Document:

Employment Agreement

 Exhibit 10.46 
  
 EMPLOYMENT AGREEMENT 
 BETWEEN 
 JAMES T. RATNER 
 AND 
 FIRST STATES GROUP, L.P. 
  
 This Employment Agreement (the “Agreement”), dated as of December 29, 2003, between First States Group, L.P., a Delaware limited partnership
(the “Company”), and James T. Ratner (the “Executive”): 
  
 WHEREAS, American Financial Realty Trust, a Maryland real estate investment trust (the “REIT”), is a limited partner and the sole owner of the general partner of the Company; 
  
 WHEREAS, the Company wishes to employ the Executive in the capacities and on
the terms and conditions set out below, and the Executive has agreed to accept such employment, in the capacities and on the terms and conditions set forth below. 
  
 NOW, THEREFORE, the Company and the Executive, in consideration of the respective covenants set out below, hereby agree as
follows: 
  
 1. EMPLOYMENT. 
  
 (a) POSITIONS. Beginning on December 29, 2003 or such other date as the
Executive and the Chief Executive Officer shall mutually agree (the “Effective Date”), the Executive shall be employed by the Company as Senior Vice President and Chief Financial Officer. The Executive shall also be an officer of the REIT
as its Senior Vice President and Chief Financial Officer. 
  
 (b)
DUTIES. The Executive shall report to the Chief Executive Officer of the Company (the “Chief Executive Officer”) and his principal employment duties and responsibilities shall be those duties and responsibilities consistent with this
position as are assigned by the Chief Executive Officer or the Board of Trustees of the REIT (the “Board”). 
  
 (c) EXTENT OF SERVICES. Except for illnesses and vacation periods, the Executive shall devote all of his working time and attention and his best efforts
to the performance of his duties and responsibilities under this Agreement. Notwithstanding the foregoing, the Executive may (i) make any passive investment where he is not obligated or required to, and shall not in fact, devote any managerial
efforts, (ii) participate in charitable, academic or community activities, and in trade or professional organizations, or (iii) hold directorships in other companies consistent with the Company’s conflict of interest policies and corporate
governance guidelines as in effect from time to time. 
  
 2. TERM.
This Agreement shall be effective as of the Effective Date and shall continue in full force and effect thereafter for a term of three (3) years following the Effective Date (the “Initial Term”), and shall be automatically extended for an
additional one (1) year term at the end of the Initial Term, and an additional one (1) year term on each one-year anniversary of the 

 one (1) year term (the last day of each such term is referred to herein as a “Term Date”), unless either party
terminates this Agreement not later than sixty (60) days prior to a Term Date by providing written notice to the other party of such party’s intent not to renew, or it is sooner terminated pursuant to Section 7. For purposes of this Agreement,
“Term” shall mean the actual duration of the Executive’s employment hereunder, taking into account any extensions pursuant to this Section 2 or early termination of employment pursuant to Section 7. 
  
 3. BASE SALARY. The Company shall pay the Executive a base salary annually
(the “Base Salary”), which shall be payable in periodic installments according to the Company’s normal payroll practices. The initial Base Salary shall be $250,000. The Board or the Compensation and Human Resources Committee of the
REIT (the “Compensation Committee”) shall review the Base Salary at least once a year to determine whether the Base Salary should be increased effective January 1 of each year during the Term; provided, however, that on each January 1
during the Term, the Base Salary shall be increased by a minimum positive amount equal to the Base Salary in effect on January 1 of the prior year multiplied by the percentage increase in the Consumer Price Index for such year. The amount of the
increase shall be determined before March 31 of each year and shall be retroactive to January 1. The Base Salary, including any increases, shall not be decreased during the Term. For purposes of this Agreement, the term “Base Salary” shall
mean the amount established and adjusted from time to time pursuant to this Section 3. 
  
 4. INCENTIVE AWARDS. 
  
 (a)
ANNUAL INCENTIVE BONUS. The Executive shall be entitled to receive an annual cash incentive bonus for each fiscal year during the Term of this Agreement consistent with a bonus policy adopted by the Compensation Committee (the “Bonus
Policy”), which shall contain both individual and corporate goals established by the Compensation Committee. Beginning January 1, 2004, and for each year thereafter, if Executive or the Company, as the case may be, satisfies the performance
criteria contained in such Bonus Policy for a fiscal year for individual and corporate performance, respectively, Executive shall receive an annual incentive bonus, subject to approval by the Compensation Committee. The percentage of Base Salary for
the Executive for the performance bonus levels for 2004 shall be 35% for Threshold Level, 55% for Target Level, and 125% for Maximum Level, and after 2004 the percentages shall not be less than the 2004 percentages for each performance bonus level.
If Executive or the Company, as the case may be, fails to satisfy the performance criteria contained in such Bonus Policy for a fiscal year, the Executive may be eligible to receive an incentive bonus for such fiscal year, in such amount as is
recommended by the Chief Executive Officer and subject to approval by the Compensation Committee. Notwithstanding the foregoing, in no event shall the annual incentive bonus payable to Executive for the period from January 1, 2004 through December
31, 2004 only be less than a guaranteed bonus amount of $12,500 per month, irrespective of whether the Executive satisfies the performance criteria contained in the Bonus Policy as in effect for such fiscal year (the “2004 Guaranteed
Bonus”). The 2004 Guaranteed Bonus portion of the annual incentive bonus shall be paid during the 2004 fiscal year pursuant to the Company’s normal payroll practices. The balance of the annual incentive bonus (the incremental portion of
the annual incentive bonus in excess of the 2004 Guaranteed Bonus amount, if any) shall be paid to the Executive no later than thirty (30) days after the date the Compensation Committee approves the annual incentive bonus payable to the Executive
for the 2004 fiscal year. For purposes of this Agreement, the term “Incentive Bonus” shall mean the amount established pursuant to this Section 4(a). 
  

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 (b) OUTPERFORMANCE PLAN BONUS. The REIT has established the 2003 Outperformance Plan (the
“OPP”) as an incentive compensation plan for key employees with awards determined based on the annual and the three-year total return to shareholders of the REIT. The Executive shall be eligible to participate in the OPP as of January 2,
2004 in an amount as determined by the Compensation Committee. 
  
 5. RESTRICTED STOCK AWARDS. The Executive shall be eligible to receive restricted Common Shares of the REIT (“Restricted Share Grants”) as recommended by the Chief Executive Officer and approved by the Compensation Committee, but
only to the extent that restricted shares are available for issuance under the REIT’s 2002 Equity Incentive Plan (“Equity Incentive Plan”).The Compensation Committee has approved a Restricted Share Grant to the Executive for 60,000
Common Shares to be granted on January 2, 2004 (the “Initial Restricted Share Grant”). Awards of Restricted Share Grants shall be on the following terms: vesting at the rate of 25% of the underlying Common Shares on the one-year
anniversary of the effective date of the grant of Common Shares as Restricted Share Grants and 6.25% of the underlying Common Shares on the last day of each fiscal quarter thereafter until fully vested; provided, however, that, upon
any of the following events the Executive will be 100% vested in the Restricted Share Grants: (i) a Change in Control (as defined herein), (ii) a termination by the Company without Cause (as defined herein) after the six month anniversary of the
Effective Date, (iii) his death, or (iv) his becoming Permanently Disabled (as defined herein). The Executive will be partially vested in the Initial Restricted Share Grant under Section 8(a) below in event the employment of the Executive should
terminate at the election of the Company without Cause (as herein defined) on or before the six month anniversary of the Effective Date. The Executive will forfeit all unvested Restricted Share Grants if he is terminated for Cause or if he
voluntarily terminates his employment with the Company for any reason. Any Common Shares issued as Restricted Share Grants will have voting and dividend rights, and, following the restriction period, shall be registered and transferable by the
Executive. 
  
 6. BENEFITS. 
  
 (a) VACATION. The Executive shall be entitled to four (4) weeks paid
vacation per full calendar year in accordance with the Company’s vacation policy, which shall accrue during the Executive’s employment with the Company. 
  
 (b) SICK AND PERSONAL DAYS. The Executive shall be entitled to sick and personal days pursuant to Company policy.

  
 (c) EMPLOYEE BENEFIT PLANS. The Executive and his spouse and
eligible dependents, if any, and their respective designated beneficiaries where applicable, will be eligible for and entitled to participate in any Company sponsored employee benefit plans, including but not limited to benefits such as group
health, dental, vision, accident, disability insurance, group life insurance, and a 401(k) plan, as such benefits may be offered from time to time, on a basis no less favorable than that applicable to other executives of the Company. 
  

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 (d) OTHER BENEFITS. 
  
 (i) ANNUAL PHYSICAL. The Company shall provide, at its cost, a medical examination for the Executive on an annual basis by
a licensed physician in the Philadelphia, Pennsylvania area selected by the Executive. 
  
 (ii) CAR ALLOWANCE. The Company shall pay Executive a monthly car allowance that is not less than $750.00 per month. 
  
 (iii) DIRECTORS AND OFFICERS INSURANCE. During the Term and during the Severance Period (as hereinafter defined), regardless of whether the Transitional
Severance Period (as hereinafter defined) may apply for other benefits, the Executive shall be entitled to directors and officers insurance coverage for his acts and omissions while an officer of the Company and the REIT on a basis no less favorable
to him than the coverage provided to current officers and trustees. 
  
 (iv) EXPENSES, OFFICE AND SECRETARIAL SUPPORT. The Executive shall be entitled to reimbursement of all reasonable expenses, in accordance with the Company’s policy as in effect from time to time and on a basis no less favorable than
that applicable to other executives of the Company, including, without limitation, telephone, reasonable travel and reasonable entertainment expenses incurred by the Executive in connection with the business of the Company, promptly upon the
presentation by the Executive of appropriate documentation. The Executive shall also be entitled to appropriate office space, administrative support, and such other facilities and services as are suitable to the Executive’s positions and
adequate for the performance of the Executive’s duties. 
  
 (v) RELOCATION. The Executive’s principal place of employment will be at the Company’s headquarters in Jenkintown, Pennsylvania. In consideration for the Executive’s relocation to the Philadelphia, Pennsylvania area, the
Executive will receive a relocation package in the amount of $6,000 (the “Relocation Amount”) to cover the Executive’s relocation expenses, as follows: the Company will reimburse the Executive for reimbursable relocation expenses
pursuant to the Company’s Executive Relocation Policy for an amount up to the Relocation Amount, and to the extent the total relocation reimbursements paid by the Company are less than the Relocation Amount, the difference between the such
total and the Relocation Amount will be paid out to the Executive, less applicable withholding taxes, in accordance with the Company’s Executive Relocation Policy. 
  
 (vi) HOUSING ALLOWANCE. The Company shall pay the Executive $3,750 per month from January 1, 2004 through August 31, 2004
as an allowance toward housing in the Philadelphia, Pennsylvania area. Such amount shall be payable regardless of the Executive’s actual expenses for such housing. 
  
 (vii) PROFESSIONAL LICENSES. The Company shall pay to maintain the Executive’s registration as a non-practicing
attorney in the State of New York. 
  

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 7. TERMINATION. The employment of the Executive by the Company pursuant to this Agreement shall terminate
upon the occurrence of any of the following: 
  
 (a) DEATH OR
PERMANENT DISABILITY. Immediately upon death or Permanent Disability of the Executive. As used in this Agreement, “Permanent Disability” shall mean an inability due to a physical or mental impairment to perform the material services
contemplated under this Agreement for a period of six (6) months, whether or not consecutive, during any 365-day period. A determination of Permanent Disability shall be made by a physician satisfactory to both the Executive and the Company,
provided that if the Executive and the Company do not agree on a physician, the Executive and the Company shall each select a physician and these two together shall select a third physician, whose determination as to Permanent Disability shall be
binding on all parties. The appointment of one or more individuals to carry out the offices or duties of the Executive during a period of the Executive’s inability to perform such duties and pending a determination of Permanent Disability shall
not be considered a breach of this Agreement by the Company. 
  
 (b) FOR CAUSE. At the election of the Company and subject to the provisions of this Section 7(b), immediately upon written notice by the Company to the Executive of his termination for Cause. For purposes of this Agreement,
“Cause” for termination shall be deemed to exist solely in the event of (i) the conviction of the Executive of, or the entry of a plea of guilty or nolo contendere by the Executive to, a felony (exclusive of any felony relating to
negligent operation of a motor vehicle and not including a conviction, plea of guilty or nolo contendere arising solely under a statutory provision imposing criminal liability upon the Executive on a per se basis due to the Company offices
held by the Executive, so long as any act or omission of the Executive with respect to such matter was not taken or omitted in contravention of any applicable policy or directive of the Board or the Chief Executive Officer), (ii) a willful breach of
his duty of loyalty which is materially detrimental to the Company, (iii) a willful failure to perform or adhere to explicitly stated duties that are consistent with the terms of this Agreement, or the Company’s reasonable and customary
guidelines of employment or reasonable and customary corporate governance guidelines or policies, including without limitation any business code of ethics adopted by the Board, or to follow the lawful directives of the Board (provided such
directives are consistent with the terms of this Agreement) which, in any such case, continues for thirty (30) days after written notice from the Chief Executive Officer to the Executive, or (iv) gross negligence or willful misconduct in the
performance of the Executive’s duties. For purposes of this Section 7(b), no act, or failure to act, on the Executive’s part will be deemed “gross negligence” or “willful misconduct” unless done, or omitted to be done,
by the Executive not in good faith and without a reasonable belief that the Executive’s act, or failure to act, was in the best interest of the Company. The parties agree that in order to terminate the Executive pursuant to Subsections (ii) and
(iv) hereof, the Company shall first be required to prove to the reasonable satisfaction of the Executive that he engaged in improper conduct under these Subsections, and if the Executive shall not agree with the Company’s assessment of his
conduct, then the Executive shall not be terminated until an arbitrator, as provided for in Section 13(b), has determined that the Executive’s conduct constituted improper conduct under the applicable Subsection. 
  
 (c) WITHOUT CAUSE; VOLUNTARY RESIGNATION. At the election of the Company
without Cause, and at the election of the Executive for any reason, in either case upon thirty (30) days prior written notice to the Executive or the Company, as the case may be. 
  

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 8. EFFECTS OF TERMINATION. 
  
 (a) TERMINATION BY THE COMPANY WITHOUT CAUSE UNTIL SIX MONTH ANNIVERSARY OF EFFECTIVE DATE. If, at any time up to and until
the six month anniversary of the Effective Date, the employment of the Executive should terminate at the election of the Company without Cause, then the Company shall pay all compensation and benefits for the Executive as follows: 
  
 (i) Any Base Salary, 2004 Guaranteed Bonus, expense reimbursements and
other compensation related payments that are payable as of his termination of employment date that are related to his period of employment preceding his termination date. 
  
 (ii) His car allowance for the period from the termination of his employment up to and until the 12 month anniversary of
the Effective Date (the “Transitional Severance Period”). 
  
 (iii) The amount equal to his (A) Base Salary, plus (B) his 2004 Guaranteed Bonus, at the rates in effect on the effective date of his termination of employment, that would have been paid or payable for the Transitional Severance Period.

  
 The sum of the amount payable under subsections (ii) and (iii)
hereof is referred to herein as his “Transitional Severance Payment”. 
  
 (iv) The Transitional Severance Payment shall be made in a single, lump sum cash payment before the later of (x) thirty (30) days after the effective date of the Executive’s termination of employment, and (y) the
delivery of the signed Release (as defined below) to the Company and the expiration of the Executive’s statutory period to revoke the Release. 
  
 (v) The Company shall allow the Executive to continue to participate during the Transitional Severance Period in any healthcare, dental, vision and
prescription drug plans in which the Executive was entitled to participate immediately prior to his termination, to the same extent and upon the same terms as the Executive participated in such plans prior to his termination, provided that the
Executive’s continued participation is permissible or otherwise practicable under the general terms and provisions of such benefit plans and programs. During the Transitional Severance Period, the Company shall pay for the Executive’s
continued participation in said healthcare, dental, vision and prescription drug plans, including but not limited to premiums for such programs. To the extent that continued participation is neither permissible nor practicable, the Company shall
take such actions as may be necessary to provide the Executive with substantially comparable benefits (without additional cost to the Executive) outside the scope of such plans, including, without limitation, reimbursing the Executive for his costs
in obtaining such coverage, such as COBRA premiums paid by the Executive and/or his eligible dependents. If the Executive engages in regular employment after his termination of employment (whether as an executive or as a self-employed person), any
employee benefit and welfare benefits received by the Executive in consideration of such employment which are similar in nature to the healthcare, dental, vision and prescription drug plans provided by the Company will relieve the Company of its
obligation under this Section 8(a)(v) to provide comparable benefits to the extent of the benefits so received. 
  

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 (vi) The Executive’s Initial Restricted Share Grant shall immediately become vested with respect to
45,000 Common Shares and all restrictions shall lapse on such vested portion of the Restricted Stock Grants. 
  
 (vii) The Company shall continue to promptly pay the Executive the amounts described in Sections 6(d)(v) and 6(d)(vi) hereof. 
  
 (viii) The Noncompete Period in Section 11 shall be reduced to be equal to
the Transitional Severance Period. 
  
 (ix) All Transitional
Severance Payments are contingent on Executive signing a release of claims, substantially in the form attached hereto as Exhibit A (the “Release”). 
  
 (b) TERMINATION ON PERMANENT DISABILITY OR BY THE COMPANY WITHOUT CAUSE FOLLOWING SIX MONTH ANNIVERSARY OF EFFECTIVE DATE. If the employment of the
Executive should terminate at any time by reason of his becoming Permanently Disabled or should terminate at the election of the Company without Cause following the six month anniversary of the Effective Date, then the Company shall pay all
compensation and benefits for the Executive as follows: 
  
 (i)
Any Base Salary, 2004 Guaranteed Bonus, Incentive Bonus, expense reimbursements and all other compensation related payments that are payable as of his termination of employment date that are related to his period of employment preceding his
termination date. 
  
 (ii) The prorated amount of the Target
Incentive Bonus for the year in which the termination of employment occurs, prorated for the portion of such year during which the Executive was employed prior to the effective date of the termination, and subtracting out all 2004 Guaranteed Bonus
payments, if any, received by the Executive during such year. 
  
 (iii) The amount equal to his (A) Base Salary, plus (B) his 2004 Guaranteed Bonus, at the rates in effect on the effective date of his termination of employment, that would have been paid or payable for the duration of the Initial Term of
this Agreement, or if greater, his Base Salary for 12 months (the greater of such periods, being the “Severance Period”). 
  
 The sum of the amount payable under subsections (ii) and (iii) hereof is referred to herein as his “Severance Payment”. 
  
 (iv) The Severance Payment shall be made in a single, lump sum cash payment
before the later of (x) thirty (30) days after the effective date of the Executive’s termination of employment, and (y) the delivery of the signed Release (as defined below) to the Company and the expiration of the Executive’s statutory
period to revoke the Release. With respect to any Severance Payment attributable to a period after the expiration of 24 calendar 
  

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 months after the termination of the Executive’s employment, such payment shall be reduced for compensation earned
from other employment or self-employment after that date, and the Executive shall refund to the Company any amount due as a result of such reduction. 
  
 (v) The Company shall allow the Executive to continue to participate during the Severance Period in any healthcare, dental, vision and prescription drug
plans in which the Executive was entitled to participate immediately prior to his termination, to the same extent and upon the same terms as the Executive participated in such plans prior to his termination, provided that the Executive’s
continued participation is permissible or otherwise practicable under the general terms and provisions of such benefit plans and programs. During the Severance Period, the Company shall pay for the Executive’s continued participation in said
healthcare, dental, vision and prescription drug plans, including but not limited to premiums for such programs. To the extent that continued participation is neither permissible nor practicable, the Company shall take such actions as may be
necessary to provide the Executive with substantially comparable benefits (without additional cost to the Executive) outside the scope of such plans, including, without limitation, reimbursing the Executive for his costs in obtaining such coverage,
such as COBRA premiums paid by the Executive and/or his eligible dependents. If the Executive engages in regular employment after his termination of employment (whether as an executive or as a self-employed person), any employee benefit and welfare
benefits received by the Executive in consideration of such employment which are similar in nature to the healthcare, dental, vision and prescription drug plans provided by the Company will relieve the Company of its obligation under this Section
8(b)(v) to provide comparable benefits to the extent of the benefits so received. 
  
 (vi) The Executive’s restricted Common Shares awarded under the Equity Incentive Plan shall immediately become 100% vested, and all restrictions shall lapse on the vested portion of the Restricted Stock Grants.

  
 (vii) The Executive shall vest in and receive a percentage of
his total OPP allocation for the 3-year term of the OPP (the “OPP Allocation”) equal to (x) the number of complete months the Executive had participated in the OPP from January 2, 2004 through the effective date of his termination of
employment (counting January 2004 as one complete month), divided by (y) 36 (representing the total number of months in the OPP term), in lieu of the scheduled vesting of his OPP Allocation under the OPP. This percentage of his OPP Allocation will
be paid to the Executive (less any cash OPP payments previously received by the Executive) after the OPP reward is determined at the end of the OPP plan term. 
  

(viii) If the Severance Period is less than 24 months, then the Noncompete Period in Section 11 shall be reduced to be equal to the Severance Period.

  
 (ix) All Severance Payments are contingent on Executive
signing a release of claims, substantially in the form attached hereto as Exhibit A (the “Release”). 
  
 (c) TERMINATION ON DEATH. Upon a termination of employment due to the Executive’s death, the Executive shall become 100% vested in the Restricted
Share Grants awarded to the Executive under the Equity Incentive Plan. The Company shall pay to the Executive’s personal representative any Base Salary, 2004 Guaranteed Bonus, expense 
  

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 reimbursements and all other compensation related payments that are payable as of his date of death and that are related
to his period of employment preceding his date of death, and within 60 days after the Executive’s death, shall pay to the Executive’s personal representative a prorated amount of Target Incentive Bonus for the year in which the
Executive’s death occurs, prorated for the portion of the year during which the Executive was employed prior to his death, and subtracting out all 2004 Guaranteed Bonus payments, if any, received by the Executive during such year. 

 
 (d) BY THE COMPANY FOR CAUSE OR VOLUNTARILY BY THE EXECUTIVE. In the event
that the Executive’s employment is terminated by the Company for Cause or voluntarily by the Executive, the Company shall pay the Executive his Base Salary, 2004 Guaranteed Bonus, expense reimbursements and all other compensation related
payments that are payable as of his termination of employment date and that are related to his period of employment preceding his termination date. The Executive shall forfeit all unvested restricted Common Shares if he is terminated by the Company
for Cause, and, subject to Section 9(b) below, he shall forfeit all unvested restricted Common Shares if he voluntarily terminates his employment with the Company. 
  
 (e) TERMINATION OF AUTHORITY. Immediately upon the Executive terminating or being terminated from his employment with the
Company for any reason, notwithstanding anything else appearing in this Agreement or otherwise, the Executive will stop serving the functions of his terminated or expired position(s) and shall be without any of the authority or responsibility for
such position(s). 
  
 9. CHANGE OF CONTROL. 
  
 (a) CHANGE OF CONTROL. For purposes of this Agreement, a “Change of
Control” will be deemed to have taken place upon the occurrence of any of the following events: 
  
 (i) any person, entity or affiliated group, excluding the REIT or any employee benefit plan of the REIT, acquiring more than 50% of the then outstanding
voting shares of the REIT, 
  
 (ii) the consummation of any
merger or consolidation of the REIT into another company, such that the holders of the voting shares of the REIT immediately prior to such merger or consolidation is less than 50% of the voting power of the securities of the surviving company or the
parent of such surviving company, 
  
 (iii) the complete
liquidation of the REIT or the sale or disposition of all or substantially all of the REIT’s assets, such that after the transaction, the holders of the voting shares of the REIT immediately prior to the transaction is less than 50% of the
voting securities of the acquiror or the parent of the acquiror, or 
  
 (iv) a majority of the Board of the REIT votes in favor of a decision that a Change of Control has occurred. 
  
 (b) CERTAIN BENEFITS UPON A CHANGE OF CONTROL. In the event of a Change of Control, the Executive shall become 100% vested in the Restricted Share Grants

  

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 awarded to the Executive under the Equity Incentive Plan and if the Executive voluntarily terminates his employment for
any reason after the Change of Control, then the Executive shall have a one-year period following the Change of Control in which to exercise his vested stock options, including those stock options that vested upon the Change of Control. 

 
 (c) EXCISE TAX. 
  
 (i) In the event that any payment or benefit received or to be received by
the Executive in connection with a change in control or a termination of the Executive’s employment (whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement with the Company, any person whose actions result
in a change in control or any person affiliated with the Company or such person) (all such payments and benefits being hereinafter called “Total Payments”), such that the Executive will be subject (in whole or in part) to the excise tax
imposed under Section 4999 of the Internal Revenue Code of 1986, as amended (“Excise Tax”), on such payments and benefits, then the Company shall pay to the Executive an additional amount (the “Gross-Up Payment”) such that the
net amount retained by the Executive, after deduction of the Excise Tax and any federal, state and local tax on the Gross-Up Payment, will be equal to the Total Payment. For purposes of determining the amount of the Gross-Up Payment, the Executive
shall be deemed to pay federal income taxes at the highest marginal rate of federal income taxation in the calendar year in which the Gross-Up Payment is to be made and state and local income taxes at the highest marginal rate of taxation in the
state and locality of the Executive’s residence on such date, net of the maximum deduction in federal income taxes which could be obtained from deduction of such state and local taxes. 
  
 (ii) The Executive or the Company may request, prior to the time any
payments under this Agreement are made, a determination of whether any or all of the Total Payments will be subject to the Excise Tax and, if so, the amount of such Excise Tax and the federal, state and local tax imposed on the Gross-Up Payment. If
such a determination is requested, it shall be made promptly, at the Company’s expense, by tax counsel selected by the Executive and approved by the Company (with such approval not being unreasonably withheld), and such determination shall be
conclusive and binding on both parties. The Company agrees to provide any information reasonably requested by such tax counsel. Tax counsel may engage accountants or other experts, at the Company’s expense, to the extent deemed necessary or
advisable for them to reach a determination. For these purposes, the term “tax counsel” shall mean a law firm with expertise in federal income tax matters. 
  
 (iii) In the event that the Excise Tax is subsequently determined to be less than the amount taken into account hereunder,
the Executive will repay to the Company, at the time that the amount of such reduction in Excise Tax is finally determined, the portion of the Gross-Up Payment attributable to such reduction plus that portion of the Gross-Up Payment attributable to
the Excise Tax and federal, state and local income tax imposed on the Gross-Up Payment, without any interest thereon. In the event that the Excise Tax is determined to exceed the amount taken into account hereunder, the Company will make an
additional Gross-Up Payment in respect of such excess and in respect of any portion of the Excise Tax with respect to which the Company had not previously made a Gross-Up Payment (plus any interest, penalties or additions payable by the Executive
with respect to such excess and such portion) at the time that the amount of such excess is finally determined, without any interest thereon. 
  

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 (iv) Each party agrees to notify the other party, in writing, of any claim that, if successful, would
require the payment by the Company of a Gross-Up Payment or might entitle the Company to a refund of all or part of any previous Gross-Up Payment. Such notification shall be given as soon as practicable but no later than ten (10) business days after
the Executive or Company is informed in writing of such claim or otherwise becomes aware of such claim. If notice of the claim arose as a result of a claim made against the Executive by a taxing authority, Executive shall not pay such claim prior to
the expiration of the thirty (30) day period following the date on which he gives notice to the Company. If the Company notifies the Executive in writing prior to the expiration of such period that it desires to contest such claim, the Executive
shall: (A) give the Company any information reasonably requested by the Company relating to such claim, (B) take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including,
without limitation, accepting legal representation with respect to such claim by an attorney selected by the Executive and approved by the Company (with such approval not being unreasonably withheld), (C) cooperate with the Company in good faith in
order to effectively contest such claim, and (D) permit the Company to reasonably participate in any proceedings relating to such claim. The Company shall bear and pay directly all costs and expenses (including legal fees and additional interest and
penalties) incurred in connection with such contest and shall indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax (including interest and penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses. 
  
 (v) Notwithstanding the
foregoing, the Company shall control all audits and proceedings taken in connection with any claim, audit or proceeding involving Excise Taxes or Gross-Up Payments and, at its sole option, may pursue or forego any and all administrative appeals,
proceedings, hearings and conferences with the taxing authority in respect of any such claim, audit or proceeding and may, at its sole option, either direct the Executive to pay the tax claimed and sue for a refund or contest the tax in any
permissible manner, and the Executive agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided,
however, that if the Company directs the Executive to pay such tax and sue for a refund, the Company shall advance the amount of such payment to the Executive, (including interest or penalties with respect thereto) and shall indemnify and
hold the Executive harmless, on an after-tax basis, for any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with respect to such advance or with respect to any imputed income with respect to such advance. The
Company shall be required to consult with and keep the Executive fully apprised of developments and actions being considered or taken with respect to such claim, audit or proceeding. The Company’s control of the contest shall be limited to
issues with respect to which such a Gross-Up Payment would be payable or refundable hereunder and the Executive shall be entitled to settle or contest, as the case may be, any other issue. Each party agrees to keep the other party fully apprised of
developments concerning such claim, audit or proceeding and to cooperate with the other in good faith in order to effectively resolve such claim, audit or proceeding. 
  
 (vi) For purposes of this Subsection (c), a determination of whether a payment is subject to Excise Taxes, including but
not limited to, a determination of change in control, shall be made pursuant to Section 280G of the Internal Revenue Code of 1986, as amended. 
  

 -11- 

 10. CONFIDENTIAL INFORMATION. The Executive recognizes and acknowledges that certain assets of the
Company constitute Confidential Information. The term “Confidential Information” as used in this Agreement shall mean all information which is known only to the Executive or the Company, other employees of the Company, or others in a
confidential relationship with the Company, and relating to the Company’s business including, without limitation, information regarding clients, customers, pricing policies, methods of operation, proprietary Company programs, sales products,
profits, costs, markets, key personnel, formulae, product applications, technical processes, and trade secrets, as such information may exist from time to time, which the Executive acquired or obtained by virtue of work performed for the Company, or
which the Executive may acquire or may have acquired knowledge of during the performance of said work. The Executive shall not, during or after the Term, disclose all or any part of the Confidential Information to any person, firm, corporation,
association, or any other entity for any reason or purpose whatsoever, directly or indirectly, except as may be required pursuant to his employment hereunder, unless and until such Confidential Information becomes publicly available other than as a
consequence of the breach by the Executive of his confidentiality obligations hereunder by law or in any judicial administrative proceeding (in which case, the Executive shall provide the Company with notice). In the event of the termination of his
employment, whether voluntary or involuntary and whether by the Company or the Executive, the Executive shall deliver to the Company all documents and data pertaining to the Confidential Information and shall not take with him any documents or data
of any kind or any reproductions (in whole or in part) or extracts of any items relating to the Confidential Information. The Company acknowledges that prior to his employment with the Company, the Executive has lawfully acquired extensive knowledge
of the industries and businesses in which the Company engages in business, and that the provisions of this Section 10 are not intended to restrict the Executive’s use of such previously acquired knowledge. 
  
 In the event that the Executive receives a request or is required (by
deposition, interrogatory, request for documents, subpoena, civil investigative demand or similar process) to disclose all or any part of the Confidential Information, the Executive agrees to (a) promptly notify the Company in writing of the
existence, terms and circumstances surrounding such request or requirement, (b) consult with the Company on the advisability of taking legally available steps to resist or narrow such request or requirement, and (c) assist the Company in seeking a
protective order or other appropriate remedy. In the event that such protective order or other remedy is not obtained or that the Company waives compliance with the provisions hereof, the Executive shall not be liable for such disclosure unless
disclosure to any such tribunal was caused by or resulted from a previous disclosure by the Executive not permitted by this Agreement. 
  
 11. NON-COMPETITION AND NONSOLICITATION. During the Term and, except as otherwise provided in Section 8(a)(viii) and 8(b)(viii), for a period of 24
calendar months after the termination of the Executive’s employment (the “Noncompete Period”), the Executive shall not, directly or indirectly, either as a principal, agent, employee, employer, stockholder, partner or in any other
capacity whatsoever: (a) engage or assist others engaged, in whole or in part, in any business which is engaged in a business or enterprise that is substantially similar to the 
  

 -12- 

 business that the Company was engaged in during the period of the Executive’s employment with the Company, or (b)
without the prior consent of the Board, employ or solicit the employment of, or assist others in employing or soliciting the employment of, any individual employed by the Company at any time while the Executive was also so employed; provided,
however, that the provisions of this Section 11 shall not apply in the event the Company materially breaches this Agreement or the Release. 
  
 Nothing in this Section 11 shall prohibit Executive from making any passive investment in a public company, or where he is the owner of five percent (5%)
or less of the issued and outstanding voting securities of any entity, provided such ownership does not result in his being obligated or required to devote any managerial efforts. 
  
 The Executive agrees that the restraints imposed upon him pursuant to this Section 11 are necessary for the reasonable and
proper protection of the Company and its subsidiaries and affiliates, and that each and every one of the restraints is reasonable in respect to subject matter, length of time and geographic area. The parties further agree that, in the event that any
provision of this Section 11 shall be determined by any court of competent jurisdiction to be unenforceable by reason of its being extended over too great a time, too large a geographic area or too great a range of activities, such provision shall
be deemed to be modified to permit its enforcement to the maximum extent permitted by law. 
  
 12. INTELLECTUAL PROPERTY. During the Term, the Executive shall promptly disclose to the Company or any successor or assign, and grant to the Company and its successors and assigns without any separate remuneration or
compensation other than that received by him in the course of his employment, his entire right, title and interest in and to any and all inventions, developments, discoveries, models, or any other intellectual property of any type or nature
whatsoever (“Intellectual Property”), whether developed by him during or after business hours, or alone or in connection with others, that is in any way related to the business of the Company, its successors or assigns. This provision
shall not apply to books or articles authored by the Executive during non-work hours, consistent with his obligations under this Agreement, so long as such books or articles (a) are not funded in whole or in part by the Company, and (b) do not
contain any Confidential Information or Intellectual Property of the Company. The Executive agrees, at the Company’s expense, to take all steps necessary or proper to vest title to all such Intellectual Property in the Company, and cooperate
fully and assist the Company in any litigation or other proceedings involving any such Intellectual Property. 
  
 13. DISPUTES. 
  
 (a) EQUITABLE RELIEF. The Executive acknowledges and agrees that upon any breach by the Executive of his obligations under Sections 10, 11, or 12 hereof,
the Company will have no adequate remedy at law, and accordingly will be entitled to specific performance and other appropriate injunctive and equitable relief. 
  

(b) ARBITRATION. Excluding only requests for equitable relief by the Company under Section 13(a), in the event that there is any claim or dispute
arising out of or relating to this Agreement or the breach hereof, and the parties hereto shall not have resolved such claim or dispute within 60 days after written notice from one party to the other setting forth 
  

 -13- 

 the nature of such claim or dispute, then such claim or dispute shall be settled exclusively by binding arbitration in
Montgomery county, Pennsylvania, in accordance with the Employment Dispute Resolution Rules of the American Arbitration Association (“Rules”), by an arbitrator mutually agreed upon by the parties hereto or, in the absence of such
agreement, by an arbitrator selected according to such Rules. Notwithstanding the foregoing, if either the Company or the Executive shall request, such arbitration shall be conducted by a panel of three (3) arbitrators, one selected by the Company,
one selected by the Executive and the third selected by agreement of the first two arbitrators, or, in the absence of such agreement, in accordance with such Rules. Judgment upon the award rendered by such arbitrator(s) shall be entered in any Court
having jurisdiction thereof upon the application of either party. The parties agree to use their reasonable best efforts to have such arbitration completed as soon as is reasonably practicable. Notwithstanding anything herein to the contrary, except
as provided in Section 13(c) below, the losing party shall pay the reasonable costs and expenses (including reasonable attorney fees and expenses) of the prevailing party with respect to such arbitration, except the Executive, if he is the losing
party, shall not be required to pay such expenses and costs if the claim relates to statutory discrimination claims that he would not otherwise be required to pay if such claim had been brought in a court of competent jurisdiction. 
  
 (c) LEGAL FEES. The Company shall pay or promptly reimburse the Executive for
the reasonable legal fees and expenses incurred by the Executive in successfully enforcing or defending any right of the Executive pursuant to this Agreement, even if the Executive does not prevail on each issue. 
  
 14. INDEMNIFICATION. The Company shall indemnify the Executive, to the
maximum extent permitted by applicable law, against all costs, charges and expenses incurred or sustained by the Executive, including the cost of legal counsel selected and retained by the Executive in connection with any action, suit or proceeding
to which the Executive may be made a party by reason of the Executive being or having been an officer, director, or employee of the Company or the REIT. 
  
 15. COOPERATION IN FUTURE MATTERS. The Executive hereby agrees that for a period of 18 months following his termination of employment he shall cooperate
with the Company’s reasonable requests relating to matters that pertain to the Executive’s employment by the Company, including, without limitation, providing information or limited consultation as to such matters, participating in legal
proceedings, investigations or audits on behalf of the Company, or otherwise making himself reasonably available to the Company for other related purposes. Any such cooperation shall be performed at scheduled times taking into consideration the
Executive’s other commitments, and the Executive shall be compensated at a reasonable hourly or per diem rate to be agreed upon by the parties to the extent such cooperation is required on more than an occasional and limited basis. The
Executive shall not be required to perform such cooperation to the extent it conflicts with any requirements of exclusivity of services for another employer or otherwise, nor in any manner that in the good faith belief of the Executive would
conflict with his rights under or ability to enforce this Agreement. 
  

 -14- 

 16. GENERAL. 
  
 (a) NOTICES. All notices and other communications hereunder shall be in writing or by written telecommunication, and shall be deemed to have been duly
given if delivered personally or if sent by overnight courier or by certified mail, return receipt requested, postage prepaid or sent by written telecommunication or telecopy, to the relevant address set forth below, or to such other address as the
recipient of such notice or communication shall have specified in writing to the other party hereto, in accordance with this Section 16(a). 
  

					
	 If to the Company, to:
	  	 First States Group, L.P.

	 	  	 1725 The Fairway

	 	  	 Jenkintown, PA 19046

	 	  	 Attn:
	 	 Nicholas S. Schorsch, President and

	 	  	 	 	 Chief Executive Officer

	 	  	 Facsimile: 215-887-2585

  
 If to Executive, at
his last residence shown on the records of the Company. 
  
 Any such notice shall
be effective (i) if delivered personally, when received, (ii) if sent by overnight courier, when receipted for, (iii) if mailed, five (5) days after being mailed, and (iv) on confirmed receipt if sent by written telecommunication or telecopy,
provided a copy of such communication is sent by regular mail, as described above. 
  
 (b) SEVERABILITY. If any provision of this Agreement is or becomes invalid, illegal or unenforceable in any respect under any law, the validity, legality and enforceability of the remaining provisions hereof shall not
in any way be affected or impaired. 
  
 (c) WAIVERS. No delay or
omission by either party hereto in exercising any right, power or privilege hereunder shall impair such right, power or privilege, nor shall any single or partial exercise of any such right, power or privilege preclude any further exercise thereof
or the exercise of any other right, power or privilege. 
  
 (d)
COUNTERPARTS. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. In making proof of this Agreement, it shall not be necessary to
produce or account for more than one such counterpart. 
  
 (e)
ASSIGNS. This Agreement shall be binding upon and inure to the benefit of the Company’s successors and the Executive’s personal or legal representatives, executors, administrators, heirs, distributees, devisees and legatees. This Agreement
shall not be assignable by the Executive, it being understood and agreed that this is a contract for the Executive’s personal services. This Agreement shall not be assignable by the Company except that the Company shall assign it in connection
with a transaction involving the succession by a third party to all or substantially all of the Company’s business and/or assets (whether direct or indirect and whether by purchase, merger, consolidation, liquidation or otherwise). When
assigned to a successor, the assignee shall assume this Agreement and expressly agree to perform this Agreement in the same manner and to the same extent as the Company would be required to 
  

 -15- 

 perform it in the absence of such an assignment. For all purposes under this Agreement, the term “Company”
shall include any successor to the Company’s business and/or assets that executes and delivers the assumption agreement described in the immediately preceding sentence or that becomes bound by this Agreement by operation of law. 
  
 (f) ENTIRE AGREEMENT. This Agreement contains the entire understanding of the
parties, supersedes all prior agreements and understandings, whether written or oral, relating to the subject matter hereof and may not be amended except by a written instrument hereafter signed by the Executive and the Chief Executive Officer or a
duly authorized representative of the Board (other than the Executive). 
  
 (g) GOVERNING LAW. This Agreement and the performance hereof shall be construed and governed in accordance with the laws of the Commonwealth of Pennsylvania, without giving effect to principles of conflicts of law. 
  
 (h) CONSTRUCTION. The language used in this Agreement shall be deemed to be
the language chosen by the parties to express their mutual intent, and no rule of strict construction shall be applied against any party. The headings of sections of this Agreement are for convenience of reference only and shall not affect its
meaning or construction. Whenever any word is used herein in one gender, it shall be construed to include the other gender, and any word used in the singular shall be construed to include the plural in any case in which it would apply and vice
versa. 
  
 (i) PAYMENTS AND EXERCISE OF RIGHTS AFTER DEATH. Any
amounts payable hereunder after the Executive’s death shall be paid to the Executive’s designated beneficiary or beneficiaries, whether received as a designated beneficiary or by will or the laws of descent and distribution. The Executive
may designate a beneficiary or beneficiaries for all purposes of this Agreement, and may change at any time such designation, by notice to the Company making specific reference to this Agreement. If no designated beneficiary survives the Executive
or the Executive fails to designate a beneficiary for purposes of this Agreement prior to his death, all amounts thereafter due hereunder shall be paid, as and when payable, to his spouse, if she survives the Executive, and otherwise to his estate.

  
 (j) CONSULTATION WITH COUNSEL. The Executive acknowledges that
he has had a full and complete opportunity to consult with counsel or other advisers of his own choosing concerning the terms, enforceability and implications of this Agreement, and that the Company has not made any representations or warranties to
the Executive concerning the terms, enforceability and implications of this Agreement other than as are reflected in this Agreement. 
  
 (k) WITHHOLDING. Any payments provided for in this Agreement shall be paid net of any applicable income tax withholding required under federal, state or
local law. 
  
 (l) CONSUMER PRICE INDEX. For purposes of this
Agreement, the term “CPI” refers to the Consumer Price Index as published by the Bureau of Labor Statistics of the United States Department of Labor, U.S. City Average, All Items for Urban Wage Earners and Clerical Workers (1982-1984=100).
If the CPI is hereafter converted to a different standard reference base or otherwise revised, the determination of the CPI adjustment shall be made with 
  

 -16- 

 the use of such conversion factor, formula or table for converting the CPI, as may be published by the Bureau of Labor
Statistics, or, if the bureau shall no longer publish the same, then with the use of such conversion factor, formula or table as may be published by an agency of the United States, or failing such publication, by a nationally recognized publisher of
similar statistical information. 
  
 (m) SURVIVAL. The provisions
of Sections 8, 9, 10, 11, 12, 13, 14 and 15 shall survive the termination of this Agreement. 
  

 -17- 

 IN WITNESS WHEREOF, and intending to be legally bound hereby, the parties hereto have caused this
Agreement to be duly executed as of the date first above written. 
  

							
	 FIRST STATES GROUP, L.P.
	 	 JAMES T. RATNER

	 By:
	 	 First States Group, LLC
	 	 
	 	 	 Its general partner
	 	 
				
	 	 	 By:
	 	  

	 	  

	 	 	 	 	 Name: Nicholas S. Schorsch
	 	 
	 	 	 	 	 Title:   President and Chief Executive Officer
	 	 
		
	 Dated: December 29, 2003
	 	 Dated: December 29, 2003

  
 GUARANTEE: 
  
 For good and valuable consideration, including the Executive’s agreement to serve as an
officer of American Financial Realty Trust, the obligations of First States Group, L.P. under this Employment Agreement, dated December     , 2003, with James T. Ratner, shall be guaranteed by American Financial Realty
Trust. 
  

			
	 AMERICAN FINANCIAL REALTY TRUST

		
	 By:
	 	  

	 	 	 Name: Nicholas S. Schorsch

	 	 	 Title:   President and Chief Executive Officer

  
 Dated: December 29, 2003 

 

 -18- 

 EXHIBIT A 
  

RELEASE AND WAIVER 
  
 This release and waiver (the “Termination Release”) is made as of the      day of
            , 200     by
                                 (the “Executive”). 
  
 WHEREAS, the Executive and First States Group, L.P. (the “Company”)
have entered into an Employment Agreement (the “Agreement”) dated as of             , 200     that provides for certain compensation and
severance amounts upon his termination of employment; and 
  
 WHEREAS, the Executive has agreed, pursuant to the terms of the Agreement, to execute a release and waiver in the form set forth in this Release and Waiver (“Termination Release”) in consideration of the Company’s agreement
to provide the compensation and severance amounts upon his termination of employment set out in the Agreement; and 
  
 WHEREAS, the Executive has incurred a termination of employment effective as of
            , 20        ; and 
  
 WHEREAS, the Company and the Executive desire to settle all rights, duties and obligations between them, including without limitation all such rights,
duties, and obligations arising under the Agreement or otherwise out of the Executive’s employment by the Company. 
  
 NOW THEREFORE, intending to be legally bound and for good and valid consideration the sufficiency of which is hereby acknowledged, the Executive agrees as
follows: 
  
 1. RELEASE. In consideration for the payments to be
made pursuant to the Agreement: 
  
 (a) Executive knowingly and
voluntarily releases, acquits and forever discharges the Company, and its respective owners, parents, stockholders, predecessors, successors, assigns, agents, directors, officers, employees, representatives, divisions and subsidiaries (collectively,
the “Releasees”) from any and all charges, complaints, claims, liabilities, obligations, promises, agreements, damages, causes of action, suits, rights, costs, losses, debts and expenses of any nature whatsoever, known or unknown,
suspected or unsuspected, foreseen or unforeseen, matured or unmatured, against them which the Executive or any of his heirs, executors, administrators, successors and assigns (“Executive Persons”) ever had, now has or at any time
hereafter may have, own or hold by reason of any matter, fact, or cause whatsoever from the beginning of time up to and including the date of this Termination Release, including without limitation all claims for salary, bonuses, severance pay,
vacation pay or any benefits arising under the Employee Retirement Income Security Act of 1974, as amended; any claims of sexual harassment, or discrimination based upon race, color, national origin, ancestry, religion, marital status, sexual
orientation, citizenship status, medical condition or disability under Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the American with Disabilities Act, Section 1981 of the Civil Rights Acts of 1866 and 1871, the Equal Pay
Act, The Rehabilitation Act, The Consolidated Omnibus Budget Reconciliation Act, as amended, The Fair Labor Standards Act, as amended, and any other federal, state or local law prohibiting discrimination in 
  

 A-1 

 employment; any claims of age discrimination under the Age Discrimination in Employment Act, as amended by the Older
Workers Benefit Protection Act, or under any other federal, state or local law prohibiting age discrimination; claims of breach of implied or express contract, breach of promise, misrepresentation, negligence, fraud, estoppel, defamation, infliction
of emotional distress, violation of public policy, wrongful or constructive discharge, or any other employment-related tort; any claim for costs, fees, or other expenses, including attorneys fees; and all claims under any other federal, state or
local laws relating to employment, except in any case to the extent such release is prohibited by applicable federal, state and/or local law. 
  
 (b) Executive represents that he has not filed or permitted to be filed against the Releasees, any complaints, charges or lawsuits and covenants and
agrees that he will not seek or be entitled to any personal recovery in any court or before any governmental agency, arbitrator or self-regulatory body against any of the Releasees arising out of any matters set forth in Section 1(a) hereof. If
Executive has filed a complaint, charge, grievance, lawsuit or similar action, he agrees to remove, dismiss or take similar action to eliminate such complaint, charge, grievance, lawsuit or similar action within five (5) days of signing this
Termination Release. 
  
 (c) Notwithstanding the foregoing, this
Termination Release is not intended to interfere with Executive’s right to file a charge with the Equal Employment Opportunity Commission (hereinafter referred to as the “EEOC”) in connection with any claim he believes he may have
against the Company. However, Executive hereby agrees to waive the right to recover money damages in any proceeding he may bring before the EEOC or any other similar body or in any proceeding brought by the EEOC or any other similar body on his
behalf. This Termination Release does not release, waive or give up any claim for workers’ compensation benefits, vested retirement or welfare benefits he is entitled to under the terms of the Company’s retirement and welfare benefit
plans, as in effect from time to time, any right to unemployment compensation that Executive may have, or his right to enforce his rights under the Agreement. 
  

2. CONFIRMATION OF OBLIGATIONS. Executive hereby confirms and agrees to his continuing obligation under the Agreement after termination of employment
not to directly or indirectly disclose to third parties or use any Confidential Information (as defined in the Agreement) that he may have acquired, learned, developed, or created by reason of his employment with the Company. 
  
 3. CONFIDENTIALITY; NO COMPETITION; NONSOLICITATION. Executive hereby
confirms and agrees to his confidentiality, nonsolicitation and non-competition obligations under the Agreement. 
  
 4. NO DISPARAGEMENT. Each of the Executive and the Company agree not to disparage the other, including making any statement or comments or engaging in any
conduct that is disparaging or derogatory toward the Executive or the Company, as the case may be, whether directly or indirectly, by name or innuendo; provided, however, that nothing in this Termination Release shall restrict communications
protected as privileged under federal or state law to testimony or communications ordered and required by a court or an administrative agency of competent jurisdiction. 
  

 A-2 

 5. CONFIDENTIALITY. Each of the Executive and the Company agree to keep the terms of this Termination
Release confidential and shall not disclose the fact or terms to third parties, except as required by applicable law or regulation or by court order; provided, however, that Executive may disclose the terms of this Termination Release to
members of his immediate family, his attorney or counselor, and persons assisting him in financial planning or tax preparation, provided these people agree to keep such information confidential; provided, further, however, that the Company
may disclose the terms of this Termination Release to its certified public accountants, outside counsel or others on a need to know basis, provided these people agree to keep such information confidential. 
  
 6. ACKNOWLEDGMENT. The Company has advised the Executive to consult with an
attorney of his choosing prior to signing this Termination Release and the Executive hereby represents to the Company that he has been offered an opportunity to consult with an attorney prior to signing this Termination Release. The Executive shall
have forty-five (45) days to consider the waiver of his rights in this Termination Release, although he may sign this Termination Release sooner if he chooses. Once he has signed this Termination Release, the Executive shall have seven (7)
additional days from the date of execution to revoke his consent to the waiver of his rights. If no such revocation occurs, the Executive’s waiver of rights in this Termination Release shall become effective seven (7) days from the date of
execution by the Executive. In the event that the Executive revokes his waiver of rights in this Termination Release, this Termination Release will have no force and effect and no Severance Payments (as defined in the Agreement) shall be due or
payable. 
  
 7. GOVERNING LAW. This Termination Release shall be
governed and construed in accordance with the laws of Commonwealth of Pennsylvania, without giving effect to principles of conflicts law. 
  
 IN WITNESS WHEREOF, the Executive has executed this Termination Release as of the day and year first above written. 
  

			
	  

  

 A-3Loan Agreement

 Exhibit 10.48 
  
 LOAN AGREEMENT 
  
 Dated as of July 18, 2003 
  
 by and among 
  
 FIRST STATES INVESTORS DB I, LLC 
 as Holding Company Borrower 
 (and each Property-Owning Borrower that 
 joins
the Loan Agreement from time to time) 
 Collectively as Borrower, 
  
 DEUTSCHE BANK AG, CAYMAN ISLANDS BRANCH 
 as Agent, 
  
 LASALLE BANK NATIONAL
ASSOCIATION 
 as Collateral Agent 
  
 and 
  
 Each Lender Signatory hereto 

 TABLE OF CONTENTS 
  

					
	 	 	 	  	Page

	 ARTICLE I. CERTAIN DEFINITIONS
	  	2
	 Section 1.1.
	 	 Definitions.
	  	2
		
	 ARTICLE II. CONDITIONS PRECEDENT
	  	24
	 Section 2.1.
	 	 Conditions Precedent to Closing
	  	24
	 Section 2.2.
	 	 Execution and Delivery of Agreement.
	  	25
	 Section 2.3.
	 	 Advance Procedure
	  	25
	 Section 2.4.
	 	 Initial and Subsequent Advances
	  	29
		
	 ARTICLE III. GENERAL TERMS
	  	31
	 Section 3.1.
	 	 The Loan.
	  	31
	 Section 3.2.
	 	 Use of Proceeds.
	  	31
	 Section 3.3.
	 	 Security for the Loan.
	  	31
	 Section 3.4.
	 	 Borrower’s Note
	  	31
	 Section 3.5.
	 	 Repayment of Advances; Interest; Exit Fee.
	  	32
	 Section 3.6.
	 	 Voluntary Prepayment.
	  	32
	 Section 3.7.
	 	 Mandatory Prepayment; Capital Events; Certain Transfers.
	  	33
	 Section 3.8.
	 	 Application of Payments After Event of Default.
	  	34
	 Section 3.9.
	 	 Method and Place of Payment From the Collection Account to Agent.
	  	34
	 Section 3.10.
	 	 Taxes.
	  	34
	 Section 3.11.
	 	 Release of Collateral.
	  	34
	 Section 3.12.
	 	 Central Cash Management.
	  	35
	 Section 3.13.
	 	 Reserve Account.
	  	39
	 Section 3.14.
	 	 Additional Provisions Relating to the Collection Account and the Reserve Account.
	  	42
	 Section 3.15.
	 	 Security Agreement.
	  	43
	 Section 3.16.
	 	 Real Estate Security Documents; Mortgage Recording Taxes.
	  	44
	 Section 3.17.
	 	 Taxes.
	  	45
	 Section 3.18.
	 	 General Collateral Agent Provisions.
	  	46
	 Section 3.19.
	 	 Indemnity
	  	48
	 Section 3.20.
	 	 Inability to Determine Interest Rate; Illegality.
	  	49
	 Section 3.21.
	 	 Requirements of Law.
	  	49
		
	 ARTICLE IV. REPRESENTATIONS AND WARRANTIES
	  	50
	 Section 4.1.
	 	 Representations and Warranties as to Borrower
	  	50
	 Section 4.2.
	 	 Representations and Warranties as to Each Property.
	  	54
	 Section 4.3.
	 	 Survival of Representations.
	  	60
		
	 ARTICLE V. AFFIRMATIVE COVENANTS
	  	60
	 Section 5.1.
	 	 Affirmative Covenants
	  	60
		
	 ARTICLE VI. NEGATIVE COVENANTS
	  	82
	 Section 6.1.
	 	 Negative Covenants.
	  	82
		
	 ARTICLE VII. EVENT OF DEFAULT
	  	84
	 Section 7.1.
	 	 Event of Default.
	  	84
	 Section 7.2.
	 	 Remedies.
	  	85
	 Section 7.3.
	 	 Remedies Cumulative.
	  	86
	 Section 7.4.
	 	 Curative Advances.
	  	86

  

 i 

					
	 	  	 	  	Page

	 ARTICLE VIII. MISCELLANEOUS
	  	87
	 Section 8.1.
	  	 Survival.
	  	87
	 Section 8.2.
	  	 Agent’s Discretion.
	  	87
	 Section 8.3.
	  	 Governing Law.
	  	87
	 Section 8.4.
	  	 Modification, Waiver in Writing.
	  	88
	 Section 8.5.
	  	 Delay Not a Waiver.
	  	88
	 Section 8.6.
	  	 Notices.
	  	88
	 Section 8.7.
	  	 TRIAL BY JURY.
	  	88
	 Section 8.8.
	  	 Headings.
	  	88
	 Section 8.9.
	  	 Assignment.
	  	89
	 Section 8.10.
	  	 Severability.
	  	89
	 Section 8.11.
	  	 Preferences.
	  	89
	 Section 8.12.
	  	 Waiver of Notice.
	  	90
	 Section 8.13.
	  	 Failure to Consent.
	  	90
	 Section 8.14.
	  	 Schedules Incorporated.
	  	90
	 Section 8.15.
	  	 Offsets, Counterclaims and Defenses.
	  	90
	 Section 8.16.
	  	 No Joint Venture or Partnership.
	  	90
	 Section 8.17.
	  	 Waiver of Marshalling of Assets Defense.
	  	90
	 Section 8.18.
	  	 Waiver of Counterclaim.
	  	91
	 Section 8.19.
	  	 Conflict; Construction of Documents.
	  	91
	 Section 8.20.
	  	 Brokers and Financial Advisors.
	  	91
	 Section 8.21.
	  	 Counterparts.
	  	91
	 Section 8.22.
	  	 Estoppel Certificates.
	  	91
	 Section 8.23.
	  	 Payment of Expenses.
	  	91
	 Section 8.24.
	  	 Non-Recourse.
	  	92
		
	 ARTICLE IX. THE AGENT
	  	94
	 Section 9.1.
	  	 Appointment, Powers and Immunities.
	  	94
	 Section 9.2.
	  	 Reliance by Agent.
	  	94
	 Section 9.3.
	  	 Defaults.
	  	94
	 Section 9.4.
	  	 Rights as a Lender.
	  	94
	 Section 9.5.
	  	 Indemnification.
	  	95
	 Section 9.6.
	  	 Non-Reliance on Agent and Other Lenders.
	  	95
	 Section 9.7.
	  	 Failure to Act.
	  	95
	 Section 9.8.
	  	 Resignation of Agent.
	  	95
	 Section 9.9.
	  	 Agency Fee.
	  	96
	 Section 9.10.
	  	 Consents under Loan Documents.
	  	96
	 Section 9.11.
	  	 Notices, Reports and Other Communications.
	  	96
		
	 Schedule 1 – Collateral Information
	  	 

  

 ii 

 LOAN AGREEMENT 
  
 THIS LOAN AGREEMENT, made as of July 18, 2003, is by and among FIRST STATES INVESTORS DB I, LLC, a Delaware limited
liability company, as the parent entity of each Property-Owning Borrower (as hereinafter defined) (“Holding Company Borrower”), and each wholly-owned subsidiary entity that owns the Property and from time to time joins this
Agreement as an additional Borrower (individually or collectively, as applicable, a “Property-Owning Borrower”), each having an address at c/o First States Group, L.P., 1725 The Fairway, Jenkintown, Pennsylvania 19046 (the Holding
Company Borrower and the Property-Owning Borrower collectively, the “Borrower”); each of the financial institutions signatory hereto that is identified as a “Lender” on the signature pages hereto or that, pursuant to
Section 8.9 hereof, shall become a “Lender” hereunder (individually, a “Lender”, and collectively, the “Lenders”); DEUTSCHE BANK AG, CAYMAN ISLANDS BRANCH, a branch of a foreign banking institution,
having an address at 60 Wall Street, 10th Floor, New York, New York as agent for the Lenders (in such capacity together with its successors in such capacity, the “Agent”); and LASALLE BANK NATIONAL ASSOCIATION, a national banking
association, having an address at 135 South LaSalle Street, Suite 1625, Chicago, Illinois 60603, as a “bank” (as defined in Section 9-102(a)(8) of the UCC), as a “securities intermediary” (as defined in Section 8-102(a)(14) of
the UCC) and as collateral agent for the Lenders (as used herein, “Collateral Agent” shall refer to LaSalle Bank National Association in each such capacity as the context requires together with any successor thereto). 
  
 RECITALS 
  
 WHEREAS, Borrower desires to obtain a series of loan advances (each, an
“Advance” and collectively, the “Loan”) in an aggregate amount at any time outstanding of up to $300,000,000 (the “Loan Amount”) to provide to Borrower financing for a portion of the acquisition
cost of the CTL Property and the Conduit CMBS Property that the Property-Owning Borrower acquires and to pay certain other fees and expenses; 
  
 WHEREAS, the initial Lender is unwilling to make the Loan unless Borrower joins in the execution and delivery of this Agreement, the Note and the Loan
Documents (each as hereinafter defined) to which it is a party which shall establish the terms and conditions of, and provide security for, the Loan; 
  
 WHEREAS, Borrower has agreed to establish certain accounts and to grant to the Agent on behalf of, and for the benefit of, the Lenders, a security
interest therein upon the terms and conditions of the security agreement set forth in Section 3.15; and 
  
 WHEREAS, LaSalle Bank National Association, in its capacity as collateral agent, bank and securities intermediary is willing to join in this Agreement in
such capacities. 

 NOW, THEREFORE, in consideration of the making of the Loan by the Lenders and for other good and valuable
consideration, the mutual receipt and legal sufficiency of which are hereby acknowledged, the parties hereby covenant, agree, represent and warrant as follows: 
  

ARTICLE I. 
 CERTAIN DEFINITIONS

  
 Section 1.1. Definitions. For all purposes of this
Agreement: (1) the capitalized terms defined in this Article 1 have the meanings assigned to them in this Article 1 and include the plural as well as the singular; (2) all accounting terms have the meanings assigned to them in
accordance with GAAP (as hereinafter defined); (3) the words “herein”, “hereof”, and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section, or other
subdivision; and (4) the following terms have the following meanings: 
  
 “Accepted Practices” means such customary practices as commercial mortgage collateral agents or banks would follow in the normal course of their business in performing administrative and custodial duties with respect to
collateral which is generally similar to the Account Collateral; provided, however, that “Accepted Practices” shall not be deemed to include any custodial practices now followed by Collateral Agent for any such
collateral held for its own account to the extent that such practices are more stringent than the practices followed by commercial mortgage collateral agents or banks generally. 
  
 “Account Collateral” has the meaning set forth in Section 3.15(a) hereof. 
  
 “Accounts” means all of Property-Owning Borrower’s
right, title and interest, whether now owned or hereafter acquired, in, to and under all “accounts” as defined in the UCC. 
  
 “Acquisition Cost” means, with respect to each acquisition of Property, the related purchase price plus related reasonable out-of-pocket
costs and expenses approved by the Agent. 
  
 “Advance” has the meaning set forth in the Recitals hereto. 
  
 “Advance Closing Date” means each date on which an Advance is made hereunder to provide Property-Owning Borrower with funds to acquire Property pursuant to Sections 2.3 and 2.4.

  
 “Advance Percentage” means 80%. 

 
 “Advance Rate” means, with respect to each Advance for
Property, the product of the Advance Percentage and the lesser of (x) the related Capital Markets Execution and (y) the related Acquisition Cost. 
  
 “Advisory Fee” has the meaning ascribed to such term in the Commitment. 
  
 “Affiliate” of any specified Person means any other Person controlling or controlled by or under common
control with such specified Person. For the purposes of this definition, “control” when used with respect to any specified Person means the power to direct the management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities or other beneficial interests, by contract or otherwise; and the terms “controlling” and “controlled” have the meanings correlative to the foregoing. 
  
 “Agent” has the meaning provided in the first paragraph of
this Agreement. 
  
 “Agreement” means this Loan
Agreement, together with the Schedules and Exhibits hereto, as the same may from time to time hereafter be modified, supplemented or amended. 
  
 “Alternative Rate” shall have the meaning assigned to such term in Section 3.20(a). 
  
 “Alternative Rate Transaction” shall mean, with respect to
any Interest Accrual Period, any Advance with respect to which the interest rate for such Interest Period is determined with reference to the Alternative Rate. 
  

 2 

 “Applicable Margin” means either 
  
 (x) with respect to each Advance for the acquisition of a
CTL Property, the spread in basis points set forth in the right hand column below determined based upon the credit rating of the related tenant set forth in the left hand column below: 
  

			
	 Credit Rating
 (or the
equivalent)

	  	 Spread in
 Basis Points

	 AAA
	  	125
	 AA
	  	150
	 A
	  	175
	 BBB
	  	250

  
 (y)
with respect to each Advance for the acquisition of a Conduit CMBS Property, 175 basis points (1.75%); 
  
 provided, that notwithstanding the foregoing, in the event any Advance shall not have been repaid in full as of the date fifteen (15) months
following the date on which such Advance was made, then commencing on and after such date fifteen (15) months following the date on which such Advance was made, each spread in basis points set forth above shall automatically and without the
requirement of any action being taken by the Agent or the Lenders be increased by twenty-five basis points (0.25%) (i.e. from 125 to 150, 150 to 175, 175 to 200 and 250 to 275, as applicable). 
  
 “Appraisal” means an appraisal with respect to the Property
prepared by an Appraiser in accordance with the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation, in compliance with the requirements of Title 11 of the Financial Institution Reform, Recovery and Enforcement Act and
utilizing customary valuation methods such as the income, sales/market or cost approaches. 
  
 “Appraiser” means a nationally recognized MAI appraiser selected by Borrower and reasonably approved by the Agent. 
  
 “Assignment of Leases and Rents” means, with respect to each Property, an Assignment of Rents and Leases,
dated as of the applicable Advance Closing Date, granted by the applicable Property-Owning Borrower to Agent for the benefit of the Lenders with respect to the related Leases, as same may thereafter from time to time be supplemented, amended,
modified or extended by one or more agreements supplemental thereto. 
  
 “Basic Carrying Costs” means the following costs with respect to the Property: (i) Impositions and (ii) insurance premiums for policies of insurance required to be maintained by Property-Owning Borrower pursuant to this
Agreement or the other Loan Documents. 
  
 “Borrower” has the meaning provided in the first paragraph of this Agreement. All references in this Agreement to Borrower shall be deemed to include and be equally applicable to the Holding Company Borrower and any
Property-Owning Borrower. 
  

 3 

 “Business Day” means any day other than a Saturday, a Sunday or a day on which
commercial banks in the State of New York or Illinois are authorized or obligated by law, governmental decree or executive order to be closed. When used with respect to an Interest Determination Date, “Business Day” shall mean any
day other than a Saturday, a Sunday or a day on which banks in London, England are closed for interbank or foreign exchange transactions. 
  
 “Capital Event” means any transfer, sale, assignment, conveyance, liquidation, or disposition (other than a Taking) of a Property and
“Capital Events” shall have a meaning correlative to the foregoing. 
  
 “Capital Event Proceeds” means any cash proceeds of a Capital Event received by the Borrower net of any cash prorations, adjustments and credits with respect to such Capital Event and net of
reasonable third-party expenses paid in connection with such Capital Event. 
  
 “Capital Improvement Costs” means costs incurred or to be incurred in connection with replacements and capital repairs made to the Property (including without limitation, TI Costs and Leasing
Commissions). 
  
 “Capital Markets Execution”
means, with respect to each Property and the related Advance, the maximum amount of debt financing that can be issued with respect to such Property as determined by the Agent in its good faith business judgment. 
  
 “Chattel Paper” means all of Property-Owning Borrower’s
right, title and interest, whether now owned or hereafter acquired, in, to and under all “chattel paper” as defined in the UCC (whether tangible chattel paper or electronic chattel paper). 
  
 “Closing Date” means the date of the execution of this
Agreement. 
  
 “Code” means the Internal Revenue
Code of 1986, as amended, and as it may be further amended from time to time, any successor statutes thereto, and applicable U.S. Department of Treasury regulations issued pursuant thereto in temporary or final form. 
  
 “Collateral” means, (x) so long as an Event of Default under
the Loan has not occurred and is not continuing, the entire legal and beneficial ownership interests in the Holding Company Borrower pledged pursuant to the Pledge Agreement (Holding Company Borrower) and the entire legal and beneficial ownership
interests in each Property-Owning Borrower pledged pursuant to the Pledge Agreement (Property-Owning Borrower) and (y) after the occurrence and during the continuance of an Event of Default, collectively, the Land, Improvements, Leases, Rents,
Personalty, and all Proceeds, and (to the full extent assignable) Permits, which is or hereafter may become subject to a Lien in favor of the Agent on behalf of the Lenders as security for the Loan (whether pursuant to the Mortgages, any other Loan
Document or otherwise), all whether now owned or hereafter acquired and all other property which is or hereafter may become subject to a Lien in favor of the Agent on behalf of the Lenders as security for the Loan and including all property of any
kind described as part of the Property under the Mortgages. 
  
 “Collateral Agent” has the meaning specified in the introductory paragraph of this Agreement. 
  
 “Collateral Information” means the information with respect to each Property set forth on Schedule 1 attached hereto. 

 

 4 

 “Collateral Security Instrument” means any right, document or instrument, other than the
Mortgages, given as security for the Loan, including, without limitation, the Pledge Agreements. 
  
 “Collection Account” has the meaning set forth in Section 3.12(a) hereof. 
  
 “Collection Period” means, with respect to any Payment Date,
the period commencing on and including the [eleventh (11th)] day in the month preceding the month in which such Payment Date occurs through and including the [tenth (10th)] day in the immediately succeeding month in which such Payment Date occurs; provided, however, that in the case of the first Payment Date, the
“Collection Period” shall commence on the initial Advance Closing Date. 
  
 “Commitment” means the Conditional Commitment dated May 9, 2003, entered into by First States Group, L.P. and the Agent with respect to the Loan. 
  
 “Condemnation Proceeds” means, in the event of a Taking with
respect to the Property, the proceeds in respect of such Taking less any reasonable third party out-of-pocket expenses incurred in collecting such proceeds. 
  
 “Conduit CMBS Property” means a multi-tenant property or a commercial property (including a retail, office, warehouse property, but
excluding raw land) suitable for inclusion in a conduit commercial mortgage-backed securities offering. 
  
 “Consumer Price Index” means the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the United
States Department of Labor, in the area where the Property is located; All Items (1982-84 = 100), or any successor index thereto, appropriately adjusted and if the Consumer Price Index ceases to be published and there is no successor thereto, such
other index as Agent and Borrower shall mutually agree upon. 
  
 “Contingent Obligation” means, as used in the definition of Other Borrowings, without duplication, any obligation of Borrower guaranteeing any indebtedness, leases, dividends or other obligations (“primary
obligations”) of any other Person (the “primary obligor”) in any manner, whether directly or indirectly. Without limiting the generality of the foregoing, the term “Contingent Obligation” shall include any
obligation of Borrower: 
  
 (i) to purchase any
such primary obligation or any property constituting direct or indirect security therefor; 
  
 (ii) to advance or supply funds (x) for the purchase or payment of any such primary obligation or (y) to maintain working capital or
equity capital of the primary obligor; 
  
 (iii)
to purchase property, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary obligation; or 
  
 (iv) otherwise to assure or hold harmless the holder of such
primary obligation against loss in respect thereof. 
  
 The amount of any
Contingent Obligation shall be deemed to be an amount equal to the stated or determinable amount of the primary obligation in respect of which such Contingent Obligation is made or, if not stated or determinable, the maximum reasonably anticipated
liability in respect thereof (assuming Borrower is required to perform thereunder) as determined by Agent in good faith. 
  

 5 

 “Contract Assignment” means, with respect to each Property, the Assignment of Contracts,
Licenses, Permits, Agreements, Warranties and Approvals, dated as of the applicable Advance Closing Date and granted by the applicable Property-Owning Borrower to Agent for the benefit of the Lenders with respect to the related Contracts, as same
may thereafter from time to time be supplemented, amended, modified or extended by one or more agreements supplemental thereto. 
  
 “Contracts” means the Management Agreement and all other agreements to which the applicable Property-Owning Borrower is a party or which
are assigned to the applicable Property-Owning Borrower by the applicable Manager in the applicable Management Agreement and which are executed in connection with the construction, operation and management of the Property (including, without
limitation, agreements for the sale, lease or exchange of goods or other property and/or the performance of services by it, in each case whether now in existence or hereafter arising or acquired) as any such agreements have been or may be from time
to time amended, supplemented or otherwise modified. 
  
 “Credit Lease” means a Triple Net Lease, a Double Net Lease or a bond-type lease to a tenant acceptable to the Agent that occupies and/or is master lessor to subtenants that occupy the related Property. 
  
 “CTL Property” means a commercial property that is subject
to a Credit Lease. 
  
 “Deed of Trust Trustee”
means the trustee under the Mortgage that constitutes a “deed of trust” under applicable law. 
  
 “Default” means the occurrence of any event which, but for the giving of notice or the passage of time, or both, would be an Event of
Default. 
  
 “Default Rate” means the per annum
interest rate equal to the lesser of (a) 4.0% per annum in excess of the rate otherwise applicable hereunder and (b) the maximum rate allowable by applicable law. 
  
 “Deferred Maintenance Escrow Account” has the meaning set forth in Section 3.13(a). 
  
 “Deficient Amount” has the meaning set forth in Section
5.1(x)(iv)(B). 
  
 “Deposit Account” means
all of Property-Owning Borrower’s right, title and interest, whether now owned or hereafter acquired, in, to and under all “deposit accounts” as defined in the UCC. 
  
 “Diligence Materials” means, collectively, the Preliminary Due Diligence Package and the Supplemental Due
Diligence List. 
  
 “Documents” means all of
Property-Owning Borrower’s right, title and interest, whether now owned or hereafter acquired, in, to and under all “documents” as defined in the UCC (whether negotiable or non-negotiable) or other receipts covering, evidencing or
representing goods. 
  
 “Double Net Lease” shall
mean a lease under which the tenant pays for all or substantially all of any two of the following for the Property: (i) real estate property taxes; (ii) property insurance; and (iii) operating expenses. 
  
 “Eligible Account” means a separate and identifiable account
from all other funds held by the holding institution that is: (i) an account maintained with a federal or state chartered depository institution or trust company whose (1) commercial paper, short-term debt obligations or other short-term 

 

 6 

 deposits are rated by the Rating Agencies not less than “A-1”(or the equivalent), if the deposits are to be
held in the account for thirty (30) days or less or (2) long-term unsecured debt obligations are rated at least “AA-” (or the equivalent), if the deposits are to be held in the account more than thirty (30) days or (ii) a segregated trust
account maintained with the corporate trust department of a federal or state chartered depository institution or trust company subject to regulations regarding fiduciary funds on deposit similar to Title 12 of the Code of Federal Regulations Section
9.10(b) which, in either case, has corporate trust powers, acting in its fiduciary capacity. An Eligible Account shall not be evidenced by a certificate of deposit, passbook, other instrument or any other physical indicia of ownership. Following a
downgrade, withdrawal, qualification or suspension of such institution’s rating, each account must promptly (and in any case within not more than thirty (30) calendar days) be moved to a qualifying institution or to one or more segregated trust
accounts in the trust department of such institution, if permitted. 
  
 “Engineer” means an Independent Engineer selected by Borrower and reasonably approved by Agent. 
  
 “Engineering Report” means the structural engineering reports with respect to the Property prepared by an Engineer and delivered to Agent
in connection with each Advance and any amendments or supplements thereto delivered to Agent. 
  
 “Environmental Auditor” means an Independent environmental auditor selected by Borrower and reasonably approved by Agent. 
  
 “Environmental Claim” means any notice, notification, request for information, claim, administrative,
regulatory or judicial action, suit, judgment, demand or other written communication (whether written or oral) by any Person or Governmental Authority alleging or asserting liability with respect to Borrower or the Property (whether for damages,
contribution, indemnification, cost recovery, compensation, injunctive relief, investigatory, response, remedial or cleanup costs, damages to natural resources, personal injuries, fines or penalties) arising out of, based on or resulting from (i)
the presence, Use or Release into the environment of any Hazardous Substance at any location (whether or not owned, managed or operated by Borrower) that affects the Property, (ii) any fact, circumstance, condition or occurrence forming the basis of
any violation, or alleged violation, of any Environmental Law with respect to the Property or (iii) any alleged injury or threat of injury to human health, safety or the environment with respect to the Property. 
  
 “Environmental Indemnity Agreement” means the Environmental
Indemnity Agreement dated as of the Closing Date, from the Holding Company Borrower and First States Group, L.P., as indemnitor, to the Lenders, Agent and Collateral Agent, as indemnitees. 
  
 “Environmental Laws” means any and all present and future
federal, state or local laws, statutes, ordinances, rules or regulations, or any judicial interpretation thereof, any judicial or administrative orders, decrees or judgments thereunder issued by a Governmental Authority, and any permits, approvals,
licenses, registrations, filings and authorizations, in each case as now or hereafter in effect, relating to the environment, human health or safety, or the Release or threatened Release of Hazardous Substances or otherwise relating to the Use of
Hazardous Substances. 
  
 “Environmental Reports”
means a “Phase I Environmental Site Assessment” (and, if such Phase I Environmental Site Assessment identifies any recognized environmental conditions requiring further investigation, a “Phase II Environment Site Assessment” with
respect to such recognized environmental conditions) as referred to in the ASTM Standards on Environmental Site Assessments for Commercial Real Estate, E 1527-00 and an asbestos survey (if available), with respect to the Property, prepared by an
Environmental Auditor and delivered to Agent in connection with each Advance and any amendments or supplements thereto delivered to Agent. 
  

 7 

 “Equipment” means all of Property-Owning Borrower’s right, title and interest,
whether now owned or hereafter acquired, in, to and under (i) all “equipment” as defined in the UCC, and (ii) all of the following (regardless of how classified under the UCC): all building materials, construction materials, personal
property constituting furniture, fittings, appliances, apparatus, leasehold improvements, machinery, devices, interior improvements, appurtenances, equipment, plant, furnishings, fixtures, computers, electronic data processing equipment,
telecommunications equipment and other fixed assets now owned or hereafter acquired by Property-Owning Borrower, and all Proceeds of (i) and (ii) and as well as all additions to, substitutions for, replacements of or accessions to any of the items
recited as aforesaid and all attachments, components, parts (including spare parts) and accessories, whether installed thereon or affixed thereto, all regardless of whether the same are located on such Property or are located elsewhere (including,
without limitation, in warehouses or other storage facilities or in the possession of or on the premises of a bailee, vendor or manufacturer) for purposes of manufacture, storage, fabrication or transportation and all extensions and replacements to,
and proceeds of, any of the foregoing. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated thereunder. Section references to ERISA are to ERISA, as in effect at the date of this
Agreement and, as of the relevant date, any subsequent provisions of ERISA, amendatory thereof, supplemental thereto or substituted therefor. 
  
 “ERISA Affiliate” means any corporation or trade or business that is a member of any group of organizations (i) described in Section
414(b) or (c) of the Code of which Borrower is a member and (ii) solely for purposes of potential liability under Section 302(c)(11) of ERISA and Section 412(c)(11) of the Code and the lien created under Section 302(f) of ERISA and Section 412(n) of
the Code, described in Section 414(m) or (o) of the Code of which Borrower is a member. 
  
 “Escrow Agreement” means, with respect to the Real Estate Security Documents, the Escrow Agreement, to be entered into by and among the Holding Company Borrower on behalf of itself and each
Property-Owning Borrower, the Agent, the Collateral Agent, and the Title Agent, as same may thereafter from time to time be supplemented, amended, modified or extended by one or more agreements supplemental thereto. 
  
 “Event of Default” has the meaning set forth in Section
7.1 hereof. 
  
 “Exit Fee” means 0.25% of the
principal amount of each Advance made pursuant to this Agreement, which shall be due and payable at the time such Advance is repaid (whether on the Maturity Date, by acceleration or otherwise); provided, that the Exit Fee shall be waived if
the Property acquired with the proceeds of the Advance is immediately upon repayment of such Advance being including in a securitization in which Deutsche Bank Securities Inc. acts as lead manager and sole book runner or if the Advance is refinanced
with permanent financing provided by Deutsche Bank Securities Inc. or its Affiliates. 
  
 “Fee Letter” means the letter dated the date hereof entered into between Borrower and the Collateral Agent, with respect to the fees of the Collateral Agent under this Agreement. 
  
 “Fiscal Year” means the 12-month period ending on December
31st of each year (or, in the case of the first fiscal year, such shorter period from the Closing Date through such date) or such other fiscal year of Borrower as Borrower may select from time to time with the prior consent of Agent. 
  

 8 

 “Fund” has the meaning set forth in the definition of “Permitted Investments”.

  
 “GAAP” means generally accepted accounting
principles in the United States of America as of the date of the applicable financial report. 
  
 “General Intangibles” means all of Property-Owning Borrower’s right, title and interest, whether now owned or hereafter acquired, in, to and under (i) all “general intangibles” as
defined in the relevant UCC, now owned or hereafter acquired by Property-Owning Borrower and (ii) all of the following (regardless of how characterized): all agreements, covenants, restrictions or encumbrances affecting the Property or any part
thereof. 
  
 “Governmental Authority” means any
national or federal government, any state, regional, local or other political subdivision thereof with jurisdiction and any Person with jurisdiction exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining
to government. 
  
 “Gross Revenue” means, for any
period, the total dollar amount of all income and receipts received by, or for the account of, Property-Owning Borrower in the ordinary course of business with respect to the Property, but excluding Loss Proceeds (other than the proceeds of business
interruption insurance or the proceeds of a temporary Taking in lieu of Rents). 
  
 “Ground Lease” means any Property owned by a Property-Owning Borrower which is a leasehold estate. 
  
 “Ground Lease Impairment” means with respect to the Ground Lease: (i) any termination, cancellation or surrender (in each case in whole
or in part and whether or not pursuant to an express right contained in the Ground Lease); (ii) any modification, amendment, supplementation, or other change affecting the Ground Lease; (iii) any subordination, or consent to the subordination of the
Ground Lease to any mortgage or other Lien encumbering (or that may in the future encumber) the estate of the lessor under the Ground Lease in any premise(s) demised to Borrower under the Ground Lease; or (iv) Borrower’s delivery of any notice
to the lessor under the Ground Lease that impairs or may impair, or purports to limit the exercise of Agent’s rights and remedies under the Mortgage or the Ground Lease, whether caused by Borrower or suffered or permitted to occur by Borrower.

  
 “Ground Rent” means any and all payments
required of Borrower under the Ground Lease, including base rent, fixed rent, additional rent, and any other payments, sums or charges payable or required to be paid, whether to the ground lessor or to a third party, under the Ground Lease.

  
 “Guarantor” means American Financial Realty
Trust, a Maryland real estate investment trust, and First States Group, L.P., a Delaware limited partnership, on a joint and several basis. 
  
 “Guaranty of Nonrecourse Obligations” means, with respect to the Loan, the Guaranty of Nonrecourse Obligations guaranteeing the
exceptions to the nonrecourse provisions of the Loan Documents for which liability is retained as described in Section 8.24 hereof from the Guarantor to the Agent for the benefit of the Lenders. 
  
 “Hazardous Substance” means, collectively, (i) any petroleum
or petroleum products or waste oils, explosives, radioactive materials, asbestos, urea formaldehyde foam insulation, polychlorinated biphenyls (“PCBs”), lead-based paint and radon, (ii) any chemicals or other materials or substances
which are now or hereafter become defined as or included in the definitions of “hazardous substances”, “hazardous wastes”, “hazardous materials”, “extremely hazardous wastes”, “restricted hazardous
wastes”, “toxic substances”, “toxic pollutants”, “contaminants”, “pollutants” or words of 
  

 9 

 similar import under any Environmental Law and (iii) any other chemical or any other hazardous material or substance,
exposure to which is now or hereafter prohibited, limited or regulated under any Environmental Law. 
  
 “Holding Company Borrower” has the meaning provided in the first paragraph of this Agreement. 
  
 “Impositions” means all taxes (including, without
limitation, all real estate, ad valorem, sales (including those imposed on lease rentals), use, single business, gross receipts, value added, intangible transaction privilege, privilege or license or similar taxes), assessments (including, without
limitation, all assessments for public improvements or benefits, whether or not commenced or completed within the term of the Loan), ground rents, water, sewer or other rents and charges, excises, levies, governmental fees (including, without
limitation, license, permit, inspection, authorization and similar fees), and all other governmental charges, in each case whether general or special, ordinary or extraordinary, foreseen or unforeseen, in respect of the Property (including all
interest and penalties thereon), accruing during or in respect of the term hereof and which may be assessed against or imposed on or in respect of or be a Lien upon (1) Borrower (including, without limitation, all income, franchise, single business
or other taxes imposed on Borrower for the privilege of doing business in the jurisdiction in which the Property, or any other collateral delivered or pledged to Agent in connection with the Loan, is located), or (2) the Property, or any other
collateral delivered or pledged to Lenders in connection with the Loan, or any part thereof or any Rents therefrom or any estate, right, title or interest therein, or (3) any occupancy, operation, use or possession of, or sales from, or activity
conducted on, or in connection with the Property or the leasing or use of the Property or any part thereof, or the acquisition or financing of the acquisition of the Property by Borrower. 
  
 “Improvements” means all buildings, structures, fixtures and improvements now or hereafter owned by
Property-Owning Borrower of every nature whatsoever situated on any Land constituting part of the Property (including, without limitation, all gas and electric fixtures, radiators, heaters, engines and machinery, boilers, ranges, elevators and
motors, plumbing and heating fixtures, carpeting and other floor coverings, water heaters, awnings and storm sashes, and cleaning apparatus which are or shall be affixed to the Land or said buildings, structures or improvements and including any
additions, enlargements, extensions, modifications, repairs or replacements thereto). 
  
 “Indebtedness” means the Principal Indebtedness, together with all other obligations and liabilities due or to become due to the Lenders pursuant hereto, under the Note or in accordance with any of
the other Loan Documents, and all other amounts, sums and expenses paid by or payable to the Lenders hereunder or pursuant to the Note or any of the other Loan Documents. 
  
 “Indemnification Agreement” means with respect to any Property, the related indemnification agreement, if
any, delivered by First States Group, L.P., a Delaware limited partnership, to the Agent for the benefit of the Lenders pursuant to which First States Group, L.P., agrees to indemnify the Agent and Lenders for any losses incurred on the related
Advance due to or as a result of conditions existing at (or circumstances surrounding) such Property relating to matters that would be reasonably expected to be revealed by due diligence deliveries referenced in Article II of this Agreement that
were not made in connection with such Advance. 
  
 “Indemnified Parties” has the meaning set forth in Section 5.1(i). 
  
 “Independent” means, when used with respect to any Person, a Person that (i) does not have any direct financial interest or any material
indirect financial interest in Borrower or in any Affiliate of Borrower, and (ii) is not connected with Borrower or any Affiliate of Borrower as an officer, employee, trustee, partner, director or person performing similar functions. 
  

 10 

 “Index Maturity” has the meaning set forth in the definition of LIBOR. 
  
 “Instruments” means all of Property-Owning Borrower’s
right, title and interest, whether now owned or hereafter acquired, in, to and under all “instruments” as defined in the UCC. 
  
 “Insurance Escrow Account” has the meaning set forth in Section 3.13(b). 
  
 “Insurance Premiums” has the meaning set forth in Section
5.1(x)(iii). 
  
 “Insurance Proceeds” means,
in the event of a casualty with respect to the Property, the proceeds received under any insurance policy applicable thereto. 
  
 “Insurance Requirements” means all material terms of any insurance policy required pursuant to this Agreement and all material
regulations, rules and other requirements of the National Board of Fire Underwriters or such other body exercising similar functions applicable to or affecting the Property or any part thereof or any use or condition thereof. 
  
 “Insured Casualty” has the meaning set forth in Section
5.1(x)(iv)(B). 
  
 “Intellectual Property”
means all of Property-Owning Borrower’s right, title and interest, whether now owned or hereafter acquired, in, to and under the trademark licenses, trademarks, rights in intellectual property, trade names, service marks and copyrights,
copyright licenses, patents, patent licenses or the license to use intellectual property such as computer software owned or licensed by Property-Owning Borrower or other proprietary business information relating to Property-Owning Borrower’s
policies, procedures, manuals and trade secrets. 
  
 “Interest Accrual Period” means, in connection with the calculation of interest accrued with respect to any Payment Date, the period commencing on and including the [eleventh (11th)] day in the month preceding the month in which such Payment Date occurs through and including the [tenth (10th)] day in the month in which such Payment Date occurs; provided, however, that the first Interest Accrual Period for the Loan shall commence on
the initial Advance Closing Date. 
  
 “Interest
Determination Date” means, in connection with the calculation of interest to accrue for any Interest Accrual Period, the second Business Day preceding the [eleventh (11th)] day of the month in which such Interest Accrual Period commences; provided, however, that the first Interest Determination Date for the Loan
shall be the second Business Day preceding the Closing Date. 
  
 “Inventory” means all of Property-Owning Borrower’s right, title and interest, whether now owned or hereafter acquired, in, to and under all “inventory” as defined in the UCC and shall include all Documents
representing the same. 
  
 “Investment Property”
means all of Property-Owning Borrower’s right, title and interest, whether now owned or hereafter acquired, in, to and under all “investment property” as defined in the UCC. 
  
 “Joinder” means, with respect to each Advance, the Joinder,
dated as of the applicable Advance Closing Date, executed by the related Property-Owning Borrower pursuant to which such Property-Owning Borrower joins in and assumes the obligations of the Borrower under the Loan on a joint and several basis, to
the Agent for the benefit of the Lenders, as same may thereafter from time to time be supplemented, amended, modified or extended by one or more agreements supplemental thereto. 
  

 11 

 “Land” has the meaning provided in the Mortgage. 
  
 “Leases” means all leases, subleases, lettings, occupancy
agreements, tenancies and licenses by Property-Owning Borrower as landlord of the Property or any part thereof now or hereafter entered into, and all amendments, extensions, renewals and guarantees thereof, and all security therefor. 
  
 “Lease Guarantor”, “Lease Guaranty” and
“Lease Insurance Policy” have the meanings set forth in Section 2.3(b)(x)(7). 
  
 “Leasing Commissions” means leasing commissions incurred by Property-Owning Borrower in connection with leasing the Property or any
portion thereof (including renewals of existing Leases). 
  
 “Leasing Costs/TI Costs Account” has the meaning set forth in Section 3.13(a). 
  
 “Leasing Costs/TI Costs Amount” means one-twelfth (1/12th) of the annual per square foot or per unit amount which, in connection with an
Advance applied to acquire Property, the Agent may require be deposited on subsequent Payment Dates into the Leasing Costs/TI Costs Account on a monthly basis to be applied to Leasing Commissions and TI Costs (taking into account, in connection with
CTL Properties only, any deposits to reserves or payments expressly required to be made by tenants under Credit Leases). 
  
 “Legal Requirements” means all governmental statutes, laws, rules, orders, regulations, ordinances, judgments, decrees and injunctions of
Governmental Authorities (including, without limitation, Environmental Laws) affecting Borrower or the Property or any part thereof or the construction, use, alteration or operation thereof, or any part thereof (whether now or hereafter enacted and
in force), and all permits, licenses and authorizations and regulations relating thereto, and all covenants, agreements, restrictions and encumbrances contained in any instruments, at any time in force affecting the Property or any part thereof
(including, without limitation, any which may (i) require repairs, modifications or alterations in or to the Property or any part thereof, or (ii) in any way limit the use and enjoyment thereof). 
  
 “Lender” has the meaning provided in the first paragraph of
this Agreement. 
  
 “Letter of Credit Rights”
means all of Property-Owning Borrower’s right, title and interest, whether now owned or hereafter acquired, in, to and under all “letter of credit rights” as defined in the UCC. 
  
 “LIBOR” means the rate per annum calculated as set forth
below: 
  
 (i) On each Interest Determination
Date, LIBOR will be determined on the basis of the offered rate for deposits of not less than U.S. $1,000,000 for a period of one month (the “Index Maturity”), commencing on such Interest Determination Date, which appears on Dow
Jones Market Service (formerly Telerate) Page 3750 as of 11:00 a.m., London time (or such other page as may replace the Dow Jones Market Service (formerly Telerate) Page on that service for the purposes of displaying London interbank offered rates
of major banks). If no such offered rate appears, LIBOR with respect to the relevant Interest Accrual Period will be determined as described in (ii) below. 
  

 12 

 (ii) With respect to an Interest Determination Date on which no such offered rate appears
on Dow Jones Market Service (formerly Telerate) Page 3750 as described in (i) above, LIBOR shall be the arithmetic mean, expressed as a percentage, of the offered rates for deposits in U.S. dollars for the Index Maturity which appears on the Reuters
Screen LIBO Page as of 11:00 a.m., London time, on such date. If, in turn, such rate is not displayed on the Reuters Screen LIBO Page at such time, then LIBOR for such date will be obtained from the preceding Business Day for which the Reuters
Screen LIBO Page displayed a rate for the Index Maturity. 
  
 (iii) If on any Interest Determination Date, Agent is required but unable to determine LIBOR in the manner provided in paragraphs (i) and (ii) above, LIBOR for the next Interest Accrual Period shall be determined from
such financial reporting service as Agent shall reasonably determine and use with respect to its other loan facilities on which interest is determined based on LIBOR. 
  
 All percentages resulting from any calculations of LIBOR referred to in this Agreement will be carried out to five decimal places and all
U.S. dollar amounts used in or resulting from such calculations will be rounded upwards to the nearest cent. 
  
 “Lien” means any mortgage, deed of trust, lien (statutory or other), pledge, hypothecation, assignment, security interest, or any other
encumbrance or charge on or affecting Borrower or the Property or any portion thereof, or any interest therein (including, without limitation, any conditional sale or other title retention agreement, any financing lease having substantially the same
economic effect as any of the foregoing, and mechanic’s, materialmen’s and other similar liens and encumbrances). 
  
 “Loan” and “Loan Amount” have the meanings set forth in the Recitals hereto. 
  
 “Loan Documents” means this Agreement, the Note, the Pledge
Agreements, the Environmental Indemnity Agreement, the Guaranty of Non-Recourse Obligations, the Memoranda of Negative Pledge, the Real Estate Security Documents, the Contract Assignments, the Manager’s Subordinations, the Joinders, any
Indemnification Agreement and all other agreements, instruments, certificates and documents delivered by or on behalf of Borrower or an Affiliate of Borrower to evidence or secure the Loan as same may be amended or modified from time to time.

  
 “Loss Proceeds” means Condemnation Proceeds
and/or Insurance Proceeds. 
  
 “Losses” has the
meaning set forth in Section 5.1(j). 
  
 “Management Agreement” means with respect to each Property, the related property management agreement entered into between the related Property-Owning Borrower and the related property Manager, or in such other form as may
be reasonably approved by the Agent, as such agreement may be amended, modified or supplemented and in effect from time to time. 
  
 “Manager” means with respect to each Property, the property manager for such Property pursuant to a property management agreement.

  
 “Manager’s Subordination” means, with
respect to each Property, the related Manager’s Consent and Subordination of Management Agreement, executed by the related property Manager, the related Property-Owning Borrower and the Agent, dated as of the applicable Advance Closing Date.

  

 13 

 “Material Adverse Effect” means a material adverse effect upon (i) the business
operations, properties, assets or condition (financial or otherwise) of Borrower, (ii) the ability of Borrower to perform, or of Agent to enforce, any of the Loan Documents or (iii) the aggregate value of the Property. 
  
 “Maturity Date” means the earlier of (a) the Payment Date in
August, 2006 or (b) such earlier date on which the entire Loan is required to be paid in full, by acceleration or otherwise under this Agreement or any of the other Loan Documents. 
  
 “Memoranda of Negative Pledge” means each such Memorandum of Negative Pledge, collectively. 
  
 “Memorandum of Negative Pledge” means, with respect to each
Property located in any state that does not impose mortgage recording taxes, the related Memorandum of Negative Pledge, dated as of the applicable Advance Closing Date, granted by the applicable Property-Owning Borrower to the Agent for the benefit
of the Lenders with respect to such Property, as same may thereafter from time to time be supplemented, amended, modified or extended by one or more agreements supplemental thereto. 
  
 “Money” means all of Borrower’s right, title and interest, whether now owned or hereafter acquired,
in, to and under (i) all “money” as defined in the UCC and (ii) all moneys, cash, or other items of legal tender generated from the use or operation of the Property. 
  
 “Monthly Statement” has the meaning set forth in Section 3.12(d). 
  
 “Mortgage” means, with respect to each Property, the related
first priority Mortgage or Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing, dated as of the applicable Advance Closing Date, granted by the applicable Property-Owning Borrower to or for the benefit of either
Agent or Deed of Trust Trustee for the benefit of Agent with respect to the such Property as security for the Loan, as same may thereafter from time to time be supplemented, amended, modified or extended by one or more agreements supplemental
thereto. 
  
 “Mortgage Recording Tax Escrow
Account” has the meaning set forth in Section 3.13(c). 
  
 “Multiemployer Plan” means a multiemployer plan defined as such in Section 3(37) of ERISA and which is covered by Title IV of ERISA (i) to which contributions have been, or were required to have been made by Borrower or any
ERISA Affiliate or (ii) with respect to which Borrower could reasonably be expected to incur liability. 
  
 “Net Proceeds” means either (x) the purchase price (at foreclosure or otherwise) actually received by Agent from a third party purchaser
with respect to the Collateral, as a result of the exercise by Agent of its rights, powers, privileges and other remedies after the occurrence of an Event of Default or (y) in the event that Agent (or its nominee) or a Lender is the purchaser at
foreclosure of the Collateral, the higher of (i) the amount of Agent’s or such Lender’s credit bid or (ii) such amount as shall be determined in accordance with applicable law, and in either case minus all reasonable third party, out of
pocket costs and expenses (including, without limitation, all attorneys’ fees and disbursements and any brokerage fees, if applicable) incurred by Agent (and its nominee, if applicable) or such Lender in connection with the exercise of such
remedies; provided, however, that such costs and expenses shall not be deducted to the extent such amounts previously have been added to the Indebtedness in accordance with the terms of the Loan Documents or applicable law. 

 

 14 

 “New Ground Lease” means, after the termination or expiration of the Ground Lease, any
new, replacement or substitute Ground Lease issued to or obtained by Agent or its designee with respect to or in place of the terminated Ground Lease, whether pursuant to any provision of the terminated Ground Lease or otherwise. 
  
 “Note” means the promissory note made by Borrower to initial
Lender pursuant to this Agreement, as such note may be modified, amended, supplemented or extended. 
  
 “Officer’s Certificate” means a certificate delivered to Agent by Borrower which is signed by an authorized officer of Borrower.

  
 “Operating Budget” means, with respect to any
Fiscal Year, the operating budget for the Property reflecting Borrower’s projections of Gross Revenues and Property Expenses for the Property for such Fiscal Year and on an annual and monthly basis and submitted by Borrower to Agent in
accordance with the provisions of Section 5.1(r)(vi). 
  
 “Organizational Agreements” means, individually or collectively, as applicable (i) the Limited Liability Company Agreement of Holding Company Borrower, dated as of July 16, 2003, and (ii) the comparable organizational or
constituent documentation for each Property-Owning Borrower, each as amended or restated from time to time. 
  
 “Other Borrowings” means, with respect to Borrower, without duplication (but not including the Indebtedness) (i) all indebtedness of
Borrower for borrowed money or for the deferred purchase price of property or services, (ii) all indebtedness of Borrower evidenced by a note, bond, debenture or similar instrument, (iii) the face amount of all letters of credit issued for the
account of Borrower and, without duplication, all unreimbursed amounts drawn thereunder, and obligations evidenced by bankers’ acceptances, (iv) all indebtedness of Borrower secured by a Lien on any property owned by Borrower (whether or not
such indebtedness has been assumed), (v) all Contingent Obligations of Borrower, (vi) liabilities and obligations for the payment of money relating to a capitalized lease obligation or sale/leaseback obligation, (vii) liabilities and obligations
representing the balance deferred and unpaid of the purchase price of any property or services, except those incurred in the ordinary course of Borrower’s business that would constitute ordinarily a trade payable to trade creditors, and (viii)
all payment obligations of Borrower under any interest rate protection agreement (including, without limitation, any interest rate swaps, caps, floors, collars or similar agreements) and similar agreements. 
  
 “Payment Date” has the meaning provided in Section
3.5(a). 
  
 “Payment Date Statement” has the
meaning provided in Section 3.12(d). 
  
 “Payment
Intangibles” means all of Property-Owning Borrower’s right, title and interest, whether now owned or hereafter acquired, in, to and under all “payment intangibles” as defined in the UCC. 
  
 “PBGC” means the Pension Benefit Guaranty Corporation
established under ERISA, or any successor thereto. 
  
 “Permits” means all licenses, permits, variances and certificates required by Legal Requirements to be obtained by Property-Owning Borrower and used in connection with the ownership, operation, use or occupancy of the
Property (including, without limitation, business licenses, state health department licenses, licenses to conduct business and all such other permits, licenses and rights, obtained from any Governmental Authority or private Person concerning
ownership, operation, use or occupancy of the Property). 
  

 15 

 “Permitted Encumbrances” means, with respect to the Property, collectively, 

 
 (i) the Lien created by the Mortgages, or any other Loan
Documents of record, 
  
 (ii) all Liens,
easements, restrictions, covenants and other matters disclosed on the Title Insurance Policy concerning the Property, 
  
 (iii) Liens, if any, for Impositions imposed by any Governmental Authority not yet delinquent or being contested in good faith and by
appropriate proceedings in accordance with the Mortgages, 
  
 (iv) mechanic’s or materialmen’s Liens, if any, being contested in good faith and by appropriate proceedings in accordance with the Mortgages, provided that no foreclosure has been commenced by the lien
claimant, 
  
 (v) rights of existing and future
tenants and residents as tenants only pursuant to Leases, and 
  
 (vi) Liens for public utilities, 
  
 which Liens and encumbrances referred to in clauses (i)-(vi) above do not materially and adversely affect (1) the ability of Borrower to pay in full the Principal Indebtedness and interest thereon in a timely manner or (2) the use of the
Property for the use currently being made thereof, the operation of the Property as currently being operated or the value of the Property. 
  
 “Permitted Investments” means any one or more of the following obligations or securities acquired at a purchase price of not greater than
par: 
  
 (i) obligations of, or obligations fully
guaranteed as to payment of principal and interest by, the United States or any agency or instrumentality thereof provided such obligations are backed by the full faith and credit of the United States of America; 
  
 (ii) obligations of the following United States of America
government sponsored agencies: Federal Home Loan Mortgage Corp. (debt obligations), the Farm Credit System (consolidated systemwide bonds and notes), the Federal Home Loan Banks (consolidated debt obligations), the Federal National Mortgage
Association (debt obligations), the Financing Corp. (debt obligations), and the Resolution Funding Corp. (debt obligations); 
  
 (iii) federal funds, unsecured certificates of deposit, time deposits, bankers’ acceptances and repurchase agreements with maturities
of not more than 365 days of any bank, the short-term obligations of which are rated in the highest short-term rating category by the Rating Agencies; 
  
 (iv) unsecured certificates of deposit, time deposits, federal funds or banker’s acceptances issued by any depository institution or
trust company incorporated under the laws of the United States or of any state thereof and subject to supervision and examination by federal and/or state banking authorities, which investments are fully insured by the Federal Deposit Insurance
Corp.; 
  

 16 

 (v) debt obligations with maturities of not more than 365 days and rated by the Rating
Agencies in its highest long-term unsecured rating category; 
  
 (vi) commercial paper (including both non-interest-bearing discount obligations and interest-bearing obligations payable on demand or on a specified date not more than one year after the date of issuance thereof) with
maturities of not more than 270 days and that is rated by the Rating Agencies in their highest short-term unsecured debt rating; 
  
 (vii) the Federated Prime Obligation Money Market Fund (the “Fund”) so long as the Fund is rated “AAAm” or
“AAAm-G” (or the equivalent) by the Rating Agencies; 
  
 (viii) any other demand, money market or time deposit, demand obligation or any other obligation, security or investment, which the Agent shall have approved in writing; 
  
 provided, however, that (A) the investments described in clauses (i) through
(viii) above must have a predetermined fixed dollar of principal due at maturity that cannot vary or change, (B) if such investments have a variable rate of interest, such interest rate must be tied to a single interest rate index plus a fixed
spread (if any) and must move proportionately with that index, and (C) such investments must not be subject to liquidation prior to their maturity or have an “r” highlighter affixed to its rating; and provided, further, that,
in the judgment of Agent, such instrument continues to qualify as a “cash flow investment” pursuant to Code Section 860G(a)(6) earning a passive return in the nature of interest and that no instrument or security shall be a Permitted
Investment if such instrument or security evidences (x) a right to receive only interest payments or (y) the right to receive principal and interest payments derived from an underlying investment at a yield to maturity in excess of 120% of the yield
to maturity at par of such underlying investment. 
  
 “Person” means any individual, corporation, limited liability company, partnership, joint venture, estate, trust, unincorporated association, any federal, state, county or municipal government or any bureau, department or
agency thereof and any fiduciary acting in such capacity on behalf of any of the foregoing. 
  
 “Personalty” means all right, title and interest of Property-Owning Borrower in and to all Equipment, Inventory, Accounts, General Intangibles, Instruments, Investment Property, Receivables, Pledged
Accounts, Deposit Accounts, Contracts and Intellectual Property and all other personal property as defined in the relevant UCC, now owned or hereafter acquired by Property-Owning Borrower and now or hereafter affixed to, placed upon, used in
connection with, arising from or otherwise related to the Property or which may be used in or relating to the planning, development, financing or operation of such Property, including, without limitation, furniture, furnishings, equipment,
machinery, money, insurance proceeds, accounts, contract rights, trademarks, goodwill, chattel paper, documents, trade names, licenses and/or franchise agreements, rights of Property-Owning Borrower under leases of fixtures or other personal
property or equipment, inventory, all refundable, returnable or reimbursable fees, deposits or other funds or evidences of credit or indebtedness deposited by or on behalf of Property-Owning Borrower with any governmental authorities, boards,
corporations, providers of utility services, public or private, including specifically, but without limitation, all refundable, returnable or reimbursable tap fees, utility deposits, commitment fees and development costs. 
  
 “Plan” means an employee benefit or other plan, other than a
Multiemployer Plan, that is covered by Title IV of ERISA or Section 302 of ERISA or Section 412 of the Code, and (i) was established or maintained by Borrower or any ERISA Affiliate during the five year period ended prior to the date of this
Agreement or to which Borrower or any ERISA Affiliate makes, is obligated to make or has, within the five year period ended prior to the date of this Agreement, been required to make contributions or (ii) with respect to which Borrower could
reasonably be expected to incur liability. 
  

 17 

 “Pledge Agreement (Holding Company Borrower)” means, with respect to Holding Company
Borrower, the Pledge Agreement from each of the members of Holding Company Borrower to Agent for the benefit of the Lenders, dated as of the Closing Date, as same may thereafter from time to time be supplemented, amended, modified or extended by one
or more agreements supplemental thereto. 
  
 “Pledge
Agreement (Property-Owning Borrower)” means with respect to each Property-Owning Borrower, the Pledge Agreement from the Holding Company Borrower to Agent for the benefit of the Lenders, dated as of the Closing Date, as same may thereafter
from time to time be supplemented, amended, modified or extended by one or more agreements supplemental thereto. 
  
 “Pledge Agreements” means the Pledge Agreement (Holding Company Borrower) and the Pledge Agreement (Property-Owning Borrower),
collectively. 
  
 “Pledged Accounts” means the
Collection Account and the Reserve Account and any successor accounts thereto. 
  
 “Policies” has the meaning provided in Section 5.1(x)(iii). 
  
 “Preliminary Due Diligence Package” means, with respect to any asset acquisition proposed to be financed with the proceeds of an Advance,
a summary memorandum outlining the proposed transaction, including potential transaction benefits and all material underwriting risks, all Underwriting Issues and all other characteristics of the proposed transaction that a reasonable lender would
consider material, together with the following due diligence information relating to such assets to be provided by Holding Company Borrower to Agent pursuant to this Agreement: 
  
 (i) the Collateral Information; 
  
 (ii) current rent roll, if applicable; 
  
 (iii) cash flow pro-forma, plus historical information, if available; 
  
 (iv) description of the Property; 
  
 (v) indicative debt service coverage ratios; 
  
 (vi) indicative loan-to-value ratio; 
  
 (vii) term sheet outlining the transaction generally;

  
 (viii) the submission to the Borrower’s
and the Guarantor’s credit committee; and 
  
 (ix) any exceptions to the representations and warranties set forth in Article IV to this Agreement. 
  
 “Principal Indebtedness” means the aggregate principal amount of the Advances outstanding as adjusted by each increase (including for
advances made by Lenders to protect the Collateral), or decrease in such principal amount of the Loan outstanding, whether as a result of prepayment or otherwise, from time to time. 
  

 18 

 “Proceeds” shall have the meaning given in the UCC and, in any event, shall include,
without limitation, all of Property-Owning Borrower’s right, title and interest in and to proceeds, product, offspring, rents, profits or receipts, in whatever form, arising from the Collateral. 
  
 “Property” means the CTL Property or the Conduit CMBS
Property acquired with the proceeds of each Advance. 
  
 “Property Expenses” means, with respect to the Property, the following costs and expenses but only, in the case of costs and expenses in respect of goods and services, to the extent that they (x) are paid to Persons who are
generally in the business of providing such goods and services, (y) are customary for the types of goods or services provided in the geographical area in which such goods or services are provided and (z) do not constitute Capital Improvement Costs:

  
 (i) Impositions; 
  
 (ii) insurance premiums for policies of insurance required
to be maintained by Borrower with respect to the Property pursuant to this Agreement or the other Loan Documents; 
  
 (iii) the cost of all electricity, oil, gas, water, steam, heat, ventilation, air conditioning and any other energy, utility or similar
item and overtime services with respect to the Property; 
  
 (iv) payments required under service contracts (including, without limitation, service contracts for heating, ventilation and air conditioning systems, elevators, landscape maintenance, pest extermination, security,
furniture, trash removal, answering service and credit checks); 
  
 (v) wages, benefits, payroll taxes, uniforms, the cost of cleaning supplies, insurance costs and all related expenses for maintenance personnel for the Property (including, without limitation, housekeeping employees,
porters and general repair, maintenance and security employees), whether hired by Borrower, Manager, Collateral Agent or any other Person; 
  
 (vi) costs required in connection with the enforcement of any Lease (including, without limitation, reasonable attorneys’ fees,
charges for lock changes and storage and moving expenses for furniture, fixtures and equipment and expenses to relet the premises); 
  
 (vii) advertising and rent-up expenses (including, without limitation, leasing services, tenant rent concessions, promotions for existing
and prospective tenants, banners, signs and brokerage commissions); 
  
 (viii) out-of-pocket cleaning, maintenance and repair expenses; 
  
 (ix) any expense the total cost of which is passed through to tenants pursuant to executed Leases; 
  
 (x) legal, accounting, auditing and other professional fees
and expenses incurred in connection with the ownership, leasing and operation of the Property (including, without limitation, collection costs and expenses); 
  

(xi) permits, licenses and registration fees and costs; 
  
 (xii) any expense necessary in order to prevent a breach under a Lease; 
  

 19 

 (xiii) any expense necessary in order to prevent or cure a violation of any Legal
Requirement (including Environmental Law), regulation, code or ordinance; 
  
 (xiv) costs and expenses of any appraisals, valuations, surveys, inspections, environmental assessments or market studies; 
  
 (xv) costs and expenses of security and security systems provided to and/or installed and maintained with respect to the Property;

  
 (xvi) costs of title, UCC, litigation and
other searches and costs of maintaining the Lien of the Mortgage thereon and the security interest in any related Collateral; 
  
 (xvii) fees and expenses of property managers contracted with by Borrower to perform management, administrative, payroll or other services
in connection with the operation of the Property (including, without limitation, the fees and expenses owed to Manager under the Management Agreement); 
  
 (xviii) any other costs and expenses contemplated by the Operating Budget and customarily incurred in connection with operating properties
similar in type and character to the Property (including rent for any management office); 
  
 (xix) any cost or expense to comply with the requirements of any Leases, whether expended by the Borrower, the Manager, the Collateral
Agent or any other Person. 
  
 (xx) any other
category of property expense that is customary for a property of the type and size as the Property and is reasonably approved by Agent on behalf of the Lenders. 
  

“Property-Owning Borrower” has the meaning provided in the first paragraph of this Agreement. 
  
 “Quarterly Statement” has the meaning provided in Section
5.1(r)(vii). 
  
 “Real Estate Closing” means,
with respect to any Property, the closing that shall be deemed to have occurred when (1) the Real Estate Security Documents applicable to such Property shall have been filed of record in the appropriate filing office in the jurisdiction in which
such Property is located or irrevocably delivered to the Title Agent for such recordation and all mortgage recording taxes incurred or to be incurred in connection therewith shall have been paid by the Borrower and (2) the Title Insurance Policy
shall have been purchased by the Lender and paid for by the Borrower, as evidenced by the delivery of a marked-up Title Insurance Policy. 
  
 “Real Estate Security Documents” means, with respect to each Advance for the acquisition of Property, the related Mortgage(s) and the
related Assignment(s) of Rents and Leases. 
  
 “Real
Estate Taxes Escrow Account” has the meaning provided in Section 3.13(b). 
  
 “Receivables” means all of Property-Owning Borrower’s right, title and interest, whether now owned or hereafter acquired, in, to and under (i) any Accounts, Chattel Paper, Instruments, Payment
Intangibles, Letter of Credit Rights, Documents, insurance policies, drafts, bills of exchange, trade acceptances, notes or other indebtedness owing to Property-Owning Borrower from whatever source arising, (ii) to the extent not otherwise included
above, (a) all income, Rents, issues, profits, revenues, deposits and other benefits from the Property and (b) all receivables and other obligations now existing or 
  

 20 

 hereafter arising, or created out of the sale, lease, sublease, license, concession or other grant of the right of the
use and occupancy of property or rendering of services by Property-Owning Borrower or any operator or manager of the Property or other commercial space located at the Property or acquired from others (including, without limiting the generality of
the foregoing, from rental of space, halls, stores, and offices, and deposits securing reservations of such space, exhibit or sales space of every kind, license, lease, sublease and concession fees and rentals, health club membership fees, food and
beverage wholesale and retail sales of merchandise, service charges, vending machine sales and proceeds, if any, from business interruption or other loss of income insurance, (iii) all of the books and records (whether in tangible, electronic or
other form) now or hereafter maintained by or on behalf of Mortgagor in connection with the operation of the Property or in connection with any of the foregoing and (iv) all Supporting Obligations and all liens and security interests securing any of
the foregoing and all other rights, privileges and remedies relating to any of the foregoing. 
  
 “Release” means any active or passive release, spill, emission, leaking, pumping, injection, deposit, disposal, discharge, dispersal, leaching or migration into the indoor or outdoor environment
(including, without limitation, the movement of Hazardous Substances through ambient air, soil, surface water, ground water, wetlands, land or subsurface strata). 
  
 “Release Condition” means, with respect to any proposed Capital Event of a Property, the condition that
shall be satisfied if the Agent determines in its sole discretion that such proposed Capital Event shall not have a Material Adverse Effect and that following such Capital Event no mandatory principal payments are due and payable pursuant to
Section 3.7(c)(i). 
  
 “Remedial Work” has
the meaning set forth in Section 5.1(d)(i). 
  
 “Rents” means all income, rents, issues, profits, revenues (including all oil and gas or other mineral royalties and bonuses), deposits (other than utility and security deposits) and other benefits from the Property.

  
 “Replacement Reserve Account” has the meaning
set forth in Section 3.13(a). 
  
 “Replacement
Reserve Amount” means one-twelfth (1/12th) of the annual per square foot or per unit amount which, in connection with an Advance applied to acquire Property, the Agent, may require be deposited on subsequent Payment Dates into the
Replacement Reserve Account on a monthly basis to be applied to replacement reserve items (taking into account, in connection with CTL Properties only, any deposits to reserves or payments expressly required to be made by tenants under Credit
Leases). 
  
 “Reserve Account” means the Deferred
Maintenance Escrow Account, the Replacement Reserve Account, the Leasing Costs/TI Costs Account, the Real Estate Taxes Escrow Account, the Insurance Escrow Account, and the Mortgage Recording Tax Escrow Account, collectively, and any successor
accounts to any of the foregoing. 
  
 “Single-Purpose
Entity” means a Person, other than an individual, which (i) is formed or organized under the laws of a state of the United States or the District of Columbia solely for the purpose of acquiring and directly (or in the case of the Holding
Company Borrower, indirectly) holding an ownership interest in the Property, (ii) does not engage in any business unrelated to the Property, (iii) does not have any assets other than those related to its interest in the Property (or in the case of
the Holding Company Borrower, its interest in the Property Owing Borrowers) or any indebtedness other than as permitted by this Agreement, the Mortgages or the other Loan Documents, (iv) has its own separate books and records and has its own
accounts, in each case which are separate and apart from the books and records and accounts of any other Person, (v) is subject to all of the limitations on powers set 
  

 21 

 forth in the Organizational Agreement of Holding Company Borrower and the Managing Member as of the Closing Date, (vi)
holds itself out as being a Person separate and apart from any other Person and (vii) has, or is controlled, directly or indirectly, by a Person that has, at least one independent director that is not an employee, officer, director, or paid
consultant of any Affiliate of such Person or of any principal or officer of such Person. 
  
 “SNDA” has the meaning set forth in Section 2.3(b)(x)(7). 
  
 “Supplemental Due Diligence List” shall mean, with respect to any assets proposed to be acquired with the proceeds of an Advance,
information or deliveries concerning the assets that Agent shall reasonably request in addition to the Preliminary Due Diligence Package. 
  
 “Supporting Obligations” means all of Property-Owning Borrower’s right, title and interest, whether now owned or hereafter acquired,
in, to and under (i) all “supporting obligations” as defined in the UCC and (ii) any other guarantee, letter of credit, secondary obligation, right or privilege that supports or pertains to any of the Property. 
  
 “Survey” means an ALTA/ACSM survey of the Property prepared
by a registered Independent surveyor, in form and content satisfactory to the Agent and the Borrower. 
  
 “Taking” means a taking or voluntary conveyance during the term hereof of all or part of the Property, or any interest therein or right
accruing thereto or use thereof, as the result of, or in settlement of, any condemnation or other eminent domain proceeding by any Governmental Authority affecting the Property or any portion thereof whether or not the same shall have actually been
commenced. 
  
 “TI Costs” means tenant
improvement costs and allowances incurred by Borrower in connection with renewing existing Leases or executing new Leases for space located in the Property. 
  
 “Title Agent” means a title company proposed by Borrower and reasonably acceptable to the Agent. 
  
 “Title Insurance Policy” means a mortgagee’s title
insurance policy or policies (i) issued by Chicago Title Insurance Company or one or more title companies reasonably satisfactory to Agent which policy or policies shall be in form ALTA 1992 (with waiver of arbitration provisions as provided for by
the applicable and respective state’s title policy endorsement) (with reinsurance as Agent may require reasonably satisfactory to Agent and at amounts reasonably acceptable to the primary insurer), naming Agent as the insured party for benefit
of the Lenders, (ii) insuring the Mortgage as being a first and prior lien upon the Property, (iii) showing no encumbrances against the Property (whether junior or superior to the Mortgage) which are not acceptable to Agent other than Permitted
Encumbrances, (iv) in an amount acceptable to Agent (but not more than the Loan Amount), and (v) otherwise in form and content reasonably acceptable to Agent. Such Title Insurance Policy shall include the following endorsements or affirmative
coverages in form and substance reasonably acceptable to Agent, to the extent legally permitted and available in the jurisdiction in which the Land is located: variable rate endorsement; survey endorsement; comprehensive endorsement; first loss,
last dollar and tie-in endorsement; access coverage; separate tax parcel coverage; contiguity (if applicable) coverage; and such other endorsements as Agent shall reasonably require in order to provide insurance against specific risks identified by
Agent in connection with the Property. 
  
 “Transaction” means the transactions contemplated by the Loan Documents. 
  

 22 

 “Transaction Costs” means all costs and expenses paid or payable by Borrower relating to
the Transaction (including, without limitation, reasonable transfer, mortgage and recording fees and costs, appraisal fees, legal fees and accounting fees and the costs and expenses described in Section 8.23). 
  
 “Transfer” means the conveyance, assignment, sale,
mortgaging, encumbrance (other than a Permitted Encumbrance), pledging, hypothecation, granting of a security interest in, granting of options with respect to, or other disposition of (directly or indirectly, voluntarily or involuntarily, by
operation of law or otherwise, and whether or not for consideration or of record) all or any portion of any legal or beneficial interest (a) in all or any portion of the Property; or (b) in the stock, partnership interests, membership interests or
other ownership interests in Borrower and shall also include, without limitation to the foregoing, the following: an installment sales agreement wherein Borrower agrees to sell the Property or any part thereof or any interest therein for a price to
be paid in installments; a sale, assignment or other transfer of, or the grant of a security interest in, Borrower’s right, title and interest in and to any Leases or any Rent; and any instrument subjecting the Property to a condominium regime
or transferring ownership to a cooperative corporation. 
  
 “Triple Net Lease” shall mean a lease under which the tenant pays for all or substantially all real estate property taxes, property insurance, and operating expenses of the Property. 
  
 “UCC” means with respect to any Collateral, the Uniform
Commercial Code as in effect from time to time in the State of New York; provided, that if by reason of mandatory provisions of law, the perfection or the effect of perfection or non-perfection or priority of the security interest in any item
or portion of the Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of New York, “UCC” shall mean the Uniform Commercial Code as in effect in such other jurisdiction for purposes of
the provisions hereof relating to such perfection or effect of perfection or non-perfection or priority. Wherever this agreement refers to terms as defined in the UCC, if such term is defined in more than one Article of the UCC, the definition in
Article 9 of the UCC shall control. 
  
 “Underwriting
Issues” shall mean, with respect to any assets as to which Holding Company Borrower intends to request an Advance, all material information that has come to Holding Company Borrower’s attention that, based on the making of reasonable
inquiries and the exercise of reasonable care and diligence under the circumstances, would be considered a materially “negative” factor (either separately or in the aggregate with other information), or a material defect in documentation
or closing deliveries, to a reasonable institutional mortgage lender in determining whether to finance the assets in question. 
  
 “Use” means, with respect to any Hazardous Substance, the generation, manufacture, processing, distribution, handling, use, treatment,
recycling or storage of such Hazardous Substance or transportation of such Hazardous Substance in connection with or affecting Borrower or the Property. 
  
 “Welfare Plan” means an employee welfare benefit plan as defined in Section 3(1) of ERISA established or maintained by Borrower or any
ERISA Affiliate or with respect to which Borrower or any ERISA Affiliate has an obligation to make contributions and covers any current or former employee of Borrower or any ERISA Affiliate. 
  

 23 

 ARTICLE II. 
 CONDITIONS PRECEDENT 
  
 Section 2.1. Conditions Precedent to Closing. The obligation of the Agent to make the Loan is subject to the satisfaction by Borrower (and Guarantor, where applicable) of the following conditions no later than the Closing Date:

  
 (a) Loan Agreement. Holding Company Borrower,
Collateral Agent, and Agent shall have executed and delivered this Agreement. 
  
 (b) Note. Holding Company Borrower shall have executed and delivered to Agent the Note. 
  
 (c) Environmental Indemnity Agreement; Pledge Agreements; Guaranty of Non-Recourse Obligations; Financing Statements; Escrow Agreement. Holding
Company Borrower and First States Group, L.P. shall have executed and delivered the Environmental Indemnity Agreement to the Agent for benefit of the Lenders. Each of the members of Holding Company Borrower shall have executed and delivered the
Pledge Agreement (Holding Company Borrower) to the Agent for benefit of the Lenders. Guarantor shall have executed and delivered the Guaranty of Non-Recourse Obligations. Borrower shall have cooperated with the Agent with respect to all financing
statements required to be filed in order to perfect Agent’s security interest in the Collateral. Title Agent, Holding Company Borrower and the Agent shall have executed and delivered the Escrow Agreement. 
  
 (d) Opinions of Counsel. The initial Lender and Collateral Agent shall
have received from counsel to Borrower, the Managing Member and the Guarantor, legal opinions in form and substance acceptable to Agent, with respect to corporate matters and with respect to substantive non-consolidation of the Guarantor and Holding
Company Borrower in the event of the bankruptcy of the Guarantor. Such legal opinions shall be addressed to Agent and its successors and assigns, dated the Closing Date, and in form and substance reasonably satisfactory to Agent and its counsel.

  
 (e) Organizational Documents. The initial Lender shall
have received with respect to each of Holding Company Borrower and the Guarantor its certificate of formation or certificate of incorporation, as applicable, as amended, modified or supplemented to the Closing Date, as filed with the Secretary of
State in the jurisdiction of organization and in effect on the Closing Date and certified to be true, correct and complete by the appropriate Secretary of State as of a date not more than twenty (20) days prior to the Closing Date, together with, if
available, a good standing certificate from such Secretary of State and, for Holding Company Borrower only, a good standing certificate from the Secretaries of State (or the equivalent thereof) of each other State in which Holding Company Borrower
is required to be qualified to transact business. 
  
 (f)
Certified Resolutions, etc. The initial Lender shall have received a certificate of each of Holding Company Borrower and the Guarantor dated the Closing Date, certifying (i) the names and true signatures of its incumbent officers authorized
to sign the Loan Documents to which Holding Company Borrower, the Managing Member or the Guarantor is a party, (ii) the Organizational Agreement of the Holding Company Borrower as in effect on the Closing Date, (iii) the resolutions of each of the
Holding Company Borrower, the Managing Member and the Guarantor, approving and authorizing the execution, delivery and performance of the Loan Documents to which it is a party, and (iv) that there have been no changes in any Organizational Agreement
since the date of execution or preparation thereof. 
  
 (g)
Additional Matters. The Agent shall have received such other certificates, opinions, documents and instruments relating to the Loan as may have been reasonably requested by Agent. All corporate and other organizational proceedings, all other
documents (including, without limitation, all documents referred to herein and not appearing as exhibits hereto) and all legal matters in connection with the Loan shall be reasonably satisfactory in form and substance to Agent. 
  
 (h) Advisory Fee; Transaction Costs. Borrower shall have paid the
Advisory Fee and all Transaction Costs for which bills have been submitted in accordance with the provisions of Section 8.23. 
  

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 (i) No Default or Event of Default. No Default or Event of Default shall have occurred and be
continuing on the Closing Date. 
  
 (j) No Injunction. No
law or regulation shall have been adopted, no order, judgment or decree of any Governmental Authority shall have been issued, and no litigation shall be pending or threatened, which in the good faith judgment of the initial Lender would enjoin,
prohibit or restrain, or impose or result in the imposition of any material adverse condition upon, the making or repayment of the Loan or the consummation of the Transaction. 
  
 (k) Representations and Warranties. The representations and warranties herein and in the other Loan Documents shall
be true and correct in all material respects on the Closing Date. 
  
 (l) Filings, Registrations, Recording. Any documents (including, without limitation, financing statements) required to be filed, registered or recorded in order to create, in favor of the Agent, a perfected, first-priority security
interest in the Collateral, subject to no Liens other than Permitted Encumbrances, shall have been properly prepared and executed for filing, registration or recording in each office in each jurisdiction in which such filings, registrations and
recordations are required to perfect such first-priority security interest. 
  
 (m) Consents, Licenses, Approvals, etc. The Agent shall have received copies certified by the Borrower of all consents, licenses and approvals, if any, required in connection with the execution, delivery and
performance by the Borrower of, and the validity and enforceability of, the Loan Documents, which consents, licenses and approvals shall be in full force and effect. 
  
 (n) Collection Account and Reserve Account. The Collection Account and Reserve Account shall have been established
with the Collateral Agent, and the terms of all documentation relating to such accounts shall be in accordance with the requirements of the Loan Documents and shall be satisfactory to the Agent in form and substance and the Holding Company Borrower
shall provide evidence of same, including any agreements with respect thereto. 
  
 (o) Other Documents. The Agent shall have received such other documents as the Agent or its counsel may reasonably request. 
  
 Section 2.2. Execution and Delivery of Agreement. The execution and delivery of this Agreement by each party to this
Agreement shall be deemed to constitute the satisfaction or waiver of the conditions set forth in Section 2.1. 
  
 Section 2.3. Advance Procedure 
  
 (a) Preliminary Approval. Holding Company Borrower shall give Agent written notice of each proposed Advance and Agent shall inform Holding Company
Borrower of its determination with respect to any assets proposed to be acquired by Borrower solely in accordance with the procedure set forth below. Agent shall have the right to review all assets proposed to be financed by Agent with the proceeds
of an Advance and to conduct its own due diligence investigation of such assets as Agent reasonably determines. Agent shall be entitled to make a determination, in the exercise of its good faith business judgment, that it shall or shall not finance
any or all of the assets proposed to be financed by Agent with the proceeds of an Advance. 
  
 (i) Holding Company Borrower may, from time to time, submit to Agent a Preliminary Due Diligence Package for Agent’s review and
approval in order to make an Advance with respect to any Property that Holding Company Borrower proposes to cause a Property-Owning Borrower to acquire and finance under this Agreement. 
  

 25 

 (ii) Upon Agent’s receipt of a complete Preliminary Due Diligence Package, Agent,
within five (5) Business Days, shall have the right to request, in Agent’s good faith business judgment, additional diligence materials and deliveries that Agent shall specify on a Supplemental Due Diligence List. Upon Agent’s receipt of
all of the Diligence Materials or Agent’s waiver thereof, Agent, within seven (7) Business Days shall either (i) notify Holding Company Borrower (x) that it has obtained internal credit approval; (y) of the Advance Rate, and (z) of the Capital
Markets Execution for the assets or (ii) deny, in Agent’s sole and absolute discretion, the request for an Advance. Agent’s failure to respond to Holding Company Borrower within seven (7) Business Days shall be deemed to be a denial of
Holding Company Borrower’s request for an Advance, unless Agent and Holding Company Borrower have agreed otherwise in writing. 
  
 (b) Final Approval. Upon Agent’s notification to Holding Company Borrower of the Advance Rate and the Capital Markets Execution for any
assets, Holding Company Borrower shall, if Holding Company Borrower desires to obtain an Advance with respect to such assets, satisfy the conditions set forth below (in addition to satisfying the conditions precedent to obtaining each Advance, as
set forth in Section 2.4 of this Agreement) as a condition precedent to Agent’s approval of such assets as Property, all in a manner reasonably satisfactory to Agent and pursuant to documentation reasonably satisfactory to Agent:

  
 (i) Survey; Appraisal. Agent shall
have received the Survey and the Appraisal with respect to the Property, which shall be in form and substance reasonably satisfactory to Agent. 
  
 (ii) Engineering Report. Agent shall have received the Engineering Report with respect to the Property prepared by the Engineer,
which Engineering Report shall be reasonably acceptable to Agent. 
  
 (iii) Environmental Matters. An Environmental Report prepared by an Environmental Auditor with respect to the Property shall have been made available to the Agent, which Environmental Report shall be reasonably
acceptable to Agent. 
  
 (iv) Property
Information. Agent shall have received reasonably acceptable information relating to the Property, which shall include the following, to the extent reasonably available: 
  
 (1) operating statements for the current year (including actual to date information, an annual budget and
trailing twelve month data in hard copy and on diskette) and for the immediately preceding year (including tenant improvements costs, leasing commissions, capital reserves, major repairs, replacement items and occupancy rates in hard copy and on
diskette); 
  
 (2) copies of Leases with respect
to the tenants of the Property, a copy of the standard lease form, if any, and tenant lease abstracts; 
  
 (3) current property rent roll data on a tenant by tenant basis in hard copy; and 
  

 26 

 (4) current real estate tax bills (or a certification of current tax amounts evidenced in
the owner’s title insurance policy). 
  
 (v)
Pro-Forma Financial Statement; Operating Budget. Agent shall have received (i) the initial pro forma financial statement and Operating Budget for the Property for the following twelve months (including on an annual and monthly basis a
break-down of projected Gross Revenues, Property Expenses, Capital Improvement Costs (including Leasing Commissions and TI Costs), replacement reserve costs and average occupancy level (expressed as a percentage)), (ii) a financial statement that
forecasts projected revenues and operating expenses for not less than three years (including the assumptions used in such forecast), and (iii) any local market study and/or research and demographics report prepared for Borrower. 
  
 (vi) Site Inspection. Borrower shall have provided to
Agent the opportunity to perform, or cause to be performed on its behalf, an on-site due diligence review of the Property which inspection is satisfactory to Agent in its sole discretion. 
  
 (vii) Insurance. Agent shall have received
certificates of insurance demonstrating insurance coverage in respect of the Property of types, in amounts, with insurers and otherwise in compliance with the terms, provisions and conditions set forth in this Agreement. Such certificates shall
indicate that Agent is a named additional insured and shall contain a loss payee endorsement in favor of Agent with respect to the property policies required to be maintained under this Agreement. 
  
 (viii) Lien Search Reports. To the extent not covered
by the materials delivered by the title insurance company in connection with the title commitment, Agent shall have received satisfactory reports of tax lien and judgment searches and title updates conducted by the title companies or search firms
acceptable to the Agent with respect to the Property, such searches to be conducted in each of the locations required by Agent. 
  
 (ix) Consents, Licenses, Approvals, etc. Agent shall have received copies of all consents, licenses and approvals, if any, required
in connection with the execution, delivery and performance by Borrower and Collateral Agent, and the validity and enforceability, of the Loan Documents, and such consents, licenses and approvals shall be in full force and effect. 
  
 (x) Certificates of Occupancy, Zoning Reports. Agent
shall have received copies of certificates of occupancy issued by the appropriate Governmental Authority of the jurisdiction in which the Property is located reflecting, and consistent with, the use of the Property as of the Advance Closing Date and
evidence that the Property is in compliance with all applicable zoning laws, rules and regulations (which items may be satisfied through the delivery of a report from The Planning and Zoning Resource Corporation with respect to the Property).

  
 (xi) Additional Real Estate Matters.
Agent shall have received such other real estate related certificates and documentation relating to the Property as Agent may have reasonably requested. Such documentation shall include the following as requested by Agent and to the extent
reasonably available: 
  
 (1) a certified copy of
the purchase and sale agreement (with exhibits) for the Property; 
  

 27 

 (2) estoppel certificates in form and substance reasonably acceptable to Agent in respect
of such percentage of the rentable square footage rented to commercial tenants as shall be reasonably acceptable to Agent; 
  
 (3) graphics (including interior and exterior photographs, rental brochures and a competitive properties map) as required by Agent;

  
 (4) with respect to each CTL Property:

  
 (A) at least one signed copy of the Credit
Lease, 
  
 (B) at least one signed copy of each
amendment, modification, assignment, and assumption of the Credit Lease, 
  
 (C) at least one signed copy of the guaranty of a Credit Lease (a “Lease Guaranty”), if any, 
  
 (D) a copy of the opinion of counsel for the Credit Lease and the Lease Guaranty, if any, 
  
 (E) a copy of evidence of formation and authority for the
tenant and any Lease Guarantor, if any, 
  
 (F)
a copy of the “Lease Enhancement Policy” or “Extended Amortization Policy” or “residual value insurance policy” (the “Lease Insurance Policy”), if any, 
  
 (G) an estoppel certificate dated no earlier than 90 days
before the date of delivery, addressed to Holding Company Borrower and Holding Company Borrower’s successors and assigns, executed by the tenant and the guarantor under any Lease Guaranty (the “Lease Guarantor”), 
  
 (H) a subordination, nondisturbance, and attornment
agreement between the tenant and Property-Owning Borrower confirming the continuation of the Credit Lease after any foreclosure under the Loan (the “SNDA”), 
  
 (I) an original assignment of the SNDA from Property-Owning Borrower in blank, in recordable form if the
SNDA was in recordable form, and 
  
 (J) a UCC-1
financing statement relating to the assignment to Agent of the Lease Guaranty, the SNDA, and any claims under the Lease Insurance Policy; and 
  
 (5) with respect to each Ground Lease: 
  
 (A) (a) original ground lessor’s estoppel certificate; (b) original fully executed counterpart or a certified copy of the Ground
Lease and all amendments referred to in “a”; (c) copy of memorandum of lease, with recording information; (d) original of any separate agreement, if any, between the 
  

 28 

 
ground lessor and Property-Owning Borrower; (e) copy of an opinion of counsel for ground lessor, if any such opinion was obtained; and (f) copy of recorded
subordination agreement from any fee mortgagee of record at the time item “c” was recorded. 
  
 (xii) Title Commitment. Agent shall have received the title commitment for the Property, which shall be reasonably acceptable to
the Agent. 
  
 Within five (5) Business Days of Holding Company Borrower’s
satisfaction of all of the conditions enumerated in clauses (i) through (xii) above, Agent shall either (i) if the asset proposed to be acquired with the proceeds of the Advance are not reasonably satisfactory in form and substance to Agent, notify
Holding Company Borrower that Agent has not approved the asset as Property or (ii) notify Holding Company Borrower in writing that Agent has approved the asset as Property (including in such notification (x) the related deposit required to be made
to the Deferred Maintenance Escrow Account and the Mortgage Recording Tax Escrow Account out of the proceeds of the Advance, if any, (y) the Replacement Reserve Amount, if any, and (z) the Leasing Costs/TI Costs Amount, if any). Agent’s failure
to respond to Holding Company Borrower within five (5) Business Days shall be deemed to be a denial of Holding Company Borrower’s request that Agent approve the asset, unless Agent and Holding Company Borrower have agreed otherwise in writing.

  
 Section 2.4. Initial and Subsequent Advances. The
making of each Advance to Borrower on any Business Day is subject to the following further conditions precedent, both immediately prior to the making of such Advance and also after giving effect thereto and to the intended use thereof: 

 
 (a) the Escrow Agreement, together with any amendments or
modifications thereto reasonably required in Agent’s discretion, shall be in full force and effect; 
  
 (b) no Default or Event of Default shall have occurred and be continuing; 
  
 (c) the representations and warranties made by Borrower in Article IV hereof, and in each of the other Loan
Documents, shall be true and correct on and as of the date of the making of such Advance with the same force and effect as if made on and as of such date (or, if any such representation or warranty is expressly stated to have been made as of a
specific date, as of such specific date); 
  
 (d)
the aggregate outstanding principal amount of the Advances shall not exceed the maximum amount permitted at such time under Section 3.7 hereof; 
  
 (e) the Agent shall have completed its due diligence review of the Property being acquired with the proceeds of such Advance and such
other documents, records, agreements, instruments or information relating to the Property as the Lender in its reasonable discretion deems appropriate to review and such review shall be satisfactory to the Lender in its reasonable discretion;

  
 (f) the Lender shall have received the
following Property-related Loan documents: 
  
 (i) Real Estate Security Documents; Memorandum of Negative Pledge. Property-Owning Borrower shall have executed and delivered to Title Agent the Real Estate Security Documents and the Memorandum of Negative Pledge with respect to the
Property with a direction letter to record the Memorandum of Negative Pledge; 
  

 29 

 (ii) Financing Statements. Borrower shall have cooperated with Agent in the
preparation of all financing statements required by Agent pursuant hereto and such financing statements shall have been irrevocably delivered to the Title Agent; 
  
 (iii) Management Agreement and Manager’s Subordination. With respect to the Property, Agent
shall have received the executed Management Agreement and the Manager and Property-Owning Borrower shall have executed and delivered the Manager’s Subordination to Agent; 
  
 (iv) Contract Assignment. With respect to the Property, Property-Owning Borrower shall have executed
and delivered to Agent a Contract Assignment; 
  
 (v) Organizational Agreement; Joinder. The Holding Company Borrower shall have delivered to the Agent the Organizational Agreement for the Property-Owning Borrower that will own such Property, which shall be in form and substance
acceptable to the Agent and such Property-Owning Borrower shall have executed and delivered to Agent a Joinder; 
  
 (vi) Pledge Agreement. The Holding Company Borrower shall have executed and delivered to the Agent a supplement to each of the
Pledge Agreement (Property-Owning Borrower) and the UCC insurance policy confirming that the Agent has a perfected first priority security interest in the related ownership interests pledged as part of the Collateral; 
  
 (vii) UCC Insurance Policy. As to any Advance (or
series of Advances being made on any single Advance Closing Date) in an aggregate amount of not less than $25,000,000, the Borrower shall have cooperated with the Agent to cause the issuance by a title company acceptable to the Agent of a UCC
insurance policy with respect to the ownership interests pledged to the Agent under and pursuant to the Pledge Agreements in an amount not less than the aggregate amount of such Advance or Advances and the Borrower shall have paid all costs and
expenses incurred in connection therewith. 
  
 (viii) Opinions of Counsel. Agent shall have received from counsel to any new Property-Owning Borrower joining this Agreement on such Advance Closing Date its legal opinion in form and substance satisfactory to Agent, as to corporate
matters. The legal opinions will be addressed to Agent and Lenders and their successors and assigns, dated the Advance Closing Date, and in form and substance reasonably satisfactory to Agent and its counsel; and 
  
 (ix) Closing Statement. The Agent and Borrower shall
have agreed upon a detailed closing statement from Borrower in a form reasonably acceptable to the Agent, which includes a complete description of Borrower’s sources and uses of funds on the Closing Date; and 
  
 (x) Indemnification Agreement. To the extent the
Borrower has not delivered any of the third party due diligence items set forth in Section 2.3(b)(i)–(iii), (v)-(x), and (xii) above with respect to a proposed asset and the Agent has nonetheless approved the asset as a Property
on the condition that First States Group, L.P. delivers an Indemnification Agreement, the Agent shall have received from First States Group, L.P. an Indemnification Agreement, in a form reasonably acceptable to the Agent. 
  

 30 

 (g) Borrower shall have paid all Transaction Costs for which bills have been submitted
and have not been previously paid. 
  
 ARTICLE III.

 GENERAL TERMS 
  
 Section 3.1. The Loan. 
  
 (a) Subject to the terms and conditions of this Agreement, the Lenders shall make Advances to Borrower from the initial Advance Closing Date to but
excluding the Maturity Date in an aggregate principal amount at any one time outstanding up to the Loan Amount. The proceeds of the Loan shall be used solely for the purposes identified in Section 3.2 hereof. On each Advance Closing Date,
upon the satisfaction of the conditions set forth in Section 3.3 and 3.4, the Lenders shall initiate a wire or other transfer of immediately available funds to an account designated by Borrower in an amount equal to (x) the related
Advance Rate, less (y) the sum of (i) the reasonable out-of-pocket expenses incurred by Agent in connection with the origination and funding of the Advance, (ii) the reasonable fees and expenses of Agent’s counsel and (iii) the amount, if any,
reasonably required by the Agent in writing to be deposited in the Deferred Maintenance Escrow Account, the Real Estate Taxes Escrow Account or the Insurance Escrow Account pursuant to Section 3.13. Subject to the terms and conditions of this
Agreement, during such period, the Borrower may borrow, repay and reborrow hereunder. In no event shall an Advance be made when any Default has occurred and is continuing. Borrower may not receive, without Agent’s written consent (i) more than
two Advances during any calendar month, or (ii) an Advance in an amount less than $3,000,000. 
  
 (b) The Loan shall constitute one general obligation of Borrower to Lenders and shall be secured by the security interest in and Liens granted upon all of the Collateral, and by all other security interests and Liens
at any time or times hereafter granted by Borrower to Agent or to Collateral Agent on behalf of Lenders as security for the Loan. 
  
 Section 3.2. Use of Proceeds. Proceeds of the Loan shall be used only for the following purposes: (a) to finance a portion of the acquisition cost
of or refinance the Property, (b) to make the required deposits to the Deferred Maintenance Escrow Account, the Real Estate Taxes Escrow Account, and the Insurance Escrow Account, (c) to pay Transaction Costs (including the reasonable out of pocket
expenses incurred by Lenders in connection with the origination and funding of the Loan) and (d) to pay to counsel to each of Collateral Agent, the Agent and Borrower its respective reasonable fees, expenses and disbursements. 
  
 Section 3.3. Security for the Loan. The Note and Borrower’s
obligations hereunder and under all other Loan Documents shall be secured by (a) so long as an Event of Default has not occurred and is not continuing, the Pledge Agreements and (b) if an Event of Default has occurred and is continuing, Liens upon
the Property pursuant to the Mortgages, the Contract Assignments, the Manager’s Subordinations, the Assignments of Leases and Rents. 
  
 Section 3.4. Borrower’s Note . Borrower’s obligation to pay the principal of and interest on the Loan and all other amounts due under the
Loan Documents shall be evidenced initially by the Note, duly executed and delivered by Borrower on the Closing Date. The Note shall be payable as to principal, interest and all other amounts due under the Loan Documents, as specified in this
Agreement, with a final maturity on the Maturity Date. The initial Lender shall have the right to have the Note subdivided, by exchange for promissory notes of lesser denominations in the form of the initial Note, upon written request to Borrower
and, in such event, Borrower shall promptly execute additional or replacement Notes. At no time shall the aggregate principal amount of the Note (or of such replacement Notes) exceed the Loan Amount. 
  

 31 

 Section 3.5. Repayment of Advances; Interest; Exit Fee. 
  
 (a) Borrower shall pay to Agent interest on the Principal Indebtedness of
the Loan from the initial Advance Closing Date to but excluding the date the Loan shall be paid in full at the interest rate provided in Section 3.5(b) below. Interest on the Loan shall accrue on the Principal Indebtedness commencing on the
Closing Date and shall be payable in arrears on the eleventh (11th) day of the month following the month in which
the initial Advance Closing Date occurs and on the eleventh (11th) day of each and every month thereafter through
the month in which the Maturity Date occurs, unless, in any such case, such day is not a Business Day, in which event such interest shall be payable on the first Business Day following such date (such date for any particular month, the
“Payment Date”). The Agent and the Collateral Agent shall calculate LIBOR on each Interest Determination Date for the related Interest Accrual Period and promptly communicate to Borrower such rate for such period. The entire
outstanding Principal Indebtedness of the Loan and the Note, together with all accrued but unpaid interest thereon and all other amounts due under the Loan Documents (including, without limitation, the Exit Fee), shall be due and payable by Borrower
to the Lenders on the Maturity Date. Interest shall be computed on the basis of a 360 day year and the actual number of days elapsed. 
  
 (b) Each Advance shall bear interest during each Interest Accrual Period from and including its respective Advance Closing Date at a rate per annum equal
to the sum of LIBOR determined as of the Interest Determination Date immediately preceding such Interest Accrual Period plus the related Applicable Margin. 
  
 (c) Simultaneous with the repayment of any Advance hereunder, in whole or in part, whether voluntary or involuntary, the Borrower shall pay to the Agent
the Exit Fee, if any, due and payable in connection therewith. 
  
 (d) While an Event of Default has occurred and is continuing, Borrower shall pay to Agent interest at the Default Rate on any amount owing to the Lenders not paid when due until such amount is paid in full. 
  
 Section 3.6. Voluntary Prepayment. 
  
 (a) Borrower may voluntarily prepay the Loan in whole or in part on any
Payment Date; provided, however, that, any such prepayment shall be accompanied by an amount representing all accrued interest on the portion of the Loan being prepaid and other amounts then due under the Loan Documents (including,
without limitation, the Exit Fee). 
  
 (b) In the event of any
such voluntary prepayment, Borrower shall give Agent written notice (or telephonic notice promptly confirmed in writing) of its intent to prepay, which notice shall be given at least ten (10) days’ prior to the date upon which prepayment is to
be made and shall specify the Payment Date on which such prepayment is to be made and the amount of such prepayment (which shall not be less than $1,000,000). If any such notice is given, the amount specified in such notice shall be due and payable
on the Payment Date specified therein (unless such notice is revoked by Borrower prior to the date specified therein in which event Borrower shall immediately reimburse Agent for any out-of-pocket costs incurred in connection with the giving of such
notice and its revocation). 
  

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 Section 3.7. Mandatory Prepayment; Capital Events; Certain Transfers. 
  
 (a) So long as no Event of Default has occurred and is continuing, Borrower
may enter into a Capital Event with respect to one or more Properties, which were acquired with the proceeds of an Advance; provided, however, that (i) Borrower shall have given Agent at least fifteen (15) Business Days’ prior
written notice of the Capital Event and (ii) by not later than ten (10) Business Days following the receipt of such notice, the Agent shall have notified the Borrower that the Release Condition has been satisfied. 
  
 (b) Except as otherwise provided in Section 3.12(e) in the event Loss
Proceeds are required to be made available for restoration pursuant to Section 5.1(x) of this Agreement and excluding Loss Proceeds which Borrower is obligated to turn over to tenants or other third persons pursuant to applicable law, in the
event of a casualty or a Taking of the Property, in whole or in part, Borrower shall cause all such Loss Proceeds otherwise payable with respect to the Property to be deposited directly into the Collection Account in accordance with Section
3.12(a)(iii) and shall on the Payment Date occurring immediately following the receipt of such Loss Proceeds, apply such portion of Loss Proceeds solely to make the payments required pursuant to item (iii) of clause first of
Section 3.12(b) of this Agreement. 
  
 (c) The Borrower
shall make mandatory prepayments of the Advances as follows: 
  
 (i) if the Lender determines with respect to any Advance that the outstanding principal amount of such Advance is equal to or greater than 90% of the then current related Capital Markets Execution and so notifies
Borrower on any Business Day, then the Borrower shall by no later than forty-eight (48) hours after receipt of such notice prepay the related Advance in part (or if requested by the Borrower and acceptable to the Agent in its sole discretion, pledge
additional collateral to the Agent for the benefit of the Lenders) such that after giving effect to such prepayment or pledge (or both), the outstanding principal amount of such Advance does not exceed 80% of the then current related Capital Markets
Execution; 
  
 (ii) if any Advance shall not have
been repaid in full as of the date one (1) year following the date on which such Advance was made, then on such date one (1) year following the date on which such Advance was made the Borrower shall prepay the related Advance in part such that after
giving effect to such prepayment, the outstanding principal amount of such Advance does not exceed 70% of the then current related Capital Markets Execution; 
  

(iii) if any Advance shall not have been repaid in full as of the date fifteen (15) months following the date on which such Advance was
made, then on such date fifteen (15) months following the date on which such Advance was made the Borrower shall prepay the related Advance in part such that after giving effect to such prepayment, the outstanding principal amount of such Advance
does not exceed 60% of the then current related Capital Markets Execution; and 
  
 (iv) if any Advance shall not have been repaid in full as of the date eighteen (18) months following the date on which such Advance was
made, then on such date eighteen (18) months following the date on which such Advance was made the Borrower shall prepay the related Advance in whole such that the balance of such Advance has been reduced to zero. 
  
 The Agent may determine the Capital Markets Execution each Business Day during the term of
the Loan and shall provide to the Borrower written notice of any such Capital Markets Execution which gives rise to the Borrower’s obligation to make a mandatory prepayment pursuant to this Section 3.7(c). 
  

 33 

 (d) Upon payment or prepayment of the Loan in full, Borrower shall pay to the Lenders, in addition to the
amounts specified in Section 3.6, Section 3.7 and Section 3.12, as applicable, all other amounts then due and payable to the Lenders pursuant to the Loan Documents. 
  
 Section 3.8. Application of Payments After Event of Default. All proceeds relating to any repayments of the Loan
after the Collateral Agent shall have received written notice of the occurrence of an Event of Default shall be applied by Agent, in Agent’s sole discretion, to amounts then outstanding under this Agreement (including, without limitation, any
unpaid fees of the Collateral Agent payable pursuant to the Fee Letter and any reasonable out-of-pocket costs and expenses of Collateral Agent and the Lenders, in that order, reimbursable pursuant to the terms of this Agreement arising as a result
of such repayment; any accrued and unpaid interest then payable with respect to the Loan or the portion thereof being repaid; any accrued and unpaid Exit Fee in respect of any such Principal Indebtedness being repaid; the Principal Indebtedness or
the portion thereof being repaid; and any other sums then due and payable to or for the benefit of Agent pursuant to this Agreement or any other Loan Document(s)). 
  
 Section 3.9. Method and Place of Payment From the Collection Account to Agent. 
  
 (a) Except as otherwise specifically provided herein, all payments and
prepayments under this Agreement and the Note shall be made to Agent not later than 2:00 p.m., New York City time, on the date when due and shall be made in lawful money of the United States of America by wire transfer in federal or other
immediately available funds to its account at ABA No. [                ], Account No.
[                ], Reference: [                ] and Agent shall disburse
such payments to the Person entitled thereto on the Business Day of receipt of such payments (or the next Business Day if the payments are received after 2:00 p.m., New York City time on such Business Day) to the account designated by such Person in
writing to Agent from time to time. Any funds received by Agent after such time shall, for all purposes hereof, be deemed to have been paid on the next succeeding Business Day. Agent shall notify Borrower in writing of any changes in the account to
which payments are to be made. All payments made by Borrower hereunder, or by Borrower under the other Loan Documents, shall be made irrespective of, and without any deduction for, any set-offs or counterclaims. 
  
 (b) Except to the extent otherwise provided herein, (i) each payment or
prepayment of principal of the Loan by Borrower shall be made to Agent for the account of the Lenders pro rata in accordance with the respective unpaid portion of the Loan held by such Lenders and (ii) each payment of interest on the Loan by
Borrower shall be made to Agent for the account of the Lenders pro rata in accordance with the amounts of interest on the portion of the Loan held by such Lenders then due and payable to the respective Lenders. 
  
 Section 3.10. Taxes. All payments made by Borrower under the Note and
this Agreement shall be made free and clear of, and without deduction or withholding for or on account of, any present or future income, stamp or other taxes, levies, imposts, duties, charges, fees, deductions or withholdings, now or hereafter
imposed, levied, collected, withheld or assessed by any Governmental Authority (other than taxes imposed on the income of the Lenders). 
  
 Section 3.11. Release of Collateral. 
  
 (a) Notwithstanding any other provision of this Agreement or any other Loan Document, upon the occurrence of a Capital Event with respect to any Property
as described in Section 3.7(a) hereof or a mandatory prepayment of an Advance with respect to any Property required under Section 3.7(c) hereof, Agent, on behalf of the Lenders, shall, simultaneously with such Capital Event, release of
record either (x) the related Memorandum of Negative Pledge, if the related Mortgage and Assignment of Rents and Leases have not been previously recorded or (y) the Lien of the related 
  

 34 

 Mortgage and UCC-1 financing statements and any other Liens in favor of the Lenders relating to the Property or the
portion thereof affected by such Capital Event, and in either such event, if the Property-Owning Borrower shall thereupon have no further Property included in the Collateral, shall release the Property-Owning Borrower from all obligations hereunder
and release the interests in such Property-Owning Borrower from the Pledge Agreement (Property-Owning Borrower); provided, however, that the Agent shall not be required to release its Lien unless any Proceeds of such Capital Event are
paid to Agent in full or partial satisfaction of the Indebtedness as and to the extent required by Section 3.7(c)(i). 
  
 (b) In the event Borrower satisfies the outstanding Indebtedness in full, Agent and, at the written direction of Agent, Collateral Agent shall withdraw
and hold uninvested for Borrower in an Eligible Account at LaSalle Bank National Association from the Business Day immediately preceding the date upon which the release of funds is to be made to Borrower and release on the date on which the
outstanding Indebtedness is repaid in full any and all amounts then on deposit in the Reserve Account and/or the Collection Account to Borrower. Upon repayment of the Loan and all other amounts due hereunder and under the Loan Documents in full in
accordance with the terms hereof and thereof, the Lenders shall, promptly after such payment, release or cause to be released all Liens with respect to all Collateral or, to the extent necessary to facilitate future savings of mortgage tax in states
that impose mortgage taxes, assign such Liens to Borrower’s new lender(s), provided that any such assignments shall be without recourse, representation, or warranty of any kind, except that Agent and each Lender shall represent and warrant (1)
the then outstanding amount of the Principal Indebtedness and (2) that such Liens have not been previously assigned by Agent or any Lender. 
  
 Section 3.12. Central Cash Management. 
  
 (a) Collection Account; Deposits to and Withdrawals from the Collection Account. 
  
 (i) On or before the Closing Date, Borrower shall establish and maintain with the Collateral Agent a
collection account (the “Collection Account”), which shall be an Eligible Account with a separate and unique identification number and entitled “Deutsche Bank AG, Cayman Islands Branch as Agent, as secured party from First
States Investors DB I, LLC pursuant to a Loan Agreement dated as of July 18, 2003 among First States Investors DB I, LLC, Deutsche Bank AG, Cayman Islands Branch as Agent and LaSalle Bank National Association as Collateral Agent.” With respect
to each Advance and the related Property, not later than the related Advance Closing Date, Borrower shall deliver to each tenant under a Lease an irrevocable direction letter in a form approved by Agent requiring the tenant to pay all Rents and
Money received from Accounts or under Leases and derived from the Property and Proceeds thereof owed to Borrower directly to the Collection Account. Borrower shall provide to Agent proof of such delivery. In addition, Borrower shall deliver an
irrevocable direction letter in such form to each tenant under a new Lease entered into after the date thereof prior to the commencement of such Lease. If a tenant under a Lease forwards such Rents, Money or Proceeds to Borrower rather than directly
to the Collection Account, Borrower shall (i) deliver an additional irrevocable direction letter to the tenant and make other commercially reasonable efforts to cause the tenant to forward such Rents, Money or Proceeds directly to the Collateral
Account and (ii) immediately deposit or cause the Manager to deposit in the Collection Account such Rents, Money or Proceeds. Borrower shall not have any right to withdraw Money from the Collection Account, which shall be under the sole dominion and
control, and the “control” within the meaning of Sections 9-104 and 9-106 of the UCC, of the Agent. Any such Rents, Money or Proceeds held by Borrower or the Manager prior to deposit into the Collection Account shall be held in trust for
the benefit of the Agent and the Lenders. 
  

 35 

 (ii) In the event that Agent has notified the Collateral Agent and Borrower that an Event
of Default has occurred and is continuing, 
  
 (A) all Rents and Money received from Accounts or under Leases and derived from the Property and all Proceeds thereof shall be payable to Agent for the account of Lenders or as otherwise directed by Agent on behalf of Lenders (provided that
such direction shall not result in the nonpayment of any outstanding fees payable to the Collateral Agent pursuant to the Fee Letter), 
  
 (B) Agent on behalf of the Lenders shall make deposits, or cause deposits to be made, of such Rents, Money and Proceeds directly to the
Collection Account, and Borrower shall cooperate (and shall cause the Manager to cooperate) with Agent on behalf of the Lenders in the making of such deposits or causing such deposits to be made, 
  
 (C) Borrower shall not have any right to make or direct any
withdrawals from the Collection Account or the Reserve Account without the prior written consent of Agent on behalf of the Lenders, and 
  
 (D) proceeds on deposit in the Collection Account and the Reserve Account may be applied by Collateral Agent on behalf of the Lenders for
the payment of the Indebtedness pursuant to Section 3.8 of this Agreement. 
  
 (iii) So long as no Event of Default shall have occurred and be continuing, Borrower shall deposit in the Collection Account: (a) as and
when required by Section 3.7(b), Loss Proceeds received by Borrower and (b) simultaneously with the consummation of any Capital Event and if required by the Agent, the Capital Event Proceeds resulting from such Capital Event (and any
contributions from Borrower’s principals) required in connection with such Capital Event in order to comply with the Release Condition. 
  
 (b) Distribution of Cash. So long as the Collateral Agent shall not have received written notice from Agent on behalf of the Lenders that an Event
of Default has occurred and is continuing, the Collateral Agent shall hold uninvested for Borrower or the Lenders in an Eligible Account at LaSalle Bank National Association, the funds on deposit in the Collection Account as of the close of business
on the Business Day immediately preceding each Payment Date to such Payment Date and shall apply such funds on such Payment Date, in each case to the extent of the amounts set forth in the related Payment Date Statement delivered by the Collateral
Agent, as follows: 
  
 first, to the
payment to the Agent of (i) the interest then due and payable on the Note with respect to the related Interest Accrual Period, (ii) the Exit Fee, if any, then due and payable and (iii) the Principal Indebtedness in an amount equal to any additional
amount to which the Agent is then entitled pursuant to Section 3.7 of this Agreement; 
  
 second, to the payment to the Collateral Agent of its fees then due and payable pursuant to the Fee Letter; 
  
 third, to the Real Estate Taxes Escrow Account and
the Insurance Escrow Account, in that order, in the respective amounts required to be deposited therein as described in Section 3.13(b); 
  
 fourth, to the Replacement Reserve Account in the amount required to be deposited therein as described in Section 3.13(a);

  

 36 

 fifth, to the Leasing Costs/TI Costs Account in the amount required to be
deposited therein as described in Section 3.13(a); 
  
 sixth, to the payment of any outstanding indemnification payment to which an Indemnified Party is then entitled pursuant to Sections 5.1(i) and 5.1(j); and 
  
 seventh, to Borrower in an amount equal to remaining
available funds, if any. 
  
 (c) Permitted Investments.
Borrower shall, or shall direct Collateral Agent in writing to, invest and reinvest any balance in the Collection Account, from time to time in Permitted Investments; provided, however, that 
  
 (i) the maturity of the Permitted Investments on deposit
therein shall be at the discretion of Borrower, but in any event no later than the Business Day immediately preceding the date on which such funds are required to be withdrawn therefrom pursuant to Section 3.12(a) or 3.12(b) of this
Agreement, 
  
 (ii) after Collateral Agent has
received written notice from Agent that an Event of Default has occurred and is continuing Borrower shall not have any right to direct investment of the balance in the Collection Account, 
  
 (iii) all such Permitted Investments shall be held in the
name of Collateral Agent and shall be credited to the Collection Account, and 
  
 (iv) if no written investment direction is provided to Collateral Agent by Borrower, Collateral Agent shall invest any balance in the Collection Account in an investment of the type described in clause (vii) of the
definition of Permitted Investments. 
  
 Agent, the Lenders and Collateral Agent
shall have no liability for any loss in investments of funds in the Collection Account that are invested in Permitted Investments (unless, in the case of Collateral Agent, invested contrary to Borrower’s or Agent’s written direction) and
no such loss shall affect Borrower’s obligation to fund, or liability for funding, the Collection Account. All interest paid or other earnings on the Permitted Investments of funds deposited into the Collection Account made hereunder shall be
deposited into the Collection Account. Borrower shall include all earnings on the Collection Account as income of Borrower for federal and applicable state tax purposes. 
  
 (d) Monthly and Payment Date Statements. With respect to each Collection Period, Collateral Agent shall prepare and
deliver, or shall cause to be prepared and delivered, to Agent a statement no later than ten (10) Business Days after the end of such Collection Period setting forth the aggregate deposits to and withdrawals from the Collection Account and each
account of the Reserve Account and the opening and closing balances in such accounts (collectively, the “Monthly Statement”). With respect to each Payment Date and the related Collection Period and Interest Accrual Period,
Collateral Agent shall prepare and deliver, or shall cause to be prepared and delivered to Borrower and Agent, a statement (each, a “Payment Date Statement”) no later than the Business Day prior to such Payment Date with respect to
each of the items below, setting forth the following: 
  
 (i) the aggregate deposits to the Collection Account during the related Collection Period for each type of deposit under this Agreement and the opening and closing balances in the Collection Account; 
  

 37 

 (ii) the amount of interest then due and payable on the Note with respect to the Interest
Accrual Period (including the applicable number of days and interest rate which were applied in determining such amount); 
  
 (iii) the amount of the Exit Fee, if any, then due and payable; 
  
 (iv) the amount of the fees of the Collateral Agent and any expenses payable to the Collateral Agent and any
outstanding indemnification payment to which an Indemnified Party is then entitled under this Agreement; 
  
 (v) the following information with respect to the Principal Indebtedness in a format reasonably acceptable to Agent: (1) the Principal
Indebtedness as of the preceding Payment Date, (2) any principal payable to the Lenders pursuant to Sections 3.6, 3.7 or 3.12 on such Payment Date, and (3) the Principal Indebtedness on the current Payment Date (taking
into account such payments); and 
  
 (vi) the
amount withdrawn from or remitted to each account of the Reserve Account in accordance with Sections 3.12 and 3.13 and the amount remitted to the Borrower. 
  
 (e) Loss Proceeds. In the event of a casualty or Taking with respect to the Property, unless pursuant to Section
5.1(x) of this Agreement or applicable law, the Loss Proceeds are to be made available to Borrower for restoration or to the tenants, all of Borrower’s interest in Loss Proceeds shall be paid directly to the Collection Account to satisfy
the requirements of Section 3.7(b). If the Loss Proceeds are to be made available for restoration pursuant to this Agreement or to the tenants pursuant to applicable law, such Loss Proceeds shall be held by the Collateral Agent in a
segregated interest-bearing Eligible Account in the name of the Collateral Agent on behalf of the Lenders to be opened by the Collateral Agent within three (3) Business Days after the Collateral Agent receives written notice of the necessity
therefor from the Agent, to be withdrawn by the Collateral Agent and held uninvested in a LaSalle Bank National Association account from the Business Day immediately preceding the date upon which payment to Borrower or to the tenants is to be made
to such payment date for delivery to Borrower or to the tenants from time to time to pay restoration costs pursuant to a schedule reasonably acceptable to Agent and Borrower. Funds on deposit in any such account opened by the Collateral Agent shall
be invested in Permitted Investments in the same manner and subject to the same restrictions as set forth in Section 3.12(c) with respect to the Collection Account (except that the maturity shall be not later than as necessary to satisfy the
schedule referred to in the preceding sentence). If any Loss Proceeds are received by Borrower, such Loss Proceeds shall be received in trust for the Lenders, shall be segregated from other funds of Borrower, and shall be forthwith paid to
Collateral Agent to the extent necessary to comply with this Agreement. 
  
 (f) Collateral Agent’s Reliance. Collateral Agent may rely and shall be protected in acting or refraining from acting upon any written notice, instruction or request furnished to it hereunder and reasonably believed by it to be
genuine and to have been signed or presented by the proper party or parties. Collateral Agent may rely on written notice from Agent as to the occurrence and continuance of an Event of Default, without further written notice by the Lenders to the
contrary. 
  

 38 

 Section 3.13. Reserve Account. 
  
 (a) Deferred Maintenance Escrow Account, Replacement Reserve Account and Leasing Costs/TI Costs Account. 

 
 (i) On or before the Closing Date, Borrower shall
establish and maintain with the Collateral Agent three separate accounts for Capital Improvement Costs, replacement reserves, Leasing Commissions and TI Costs, each of which shall be an Eligible Account and shall have the same title as the
Collection Account, for the benefit of the Lenders until the Loan is paid in full. The three accounts shall be designated the Deferred Maintenance Escrow Account (the “Deferred Maintenance Escrow Account”), the Replacement Reserve
Account (the “Replacement Reserve Account”), and the Leasing Costs/TI Costs Account (the “Leasing Costs/TI Costs Account”). If required by Agent, on any Advance Closing Date, Agent shall deposit out of the proceeds
of an Advance in the Deferred Maintenance Escrow Account for the Borrower an amount for required Capital Improvement Costs to be incurred with respect to the related Property being acquired, based upon the Engineering Reports delivered to Agent and
the reasonable determination of the Agent of any additional necessary amounts. On each Payment Date, if required in writing by the Agent, Borrower shall instruct the Collateral Agent in the Payment Date Statement to deposit from the Collection
Account (or if the funds for such deposit are not available pursuant to Section 3.12(b), shall make a deposit of Borrower’s funds) in the Replacement Reserve Account, equal to the Replacement Reserve Amount and in the Leasing Costs/TI
Costs Account, equal to the Leasing Costs/TI Costs Amount. 
  
 (ii) Any and all Moneys remitted to the Deferred Maintenance Escrow Account, together with any Permitted Investments in which such Moneys are or will be invested or reinvested during the term of this Agreement, shall
be held in the Deferred Maintenance Escrow Account (i) to be withdrawn by Collateral Agent upon written request of Borrower made not more than once each month in an amount not less than $5,000 and held uninvested for Borrower or the Lenders in an
Eligible Account at LaSalle Bank National Association from the close of business on the Business Day immediately preceding the date upon which payment is to be made to Borrower to such date, and applied to pay directly or reimburse Borrower for
immediate repairs constituting Capital Improvement Costs referenced in the Engineering Reports for the related Property, or (ii) for purposes otherwise requested by Borrower and reasonably approved by the Agent in writing. 
  
 (iii) Any and all Moneys remitted to the Replacement Reserve
Account, together with any Permitted Investments in which such Moneys are or will be invested or reinvested during the term of this Agreement, shall be held in the Replacement Reserve Account (i) to be withdrawn by Collateral Agent upon written
request by Borrower made not more than once each month in an amount not less than $5,000 and held uninvested for Borrower or the Lenders in an Eligible Account at LaSalle Bank National Association from the close of business on the Business Day
immediately preceding the date upon which payment is to be made to Borrower to such date, and applied to pay directly or reimburse Borrower for replacement reserve costs reasonably determined by Borrower for the Property for which such funds were so
reserved or (ii) for purposes otherwise requested by Borrower and reasonably approved by the Agent in writing. 
  
 (iv) Any and all Moneys remitted to the Leasing Costs/TI Costs Account, together with any Permitted Investments in which such Moneys are
or will be invested or reinvested during the term of this Agreement, shall be held in the Leasing Costs/TI Costs Account (i) to be withdrawn by Collateral Agent upon written request by Borrower made not more than once each month in an amount not
less than $5,000 and held uninvested for Borrower or the Lenders in an 
  

 39 

 Eligible Account at LaSalle Bank National Association from the close of business on the Business Day
immediately preceding the date upon which payment is to be made to Borrower to such date, and applied to pay directly or reimburse Borrower for Leasing Commissions and TI Costs incurred in connection with leasing activities for the Property for
which such funds were so reserved after the related Advance Closing Date specified by Borrower in a written request delivered to Collateral Agent and the Agent or (ii) for purposes otherwise requested by Borrower and reasonably approved by the Agent
in writing. 
  
 (v) Not less than three (3)
Business Days prior to Borrower’s delivery of a request to Collateral Agent to withdraw the funds on deposit in the Deferred Maintenance Escrow Account, Replacement Reserve Account or Leasing Costs/TI Costs Account, in whole or in part,
Borrower shall provide the Agent with written notice (with a copy to Collateral Agent) of such request (including therein a statement of the purpose for the withdrawal and in the case of a reimbursement of the Borrower, evidence that the related
costs have been paid). In the event Borrower completes the repairs for which funds were reserved in the Deferred Maintenance Escrow Account to the reasonable satisfaction of the Agent, Agent and, at the written direction of Agent, Collateral Agent
shall withdraw and hold uninvested for Borrower in an Eligible Account at LaSalle Bank National Association from the Business Day immediately preceding the date upon which the release of funds is to be made to Borrower and release on the date of
release any and all amounts then on deposit in the Deferred Maintenance Escrow Account to the Collection Account. 
  
 (b) Real Estate Taxes Escrow Account, Insurance Escrow Account. On or before the Closing Date, Borrower shall establish and maintain with the
Collateral Agent two separate accounts for Basic Carrying Costs, each of which shall be an Eligible Account and shall have the same title as the Collection Account for the benefit of the Lenders until the Loan is paid in full. The two accounts shall
be designated the Real Estate Taxes Escrow Account (the “Real Estate Taxes Escrow Account”) and the Insurance Escrow Account (the “Insurance Escrow Account”). On each Advance Closing Date, the Agent may deposit out
of the Loan proceeds in the Real Estate Taxes Escrow Account and in the Insurance Escrow Account amounts which the Agent deems necessary based upon Basic Carrying Costs which are to become due and payable with respect to the Property being acquired
with the proceeds of the related Advance. On each Payment Date, Borrower shall instruct the Collateral Agent in the Payment Date Statement to deposit from the Collection Account (or, if the funds for such deposit are not available pursuant to
Section 3.12(b), shall make a deposit of Borrower’s funds), 
  
 (1) an amount equal to the Impositions portion of Monthly Property Expenses in the Real Estate Taxes Escrow Account (except that such deposit shall not be required to be made, if, in connection with CTL Properties
only, the Borrower demonstrates to the Agent’s reasonable satisfaction that a tenant under the related Credit Lease is expressly required to make a similar deposit to a reserve or to pay such Imposition), and 
  
 (2) an amount equal to the portion of Monthly Property
Expenses equal to insurance premiums for policies of insurance required to be maintained by Borrower with respect to the Property pursuant to this Agreement or the other Loan Documents in the Insurance Escrow Account (except that such deposit shall
not be required to be made, if, in connection with CTL Properties only, the Borrower demonstrates to the Agent’s reasonable satisfaction that a tenant under the related Credit Lease is expressly required to make a similar deposit to a reserve
or to pay such Imposition). 
  
 Any and all Moneys remitted to the Real Estate
Taxes Escrow Account or Insurance Escrow Account together with any Permitted Investments in which such Moneys are or will be invested or reinvested 
  

 40 

 during the terms of this Agreement, shall be held in the Real Estate Taxes Escrow Account or Insurance Escrow Account to
be withdrawn from the Real Estate Taxes Escrow Account or Insurance Escrow Account, as applicable, by the Collateral Agent upon written request of Borrower delivered to Agent and Collateral Agent together with documentation and other evidence
(including invoices and in the case of a reimbursement of the Borrower, evidence that the related costs have been paid) with respect to the respective Basic Carrying Costs towards which such funds are to be applied and held uninvested for Borrower
or the Lenders in an Eligible Account at LaSalle Bank National Association from the close of business on the Business Day immediately preceding the date upon which direct payment or reimbursement to Borrower is to be made to such date, and applied
to pay directly (or reimburse Borrower) for (i) (x) any Impositions (in the case of the Real Estate Taxes Escrow Account) or (y) any insurance premiums for policies of insurance required to be maintained by Borrower with respect to the Property
pursuant to this Agreement or the other Loan Documents (in the case of the Insurance Escrow Account) shown on the Operating Budget, in each case currently due to be paid and not previously paid or reimbursed and (ii) any Property Expenses not shown
on the Operating Budget but reasonably approved by the Agent in writing for payment or reimbursement. The Borrower shall deliver to the Agent tax certificates or other evidence of tax paid promptly following payment of same in order to enable the
Agent to verify the payment of taxes. 
  
 (c) Mortgage
Recording Tax Escrow Account. On or before the Closing Date, Borrower shall establish and maintain with the Collateral Agent an account for Mortgage recording taxes, if any, that would be payable in connection with a Real Estate Closing on the
Property which is acquired with the proceeds of each Advance, which shall be an Eligible Account and shall have the same title as the Collection Account, for the benefit of the Lenders until the Loan is paid in full. The account shall be designated
the Mortgage Recording Tax Escrow Account (the “Mortgage Recording Tax Escrow Account”). If required by Agent, on any Advance Closing Date, Agent shall deposit out of the proceeds of an Advance in the Mortgage Recording Tax Escrow
Account for the Borrower an amount for required Mortgage recording taxes calculated by the Title Agent that satisfy the requirements of Section 3.16 of this Agreement sufficient to create first Liens. 
  
 Any and all Moneys remitted to the Mortgage Recording Tax Escrow Account,
together with any Permitted Investments in which such Moneys are or will be invested or reinvested during the term of this Agreement, shall be held in the Mortgage Recording Tax Escrow Account (i) to be withdrawn by Collateral Agent upon written
request of Agent following the occurrence and during the continuance of an Event of Default and held uninvested for Borrower or the Lenders in an Eligible Account at LaSalle Bank National Association from the close of business on the Business Day
immediately preceding the date upon which payment is to be made to Agent to such date, and applied to pay directly or reimburse Agent for Mortgage recording taxes imposed upon recordation of the Mortgages. 
  
 (d) Investment of Funds. All or a portion of any Moneys in the Reserve
Account shall be invested and reinvested, so long as Collateral Agent has not received written notice from Agent that an Event of Default has occurred and is continuing, by Collateral Agent in accordance with written instructions delivered by
Borrower, or after Collateral Agent has received written notice from Agent that an Event of Default has occurred and is continuing, by Agent, in one or more Permitted Investments. If no written investment direction is provided to Collateral Agent by
Borrower, Collateral Agent shall invest such Moneys in an investment of the type described in clause (vii) of the definition of Permitted Investments. Agent, the Lenders and Collateral Agent shall have no liability for any loss in investments of
funds in the Reserve Account that are invested in Permitted Investments (unless, in the case of Collateral Agent, invested contrary to Borrower’s or Agent’s written direction) and no such loss shall affect Borrower’s obligation to
fund, or liability for funding, the Reserve Account. Unless and until title to the funds therein shall have vested in any Person other than Borrower, Borrower shall include all such income or gain on any account of the Reserve Account as income of
Borrower for federal and applicable state tax purposes. 
  

 41 

 (e) Event of Default. After Collateral Agent has received written notice from Agent that an Event
of Default has occurred and is continuing, Borrower shall not be permitted to make any withdrawal(s) from the Reserve Account and Collateral Agent at the written direction of Agent may liquidate any Permitted Investments of the amount on deposit in
such account, withdraw and hold the proceeds of such liquidation uninvested for Lenders in a LaSalle Bank National Association account from the Business Day immediately preceding the date such funds are to be used and use such amount on deposit in
the Reserve Account on the succeeding Business Day to make payments on account of the Loan in accordance with the priorities set forth in Section 3.8. 
  
 Section 3.14. Additional Provisions Relating to the Collection Account and the Reserve Account. 
  
 (a) The Collateral Agent covenants and agrees that: (i) all securities or
other property underlying any financial assets credited to any Pledged Account shall be registered in the name of the Collateral Agent, indorsed to the Collateral Agent or indorsed in blank or credited to another securities account maintained in the
name of the Collateral Agent and in no case will any financial asset credited to any Pledged Account be registered in the name of the Borrower, payable to the order of the Borrower or specially indorsed to the Borrower except to the extent the
foregoing have been specially indorsed to the Collateral Agent or in blank; and (ii) all Permitted Investments and all other property delivered to the Collateral Agent pursuant to this Agreement will be promptly credited to one of the Pledged
Accounts. 
  
 (b) The Collateral Agent hereby agrees that each
item of property (whether investment property, financial asset, security, instrument, cash or otherwise) credited to any Pledged Account shall be treated as a “financial asset” within the meaning of Section 8-102(a)(9) of the UCC.

  
 (c) If at any time the Collateral Agent shall receive from the
Agent an entitlement order (i.e. an order directing transfer or redemption of any financial asset relating to a Pledged Account) or any instruction (within the meaning of Section 9-104 of the UCC) originated by the Agent (i.e. an instruction
directing the disposition of funds in a Pledged Account), the Collateral Agent shall comply with such entitlement order or instruction without further consent by the Borrower or any other Person. 
  
 (d) Regardless of any provision in any other agreement, for purposes of the
UCC, with respect to each Pledged Account, New York shall be deemed to be the bank’s jurisdiction (within the meaning of Section 9-304 of the UCC) and the securities intermediary’s jurisdiction (within the meaning of Section 8-110 of the
UCC). The Pledged Accounts shall be governed by the laws of the State of New York. 
  
 (e) Except for the claims and interest of the Agent and of the Borrower in the Pledged Accounts, the Collateral Agent represents and warrants that it does not know of any Lien on or claim to, or interest in, any
Pledged Account or in any “financial asset” (as defined in Section 8-102(a) of the UCC) credited thereto. If any Person asserts any Lien, encumbrance or adverse claim (including any writ, garnishment, judgment, warrant of attachment,
execution or similar process) against the Pledged Accounts or in any financial asset carried therein, the Collateral Agent will promptly notify the Agent and the Borrower thereof. 
  

 42 

 Section 3.15. Security Agreement. 
  
 (a) Pledge of Account. To secure the full and punctual payment and performance of all of the Indebtedness, Borrower
hereby assigns, conveys, pledges and transfers to the Agent on behalf of the Lenders as secured party, and grants Agent on behalf of the Lenders a first and continuing security interest in and to, the following property, whether now owned or
existing or hereafter acquired or arising and regardless of where located (collectively, the “Account Collateral”): 
  
 (i) all of Borrower’s right, title and interest in the Pledged Accounts and all Money and Permitted Investments, if any, from time to
time deposited or held in the Pledged Accounts or purchased with funds or assets on deposit in the Pledged Accounts; 
  
 (ii) all of Borrower’s right, title and interest in interest, dividends, Money, Instruments and other property from time to time
received, receivable or otherwise payable in respect of, or in exchange for, any of the foregoing until such time as such items are disbursed from the Pledged Accounts; and 
  
 (iii) to the extent not covered by clause (i) or (ii) above, all Borrower’s right, title
and interest in Proceeds of any or all of the foregoing until such time as such items are disbursed from the Pledged Accounts. 
  
 (b) Covenants. So long as any portion of the Indebtedness is outstanding, Borrower shall not open (or permit Collateral Agent to open) any account
other than the Collection Account for the deposit of Rents or Money received from Accounts or under Leases and derived from the Property and all Proceeds to pay amounts owing hereunder, other than any account for amounts required by law to be
segregated by Borrower. Borrower shall not have any right to withdraw Money from the Reserve Account, which shall be under the sole dominion and control, and the “control” within the meaning of Sections 9-104 and 9-106 of the UCC, of the
Agent. The Account Collateral shall be subject to such applicable laws, and such applicable regulations of the Board of Governors of the Federal Reserve System and of any other banking authority or Governmental Authority, as may now or hereafter be
in effect, and to the rules, regulations and procedures of Collateral Agent relating to demand deposit accounts generally from time to time in effect. 
  
 (c) Financing Statements; Further Assurances. The Borrower hereby authorizes the filing of any financing statements or continuation statements, and
amendments to financing statements, in any jurisdictions and with any filing offices as the Agent may determine, in its sole discretion, are necessary or advisable to perfect the security interest granted to the Agent in connection herewith. Such
financing statements may describe the collateral in the same manner as described in any security agreement or pledge agreement entered into by the parties in connection herewith or may contain an indication or description of collateral that
describes such property in any other manner as the Agent may determine, in its sole discretion, is necessary, advisable or prudent to ensure the perfection of the security interest in the collateral granted to the Agent in connection herewith,
including, without limitation, describing such property as “all assets” or “all personal property” whether now owned or hereafter acquired. From time to time, at the expense of Borrower, Borrower shall promptly execute and
deliver all further instruments, and take all further action, that Agent may reasonably request, in order to continue the perfection and protection of the pledge and security interest granted or purported to be granted hereby. 
  
 (d) Transfers and Other Liens. Borrower shall not sell or otherwise
dispose of any of the Account Collateral other than pursuant to the terms of this Agreement and the other Loan Documents, or create or permit to exist any Lien upon or with respect to all or any of the Account Collateral, except for the Lien granted
to Agent, Permitted Encumbrances and the rights of the institution acting as Agent, under or as contemplated by this Agreement. 
  

 43 

 (e) No Waiver. Every right and remedy granted to Agent under this Agreement or by law may be
exercised by Agent at any time and from time to time, and as often as Agent may deem it expedient. Any and all of Agent’s rights with respect to the pledge of and security interest in the Account Collateral granted hereunder shall continue
unimpaired, and to the extent permitted by law, Borrower shall be and remain obligated in accordance with the terms hereof, notwithstanding (i) any proceeding of Borrower under the United States Bankruptcy Code or any bankruptcy, insolvency or
reorganization laws or statutes of any state, (ii) the release or substitution of Account Collateral at any time, or of any rights or interests therein or (iii) any delay, extension of time, renewal, compromise or other indulgence granted by Agent
in the event of any Default with respect to the Account Collateral or otherwise hereunder. No delay or extension of time by Agent in exercising any power of sale, option or other right or remedy hereunder, and no notice or demand which may be given
to or made upon Borrower by Agent, shall constitute a waiver thereof, or limit, impair or prejudice Agent’s right, without notice or demand, to take any action against Borrower or to exercise any other power of sale, option or any other right
or remedy. 
  
 (f) Agent Appointed Attorney-In-Fact.
Borrower hereby irrevocably constitutes and appoints Agent as Borrower’s true and lawful attorney-in-fact, with full power of substitution, at any time after the occurrence and during the continuation of an Event of Default, to execute,
acknowledge and deliver any instruments and to exercise and enforce every right, power, remedy, option and privilege of Borrower with respect to the Account Collateral, and do in the name, place and stead of Borrower, all such acts, things and deeds
for and on behalf of and in the name of Borrower with respect to the Account Collateral, which Borrower could or might do or which Agent may deem necessary or desirable to more fully vest in Agent the rights and remedies provided for herein with
respect to the Account Collateral and to accomplish the purposes of this Agreement. The foregoing powers of attorney are irrevocable and coupled with an interest and shall terminate upon repayment of the Indebtedness in full. 
  
 (g) Continuing Security Interest; Termination. This Section
3.15 shall create a continuing pledge of and security interest in the Account Collateral and shall remain in full force and effect until payment in full by Borrower of the Indebtedness. Upon payment in full by Borrower of the Indebtedness, Agent
shall return to Borrower such of the Account Collateral as shall not have been applied pursuant to the terms hereof, and shall execute such instruments and documents as may be reasonably requested by Borrower to evidence such termination and the
release of the pledge and lien hereof. 
  
 (h) Right of
Set-off. Collateral Agent waives any and all rights it may have at law or otherwise to set off or make any claim against the Account Collateral, except, with respect to any checks returned for insufficient funds, and the payment of Collateral
Agent’s fees and expenses due under this Agreement (including reasonable attorney fees and disbursements) for the maintenance of the Account Collateral. 
  
 Section 3.16. Real Estate Security Documents; Mortgage Recording Taxes. 
  
 (a) If an Event of Default has occurred and is continuing, then the Agent may in its sole and absolute discretion cause the
Real Estate Closing to occur in whole or in part. Any out-of-pocket costs and expenses incurred by the Agent in connection therewith (including, but not limited to, the costs to purchase the Title Insurance Policy and all state, county and municipal
recording and all other taxes imposed upon the execution and recordation of the Mortgages, if any), to the extent not paid by the Borrower, shall be added to the Principal Indebtedness and treated as an advance by the Agent to protect its interest
in the Collateral. 
  

 44 

 (b) Except as set forth in the following sentence, the Liens to be created by the Mortgages are intended
to encumber each legal parcel of the Property either (x) with respect to each jurisdiction that does not impose mortgage recording taxes, to the full extent of the Loan Amount or (y) with respect to jurisdictions that impose mortgage recording
taxes, 125% of the related Advance for such Property. By not later than five (5) Business Days after the Agent shall have notified the Borrower that an Event of Default shall have occurred, Borrower shall have paid all state, county and municipal
recording and all other taxes imposed upon the execution and recordation of the Mortgages. 
  
 Section 3.17. Taxes. 
  
 (a) All payments made by Borrower under the Note and this Agreement shall be made free and clear of, and without deduction or withholding for or on account of, any present or future income, stamp or other taxes, levies, imposts, duties,
charges, fees, deductions or withholdings, now or hereafter imposed, levied, collected, withheld or assessed by any Governmental Authority (other than taxes imposed on (or measured by) the income of any Lender as a result of a present or former
connection between Lender and the jurisdiction imposing such taxes excluding such connection arising solely from transactions or payments contemplated by this Agreement). If any such tax is required to be deducted or withheld from any payment under
the Note or this Agreement, Borrower shall increase the payment to the extent necessary so as to yield the amount (after all deductions or withholdings required) that would have been payable if there were no such deduction or withholding. If any
such tax is payable by Borrower, then, as promptly as possible thereafter, Borrower shall send to such Lender a copy of an original receipt received by the Borrower showing payment thereof. If Borrower fails to pay any such tax when due or fails to
remit to such Lender the required receipt, Borrower shall indemnify such Lender for any incremental taxes, interest or penalties that may become payable by the Lender as a result of any such failure. 
  
 (b) If a Lender is not a United States person (as such term is defined in
Section 7701(a)(30) of the Code), then such Lender shall provide, on or before such Lender becomes a party to this Agreement and as requested by Borrower thereafter, an IRS Form W-8ECI or W-8BEN (plus a non-bank certificate in the case of a Lender
relying on the so-called “portfolio interest” exemption) claiming complete exemption from, or a reduced rate of, United States withholding tax on payments under the Note or this Agreement. No Lender shall be required to provide a form that
such Lender is not legally able to deliver. In addition, such Lender agrees that from time to time, when a lapse in time or change in circumstances renders the previous certification invalid or inaccurate in any material respect, it will promptly
deliver to Borrower two new accurate and complete original signed copies of Internal Revenue Service Form W-8ECI or W-8BEN (or successor forms) and such other forms as may be required in order to confirm or establish the entitlement of such Lender
to a continued exemption from or reduction in United States withholding tax with respect to payments under the Note or this Agreement, or it shall immediately notify Borrower of its inability to deliver any such form, in which case such Lender shall
not be required to deliver any such form pursuant to this Section 3.17(b). Notwithstanding anything to the contrary contained herein, (x) Borrower shall be entitled, to the extent required to do so by law, to deduct or withhold income or
similar taxes imposed by a Governmental Authority from interest, fees or other amounts payable hereunder for the account of any such Lender to the extent that such Lender has not provided to the Borrower properly completed and executed documentation
that establishes a complete exemption from such deduction or withholding (which, with respect to the United States and political subdivisions thereof, shall be Internal Revenue Service Forms described in this Section 3.17(b), and, with
respect to any other Governmental Authority, shall be requested in writing by Borrower), (y) Borrower shall not be obligated to gross-up payments to be made to such Lender in respect of taxes imposed by a Governmental Authority if such Lender has
not provided to the Borrower properly completed and executed documentation reasonably requested by Borrower, as would permit Borrower to make payments without withholding or at a reduced rate, provided that the foregoing shall not apply if such
Lender is not 
  

 45 

 legally able to or entitled to deliver such documentation, and (z) Borrower shall not be obligated to gross-up payments
under Section 3.17(a) to be made to such Lender in respect of any tax that is in effect and would apply to amounts payable to such Lender at the time such Lender becomes a party to this Agreement, except to the extent the assignor with
respect to such Lender would have been entitled at the time of assignment to receive additional amounts from Borrower with respect to any tax pursuant to this Section 3.17. Other than as set forth in this Section 3.17(b), Borrower
agrees to pay additional amounts as provided in Section 3.17(a) and to indemnify each Lender and its assignees and transferees in respect of any taxes deducted or withheld by it as a result of any changes that are effective after the Closing
Date in any applicable law, treaty, governmental rule, regulation, guideline or other, or in the interpretation thereof, relating to the deducting or withholding of such taxes. 
  
 (c) If the Lender receives a refund in respect of taxes paid by Borrower which refund in the judgment of the Lender is
allocable to a payment made by Borrower pursuant to Section 3.13(a), the Lender shall promptly pay such refund, but not out-of-pocket costs of the Lender, to Borrower if all of the payments due to the Lender under this Section 3.13
have been paid in full. 
  
 Section 3.18. General Collateral
Agent Provisions. 
  
 (a) Appointment. The Lenders
hereby designate and appoint LaSalle Bank National Association as Collateral Agent on behalf of the Lenders under this Agreement, and authorize LaSalle Bank National Association, as Collateral Agent for the Lenders, to take such actions on their
behalf under the provisions of this Agreement and to exercise such powers and perform such duties as are expressly delegated to Collateral Agent by the terms of this Agreement, together with such other powers as are reasonably incidental thereto.
Notwithstanding any provision to the contrary elsewhere in this Agreement, Collateral Agent shall not have any duties or responsibilities, except those expressly set forth herein, or any fiduciary relationship with the Lenders, and no implied
covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Loan Document or otherwise exist against Collateral Agent. 
  
 (b) Collateral Agent’s Right to Perform. If an Event of Default shall have occurred and be continuing, then
Collateral Agent may, but shall have no obligation to, itself perform, or cause performance of, such covenant or obligation giving rise to such Event of Default. The reasonable fees and expenses of Collateral Agent incurred in connection therewith
shall be payable by Borrower to Collateral Agent upon demand, which obligation shall be secured by all Collateral. 
  
 (c) Standard of Care. Beyond the observance of Accepted Practices and the exercise of reasonable care in the custody or disbursements thereof,
Collateral Agent shall not have any duty as to any Account Collateral or any income thereon in its possession or control or in the possession or control of any agents for, or of Collateral Agent, or the preservation of rights against any Person or
otherwise with respect thereto. Collateral Agent shall be deemed to have exercised reasonable care in the custody of the Account Collateral in its possession if the Account Collateral is accorded treatment in accordance with the Accepted Practices.

  
 (d) Exculpatory Provisions. Neither Collateral Agent
nor any of its officers, directors, employees, agents, attorneys, attorneys-in-fact or Affiliates shall be responsible in any manner to the Lenders for any recitals, statements, representations or warranties made by Borrower or any officer thereof
contained in this Agreement or any other Loan Document or in any certificate, report, statement or other document referred to or provided for in, or received by Collateral Agent under or in connection with, this Agreement or any other Loan Document
or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement, the Note or any other Loan Document or for any failure of Borrower to perform its obligations hereunder or thereunder. Collateral Agent shall
not be under any 
  

 46 

 obligation to the Lenders to ascertain or to inquire as to the agreements contained in, or conditions of, this Loan
Agreement or any other Loan Document, or to inspect the properties, books or records of Borrower. Collateral Agent shall not be required to take any discretionary actions hereunder except at the written direction of Borrower or Agent, it being
understood and agreed that Collateral Agent’s duties hereunder shall be wholly ministerial in nature and that Collateral Agent shall not be responsible for calculating any financial ratios or generating any reports (other than the Monthly
Statement) for the Lenders or Borrower. In connection with any discretionary action which Borrower is permitted hereunder to direct Collateral Agent to take, if Collateral Agent shall follow Agent’s directions and not Borrower’s
directions, it shall have no liability to Borrower (or to any other Person) for following any such directions of Agent and for not following such directions of Borrower (if expressly permitted herein). Collateral Agent shall not be under any
obligation or duty to perform any act which, in Collateral Agent’s sole reasonable judgment, could involve it in expense or liability or to institute or defend any suit in respect hereof, or to advance any of its own monies, unless Agent or
Borrower, as the case may be, shall have offered to Collateral Agent reasonable security or indemnity against such expense, liability, suit or advance. 
  
 (e) Indemnification. Borrower shall indemnify and hold Collateral Agent, and its agents, attorneys, employees and officers harmless from and
against any loss, cost or damage (including, without limitation, reasonable attorneys’ fees and disbursements) incurred by Collateral Agent in connection with the transactions contemplated hereby, excluding any such loss, cost or damage arising
as a result of Collateral Agent’s failure to adopt and follow Accepted Practices, gross negligence, bad faith, willful misconduct or violation of applicable law. The indemnification set forth in this paragraph shall survive the satisfaction and
payment of the Indebtedness and the termination of this Agreement. 
  
 (f) Collateral Agent’s Reliance. Collateral Agent shall be entitled to rely, and shall be fully protected in relying, upon any note, writing, resolution, notice, consent, certificate, affidavit, letter, cablegram, fax,
electronic mail message, telex or teletype message, statement, order or other document reasonably believed by it to be genuine and correct and to have been signed, sent or made by the proper Person or Persons and upon advice and statements of legal
counsel and other experts selected in good faith by Collateral Agent. Collateral Agent may deem and treat the payee of the Note as the owner thereof for all purposes unless a written notice of assignment, negotiation or transfer thereof shall have
been filed with Collateral Agent. Collateral Agent shall be fully justified in failing or refusing to take any action under this Agreement or any other Loan Document unless it shall first receive such advice or concurrence of Agent as it deems
appropriate or it shall first be indemnified to its satisfaction by Agent against any and all liability and expense which may be incurred by it by reason of taking or continuing to take any such action. Provided that Collateral Agent acts in
accordance with Accepted Practices, Collateral Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement in accordance with a request of Agent, and such request and any action taken or failure to act
pursuant thereto shall be binding upon Agent and all future holders of the Note. All requests to Collateral Agent for wire transfers of funds, for transfers between accounts established pursuant to this Agreement or any other transfer not
specifically described in this Agreement shall be in writing. 
  
 (g) Notice of Default. Collateral Agent shall not be deemed to have knowledge or notice of the occurrence of any Default or Event of Default hereunder unless Collateral Agent has received written notice from Agent referring to this
Agreement, describing such Default or Event of Default and stating that such notice is a “notice of default”. Collateral Agent shall take such action with respect to such Default or Event of Default as shall be directed by Agent, including
any action under this Agreement. 
  
 (h) Non-Reliance on
Collateral Agent. Neither Collateral Agent nor any of its officers, directors, employees, agents, attorneys, attorneys-in-fact or Affiliates has made any representations or warranties to the Lenders and no act by Collateral Agent hereinafter
taken (including 
  

 47 

 any review of the affairs of Borrower) shall be deemed to constitute any representation or warranty by Collateral Agent
to the Lenders. Except for notices, reports and other documents expressly required to be furnished to Agent by Collateral Agent hereunder, Collateral Agent shall not have any duty or responsibility to provide the Lenders with any credit or other
information concerning the business, operations, property, condition (financial or otherwise), prospects or creditworthiness of Borrower which may come into the possession of Collateral Agent or any of its officers, directors, employees, agents,
attorneys, attorneys-in-fact or Affiliates. 
  
 (i) Removal and
Resignation. Collateral Agent shall have the right to resign as collateral agent hereunder and Agent shall have the right to remove Collateral Agent as collateral agent hereunder, in each case upon thirty (30) days’ written notice to the
other parties to this Agreement. In the event of such resignation or removal, Agent shall appoint a successor Collateral Agent, or at Agent’s option in Agent’s sole and absolute discretion Agent may assume and perform the rights and
obligations of Collateral Agent. No such removal of or resignation by Collateral Agent shall become effective until a successor Collateral Agent shall have accepted such appointment (or Agent shall have determined to designate itself as Collateral
Agent) and executed an instrument by which it shall have assumed all of the rights and obligations of Collateral Agent hereunder. If no such successor Collateral Agent is appointed within sixty (60) days (or, if fees payable under the Fee Letter
have not been paid, thirty (30) days) after receipt of the resigning Collateral Agent’s notice of resignation or removal, the resigning Collateral Agent may petition a court for the appointment of a successor Collateral Agent unless Agent
elects, in its sole and absolute discretion, to assume the rights and obligations of Collateral Agent itself. In connection with any removal of or resignation by Collateral Agent, (A) the removed or resigning Collateral Agent shall (1) duly assign,
transfer and deliver to the successor Collateral Agent this Agreement and all Money and Permitted Investments held by it hereunder, (2) execute such financing statements and other instruments as may be necessary to assign to the successor Collateral
Agent the security interest existing in favor of the retiring Collateral Agent hereunder, and to otherwise give effect to such succession and (3) take such other actions as may be reasonably required by Borrower, Agent or the successor Collateral
Agent in connection with the foregoing and (B) the successor Collateral Agent shall establish in its name, as agent for the Lenders, as secured party, the Collection Account and Reserve Account as Borrower is required to maintain pursuant to the
terms of this Agreement. 
  
 (j) Individual Capacity.
Collateral Agent and its Affiliates may make loans to, accept deposits from and generally engage in any kind of business with Borrower or any Affiliate, as though Collateral Agent were not Collateral Agent hereunder, or under the other Loan
Documents. 
  
 Section 3.19. Indemnity. If Borrower makes a
prepayment of the Advances on any day which is not a Payment Date or defaults in making a prepayment after having given a notice in accordance with Section 2.6 of prepayment of Advances, the Borrower shall indemnify the Lenders and hold the Lenders
harmless from any actual loss or expense (excluding any lost profit or opportunity cost) which the Lenders may sustain or incur arising from (a) the re-employment of funds obtained by the Lenders to maintain the Advances hereunder or (b) fees
payable to terminate the deposits from which such funds were obtained, in either case, which actual loss or expense shall be equal to an amount equal to the excess, as reasonably determined by the Lender, of (i) its cost of obtaining funds for such
Advances for the period from the date of such payment through the following Payment Date over (ii) the amount of interest likely to be realized by such Lender in redeploying the funds not utilized by reason of such payment for such period. This
Section 3.19 shall survive termination of this Loan Agreement and payment of the Note. 
  

 48 

 Section 3.20. Inability to Determine Interest Rate; Illegality. 
  
 (a) If prior to the first day of any Interest Accrual Period, (i) Lender
shall have determined (which determination shall be conclusive and binding upon Borrower) that, by reason of circumstances affecting the relevant market, adequate and reasonable means do not exist for ascertaining LIBOR for such Interest Accrual
Period, or (ii) LIBOR determined or to be determined for such Interest Accrual Period will not adequately and fairly reflect the cost to such Lender (as determined and certified by such Lender) of making or maintaining Advances during such Interest
Accrual Period, such Lender shall give telecopy or telephonic notice thereof to Borrower as soon as practicable thereafter. If such notice is given, the interest rate with respect to such Advances for such Interest Accrual Period, and for any
subsequent Interest Accrual Periods until such notice has been withdrawn by such Lender, shall be a per annum rate (the “Alternative Rate”) equal to a rate determined based on an index approximating the behavior of LIBOR as
reasonably determined by such Lender. 
  
 (b) Notwithstanding any
other provision herein, if the adoption of or any change in any Legal Requirement or in the interpretation or application thereof shall make it unlawful for a Lender to effect Advances as contemplated by the Loan Documents, (a) the commitment of
such Lender hereunder to make new Advances and to continue Advances as such shall forthwith be canceled, and (b) the Advances then outstanding shall be converted automatically to Alternative Rate Advances on the last day of the then current Interest
Accrual Period or within such earlier period as may be required by law. If any such conversion of an Advance occurs on a day which is not the last day of the then current Interest Accrual Period with respect to such Advance, Borrower shall pay to
such Lender such amounts, if any, as may be required pursuant to Section 3.19. 
  
 Section 3.21. Requirements of Law. 
  
 (a) If the adoption of or any change in any Requirement of Law or in the interpretation or application thereof by any Governmental Authority or compliance by a Lender with any directive from any central bank or other
Governmental Authority having jurisdiction over such Lender made subsequent to the date hereof: 
  
 (i) shall subject such Lender to any tax of any kind whatsoever with respect to the Loan Documents or any Transaction, or change the basis
of taxation of payments to such Lender in respect thereof (except for changes in the rate of tax on such Lender’s overall net income); 
  
 (ii) shall impose, modify or hold applicable any reserve, special deposit, compulsory loan or similar requirement against assets held by,
deposits or other liabilities in or for the account of, advances, loans or other extensions of credit by, or any other acquisition of funds by, any office of such Lender which is not otherwise included in the determination of LIBOR hereunder; or

  
 (iii) shall impose on such Lender any other
condition; 
  
 and the result of any of the foregoing is to increase the cost to
such Lender, by an amount which such Lender deems to be material, of making, continuing or maintaining Advances or to reduce any amount receivable under the Loan Documents in respect thereof; then, in any such case, Borrower shall promptly pay such
Lender, upon its demand, any additional amounts necessary to compensate such Lender for such increased cost or reduced amount receivable. If such Lender becomes entitled to claim any additional amounts pursuant to this Section 3.21(a), it shall
promptly notify Borrower of the event by reason of which it has become so entitled. As a condition to Borrower’s liability under this paragraph, such Lender 
  

 49 

 shall promptly deliver to Borrower a certificate as to the calculation of any additional amounts payable pursuant to this
subsection and including any available supporting documentation, which certificate shall be conclusive and binding upon Borrower in the absence of manifest error. This covenant shall survive the termination of the Agreement and payment of the Note.

  
 (b) If a Lender shall have determined that the adoption of or
any change in any Legal Requirement regarding capital adequacy or in the interpretation or application thereof or compliance by such Lender or any corporation controlling such Lender with any directive regarding capital adequacy from any
Governmental Authority made subsequent to the date hereof does or shall have the effect of reducing the rate of return on such Lender’s or such corporation’s capital as a consequence of its obligations hereunder to a level below that which
such Lender or such corporation could have achieved but for such adoption, change or compliance by an amount which is deemed by such Lender to be material, then from time to time, after submission by such Lender to Borrower of a written request
therefore, Borrower shall pay to such Lender such additional amount or amounts as will compensate such Lender for such reduction. As a condition to Borrower’s liability under this paragraph, such Lender shall promptly deliver to Borrower a
certificate as to the calculation of any additional amounts payable pursuant to this subsection and including any available supporting documentation, which certificate shall be conclusive and binding upon Borrower in the absence of manifest error.
This covenant shall survive the termination of the Agreement and payment of the Note. 
  
 ARTICLE IV. 
 REPRESENTATIONS AND WARRANTIES 
  
 Section 4.1. Representations and Warranties as to Borrower. Borrower
represents and warrants that, as of the Closing Date and as of each Advance Closing Date: 
  
 (a) Organization. Borrower (i) is a duly and solely organized and validly existing limited liability company in good standing under the laws of the State of Delaware, (ii) has the requisite power and authority
to own its properties (including, without limitation, the Property) and to carry on its business as now being conducted and is qualified to do business in the jurisdiction in which the Property is located, and (iii) has the requisite power to
execute and deliver, and perform its obligations under, this Agreement, the Note and all of the other Loan Documents to which it is a party. 
  
 (b) Authorization; No Conflict; Consents and Approvals. The execution and delivery by Borrower of this Agreement, the Note and each of the other
Loan Documents, Borrower’s performance of its obligations hereunder and thereunder and the creation of the security interests and liens provided for in this Agreement and the other Loan Documents to which it is a party (i) have been duly
authorized by all requisite action on the part of Borrower, (ii) will not violate any provision of any Legal Requirements, any order of any court or other Governmental Authority, the Organizational Agreement or any indenture or agreement or other
instrument to which Borrower is a party or by which Borrower is bound, and (iii) will not be in conflict with, result in a breach of, or constitute (with due notice or lapse of time or both) a default under, or result in the creation or imposition
of any Lien of any nature whatsoever upon the Property pursuant to, any such indenture or agreement or material instrument other than the Loan Documents. Other than those obtained or filed on or prior to the Closing Date, Borrower is not required to
obtain any consent, approval or authorization from, or to file declaration or statement with, any Governmental Authority or other agency in connection with or as a condition to the execution, delivery or performance of this Agreement, the Note or
the other Loan Documents executed and delivered by Borrower. 
  
 (c) Enforceability. This Agreement, the Note and each other Loan Document executed by Borrower in connection with the Loan (including, without limitation, any Collateral Security 
  

 50 

 Instrument), is the legal, valid and binding obligation of Borrower, enforceable against Borrower in accordance with its
terms, subject to bankruptcy, insolvency, and other limitations on creditors’ rights generally and to equitable principles. This Agreement, the Note and such other Loan Documents are not subject to any right of rescission, set-off, counterclaim
or defense by Borrower (including the defense of usury), and Borrower has not asserted any right of rescission, set-off, counterclaim or defense with respect thereto. 
  
 (d) Litigation. There are no actions, suits or proceedings at law or in equity by or before any Governmental
Authority or other agency now pending and served or, to the best knowledge of Borrower, threatened in writing against Borrower or any Collateral, which actions, suits or proceedings, if determined against Borrower or such Collateral, are reasonably
likely to result in a Material Adverse Effect. 
  
 (e)
Agreements. Borrower is not in default in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any agreement or instrument to which it is a party or by which Borrower or any Collateral is
bound which is reasonably likely to have a Material Adverse Effect. Borrower is not a party to any agreement or instrument or subject to any restriction that is reasonably likely to have a Material Adverse Effect. 
  
 (f) No Bankruptcy Filing. Borrower is not contemplating either the
filing of a petition by it under any state or federal bankruptcy or insolvency laws or the liquidation of all or a major portion of its assets or property. Borrower has not received written notice that any Person is contemplating the filing of any
such petition against it. 
  
 (g) Solvency. Giving effect
to the transactions contemplated hereby, the fair saleable value of Borrower’s assets exceeds and will, immediately following the making of the Loan, exceed Borrower’s total liabilities (including, without limitation, subordinated,
unliquidated, disputed and contingent liabilities). The fair saleable value of Borrower’s assets is and will, immediately following the making of the Loan, be greater than Borrower’s probable liabilities (including the maximum amount of
its contingent liabilities on its debts as such debts become absolute and matured). Borrower’s assets do not and, immediately following the making of the Loan will not, constitute unreasonably small capital to carry out its business as
conducted or as proposed to be conducted. Borrower does not intend to, and does not believe that it will, incur debts and liabilities (including, without limitation, contingent liabilities and other commitments) beyond its ability to pay such debts
as they mature (taking into account the timing and amounts to be payable on or in respect of obligations of Borrower). 
  
 (h) Other Debt. Borrower has not borrowed or received other debt financing whether unsecured or secured by the Property or any part thereof.

  
 (i) Full and Accurate Disclosure. No statement of fact
made by or on behalf of Borrower in this Agreement or in any of the other Loan Documents contains any untrue statement of material fact or omits to state any material fact necessary to make statements contained herein or therein not misleading. To
the best knowledge of Borrower, there is no fact that has not been disclosed to Agent that is likely to result in a Material Adverse Effect. 
  
 (j) Financial Information. All financial statements and other data concerning Borrower and the Property that has been delivered by or on behalf of
Borrower to Agent is true, complete and correct in all material respects and has been prepared in accordance with GAAP. Since the delivery of such data, except as otherwise disclosed in writing to Agent, there has been no change in the financial
position of Borrower or the Property, or in the results of operations of Borrower, which change results or is reasonably likely to result in a Material Adverse Effect. Borrower has not incurred any obligation or liability, contingent or otherwise,
not reflected in such financial data, which is likely to have a Material Adverse Effect upon its business operations or the Property. 
  

 51 

 (k) Investment Company Act; Public Utility Holding Company Act. Borrower is not (i) an
“investment company” or a company “controlled” by an “investment company,” within the meaning of the Investment Company Act of 1940, as amended, (ii) a “holding company” or a “subsidiary company” of
a “holding company” or an “affiliate” of either a “holding company” or a “subsidiary company” within the meaning of the Public Utility Holding Company Act of 1935, as amended, or (iii) subject to any other
federal or state law or regulation which purports to restrict or regulate its ability to borrow money in accordance with this Agreement. 
  
 (l) Compliance. Borrower is in compliance with all applicable Legal Requirements, except for noncompliance that is not reasonably likely to have a
Material Adverse Effect. Borrower is not in default or violation of any order, writ, injunction, decree or demand of any Governmental Authority except for defaults or violations which are not reasonably likely to have a Material Adverse Effect.

  
 (m) Use of Proceeds; Margin Regulations. Borrower will
use the proceeds of the Loan for the purposes described in Section 2.2. No part of the proceeds of the Loan will be used for the purpose of purchasing or acquiring any “margin stock” within the meaning of Regulation U of the Board
of Governors of the Federal Reserve System or for any other purpose which would be inconsistent with such Regulation U or any other Regulations of such Board of Governors, or for any purposes prohibited by Legal Requirements. 
  
 (n) Single-Purpose Entity. 
  
 (i) Borrower at all times since its formation has been a
duly formed and existing limited liability company under the laws of the State of its formation and a Single-Purpose Entity. 
  
 (ii) Borrower at all times since its formation has complied with the provisions of its Organizational Agreement since such agreement was
executed and delivered and the laws of the State of Delaware relating to limited liability companies. 
  
 (iii) All customary formalities regarding the limited liability company existence of Borrower have been observed at all times since the
Organizational Agreement was executed and delivered. 
  
 (iv) Borrower has at all times since it began maintaining such items accurately maintained its financial statements, accounting records and other limited liability company documents separate from those of its members, Affiliates of its
members and any other Person. Borrower has not at any time since its formation commingled its assets with those of its members, any Affiliates of its members, or any other Person. Borrower has at all times since establishing its own bank accounts
accurately maintained its own bank accounts and separate books of account. 
  
 (v) Borrower has at all times since receiving funds paid its own liabilities from its own separate assets. 
  
 (vi) Borrower has at all times since its formation identified itself in all dealings with the public, under its own name and as a separate
and distinct entity. Borrower has not at any time since its formation identified itself as being a division or a part of any other entity. Borrower has not at any time since its formation identified its members or any Affiliates of its members as
being a division or part of Borrower. 
  

 52 

 (vii) Borrower is as of the date hereof adequately capitalized in light of the nature of
its business. 
  
 (viii) Borrower has not at any
time since its formation assumed or guaranteed the liabilities of its members (or any predecessor corporation, partnership or limited liability company), any Affiliates of its members, or any other Persons, except for liabilities relating to the
Collateral. Borrower has not at any time since its formation acquired obligations or securities of its members (or any predecessor corporation, partnership or limited liability company), or any Affiliates of its members or any other Person. Borrower
has not at any time since its formation pledged its assets for the benefit of any other entity (other than the Agent) or made loans or advances to its members (or any predecessor corporation, partnership or limited liability company), or any
Affiliates of its members or any other Person. 
  
 (ix) Borrower has not at any time since its formation entered into and was not a party to any transaction with its members (or any predecessor corporation, partnership or limited liability company) or any Affiliates of its members, except
for in the ordinary course of business of Borrower on terms which are no less favorable to Borrower than would be obtained in a comparable arm’s length transaction with an unrelated third party (other than in connection with the execution by
Borrower and Manager of the Management Agreement). 
  
 (o) No
Defaults. No Default or Event of Default exists under or with respect to any Loan Document. 
  
 (p) Plans and Welfare Plans. The assets of Borrower are not treated as “plan assets” under regulations currently promulgated under ERISA.
Each Plan, and, to the best knowledge of Borrower, each Multiemployer Plan, is in compliance in all material respects with, and has been administered in all material respects in compliance with, its terms and the applicable provisions of ERISA, the
Code and any other federal or state law, and no event or condition has occurred and is continuing as to which Borrower would be under an obligation to furnish a report to Lender under Section 5.1(v)(i). Other than an application for a
favorable determination letter with respect to a Plan, there are no pending issues or claims before the Internal Revenue Service, the United States Department of Labor or any court of competent jurisdiction related to any Plan or Welfare Plan. No
event has occurred, and there exists no condition or set of circumstances, in connection with any Plan or Welfare Plan under which Borrower or, to the best knowledge of Borrower, any ERISA Affiliate, directly or indirectly (through an
indemnification agreement or otherwise), is reasonably likely to be subject to any material risk of liability under Section 409 or 502(i) of ERISA or Section 4975 of the Code. No Welfare Plan provides or will provide benefits, including, without
limitation, death or medical benefits (whether or not insured) with respect to any current or former employee of Borrower, or, to the best knowledge of Borrower, any ERISA Affiliate beyond his or her retirement or other termination of service other
than (i) coverage mandated by applicable law, (ii) death or disability benefits that have been fully provided for by fully paid up insurance or (iii) severance benefits. 
  
 (q) Additional Borrower UCC Information. Borrower’s organizational identification number is 02-0698897 and the
full legal name of Borrower is as set forth on the signature pages hereof and Borrower has not done in the last five (5) years, and does not do, business under any other name (including any trade-name or fictitious business name). 
  

 53 

 (r) Not Foreign Person. Borrower is not a “foreign person” within the meaning of §
1445(f)(3) of the Code. 
  
 (s) Labor Matters. Borrower is
not a party to any collective bargaining agreements. 
  
 (t)
Pre-Closing Date Activities. Borrower has not conducted any business or other activity on or prior to the Closing Date, other than in connection with the acquisition, management and ownership of the Property. 
  
 (u) No Bankruptcies or Criminal Proceedings Involving Borrower or Related
Parties. No bankruptcy, insolvency, reorganization or comparable proceedings have ever been instituted by or against Borrower, any Affiliate of Borrower, any Guarantor or any individual or entity owning, with his, her or its family members, 20%
or more of the direct, or indirect beneficial ownership interests in Borrower (each such Guarantor, individual, or entity being herein referred to as a “Principal”), and no such proceeding is now pending or contemplated. None of Borrower,
any Principal, or to Borrower’s knowledge, any other individual or entity directly or indirectly owning or controlling, or the family members of which own or control, any direct or indirect beneficial ownership interest in Borrower or in the
Manager or asset manager for the Property, have been charged, indicted or convicted, or are currently under the threat of charge, indictment or conviction, for any felony or crime punishable by imprisonment. 
  
 Section 4.2. Representations and Warranties as to Each Property.
Borrower hereby represents and warrants to the Agent that, as to all Property, as of each Advance Closing Date: 
  
 (a) Title to the Property. Borrower owns good, marketable and insurable fee simple title to the applicable Land, free and clear of all Liens, other
than the Permitted Encumbrances applicable to the Land. Borrower owns the other Property free and clear of any and all Liens, other than Permitted Encumbrances. There are no outstanding options to purchase or rights of first refusal or restrictions
on transferability affecting such Property. 
  
 (b) Utilities
and Public Access. To the best of Borrower’s knowledge, the Property has adequate rights of access to public ways and is served by water, electric, sewer, sanitary sewer and storm drain facilities. All public utilities necessary to the
continued use and enjoyment of the Property as presently used and enjoyed are located in the public right-of-way abutting the premises, and all such utilities are connected so as to serve the Property without passing over other property except for
land or easement areas of or available to the utility company providing such utility service. All roads necessary for the full utilization of the Property for its current purpose have been completed and dedicated to public use and accepted by all
Governmental Authorities or are the subject of access easements for the benefit of the Property. 
  
 (c) Condemnation. No Taking has been commenced nor has Borrower received written notice of a Taking, with respect to all or any portion of the
Property or for the relocation of roadways providing access to the Property. 
  
 (d) Compliance. The Property is in compliance with all applicable Legal Requirements (including, without limitation, building and zoning ordinances and codes) and all applicable Insurance Requirements, except
for noncompliance which is not reasonably likely to have a Material Adverse Effect. 
  

 54 

 (e) Environmental Compliance. Except for matters set forth in the Environmental Reports delivered
to Agent in connection with the Loan (true, correct and complete copies of which have been provided to Agent by Borrower): 
  
 (i) Borrower is in full compliance with all applicable Environmental Laws with respect to the Property (which compliance includes, but is
not limited to, the possession by Borrower or the Manager of all environmental, health and safety permits, licenses and other governmental authorizations required in connection with the ownership and operation of the Property under all Environmental
Laws), except for noncompliance which is not reasonably likely to have a Material Adverse Effect. 
  
 (ii) There is no Environmental Claim pending or, to the actual knowledge of Borrower, threatened, and no penalties arising under
Environmental Laws have been assessed, against Borrower or the Manager with respect to the Property or, to the actual knowledge of Borrower, against any Person with respect to the Property whose liability for any Environmental Claim Borrower or the
Manager has or may have retained or assumed either contractually or by operation of law, and no investigation or review is pending or, to the actual knowledge of Borrower, threatened by any Governmental Authority, citizens group, employee or other
Person with respect to any alleged failure by Borrower or the Manager or the Property to have any environmental, health or safety permit, license or other authorization required under, or to otherwise comply with, any Environmental Law or with
respect to any alleged liability of Borrower or the Manager for any Use or Release of any Hazardous Substances. 
  
 (iii) There are no present and, to the actual knowledge of the Borrower, there have been no past Releases of any Hazardous Substance at,
on, in, under or from the Property that are reasonably likely to form the basis of any Environmental Claim against Borrower, the Manager or against any Person whose liability for any Environmental Claim Borrower or the Manager has or may have
retained or assumed either contractually or by operation of law. 
  
 (iv) Without limiting the generality of the foregoing, there is not present at, on, in or under the Property, PCB-containing equipment, asbestos or asbestos containing materials, underground storage tanks or surface
impoundments for Hazardous Substances, lead in drinking water (except in concentrations that comply with all Environmental Laws), or lead based paint, the presence of which is reasonably likely to result in a Material Adverse Effect. 
  
 (v) No liens are presently recorded with the appropriate
land records under or pursuant to any Environmental Law with respect to the Property and no Governmental Authority has been taking or, to the actual knowledge of Borrower, is in the process of taking any action that could subject the Property to
Liens under any Environmental Law. 
  
 (vi) There
have been no environmental investigations, studies, audits, reviews or other analyses conducted by or that are in the possession of Borrower in relation to the Property which have not been made available to the Agent. 
  
 (f) Mortgage and Other Liens. Upon filing, each Mortgage creates a
valid and enforceable first priority Lien on the Property described therein, as security for the repayment of the Indebtedness, subject only to the Permitted Encumbrances applicable to the Property. This Agreement creates a valid and enforceable
first priority Lien on all Account Collateral. Each Collateral Security Instrument establishes and creates a valid, subsisting and enforceable Lien on and a security interest in, or claim to, the rights and property described therein. All property
covered by any Collateral Security Instrument in which a security interest can be perfected by the filing of a financing statement is subject to a UCC financing statement filed and/or recorded, as appropriate (or irrevocably delivered to an agent
for such recordation or filing) in all places necessary to perfect a valid first priority Lien with respect to the rights and property that are the subject of such Collateral Security Instrument to the extent governed by the UCC. 
  

 55 

 (g) Assessments. There are no pending or, to the actual knowledge of Borrower, proposed special or
other assessments for public improvements or otherwise affecting the Property, nor are there any contemplated improvements to the Property that may result in such special or other assessments. 
  
 (h) No Joint Assessment; Separate Lots. Borrower has not suffered,
permitted or initiated the joint assessment of the Property (i) with any other real property constituting a separate tax lot, and (ii) with any portion of the Property which may be deemed to constitute personal property, or any other procedure
whereby the lien of any taxes which may be levied against such personal property shall be assessed or levied or charged to the Property as a single lien. The Property is comprised of one or more parcels, each of which constitutes a separate tax lot
and none of which constitutes a portion of any other tax lot. 
  
 (i) No Prior Assignment. The Agent is the collateral assignee of Borrower’s interest under the Leases. There are no prior assignments of the Leases or any portion of the Rent due and payable or to become due and payable which
are presently outstanding. 
  
 (j) Permits; Certificate of
Occupancy. Borrower has obtained all Permits necessary to the use and operation of the Property except where the failure to obtain such Permits is not reasonably likely to have a Material Adverse Effect. The use being made of the Property is in
conformity with the certificate of occupancy and/or such Permits for the Property and any other restrictions, covenants or conditions affecting the Property, except for non-conformity which is not reasonably likely to result in a Material Adverse
Effect. 
  
 (k) Flood Zone. Except as shown on the Survey,
the Property described therein is not located in a flood hazard area as defined by the Federal Insurance Administration. 
  
 (l) Physical Condition. Except as set forth in the Engineering Report, to the best knowledge of Borrower, the Property is free of structural
defects and all building systems contained therein are in good working order subject to ordinary wear and tear. 
  
 (m) Security Deposits. Borrower and the Manager are in compliance with all Legal Requirements relating to all security deposits with respect to the
Property, except where the failure to comply is not reasonably likely to result in a Material Adverse Effect. 
  
 (n) Intellectual Property. All material Intellectual Property that Borrower owns or has pending, or under which it is licensed, are in good
standing and uncontested. There is no right under any Intellectual Property necessary to the business of Borrower as presently conducted or as Borrower contemplates conducting its business. Borrower has not infringed, is not infringing, and has not
received notice of infringement with respect to asserted Trademarks of others. There is no infringement by others of material Intellectual Property of Borrower. 
  

(o) No Encroachments. Except as shown on the Survey, to the best knowledge of Borrower, (i) all of the Improvements which were included in
determining the appraised value of the Property lie wholly within the boundaries and building restriction lines of the Property, (ii) no improvements on adjoining properties encroach upon the Property, (iii) no easements or other encumbrances upon
the Property encroach upon any of the Improvements, so as to materially and adversely affect the value or marketability of the Property and (iv) all of the Improvements comply with all material requirements of any applicable zoning and subdivision
laws and ordinances. 
  

 56 

 (p) Management Agreement. The Management Agreement is in full force and effect. There is no
default, breach or violation existing thereunder by Borrower or, to the best knowledge of Borrower, any other party thereto and 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 default, breach or violation by Borrower or, to the best knowledge of Borrower, any other party thereunder or entitle Borrower or, to the best knowledge of Borrower, any other party thereto
to terminate any such agreement. 
  
 (q) Leases. The
Property is not subject to any Leases other than the Leases described in the rent roll or the Engineering Report delivered to Agent in connection with the making of the Loan. No person has any possessory interest in the Property or right to occupy
the same except under and pursuant to the provisions of the Leases. The current Leases are in full force and effect and there are no defaults thereunder by either party and no conditions which with the passage of time and/or notice would constitute
defaults thereunder, except for such defaults as are not reasonably likely to result in a Material Adverse Effect. 
  
 (r) Credit Lease. With respect to each CTL Property only: 
  

(1) Such CTL Property is subject to a Credit Lease; such Credit Lease is in full force and effect, and is a legal, valid, binding and
enforceable agreement of the related tenant, except as such enforcement may be limited by bankruptcy, insolvency or other laws affecting the rights of creditors generally, and general principles of equity; no uncured default by the Property-Owning
Borrower or the tenant has occurred under such Credit Lease and there is no existing condition which, but for the passage of time or the giving of notice, or both, would result in a default under the terms of such Credit Lease. 
  
 (2) Each Credit Lease is subordinate to the related
Mortgage, either pursuant to the terms and conditions of such Credit Lease or pursuant to the terms and conditions of a subordination, non-disturbance and attornment agreement between the Agent and the applicable tenant; any subleases entered into
by such tenant will be subject and subordinate to the Credit Lease and will not relieve the tenant of its obligations under the Credit Lease; in the event that the Agent acquires title to a CTL Property by foreclosure or otherwise, the lessor’s
interest under the related Credit Lease is freely assignable by the Agent and its successors and assigns to any person without the consent of the tenant, and, in the event the lessor’s interest is so assigned, the tenant will be obligated to
recognize the assignee as lessor under such Credit Lease. 
  
 (3) Each Credit Lease has an original term ending on or after the date the Property-Owning Borrower is required to deposit its final payment on the related Advance with the Lenders unless covered by extended
amortization or residual value insurance. 
  
 (4)
The monthly payment for the related Advance is less than or equal to the basic rent due under the related Credit Lease (unless an “Extended Amortization Policy” or a residual value insurance policy or cash reserves or other form of credit
enhancement has been obtained which has been in each case disclosed to Agent). 
  
 (5) There is no assignment of any Credit Lease by any tenant pending. 
  
 (6) Each tenant has agreed to notify the related mortgagee of any default under the related Credit Lease and
to provide such mortgagee with additional time and opportunity to cure. 
  

 57 

 (7) Except as otherwise disclosed to Agent with respect to tenants which are master
lessor to subtenants, each CTL Property is not subject to any lease other than the related Credit Lease, no person has any possessory interest in, or right to occupy, the related CTL Property except under and pursuant to such Credit Lease and the
tenant under the related Credit Lease is in occupancy of the entire Property. 
  
 (8) No tenant under a Credit Lease (nor Lease Guarantor, if applicable) has been released, in whole or in part, from its obligations under the Credit Lease (or Lease Guaranty, as applicable). 
  
 (9) Under the terms of the Credit Lease, the tenant is not
permitted to assign or sublet its interest or obligations under the Credit Lease unless such tenant remains fully liable thereunder. 
  
 (10) Each tenant under a Credit Lease is required (or has been irrevocably directed) to make all rental payments directly to the
Collection Account or a lockbox established by the Property-Owning Borrower which provides for automatic sweep of deposits to the Collection Account. 
  
 (11) With respect to any Credit Lease guaranteed by the parent or affiliate of a tenant, each existing Lease Guaranty is in full force and
effect, and no default exists thereunder. 
  
 (12) With respect to any Credit Lease that is not a Triple Net Lease or Double Net Lease, such Credit Lease is a bondable lease with no termination or rent abatement rights by the tenant, except in connection with the exercise of a purchase
option; the obligations of any tenant under such lease (including, but not limited to, the obligation of the tenant to pay fixed and additional rent), are not affected by reason of any damage to or destruction of any portion of the CTL Property, any
taking of the CTL Property or any part thereof by condemnation or otherwise, or any prohibition, limitation, interruption, restriction, or interference of the tenant’s use, occupancy or enjoyment of the CTL Property. 
  
 (13) Each Credit Lease contains no monetary obligations or
obligations associated with managing, owning, developing and operating the CTL Property (including, but not limited to, the costs associated with utilities, taxes, insurance, capital and structural improvements and maintenance and repairs), on the
part of the Property-Owning Borrower unless such obligations are fully reimbursable or have been paid by the tenant. 
  
 (14) Each Credit Lease contains customary and enforceable provisions which render the rights and remedies of the lessor thereunder
adequate for the enforcement and satisfaction of the lessor’s rights thereunder. 
  
 (15) Any anticipated maintenance, repair, or replacement obligations imposed by any easement or reciprocal easement agreement either is a
direct obligation of the tenant or an adjacent property owner or is an obligation or liability of the Property-Owning Borrower, reimbursable by the tenant, or has been reserved for under the Loan Documents. 
  
 (16) The Credit Lease cannot be modified without the consent
of the mortgagee thereunder. 
  
 (17) Except for
(a) a termination due to a default by the Property-Owning Borrower under the Credit Lease or (b) a termination due to casualty or condemnation, no tenant 
  

 58 

 can terminate a Credit Lease for any reason prior to the payment in full of or the payment of funds
sufficient to pay in full (1) the principal balance of the related Advance, (2) all accrued and unpaid interest on the related Advance and (3) any other sums due and payable under the related Advance, as of the termination date. 
  
 (18) No right or claim of rescission, offset, abatement,
diminution, defense or counterclaim to a Credit Lease has been asserted with respect thereto, nor is there any existing condition which, but for the passage of time or giving of notice, would result in a right or claim of rescission, offset,
abatement, diminution, defense or counterclaim under the terms of any Credit Lease (other than for nonmaterial punch list items). 
  
 (19) The obligations of the tenant under any Credit Lease (including, but not limited to, the obligations of the tenant to pay fixed and
additional rent), are not affected by reason of any damage to or destruction of any portion of the leased property or any taking of the leased property or any part thereof by condemnation or otherwise, except for CTL Properties subject to casualty
and condemnation lease enhancement policies or which permit termination of rent only pursuant to exercise of a funding option sufficient to pay the Advance in full. 
  
 (20) In the case of a Credit Lease with a “lease enhancement policy” and/or an “extended
amortization policy” and/or residual value insurance policy, the entire premium has been paid in full for each such policy (or is required to be paid within thirty days after the related closing date), such policies are each in full force and
effect, and the legal, valid and binding obligation of the insurer thereunder, enforceable in accordance with their respective terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, receivership, moratorium or
other laws relating to or affecting the rights of creditors generally and by general principles of equity (regardless of whether such enforcement is considered in a proceeding in equity or at law). 
  
 (s) Ground Lease. Other than the Ground Lease, the Property does not
consist of a leasehold estate in whole or in part. With respect to the Ground Lease: 
  
 (i) The Ground Lease or a memorandum thereof, including all amendments and modifications thereto, or a separate agreement signed by the
applicable lessor has been duly recorded and by its terms permits the interest of the Borrower thereunder to be encumbered by the applicable Mortgage and there has been no change in the terms of the Ground Lease since its recordation. 
  
 (ii) The Ground Lease is not subject to any Liens or
encumbrances other than the Mortgage, subject to the Permitted Encumbrances, and the Ground Lease is prior to all Liens, charges and encumbrances on the fee interest of the lessor thereunder. 
  
 (iii) The Ground Lease is valid and subsisting and is in
full force and effect in accordance with its terms and no uncured default has occurred under the Ground Lease. 
  
 (iv) The Mortgage encumbering the Ground Lease conforms and complies with the Ground Lease, does not constitute a violation or default
under the Ground Lease, and is and shall at all times constitute a valid Lien (subject only to Permitted Encumbrances) on the Borrower’s entire estate under the Ground Lease. 
  
 (v) All Ground Rent due and payable through and including the Advance Closing Date therefor has been paid.

  

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 (vi) All terms, conditions, and agreements contained in the Ground Lease have been
performed to the extent they apply to periods through and including the Advance Closing Date therefor. 
  
 (viii) The Ground Lease grants any leasehold mortgagee standard protections necessary to protect the security of a leasehold mortgagee
(including the right of the leasehold mortgagee to receive notice of lessee’s default under the Ground Lease, the right of the leasehold mortgagee, with adequate time, to cure such default and, in the case of incurable defaults of lessee, the
right of the leasehold mortgagee to enter into a new Ground Lease with lessor on the same terms as the existing Ground Lease). 
  
 (ix) The Ground Lease has a term (inclusive of any exercised renewal or extension periods) which extends not less than twenty (20) years
beyond the Maturity Date. 
  
 (x) The Ground
Lease requires the lessor to enter into a New Ground Lease upon the termination of the Ground Lease for any reason, including the rejection of a Ground Lease in bankruptcy. 
  
 Section 4.3. Survival of Representations. Borrower agrees that (i) all of the representations and warranties of
Borrower set forth in Section 4.1 and 4.2 and in the other Loan Documents delivered on the Closing Date are made as of the Closing Date, and (ii) all representations and warranties made by Borrower shall survive the delivery of the
Note and making of the Loan and continue for so long as any amount remains owing to the Lenders under this Agreement, the Note or any of the other Loan Documents; provided, however, that the representations set forth in Section
4.2(e) shall survive in perpetuity. All representations, warranties, covenants and agreements made in this Agreement or in the other Loan Documents shall be deemed to have been relied upon by the Lenders and Collateral Agent notwithstanding any
investigation heretofore or hereafter made by the Lenders and Collateral Agent or on their behalf. 
  
 ARTICLE V. 
 AFFIRMATIVE COVENANTS 
  
 Section 5.1. Affirmative Covenants. Borrower covenants and agrees
that, from the date hereof and until payment in full of the Indebtedness: 
  
 (a) Existence; Compliance with Legal Requirements: Insurance. Borrower shall do or cause to be done all things necessary to preserve, renew and keep in full force and effect its existence as a limited liability
company, rights, licenses, Permits and franchises necessary for the conduct of its business and comply with all Legal Requirements and Insurance Requirements applicable to it and the Property, except for such non-compliance which is not reasonably
likely to result in a Material Adverse Effect. Borrower shall at all times maintain, preserve and protect all franchises and trade names and preserve all the remainder of its property necessary for the continued conduct of its business and keep the
Property in good repair, working order and condition, except for reasonable wear and use (and except for casualty losses as to which other provisions hereof shall govern), and from time to time make, or cause to be made, all reasonably necessary
repairs, renewals, replacements, betterments and improvements thereto. Borrower shall or shall cause its tenants to keep the Property insured at all times, by financially sound and reputable insurers, to such extent and against such risks, and
maintain liability and such other insurance, as more fully provided in this Agreement, and otherwise perform and comply with all obligations of Borrower under the Mortgages. 
  

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 (b) Basic Carrying Costs and Other Claims. Borrower shall pay and discharge all Impositions, as
well as all lawful claims for labor, materials and supplies or otherwise when due and payable all as more fully provided in, and subject to any rights to contest contained in, the Mortgage. Borrower shall pay all Basic Carrying Costs with respect to
Borrower and the Property in accordance with the provisions of the Mortgage and this Agreement, subject, however, to Borrower’s rights to contest payment of Impositions in accordance with the Mortgage. Borrower’s obligation to pay Basic
Carrying Costs pursuant to this Agreement shall include, to the extent permitted by applicable law, Impositions resulting from future changes in law which impose upon a Lender an obligation to pay any property taxes on the Property or other
Impositions. Borrower shall (x) pay its trade payables within forty-five (45) days from the date such trade payables are incurred and (y) not permit its trade payables to exceed 2% of the Principal Indebtedness. 
  
 (c) Litigation. Borrower shall give prompt written notice to Agent of
any litigation or governmental proceedings pending or threatened (in writing) against Borrower, or the Property which is reasonably likely to have a Material Adverse Effect. 
  
 (d) Environmental Remediation. 
  
 (i) If any investigation, site monitoring, cleanup, removal, restoration or other remedial work of any kind
or nature is required pursuant to an order or directive of any Governmental Authority or under any applicable Environmental Law, because of or in connection with the current or future presence, suspected presence, Release or suspected Release of a
Hazardous Substance on, under or from the Property or any portion thereof (collectively, the “Remedial Work”), Borrower shall promptly commence and diligently prosecute to completion all such Remedial Work, and shall conduct such
Remedial Work in accordance with applicable Environmental Laws. In all events, such Remedial Work shall be commenced within such period of time as required under any applicable Environmental Law; provided, however, that Borrower shall
not be required to commence such Remedial Work within the above specified time periods: (x) if prevented from doing so by any Governmental Authority, (y) if commencing such Remedial Work within such time periods would result in Borrower or such
Remedial Work violating any Environmental Law or (z) if Borrower, at its expense and after prior notice to Agent, is contesting by appropriate legal, administrative or other proceedings conducted in good faith and with due diligence the need to
perform Remedial Work, as long as (1) Borrower is permitted by the applicable Environmental Laws to delay performance of the Remedial Work pending such proceedings, (2) neither the Property nor any part thereof or interest therein shall be sold,
forfeited or lost if Borrower does not perform the Remedial Work being contested, and Borrower would have the opportunity to do so, in the event of Borrower’s failure to prevail in the contest, (3) the Lenders would not, by virtue of such
permitted contest, be exposed to any risk of any civil liability for which Borrower has not furnished additional security as provided in clause (4) below, or to any risk of criminal liability, and neither the Property nor any interest therein
would be subject to the imposition of any lien for which Borrower has not furnished additional security as provided in clause (4) below, as a result of the failure to perform such Remedial Work and (4) Borrower shall have furnished to the
Agent additional security in respect of the Remedial Work being contested and the loss or damage that may result from Borrower’s failure to prevail in such contest in such amount as may be reasonably requested by the Agent. 
  
 (ii) If requested by the Agent, all Remedial Work under
clause (A) above shall be performed by contractors, and under the supervision of a consulting Engineer, each approved in advance by the Agent which approval shall not be unreasonably withheld or delayed. Borrower shall pay all costs and
expenses reasonably incurred in connection with such Remedial Work. If Borrower does not timely commence and diligently prosecute to completion the Remedial Work, 
  

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 the Agent may (but shall not be obligated to), upon 30 days prior written notice to Borrower of its
intention to do so, cause such Remedial Work to be performed. Borrower shall pay or reimburse the Agent on demand for all expenses (including reasonable attorneys’ fees and disbursements, but excluding internal overhead, administrative and
similar costs of the Lenders) reasonably relating to or incurred by the Agent in connection with monitoring, reviewing or performing any Remedial Work in accordance herewith. 
  
 (iii) Borrower shall not commence any Remedial Work under clause (A) above, nor enter into any
settlement agreement, consent decree or other compromise relating to any Hazardous Substances or Environmental Laws without providing notice to the Agent as provided in Section 5.1(f). Notwithstanding the foregoing, if the presence or
threatened presence of Hazardous Substances on, under, about or emanating from the Property poses an immediate threat to the health, safety or welfare of any Person or the environment, or is of such a nature that an immediate response is necessary
or required under applicable Environmental Law, Borrower may complete all necessary Remedial Work. In such events, Borrower shall notify Agent as soon as practicable and, in any event, within three Business Days, of any action taken. 
  
 (e) Environmental Matters: Inspection. 
  
 (i) Borrower shall not permit a Hazardous Substance to be
present on, under or to emanate from the Property, or migrate from adjoining property controlled by Borrower onto or into the Property, except under conditions permitted by applicable Environmental Laws and, in the event that such Hazardous
Substances are present on, under or emanate from the Property, or migrate onto or into the Property, Borrower shall cause the removal or remediation of such Hazardous Substances, in accordance with this Agreement and Environmental Laws, either on
its own behalf or by causing a tenant or other party primarily at fault to perform such removal and remediation. Borrower shall use commercially reasonable efforts to prevent, and to seek the remediation of, any migration of Hazardous Substances
onto or into the Property from any adjoining property. 
  
 (ii) Upon reasonable prior written notice, the Agent shall have the right, except as otherwise provided under Leases, at all reasonable times during normal business hours to enter upon and inspect all or any portion of the Property,
provided that such inspections shall not unreasonably interfere with the operation or the tenants, residents or occupants of the Property. If the Agent has reasonable grounds to suspect that Remedial Work may be required, the Agent shall
notify Borrower and, thereafter, may select a consulting Engineer to conduct and prepare reports of such inspections (with notice to Borrower prior to the commencement of such inspection). Borrower shall be given a reasonable opportunity to review
any reports, data and other documents or materials reviewed or prepared by the Engineer, and to submit comments and suggested revisions or rebuttals to same. The inspection rights granted to the Agent in this Section 5.1(e) shall be in
addition to, and not in limitation of, any other inspection rights granted to the Agent in this Agreement, and shall expressly include the right (if the Agent reasonably suspects that Remedial Work may be required) to conduct soil borings, establish
ground water monitoring wells and conduct other customary environmental tests, assessments and audits. 
  

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 (iii) Borrower agrees to bear and shall pay or reimburse the Lenders on demand for all
sums advanced and reasonable expenses incurred (including reasonable attorneys’ fees and disbursements, but excluding internal overhead, administrative and similar costs of the Lenders) reasonably relating to, or incurred by Lenders in
connection with, the inspections and reports described in this Section 5.1(e)(to the extent such inspections and reports relate to the Property) in the following situations: 
  
 (x) If the Agent has reasonable grounds to believe, at the
time any such inspection is ordered, that there exists an occurrence or condition that could lead to an Environmental Claim; 
  
 (y) If any such inspection reveals an occurrence or condition that is reasonably likely to lead to an Environmental Claim; or 

 
 (z) If an Event of Default with respect to the Property
exists at the time any such inspection is ordered, and such Event of Default relates to any representation, covenant or other obligation pertaining to Hazardous Substances, Environmental Laws or any other environmental matter. 
  
 (f) Environmental Notices. Borrower shall promptly provide notice to
Agent of: 
  
 (i) any Environmental Claim
asserted by any Governmental Authority with respect to any Hazardous Substance on, in, under or emanating from the Property, which might involve remediation cost or liability greater than $25,000; 
  
 (ii) any proceeding, investigation or inquiry commenced or
threatened in writing by any Governmental Authority, against Borrower, with respect to the presence, suspected presence, Release or threatened Release of Hazardous Substances from or onto, in or under any property not owned by Borrower (including,
without limitation, proceedings under the Comprehensive Environmental Response, Compensation, and Liability Act, as amended, 42 U.S.C. §9601, et seq.), which might involve remediation cost or liability greater than $25,000; 

 
 (iii) all Environmental Claims asserted or threatened
against Borrower with respect to the Property, against any other party occupying the Property or any portion thereof which become known to Borrower or against the Property, which might involve remediation cost or liability greater than $25,000;

  
 (iv) the discovery by Borrower of any
occurrence or condition on the Property which could involve remediation cost or liability greater than $25,000; 
  
 (v) the commencement or completion of any Remedial Work, which might involve remediation cost or liability greater than $25,000; and

  
 (vi) any of the foregoing clauses (i) –
(v) that a tenant notifies to Borrower under a Lease with respect to such tenant. 
  
 (g) Copies of Notices. Borrower shall transmit to the Agent copies of any citations, orders, notices or other written communications received from any Person and any notices, reports or other written
communications submitted to any Governmental Authority with respect to the matters described in Section 5.1(f). 
  
 (h) Environmental Claims. The Agent may join and participate in, as a party if the Agent so determines, any legal or administrative proceeding or
action concerning the Property or any portion thereof under any Environmental Law, if, in the Agent’s reasonable judgment, the interests of the Lenders shall not be adequately protected by Borrower; provided, however, that the
Lenders shall not participate in day-to-day decision making with respect to environmental compliance. Borrower shall pay or reimburse the Lenders on demand for all reasonable sums advanced and reasonable expenses incurred (including reasonable
attorneys’ fees and disbursements, but excluding internal overhead, administrative and similar costs of the Lenders) by the Lenders in connection with any such action or proceeding. 
  

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 (i) Environmental Indemnification. Borrower shall indemnify, reimburse, defend, and hold harmless
the Agent, each Lender, the Collateral Agent and each of its respective parents, subsidiaries, Affiliates, shareholders, directors, officers, employees, representatives, agents, successors, assigns and attorneys (collectively, the
“Indemnified Parties”) for, from, and against all demands, claims, actions or causes of action, assessments, losses, damages, liabilities, costs and expenses (including, without limitation, interest, penalties, reasonable
attorneys’ fees, disbursements and expenses, and reasonable consultants’ fees, disbursements and expenses (but excluding internal overhead, administrative, lost opportunity and similar costs of the Lenders and the Collateral Agent)),
asserted against, resulting to, imposed on, or incurred by any Indemnified Party, directly or indirectly, in connection with any of the following (except to the extent same are directly and solely caused by the gross negligence or willful misconduct
of any Indemnified Party and except that any Indemnified Party shall not be indemnified against claims resulting from actions taken or events occurring with respect to the Property after the Agent forecloses its Lien or security interest upon the
Property or accepts a deed in lieu of foreclosure or is a so-called “mortgagee-in-possession” unless and to the extent such indemnification relates to any of the following which occurred while Borrower owned the Property): 
  
 (a) events, circumstances, or conditions which form the
reasonable basis for an Environmental Claim; 
  
 (b) any pollution or threat to human health or the environment that is related in any way to Borrower’s or any previous owner’s or operator’s management, use, control, ownership or operation of the Property (including,
without limitation, all on-site and off-site activities involving Hazardous Substances), and whether occurring, existing or arising prior to or from and after the date hereof, and whether or not the pollution or threat to human health or the
environment is described in the Environmental Reports; 
  
 (c) any Environmental Claim against any Person whose liability for such Environmental Claim Borrower has or may have assumed or retained either contractually or by operation of law; or 
  
 (d) the breach of any representation, warranty or covenant
set forth in Section 4.2(e) and Sections 5.1(d) through 5.1(i), inclusive. 
  
 The provisions of and undertakings and indemnification set forth in this Section 5.1(i) shall survive the satisfaction and payment of the Indebtedness and termination of this Agreement. 
  
 (j) General Indemnity. 
  
 (i) Borrower shall, at its sole cost and expense, protect,
defend, indemnify, release and hold harmless the Indemnified Parties for, from and against any and all claims, suits, liabilities (including, without limitation, strict liabilities), administrative and judicial actions and proceedings, obligations,
debts, damages, losses, costs, expenses, fines, penalties, charges, fees, expenses, judgments, awards, amounts paid in settlement, and litigation costs, of whatever kind or nature and whether or not incurred in connection with any judicial or
administrative proceedings (including, but not limited to, reasonable attorneys’ fees and other reasonable costs of defense) (the “Losses”) imposed upon or incurred by or asserted against any Indemnified Parties (except to the
extent same are directly and solely caused by the gross negligence or willful misconduct of any Indemnified Party) and directly or indirectly arising out of or in any way relating to any one or more of the following: 
  
 (A) ownership of the Note, any of the other Loan Documents
or the Property or any interest therein or receipt of any Rents or Accounts; 
  

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 (B) any untrue statement of any material fact contained in any information provided by
Borrower, the Property or the Loan or the omission to state therein a material fact required to be stated in such information or necessary in order to make the statements in such information or in light of the circumstances under which they were
made not misleading; 
  
 (C) any and all lawful
action that may be taken and is taken by the Lender in connection with the enforcement of the provisions of this Agreement, the Note or any of the other Loan Documents, whether or not suit is filed in connection with same, or in connection with
Borrower or any Affiliate of Borrower becoming a party to a voluntary or involuntary federal or state bankruptcy, insolvency or similar proceeding; 
  
 (D) any accident, injury to or death of persons or loss of or damage to property occurring in, on or about the Property or any part
thereof or on the adjoining sidewalks, curbs, adjacent property or adjacent parking areas, streets or ways; 
  
 (E) any use, nonuse or condition in, on or about the Property or any part thereof or on the adjoining sidewalks, curbs, adjacent property
or adjacent parking areas, streets or ways; 
  
 (F) any failure on the part of Borrower to perform or be in compliance with any of the terms of this Agreement or any of the other Loan Documents; 
  
 (G) performance of any labor or services or the furnishing of any materials or other property in respect of the Property or any part
thereof pursuant to provisions of this Agreement; 
  
 (H) the failure of Borrower to file timely with the Internal Revenue Service an accurate Form 1099-B, Statement for Recipients of Proceeds from Real Estate, Broker and Barter Exchange Transactions, which may be required in connection with
this Agreement; 
  
 (I) any failure of the
Property to be in compliance with any Legal Requirement; 
  
 (J) the enforcement by any Indemnified Party of the provisions of this Section 5.1(j); and 
  
 (K) any and all claims and demands whatsoever which may be asserted against the Lenders by reason of any alleged obligations or
undertakings on its part to perform or discharge any of the terms, covenants, or agreements contained in any Lease. 
  
 Any amounts payable to an Indemnified Party by reason of the application of this Section 5.1(j)(i) shall become due and payable ten (10) days after written demand
and shall bear interest at the Default Rate from the tenth (10th) day after demand until paid. 
  

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 (ii) Borrower shall, at its sole cost and expense, protect, defend, indemnify, release
and hold harmless the Indemnified Parties from and against any and all Losses imposed upon or incurred by or asserted against any of the Indemnified Parties and directly or indirectly arising out of or in any way relating to any tax on the making
and/or recording of this Agreement, the Note or any of the other Loan Documents. 
  
 (iii) Borrower shall, at its sole cost and expense, protect, defend, indemnify, release and hold harmless the Indemnified Parties from and
against any and all Losses (including, without limitation, reasonable attorneys’ fees and costs incurred in the investigation, defense, and settlement of Losses incurred in correcting any prohibited transaction or in the sale of a prohibited
loan, and in obtaining any individual prohibited transaction exemption under ERISA that may be required, in the Lender’s reasonable discretion) that the Indemnified Parties may incur, directly or indirectly, as a result of a default under
Borrower’s covenants with respect to ERISA and employee benefits plans contained herein. 
  
 (iv) Promptly after receipt by an Indemnified Party under this Section 5.1(j) of notice of the making of any claim or the
commencement of any action, such Indemnified Party shall, if a claim in respect thereof is to be made by such Indemnified Party against Borrower under this Section 5.1(j), notify Borrower in writing, but the omission so to notify
Borrower will not relieve Borrower from any liability which it may have to any Indemnified Party under this Section 5.1(j) or otherwise unless and to the extent that Borrower did not otherwise possess knowledge of such claim or action and
such failure resulted in the forfeiture by Borrower of substantial rights and defenses. In case any such claim is made or action is brought against any Indemnified Party and such Indemnified Party seeks or intends to seek indemnity from Borrower,
Borrower will be entitled to participate in, and, to the extent that it may wish, to assume the defense thereof with counsel reasonably satisfactory to the Indemnified Party; and, upon receipt of notice from Borrower to such Indemnified Party of its
election so to assume the defense of such claim or action and only upon approval by the Indemnified Party of such counsel (such approval not to be unreasonably withheld or delayed), Borrower will not be liable to such Indemnified Party under this
Section 5.1(j) for any legal or other expenses subsequently incurred by such Indemnified Party in connection with the defense thereof. Notwithstanding the preceding sentence, each Indemnified Party will be entitled to employ counsel
separate from such counsel for Borrower and from any other party in such action if such Indemnified Party reasonably determines that a conflict of interest exists which makes representation by counsel chosen by Borrower not advisable. In such event,
Borrower shall pay the reasonable fees and disbursements of such separate counsel, subject to reimbursement of such costs if the Indemnified Party requiring such separate counsel is found not to be entitled to the indemnity protection of this
Section 5.1(j). Borrower shall not, without the prior written consent of an Indemnified Party, settle or compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect
of which indemnification may be sought hereunder (whether or not such Indemnified Party is an actual or potential party to such claim or action) unless such settlement, compromise or consent includes an unconditional release of each Indemnified
Party from all liability arising out of such claim, action, suit or proceeding. Each Indemnified Party shall not enter into a settlement of or consent to the entry of any judgment with respect to any action, claim, suit or proceeding as to which an
Indemnified Party would be entitled to indemnification hereunder without the prior written consent of Borrower. 
  
 The provisions of and undertakings and indemnification set forth in this Section 5.1(j) shall survive the satisfaction and payment of the Indebtedness and
termination of this Agreement. 
  

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 (k) Access to Property. Borrower shall permit agents, representatives and employees of the Agent
to inspect the Property or any part thereof at such reasonable times as may be requested by Agent upon reasonable advance written notice, subject, however, to the rights of Borrower and of the tenants of the Property. 
  
 (l) Notice of Default. Borrower shall promptly advise Agent in writing
of any change in Borrower’s condition, financial or otherwise, that is reasonably likely to have a Material Adverse Effect, or of the occurrence of any Default or Event of Default. 
  
 (m) Cooperate in Legal Proceedings. Except with respect to any claim by Borrower, the Managing Member or the
Guarantor against the Agent or any Lender, Borrower shall reasonably cooperate with Agent with respect to any proceedings before any Governmental Authority that are reasonably likely to in any way materially affect the rights of the Lenders
hereunder or any rights obtained by the Lenders under any of the Loan Documents and, in connection therewith, shall not prohibit Agent, at its election, from participating in any such proceedings. 
  
 (n) Perform Loan Documents. Borrower shall observe, perform and
satisfy all the terms, provisions, covenants and conditions required to be observed, performed or satisfied by it, and shall pay when due all costs, fees and expenses required to be paid by it, under the Loan Documents. 
  
 (o) Insurance Benefits. Borrower shall reasonably cooperate with Agent
in obtaining for the Lenders the benefits of any Insurance Proceeds lawfully or equitably payable to Borrower or Lenders in connection with the Property. Agent shall be reimbursed for any expenses reasonably incurred in connection therewith
(including reasonable attorneys’ fees and disbursements, but excluding internal overhead, administrative and similar costs of Agent) out of such Insurance Proceeds, all as more specifically provided in this Agreement. 
  
 (p) Further Assurances. Borrower shall, at Borrower’s sole cost
and expense: 
  
 (i) upon Agent’s reasonable
request therefor given from time to time, pay for (a) reports of UCC, tax lien, judgment and litigation searches with respect to Borrower, and (b) searches of title to the Property, each such search to be conducted by search firms designated by
Agent in each of the locations designated by Agent; 
  
 (ii) furnish to Agent all instruments, documents, certificates, title and other insurance reports and agreements, and each and every other document, certificate, agreement and instrument required to be furnished pursuant to the terms of the
Loan Documents; 
  
 (iii) execute and deliver to
Agent such documents, instruments, certificates, assignments and other writings, and do such other acts necessary, to evidence, preserve and/or protect the Collateral at any time securing or intended to secure the Note, as Agent may reasonably
require (including, without limitation, tenant estoppel certificates, an amended or replacement Mortgage, UCC financing statements or Collateral Security Instruments); and 
  
 (iv) do and execute all and such further lawful and reasonable acts, conveyances and assurances for the
better and more effective carrying out of the intents and purposes of this Agreement and the other Loan Documents, as Agent shall reasonably require from time to time. 
  

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 (q) Management of Property. 
  
 (i) The Property shall be managed at all times by the Manager or another manager reasonably satisfactory to
Agent, pursuant to a Management Agreement. Any such manager may be an Affiliate of Borrower, provided that: (a) the terms and conditions of such manager’s engagement are at arm’s length, reasonable, competitive and customary in the
applicable marketplace; and (b) Agent has approved such manager and such terms, which approval shall not be unreasonably withheld or delayed. Borrower shall cause the manager of the Property to agree that such manager’s management agreement is
subject and subordinate in all respects to the Lien of the Mortgage. A Management Agreement may be terminated (1) by Borrower at any time in accordance with the provisions of such Management Agreement so long as a successor manager as specified
below shall have been appointed and such successor manager has (i) entered into a Management Agreement, subject to any modifications approved by Agent, which approval shall not be unreasonably denied, conditioned or delayed, and (ii) has executed
and delivered the Manager’s Subordination to Agent, and (2) by Agent upon thirty (30) days’ prior written notice to Borrower and the Manager (a) upon the occurrence and continuation of an Event of Default or (b) if the Manager commits any
act which would permit termination under the Management Agreement (subject to any applicable notice, grace and cure periods provided in the Management Agreement). Borrower may from time to time appoint a successor manager to manage the Property with
Agent’s prior written consent, such consent not to be unreasonably withheld. Notwithstanding the foregoing, any successor manager selected hereunder by Agent or Borrower to manage the Property shall be a reputable management company having
substantial experience in the management of real property of a similar type, size and quality in the state in which the Property is located. Borrower further covenants and agrees that any manager of Property shall at all times while any Indebtedness
is outstanding maintain worker’s compensation insurance as required by Governmental Authorities. 
  
 (ii) Borrower further covenants and agrees that the Property shall be operated pursuant to the Management Agreement and that Borrower
shall: (w) promptly perform and/or observe all of the material covenants and agreements required to be performed and observed by it under the Management Agreement and do all things reasonably necessary to preserve and to keep unimpaired its material
rights thereunder; (x) promptly notify the Agent of any material default under the Management Agreement of which it is aware; (y) promptly deliver to the Agent a copy of each financial statement, business plan, capital expenditures plan, notice and
report received by it under the Management Agreement, including, but not limited to, financial statements; and (z) promptly enforce the performance and observance of the covenants and agreements required to be performed and/or observed by the
Manager under the Management Agreement. 
  
 (r) Financial
Reporting. 
  
 (i) Borrower shall keep and
maintain or shall cause to be kept and maintained on a Fiscal Year basis in accordance with GAAP consistently applied, books, records and accounts reflecting in reasonable detail all of the financial affairs of Borrower and all items of income and
expense in connection with the operation of the Property and ownership of the Property and in connection with any services, equipment or furnishings provided in connection with the operation of the Property, whether such income or expense may be
realized by Borrower or by any other Person whatsoever. Agent shall have the right from time to time at all times during normal business hours upon reasonable prior written notice to Borrower to examine such books, records and accounts at the office
of Borrower or other Person maintaining such books, records and accounts and to make such copies or extracts thereof as Agent shall desire. During the continuation of an Event of Default (including, without limitation, an Event of Default resulting

  

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 from the failure of the Borrower to deliver any of the financial information required to be delivered
pursuant to this Section 5.1(r)), Borrower shall pay any reasonable costs and expenses incurred by Agent to examine Borrower’s accounting records, as Agent shall reasonably determine to be necessary or appropriate in the protection of
the Lenders’ interest. 
  
 (ii) Borrower
shall furnish to Agent annually, within one hundred twenty (120) days following the end of each Fiscal Year, a complete copy of Borrower’s unaudited financial statement in accordance with GAAP consistently applied (which may be prepared
internally) covering Borrower’s financial position and results of operations, for such Fiscal Year and containing a statement of revenues and expenses, a statement of assets and liabilities and a statement of Borrower’s equity, all of
which shall be in form and substance reasonably acceptable to Agent. Agent shall have the right from time to time to review and consult with respect to the accounting procedures used in the preparation of such annual financial statements. Together
with Borrower’s annual financial statements, Borrower shall furnish to Agent an Officer’s Certificate certifying as of the date thereof (x) that the annual financial statements present fairly in all material respects the results of
operations and financial condition of Borrower all in accordance with GAAP consistently applied, and (y) whether there exists an Event of Default or Default, and if such Event of Default or Default exists, the nature thereof, the period of time it
has existed and the action then being taken to remedy same. 
  
 (iii) Borrower shall furnish to Agent, within sixty (60) days following the end of each Fiscal Year quarter a true, complete and correct quarterly unaudited financial statement prepared in accordance with GAAP with
respect to Borrower for the portion of the Fiscal Year then ended. 
  
 (iv) Borrower shall furnish to Agent, within thirty (30) Business Days after request, such further information with respect to the operation of the Property and the financial affairs of Borrower as may be reasonably
requested by Agent, including all business plans prepared for Borrower. 
  
 (v) Borrower shall furnish to Agent, within thirty (30) Business Days after request, such further information regarding any Plan or Multiemployer Plan and any reports or other information required to be filed under
ERISA as may be reasonably requested by Agent in writing. 
  
 (vi) At least thirty (30) days prior to the end of each of Borrower’s Fiscal Years, Borrower shall submit or cause to be submitted to Agent for its approval, such approval not to be unreasonably withheld or
delayed, an Operating Budget for Property Expenses, Capital Improvement Costs, Leasing Commissions, TI Costs and replacement reserve costs for the next Fiscal Year for the Property. Until so approved by Agent for the subsequent Fiscal Year, the
Operating Budget approved by Agent for the preceding Fiscal Year shall remain in effect for purposes of Section 3.12; provided, that for so long as such prior Operating Budget remains in effect, amounts set forth in the prior Operating
Budget with respect to Property Expenses, TI Costs and Leasing Commissions shall be deemed increased on a percentage basis by an amount equal to the greater of (x) actual increases then known to Borrower and (y) the increase in the Consumer Price
Index (expressed as a percentage) as measured over the calendar year that the prior Operating Budget was in effect. 
  
 (vii) No later than thirty (30) days following the end of each calendar quarter, beginning with the first calendar quarter end after the
related Advance Closing Date, Borrower shall prepare and deliver to the Agent and the Collateral Agent a statement (each a “Quarterly Statement”) in hard copy and on diskette and/or a copy through electronic mail, in form and
substance reasonably satisfactory to Agent, setting forth with respect to the related Property, 
  

 69 

 (A) a rent roll dated as of the last day of such quarter in a form acceptable to the
Agent, identifying each of the Leases and containing any information reasonably required by Agent; and 
  
 (B) monthly and year-to-date operating statements prepared for each calendar month during each such quarter, each of which shall include
an itemization of actual (not pro forma) capital expenditures during the applicable period. 
  
 (s) Operation of Property. Borrower shall cause the operation of the Property to be conducted at all times in a manner consistent with at least the level of operation of the Property as of the Closing Date,
including, without limitation, the following: 
  
 (i) to maintain or cause to be maintained the standard of the Property at all times at a level not lower than that maintained by prudent managers of similar facilities or land in the region where the Property is located; and 
  
 (ii) to operate or cause to be operated the Property in a
prudent manner in compliance in all material respects with applicable Legal Requirements and Insurance Requirements relating thereto and maintain or cause to be maintained all licenses, Permits and any other agreements necessary for the continued
use and operation of the Property. 
  
 (t) Single-Purpose
Entity. 
  
 (i) Borrower at all times will
continue to be a duly formed and validly existing limited liability company under the laws of the State of its formation and a Single-Purpose Entity. 
  
 (ii) Borrower shall at all times comply with the provisions of its Organizational Agreement and the laws of the State of its formation
relating to limited liability companies. 
  
 (iii) Borrower shall observe all customary formalities regarding its existence. 
  
 (iv) Borrower shall accurately maintain its financial statements, accounting records and other corporate documents separate from those of
its members, Affiliates of its members and any other Person. Borrower shall not commingle its assets with those of its members, any Affiliates of its members, or any other Person. Borrower shall continue to accurately maintain its own bank accounts
and separate books of account. 
  
 (v) Borrower
shall continue to pay its own liabilities from its own separate assets. 
  
 (vi) Borrower shall continue to identify itself in all dealings with the public, under its own name or trade names and as a separate and distinct entity. Borrower will not identify itself as being a division or a part
of any other entity. Borrower will not identify its members or any Affiliates of its members as being a division or part of Borrower. 
  
 (vii) Borrower shall continue to be adequately capitalized in light of the nature of its business. 
  

 70 

 (viii) Borrower shall not assume or guarantee the liabilities of its members, any
Affiliates of its members or any other Persons, except for liabilities relating to the Property. Borrower shall not acquire obligations or securities of its members, or any Affiliates of its members or any other Persons. Except for the Liens granted
pursuant to the Loan Documents, Borrower shall not pledge its assets for the benefit of any other Person (other than the Agent) or make loans or advances to its members (or any predecessor corporation), or any Affiliates of its members or any other
Persons. 
  
 (ix) Borrower shall not enter into
or be a party to any transaction with its members or any Affiliates of its members, except for in the ordinary course of business on terms which are no less favorable to Borrower than would be obtained in a comparable arm’s length transaction
with an unrelated third party (other than in connection with the execution by Borrower and the Manager of the Management Agreement). 
  
 (u) ERISA. Borrower shall deliver to Agent as soon as possible, and in any event within ten days after Borrower knows or has reason to believe that
any of the events or conditions specified below with respect to any Plan or Multiemployer Plan has occurred or exists, an Officer’s Certificate setting forth details respecting such event or condition and the action, if any, that Borrower or
its ERISA Affiliate proposes to take with respect thereto (and a copy of any report or notice required to be filed with or given to PBGC by Borrower or an ERISA Affiliate with respect to such event or condition): 
  
 (i) any reportable event, as defined in Section 4043(b) of
ERISA and the regulations issued thereunder, with respect to a Plan, as to which PBGC has not by regulation waived the requirement of Section 4043(a) of ERISA that it be notified within thirty (30) days of the occurrence of such event (provided that
a failure to meet the minimum funding standard of Section 412 of the Code or Section 302 of ERISA, including, without limitation, the failure to make on or before its due date a required installment under Section 412(m) of the Code or Section 302(e)
of ERISA, shall be a reportable event regardless of the issuance of any waivers in accordance with Section 412(d) of the Code); and any request for a waiver under Section 412(d) of the Code for any Plan; 
  
 (ii) the distribution under Section 4041(c) of ERISA of a
notice of intent to terminate any Plan or any action taken by Borrower or an ERISA Affiliate to terminate any Plan; 
  
 (iii) the institution by PBGC of proceedings under Section 4042 of ERISA for the termination of, or the appointment of a trustee to
administer, any Plan, or the receipt by Borrower or any ERISA Affiliate of Borrower of a notice from a Multiemployer Plan that such action has been taken by PBGC with respect to such Multiemployer Plan; 
  
 (iv) the complete or partial withdrawal from a Multiemployer
Plan by Borrower or any ERISA Affiliate of Borrower that results in material liability under Section 4201 or 4204 of ERISA (including the obligation to satisfy secondary liability as a result of a purchaser default) or the receipt by Borrower or any
ERISA Affiliate of Borrower of notice from a Multiemployer Plan that it is in reorganization or insolvency pursuant to Section 4241 or 4245 of ERISA or that it intends to terminate or has terminated under Section 4041A of ERISA; 
  
 (v) the institution of a proceeding by a fiduciary of any
Multiemployer Plan against Borrower or any ERISA Affiliate of Borrower to enforce Section 515 of ERISA, which proceeding is not dismissed within thirty (30) days; 
  

 71 

 (vi) the adoption of an amendment to any Plan that, pursuant to Section 401(a)(29) of the
Code or Section 307 of ERISA, would result in the loss of tax-exempt status of the trust of which such Plan is a part if Borrower or an ERISA Affiliate of Borrower fails to timely provide security to the Plan in accordance with the provisions of
said Sections; and 
  
 (vii) the imposition of a
lien or a security interest in connection with a Plan. 
  
 (v) Reserved. 
  
 (w)
Reserved.  
  
 (x)
Insurance. 
  
 (i) Borrower, at its sole
cost and expense, shall keep the Improvements and Equipment insured (including, but not limited to, any period of renovation, alteration and/or construction) during the term of the Loan with the coverage and in the amounts required under this
Agreement for the mutual benefit of Borrower and Agent against loss or damage by fire, lightning, wind and such other perils as are customarily included in a standard “all-risk” or “special cause of loss” form and against loss or
damage by other risks and hazards covered by a standard extended coverage insurance policy (including, without limitation, riot and civil commotion, vandalism, malicious mischief, burglary, collapse, theft and such other coverages as may be
reasonably required by Agent on the special form (formerly known as an all risk form)). Such insurance shall be in an amount (i) equal to at least the greater of then full replacement cost of the Improvements and Equipment (exclusive of the cost of
foundations and footings), without deduction for physical depreciation and the outstanding Principal Indebtedness, and (ii) such that the insurer would not deem Borrower a co-insurer under said policies. The policies of insurance carried in
accordance with this Section 5.1(x) shall be paid not less than ten (10) days in advance of the due date thereof and shall contain the “Replacement Cost Endorsement” with a waiver of depreciation. If terrorism coverage is excluded
on an “all-risk” basis, then the Borrower shall obtain coverage for terrorism and similar acts in the standalone terrorism market. Notwithstanding the foregoing, Agent shall not unreasonably withhold its consent to reductions in the stated
amounts and types of coverage required to be maintained by Borrower hereunder if such levels of coverage or types of insurance, as determined by Agent in its sole reasonable discretion, (A) are not available at commercially reasonable rates and (B)
are not at the time commonly maintained for properties similar to the Property and located in or around the region in which the Property is located. 
  
 (ii) Borrower, at its sole cost and expense, for the mutual benefit of Borrower and Agent, shall also (or shall cause the tenant under the
terms of an applicable Lease to) obtain and maintain or cause to be obtained and maintained during the entire term of the Loan the following policies of insurance: 
  
 (A) flood insurance, if any part of the Property is located in an area identified by the Federal Emergency
Management Agency as an area having special flood hazards and in which flood insurance has been made available under the National Flood Insurance Act of 1968, the Flood Disaster Protection Act of 1973 or the National Flood Insurance Reform Act of
1994 (and any amendment or successor act thereto) in an amount at least equal to the maximum limit of coverage available with respect to the Improvements and Equipment under said Act and with deductibles not to exceed the maximum deductibles
available under said Act; 
  

 72 

 (B) Comprehensive General Liability or Commercial General Liability insurance, including
a broad form comprehensive general liability endorsement and coverage for broad form property damage, contractual damages, personal injuries (including death resulting therefrom) and a liquor liability endorsement if liquor is sold on the Property,
containing minimum limits of liability of $1 million for both injury to or death of a person and for property damage per occurrence and $3 million in the aggregate for the Property, and such other liability insurance reasonably requested by Agent;
in addition, at least $10 million excess and/or umbrella liability insurance shall be obtained and maintained for any and all claims, including all legal liability imposed upon Borrower and all court costs and attorneys’ fees incurred in
connection with the ownership, operation and maintenance of the Property; 
  
 (C) business interruption insurance (including rental value) in an annual aggregate amount equal to the estimated gross revenues from the Leases of the Property (including, without limitation, the loss of all Rents
and additional Rents payable by all of the lessees under the Leases (whether or not such Leases are terminable in the event of a fire or casualty)), such insurance to cover losses for a period of the longer of (x) one year after the date of the fire
or casualty in question or (y) the period from the time of loss until all repairs are fully completed with reasonable diligence and dispatch, plus an extended period of indemnity commencing at the time repairs are completed for a period of not less
than 90 days and to be increased or decreased, as applicable, from time to time during the term of the Loan if, and when, the gross revenues from the Leases of the Property materially increase or decrease, as applicable (including, without
limitation, increases from new Leases and renewal Leases entered into in accordance with the terms of this Agreement), to reflect all increased Rent and increased additional Rent payable by all of the lessees under such renewal Leases and all Rent
and additional Rent payable by all of the lessees under such new Leases; 
  
 (D) insurance against loss or damage from (x) leakage of sprinkler systems and (y) explosion of steam boilers, air conditioning equipment, high pressure piping, machinery and equipment, pressure vessels or similar
apparatus now or hereafter installed in the Improvements (without exclusion for explosions), covering all boilers or other pressure vessels, machinery and equipment located in, on, or about the Improvements; coverage is required in an amount at
least equal to the full replacement cost of such equipment and the building or buildings housing same and shall extend to electrical equipment, sprinkler systems, heating and air conditioning equipment, refrigeration equipment and piping;

  
 (E) worker’s compensation insurance
coverage (in amounts not less than the statutory minimums for all persons employed by Borrower or its tenants at the Property and in compliance with all other requirements of applicable local, state and federal law) and “Employers
Liability” insurance in amounts not less than required by statute; 
  
 (F) during any period of repair or restoration, builder’s “all risk” insurance in an amount equal to not less than the full insurable value of the Property against such risks (including, without
limitation, fire and extended coverage and collapse of the Improvements to agreed limits) as Agent may request, in form and substance acceptable to Agent; 
  
 (G) ordinance or law coverage to compensate for the cost of demolition, increased cost of construction, and loss to any undamaged portions
of the Improvements, 
  

 73 

 if the current use of the Property or the Improvements themselves are or become “nonconforming”
pursuant to the applicable zoning regulations, or full rebuildability following casualty is otherwise not permitted under such zoning regulations; 
  
 (H) if required by Agent as a result of the Property being located in an area with a high degree of seismic activity, earthquake damage
insurance in an amount and form acceptable to Agent; and 
  
 (I) such other insurance as may from time to time be reasonably required by Agent in order to protect its interests with respect to the Loan and the Property. 
  
 (iii) All policies of insurance (the
“Policies”) required pursuant to this Section 5.1(x): 
  
 (J) shall be issued by an insurer approved by Agent which has a claims paying ability rating of not less than “A” (or the equivalent) by Rating Agencies satisfactory to Agent (one of which shall be Standard
& Poor’s Ratings Group) and A:VIII or better as to claims paying ability by AM Best; provided, however, if the insurance provided hereunder is procured by a syndication of more than five insurers then the foregoing
requirements shall not be violated if at least sixty percent of the coverage is with carriers having a claims paying ability rating of “A-” or better by Standard & Poor’s, 
  
 (K) shall name Agent as an additional insured and contain a
standard noncontributory mortgagee clause and a Agent’s Loss Payable Endorsement, or their equivalents, naming Agent (and/or such other party as may be designated by Agent) as the party to which all payments made by such insurance company shall
be paid; provided, with respect to CTL Properties only, Borrower shall be deemed to comply with this paragraph if the insurance obtained by the tenant (and not the Borrower) satisfies the requirement, 
  
 (L) shall be maintained throughout the term of the Loan
without cost to Agent, 
  
 (M) shall contain such
provisions as Agent deems reasonably necessary or desirable to protect its interest (including, without limitation, endorsements providing that neither Borrower, Agent nor any other party shall be a co-insurer under said Policies and that Agent
shall receive at least thirty (30) days prior written notice of any modification, reduction or cancellation), 
  
 (N) shall contain a waiver of subrogation against Agent, 
  
 (O) shall be for a term of not less than one year, 
  
 (P) shall be issued by an insurer licensed in the state in
which the Property is located, 
  
 (Q) shall
provide that Agent may, but shall not be obligated to, make premium payments to prevent any cancellation, endorsement, alteration or reissuance, and such payments shall be accepted by the insurer to prevent same; provided, with respect to CTL
Properties only, Borrower shall be deemed to comply with this paragraph if the insurance obtained by the tenant (and not the Borrower) satisfies the requirement, and 
  

 74 

 (R) shall be reasonably satisfactory in form and substance to Agent and reasonably
approved by Agent as to amounts, form, risk coverage, deductibles, loss payees and insureds to the extent not otherwise specified in this Section 5.1(x). 
  
 Insurance certificates evidencing such coverages shall be delivered to Agent; provided, however, upon demand
by a Rating Agency, copies of said Policies, certified as true and correct by Borrower, shall be delivered to Agent. Prior to the expiration date of each of the Policies, Borrower shall deliver to Agent satisfactory evidence of the renewal of each
Policy. The insurance coverage required under this Section 5.1(x) may be effected under a blanket policy or policies covering the Property and other property and assets not constituting a part of the Collateral; provided that any such
blanket policy shall provide at least the same amount and form of protection as would a separate policy insuring the Property individually, which amount shall not be less than the amount required pursuant to this Section 5.1(x) and which
shall in any case comply in all other respects with the requirements of this Section 5.1(x). Upon demand therefor, Borrower shall reimburse Agent for all of Agent’s or its designee’s reasonable costs and expenses incurred in
obtaining any or all of the Policies or otherwise causing the compliance with the terms and provisions of this Section 5.1(x), including (without limitation) obtaining updated flood hazard certificates and replacement of any so-called
“forced placed” insurance coverages to the extent Borrower was required to obtain and maintain any such Policy or Policies hereunder and failed to do so. Borrower shall pay the premiums for such Policies (the “Insurance
Premiums”) as the same become due and payable and shall furnish to Agent evidence of the renewal of each of the Policies with receipts for the payment of the Insurance Premiums or other evidence of such payment reasonably satisfactory to
Agent (provided, however, that Borrower is not required to furnish such evidence of payment to Agent in the event that such Insurance Premiums have been paid by Agent or the Collateral Agent). If Borrower does not furnish such evidence and receipts
at least five (5) days prior to the expiration of any expiring Policy, then Agent may procure, but shall not be obligated to procure, such insurance and pay the Insurance Premiums therefor, and Borrower agrees to reimburse Agent for the cost of such
Insurance Premiums promptly on demand. Within thirty (30) days after request by Agent, Borrower shall obtain such increases in the amounts of coverage required hereunder as may be reasonably requested by Agent, based on then industry-standard
amounts of coverage then being obtained by prudent owners of properties similar to the Property in the same applicable market region as the Property. Borrower shall give Agent prompt written notice if Borrower receives from any insurer any written
notification or threat of any actions or proceedings regarding the non-compliance or non-conformity of the Property with any insurance requirements. 
  
 (iv) If the Property shall be damaged or destroyed, in whole or in part, by fire or other casualty, Borrower shall give prompt notice
thereof to Agent. 
  
 (A) In case of loss covered
by Policies, Agent may either (a) jointly with a Borrower settle and adjust any claim and agree with the insurance company or companies on the amount to be paid on the loss or (b) allow Borrower to agree with the insurance company or companies on
the amount to be paid upon the loss; provided, that Borrower may settle and adjust losses per occurrence level not in excess of $50,000, agree with the insurance company or companies on the amount to be paid upon the loss and collect and
receipt for any such Insurance Proceeds; provided, further, that if (x) at the time of the settlement of such claim an Event of Default has occurred and is continuing or (y) the Agent and the Borrower are unable to agree upon a joint
settlement or (z) the Agent disapproves of the Borrower’s proposed settlement with the insurance company, then Agent shall settle and adjust such claim without the consent of Borrower. In any such case Agent shall and is hereby authorized to
collect and receipt for any such Insurance 
  

 75 

 Proceeds subject to and to the extent provided for in this Agreement. The reasonable out-of-pocket
expenses incurred by Agent in the adjustment and collection of Insurance Proceeds shall become part of the Indebtedness and be secured by the Mortgage and shall be reimbursed by Borrower to Agent upon demand therefor. 
  
 (B) In the event of any insured damage to or destruction of
the Property or any part thereof (herein called an “Insured Casualty”) where the aggregate amount of the loss, as reasonably determined by an Independent insurance adjuster, is less than ten percent (10%) of the related Advance, and
if, in the reasonable judgment of Agent, the Property can be restored by not later than the first to occur of (a) twelve (12) months of settlement of the claim and (b) the expiration of the business interruption insurance and, in any case, not later
than six (6)months prior to the Maturity Date to an economic unit not less materially valuable (including an assessment of the impact of the termination of any Leases due to such Insured Casualty) and not less useful than the same was prior to the
Insured Casualty, or if Agent otherwise elects to allow a Borrower to restore the Property, then, if no Event of Default shall have occurred and be continuing, the Insurance Proceeds (after reimbursement of any reasonable out-of-pocket expenses
incurred by Agent in connection with the collection of any applicable Insurance Proceeds) shall be made available to reimburse Borrower for the cost of restoring, repairing, replacing or rebuilding the Property or part thereof subject to the Insured
Casualty, as provided for below. Borrower hereby covenants and agrees to commence and diligently to prosecute such restoring, repairing, replacing or rebuilding. Borrower shall pay all out-of-pocket costs (and if required by Agent, Borrower shall
deposit the total thereof with Agent in advance) of such restoring, repairing, replacing or rebuilding in excess of the Insurance Proceeds made available pursuant to the terms hereof (the “Deficient Amount”). 
  
 (C) Except as provided above, the Insurance Proceeds
collected upon any Insured Casualty shall, at the option of Agent in its sole discretion, be applied to the payment of the Indebtedness as provided in Section 2.7(b) of this Agreement or applied to the cost of restoring, repairing, replacing
or rebuilding the affected Property or part thereof subject to the Insured Casualty, in the manner set forth below. 
  
 (D) In the event that Insurance Proceeds (after reimbursement of any reasonable expenses incurred by Agent in connection with the
collection of any applicable Insurance Proceeds), if any, shall be made available to Borrower for the restoring, repairing, replacing or rebuilding of any portion of the affected Property, Borrower covenants to restore, repair, replace or rebuild
the same to be of at least comparable value as prior to such damage or destruction, all to be effected in accordance with Legal Requirements and plans and specifications approved in advance by Agent, such approval not to be unreasonably withheld or
delayed. 
  
 (E) In the event Borrower is
entitled to reimbursement out of Insurance Proceeds, such proceeds shall be held in an Eligible Account as provided in Section 2.12(f) and disbursed from time to time as the restoration progresses upon Agent being furnished with (1) evidence
reasonably satisfactory to it (which evidence may include inspection(s) of the work performed) that the restoration, repair, replacement and rebuilding covered by the disbursement has been completed in accordance with plans and specifications
approved by Agent, (2) evidence reasonably satisfactory to it of the estimated cost of completion of the restoration, repair, replacement and rebuilding, (3) funds, or, at Agent’s option, assurances reasonably satisfactory to Agent that such

  

 76 

 funds are available and sufficient in addition to the Insurance Proceeds to complete the proposed
restoration, repair, replacement and rebuilding, and (4) such architect’s certificates, waivers of lien, contractor’s sworn statements, title insurance endorsements, bonds and other evidences of cost, payment and performance of the
foregoing repair, restoration, replacement or rebuilding as Agent may reasonably require and approve. Agent may, in any event, require that all plans and specifications for such restoration, repair, replacement and rebuilding be submitted to and
reasonably approved by Agent prior to commencement of work. Agent may retain a construction consultant to inspect such work and review Borrower’s request for payments and Borrower shall, on demand by Agent, reimburse Agent for the reasonable
fees and disbursements of such consultant. No payment made prior to the final completion of the restoration, repair, replacement and rebuilding shall exceed ninety percent (90%) of the hard construction costs value of the work performed from time to
time (except for restoration work on a trade by trade basis or on an hourly basis for professional services in which event, payment may be made in full upon the completion of such work); funds other than Insurance Proceeds shall be disbursed prior
to disbursement of such proceeds; and, at all times, the undisbursed balance of such proceeds remaining in the accounts of Agent, together with funds deposited for that purpose or irrevocably committed to the repayment of Agent by or on behalf of
Borrower for that purpose, shall be at least sufficient in the reasonable judgment of Agent to pay for the cost of completion of the restoration, repair, replacement or rebuilding, free and clear of all liens or claims for lien, except for Permitted
Encumbrances. Any surplus which may remain out of Insurance Proceeds held by Agent after payment of such costs of restoration, repair, replacement or rebuilding shall be paid to Borrower so long as no Event of Default has occurred and is continuing.

  
 (v) Borrower shall not carry separate
insurance, concurrent in kind or form or contributing in the event of loss, with any insurance required under this Agreement that would be considered “co-insurance” or adversely affect the ability to collect under a policy of insurance
required hereunder. 
  
 (y) Condemnation. 
  
 (i) Borrower shall promptly give Agent written notice of the
actual or threatened commencement of any proceeding for a Taking and shall deliver to Agent copies of any and all papers served in connection with such proceedings. Agent is hereby irrevocably appointed as Borrower’s attorney-in-fact, coupled
with an interest, with exclusive power to collect, receive and retain any Condemnation Proceeds for said Taking. With respect to any compromise or settlement in connection with such proceeding, Agent shall jointly with Borrower compromise and reach
settlement unless at the time of such Taking an Event of Default has occurred and is continuing and the Indebtedness has been accelerated, in which event Agent shall compromise and reach settlement without the consent of Borrower. Notwithstanding
the foregoing provisions of this Section 5.1(y), Borrower is authorized to negotiate, compromise and settle, without participation by Agent, Condemnation Proceeds of up to $50,000 in connection with any Taking. Notwithstanding any Taking,
Borrower shall continue to pay the Indebtedness at the time and in the manner provided for in this Agreement and the other Loan Documents and the Indebtedness shall not be reduced except in accordance therewith. 
  
 (ii) Borrower shall cause the Condemnation Proceeds to be
paid directly to the Collection Account as provided in Section 3.7(b) of this Agreement. Agent may, in its sole discretion, apply any such Condemnation Proceeds to the reduction or discharge of the Indebtedness (whether or not then due and
payable). 
  

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 (iii) With respect to a Taking in part, which shall mean any Taking which does not render
the affected Property physically or economically unsuitable in the reasonable judgment of Agent for the use to which it was devoted prior to the Taking, Borrower shall cause the Condemnation Proceeds to be paid to Agent as described above or
deposited into the applicable account pursuant to the provisions of this Agreement, to be applied to the cost of repairing, replacing, restoring or rebuilding the affected Property as follows: 
  
 (A) Provided that Condemnation Proceeds shall be made
available to Borrower for the restoring, repairing, replacing or rebuilding of the affected Property, Borrower hereby covenants to restore, repair, replace or rebuild the same to be of at least comparable value and, to the extent commercially
practicable, of substantially the same character as prior to the Taking, all to be effected in accordance with applicable law and plans and specifications reasonably approved in advance by Agent. Borrower shall pay all costs (and if required by
Agent, Borrower shall deposit the total thereof with Agent in advance) of such restoring, repairing, replacing or rebuilding in excess of the Condemnation Proceeds made available pursuant to the terms hereof. 
  
 (B) The Condemnation Proceeds held by Agent shall be held in
an Eligible Account as provided in Section 3.12(f) and disbursed from time to time as the restoration progresses upon Agent being furnished with (1) evidence reasonably satisfactory to it (which evidence may include inspection(s) of the work
performed) that the restoration, repair, replacement and rebuilding covered by the disbursement has been completed in accordance with plans and specifications approved by Agent, (2) evidence reasonably satisfactory to it of the estimated cost of
completion of the restoration, repair, replacement and rebuilding, (3) funds, or, at Agent’s option, assurances satisfactory to Agent that such funds are available and sufficient in addition to the Condemnation Proceeds to complete the proposed
restoration, repair, replacement and rebuilding, and (4) such architect’s certificates, waivers of lien, contractor’s sworn statements, title insurance endorsements, bonds and other evidences of cost, payment and performance of the
foregoing repair, restoration, replacement or rebuilding as Agent may reasonably require and approve. Agent may, in any event, require that all plans and specifications for such restoration, repair, replacement and rebuilding be submitted to and
reasonably approved by Agent prior to commencement of work. Agent may retain a construction consultant to inspect such work and review any request by Borrower for payments and Borrower shall, on demand by Agent, reimburse Agent for the reasonable
fees and disbursements of such consultant. No payment made prior to the final completion of the restoration, repair, replacement and rebuilding shall exceed ninety percent (90%) of the hard construction costs value of the construction work performed
from time to time (except for restoration work on a trade by trade basis or on an hourly basis for professional services in which event, payment may be made in full upon the completion of such work); funds other than Condemnation Proceeds shall be
disbursed prior to disbursement of such proceeds; and at all times, the undisbursed balance of such proceeds remaining in the hands of Agent, together with funds deposited for that purpose or irrevocably committed to the repayment of Agent by or on
behalf of Borrower for that purpose, shall be at least sufficient in the reasonable judgment of Agent to pay for the cost of completion of the restoration, repair, replacement or rebuilding, free and clear of all liens or claims for lien. Any
surplus which may remain out of Condemnation Proceeds held by Agent after payment of such costs of restoration, repair, replacement or rebuilding shall be paid to Borrower so long as no Event of Default has occurred and is continuing. 
  

 78 

 (C) If the affected Property is sold, through foreclosure or otherwise, prior to the
receipt by Agent of any such Condemnation Proceeds to which it is entitled hereunder, Agent shall have the right, whether or not a deficiency judgment on the Note shall have been sought, recovered or denied, to have reserved in any foreclosure
decree a right to receive said award or payment, or a portion thereof sufficient to pay the Indebtedness. In no case shall any such application reduce or postpone any payments otherwise required pursuant to this Agreement, other than the final
payment on the Note. 
  
 (z) Leases and Rents. 

 
  
 (i) Borrower absolutely and unconditionally assigns to Agent, Borrower’s right, title and interest in all current and future Leases and Rents as collateral for the Loan, it being intended by Borrower that this
assignment constitutes a present, absolute assignment and not an assignment for additional security only. Such assignment to Agent shall not be construed to bind Agent to the performance of any of the covenants, conditions or provisions contained in
any such Lease or otherwise impose any obligation upon Agent. Borrower shall execute and deliver to Agent such additional instruments, in form and substance reasonably satisfactory to Agent, as may hereafter be reasonably requested in writing by
Agent to further evidence and confirm such assignment. Nevertheless, subject to the terms of this Section 5.1(z), Agent grants to Borrower a license to lease, own, maintain, operate and manage the Property and to collect, use and apply the
Rent, which license is revocable only upon the occurrence and during the continuance of an Event of Default under this Agreement. Any portion of the Rents held by Borrower shall be held in trust for the benefit of Agent for use in the payment of the
Indebtedness. Upon the occurrence of an Event of Default and during the continuance thereof, the license granted to Borrower herein shall automatically be revoked, and Agent shall immediately be entitled to possession of all Rents, whether or not
Agent enters upon or takes control of the Property. Agent is hereby granted and assigned by Borrower the right, at its option, upon revocation of the license granted herein, to enter upon the Property in person, by agent or by court-appointed
receiver to collect the Rents. Any Rents collected after the revocation of the license shall be applied toward payment of the Indebtedness as set forth in Section 3.8 hereof. 
  
 (ii) All Leases entered into by Borrower shall provide for rental rates comparable to then-existing local
market rates and terms and conditions commercially reasonable and consistent with then-prevailing local market terms and conditions and otherwise in form and substance as is customary for similar type properties. With respect to any Lease for more
than the greater of (x) 10% of the rentable square footage of the Property or (y) 10,000 square feet, Borrower shall not enter into such Lease, without the prior written consent of Agent, such consent not to be unreasonably withheld or delayed.
Borrower shall furnish Agent with (1) detailed term sheets in advance in the case of any Leases, modifications, amendments or renewals for which Agent’s consent is required and (2) in the case of any other Leases, executed copies of such Leases
upon written request. All renewals or amendments or modifications of Leases that do not satisfy the requirements of the first sentence of this Section 5.1(z)(ii) shall be subject to the prior approval of Agent. All Leases executed after the
date hereof shall provide that they are subordinate to the Mortgage, and that the lessee agrees to attorn to Agent. Borrower, 
  
 (A) shall observe and perform all of the material obligations imposed upon the lessor under the Leases and shall not do or permit to be
done anything to materially impair the value of the Leases as security for the Indebtedness; 
  
 (B) shall promptly send copies to Agent of all written notices of default which Borrower shall send or receive thereunder; 
  

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 (C) shall enforce all of the material terms, covenants and conditions contained in the
Leases upon the part of the lessee thereunder to be observed or performed and shall effect a termination or diminution of the obligations of tenants under leases, only in a manner that a prudent owner of a similar property to the Property would
enforce such terms covenants and conditions or effect such termination or diminution in the ordinary course of business; 
  
 (D) shall not collect any of the Rents more than one (1) month in advance; 
  
 (E) shall not execute any other assignment of lessor’s interest in the Leases or Rents; and 

 
 (F) shall not convey or transfer or suffer or permit a
conveyance or transfer of the Property or of any interest therein so as to effect a merger of the estates and rights of, or a termination or diminution of the obligations of, lessees thereunder. 
  
 (iii) Borrower shall deposit security deposits of lessees
which are turned over to or for the benefit of Borrower or otherwise collected by or on behalf of Borrower, into an Eligible Account with the same name as the Collection Account and shall not commingle such funds with any other funds of Borrower.
Any bond or other instrument which Borrower is permitted to hold in lieu of cash security deposits under any applicable Legal Requirements shall be maintained in full force and effect unless replaced by cash deposits as hereinabove described, shall,
if permitted pursuant to Legal Requirements, name Agent as payee or mortgagee thereunder (or at Agent’s option, be fully assignable to Agent) and shall, in all respects, comply with any applicable Legal Requirements and otherwise be reasonably
satisfactory to Agent. Borrower shall, upon request, provide Agent with evidence reasonably satisfactory to Agent of Borrower’s compliance with the foregoing. Upon the occurrence and during the continuance of any Event of Default, Borrower
shall, upon Agent’s request, if permitted by any applicable Legal Requirements, turn over to Agent the security deposits (and any interest theretofore earned thereon) with respect to all or any portion of the Property, to be held by Agent
subject to the terms of the Leases. 
  
 (aa) Maintenance of
Property. Borrower shall cause the Property to be maintained in a good and safe condition and repair, subject to wear and tear and damage caused by casualty or condemnation. The Improvements and the Equipment shall not be removed, demolished or
altered (except for normal replacement of the Equipment, Improvements contemplated in an approved Operating Budget or pursuant to Leases in effect from time to time or for removals, demolition or alterations that cost up to $50,000) without the
consent of the Agent which consent shall not be unreasonably withheld. Except with respect to an Insured Casualty which shall be governed by the terms and conditions provided herein, Borrower shall, or shall cause any tenants obligated under their
respective Leases to, promptly repair, replace or rebuild any part of the Property that becomes damaged, worn or dilapidated except where the failure to do so is not reasonably likely to have a Material Adverse Effect. Borrower shall complete and
pay for any structure at any time in the process of construction or repair on the Land. Borrower shall not initiate, join in, or consent to any change in any private restrictive covenant, zoning law or other public or private restriction, limiting
or defining the uses which may be made of the Property or any part thereof which can be reasonably likely to result in a Material Adverse Effect without consent of the Agent. If under applicable zoning provisions the use of all or any portion of the
Property is or shall become a nonconforming use, Borrower will not cause or permit such nonconforming use to be discontinued or abandoned if such discontinuance of abandonment would cause such nonconforming use to no longer be permitted without the
express written consent of the Agent. Borrower shall not (i) change the use of the Land in any material respect, (ii) permit or suffer to occur any waste on or to the Property or to any portion thereof or (iii) take any steps whatsoever to convert
the Property, or any portion thereof, to a condominium or cooperative form of management. 
  

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 (bb) Taxes on Security. Borrower shall pay all taxes, charges, filing, registration and recording
fees, excises and levies payable with respect to the Note or the Lien created or secured by the Loan Documents, other than income, franchise and doing business taxes imposed on Agent, any Lender or Collateral Agent. If there shall be enacted any law
(1) deducting the Loan from the value of the Collateral for the purpose of taxation, (2) affecting Agent’s Lien on the Collateral or (3) changing existing laws of taxation of mortgages, deeds of trust, security deeds, or debts secured by
realty, or changing the manner of collecting any such taxes, Borrower shall promptly pay to Agent, on demand, all taxes, costs and charges for which Agent is or may be liable as a result thereof; provided, however, if such payment
would be prohibited by law or would render the Loan usurious, then instead of collecting such payment, Agent may declare all amounts owing under the Loan Documents to be immediately due and payable. 
  
 (cc) Ground Lease. 
  
 (i) The Borrower shall pay, promptly when due and payable,
all Ground Rent. Upon notice from Agent, simultaneously with the making of each and every payment of Ground Rent payable after the delivery of such notice, the Borrower shall simultaneously deliver to Agent a copy of the check in the amount of such
payment delivered to the payee. 
  
 (ii) The
Borrower shall perform and observe all terms, covenants, and conditions that Borrower is required to perform and observe under the Ground Lease and do everything necessary to preserve and to keep unimpaired and in full force and effect the Ground
Lease. The Borrower shall not permit the Ground Lease to go into default (whether or not any cure period in the Ground Lease has expired). 
  
 (iii) The Borrower shall enforce the obligations of the applicable lessor under the Ground Lease so that the Borrower may at all times
enjoy all its rights, benefits and privileges under the applicable Ground Lease. 
  
 (iv) The Borrower shall not, without Agent’s consent, cause, agree to, permit, or suffer to occur any Ground Lease Impairment. Any
Ground Lease Impairment made without Agent’s consent shall be null, void, and of no force of effect. Any party entering into or purportedly obtaining the benefit of such a purported Ground Lease Impairment is hereby placed on notice that
Borrower has no power or authority to cause, consent, or agree to such Ground Lease Impairment without Agent’s consent. 
  
 (v) The Borrower shall not, without Agent’s consent, refuse to consent or consent to any action that any lessor under a Ground Lease
or any third party takes or desires to take under or with respect to the Ground Lease. 
  
 (vi) The Borrower shall promptly deliver to Agent a copy of any notice of default or termination, or demands for performance (other than
routine bills for current Ground Rent) that it receives from the lessor under the Ground Lease. The Borrower shall furnish to Agent all information that Agent may request from time to time concerning the Ground Lease and Borrower’s compliance
with the Ground Lease. Borrower, immediately upon learning that the lessor under the Ground Lease has failed to perform the terms and provisions under the Ground Lease (including by reason of a rejection or disaffirmance or purported rejection or
disaffirmance of the Ground Lease pursuant to any state or federal bankruptcy law), shall notify Agent thereof. Promptly after the Advance Closing Date therefor, and again promptly after execution of any 
  

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 amendment to the related Mortgage, Borrower shall notify the applicable ground lessor of the execution
and delivery of the related leasehold Mortgage or such amendment. Such notice shall set forth, verbatim, in a form satisfactory to Agent, all provisions of the related leasehold Mortgage relating to Ground Lease Impairments. Agent shall have the
right, but not the obligation, to give any lessor under a Ground Lease at any time any notice described in this paragraph or otherwise relating to the related leasehold Mortgage or the Loan. 
  
 (vii) The Borrower shall promptly notify Agent of any
request that any party to the Ground Lease makes for arbitration or other dispute resolution procedure pursuant to the Ground Lease and of the institution of any such arbitration or dispute resolution. The Borrower hereby authorizes Agent to
participate in any such arbitration or dispute resolution. Such participation may, at Agent’s option, be to the exclusion of, and in place of, the Borrower. The Borrower shall promptly deliver to Agent a copy of the determination of each such
arbitration or dispute resolution mechanism. 
  
 (viii) If Agent or its designee shall acquire or obtain a New Ground Lease, then Borrower shall have no right, title or interest whatsoever in or to such New Ground Lease, or any proceeds or income arising from the estate arising under any
such New Ground Lease, including from any sale or other disposition thereof. Agent or its designee shall hold such New Ground Lease free and clear of any right or claim of Borrower. 
  
 (ix) Borrower shall not amend, modify or cancel the Ground Lease. 
  
 ARTICLE VI. 
 NEGATIVE COVENANTS 
  
 Section 6.1. Negative Covenants. Borrower covenants and agrees that, until payment in full of the Indebtedness, it will not do, directly or indirectly, any of the following unless Agent consents thereto in
writing: 
  
 (a) Liens on the Property. Incur, create,
assume, become or be liable in any manner with respect to, or permit to exist, except as permitted by the Mortgage, any Lien with respect to the Property, except: (i) Liens in favor of the Lenders and (ii) the Permitted Encumbrances. 
  
 (b) Ownership and Transfer. Except as expressly permitted by or
pursuant to this Agreement or the other Loan Documents, own any property of any kind other than the Property, or Transfer the Property or any portion thereof. 
  

(c) Other Borrowings. Incur, create, assume, become or be liable in any manner with respect to Other Borrowings. 
  
 (d) Dissolution; Merger or Consolidation. Dissolve, terminate,
liquidate, merge with or consolidate into another Person. 
  
 (e)
Change In Business. Cease to be a Single-Purpose Entity, or make any material change in the scope or nature of its business objectives, purposes or operations, or undertake or participate in activities other than the continuance of its
present business. 
  
 (f) Debt Cancellation. Cancel or
otherwise forgive or release any material claim or debt owed to Borrower by any Person, except for adequate consideration or in the ordinary course of Borrower’s business. 
  

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 (g) Affiliate Transactions. Enter into, or be a party to, any transaction with an Affiliate of
Borrower, except in the ordinary course of business and on terms which are fully disclosed to Agent in advance and on terms which are no less favorable to Borrower or such Affiliate than would be obtained in a comparable arm’s length
transaction with an unrelated third party (other than the Management Agreement). 
  
 (h) Creation of Easements. Except as expressly permitted by or pursuant to the Mortgage or this Agreement, create, or permit the Property or any part thereof to become subject to, any easement, license or
restrictive covenant, other than a Permitted Encumbrance, provided, that the consent of Agent shall not be unreasonably withheld or delayed to the extent that any such easement, license or restrictive covenant is reasonably necessary for the
continued use, enjoyment, access to or operation of the applicable Property. 
  
 (i) Misapplication of Funds. Distribute any Rents or Moneys received from Accounts in violation of the provisions of Section 3.12, or fail to pledge any security deposit to Agent, or misappropriate any
security deposit or portion thereof. 
  
 (j) Certain
Restrictions. Enter into any agreement that expressly restricts the ability of Borrower to enter into amendments, modifications or waivers of any of the Loan Documents. 
  
 (k) Assignment of Licenses and Permits. Assign or transfer any of its interest in any Permits pertaining to the
Property, or assign, transfer or remove or permit any other Person to assign, transfer or remove any records pertaining to the Property. 
  
 (l) Place of Organization. Change its jurisdiction of organization, creation or formation, as applicable, without giving Agent at least fifteen
(15) days’ prior written notice thereof and promptly providing Agent such information as Agent may reasonably request in connection therewith. 
  
 (m) Leases. Enter into, amend or cancel Leases, except as permitted by or pursuant to or would not result in a violation of this Agreement.

  
 (n) Management Agreement. Except in accordance with
this Agreement, (i) terminate or cancel the Management Agreement, (ii) consent to either the reduction of the term of or the assignment of the Management Agreement, (iii) increase or consent to the increase of the amount of any charges under the
Management Agreement, or (iv) otherwise modify, change, supplement, alter or amend, or waive or release any of its rights and remedies under, the Management Agreement in any material respect. 
  
 (o) Plans and Welfare Plans. Knowingly engage in or permit any
transaction in connection with which Borrower or any ERISA Affiliate could be subject to either a material civil penalty or tax assessed pursuant to Section 502(i) or 502(1) of ERISA or Section 4975 of the Code, permit any Welfare Plan to provide
benefits, including without limitation, medical benefits (whether or not insured), with respect to any current or former employee of Borrower beyond his or her retirement or other termination of service other than (i) coverage mandated by applicable
law, (ii) death or disability benefits that have been fully provided for by paid up insurance or otherwise or (iii) severance benefits (unless such coverage is provided after notification of and with the reasonable approval of Agent), permit the
assets of Borrower to become “plan assets”, whether by operation of law or under regulations promulgated under ERISA or adopt, amend (except as may be required by applicable law) or increase the amount of any benefit or amount payable
under, or permit any ERISA Affiliate to adopt, amend (except as may be required by applicable law) or increase the amount of any benefit or amount payable under, any Plan or Welfare Plan, except for normal increases in the ordinary course of
business consistent with past practice that, in the aggregate, do not result in a material increase in benefits expense to Borrower or any ERISA Affiliate. 
  

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 (p) Transfer of Ownership Interests. Permit any Transfer of a direct or indirect ownership
interest or voting right in Borrower, other than as contemplated in Section 3.11 above. 
  
 (q) Equipment and Inventory. Except pursuant to the Management Agreement, permit any Equipment owned by Borrower to be removed at any time from the Property unless the removed item is consumed or sold in the
usual and customary course of business, removed temporarily for maintenance and repair or, if removed permanently, replaced by an article of equivalent suitability and not materially less value, owned by Borrower free and clear of any Lien.

  
 (r) Management Fees. Pay Borrower or any Affiliate of
Borrower any management fees with respect to the Property except as contemplated by the Management Agreement. 
  
 ARTICLE VII. 
 EVENT OF DEFAULT 
  
 Section 7.1. Event of Default. The occurrence of one or more of the
following events shall be an “Event of Default” hereunder: 
  
 (a) if on any Payment Date Borrower fails to pay any accrued and unpaid interest on the Loan then due and payable or any principal payment amount then due and payable in accordance with the provisions of Section
3.7 hereof; 
  
 (b) if Borrower fails (a) to pay (1) the
outstanding Indebtedness on the Maturity Date or (2) the fees then due and payable to Collateral Agent pursuant to the Fee Letter on any Payment Date; or (b) to deposit into the Collection Account, the amount required pursuant to Section
3.7(b), respectively; 
  
 (c) if Borrower fails to make any
required deposit to a Reserve Account or to pay any other amount payable pursuant to this Agreement or any other Loan Document when due and payable in accordance with the provisions hereof or thereof, as the case may be, and such failure continues
for ten (10) days after Agent delivers written notice thereof to Borrower; 
  
 (d) if any representation or warranty made herein or in any other Loan Document, or in any report, certificate, financial statement or other Instrument, agreement or document furnished by Borrower in connection with
this Agreement, the Note or any other Loan Document executed and delivered by any Borrower shall be false in any material respect as of the date such representation or warranty was made (or if such representation or warranty relates to an earlier
date, then as of such earlier date); 
  
 (e) if Borrower or the
Guarantor makes an assignment for the benefit of creditors; 
  
 (f) if a receiver, liquidator or trustee shall be appointed for Borrower or the Guarantor or if Borrower or the Guarantor shall be adjudicated a bankrupt or insolvent, or if any petition for bankruptcy, reorganization or arrangement
pursuant to federal bankruptcy law, or any similar federal or state law, shall be filed by or against, consented to, or acquiesced in by, Borrower or the Guarantor, or if any proceeding for the dissolution or liquidation of Borrower or the Guarantor
shall be instituted; provided, however, that if such appointment, adjudication, petition or proceeding was involuntary and not consented to by Borrower or the Guarantor, upon the same not being discharged, stayed or dismissed within
ninety (90) days, or if Borrower or the Guarantor shall generally not be paying its debts as they become due; 
  

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 (g) if Borrower attempts to delegate its obligations or assign its rights under this Agreement, any of
the other Loan Documents or any interest herein or therein, or if any Transfer occurs other than in accordance with or as permitted under this Agreement; 
  
 (h) if any provision of the Organizational Agreement affecting the purpose for which Borrower is formed is amended or modified in any material respect
which is reasonably likely to adversely affect the Lenders, Agent or Collateral Agent, or if Borrower fails to perform or enforce the provisions of the Organizational Agreement and such failure has a Material Adverse Effect or attempts to dissolve
Borrower without Agent’s consent; 
  
 (i) if an Event of
Default as defined or described in the Note or any other Loan Document occurs, whether as to Borrower or the Property or any portion thereof; 
  
 (j) if Borrower fails to maintain any insurance required to be maintained pursuant to Section 5.1(x) hereof; and 
  
 (k) if Borrower shall fail to perform any of the terms, covenants or
conditions of this Agreement, the Note, the Mortgage or the other Loan Documents, other than as specifically otherwise referred to above in this definition of “Event of Default,” for ten (10) days after notice to Borrower from Agent or its
successors or assigns, in the case of any Default which can be cured by the payment of a sum of money (other than Events of Default pursuant to Sections 7.1(a) and 7.1(b) above as to which the grace period, if any, set forth therein is
applicable), or for thirty (30) days after notice from Agent or its successors or assigns, in the case of any other Default (unless a longer notice period is otherwise provided herein or in such other Loan Document); provided, however,
that if such non-monetary Default is susceptible of cure but cannot reasonably be cured within such thirty (30) day period and such Borrower shall have commenced to cure such Default within such thirty (30) day period and thereafter diligently and
expeditiously proceeds to cure the same, such thirty (30) day period shall be extended for an additional thirty (30) days; 
  
 then, upon the occurrence of any such Event of Default and at any time thereafter, Agent or Collateral Agent or its successors or assigns, may, in addition to any other
rights or remedies available to it pursuant to this Agreement and the other Loan Documents, or at law or in equity, take such action, without further notice or demand, as Agent on behalf of the Lenders or its successors or assigns, deems advisable
to protect and enforce its rights against Borrower and in and to all or any portion of the Collateral (including, without limitation, declaring the entire Indebtedness to be immediately due and payable) and may enforce or avail itself of any or all
rights or remedies provided in the Loan Documents against Borrower and/or the Collateral (including, without limitation, all rights or remedies available at law or in equity). 
  
 Section 7.2. Remedies. 
  
 (a) Upon the occurrence of an Event of Default, all or any one or more of the rights, powers, other remedies available to Agent or Collateral Agent or the
Lenders against Borrower under this Agreement or any of the other Loan Documents executed by or with respect to Borrower, or at law or in equity may be exercised by Lenders at any time and from time to time, whether or not all or any portion of the
Indebtedness shall be declared due and payable, and whether or not Agent shall have commenced any foreclosure proceeding or other action for the enforcement of its rights and remedies under any of the Loan Documents with respect to all or any
portion of the Collateral. Any such actions taken by Agent or 
  

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 Collateral Agent shall be cumulative and concurrent and may be pursued independently, singly, successively, together or
otherwise, at such time and in such order as Agent may determine in its sole discretion, to the fullest extent permitted by law, without impairing or otherwise affecting the other rights and remedies of Agent and the Lenders permitted by law, equity
or contract or as set forth herein or in the other Loan Documents. 
  
 (b) In the event of the foreclosure or other action by Agent or Collateral Agent to enforce Agent’s remedies in connection with all or any portion of the Collateral, Agent shall apply all Net Proceeds received to repay the Indebtedness
in accordance with Section 3.8, the Indebtedness shall be reduced to the extent of such Net Proceeds and the remaining portion of the Indebtedness shall remain outstanding and secured by the Loan Documents, it being understood and agreed by
Borrower that Borrower is liable for the repayment of all the Indebtedness; provided, however, that the Note shall be deemed to have been accelerated only to the extent of the Net Proceeds actually received by Agent with respect to the
Collateral and applied in reduction of the Indebtedness evidenced by the Note in accordance with the provisions of this Agreement, after payment by Borrower of all Transaction Costs and costs of enforcement. 
  
 (c) Upon and during the continuation of an Event of Default, the Agent shall
have the right, but not the obligation, with respect to any and all bankruptcy proceedings that are now or hereafter commenced in connection with the Property, to (i) vote to accept or reject any plans of reorganization, (ii) vote in any election of
a trustee, (iii) elect the treatment of secured claims as specified in Section 1111(b) of the Bankruptcy Code, and (iv) make any other decisions requested of holders of claims or interests that the Borrower would have had the right to do in
such bankruptcy proceedings in the absence of an Event of Default. 
  
 Section 7.3. Remedies Cumulative. The rights, powers and remedies of Agent, Collateral Agent, or any Lender under this Agreement shall be cumulative and not exclusive of any other right, power or remedy which Agent, Collateral Agent
or any Lender may have against Borrower pursuant to this Agreement or the other Loan Documents executed by or with respect to Borrower, or existing at law or in equity or otherwise. Agent or any Lender’s rights, powers and remedies may be
pursued singly, concurrently or otherwise, at such time and in such order as Agent may determine in Agent’s sole discretion. No delay or omission to exercise any remedy, right or power accruing upon an Event of Default shall impair any such
remedy, right or power or shall be construed as a waiver thereof, but any such remedy, right or power may be exercised from time to time and as often as may be deemed expedient. A waiver of any Default or Event of Default shall not be construed to
be a waiver of any subsequent Default or Event of Default or to impair any remedy, right or power consequent thereon. Notwithstanding any other provision of this Agreement, Agent for the benefit of the Lenders reserves the right to seek a deficiency
judgment or preserve a deficiency claim, in connection with the foreclosure of the Mortgage on the Property, to the extent necessary to foreclose on other parts of the Collateral. 
  
 Section 7.4. Curative Advances. If any Event of Default occurs and is not cured by Borrower after notice from the
Agent, then Agent or Collateral Agent may expend such sums as either shall reasonably deem appropriate to cure or attempt to cure such Event of Default. Borrower shall immediately repay all such sums so advanced, which sums shall immediately become
part of the Indebtedness, bear interest at the Default Rate from the date advanced until the date repaid, and be secured by all Collateral. 
  

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 ARTICLE VIII. 
 MISCELLANEOUS 
  
 Section
8.1. Survival. This Agreement and all covenants, agreements, representations and warranties made herein and in the certificates delivered pursuant hereto shall survive the execution and delivery of this Agreement, the making by the initial
Lender of the Loan hereunder and the execution and delivery by Borrower to the initial Lender of the Loan Documents, and shall continue in full force and effect so long as any portion of the Indebtedness is outstanding and unpaid. Whenever in this
Agreement any of the parties hereto is referred to, such reference shall be deemed to include the successors and assigns of such party. All covenants, promises and agreements in this Agreement contained, by or on behalf of Borrower, shall inure to
the benefit of the respective successors and assigns of Agent and each Lender. Nothing in this Agreement or in any other Loan Document, express or implied, shall give to any Person other than the parties and the holder of the Note and the other Loan
Documents, and their legal representatives, successors and assigns, any benefit or any legal or equitable right, remedy or claim hereunder. 
  
 Section 8.2. Agent’s Discretion. Whenever pursuant to this Agreement, Agent exercises any right given to it to approve or disapprove, or any
arrangement or term is to be satisfactory to Agent, the decision of Agent to approve or disapprove or to decide whether arrangements or terms are satisfactory or not satisfactory shall (except as is otherwise specifically herein provided) be in the
sole discretion of Agent and shall be final and conclusive. 
  
 Section 8.3. Governing Law. 
  
 (a) This
Agreement was negotiated in New York and made by the initial Lender and accepted by Borrower in the State of New York, and the proceeds of the Note delivered pursuant hereto were disbursed from New York, which State the parties agree has a
substantial relationship to the parties and to the underlying transaction embodied hereby, and in all respects (including, without limitation, matters of construction, validity, performance, and maximum permissible rates of interest), this Agreement
and the obligations arising hereunder shall be governed by, and construed in accordance with, the laws of the State of New York applicable to contracts made and performed in such State and any applicable law of the United States of America.

  
 (b) Any legal suit, action or proceeding against the Lenders
or Borrower arising out of or relating to this Agreement may be instituted in any federal or state court in New York, New York. Borrower hereby (i) irrevocably waives, to the fullest extent permitted by applicable law, any objection which it may now
or hereafter have to the laying of venue of any such suit, action or proceeding brought in such a court and any claim that any such proceeding brought in such a court has been brought in an inconvenient forum, and (ii) irrevocably submits to the
jurisdiction of any such court in any such suit, action or proceeding. Borrower does hereby designate and appoint Corporation Service Company as its authorized agent to accept and acknowledge on its behalf service of any and all process which may be
served in any such suit, action or proceeding in any federal or state court in New York, New York, and agrees that service of process upon said agent at said address (or at such other office in New York, New York as may be designated by Borrower
from time to time in accordance with the terms hereof) with a copy to Borrower at its principal executive offices, and written notice of said service of Borrower mailed or delivered to Borrower in the manner provided herein shall be deemed in every
respect effective service of process upon Borrower, in any such suit, action or proceeding in the State of New York. Borrower (i) shall give prompt notice to Agent of any change in address of its authorized agent hereunder, (ii) may at any time and
from time to time designate a substitute authorized agent with an office in New York, New York (which office shall be designated as the address for service of process), and (iii) shall promptly designate such a substitute if its authorized agent
ceases to have an office in New York, New York or is dissolved without leaving a successor. 
  

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 Section 8.4. Modification, Waiver in Writing. No modification, amendment, extension, discharge,
termination or waiver of any provision of this Agreement or any other Loan Document, or consent or waiver referred to in any Loan Document or consent to any departure by Borrower therefrom, shall in any event be effective unless the same shall be in
a writing signed by the party against whom enforcement is sought, and then such waiver or consent shall be effective only in the specific instance, and for the purpose, for which given. Except as otherwise expressly provided herein, no notice to or
demand on Borrower shall entitle Borrower to any other or future notice or demand in the same, similar or other circumstances. 
  
 Section 8.5. Delay Not a Waiver. Neither any failure nor any delay on the part of Agent or any Lender in insisting upon strict performance of any
term, condition, covenant or agreement, or exercising any right, power, remedy or privilege hereunder, or under any other Loan Document, or any other instrument given as security therefor, shall operate as or constitute a waiver thereof, nor shall a
single or partial exercise thereof preclude any other future exercise, or the exercise of any other right, power, remedy or privilege. In particular, and not by way of limitation, by accepting payment after the due date of any amount payable under
this Agreement, the Note or any other Loan Document, Agent and each Lender shall not be deemed to have waived any right either to require prompt payment when due of all other amounts due under this Agreement, the Note or the other Loan Documents, or
to declare a default for failure to effect prompt payment of any such other amount. 
  
 Section 8.6. Notices. All notices, consents, approvals and requests required or permitted hereunder or under any other Loan Document shall be given in writing and shall be effective for all purposes if hand
delivered or sent by (a) certified or registered United States mail, postage prepaid, or (b) expedited prepaid delivery service, either commercial or United States Postal Service, with proof of attempted delivery, and by facsimile transmission,
addressed if to Lender at its address set forth on the first page hereof, Attention: Chris Tognola/Tom Traynor, if to Collateral Agent at its address set forth on the first page hereof, Attention: Tom Quinlan, and if to Borrower at its addresses set
forth on the first page hereof, Attention: General Counsel, or at such other address and Person as shall be designated from time to time by any party hereto, as the case may be, in a written notice to the other parties hereto in the manner provided
for in this Section 8.6. A notice shall be deemed to have been given: in the case of hand delivery, at the time of delivery; in the case of registered or certified mail, when delivered or three Business Days after mailing; or in the case of
expedited prepaid delivery and facsimile transmission, on the Business Day after the same was sent. A party receiving a notice which does not comply with the technical requirements for notice under this Section 8.6 may elect to waive any
deficiencies and treat the notice as having been properly given. 
  
 Section 8.7. TRIAL BY JURY. BORROWER, TO THE FULLEST EXTENT THAT IT MAY LAWFULLY DO SO, WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING, INCLUDING, WITHOUT LIMITATION, ANY TORT ACTION, BROUGHT BY ANY PARTY HERETO WITH RESPECT TO
THIS AGREEMENT, THE NOTE OR THE OTHER LOAN DOCUMENTS. 
  
 Section
8.8. Headings. The Article and Section headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose. 
  

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 Section 8.9. Assignment. 
  
 (a) Borrower may not sell, assign or transfer any interest in the Loan Documents, or any portion of the foregoing
(including, without limitation, Borrower’s rights, title, interests, remedies, powers and duties hereunder and thereunder) without Agent’s prior written consent. Each Lender shall have the right to assign or participate this Agreement
and/or its interest in any of the other Loan Documents and the obligations hereunder to any Person. In the event of an assignment by any Lender, (a) the assignee shall have, to the extent of such assignment, the same rights, benefits and obligations
as it would have if it were an original “Lender” hereunder; (b) the assignee shall be deemed for all purposes to be a “Lender” hereunder; and (c) upon any such substitution of Lender, a replacement or addition “Lender
signature page” shall be executed by the new Lender and attached to this Agreement and thereupon become a part of this Agreement. After the effectiveness of any assignment, the new Lender shall provide notice to Borrower of the identity,
address and other pertinent information pertaining to the new Lender. Notwithstanding anything in this Agreement to the contrary, after an assignment by any Lender, the “Lender” (prior to such assignment) shall continue to have the
benefits of any rights or indemnifications and shall continue to have the obligations contained herein which such Lender had during the period such party was a “Lender” hereunder. Borrower shall not be obligated to interact directly with
any participant in the Loan or to pay or reimburse the Agent or any Lender for any Transaction Costs that would not have been incurred by the Agent or such Lender had no such participation in the Loan been issued. 
  
 (b) The Agent may from time to time elect to enter into a servicing agreement
with a servicer, pursuant to which the servicer shall be appointed to service and administer the Loan and the Account Collateral in accordance with the terms hereof and to exercise any and all other rights of the Lenders with respect to the Loan as
set forth in such servicing agreement. The Agent shall promptly notify the Borrower if the Agent shall elect to appoint or change the servicer, and all notices and other communications from the Borrower to the Agent shall be delivered to the
servicer with a copy concurrently delivered to the Agent, and any notice, direction or other communication from the servicer to the Borrower shall have the same force and effect as a notice, direction or communication from the Agent. The servicer
shall be entitled to be reimbursed for any cost, expense or liability which is incurred by the servicer pursuant to such servicing and administrative duties and which would otherwise be reimbursable to the Lenders under this Agreement or any other
Loan Document in the same manner and to the same extent as if the Lenders incurred such cost, expense or liability in the first place. The parties hereto acknowledge and agree that the servicer shall be a third party beneficiary to this Agreement
and the other Loan Documents. 
  
 Section 8.10.
Severability. Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under applicable
law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement. 
  
 Section 8.11. Preferences. Agent and the Lenders shall have no
obligation to marshal any assets in favor of Borrower or any other party or against or in payment of any or all of the obligations of Borrower pursuant to this Agreement, the Note or any other Loan Document. The Lenders shall have the continuing and
exclusive right to apply or reverse and reapply any and all payments by Borrower to any portion of the obligations of Borrower hereunder, provided that such application or reapplication is performed by the Lenders in accordance with the terms of
this Agreement or any other applicable Loan Document. To the extent Borrower makes a payment or payments to Agent or any Lender for Borrower’s benefit, which payment or proceeds or any part thereof are subsequently invalidated, declared to be
fraudulent or preferential, set aside or required to be repaid to a trustee, receiver or any other party under 
  

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 any bankruptcy law, state or federal law, common law or equitable cause, then, to the extent of such payment or proceeds
received, the obligations hereunder or part thereof intended to be satisfied shall be revived and continue in full force and effect, as if such payment or proceeds had not been received by Agent or such Lender. 
  
 Section 8.12. Waiver of Notice. Borrower shall not be entitled to any
notices of any nature whatsoever from Agent, any Lender or Collateral Agent except with respect to matters for which this Agreement or another Loan Document specifically and expressly provides for the giving of notice by Agent, such Lender and/or
Collateral Agent to Borrower and except with respect to matters for which Borrower is not, pursuant to applicable Legal Requirements, permitted to waive the giving of notice. Borrower hereby expressly waives the right to receive any notice from
Agent, any Lender and Collateral Agent with respect to any matter for which this Agreement or the other Loan Documents does not specifically and expressly provide for the giving of notice by Agent or such Lender or Collateral Agent to Borrower.

  
 Section 8.13. Failure to Consent. If Borrower shall
seek the approval by or consent of Agent or the Lenders hereunder or under the Note, or any of the other Loan Documents, and Agent or the Lenders shall fail or refuse to give such consent or approval, then Borrower shall not be entitled to any
damages for any withholding or delay of such approval or consent by Agent or the Lenders, it being intended that Borrower’s sole remedy shall be to bring an action for an injunction or specific performance. 
  
 Section 8.14. Schedules Incorporated. The information set forth on the
cover, heading and recitals hereof, and the Schedules attached hereto, are hereby incorporated herein as a part of this Agreement with the same effect as if set forth in the body hereof. 
  
 Section 8.15. Offsets, Counterclaims and Defenses. Any assignee of any Lender’s interest in and to this
Agreement and the other Loan Documents shall take the same free and clear of all offsets, counterclaims or defenses which are unrelated to this Agreement and the other Loan Documents which Borrower may otherwise have against any assignor or this
Agreement and the other Loan Documents. No such unrelated counterclaim or defense shall be interposed or asserted by Borrower in any action or proceeding brought by any such assignee upon this Agreement or upon any other Loan Document. Any such
right to interpose or assert any such unrelated offset, counterclaim or defense in any such action or proceeding is hereby expressly waived by Borrower. 
  
 Section 8.16. No Joint Venture or Partnership. Borrower, Agent and each Lender intend that the relationship created hereunder be solely that of
borrower and lender. Nothing herein is intended to create a joint venture, partnership, tenancy-in-common, or joint tenancy relationship between Borrower and any Lender nor to grant any Lender any interest in the Collateral other than that of
secured party, mortgagee or lender. 
  
 Section 8.17. Waiver of
Marshalling of Assets Defense. To the fullest extent Borrower may legally do so, Borrower waives all rights to a marshalling of the assets of Borrower, and others with interests in Borrower, and of the Collateral, or to a sale in inverse order
of alienation in the event of foreclosure of the interests hereby created, and agrees not to assert any right under any laws pertaining to the marshalling of assets, the sale in inverse order of alienation, homestead exemption, the administration of
estates of decedents, or any other matters whatsoever to defeat, reduce or affect the right of any Lender under the Loan Documents to a sale of any Collateral for the collection of the Indebtedness without any prior or different resort for
collection, or the right of any Lender to the payment of the Indebtedness out of the Net Proceeds of the Collateral in preference to every other claimant whatsoever. 
  

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 Section 8.18. Waiver of Counterclaim. To the extent permitted by applicable law, Borrower hereby
waives the right to assert a counterclaim, other than compulsory counterclaim, in any action or proceeding brought against it by Agent or its agents. 
  
 Section 8.19. Conflict; Construction of Documents. In the event of any conflict between the provisions of this Agreement and the provisions of any
of the other Loan Documents, the provisions of this Agreement shall prevail. The parties hereto acknowledge that they were represented by counsel in connection with the negotiation and drafting of the Loan Documents and that the Loan Documents shall
not be subject to the principle of construing their meaning against the party that drafted same. 
  
 Section 8.20. Brokers and Financial Advisors. Borrower and the initial Lender hereby represent that they have dealt with no financial advisors,
brokers, underwriters, placement agents, agents or finders in connection with the transactions contemplated by this Agreement. Borrower and initial Lender hereby agree to indemnify and hold the other and Collateral Agent harmless from and against
any and all claims, liabilities, costs and expenses of any kind in any way relating to or arising from a claim by any Person that such Person acted on behalf of the indemnifying party in connection with the transactions contemplated herein. The
provisions of this Section 8.20 shall survive the expiration and termination of this Agreement and the repayment of the Indebtedness. 
  
 Section 8.21. Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be an
original, but all of which shall together constitute one and the same instrument. 
  
 Section 8.22. Estoppel Certificates. Agent, Borrower and each Lender hereby agree at any time and from time to time upon not less than fifteen (15) days prior written notice by Borrower or such Lender to
execute, acknowledge and deliver to the party specified in such notice, a statement, in writing, certifying that this Agreement is unmodified and in full force and effect (or if there have been modifications, that the same, as modified, is in full
force and effect and stating the modifications hereto), and stating whether or not, to the knowledge of such certifying party, any Default or Event of Default has occurred and is then continuing, and, if so, specifying each such Default or Event of
Default; provided, however, that it shall be a condition precedent to any Lender’s obligation to deliver the statement pursuant to this Section 8.22, that such Lender shall have received, together with Borrower’s
request for such statement, an Officer’s Certificate stating that, to the knowledge of Borrower, no Default or Event of Default exists as of the date of such certificate (or specifying such Default or Event of Default). 
  
 Section 8.23. Payment of Expenses. Borrower shall pay all Transaction
Costs, which shall include, without limitation, (a) reasonable out-of-pocket costs and expenses of Agent in connection with (i) the negotiation, preparation, execution and delivery of the Loan Documents and the documents and instruments referred to
therein; (ii) the creation, perfection or protection of Lenders’ Liens in the Collateral (including, without limitation, fees and expenses for title and lien searches or amended or replacement Mortgages, UCC financing statements or Collateral
Security Instruments, title insurance premiums and filing and recording fees, third party due diligence expenses for the Property plus travel expenses, accounting firm fees, costs of the Appraisals, Environmental Reports (and an environmental
consultant), and the Engineering Reports and costs and fees incurred in connection with arranging, setting up, servicing and maintaining the Account Collateral); (iii) the negotiation, preparation, execution and delivery of any amendment, waiver,
restructuring or consent relating to any of the Loan Documents, and (iv) the preservation of rights under and enforcement of the Loan Documents and the documents and instruments referred to therein, including any communications or discussions
relating to any action that Borrower shall from time to time request Agent to take, as well as any restructuring or rescheduling of the Indebtedness, (b) the reasonable fees, expenses and other charges of counsel to Agent in connection with

  

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 all of the foregoing, (c) all reasonable fees and expenses of each of the servicer appointed pursuant to Section
8.9(b) and Collateral Agent and its respective counsel and (d) Agent’s (or, where reasonably deemed necessary by Agent, any other Lender’s) reasonable out-of-pocket travel expenses in connection with site visits to the Property.

  
 Section 8.24. Non-Recourse. Anything contained herein,
in the Note or in any other Loan Document to the contrary notwithstanding, no recourse shall be had for the payment of the principal or interest on the Loan or for any other Indebtedness, obligation or liability hereunder or under any other Loan
Document or for any claim based hereon or thereon or otherwise in respect hereof or thereof against (i) any agent, contractor, director, officer, member, consultant, manager, stockholder, subscriber to capital stock, incorporator, beneficiary,
participant, trustee or advisor of Borrower, or any partner or member therein; (ii) any legal representative, heir, estate, successor or assign of any thereof; (iii) any corporation (or any officer, director, employee or shareholder thereof),
limited liability company (or member thereof), partnership (or any partner thereof), individual or entity to which any ownership interest in Borrower shall have been directly or indirectly transferred; (iv) any purchaser of any asset of Borrower; or
(v) any other Person (except Borrower), for any deficiency or other sum owing with respect to the Note or any other Indebtedness, obligation or liability or arising under this Agreement or any Loan Document. It is understood that neither the Note
nor any other Indebtedness, obligation or liability under or with respect to this Agreement and any other Loan Document may be enforced against any Person described in clauses (i) through (v) above; provided, however,
that the foregoing provisions of this paragraph shall not: 
  
 (A) prevent recourse to Borrower, the assets of Borrower, the Property or any other instrument or document which is pledged by Borrower to the Lenders pursuant to the Loan Documents, including all Collateral;

  
 (B) have any applicability whatsoever to the
collateral pledged pursuant to the Pledge Agreement or limit the liability of the parties under the Guaranty of Non-Recourse Obligations or the liability of the parties thereunder; or 
  
 (C) constitute a waiver, release or discharge of any indebtedness or obligation evidenced by the Note or
secured by the Loan Documents, and the same shall continue until paid or discharged in full; or 
  
 (D) prevent recourse to Borrower and Guarantor and their respective assets for repayment of the Indebtedness, and the Indebtedness shall
be fully recourse to the Borrower and the Guarantor, in the event that any petition for bankruptcy, reorganization or arrangement pursuant to federal bankruptcy law, or any similar federal or state law, shall be filed (A) by Borrower or (B) against
Borrower with the consent or acquiescence of Borrower or the Guarantor or their respective Affiliates; or 
  
 (E) prevent recourse to Borrower and Guarantor and their respective assets, and Borrower and Guarantor shall be fully and personally
liable, for any loss, costs, liability, damage or expense suffered or incurred by Agent or any Indemnified Party related to or arising from: 
  

	 	(1)	any fraud, misappropriation or misapplication of funds (including Loss Proceeds or Rents) committed by or on behalf of Borrower in contravention of the Loan Documents, or
intentional misrepresentation contained in any Loan Documents or report furnished pursuant to any Loan Document; 

  

	 	(2)	any Transfer in violation of the terms of the Loan Documents; 

  

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	 	(3)	violation of any of the terms, covenants and conditions to maintain Borrower as a Single-Purpose Entity; 

  

	 	(4)	additional financing obtained by Borrower (whether secured or unsecured) in violation of the terms of the Loan Documents; 

  

	 	(5)	actual physical waste to the Property; 

  

	 	(6)	breach of any representation, warranty or covenant in this Agreement or the Environmental Indemnity Agreement, concerning Environmental Laws and Hazardous Substances;

  

	 	(7)	any security deposits received by Borrower or Manager from tenants not being properly applied, returned to tenants when due or delivered to Agent, a receiver or a purchaser of the
Property in the event of a foreclosure sale upon such Person taking possession of the Property; 

  

	 	(8)	any Legal Requirement mandating the forfeiture by Borrower of the Collateral or any portion thereof because of the conduct or purported conduct of criminal activity by Borrower or
any Affiliate in connection therewith; 

  

	 	(9)	if any Lien is voluntarily placed on the Collateral or any portion thereof in contravention of the Loan Documents and such Lien is not discharged and removed within ten (10) days
after notice; 

  

	 	(10)	any and all liabilities, obligations, losses, damages, costs and expenses (including, without limitation, reasonable attorneys’ fees, causes of action, suits, claims, demands
and adjustments of any nature or description whatsoever) which may at any time be imposed upon, incurred by or awarded against Agent or any Lender, in the event (and arising out of such circumstances) that Borrower should raise any defense,
counterclaim and/or allegation in any foreclosure action by Agent relative to the Property, the Account Collateral or any part thereof which is found by a court to have been raised by Borrower in bad faith or to be without basis in fact or law;

  

	 	(11)	the costs incurred in any bankruptcy or similar proceeding which may be brought by or against Borrower, or any pledgor or Guarantor; or 

  

	 	(12)	the failure to pay Impositions assessed against the Property to the extent there was sufficient funds available to pay the same, or the failure to maintain insurance as required
under the Loan Documents, or the failure to pay any deductible amount in respect of any insurance maintained in respect of the Property, or the failure to pay and discharge any mechanic’s or materialman’s Liens against the Property to the
extent there was sufficient funds available to pay and discharge the same or the work relating to such Liens was not approved by Agent in writing or permitted by the Loan Documents. 

  

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 ARTICLE IX. 
 THE AGENT 
  
 Section 9.1.
Appointment, Powers and Immunities. Each Lender hereby irrevocably appoints and authorizes Agent to act as its agent hereunder and under the other Loan Documents with such powers as are specifically delegated to Agent by the terms of this
Agreement and of the other Loan Documents, together with such other powers as are reasonably incidental thereto. Agent (which term as used in this sentence and in Section 9.5 and the first sentence of Section 9.6 hereof shall
include reference to its Affiliates and its own and its Affiliates’ officers, directors, employees and agents): (a) shall have no duties or responsibilities to the Lenders except those expressly set forth in this Agreement and in the other Loan
Documents, and shall not by reason of this Agreement or any other Loan Document be a trustee for any Lender; (b) shall not be responsible to the Lenders for any recitals, statements, representations or warranties contained in this Agreement or in
any other Loan Document, or in any certificate or other document referred to or provided for in, or received by any of them under, this Agreement or any other Loan Document, or for the value, validity, effectiveness, genuineness, enforceability or
sufficiency of this Agreement or any other Loan Document or any other document referred to or provided for herein or therein or for any failure by Borrower, or any other Person to perform any of their obligations hereunder or thereunder; (c) shall
not be required to initiate or conduct any litigation or collection proceedings hereunder or under any other Loan Document; and (d) shall not be responsible to the Lenders for any action taken or omitted to be taken by it hereunder or under any
other Loan Document or under any other document or instrument referred to or provided for herein or therein or in connection herewith or therewith, except for its own gross negligence or willful misconduct. Agent may employ agents and
attorneys-in-fact and shall not be responsible to the Lenders for the negligence or misconduct of any such agents or attorneys-in-fact selected by it in good faith. 
  
 Section 9.2. Reliance by Agent. Agent shall be entitled to rely upon any certification, notice or other communication
(including, without limitation, any thereof by telephone, facsimile transmission, telex, electronic mail, or cable) believed by it to be genuine and correct and to have been signed or sent by or on behalf of the proper Person or Persons, and upon
advice and statements of legal counsel, independent accountants and other experts selected by Agent in good faith. As to any matters not expressly provided for by this Agreement or any other Loan Document, Agent shall in all cases be fully protected
in acting, or in refraining from acting, hereunder or thereunder in accordance with the instructions given by all of the Lenders, and such instructions of such Lenders and any action taken or failure to act pursuant thereto shall be binding on all
of the Lenders. 
  
 Section 9.3. Defaults. Agent shall not
be deemed to have knowledge or notice of the occurrence of a Default or Event of Default unless Agent has received written notice from a Lender or Borrower specifying such Default and stating that such notice is a “Notice of Default”. In
the event that Agent receives such a notice of the occurrence of a Default or Event of Default, Agent shall give prompt notice thereof to the Lenders. Agent shall (subject to Section 9.7 hereof) take such action with respect to such Default
or Event of Default as shall be directed by all Lenders, provided that, unless and until Agent shall have received such directions, Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with
respect to such Default or Event of Default as it shall deem advisable in the best interest of the Lenders except to the extent that this Agreement expressly requires that such action be taken, or not be taken, only with the consent or upon the
authorization of all of the Lenders. 
  
 Section 9.4. Rights as
a Lender. With respect to the Loan made by it, Agent in its capacity as a Lender hereunder shall have the same rights and powers hereunder as any other Lender and my exercise the same as though it were not acting as Agent, and the term
“Lender” or “Lenders” shall, unless the context otherwise indicates, include Agent in its individual capacity. Agent and its affiliates may (without having to account therefor to any Lender) lend money to, make
investments in and 
  

 94 

 generally engage in any kind of business with Borrower or any of their Affiliates as if it were not acting as Agent, and
Agent and its Affiliates may accept fees and other consideration from Borrower or such Affiliate for services in connection with this Agreement or otherwise without having to account for the same to the Lenders. 
  
 Section 9.5. Indemnification. The Lenders agree to indemnify Agent (to
the extent not reimbursed by Borrower, but without limiting the obligations of Borrower under the Loan Documents) ratably in accordance with their respective interests in the Loan, for any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any kind and nature whatsoever that may be imposed on, incurred by or asserted against Agent (including by any Lender) arising out of or by reason of any investigation in or
in any way relating to or arising out of this Agreement or any other Loan Document or any other documents contemplated by or referred to herein or therein or the Transaction (including, without limitation, the costs and expenses that Borrower is
obligated to pay under the Loan Documents, but excluding, unless a Default or Event of Default has occurred and is continuing, normal administrative costs and expenses incident to the performance of its agency duties hereunder) or the enforcement of
any of the terms hereof or thereof or of any such other documents, provided that no Lender shall be liable for any of the foregoing to the extent they arise from the gross negligence or willful misconduct of the party to be indemnified.

  
 Section 9.6. Non-Reliance on Agent and Other Lenders.
Each Lender agrees and acknowledges that it has, independently and without reliance on Agent or any other Lender, and based on such documents and information as it has deemed appropriate, made its own credit analysis of Borrower and its own decision
to enter into this Agreement and that it will, independently and without reliance upon Agent or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own analysis and decisions
in taking or not taking action under this Agreement or under any other Loan Document. Agent shall not be required to keep itself informed as to the performance or observance by Borrower of this Agreement or any of the other Loan Documents or to
inspect the properties or books of Borrower or any of their Affiliates. Except for notices, reports and other documents and information expressly required to be furnished to the Lenders by Agent hereunder, Agent shall not have any duty or
responsibility to provide any Lender with any credit or other information concerning the affairs, financial condition or business of Borrower or any of their Affiliates that may come into the possession of Agent or any of its Affiliates. 

 
 Section 9.7. Failure to Act. Except for action expressly required
of Agent hereunder and under the other Loan Documents, Agent shall in all cases be fully justified in failing or refusing to act hereunder and thereunder unless it shall receive further assurances to its satisfaction from the Lenders of their
indemnification obligations under Section 9.5 hereof against any and all liability and expense that may be incurred by it by reason of taking or continuing to take any such action. 
  
 Section 9.8. Resignation of Agent. Subject to the appointment and acceptance of a successor Agent as provided below,
Agent may resign upon giving notice thereof to the Lenders; provided, however, that such resignation shall not be effective until such time as the successor Agent is in place and shall deliver written notice of such appointment to
Borrower. Upon any such resignation, the Lenders shall have the right to appoint a successor Agent, subject to, if an Event of Default has not occurred and is not continuing, the consent of the Borrower, such consent not to be unreasonably withheld,
delayed or conditioned. If no successor Agent shall have been so appointed by the Lenders and shall have accepted such appointment within 30 days after the retiring Agent’s giving of notice of resignation, then the retiring Agent may, on behalf
of the Lenders appoint a successor Agent, that shall be a sophisticated financial institution. Upon the acceptance of any appointment as Agent hereunder by a successor Agent, such successor Agent shall thereupon succeed to and become vested with all
the rights, powers, privileges and duties of the retiring Agent, and the retiring Agent shall be discharged from its 
  

 95 

 duties and obligations hereunder. After any retiring Agent’s resignation hereunder as Agent, the provisions of this
Article 9 shall continue in effect for its benefit in respect of any actions taken or omitted to be taken by it while it was acting as Agent. 
  
 Section 9.9. Agency Fee. Each Lender will pay to Agent an agency fee as may be agreed upon between such Lender and Agent. Borrower shall not be
liable for the payment of such fee. 
  
 Section 9.10. Consents
under Loan Documents. Agent may consent to any modification, supplement or waiver under any of the Loan Documents, provided that, without the prior consent of each Lender, Agent shall not release any Collateral or otherwise terminate any
Lien under any Loan Document providing for collateral security, or agree to additional obligations being secured by such collateral security (unless the Lien for such additional obligations shall be junior to the Lien in favor of the Obligations),
except that no such consent shall be required, and Agent is hereby authorized, to release any Lien covering Collateral that is the subject of a disposition permitted hereunder. 
  
 Section 9.11. Notices, Reports and Other Communications. Agent shall provide, at its expense, copies of each notice,
report, document, correspondence or other written communication delivered to Agent by Borrower or any Affiliate of Borrower pursuant to any Loan Document, to each Lender identified in such notice, report, document, correspondence or other written
communication or reasonably determined by Agent to be entitled thereto or affected thereby, as soon as practicable after Agent’s receipt thereof. 
  

 96 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their duly
authorized representatives, all as of the day and year first above written. 
  

					
	AGENT AND INITIAL LENDER:
	
	DEUTSCHE BANK AG, CAYMAN ISLANDS BRANCH, a Cayman Islands Branch of a Foreign Bank
		
	By:	 	  

	Name:	 	  

	Title:	 	  

		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	BORROWER:
	
	FIRST STATES INVESTORS DB I, LLC, a Delaware limited liability company
		
	By:	 	  

	Name:	 	Sonya A. Huffman
	Title:	 	Vice President
	
	COLLATERAL AGENT:
	
	LASALLE BANK NATIONAL ASSOCIATION, a national banking association (as Collateral Agent for the Lenders only)
		
	By:	 	  

	Name:	 	 
	Title:	 	Vice President

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