the meaning of Rule 17g-10 under the Exchange Act in connection with the transactions contemplated herein and in the Offering Memorandum. The Placement Agents are third-party beneficiaries of the provisions set forth in this Section 4(m).              (n)   The Issuer (A) prepared or caused to be prepared one or more reports on Form ABS-15G  (each, a “Form 15G”) containing the findings and conclusions of the Accountants’ Due Diligence Report and meeting all other requirements of that Form 15G, Rule 15Ga-2 under the Exchange Act, any other rules and regulations of the Securities and Exchange Commission and the Exchange Act; (B) provided a copy of the final draft of the Form 15G to the Placement Agents at least six business days before the first sale of any certificates; and (C) furnished each such Form 15G to the Securities and Exchange Commission on EDGAR at least five business days before the first sale of any certificates as required by Rule 15Ga-2 under the Exchange Act.              5.    Sale.              It is the intention of the parties hereto that the transfer and assignment contemplated by this Agreement shall constitute a sale of the Collateral Interests from the Seller to the Issuer and the beneficial interest in and title to the Collateral Interests shall not be part of the Seller’s estate in the event of the filing of a bankruptcy petition by or against the Seller under any bankruptcy law. In the event that, notwithstanding the intent of the parties hereto, the transfer and assignment contemplated hereby is held not to be a sale (for non-tax purposes), this Agreement shall constitute a security agreement under applicable law, and, in such event, the Seller shall be deemed to have granted, and the Seller hereby grants, to the Issuer a security interest in the Collateral Interests for the benefit of the Secured Parties and its assignees as security for the Seller’s obligations hereunder and the Seller consents to the pledge of the Collateral Interests to the Trustee.              6.    Non-Petition.              Each Seller Party agrees not to institute against, or join any other Person in instituting against the Issuer any bankruptcy, reorganization, arrangement, insolvency, moratorium or liquidation proceedings or other proceedings under U.S. federal or state bankruptcy or similar laws in any jurisdiction until at least one year and one day or, if longer, the applicable preference period then in effect after the payment in full of all Notes issued under the Indenture. This Section 6 shall survive the termination of this Agreement for any reason whatsoever.   24552556.6.BUSINESS                  -12- 

 

            7.    Amendments.              This Agreement may not be modified, amended, altered or supplemented, except upon the execution and delivery of a written agreement by the parties hereto and satisfaction of the Rating Agency Condition.              8.    Communications.              Except as may be otherwise agreed between the parties, all communications hereunder shall be made in writing to the relevant party by personal delivery or by courier or first-class registered mail, or the closest local equivalent thereto, or by facsimile transmission confirmed by personal delivery or by courier or first-class registered mail as follows:              To the Seller:    GPMT Seller, LLC                               590 Madison Avenue, 38th Floor                               New York, New York 10022                               Attention: General Counsel                               Email: GPMT2018-FL1@gpmortgagetrust.com              To the Issuer:    GPMT 2018-FL1, Ltd.                               590 Madison Avenue, 38th Floor                               New York, New York 10022                               Attention: General Counsel                               Email: GPMT2018-FL1@gpmortgagetrust.com                                with a copy to the Seller (as addressed above);              To GPMT:          Granite Point Mortgage Trust Inc.                               590 Madison Avenue, 38th Floor                               New York, New York 10022                               Attention: General Counsel                               Email: GPMT2018-FL1@gpmortgagetrust.com  or to such other address, telephone number or facsimile number as either party may notify to the other in accordance with the terms hereof from time to time. Any communications hereunder shall be effective upon receipt.              9.    Governing Law and Consent to Jurisdiction.              (a)   THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH      THE LAWS OF THE STATE OF NEW         YORK, WITHOUT REGARD TO THE CONFLICTS OF LAW      PROVISIONS THEREOF (OTHER THAN TITLE 14 OF ARTICLE 5 OF THE NEW YORK GENERAL OBLIGATIONS LAW).              (b)   The parties hereto hereby irrevocably submit to the non-exclusive jurisdiction of the United States District Court for the Southern District of New York and any court in the State of New York located in the City and County of New York, and any appellate court hearing appeals from the Courts mentioned above, in any action, suit or proceeding brought   24552556.6.BUSINESS                  -13- 

 

against it and to or in connection with this Agreement or the transaction contemplated hereunder or for recognition or enforcement of any judgment, and the parties hereto hereby irrevocably and unconditionally agree that all claims in respect of any such action or proceeding may be heard or determined in such New York State court or, to the extent permitted by law, in such federal court. The parties hereto agree that a final judgment in any such action, suit or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. To the extent permitted by applicable law, the parties hereto hereby waive and agree not to assert by way of motion, as a defense or otherwise in any such suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such courts, that the suit, action or proceeding is brought in any inconvenient forum, that the venue of the suit, action or proceeding is improper or that the subject matter thereof may not be litigated in or by such courts.              (c)   To the extent permitted by applicable law, the parties hereto shall not seek and hereby waive the right to any review of the judgment of any such court by any court of any other nation or jurisdiction which may be called upon to grant an enforcement of such judgment.              (d)   The Issuer irrevocably appoints Corporation Service Company, as its agent for service of process in New York in respect of any such suit, action or proceeding. The Issuer agrees that service of such process upon such agent shall constitute personal service of such process upon it.              (e)   Each Seller Party irrevocably consents to the service of any and all process in any action or proceeding by the mailing by certified mail, return receipt requested, or delivery requiring proof of delivery of copies of such process to it at the address set forth in Section 8 hereof.              10.   Counterparts.              This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page of this Agreement in Portable Document Format (PDF) or by facsimile transmission shall be as effective as delivery of a manually executed original counterpart to this Agreement.              11.   Limited Recourse Agreement.              All obligations of the Issuer arising hereunder or in connection herewith are limited in recourse to the Collateral and to the extent the proceeds of the Collateral, when applied in accordance with the Priority of Payments, are insufficient to meet the obligations of the Issuer hereunder in full, the Issuer shall have no further liability in respect of any such outstanding obligations and any obligations of, and claims against, the Issuer, arising hereunder or in connection herewith, shall be extinguished and shall not thereafter revive. The obligations of the Issuer hereunder or in connection herewith will be solely the corporate obligations of the Issuer and the Seller Parties will not have recourse to any of the directors, officers, employees, shareholders or affiliates of the Issuer with respect to any claims, losses, damages, liabilities, indemnities or other obligations in connection with any transactions contemplated hereby or in   24552556.6.BUSINESS                  -14- 

 

connection herewith. This Section 11 shall survive the termination of this Agreement for any reason whatsoever.              12.   Assignment and Assumption.              With respect to the Collateral Interests that are subject to a Participation Agreement, the parties hereto intend that the provisions of this Section 12 serve as an assignment and assumption agreement between the Seller, as the assignor, and the Issuer, as the assignee. Accordingly, the Seller hereby (and in accordance with and subject to all other applicable provisions of this Agreement) assigns, grants, sells, transfers, delivers, sets over, and conveys to the Issuer all right, title and interest of the Seller in, to and arising out of the related Participation Agreement and the Issuer hereby accepts (subject to applicable provisions of this Agreement) the foregoing assignment and assumes all of the rights and obligations of the Seller with respect to related Participation Agreement from and after the Closing Date. In addition, the Issuer acknowledges that each of such Collateral Interests will be serviced by, and agrees to be bound by, the terms of the applicable Servicing Agreement (as defined in the related Participation Agreement).              13.   Guarantee by GPMT              (a)   GPMT hereby unconditionally and irrevocably guarantees to the Issuer the due and punctual payment of all sums due by, and the performance of all obligations of, the Seller under Section 4(e) and Section 4(f) of this Agreement, as and when the same shall become due and payable (after giving effect to any applicable grace period) according to the terms hereof. In the case of the failure of the Seller to make any such payment or perform such obligation as and when due, GPMT hereby agrees to make such payment or cause such payment or perform such obligation to be made or such obligation to be performed, promptly upon written demand by the Issuer to GPMT, but any delay in providing such notice shall not under any circumstances reduce the liability of GPMT or operate as a waiver of Issuer’s right to demand payment or performance.              (b)   This guarantee shall be a guaranty of payment and performance, and the obligations of GPMT under this guarantee shall be continuing, absolute and unconditional. GPMT waives any and all defenses it may have arising out of: (i) the validity or enforceability of this Agreement; (ii) the absence of any action to enforce the same; (iii) the rendering of any judgment against the Seller or any action to enforce the same; (iv) any waiver or consent by the Issuer or any amendment or other modification to this Agreement; (v) any defense to payment hereunder based upon suretyship defenses; (vi) the bankruptcy or insolvency of the Seller, (vii) any defense based on (A) the entity status of the Seller, (B) the power and authority of the Seller to enter into this Agreement and to perform its obligations hereunder or (C) the legality, validity and enforceability of Seller’s obligation under this Agreement, or (viii) any other defense, circumstances or limitation of any nature whatsoever that would constitute a legal or equitable discharge of a guarantor or other third party obligor. This guarantee shall continue to remain in full force and effect in accordance with its terms notwithstanding the renewal, extension, modification, or waiver, in whole or in part, of any of Seller’s obligations under this Agreement or the Indenture that are subject to this guarantee.   24552556.6.BUSINESS                  -15- 

 

            (c)   GPMT waives (a) diligence, presentment, demand for payment, protest and notice of nonpayment or dishonor and all other notices and demands relating to this Agreement and (b) any requirement that the Issuer proceed first against the Seller under this Agreement or otherwise exhaust any right, power or remedy under this Agreement before proceeding hereunder.                         [SIGNATURE PAGES FOLLOW]   24552556.6.BUSINESS                  -16- 

 

 

 

 

 

 

 

                                  Exhibit A                LIST OF CLOSING DATE COLLATERAL INTERESTS            Collateral Interest            Collateral Interest Type                                     Exhibit A-1 24552556.6.BUSINESS 

 

                                  Exhibit B        COLLATERAL INTERESTS REPRESENTATIONS AND WARRANTIES   A.    Representations and Warranties Concerning Collateral Interests. With respect to each Collateral Interest: (1) Ownership of Collateral Interest. At the time of the sale, transfer and assignment to the    Issuer, no Collateral Interest was subject to any assignment (other than assignments to the    Seller) or pledge, and the Seller had good title to, and was the sole owner of, each Collateral    Interest free and clear of any and all liens, charges, pledges, encumbrances, participations    (other than with respect to the related Participation Agreement), any other ownership    interests on, in or to such Collateral Interest other than any servicing rights appointment or    similar agreement. Seller has full right and authority to sell, assign and transfer each    Collateral Interest, and the assignment to the Issuer constitutes a legal, valid and binding    assignment of such Collateral Interest free and clear of any and all liens, pledges, charges or    security interests of any nature encumbering such Mortgage Loan. (2) Collateral Interest Schedule. The information pertaining to each Collateral Interest which is    set forth in Exhibit A to the Collateral Interest Purchase Agreement is true and correct in all    material respects as of the Cut-off Date and contains all information required by the    Collateral Interest Purchase Agreement to be contained therein. B.    Representations and Warranties Concerning Mortgage Loans. With respect to each Mortgage Loan: (1) Whole Loan. Each Mortgage Loan is a whole loan and not a participation interest in a loan. (2) Loan Document Status. Each related Mortgage Note, Mortgage, Assignment of Leases, Rents    and Profits (if a separate instrument), guaranty and other agreement executed by or on behalf    of the related Borrower, guarantor or other obligor in connection with such Mortgage Loan is    the legal, valid and binding obligation of the related Borrower, guarantor or other obligor    (subject to any non-recourse provisions contained in any of the foregoing agreements and    any applicable state anti-deficiency, one action, or market value limit deficiency legislation),    as applicable, and is enforceable in accordance with its terms, except (i) as such enforcement    may  be limited by (a) bankruptcy, insolvency, fraudulent transfer, reorganization,    moratorium or other similar laws affecting the enforcement of creditors’ rights generally and    (b) general principles of equity (regardless of whether such enforcement is considered in a    proceeding in equity or at law) and (ii) that certain provisions in such Loan Documents    (including, without limitation, provisions requiring the payment of default interest, late fees    or prepayment/yield maintenance fees, charges and/or premiums) are, or may be, further    limited or rendered unenforceable by or under applicable law, but (subject to the limitations    set forth in clause (i) above) such limitations or unenforceability will not render such Loan    Documents invalid as a whole or materially interfere with the mortgagee’s realization of the                                    Exhibit B-1 24552556.6.BUSINESS 

 

   principal benefits and/or security provided thereby (clauses (i) and (ii) collectively, the    “Standard Qualifications”).     Except as set forth in the immediately preceding sentences, there is no valid offset, defense,    counterclaim or right of rescission available to the related Borrower with respect to any of    the related Mortgage Notes, Mortgages or other Loan Documents, including, without    limitation, any such valid offset, defense, counterclaim or right based on intentional fraud by    Seller in connection with the origination of the Mortgage Loan, that would deny the    mortgagee the principal benefits intended to be provided by the Mortgage Note, Mortgage or    other Loan Documents. (3) Mortgage Provisions. The Loan Documents for each Mortgage Loan contain provisions that    render the rights and remedies of the holder thereof adequate for the practical realization    against the Mortgaged Property of the principal benefits of the security intended to be    provided thereby, including realization by judicial or, if applicable, non-judicial foreclosure    subject to the limitations set forth in the Standard Qualifications. (4) Loan Document Status; Waivers and Modifications. Since origination and except by written    instruments set forth in the related Collateral Interest File or as otherwise provided in the    related Loan Documents (a) the material terms of the Mortgage, Mortgage Note, Mortgage    Loan guaranty, Participation Agreement, if applicable, and related Loan Documents have not    been waived, impaired, modified, altered, satisfied, canceled, subordinated or rescinded in    any respect that could be reasonably expected to have a material adverse effect on such    Mortgage Loan; (b) no related Mortgaged Property or any portion thereof has been released    from the lien of the related Mortgage in any manner which materially interferes with the    security intended to be provided by such Mortgage or the use or operation of the remaining    portion of such Mortgaged Property; and (c) neither the related Borrower nor the related    guarantor nor the related participation institution has been released from its material    obligations under the Mortgage Loan or Participation, if applicable. With respect to each    Mortgage Loan, except as contained in a written document included in the Collateral Interest    File, there have been no modifications, amendments or waivers, that could be reasonably    expected to have a material adverse effect on such Mortgage Loan consented to by Seller on    or after the Cut-off Date. (5) Lien; Valid Assignment. Subject to the Standard Qualifications, each assignment of    Mortgage and assignment of Assignment of Leases, Rents and Profits to the Issuer    constitutes a legal, valid and binding assignment to the Issuer. Each related Mortgage and    Assignment of Leases, Rents and Profits is freely assignable without the consent of the    related Borrower. Each related Mortgage is a legal, valid and enforceable first lien on the    related Borrower’s fee or leasehold interest in the Mortgaged Property in the principal    amount of such Mortgage Loan or allocated loan amount (subject only to Permitted    Encumbrances (as defined below) and the exceptions to paragraph (6) set forth in Schedule    1(a) to this Exhibit B (each such exception, a “Title Exception”)), except as the enforcement    thereof may be limited by the Standard Qualifications. Such Mortgaged Property (subject to    and excepting Permitted Encumbrances and the Title Exceptions) as of origination was, and    as of the Cut-off Date, to the Seller’s knowledge, is free and clear of any recorded    mechanics’ liens, recorded materialmen’s liens and other recorded encumbrances which are                                    Exhibit B-2 24552556.6.BUSINESS 

 

   prior to or equal with the lien of the related Mortgage, except those which are bonded over,    escrowed for or insured against by a lender’s title insurance policy (as described below), and,    to the Seller’s knowledge and subject to the rights of tenants (as tenants only) (subject to and    excepting Permitted Encumbrances and the Title Exceptions), no rights exist which under    law could give rise to any such lien or encumbrance that would be prior to or equal with the    lien of the related Mortgage, except those which are bonded over, escrowed for or insured    against by a lender’s title insurance policy (as described below). Notwithstanding anything    herein to the contrary, no representation is made as to the perfection of any security interest    in rents or other personal property to the extent that possession or control of such items or    actions other than the filing of Uniform Commercial Code (“UCC”) financing statements is    required in order to effect such perfection. (6) Permitted Liens; Title Insurance. Each Mortgaged Property securing a Mortgage Loan is    covered by an American Land Title Association loan title insurance policy or a comparable    form of loan title insurance policy approved for use in the applicable jurisdiction (or, if such    policy is yet to be issued, by a pro forma policy, a preliminary title policy with escrow    instructions or a “marked up” commitment, in each case binding on the title insurer) (the    “Title Policy”) in the original principal amount of such Mortgage Loan (or with respect to a    Mortgage Loan secured by multiple properties, an amount equal to at least the allocated loan    amount with respect to the Title Policy for each such property) after all advances of principal    (including any advances held in escrow or reserves), that insures for the benefit of the owner    of the indebtedness secured by the Mortgage, the first priority lien of the Mortgage, which    lien is subject only to (a) the lien of current real property taxes, water charges, sewer rents    and assessments not yet due and payable; (b) covenants, conditions and restrictions, rights of    way, easements and other matters of public record; (c) the exceptions (general and specific)    and exclusions set forth in such Title Policy or appearing of record; (d) other matters to    which like properties are commonly subject; (e) the rights of tenants (as tenants only) under    leases (including subleases) pertaining to the related Mortgaged Property and condominium    declarations; and (f) if the related Mortgage Loan is cross-collateralized and cross-defaulted    with another Mortgage Loan (each a “Crossed Mortgage Loan”), the lien of the Mortgage for    another Mortgage Loan that is cross-collateralized and cross-defaulted with such Crossed    Mortgage Loan, provided that none of which items (a) through (f), individually or in the    aggregate, materially and adversely interferes with the value or current use of the Mortgaged    Property or the security intended to be provided by such Mortgage or the Borrower’s ability    to pay its obligations when they become due (collectively, the “Permitted Encumbrances”).    Except as contemplated by clause (f) of the preceding sentence, none of the Permitted    Encumbrances are mortgage liens that are senior to or coordinate and co-equal with the lien    of the related Mortgage. Such Title Policy (or, if it has yet to be issued, the coverage to be    provided thereby) is in full force and effect, all premiums thereon have been paid and no    claims have been made by the Seller thereunder and no claims have been paid thereunder.    Neither the Seller, nor to the Seller’s knowledge, any other holder of the Mortgage Loan, has    done, by act or omission, anything that would materially impair the coverage under such    Title Policy. (7) Junior Liens. It being understood that B notes secured by the same Mortgage as a Mortgage    Loan are not subordinate mortgages or junior liens, except for any Crossed Mortgage Loan,    there are, as of origination, and to the Seller’s knowledge, as of the Cut-off Date, no                                    Exhibit B-3 24552556.6.BUSINESS 

 

   subordinate mortgages or junior liens securing the payment of money encumbering the    related Mortgaged Property (other than Permitted Encumbrances and the Title Exceptions,    taxes and assessments, mechanics and materialmen’s liens (which are the subject of the    representation in paragraph (5) above), and equipment and other personal property    financing). The Seller has no knowledge of any mezzanine debt secured directly by interests    in the related Borrower except as set forth in Schedule 1(b). (8) Assignment of Leases, Rents and Profits. There exists as part of the related Collateral    Interest File an Assignment of Leases, Rents and Profits (either as a separate instrument or    incorporated into the related Mortgage). Subject to the Permitted Encumbrances and the Title    Exceptions, each related Assignment of Leases, Rents and Profits creates a valid first-priority    collateral assignment of, or a valid first-priority lien or security interest in, rents and certain    rights under the related lease or leases, subject only to a license granted to the related    Borrower to exercise certain rights and to perform certain obligations of the lessor under such    lease or leases, including the right to operate the related leased property, except as the    enforcement thereof may be limited by the Standard Qualifications. The related Mortgage or    related Assignment of Leases, Rents and Profits, subject to applicable law, provides that,    upon an event of default under the Mortgage Loan, a receiver is permitted to be appointed for    the collection of rents or for the related mortgagee to enter into possession to collect the rents    or for rents to be paid directly to the mortgagee. (9) UCC Filings. If the related Mortgaged Property is operated as a hospitality property, the    Seller has filed and/or recorded or caused to be filed and/or recorded (or, if not filed and/or    recorded, have been submitted in proper form for filing and/or recording), UCC financing    statements in the appropriate public filing and/or recording offices necessary at the time of    the origination of the Mortgage Loan to perfect a valid security interest in all items of    physical personal property reasonably necessary to operate such Mortgaged Property owned    by such Borrower and located on the related Mortgaged Property (other than any non-    material personal property, any personal property subject to a purchase money security    interest, a sale and leaseback financing arrangement as permitted under the terms of the    related Loan Documents or any other personal property leases applicable to such personal    property), to the extent perfection may be effected pursuant to applicable law by recording or    filing, as the case may be. Subject to the Standard Qualifications, each related Mortgage (or    equivalent document) creates a valid and enforceable lien and security interest on the items    of personalty described above. No representation is made as to the perfection of any security    interest in rents or other personal property to the extent that possession or control of such    items or actions other than the filing of UCC financing statements are required in order to    effect such perfection. (10)  Condition of Property. Seller or the originator of the Mortgage Loan inspected or caused    to be inspected each related Mortgaged Property within six months of origination of the    Mortgage Loan and within twelve months of the Cut-off Date.     An engineering report or property condition assessment was prepared in connection with the    origination of each Mortgage Loan no more than twelve months prior to the Cut-off Date.    To the Seller’s knowledge, based solely upon due diligence customarily performed in    connection with the origination of comparable mortgage loans, as of the Closing Date, each                                    Exhibit B-4 24552556.6.BUSINESS 

 

   related Mortgaged Property was free and clear of any material damage (other than (i) any    damage or deficiency that is estimated to cost less than $50,000 to repair, (ii) any deferred    maintenance for which escrows were established at origination and (iii) any damage fully    covered by insurance) that would affect materially and adversely the use or value of such    Mortgaged Property as security for the Mortgage Loan. (11)  Taxes and Assessments. All real estate taxes, governmental assessments and other    similar outstanding governmental charges (including, without limitation, water and sewage    charges), or installments thereof, that could be a lien on the related Mortgaged Property that    would be of equal or superior priority to the lien of the Mortgage and that prior to the Cut-off    Date have become delinquent in respect of each related Mortgaged Property have been paid,    or an escrow of funds has been established in an amount sufficient to cover such payments    and reasonably estimated interest and penalties, if any, thereon. For purposes of this    representation and warranty, real estate taxes and governmental assessments and other    outstanding governmental charges and installments thereof shall not be considered delinquent    until the earlier of (a) the date on which interest and/or penalties would first be payable    thereon and (b) the date on which enforcement action is entitled to be taken by the related    taxing authority. (12)  Condemnation. As of the date of origination and to the Seller’s knowledge as of the Cut-    off Date, there is no proceeding pending, and, to the Seller’s knowledge as of the date of    origination and as of the Cut-off Date, there is no proceeding threatened, for the total or    partial condemnation of such Mortgaged Property that would have a material adverse effect    on the value, use or operation of the Mortgaged Property. (13)  Actions Concerning Mortgage Loan. To the Seller’s knowledge, based on evaluation of    the Title Policy (as defined in paragraph 6), an engineering report or property condition    assessment as described in paragraph 10, applicable local law compliance materials as    described in paragraph 24, reasonable and customary bankruptcy, civil records, UCC-1, and    judgment searches of the Borrowers and guarantors, and the ESA (as defined in paragraph    40), on and as of the date of origination and as of the Cut-off Date, there was no pending or    filed action, suit or proceeding, involving any Borrower, guarantor, or Borrower’s interest in    the Mortgaged Property, an adverse outcome of which would reasonably be expected to    materially and adversely affect (a) such Borrower’s title to the Mortgaged Property, (b) the    validity or enforceability of the Mortgage, (c) such Borrower’s ability to perform under the    related Mortgage Loan, (d) such guarantor’s ability to perform under the related guaranty,    (e) the principal benefit of the security intended to be provided by the Loan Documents or    (f) the current principal use of the Mortgaged Property. (14)  Escrow Deposits. All escrow deposits and payments required to be escrowed with lender    pursuant to each Mortgage Loan are in the possession, or under the control, of the Seller or    its servicer, and there are no deficiencies (subject to any applicable grace or cure periods) in    connection therewith, and all such escrows and deposits (or the right thereto) that are    required to be escrowed with lender under the related Loan Documents are being conveyed    by the Seller to the Issuer or its servicer. (15)  No Holdbacks. The Stated Principal Balance as of the Cut-off Date of the Collateral    Interest attached as Exhibit A to this Agreement has been fully disbursed as of the Cut-off                                    Exhibit B-5 24552556.6.BUSINESS 

 

   Date and there is no requirement for future advances thereunder except in those cases where    the full amount of the Mortgage Loan has been disbursed but a portion thereof is being held    in escrow or reserve accounts pending the satisfaction of certain conditions relating to    leasing, repairs or other matters with respect to the related Mortgaged Property, the Borrower    or other considerations determined by Seller to merit such holdback. (16)  Insurance. Each related Mortgaged Property is, and is required pursuant to the related    Mortgage to be, insured by a property insurance policy providing coverage for loss in    accordance with coverage found under a “special cause of loss form” or “all risk form” that    includes replacement cost valuation issued by an insurer meeting the requirements of the    related Loan Documents and having a claims-paying or financial strength rating of any one    of the following: (i) at least “A-:VII” from A.M. Best Company, (ii) at least “A3” (or the    equivalent) from Moody’s Investors Service, Inc. (“Moody’s”) or (iii) at least “A-“ from    Standard & Poor’s Ratings Services, a Standard & Poor’s Financial Services LLC Business    (“S&P”) (collectively the “Insurance Rating Requirements”), in an amount (subject to a    customary deductible) not less than the lesser of (1) the original principal balance of the    Mortgage Loan and (2) the full insurable value on a replacement cost basis of the    improvements, furniture, furnishings, fixtures and equipment owned by the Borrower and    included in the Mortgaged Property (with no deduction for physical depreciation), but, in any    event, not less than the amount necessary or containing such endorsements as are necessary    to avoid the operation of any coinsurance provisions with respect to the related Mortgaged    Property.     Each related Mortgaged Property is also covered, and required to be covered pursuant to the    related Loan Documents, by business interruption or rental loss insurance which (subject to a    customary deductible) covers a period of not less than 12 months (or with respect to each    Mortgage Loan on a single asset with a principal balance of $50 million or more, 18 months).     If any material part of the improvements, exclusive of a parking lot, located on a Mortgaged    Property is in an area identified in the Federal Register by the Federal Emergency    Management Agency as having special flood hazards, the related Borrower is required to    maintain insurance in an amount that is at least equal to the lesser of (1) the outstanding    principal balance of the Mortgage Loan and (2) the maximum amount of such insurance    available under the National Flood Insurance Program.     If the Mortgaged Property is located within 25 miles of the coast of the Gulf of Mexico or the    Atlantic coast of Florida, Georgia, South Carolina or North Carolina, the related Borrower is    required to maintain coverage for windstorm and/or windstorm related perils and/or “named    storms” issued by an insurer meeting the Insurance Rating Requirements or endorsement    covering damage from windstorm and/or windstorm related perils and/or named storms.     The Mortgaged Property is covered, and required to be covered pursuant to the related Loan    Documents, by a commercial general liability insurance policy issued by an insurer meeting    the Insurance Rating Requirements including coverage for property damage, contractual    damage and personal injury (including bodily injury and death) in amounts as are generally    required by the Seller for loans originated for securitization, and in any event not less than $1    million per occurrence and $2 million in the aggregate.                                    Exhibit B-6 24552556.6.BUSINESS 

 

   An architectural or engineering consultant has performed an analysis of each of the    Mortgaged Properties located in seismic zones 3 or 4 in order to evaluate the structural and    seismic condition of such property, for the sole purpose of assessing either the scenario    expected limit (“SEL”) or the probable maximum loss (“PML”) for the Mortgaged Property    in the event of an earthquake. In such instance, the SEL or PML, as applicable, was based on    a 475-year return period, an exposure period of 50 years and a 10% probability of    exceedance. If the resulting report concluded that the SEL or PML, as applicable, would    exceed 20% of the amount of the replacement costs of the improvements, earthquake    insurance on such Mortgaged Property was obtained by an insurer rated at least “A:VII” by    A.M. Best Company or “A3” (or the equivalent) from Moody’s or “A-“ by S&P, in an    amount not less than 100% of the SEL or PML, as applicable.     The Loan Documents require insurance proceeds in respect of a property loss to be applied    either (a) to the repair or restoration of all or part of the related Mortgaged Property, with    respect to all property losses in excess of 5% of the then outstanding principal amount of the    related Mortgage Loan, the lender (or a trustee appointed by it) having the right to hold and    disburse such proceeds as the repair or restoration progresses, or (b) to the reduction of the    outstanding principal balance of such Mortgage Loan together with any accrued interest    thereon.     All premiums on all insurance policies referred to in this section required to be paid as of the    Cut-off Date have been paid, and such insurance policies name the lender under the    Mortgage Loan and its successors and assigns as a loss payee under a mortgagee    endorsement clause or, in the case of the general liability insurance policy, as named or    additional insured. Such insurance policies will inure to the benefit of the Trustee. Each    related Mortgage Loan obligates the related Borrower to maintain all such insurance and, at    such Borrower’s failure to do so, authorizes the lender to maintain such insurance at the    Borrower’s cost and expense and to charge such Borrower for related premiums. All such    insurance policies (other than commercial liability policies) require at least 10 days’ prior    notice to the lender of termination or cancellation arising because of nonpayment of a    premium and at least 30 days prior notice to the lender of termination or cancellation (or such    lesser period, not less than 10 days, as may be required by applicable law) arising for any    reason other than non-payment of a premium and no such notice has been received by Seller. (17)  Access; Utilities; Separate Tax Lots. Each Mortgaged Property (a) is located on or    adjacent to a public road and has direct legal access to such road, or has access via an    irrevocable easement or irrevocable right of way permitting ingress and egress to/from a    public road, (b) is served by or has uninhibited access rights to public or private water and    sewer (or well and septic) and all required utilities, all of which are appropriate for the    current use of the Mortgaged Property, and (c) constitutes one or more separate tax parcels    which do not include any property which is not part of the Mortgaged Property or is subject    to an endorsement under the related Title Policy insuring the Mortgaged Property, or in    certain cases, an application has been, or will be, made to the applicable governing authority    for creation of separate tax lots, in which case the Mortgage Loan requires the Borrower to    escrow an amount sufficient to pay taxes for the existing tax parcel of which the Mortgaged    Property is a part until the separate tax lots are created or the non-recourse carveout                                    Exhibit B-7 24552556.6.BUSINESS 

 

   guarantor under the Mortgage Loan has indemnified the mortgagee for any loss suffered in    connection therewith. (18)  No Encroachments.  To Seller’s knowledge based solely on surveys obtained in    connection with origination (which may have been a previously existing “as built” survey)    and the lender’s Title Policy (or, if such policy is not yet issued, a pro forma title policy, a    preliminary title policy with escrow instructions or a “marked up” commitment) obtained in    connection with the origination of each Mortgage Loan, all material improvements that were    included for the purpose of determining the appraised value of the related Mortgaged    Property at the time of the origination of such Mortgage Loan are within the boundaries of    the related Mortgaged Property, except encroachments that do not materially and adversely    affect the value or current use of such Mortgaged Property or for which insurance or    endorsements were obtained under the Title Policy. No improvements on adjoining parcels    encroach onto the related Mortgaged Property except for encroachments that do not    materially and adversely affect the value or current use of such Mortgaged Property or for    which insurance or endorsements were obtained under the Title Policy. No material    improvements encroach upon any easements except for encroachments the removal of which    would not materially and adversely affect the value or current use of such Mortgaged    Property or for which insurance or endorsements have been obtained under the Title Policy. (19)  No Contingent Interest or Equity Participation. No Mortgage Loan has a shared    appreciation feature, any other contingent interest feature or a negative amortization feature    or an equity participation by Seller. (20)  [Intentionally left blank.] (21)  Compliance with Usury Laws. The Mortgage Rate (exclusive of any default interest, late    charges, yield maintenance charges, exit fees, or prepayment premiums) of such Mortgage    Loan complied as of the date of origination with, or was exempt from, applicable state or    federal laws, regulations and other requirements pertaining to usury. (22)  Authorized to do Business. To the extent required under applicable law, as of the Cut-off    Date and as of each date that Seller held the Mortgage Note, Seller was authorized to transact    and do business in the jurisdiction in which each related Mortgaged Property is located, or    the failure to be so authorized does not materially and adversely affect the enforceability of    such Mortgage Loan by the Issuer. (23)  Trustee under Deed of Trust. With respect to each Mortgage which is a deed of trust, as    of the date of origination and, to the Seller’s knowledge, as of the Closing Date, a trustee,    duly qualified under applicable law to serve as such, currently so serves and is named in the    deed of trust or has been substituted in accordance with the Mortgage and applicable law or    may be substituted in accordance with the Mortgage and applicable law by the related    mortgagee. (24)  Local Law Compliance. To the Seller’s knowledge, based upon any of a letter from any    governmental authorities, a legal opinion, an architect’s letter, a zoning consultant’s report,    an endorsement to the related Title Policy, or other affirmative investigation of local law    compliance consistent with the investigation conducted by the Seller for similar commercial,                                    Exhibit B-8 24552556.6.BUSINESS 

 

   multi-family and manufactured housing community mortgage loans intended for    securitization, with respect to the improvements located on or forming part of each    Mortgaged Property securing a Mortgage Loan as of the date of origination of such Mortgage    Loan and as of the Cut-off Date, there are no material violations of applicable zoning    ordinances, building codes and land laws (collectively “Zoning Regulations”) other than    those which (i) constitute a legal non-conforming use or structure, as to which the Mortgaged    Property may be restored or repaired to the full extent necessary to maintain the use of the    structure immediately prior to a casualty or the inability to restore or repair to the full extent    necessary to maintain the use or structure immediately prior to the casualty would not    materially and adversely affect the use or operation of the Mortgaged Property, (ii) are    insured by the Title Policy or other insurance policy, (iii) are insured by law and ordinance    insurance coverage in amounts customarily required by the Seller for loans originated for    securitization that provides coverage for additional costs to rebuild and/or repair the property    to current Zoning Regulations or (iv) would not have a material adverse effect on the    Mortgage Loan. The terms of the Loan Documents require the Borrower to comply in all    material respects with all applicable governmental regulations, zoning and building laws. (25)  Licenses and Permits. Each Borrower covenants in the Loan Documents that it shall    keep all material licenses, permits and applicable governmental authorizations necessary for    its operation of the Mortgaged Property in full force and effect, and to the Seller’s knowledge    based upon a letter from any government authorities or other affirmative investigation of    local law compliance consistent with the investigation conducted by the Seller for similar    commercial, multi-family and manufactured housing community mortgage loans intended for    securitization, all such material licenses, permits and applicable governmental authorizations    are in effect. The Mortgage Loan requires the related Borrower to be qualified to do business    in the jurisdiction in which the related Mortgaged Property is located. (26)  Recourse Obligations. The Loan Documents for each Mortgage Loan provide that such    Mortgage Loan is non-recourse to the related parties thereto except that (a) the related    Borrower and at least one individual or entity shall be fully liable for actual losses, liabilities,    costs and damages arising from certain acts of the related Borrower and/or its principals    specified in the related Loan Documents, which acts generally include the following: (i) acts    of fraud or intentional material misrepresentation, (ii) misappropriation of rents (following an    Event of Default), insurance proceeds or condemnation awards, (iii) intentional material    physical waste of the Mortgaged Property, and (iv) any breach of the environmental    covenants contained in the related Loan Documents, and (b) the Mortgage Loan shall become    full recourse to the related Borrower and at least one individual or entity, if the related    Borrower files a voluntary petition under federal or state bankruptcy or insolvency law. (27)  Mortgage Releases. The terms of the related Mortgage or related Loan Documents do    not provide for release of any material portion of the Mortgaged Property from the lien of the    Mortgage except (a) a partial release, accompanied by principal repayment of not less than a    specified percentage at least equal to the lesser of (i) 110% of the related allocated loan    amount of such portion of the Mortgaged Property and (ii) the outstanding principal balance    of the Mortgage Loan, (b) upon payment in full of such Mortgage Loan, (c) releases of out-    parcels that are unimproved or other portions of the Mortgaged Property which will not have    a material adverse effect on the underwritten value of the Mortgaged Property and which                                    Exhibit B-9 24552556.6.BUSINESS 

 

   were not afforded any material value in the appraisal obtained at the origination of the    Mortgage Loan and are not necessary for physical access to the Mortgaged Property or    compliance with zoning requirements, or (d) as required pursuant to an order of    condemnation. (28)  Financial Reporting and Rent Rolls. The Loan Documents for each Mortgage Loan    require the Borrower to provide the owner or holder of the Mortgage with quarterly or    monthly (other than for single-tenant properties) and annual operating statements, and    quarterly or monthly (other than for single-tenant properties) rent rolls for properties that    have leases contributing more than 5% of the in-place base rent and annual financial    statements, which annual financial statements with respect to each Mortgage Loan with more    than one Borrower are in the form of an annual combined balance sheet of the Borrower    entities (and no other entities), together with the related combined statements of operations,    members’ capital and cash flows, including a combining balance sheet and statement of    income for the Mortgaged Properties on a combined basis. (29)  Acts of Terrorism Exclusion. With respect to each Mortgage Loan over $20 million, the    related special-form all-risk insurance policy and business interruption policy (issued by an    insurer meeting the Insurance Rating Requirements) do not specifically exclude Acts of    Terrorism, as defined in the Terrorism Risk Insurance Act of 2002, as amended by the    Terrorism Risk Insurance Program Reauthorization Act of 2007 (collectively referred to as    “TRIA”), from coverage, or if such coverage is excluded, it is covered by a separate    terrorism insurance policy. With respect to each other Mortgage Loan, the related special-    form all-risk insurance policy and business interruption policy (issued by an insurer meeting    the Insurance Rating Requirements) did not, as of the date of origination of the Mortgage    Loan, and, to Seller’s knowledge, do not, as of the Cut-off Date, specifically exclude Acts of    Terrorism, as defined in TRIA, from coverage, or if such coverage is excluded, it is covered    by a separate terrorism insurance policy. With respect to each Mortgage Loan, the related    Loan Documents generally only require that the related Borrower take commercially    reasonable efforts to obtain insurance against damage resulting from acts of terrorism and    other acts of sabotage unless lack of such insurance will result in a downgrade of the ratings    of the related Mortgage Loan. (30)  Due on Sale or Encumbrance. Subject to specific exceptions set forth below, each    Mortgage Loan contains a “due on sale” or other such provision for the acceleration of the    payment of the principal balance of such Mortgage Loan if, without the consent of the holder    of the Mortgage (which consent, in some cases, may not be unreasonably withheld) and/or    complying with the requirements of the related Loan Documents (which provide for transfers    without the consent of the lender which are customarily acceptable to the Seller lending on    the security of property comparable to the related Mortgaged Property, including, without    limitation, transfers of worn-out or obsolete furnishings, fixtures, or equipment promptly    replaced with property of equivalent value and functionality and transfers by leases entered    into in accordance with the Loan Documents), (a) the related Mortgaged Property, or any    equity interest of greater than 50% in the related Borrower, is directly or indirectly pledged,    transferred or sold, other than as related to (i) family and estate planning transfers or transfers    upon death or legal incapacity, (ii) transfers to certain affiliates as defined in the related Loan    Documents, (iii) transfers that do not result in a change of Control of the related Borrower or                                   Exhibit B-10 24552556.6.BUSINESS 

 

   transfers of passive interests so long as the guarantor retains Control, (iv) transfers to another    holder of direct or indirect equity in the Borrower, a specific Person designated in the related    Loan Documents or a Person satisfying specific criteria identified in the related Loan    Documents, such as a qualified equityholder, (v) transfers of stock or similar equity units in    publicly traded companies or (vi) a substitution or release of collateral within the parameters    of paragraph (27) herein, or (vii) by reason of any mezzanine debt that existed at the    origination of the related Mortgage Loan, or future permitted mezzanine debt in, each case as    set forth in Schedule 1(b) or Schedule 1(c) to this Annex C, or (b) the related Mortgaged    Property is encumbered with a subordinate lien or security interest against the related    Mortgaged Property, other than (i) any Companion Loan or any subordinate debt that existed    at origination and is permitted under the related Loan Documents, (ii) purchase money    security interests, (iii) any Crossed Mortgage Loan as set forth in Schedule 1(d) to this    Annex C or (iv) Permitted Encumbrances. For purposes of the foregoing representation,    “Control” means the power to direct the management and policies of an entity, directly or    indirectly, whether through the ownership of voting securities or other beneficial interests, by    contract or otherwise. (31)  Single-Purpose Entity. Each Mortgage Loan requires the Borrower to be a Single-    Purpose Entity for at least as long as the Mortgage Loan is outstanding. Both the Loan    Documents and the organizational documents of the Borrower with respect to each Mortgage    Loan with a Stated Principal Balance as of the Cut-off Date in excess of $5 million provide    that the Borrower is a Single-Purpose Entity, and each Mortgage Loan with a Stated    Principal Balance as of the Cut-off Date of $20 million or more has a counsel’s opinion    regarding non-consolidation of the Borrower. For this purpose, a “Single-Purpose Entity”    shall mean an entity, other than an individual, whose organizational documents (or if the    Mortgage Loan has a Stated Principal Balance as of the Cut-off Date equal to $5 million or    less, its organizational documents or the related Loan Documents) provide substantially to    the effect that it was formed or organized solely for the purpose of owning and operating one    or more of the Mortgaged Properties securing the Mortgage Loans and prohibit it from    engaging in any business unrelated to such Mortgaged Property or Properties, and whose    organizational documents further provide, or which entity represented in the related Loan    Documents, substantially to the effect that it does not have any assets other than those related    to its interest in and operation of such Mortgaged Property or Properties, or any indebtedness    other than as permitted by the related Mortgage(s) or the other related Loan Documents, that    it has its own books and records and accounts separate and apart from those of any other    person (other than a Borrower for a Crossed Mortgage Loan), and that it holds itself out as a    legal entity, separate and apart from any other person or entity. (32)  Intentionally left blank. (33)  Floating Interest Rates. Each Mortgage Loan bears interest at a floating rate of interest    that is based on LIBOR plus a margin (which interest rate may be subject to a minimum or    “floor” rate). (34)  Ground Leases. For purposes of this Agreement, a “Ground Lease” shall mean a lease    creating a leasehold estate in real property where the fee owner as the ground lessor or sub    ground lessor conveys for a term or terms of years its entire interest in the land and buildings    and other improvements, if any, comprising the premises demised under such lease to the                                   Exhibit B-11 24552556.6.BUSINESS 

 

   ground lessee (who may, in certain circumstances, own the building and improvements on    the land), subject to the reversionary interest of the ground lessor as fee owner and does not    include industrial development agency (IDA) or similar leases for purposes of conferring a    tax abatement or other benefit.       With respect to any Mortgage Loan where the Mortgage Loan is secured by a leasehold       estate under a Ground Lease in whole or in part, and the related Mortgage does not also       encumber the related lessor’s fee interest in such Mortgaged Property, based upon the       terms of the Ground Lease and any estoppel or other agreement received from the ground       lessor in favor of Seller, its successors and assigns, Seller represents and warrants that:       (a) The Ground Lease or a memorandum regarding such Ground Lease has been duly          recorded or submitted for recordation in a form that is acceptable for recording in the          applicable jurisdiction. The Ground Lease or an estoppel or other agreement received          from the ground lessor permits the interest of the lessee to be encumbered by the          related Mortgage and does not restrict the use of the related Mortgaged Property by          such lessee, its successors or assigns in a manner that would materially adversely          affect the security provided by the related Mortgage;       (b) The lessor under such Ground Lease has agreed in a writing included in the related          Collateral Interest File (or in such Ground Lease) that the Ground Lease may not be          amended or modified, or canceled or terminated by agreement of lessor and lessee,          without the prior written consent of the lender (except termination or cancellation if          (i) notice of a default under the Ground Lease is provided to lender and (ii) such          default is curable by lender as provided in the Ground Lease but remains uncured          beyond the applicable cure period), and no such consent has been granted by the          Seller since the origination of the Mortgage Loan except as reflected in any written          instruments which are included in the related Collateral Interest File;       (c) The Ground Lease has an original term (or an original term plus one or more optional          renewal terms, which, under all circumstances, may be exercised, and will be          enforceable, by either Borrower or the mortgagee) that extends not less than 20 years          beyond the stated maturity of the related Mortgage Loan, or 10 years past the stated          maturity if such Mortgage Loan fully amortizes by the stated maturity (or with          respect to a Mortgage Loan that accrues on an actual 360 basis, substantially          amortizes);       (d) The Ground Lease either (i) is not subject to any liens or encumbrances superior to, or          of equal priority with, the Mortgage, except for the related fee interest of the ground          lessor and the Permitted Encumbrances, or (ii) is subject to a subordination,          non-disturbance and attornment agreement to which the mortgagee on the lessor’s fee          interest in the Mortgaged Property is subject;       (e) The Ground Lease does not place commercially unreasonable restrictions on the          identity of the Mortgagee and the Ground Lease is assignable to the holder of the          Mortgage Loan and its successors and assigns without the consent of the lessor          thereunder, and in the event it is so assigned, it is further assignable by the holder of          the Mortgage Loan and its successors and assigns without the consent of the lessor;                                   Exhibit B-12 24552556.6.BUSINESS 

 

      (f) The Seller has not received any written notice of material default under or notice of          termination of such Ground Lease. To the Seller’s knowledge, there is no material          default under such Ground Lease and no condition that, but for the passage of time or          giving of notice, would result in a material default under the terms of such Ground          Lease and to the Seller’s knowledge, such Ground Lease is in full force and effect as          of the Closing Date;       (g) The Ground Lease or ancillary agreement between the lessor and the lessee requires          the lessor to give to the lender written notice of any default, and provides that no          notice of default or termination is effective against the lender unless such notice is          given to the lender;       (h) A lender is permitted a reasonable opportunity (including, where necessary, sufficient          time to gain possession of the interest of the lessee under the Ground Lease through          legal proceedings) to cure any default under the Ground Lease which is curable after          the lender’s receipt of notice of any default before the lessor may terminate the          Ground Lease;       (i) The Ground Lease does not impose any restrictions on subletting that would be          viewed as commercially unreasonable by the Seller in connection with loans          originated for securitization;       (j) Under the terms of the Ground Lease, an estoppel or other agreement received from          the ground lessor and the related Mortgage (taken together), any related insurance          proceeds or the portion of the condemnation award allocable to the ground lessee’s          interest (other than (i) de minimis amounts for minor casualties or (ii) in respect of a          total or substantially total loss or taking as addressed in clause (k) below) will be          applied either to the repair or to restoration of all or part of the related Mortgaged          Property with (so long as such proceeds are in excess of the threshold amount          specified in the related Loan Documents) the lender or a trustee appointed by it          having the right to hold and disburse such proceeds as repair or restoration          progresses, or to the payment of the outstanding principal balance of the Mortgage          Loan, together with any accrued interest;       (k) In the case of a total or substantially total taking or loss, under the terms of the          Ground Lease, an estoppel or other agreement and the related Mortgage (taken          together), any related insurance proceeds, or portion of the condemnation award          allocable to ground lessee’s interest in respect of a total or substantially total loss or          taking of the related Mortgaged Property to the extent not applied to restoration, will          be applied first to the payment of the outstanding principal balance of the Mortgage          Loan, together with any accrued interest; and       (l) Provided that the lender cures any defaults which are susceptible to being cured, the          ground lessor has agreed to enter into a new lease with lender upon termination of the          Ground Lease for any reason, including rejection of the Ground Lease in a          bankruptcy proceeding.                                    Exhibit B-13 24552556.6.BUSINESS 

 

(35)  Servicing. The servicing and collection practices used by the Seller with respect to the    Mortgage Loan have been, in all material respects, legal and have met customary industry    standards for servicing of similar commercial loans. (36)  Origination and Underwriting. The origination practices of the Seller (or the related    originator if the Seller was not the originator) with respect to each Mortgage Loan have been,    in all material respects, legal and as of the date of its origination, such Mortgage Loan and    the origination thereof complied in all material respects with, or was exempt from, all    requirements of federal, state or local law relating to the origination of such Mortgage Loan;    provided that such representation and warranty does not address or otherwise cover any    matters with respect to federal, state or local law otherwise covered in this Exhibit B. (37)  No Material Default; Payment Record. No Mortgage Loan has been more than 30 days    delinquent, without giving effect to any grace or cure period, in making required payments    since origination, and as of the date hereof, no Mortgage Loan is more than 30 days    delinquent (beyond any applicable grace or cure period) in making required payments as of    the Closing Date. To the Seller’s knowledge, there is (a) no material default, breach,    violation or event of acceleration existing under the related Mortgage Loan or (b) no event    (other than payments due but not yet delinquent) which, with the passage of time or with    notice and the expiration of any grace or cure period, would constitute a material default,    breach, violation or event of acceleration, which default, breach, violation or event of    acceleration, in the case of either clause (a) or clause (b), materially and adversely affects the    value of the Mortgage Loan or the value, use or operation of the related Mortgaged Property,    provided, however, that this representation and warranty does not cover any default, breach,    violation or event of acceleration that specifically pertains to or arises out of an exception    scheduled to any other representation and warranty made by the Seller in Schedule 1(a) to    this Exhibit B. No person other than the holder of such Mortgage Loan (subject to the related    Participation Agreement) may declare any event of default under the Mortgage Loan or    accelerate any indebtedness under the Loan Documents. (38)  Bankruptcy. As of the date of origination of the related Mortgage Loan and to the    Seller’s knowledge as of the Cut-off Date, no Borrower, guarantor or tenant occupying a    single-tenant property is a debtor in state or federal bankruptcy, insolvency or similar    proceeding. (39)  Organization of Borrower. With respect to each Mortgage Loan, in reliance on certified    copies of the organizational documents of the Borrower delivered by the Borrower in    connection with the origination of such Mortgage Loan, the Borrower is an entity organized    under the laws of a state of the United States of America, the District of Columbia or the    Commonwealth of Puerto Rico. Except with respect to any Crossed Mortgage Loan, no    Mortgage Loan has a Borrower that is an Affiliate of another Borrower. (An “Affiliate” for    purposes of this paragraph (39) means, a Borrower that is under direct or indirect common    ownership and control with another Borrower.) (40)  Environmental Conditions. A Phase I environmental site assessment (or update of a    previous Phase I and or Phase II site assessment) and, with respect to certain Mortgage    Loans, a Phase II environmental site assessment (collectively, an “ESA”) meeting ASTM    requirements was conducted by a reputable environmental consultant in connection with such                                   Exhibit B-14 24552556.6.BUSINESS 

 

   Mortgage Loan within 12 months prior to its origination date (or an update of a previous    ESA was prepared), and such ESA either (i) did not identify the existence of recognized    environmental conditions (as such term is defined in ASTM E1527-05 or its successor,    hereinafter “Environmental Condition”) at the related Mortgaged Property or the need for    further investigation with respect to any Environmental Condition that was identified, or    (ii) if the existence of an Environmental Condition or need for further investigation was    indicated in any such ESA, then at least one of the following statements is true: (A) an    amount reasonably estimated by a reputable environmental consultant to be sufficient to    cover the estimated cost to cure any material noncompliance with applicable environmental    laws or the Environmental Condition has been escrowed by the related Borrower and is held    or controlled by the related lender; (B) if the only Environmental Condition relates to the    presence of asbestos-containing materials, radon in indoor air, lead based paint or lead in    drinking water, and the only recommended action in the ESA is the institution of such a plan,    an operations or maintenance plan has been required to be instituted by the related Borrower    that can reasonably be expected to mitigate the identified risk; (C) the Environmental    Condition identified in the related environmental report was remediated or abated in all    material respects prior to the date hereof, and, if and as appropriate, a no further action or    closure letter was obtained from the applicable governmental regulatory authority (or the    Environmental Condition affecting the related Mortgaged Property was otherwise listed by    such governmental authority as “closed” or a reputable environmental consultant has    concluded that no further action is required); (D) a secured creditor environmental policy or a    pollution legal liability insurance policy that covers liability for the Environmental Condition    was obtained from an insurer rated no less than A- (or the equivalent) by Moody’s, S&P    and/or Fitch; (E) a party not related to the Borrower was identified as the responsible party    for such Environmental Condition and such responsible party has financial resources    reasonably estimated to be adequate to address the situation; or (F) a party related to the    Borrower having financial resources reasonably estimated to be adequate to address the    situation is required to take action. To Seller’s knowledge, except as set forth in the ESA,    there is no Environmental Condition (as such term is defined in ASTM E1527-05 or its    successor) at the related Mortgaged Property. (41)  Appraisal. The Servicing File contains an appraisal of the related Mortgaged Property    with an appraisal date within 6 months of the Mortgage Loan origination date, and within 12    months of the Closing Date. The appraisal is signed by an appraiser who is either a Member    of the Appraisal Institute (“MAI”) and/or has been licensed and certified to prepare    appraisals in the state where the Mortgaged Property is located. Each appraiser has    represented in such appraisal or in a supplemental letter that the appraisal satisfies the    requirements of the “Uniform Standards of Professional Appraisal Practice” as adopted by    the Appraisal Standards Board of the Appraisal Foundation and has certified that such    appraiser had no interest, direct or indirect, in the Mortgaged Property or the Borrower or in    any loan made on the security thereof, and its compensation is not affected by the approval or    disapproval of the Mortgage Loan. The appraisal (or a separate letter) contains a statement    by the appraiser to the effect that the appraisal guidelines of Title XI of the Financial    Institution Reform, Recovery and Enforcement Act of 1989 were followed in preparing the    appraisal.                                    Exhibit B-15 24552556.6.BUSINESS 

 

(42)  Cross-Collateralization. No Mortgage Loan is cross-collateralized or cross-defaulted    with any mortgage loan that is not held by the Issuer. (43)  Advance of Funds by the Seller. After origination, no advance of funds has been made    by Seller to the related Borrower other than in accordance with the Loan Documents, and, to    Seller’s knowledge, no funds have been received from any person other than the related    Borrower or an affiliate for, or on account of, payments due on the Mortgage Loan (other    than as contemplated by the Loan Documents, such as, by way of example and not in    limitation of the foregoing, amounts paid by the tenant(s) into a lender-controlled lockbox if    required or contemplated under the related lease or Loan Documents). Neither Seller nor any    affiliate thereof has any obligation to make any capital contribution to any Borrower under a    Mortgage Loan, other than contributions made on or prior to the date hereof. (44)  Compliance with Anti-Money Laundering Laws. Seller has complied in all material    respects with all applicable anti-money laundering laws and regulations, including without    limitation the USA Patriot Act of 2001 with respect to the origination of the Mortgage Loan,    the failure to comply with which would have a material adverse effect on the Mortgage Loan. C.    Representations and Warranties Concerning Mezzanine Loans. With respect to each Mezzanine Loan: (1) Whole Loan. Each Mezzanine Loan is a whole loan and not a participation interest in a loan. (2) Loan Document Status. Each related mezzanine note, pledge agreement, guaranty and any    other agreement executed by or on behalf of the related mezzanine Borrower, guarantor or    other obligor in connection with such Mezzanine Loan is the legal, valid and binding    obligation of the related mezzanine Borrower, guarantor or other obligor (subject to any non-    recourse provisions contained in any of the foregoing agreements and any applicable state    anti-deficiency, one action, or market value limit deficiency legislation), as applicable, and is    enforceable in accordance with its terms, except the Standard Qualifications.     Except as set forth in the immediately preceding sentences, there is no valid offset, defense,    counterclaim or right of rescission available to the related mezzanine Borrower with respect    to any of the related note or other Mezzanine Loan documents, including, without limitation,    any such valid offset, defense, counterclaim or right based on intentional fraud by Seller in    connection with the origination of the Mezzanine Loan, that would deny the mezzanine    lender the principal benefits intended to be provided by the note or other Mezzanine Loan    documents. (3) Pledged Equity. The Mezzanine Loan is secured by a pledge of 100% of the direct or    indirect equity interests the entity or entities that own the related Mortgaged Property or    Mortgaged Properties. (4) Pledge Provisions. The Mezzanine Loan documents for each Mezzanine Loan contain    provisions that render the rights and remedies of the holder thereof adequate for the practical    realization against the pledged equity interests of the principal benefits of the security    intended to be provided thereby, including realization by UCC foreclosure subject to the    limitations set forth in the Standard Qualifications.                                   Exhibit B-16 24552556.6.BUSINESS 

 

(5) Loan Document Status; Waivers and Modifications. Since origination and except by written    instruments set forth in the related Collateral Interest File or as otherwise provided in the    related Mezzanine Loan documents (a) the material terms of the related Mezzanine Loan    documents have not been  waived, impaired, modified, altered, satisfied, canceled,    subordinated or rescinded in any respect that could be reasonably expected to have a material    adverse effect on such Mezzanine Loan; (b) no pledged equity has been released from the    lien of the related pledge agreement in any manner which materially interferes with the    security intended to be provided by such pledge agreement; and (c) neither the related    mezzanine Borrower nor the related guarantor has been released from its material obligations    under the Mezzanine Loan. With respect to each Mezzanine Loan, except as contained in a    written document included in the Collateral Interest File, there have been no modifications,    amendments or waivers, that could be reasonably expected to have a material adverse effect    on such Mezzanine Loan consented to by Seller on or after the Cut-off Date. (6) Lien; Valid Assignment. Subject to the Standard Qualifications, each assignment of    Mezzanine Loan and agreements executed in connection therewith to the Issuer constitutes a    legal, valid and binding assignment to the Issuer. Each Mezzanine Loan is freely assignable    without the consent of the related Borrower. The pledge of the collateral for the Mezzanine    Loan creates a legal, valid and enforceable first priority security interest in such collateral,    except as the enforcement thereof may be limited by the Standard Qualifications.    Notwithstanding anything herein to the contrary, no representation is made as to the    perfection of any security interest in personal property to the extent that possession or control    of such items or actions other than the filing of UCC financing statements is required in order    to effect such perfection. (7) UCC 9 Policies. If the Seller’s security interest in the Mezzanine Loan is covered by a UCC    9 insurance policy, with respect to the “UCC 9” policy relating to the Mezzanine Loan: (i)    such policy is assignable by the Seller to the Issuer, (ii) such policy is in full force and effect,    (iii) all premiums thereon have been paid, (iv) no claims have been made by or on behalf of    the Seller thereunder, and (v) no claims have been paid thereunder. (8) Cross-Defaults. An event of default under the related Mortgage Loan will constitute an event    of default with respect to the related Mezzanine Loan. (9) Payment Procedure. If a cash management agreement is in place with respect to the    Mortgage Loan and Mezzanine Loan, except following the occurrence and during the    occurrence of a Mortgage Loan event of default, any funds remaining in the related lockbox    account for the Mortgage Loan after payment of all amounts due under the Loan Documents    are required to be distributed to the holder of the Mezzanine Loan and distributed by the    holder or the servicer of the Mortgage Loan, to the holder of the Mezzanine Loan in    accordance with the Mezzanine Loan documents. (10)  Insurance Proceeds. The Mezzanine Loan documents require that all insurance policies    procured by the Mortgage Loan Borrower with respect to the property under the related Loan    Documents name the mezzanine lender, the related mezzanine Borrower and their respective    successors and assigns as the insured or additional insured, as their respective interests may    appear.                                   Exhibit B-17 24552556.6.BUSINESS 

 

(11)  Actions Concerning Mezzanine Loan. To the Seller’s knowledge, based on judgment    searches of the mezzanine Borrowers and guarantors, on and as of the date of origination and    as of the Cut-off Date, there was no pending or filed action, suit or proceeding, involving any    mezzanine Borrower an adverse outcome of which would reasonably be expected to    materially and adversely affect (a) the validity or enforceability of the Mezzanine Loan,    (b) such mezzanine Borrower’s ability to perform under the Mezzanine Loan, (c) such    guarantor’s ability to perform under the related guaranty or (d) the principal benefit of the    security intended to be provided by the Mezzanine Loan documents. (12)  Escrow Deposits. All escrow deposits and payments required to be escrowed with lender    pursuant to each Mezzanine Loan are in the possession, or under the control, of the Seller or    its servicer, and there are no deficiencies (subject to any applicable grace or cure periods) in    connection therewith, and all such escrows and deposits (or the right thereto) that are    required to be escrowed with lender under the related Mezzanine Loan documents are being    conveyed by the Seller to the Issuer or its servicer. (13)  No Holdbacks. The Stated Principal Balance as of the Cut-off Date of the Mezzanine    Loan attached as Exhibit A to this Agreement has been fully disbursed as of the Cut-off Date    and there is no requirement for future advances thereunder except in those cases where the    full amount of the Mezzanine Loan has been disbursed but a portion thereof is being held in    escrow or reserve accounts pending the satisfaction of certain conditions relating to leasing,    repairs or other matters with respect to the related Mortgaged Property, the Borrower or other    considerations determined by Seller to merit such holdback. (14)  No Contingent Interest or Equity Participation. No Mezzanine Loan has a shared    appreciation feature, any other contingent interest feature or a negative amortization feature    or an equity participation by Seller. (15)  Compliance with Usury Laws. The Interest Rate (exclusive of any default interest, late    charges, yield maintenance charges, exit fees, or prepayment premiums) of such Mezzanine    Loan complied as of the date of origination with, or was exempt from, applicable state or    federal laws, regulations and other requirements pertaining to usury. (16)  Single-Purpose Entity. Each Mezzanine Loan requires the mezzanine Borrower to be a    Single-Purpose Entity for at least as long as the Mezzanine Loan is outstanding. Both the    Mezzanine Loan documents and the organizational documents of the Borrower with respect    to each Mezzanine Loan with a Stated Principal Balance as of the Cut-off Date in excess of    $5 million provide that the Borrower is a Single-Purpose Entity, and each Mezzanine Loan    with a Stated Principal Balance as of the Cut-off Date of $20 million or more has a counsel’s    opinion regarding non-consolidation of the Borrower. For this purpose, a “Single-Purpose    Entity” shall mean an entity, other than an individual, whose organizational documents (or if    the Mezzanine Loan has a Stated Principal Balance as of the Cut-off Date equal to $5 million    or less, its organizational documents or the related Mezzanine Loan documents) provide    substantially to the effect that it was formed or organized solely for the purpose of owning    the equity collateral securing the Mezzanine Loans and prohibit it from engaging in any    business unrelated to its ownership of the equity collateral, and whose organizational    documents further provide, or which entity represented in the related Mezzanine Loan    documents, substantially to the effect that it does not have any assets other than those related                                   Exhibit B-18 24552556.6.BUSINESS 

 

   to the equity collateral securing the Mezzanine Loans, or any indebtedness other than as    permitted by the related Mezzanine Loan documents, that it has its own books and records    and accounts separate and apart from those of any other person, and that it holds itself out as    a legal entity, separate and apart from any other person or entity. (17)  Floating Interest Rates. Each Mezzanine Loan bears interest at a floating rate of interest    that is based on LIBOR plus a margin (which interest rate may be subject to a minimum or    “floor” rate). (18)  Servicing. The servicing and collection practices used by the Seller with respect to the    Mezzanine Loan have been, in all material respects, legal and have met customary industry    standards for servicing of similar commercial loans. (19)  Origination and Underwriting. The origination practices of the Seller (or the related    originator if the Seller was not the originator) with respect to each Mezzanine Loan have    been, in all material respects, legal and as of the date of its origination, such Mezzanine Loan    and the origination thereof complied in all material respects with, or was exempt from, all    requirements of federal, state or local law relating to the origination of such Mezzanine Loan;    provided that such representation and warranty does not address or otherwise cover any    matters with respect to federal, state or local law otherwise covered in this Annex C. (20)  No Material Default; Payment Record. No Mezzanine Loan has been more than 30 days    delinquent, without giving effect to any grace or cure period, in making required payments    since origination, and as of the date hereof, no Mezzanine Loan is more than 30 days    delinquent (beyond any applicable grace or cure period) in making required payments as of    the Closing Date. To the Seller’s knowledge, there is (a) no material default, breach,    violation or event of acceleration existing under the related Mezzanine Loan or (b) no event    (other than payments due but not yet delinquent) which, with the passage of time or with    notice and the expiration of any grace or cure period, would constitute a material default,    breach, violation or event of acceleration, which default, breach, violation or event of    acceleration, in the case of either clause (a) or clause (b), materially and adversely affects the    value of the Mezzanine Loan, provided, however, that this representation and warranty does    not cover any default, breach, violation or event of acceleration that specifically pertains to or    arises out of an exception scheduled to any other representation and warranty made by the    Seller in Schedule 1(a) to this Exhibit B. No person other than the holder of such Mezzanine    Loan (subject to the related Participation Agreement) may declare any event of default under    the Mezzanine Loan or accelerate any indebtedness under the Mezzanine Loan documents. (21)  Bankruptcy. As of the date of origination of the related Mezzanine Loan and to the    Seller’s knowledge as of the Cut-off Date, no mezzanine Borrower is a debtor in state or    federal bankruptcy, insolvency or similar proceeding. (22)  Organization of Mezzanine Borrower. With respect to each Mezzanine Loan, in reliance    on certified copies of the organizational documents of the Borrower delivered by the    Borrower in connection with the origination of such Mezzanine Loan, the Borrower is an    entity organized under the laws of a state of the United States of America, the District of    Columbia or the Commonwealth of Puerto Rico.                                    Exhibit B-19 24552556.6.BUSINESS 

 

(23)  Advance of Funds by the Seller. After origination, no advance of funds has been made       by Seller to the related Borrower other than in accordance with the Mezzanine Loan       documents, and, to Seller’s knowledge, no funds have been received from any person       other than the related mezzanine Borrower or an affiliate for, or on account of, payments       due on the Mezzanine Loan (other than as contemplated by the Mezzanine Loan       documents, such as, by way of example and not in limitation of the foregoing, amounts       paid by the tenant(s) into a lender-controlled lockbox if required or contemplated under       the related lease or Loan Documents). Neither Seller nor any affiliate thereof has any       obligation to make any capital contribution to any Borrower under a Mezzanine Loan,       other than contributions made on or prior to the date hereof. (24)  Compliance with Anti-Money Laundering Laws. Seller has complied in all material    respects with all applicable anti-money laundering laws and regulations, including without    limitation the USA Patriot Act of 2001 with respect to the origination of the Mezzanine    Loan, the failure to comply with which would have a material adverse effect on the    Mezzanine Loan. D.    Representations and Warranties Concerning Pari Passu Participations. With respect to each Pari Passu Participation (the “CLO Participation”): (1) A custodian (the “Participation Custodian”) on behalf of the holder of the CLO Participation    and each holder (each, a “Third Party Participant”) of any related participation (the “Other    Participation Interests”) is the record mortgagee of the related Mortgage Loan and, if    applicable, Mezzanine Loan, pursuant to a custodial agreement and a Participation    Agreement that is legal, valid and enforceable as between its parties, and which provides that    the Seller as holder of the CLO Participation has full power, authority and discretion to    appoint the Servicer to service the Mortgage Loan and, if applicable, Mezzanine Loan,    subject to the consent or approval rights of the Third Party Participants; (2) The holder of each Other Participation Interest is required to pay its pro rata share of any    expenses, costs and fees associated with servicing and enforcing rights and remedies under    the related Mortgage Loan and, if applicable, Mezzanine Loan, upon request therefor by the    holder of the CLO Participation; (3) Each Participation Agreement is effective to convey the CLO Participation to the Seller and    the related Other Participation Interests to the related Third Party Participants and is not    intended to be or effective as a loan or other financing secured by the Mortgage Loan and, if    applicable, Mezzanine Loan. The holder of the CLO Participation owes no fiduciary duty or    obligation to any Third Party Participant pursuant to the Participation Agreement; (4) All amounts due and owing to any Third Party Participant pursuant to each Participation    Agreement have been duly and timely paid. There is no default by the holder of the CLO    Participation, or to the Seller’s knowledge, by any Third Party Participant under any    Participation Agreement; (5) To the Seller’s knowledge, no Third Party Participant is a debtor in any outstanding    proceeding pursuant to the federal bankruptcy code;                                    Exhibit B-20 24552556.6.BUSINESS 

 

(6) The Seller has not received written notice of any outstanding liabilities, obligations, losses,    damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind    for which the holder of the CLO Participation is or may become obligated; (7) The role, rights and responsibilities of the holder of the CLO Participation are assignable by    the Seller without consent or approval other than those that have been obtained. (8) The terms of the Participation Agreement do not require or obligate the holder of the CLO    Participation or its successor or assigns to repurchase any Other Participation Interest under    any circumstances; (9) The Seller, in selling any Other Participation Interest to a Third Party Participant made no    misrepresentation, fraud or omission of information necessary for such Third Party    Participant to make an informed decision to purchase the Other Participation Interest; and (10)  Either (A) the CLO Participation is treated as a real estate asset for purposes of    Section 856(c) of the Code, and the interest payable pursuant to such Participation is treated    as interest on an obligation secured by a mortgage on real property for purposes of    Section 856(c) of the Code, or (B) the CLO Participation qualifies as a security that would    not otherwise cause GPMT to fail to qualify as a REIT under the Code (including after the    sale, transfer and assignment to the Issuer of such Participation). For purposes of these representations and warranties, the phrases “the Seller’s knowledge” or “the Seller’s belief” and other words and phrases of like import shall mean, except where otherwise expressly set forth herein, the actual state of knowledge or belief of the Seller, its officers and employees directly responsible for the underwriting, origination, servicing or sale of the Mortgage Loans regarding the matters expressly set forth herein.                                    Exhibit B-21 24552556.6.BUSINESS 

 

                               Schedule 1(a) to Exhibit B                 EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES                  Representation numbers referred to below relate to the corresponding Collateral     Interest representations and warranties set forth in this Schedule 1(a) to Exhibit B.     Rep. No. on                      Collateral Interest             Description of Exception     Exhibit B      (B)(4)             Perkins Rowe       As contemplated by the related Loan Documents,  (Loan Document                           the Parrish of East Baton Rouge and the City of  Status – Waivers                         Baton Rouge exercised a taking of a small strip of and Modifications)                        the Mortgaged Property. As a result, the related                                           borrower released the small portion of the                                           Mortgaged Property being taken from the lien of the                                           related Mortgage Loan. The proceeds of the                                           condemnation sale (totaling $381,864) were                                           deposited into the cash management account (as to                                           $300,000) and deposited into the tenant                                           improvements/leasing reserve (as to $81,864).      (B)(4)             Lincoln Place      The related Loan Documents are currently in the  (Loan Document    Patewood Corporate Park process of being amended. It is expected that such  Status – Waivers     Tustin Commons      amendments will be executed and effective prior to and Modifications)      Hotel Phillips    the Closing Date. No assurance can be given that                                           the currently contemplated amendments will be                                           executed and effective on or after the Closing Date.      (B)(5)           Shippan Landing     The full right to assign the related Mortgage Loan is    (Lien, Valid                           limited by the related Loan Documents, which    Assignment)                            provide that, except during continuance of a                                           Commercial Real Estate Loan Event of Default, any                                           portion of the related Mortgage Loan that constitutes                                           the unfunded Future TI/LC Advances cannot be                                           transferred to any person that has a net worth of less                                           than $35,000,000.00 (provided that this requirement                                           does not apply to any repurchase or warehouse                                           facility).                                      Schedule (1)(a)-1     24552556.6.BUSINESS 

 

  Rep. No. on                     Collateral Interest             Description of Exception    Exhibit B     (B)(5)            Sheraton Kauai     The full right to assign the related Mortgage Loan is   (Lien, Valid                           limited by the related Loan Documents, which   Assignment)                            provide that, except during continuance of a                                          Commercial Real Estate Loan Event of Default, the                                          lender may not sell, transfer or assign the Mortgage                                          Loan, or grant participations therein or issue                                          mortgage  pass-through certificates or other                                          securities to a short list of “Prohibited Transferees”                                          identified in the related Loan Documents.     (B)(5)           South City Plaza    The Mortgaged Property is encumbered by two   (Lien, Valid                           loans, both of which are, in part, included in the   Assignment)                            related Collateral Interest: a subordinate Mortgage                                          Loan, which is a legal, valid and enforceable second                                          lien on the related borrower’s fee or leasehold                                          interest in the related Mortgaged Property; and the                                          senior Mortgage Loan which constitutes a legal,                                          valid and enforceable first lien on the related                                          borrower’s fee or leasehold interest in the related                                          Mortgaged Property.     (B)(6)           South City Plaza    The subordinate Mortgage Loan constitutes a second (Permitted Liens;                        priority lien and is subordinate to the senior  Title Insurance)                        Mortgage Loan, which constitutes a first priority                                          lien.     (B)(7)             Lincoln Place     There is existing1 mezzanine debt secured directly  (Junior Liens)                          by interests in the related borrower as evidenced by                                          that certain mezzanine loan originated by the                                          underlying seller in the maximum principal amount                                          of up to $9,475,000. Such mezzanine loan is not                                          included in the Collateral Interest and will not be                                          acquired by the Issuer.      1 The related mezzanine loan cannot be funded until written consent is obtained from the City of Miami    Beach, Florida, as ground lessor, under the related Loan Documents. If the consent of the City of Miami    Beach, Florida, as ground lessor, is not obtained, the contemplated mezzanine loan may be restructured as    preferred equity. No assurances can be made that the mezzanine loan or a preferred equity investment    will be funded and effective before, on or after the Closing Date.                                    Schedule (1)(a)-2    24552556.6.BUSINESS 

 

  Rep. No. on                     Collateral Interest             Description of Exception    Exhibit B     (B)(7)           Continental Plaza   There is existing junior mezzanine debt secured  (Junior Liens)                          directly or indirectly by interests in the related                                          borrower as  evidenced by that certain junior                                          mezzanine loan originated by RCG LV Debt V                                          REIT, LP   in the original principal amount of                                          $11,500,000. Such junior mezzanine loan is not                                          included in the Collateral Interest and will not be                                          acquired by the Issuer.     (B)(7)           South City Plaza    The subordinate Mortgage Loan is a subordinate lien  (Junior Liens)                          secured by the same Mortgaged Property.     (B)(7)             Hotel Phillips    There is existing junior debt secured directly by  (Junior Liens)                          interests in the related borrower as evidenced by that                                          certain loan originated by Hotel Phillips VII Lender,                                          LLC and ALP KC, LLC in the maximum principal                                          amount of up to $5,476,690. There is also existing                                          unsecured junior debt made by the same lenders to                                          the master tenant in the maximum principal amount                                          of up to $3,050,000 and additional junior unsecured                                          debt made by the same lenders to the sole member                                          of the sole member of the related borrower in the                                          maximum   principal amount of up to $4,400,000.                                          Such junior unsecured debt and the junior loan is not                                          included in the Collateral Interest and will not be                                          acquired by the Issuer.     (B)(7)         Lahaina Cannery Mall  There is existing mezzanine debt secured directly by  (Junior Liens)      Continental Plaza   interests in the related borrower as evidenced by the                   Bank of America Tower I related mezzanine loan originated by the underlying                  Patewood Corporate Center seller which is included in the Collateral Interest.                    Sunset Industrial Park     (B)(8)           South City Plaza    The senior Mortgage Loan Assignment of Leases,  (Assignment of                          Rents and  Profits creates a valid first-priority Leases, Rents and                        collateral assignment of, or a valid first-priority lien     Profits)                             or security interest in, rents and certain rights under                                          the related lease or leases and the subordinate                                          Mortgage Loan Assignment of Leases, Rents and                                          Profits creates a valid second-priority collateral                                          assignment of, or a valid second-priority lien or                                          security interest in, rents and certain rights under the                                          related lease or leases.                                     Schedule (1)(a)-3    24552556.6.BUSINESS 

 

  Rep. No. on                     Collateral Interest             Description of Exception    Exhibit B     (B)(10)            Lincoln Place     The property condition assessments for the related  (Condition of        Perkins Rowe       Mortgaged Properties are dated more than twelve    Property)       Lahaina Cannery Mall  months prior to the Cut-Off Date.                      Continental Plaza                    Sunset Industrial Park                   Bank of America Tower I                  Patewood Corporate Center                      Tustin Commons                      South City Plaza                        Hotel Phillips                    Shops at Central Park                      Conejo Spectrum     (B)(13)        Sunset Industrial Park The sponsors of the related borrower disclosed civil    (Actions                              litigation in connection with breach of contract and   Concerning                             related claims against such sponsors with respect to Mortgage Loan)                           a commercial real estate investment, which is                                          unrelated to the Mortgaged Property.     (B)(13)        Shops at Central Park As of the origination date, borrower, as landlord,    (Actions                              was involved in a dispute with Applebee’s, as   Concerning                             tenant, over parking and co-tenancy obligations, and Mortgage Loan)                           as a result, as of the loan closing, the Applebee’s                                          tenant had not paid base rent since February 2016                                          (only paying additional rent). The action is styled                                          Shops Dunhill Ratel, LLC, as plaintiff, v. Apple                                          Texas Restaurants, Inc., as defendant (filed Texas                                          on August 29, 2016 in the District Court for Dallas                                          County, as Cause No. DC-16-10664).                                           The related Loan Documents provide that, unless the                                          borrower reaches a settlement with Applebee’s by                                          March 5, 2017, a cash sweep period will commence                                          on such date and terminate (so long as there is no                                          event of default or other cash sweep event) only                                          when the borrower has reached a settlement with                                          Applebee’s and has at least $117,000 on deposit in                                          the excess cash reserve.                                     Schedule (1)(a)-4    24552556.6.BUSINESS 

 

  Rep. No. on                     Collateral Interest             Description of Exception    Exhibit B     (B)(15)          Shippan Landing     The Mortgage Loan has not been fully funded and (No Holdbacks)       Continental Plaza   the related Loan Documents contemplate future                       Sheraton Kauai     funding of the Mortgage Loan subject to satisfaction                     Renaissance Dallas   of the conditions set forth in such Loan Documents.                    5250 Lankershim Plaza The holder of the future funding pari passu                      Tustin Commons      participation interest in either the Mortgage Loan or                      South City Plaza    the Combined Loan, which will not be included in                      111 West Monroe     the Asset Pool (unless otherwise acquired by the                    DoubleTree Boston NS  Issuer, in whole or in part, as described in the                      Conestoga Estates   Offering Memorandum), has the obligation to fund                   Northern Edge Portfolio such future advances.                        Lenox Park                      Conejo Spectrum     (B)(16)        Lahaina Cannery Mall  The related Loan Documents require insurance   (Insurance)                            proceeds in respect of a property loss to be applied                                          to the repair or restoration of the related Mortgaged                                          Property with respect to all property losses less than                                          $1,000,000. In the event that property loss to the                                          related Mortgaged Property is equal to or in excess                                          of $1,000,000; insurance proceeds in respect of such                                          property loss may be applied to the repair or                                          restoration of the related Mortgaged Property                                          provided that certain conditions in the related Loan                                          Documents have been satisfied.     (B)(16)          South City Plaza    The related Loan Documents require insurance   (Insurance)                            proceeds in respect of a property loss to be applied                                          to the repair or restoration of all or part of the related                                          Mortgaged Property, with respect to all property                                          losses in excess of approximately 5.9% of the then                                          outstanding principal amount of  the related                                          Mortgage Loan.     (B)(16)            Hotel Phillips    The related Loan  Documents provide that the   (Insurance)                            applicable Insurance Rating Requirements are at                                          least A-VIII from A.M. Best, at least A- by S&P                                          (and the equivalent for Moody’s, Fitch and DBRS)                                          or such other ratings approved by lender.                                     Schedule (1)(a)-5    24552556.6.BUSINESS 

 

Rep. No. on                   Collateral Interest             Description of Exception  Exhibit B   (B)(16)          Conejo Spectrum     The related Loan Documents provide that if the (Insurance)                            related borrower undertakes seismic retrofitting of                                        the  improvements on  the  related Mortgaged                                        Property, such that the PML, as determined by                                        lender in the event of an earthquake, would be                                        reduced to 20% or less, then earthquake insurance                                        will no longer be required.   (B)(24)        DoubleTree Boston NS  The  related Mortgaged Property is legal non- (Local Law                             conforming as to use due to its use as an indoor Compliance)                            water park resort. Under the applicable zoning                                        code, the use may continue unless the use or                                        structure is modified without authorization by the                                        relevant board of appeals. The related borrower                                        carries law and ordinance insurance with respect to                                        such Mortgaged Property.   (B)(26)            Lincoln Place     The related Loan Documents provide that the related  (Recourse                             borrower and guarantor are fully liable for actual Obligations)                           losses arising from material physical waste to the                                        related Mortgaged Property or any portion thereof                                        caused  by the  intentional acts or intentional                                        omissions of  the related borrower; provided,                                        however, the related borrower shall have no liability                                        for losses if sufficient excess cash flow is not                                        available to the related borrower from the related                                        Mortgaged Property to prevent such physical waste.                                         The related Loan Documents provide recourse for                                        certain specified environmental covenant and                                        representation breaches, as more particularly set                                        forth in the environmental indemnity agreement.   (B)(26)          Shippan Landing     The intentional material physical waste loss carve-  (Recourse                             out contains a caveat that the carve-out shall not Obligations)                           apply if such waste is due to insufficient revenue                                        being available from the Property.   (B)(26)          Continental Plaza   Seller qualifies clause (a)(iii) of this representation  (Recourse                             as follows: The Mortgage Loan documents provide Obligations)                           that the related borrower and guarantor are fully                                        liable for losses arising from material physical waste                                        to the Mortgaged Property caused by the intentional                                        acts or omissions of borrower, guarantor or any                                        affiliate of either of them.                                  Schedule (1)(a)-6  24552556.6.BUSINESS 

 

Rep. No. on                   Collateral Interest             Description of Exception  Exhibit B   (B)(26)           Sheraton Kauai     Seller qualifies clause (a)(iii) of this representation  (Recourse                             as follows: Obligations)                                        The related Loan Documents provide that the related                                        borrower and guarantor are fully liable for actual                                        losses arising from active, intentional, material                                        physical waste to the Mortgaged Property.   (B)(26)        Sunset Industrial Park Seller qualifies clause (a)(i) of this representation as  (Recourse                             follows: Obligations)                                        The related Loan Documents provide that the related                                        borrower and guarantor are fully liable for actual                                        losses  arising from   fraud  or  intentional                                        misrepresentation by borrower, guarantor, or any                                        affiliate of either of them, in connection with the                                        execution and the delivery of the related Loan                                        Documents, or any  certificate, report, financial                                        statement or other instrument or document furnished                                        to lender at the time of the closing of the Mortgage                                        Loan or during the term of the Mortgage Loan.                                         Seller qualifies clause (a)(ii) of this representation as                                        follows:                                        The related Loan Documents provide that the related                                        borrower and guarantor are fully liable for actual                                        losses arising from the intentional misapplication or                                        the misappropriation of insurance proceeds or                                        awards.                                         Seller qualifies clause (a)(iii) of this representation                                        as follows:                                        The related Loan Documents provide that the related                                        borrower and guarantor are fully liable for actual                                        losses arising from material physical waste to the                                        Mortgaged Property caused by the intentional acts or                                        omissions of borrower, guarantor or any affiliate of                                        either of them.                                   Schedule (1)(a)-7  24552556.6.BUSINESS 

 

 Rep. No. on                    Collateral Interest             Description of Exception   Exhibit B    (B)(26)        Shops at Central Park Seller qualifies this representation as follows: It is   (Recourse         Continental Plaza   recourse for losses in the event of fraud or  Obligations)                           intentional misrepresentation by the related                                         mortgagor or guarantor in connection with the                                         execution of the related Loan Documents or any                                         document furnished by mortgagor, guarantor or their                                         affiliates to Seller at the time of the closing or                                         during the term of the Collateral Interest.    (B)(27)          Shippan Landing     The partial release amount for the related Mortgaged   (Mortgage                             Property is equal to the greater of (x) the Partial   Releases)                             Release Net Proceeds for each Released Property,                                         and (y) the product of (1) the allocated loan amount                                         each Released Property times (2) one hundred                                         twenty percent (120%), together with the applicable                                         portion of the Prepayment Premium and Exit Fee                                         applicable thereto.    (B)(27)        Sunset Industrial Park The related Loan Documents permit the borrower to   (Mortgage                             release a portion of the property selected by   Releases)                             borrower and approved by Lender in  Lender’s                                         reasonable discretion totaling not more than 3.5                                         acres in connection with a sale to a third party that is                                         not an  affiliate of the borrower, subject to                                         satisfaction of certain conditions set forth in the                                         related Loan Documents, including prepayment of                                         the loan and the mezzanine loan (pro rata) in an                                         amount equal to the greater of (x) 50% of the                                         “Partial Release Net Proceeds” and (y) not less than                                         $10,890,000 per acre of the property so released.    (B)(28)           Sheraton Kauai     Under the terms of the related Loan Documents,   (Financial                            Mortgagor is required to deliver monthly and Reporting and                           quarterly (not annual) operating statements.  Rent Rolls)    (B)(28)         Renaissance Dallas   Under the terms of the related Loan Documents,   (Financial                            Mortgagor is required to deliver monthly (not Reporting and                           annual) operating statements.  Rent Rolls)    (B)(28)            Hotel Phillips    Under the terms of the related Mortgage Loan   (Financial                            documents, Mortgagor is only required to deliver Reporting and                           monthly rent rolls upon lender’s request.  Rent Rolls)                                   Schedule (1)(a)-8   24552556.6.BUSINESS 

 

  Rep. No. on                     Collateral Interest             Description of Exception    Exhibit B     (B)(28)        DoubleTree Boston NS  Under the terms of the related Loan Documents,    (Financial                            Mortgagor is only required to deliver monthly rent  Reporting and                           rolls upon lender’s request.   Rent Rolls)     (B)(28)          Staybridge Suites   Under the terms of the related Loan Documents,    (Financial                            Mortgagor is required to deliver monthly (not  Reporting and                           annual) operating statements.   Rent Rolls)     (B)(28)        Shops at Central Park Under the terms of the related Loan Documents,    (Financial                            Mortgagor is required to provide the owner of  Reporting and                           holder of the Mortgage with monthly (not quarterly)   Rent Rolls)                            and annual operating statements and monthly (not                                          quarterly or annual) rent rolls.     (B)(31)        Sunset Industrial Park Borrower is a “recycled” Single-Purpose Entity. (Single-Purpose                          Pursuant to the underlying “Guaranty of Recourse     Entity)                              Obligations”, the underlying guarantor guarantees                                          (1) the payment of any losses incurred by Lender                                          relating to any breach of any Single-Purpose Entity                                          representations or warranties (including as to any                                          recycled Single-Purpose Entity representations) that                                          does not result in a substantive consolidation of                                          either borrower with any other entity, and (2) the                                          repayment of the full debt in the event of any such                                          breach that results in a substantive consolidation.     (B)(31)            Lincoln Place     No  non-consolidation opinion was obtained at (Single-Purpose        Lenox Park        closing.     Entity)     (B)(33)        All Collateral Interests The interest rate can be based on an “Alternative (Floating Interest                       Index”, “Static LIBOR Rate” or “Prime Rate”     Rates)                               instead of LIBOR under certain circumstances.                                     Schedule (1)(a)-9    24552556.6.BUSINESS 

 

  Rep. No. on                     Collateral Interest             Description of Exception    Exhibit B     (B)(34)            Lincoln Place     The representation is qualified by the fact that a (Ground Leases)                          “Recognized Mortgagee” under the ground lease                                          means the holder of a “Recognized Mortgage”;                                          provided, however, that, except to the extent                                          permitted by Section 11.2(c) of the ground lease, a                                          Recognized Mortgagee may not be an affiliate of the                                          tenant thereunder (except if the tenant is an affiliate                                          of a Recognized Mortgagee that has caused the                                          ground lease to be assigned to such affiliate in lieu                                          of foreclosure of a Recognized Mortgage of such                                          Recognized Mortgagee.                                           The  ground lessor recognized TH Commercial                                          Mortgage  LLC,  a  Delaware  limited liability                                          company and an affiliate of GPMT, together with its                                          successors and/or assigns, as a  “Recognized                                          Mortgagee” and the mortgage as a “Recognized                                          Mortgage” per a ground lease estoppel.                                           The representation is also qualified by the fact that                                          the condemnation awards shall be paid first to the                                          cost of restoration, second to ground lessor for                                          payment of any amounts due and payable under the                                          ground  lease which are in default other than                                          percentage rent, third to recognized mortgagee for                                          any amounts due and payable under its recognized                                          mortgage which are in default, fourth to ground                                          lessor for any accrued, but unpaid, percentage rent,                                          fifth to recognized mortgagee to the extent required                                          by recognized mortgagee as a result of the less than                                          substantially all taking, and sixth pursuant to Section                                          9.1(b)(1) of the ground lease. See exception to rep                                          34(k) below for casualty proceeds.                                           The representation is also qualified by the fact that                                          no mortgagee (recognized or otherwise) shall have                                          the right to apply any insurance proceeds paid in                                          connection with any casualty toward payment of its                                          loan to the extent the ground lease requires that the                                          ground lessee effect a “Casualty Restoration” with                                          such proceeds.                                     Schedule (1)(a)-10    24552556.6.BUSINESS 

 

   Rep. No. on                      Collateral Interest             Description of Exception     Exhibit B      (B)(39)          Conejo Spectrum     The related borrowers under each Mortgage Loan  (Organization of     Tustin Commons      are affiliates of or related to one another.     the related     borrower)      (B)(39)            CGI KODO          The related borrowers under each Mortgage Loan  (Organization of     CGI Villa Carlotta  are affiliates of or related to one another.     the related     borrower)      (B)(40)            Lincoln Place     The environmental reports for the related Mortgaged   (Environmental       Perkins Rowe       Properties are dated more than twelve months prior    Conditions)      Lahaina Cannery Mall  to the Cut-Off Date.                       Continental Plaza                     Sunset Industrial Park                    Bank of America Tower I                   Patewood Corporate Center                       Tustin Commons                       South City Plaza                         Hotel Phillips                     Shops at Central Park                       Conejo Spectrum      (B)(43)          Tustin Commons      The Mortgaged Properties are owned by the same  (Cross Collateral-   Conejo Spectrum     sponsor group, however, the related loans are not      ization)                             cross-collateralized or cross-defaulted with each                                           other.      (B)(43)            CGI KODO          The Mortgaged Properties are owned by the same  (Cross Collateral-   CGI Villa Carlotta  sponsor group, however, the related loans are not      ization)                             cross-collateralized or cross-defaulted with each                                           other.                         Lincoln Place     The related Loan Documents are currently in the      (C)(4)        Patewood Corporate Park process of being amended. It is expected that such  (Loan Document       Tustin Commons      amendments will be executed and effective prior to  Status – Waivers       Hotel Phillips    the Closing Date. No assurance can be given that and Modifications)                        the currently contemplated amendments will be                                           executed and effective on or after the Closing Date.                                      Schedule (1)(a)-11     24552556.6.BUSINESS 

 

Rep. No. on                   Collateral Interest             Description of Exception  Exhibit B                  Lahaina Cannery Mall   The related Mezzanine Loan is not a first priority   (C)(6)           Continental Plaza   mortgage lien but rather a mezzanine loan, which is (Lien, Valid    Bank of America Tower I subordinate to the related first priority Mortgage Assignment)    Patewood Corporate Center Loan.                  Sunset Industrial Park                   Bank of America Tower I The full right to assign the related Mezzanine Loan   (C)(6)                               is limited by the Mezzanine Loan documents, which (Lien, Valid                           provide that, subject to the terms therein, no direct Assignment)                            ownership in the Mezzanine Loan may be held by                                        any Person listed on the “Do Not Sell List”, as                                        defined in the Mezzanine Loan Documents.                    Continental Plaza   The full right to assign the related Mezzanine Loan   (C)(6)                               is limited by the Intercreditor Agreement, which (Lien, Valid                           provides that the related Mezzanine Loan lender Assignment)                            shall not be permitted to transfer all or any portion                                        of its interest in the Mezzanine Loan unless the                                        transferee is the related Mortgage Loan lender or an                                        affiliate of the Mortgage Loan lender.                  Lahaina Cannery Mall  Any funds remaining after payment of all amounts   (C)(9)           Continental Plaza   due under the related Loan Documents during a  (Payment        Sunset Industrial Park “Trigger Period” (which include the payment to  Procedure)     Bank of America Tower I mezzanine lender amounts due under the Mezzanine                Patewood Corporate Center Loan) are held by the holder or servicer of the                                        Mortgage Loan in a reserve account as collateral for                                        the Mortgage Loan.                    Continental Plaza   Due to the existence of the Continental Junior Mezz   (C)(9)                               Loan, only a portion of the funds remaining in the  (Payment                              related lockbox account for the Mortgage Loan after  Procedure)                            payment of all amounts due under the Mortgage                                        Loan are required to be distributed to the holder of                                        the Mezzanine Loan.                 Bank of America Tower I The Mezzanine Loan documents do not require that   (C)(10)                              all insurance policies procured by the Mortgage  (Insurance                            Loan borrower with respect to the property under  Proceeds)                             the related Loan Documents name the mezzanine                                        borrower as an additional insured.                                   Schedule (1)(a)-12  24552556.6.BUSINESS 

 

  Rep. No. on                     Collateral Interest             Description of Exception    Exhibit B     (C)(13)        Lahaina Cannery Mall  The Mezzanine Loan has not been fully funded and (No Holdbacks)       Continental Plaza   the related Loan Documents contemplate future                   Bank of America Tower I funding of the  Mezzanine  Loan  subject to                  Patewood Corporate Center satisfaction of the conditions set forth in such Loan                                          Documents. The holder of the future funding pari                                          passu participation interest in the Combined Loan,                                          which will not be included in the Asset Pool (unless                                          otherwise acquired by the Issuer, in whole or in part,                                          as described in the Offering Memorandum), has the                                          obligation to fund such future advances.     (C)(16)        Sunset Industrial Park Each Borrower entity is a “recycled” Single-Purpose (Single-Purpose                          Entity.  Pursuant to the underlying “Guaranty of     Entity)                              Recourse Obligations”, the underlying guarantor                                          guarantees (1) the payment of any losses incurred by                                          Lender relating to any breach of any Single-Purpose                                          Entity representations or warranties (including as to                                          any recycled Single-Purpose Entity representations)                                          that does not result in a substantive consolidation of                                          either borrower with any other entity, and (2) the                                          repayment of the full debt in the event of any such                                          breach that results in a substantive consolidation.                                     Schedule (1)(a)-13    24552556.6.BUSINESS 

 

                           Schedule 1(b) to Exhibit B                              Existing Mezzanine Debt  Collateral Interests with Existing Mezzanine Debt included in the Asset Pool:  Lahaina Cannery Mall  Continental Plaza  Bank of America Tower I  Patewood Corporate Center  Sunset Industrial Park   Collateral Interests with Existing Mezzanine Debt held outside of the Asset Pool:  Continental Plaza                                   Schedule 1(b)-1 24552556.6.BUSINESS 

 

                           Schedule 1(c) to Exhibit B                              Future Mezzanine Debt  Lincoln Place                                   Schedule 1(c)-1 24552556.6.BUSINESS 

 

                           Schedule 1(d) to Exhibit B                        Crossed Commercial Real Estate Loans                                      None.                                   Schedule 1(d)-1 24552556.6.BUSINESS

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