Document:

Exhibit 10.4

 

EXECUTION

 

PLEDGE AND SECURITY
AGREEMENT

(Mezzanine Loan)

 

THIS PLEDGE AND SECURITY AGREEMENT (this “Agreement”)
is made as of September 30, 2015 by ARC NY1440BWY1 MEZZ, LLC, a Delaware limited liability company (“Borrower”),
in favor of PARAMOUNT GROUP FUND VIII 1440 BROADWAY MEZZ LP, a Delaware limited partnership (together with its successors and permitted
assigns, “Lender”).

 

RECITALS

 

A.           WHEREAS,
on the date hereof, Lender has made a loan to Borrower in the amount of $40,000,000 (the “Mezzanine Loan”) pursuant
to the terms of that certain Mezzanine Loan Agreement of even date herewith by and between Lender and Borrower (as amended, modified,
supplemented or replaced from time to time, the “Mezzanine Loan Agreement”).

 

B.           WHEREAS,
ARC NY1440BWY1, LLC, a Delaware limited liability company (“Issuer”), is the owner of certain parcels of real
property more particularly described in the Mezzanine Loan Agreement.

 

C.           WHEREAS,
Issuer was formed as a Delaware limited liability company and is governed by the terms and provisions of that certain Amended and
Restated Limited Liability Company Agreement, dated as of the date hereof (as amended, modified, supplemented or restated in accordance
with the terms of the Mezzanine Loan Agreement, the “Formation Agreement”).

 

D.           WHEREAS,
Borrower is the legal and beneficial owner of 100% of the issued and outstanding membership interests in Issuer.

 

F.           WHEREAS,
Lender is unwilling to make the Mezzanine Loan unless Borrower enters into this Agreement.

 

NOW, THEREFORE, for Ten Dollars ($10.00) and
in consideration of the mutual covenants and agreements herein contained, and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

Section 1.          Capitalized
Terms. All capitalized terms used but not defined herein shall have the respective meanings ascribed thereto in the Mezzanine
Loan Agreement and, for the purposes of this Agreement, the following capitalized terms shall have the following meanings:

 

“Article 8 Matter”
means any action, decision, determination or election by Issuer, Borrower or any of their members that their membership interests
or other equity interests, as applicable, be, or cease to be, a “security” as defined in and governed by Article 8
of the Uniform Commercial Code, and all other matters related to any such action, decision, determination or election.

 

    	 	 	 

     

    

 

“Bankruptcy Code” means
Title 11 of the United States Code, as amended, modified, succeeded or replaced, from time to time.

 

“Distributions” means all
distributions (whether in cash or in kind) in respect of the Equity Interests and all interest in respect of, and all proceeds
of, any instrument or interest constituting part of the Pledged Collateral, of whatever kind or description, real or personal,
whether in the ordinary course or in partial or total liquidation or dissolution, or any recapitalization, reclassification of
capital, or reorganization or reduction of capital, or otherwise.

 

“Equity Interests” means
all limited liability company membership interests or other equity interests of, and all other right, title and interest now owned
or hereafter acquired by, Borrower in and to Issuer, including the interests described on Schedule 1 attached hereto.

 

“Event of Default” shall
have the meaning ascribed thereto in the Mezzanine Loan Agreement.

 

“General Intangibles” shall
have the meaning ascribed thereto in Article 9 of the UCC.

 

“No-Action Letters” means
various No-Action Letters issued by the SEC staff as described in Section 13(b) below.

 

“Obligations” means Borrower’s
obligations provided in the Mezzanine Loan Agreement, the Mezzanine Note and the other Mezzanine Loan Documents to pay the Indebtedness
payable to Lender in respect of the Mezzanine Loan thereunder, and to perform and observe all of the terms, covenants and provisions
of each of the Mezzanine Loan Documents, including the payment of interest that, but for the commencement of a case under the Bankruptcy
Code, would accrue on such Indebtedness.

 

“Pledged Collateral” means
all of Borrower’s right, title and interest, whether now owned or hereafter acquired, in, under and to (i) the Formation
Agreement and the Equity Interests, including, without limitation, Borrower’s share of the profits, losses and capital of
Issuer, and all Voting Rights, claims, powers, privileges, benefits, options or rights of any nature whatsoever which currently
exist or may be issued or granted by Issuer to Borrower, and all instruments, whether heretofore or hereafter acquired, evidencing
such rights and interests, (ii) all Distributions, (iii) all General Intangibles relating to the foregoing, (iv) the proceeds
(including claims against third parties), products and accessions of the foregoing, (v) all replacements and substitutions of the
foregoing, (vi) all books and records (including computerized records, software and disks) relating to any of the foregoing, (vii)
all other rights appurtenant to the property described in foregoing clauses (i) through (vi), and (viii) any stock certificates,
share certificates, limited liability company certificates, partnership certificates or other certificates or instruments evidencing
the foregoing.

 

“SEC” means the United
States Securities and Exchange Commission.

 

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“Securities Act” means
the Securities Act of 1933, as it may be amended from time to time.

 

“Security Interest” shall
have the meaning ascribed thereto in Section 2 hereof.

 

“Securities Laws” means
the Securities Act and applicable state securities laws.

 

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

 

“Voting Rights” means all
of Borrower’s rights under the Formation Agreement to vote and give approvals, consents, decisions and directions and exercise
any other similar right with respect to the Pledged Collateral.

 

Section 2.          Pledge.
Borrower hereby grants, pledges, hypothecates, transfers and assigns to Lender a first priority security interest in and lien on
the Pledged Collateral and in all proceeds thereof (the “Security Interest”) as collateral security for the
prompt and complete repayment and performance when due (whether at the stated maturity or otherwise) of the Obligations. No filing
or other action is or will be necessary to perfect such security interest of Lender in the Equity Interests that are represented
by a certificate, except for delivery to Lender of the certificates evidencing the Equity Interests endorsed in blank or accompanied
by appropriate powers duly endorsed in blank. The security interest of Lender granted pursuant to this Section 2 in any
of the Pledged Collateral that is not represented by a certificate, if any, shall be perfected by the filing of a financing statement
or statements as hereinafter provided.

 

Section 3.          Distributions.
Except during the continuance of an Event of Default, Borrower shall have the right to receive Distributions in respect of the
Pledged Collateral. Borrower hereby irrevocably authorizes and directs Issuer, upon the occurrence and during the continuance of
an Event of Default under the Mezzanine Loan Agreement and subject to the provisions of the Mezzanine Loan Agreement, to distribute,
transfer, pay and deliver directly to Lender, and not to Borrower, in accordance with that certain Consent of Issuer attached hereto
as Exhibit A and made a part hereof (the “Consent”), any and all Distributions at such time and in such
manner as such Distributions would otherwise be distributed, transferred, paid and delivered to Borrower, for application in accordance
with the Mezzanine Loan Agreement. If, during the continuance of an Event of Default under the Mezzanine Loan Agreement, Borrower
receives any Distributions, Borrower shall accept the same as Lender’s agent and hold the same in trust on behalf of and
for the benefit of Lender and shall promptly deliver the same forthwith to Lender for application in accordance with the Mezzanine
Loan Agreement, together with appropriate forms of assignment, UCC financing statements, and other appropriate instruments, if
necessary, indicating the Security Interests of Lender in and to such Distribution. Borrower authorizes and directs Lender to apply
any Distributions received by Lender in the manner described in the Mezzanine Loan Agreement.

 

Section 4.          Voting
Rights.

 

(a)          Borrower
hereby collaterally assigns the Voting Rights to Lender, subject to the terms and provisions of this Agreement and the other Mezzanine
Loan Documents.

 

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(b)          Except
during the continuance of an Event of Default, Borrower may exercise the Voting Rights, provided that Borrower shall not exercise
the Voting Rights in a manner which would result in a violation of any provision of this Agreement, the Mezzanine Loan Agreement
or any other Mezzanine Loan Document. Upon the occurrence and during the continuance of an Event of Default, all rights of Borrower
to exercise the Voting Rights shall cease and Lender shall have the right to exercise, in person or by its nominees or proxies,
all Voting Rights assigned to it hereunder and Lender shall exercise such Voting Rights in such manner as Lender in its sole discretion
shall deem to be in Lender’s best interests (subject to the terms of this Agreement and the other Mezzanine Loan Documents
and also provided that Lender shall be liable for its gross negligence, bad faith and willful misconduct pursuant to Section
15(a)). Upon the occurrence and during the continuance of an Event of Default, Borrower shall effect the directions of Lender
in connection with any such exercise in accordance with this Agreement.

 

(c)          In
connection with Lender’s exercise of the Voting Rights, Borrower shall cause Issuer to rely on a notice from Lender stating
that an Event of Default has occurred and is continuing under the Mezzanine Loan Agreement or any other Mezzanine Loan Document,
in which event no further direction from Borrower shall be required to effect the assignment of Voting Rights hereunder from Borrower
to Lender, and Issuer shall immediately permit Lender to exercise all of the Voting Rights in respect of the business and affairs
of Issuer. If the applicable Event of Default is no longer continuing, Borrower shall again automatically have all of the rights
to exercise the Voting Rights and Lender promptly shall so notify Borrower and Issuer in writing in confirmation thereof.

 

(d)          Borrower
acknowledges that, except for this Agreement and the other Mezzanine Loan Documents, the Formation Agreement and related organizational
documents, it has not entered into, and it is not bound by the terms of, any agreement or understanding, whether oral or written,
with respect to the purchase, sale, transfer or voting of any Voting Rights.

 

Section 5.          Termination
of Agreement. Immediately upon payment in full of all of the Obligations in accordance with the terms of the Mezzanine Loan
Agreement and the other Mezzanine Loan Documents, this Agreement and all of Lender’s rights under this Agreement automatically
shall immediately cease, terminate and be of no further force or effect. Thereafter, upon the request of Borrower and at Borrower’s
sole cost and expense, Lender shall deliver to Borrower, without any representations, warranties or recourse of any kind whatsoever,
such of the Pledged Collateral (including any certificate or certificates evidencing the Equity Interests, if any, along with the
partnership, membership or stock powers, as applicable, endorsed in blank, if any) as then may be held or controlled by Lender
hereunder, and execute and deliver to Borrower such documents as Borrower may reasonably request to evidence such termination,
including, without limitation, UCC termination statements or shall authorize Borrower to file UCC-3 termination statements or similar
documents and agreements to terminate all of Lender’s rights under this Agreement and the other Mezzanine Loan Documents;
provided that if Lender has misplaced or is otherwise unable to deliver the Pledged Collateral (including any certificate or certificates
evidencing the Equity Interests, along with the membership powers endorsed in blank), Lender shall execute and deliver to Borrower
a lost certificate affidavit and indemnity with respect to the Pledged Collateral reasonably acceptable to Borrower. Any Pledged
Collateral released from the Lien of this Agreement, the Mezzanine Loan Agreement and the other Mezzanine Loan Documents pursuant
to this Section 5 shall, effective upon such release, no longer be deemed “Pledged Collateral” for any
purpose under this Agreement or the other Mezzanine Loan Documents. Lender agrees, at the request and sole cost and expense of
Borrower, to notify Issuer and any other third party reasonably requested by Borrower of such termination; provided that, if Borrower
shall arrange for repayment of the Obligations in their entirety by a third party, at Borrower’s request and at its sole
cost and expense, Lender shall assign the Mezzanine Note, this Agreement and any other Mezzanine Loan Documents (to the extent
requested by Borrower) to such third party, without recourse, representation or warranty except that Lender shall represent that
it has not transferred, pledged, sold or hypothecated the Mezzanine Loan to any other Person.

 

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Section 6.          Liability.
The trustees, officers, directors, employees and agents of Lender shall have no personal liability under this Agreement and any
obligation of Lender under this Agreement to Borrower or Issuer shall be satisfied solely from the assets of Lender.

 

Section 7.          Rights
of Lender.

 

(a)          Lender
shall not be liable for failure to collect or realize upon the Obligations or any collateral security or guarantee therefor, or
any part thereof, or for any delay in so doing nor be under any obligation to take any action whatsoever with regard thereto. Any
part or all of the Pledged Collateral held by Lender may, without notice, but only during the continuance of an Event of Default
and subject to the terms of the Mezzanine Loan Documents and all applicable laws, be transferred into the name of Lender or its
nominee and Lender or its nominee may thereafter without notice, exercise all Voting Rights and other rights in respect of the
Pledged Collateral, including the exercise of any and all rights of conversion, exchange, subscription or any other rights, privileges
or options in respect of the Pledged Collateral, as if it were the absolute owner thereof, all without liability except to account
for property actually received by Lender or its nominee and except for Lender’s gross negligence, bad faith and willful misconduct;
provided, however, that Lender or its nominee shall have no duty to exercise any of the foregoing actions, or any liability for
failure to do so or delay in so doing.

 

(b)          Lender
shall not be liable for the consequence of any Voting Rights cast or given by Lender in accordance with this Agreement, except
for any such liability resulting solely from Lender’s gross negligence, bad faith or willful misconduct.

 

(c)          Except
as otherwise expressly set forth in this Agreement, and except to the extent caused by Lender’s gross negligence, bad faith
or willful misconduct, Lender shall have no liability to Borrower with respect to the receipt and application by Lender of Distributions
pursuant to the terms hereof, the holding by Lender of any Pledged Collateral pursuant to and in accordance with this Agreement
and the other Mezzanine Loan Documents, or Lender’s taking, or failure to take, any action (including the obtaining of insurance)
with respect to any Pledged Collateral.

 

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(d)          Borrower
hereby authorizes Lender in its absolute discretion, prior to the termination of this Agreement pursuant to Section 5
hereof, (i) to file any and all financing and continuation statements in any jurisdiction or jurisdictions that Lender deems reasonably
appropriate (including, without limitation, all initial financing statements and continuation statements), naming Borrower as debtor,
with respect to any of the Pledged Collateral (including such as may be necessary to renew, extend and continue the perfection
of the Security Interest of Lender) without consent of or authentication by Borrower and consents to a photocopy or other reproduction
of this Agreement or of a financing statement being sufficient as a financing statement; and (ii) to file UCC financing statements
indicating that the collateral covered by such financing statements is “all assets in which Borrower now or hereafter has
rights.”

 

Section 8.          Remedies.
Upon the occurrence and during the continuance of an Event of Default, Lender, without demand of performance or other demand, advertisement
or notice of any kind (except as specified below or required by law) to or upon Borrower or any other Person (all and each of which
demands, advertisements and/or notices is hereby expressly waived to the extent permitted by applicable law), may, without obligation
to resort to other security, and in addition to and not in limitation of any and all other remedies reserved to Lender hereunder
or at law or in equity, forthwith collect, receive, appropriate and realize upon the Pledged Collateral, or any part thereof, and/or
may forthwith sell, assign, give an option or options to purchase, contract to sell or otherwise dispose of and deliver said Pledged
Collateral, or any part thereof, in one or more parcels at public or private sale or sales, at any exchange, broker’s board
or at Lender’s offices or elsewhere upon such terms and conditions as it may reasonably deem advisable and at such prices
as it may deem best with respect to its own interests, for cash or on credit or for future delivery without assumption of any credit
risk, with the right of Lender upon any such sale or sales, public or private, to purchase the whole or any part of the Pledged
Collateral so sold, free of any right or equity of redemption in Borrower, which right or equity is hereby expressly waived and
released to the extent permitted by law. Upon the occurrence and during the continuance of an Event of Default, Lender shall have
the right to proceed against the Pledged Collateral of Borrower as it shall determine in its sole discretion. Lender shall not
be obligated to make any sale of the Pledged Collateral if it shall determine not to do so, regardless of the fact that notice
of sale of the Pledged Collateral may have been given. Lender may, without notice or publication, adjourn any public or private
sale or cause the same to be adjourned from time to time by announcement at the time and place fixed for sale, and such sale may,
without further notice, be made at the time and place to which the same was so adjourned. In case the sale of all or any part of
the Pledged Collateral is made on credit or for future delivery, the Pledged Collateral so sold shall be retained by Lender until
the sale price is paid by the purchaser or purchasers thereof, Lender shall not incur any liability in case any such purchaser
or purchasers shall fail to take and pay for the Pledged Collateral so sold and, in case of any such failure, such Pledged Collateral
may be sold again upon like notice. To the extent permitted by law, Borrower hereby waives all rights of marshaling the Pledged
Collateral and any other security at any time held by Lender and any right of valuation or appraisal. Lender shall apply the net
proceeds of any such collection, recovery, receipt, appropriation, realization or sale, after deducting all reasonable costs and
expenses of every kind incurred therein or incidental to the care or safekeeping of any and all of the Pledged Collateral or in
any way relating to the rights of Lender hereunder, including reasonable attorney’s fees and legal expenses, to the payment
in whole or in part, of the Obligations together with interest thereon at the Default Rate under the Mezzanine Loan Agreement,
and only after so applying such net proceeds and after the payment by Lender of any other amount required by any provision of law,
including, without limitation, the UCC and any version of the Uniform Commercial Code in effect in any applicable jurisdiction,
need Lender account for the surplus, if any, to Borrower. Borrower agrees that Lender need not give more than 10 Business Days
notice of the time and place of any public sale or of the time and place if any private sale or other intended disposition is to
take place and that such notice is commercially reasonable notification of such matters. No notification need be given to Borrower
if it has, after default, signed a statement renouncing or modifying any right to notification of sale or other intended disposition.
Lender’s rights and remedies hereunder are cumulative, at law or in equity, with any and all of Lender’s other rights
in connection with the Mezzanine Loan, and Lender may exercise any of such rights or remedies in any order. In addition to the
rights and remedies granted to it in this Agreement and any other instrument securing, evidencing or relating to any of the Obligations,
Lender shall have all the rights and remedies of a secured party under the UCC, as if such rights and remedies were fully set forth
herein, and any rights and remedies of a secured party under any version of the Uniform Commercial Code in effect in any applicable
jurisdiction in which such rights or remedies are sought to be enforced.

 

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Section 9.          Right
to Become Member, Shareholder or Partner. (a) In addition to the remedies set forth in Section 8 hereof, upon the
occurrence and during the continuance of an Event of Default, Lender may, by delivering written notice to Issuer and Borrower,
after having acquired the right, title and interest of Borrower’s Equity Interests, succeed, or designate one or more nominees(s)
to succeed, to all right, title and interest of Borrower (including, without limitation, the right, if any, to vote on or take
any action with respect to Issuer) as a member of Issuer relating to the Equity Interests acquired. Borrower hereby irrevocably
authorizes and directs Issuer on receipt of any such notice (i) to deem and treat Lender or its nominee in all respects as a member
(and not merely an assignee of a member, shareholder or partner, as applicable), of Issuer entitled to exercise all the rights,
powers and privileges (including the right to vote on or take any action with respect to any and all membership matters pursuant
to the Formation Agreement) to receive all Distributions, to be credited with the capital account and to have all other rights,
powers and privileges appertaining to such membership, interests to which Borrower would have been entitled had Borrower’s
membership interests not been transferred to Lender or such nominee, (ii) to execute amendments to the Formation Agreement admitting
Lender or such nominee as a member, shareholder or partner, as applicable, in place of Borrower and (iii) to issue the membership
certificate(s) in the name of Lender or its nominee, with respect to each of the Equity Interests represented by a certificate
or certificates.

 

(b)          Notwithstanding
anything to the contrary contained herein, upon acquisition of any portion of the Pledged Collateral by Lender or any other Person
through foreclosure or assignment in lieu of foreclosure, Borrower shall not be required to make additional contributions or other
payments to Issuer or have any other obligation to Issuer.

 

Section 10.         Representations,
Warranties and Covenants of Borrower. Borrower hereby represents and warrants to and covenants and agrees with Lender with
respect to itself and the Pledged Collateral that:

 

(a)          Borrower
is, and at all times will maintain its existence as, a limited liability company organized solely under the laws of the State of
Delaware, has all requisite power and authority to execute, deliver and perform this Agreement and the Formation Agreement and
to consummate the transactions contemplated hereby.

 

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(b)          This
Agreement has been duly authorized, executed and delivered by Borrower, is the legal, valid and binding obligation of Borrower,
and is enforceable as to Borrower in accordance with its terms, subject, however, to bankruptcy, insolvency and other rights of
creditors generally and to general principles of equity.

 

(c)          The
execution, delivery, observance and performance by Borrower of this Agreement and the transactions contemplated hereby will not
result in any violation of the Formation Agreement or, to Borrower’s knowledge, of any constitutional provision, law, statute,
ordinance, rule or regulation applicable to it; or of any judgment, decree or order applicable to it and will not conflict with,
or cause a breach of, or default under, any such term or, except for the liens created or contemplated hereby, result in the creation
of any mortgage lien, pledge, charge or encumbrance upon any of its properties or assets pursuant to any such term.

 

(d)          It
is not necessary for Borrower to obtain or make any (i) governmental consent, approval or authorization, registration or filing
from or with any governmental authorities or (ii) consent, approval, waiver or notification of partners, creditors, lessors or
other nongovernmental persons, in each case, in connection with the execution and delivery of this Agreement or the consummation
of the transactions herein presently contemplated which has not been filed or obtained.

 

(e)          Borrower
is as of the date hereof (i) the sole economic, managing and voting member of Issuer, (ii) the owner of 100% of the membership
interests in Issuer and (iii) the sole owner of all direct beneficial interests in the Pledged Collateral. Borrower owns the Pledged
Collateral, and the Pledged Collateral is and shall remain, free and clear of any lien, mortgage, encumbrance, charge, pledge,
security interest, or claim of any kind (including, without limitation, any unconditional sale or other title retention agreement)
other than as created by this Agreement or as permitted by the Mezzanine Loan Agreement.

 

(f)          The
Equity Interests are, and Borrower covenants and agrees that it will ensure at all times that such Equity Interests remain, “securities”
within the meaning of the UCC and, in particular, with respect to the Equity Interests that are represented by a certificate or
certificates, are “certificated securities” within the meaning of Section 8-102(a)(4) of the UCC, and Borrower
has taken all steps necessary to afford Lender “control” of such Equity Interests within the meaning of the UCC.

 

(g)          Borrower
covenants and agrees to defend, at its sole cost and expense, Lender’s right and title to Lender’s Security Interest
in and to the Pledged Collateral and the proceeds thereof, created pursuant hereto, against the claims and demands of all Persons
whomsoever, subject to the Mezzanine Loan Permitted Encumbrances.

 

(h)          The
Equity Interests have been duly authorized and validly issued and are fully paid and nonassessable.

 

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(i)          The
Equity Interests constitute 100% of the interests in capital, profits, distribution, management and voting rights in Issuer.

 

(j)          Upon
Lender obtaining and maintaining possession of the certificates identified on Schedule 1 and the filing of a UCC financing
statement adequately describing the Pledged Collateral in the office of the Secretary of State of the State of Delaware, all steps
necessary to create and perfect the security interest created by this Agreement as a valid and continuing first priority lien on,
and first priority perfected (subject to possession of the certificates and filing of the financing statements referenced above)
security interest in, the Pledged Collateral, in favor of Lender, prior to all other liens, security interests and other claims
of any sort whatsoever other than the Mezzanine Loan Permitted Encumbrances, have been taken. Borrower has not granted a security
interest in the Pledged Collateral to any other party which has not been terminated or released, and the security interest granted
pursuant to this Agreement in the Pledged Collateral constitutes a valid first priority security interest in the Pledged Collateral,
enforceable as such against all creditors of, and purchasers from, Borrower, subject to the Mezzanine Loan Permitted Encumbrances.

 

(k)          Borrower
has not changed its name, or used, adopted or discontinued the use of any trade name, fictitious name or other trade name or trade
style.

 

(l)          Borrower
will not change its name in any manner which could make any financing or continuation statement filed hereunder seriously misleading
within the meaning of Section 9-507(c) of the UCC (or any other then-applicable provision of the UCC) unless Borrower shall
have given Lender at least thirty days’ prior notice thereof and shall have taken all action (or made arrangements to take
such action substantially simultaneously with such change, if it is impossible to take such action in advance) reasonably necessary
or reasonably requested by Lender to amend the financing statement or continuation statement provided pursuant to the terms of
this Agreement so that they are not seriously misleading.

 

(m)          Borrower
shall perform all of its material obligations under the Formation Agreement and shall not amend the Formation Agreement in contravention
of the Mezzanine Loan Agreement or in any manner that would reduce or impede Lender’s rights or remedies hereunder.

 

Section 11.         Certain
Covenants.

 

(a)          No
Disposition. Borrower agrees that, except to the extent permitted under the Mezzanine Loan Agreement, it will not directly
or indirectly sell, assign, transfer, exchange, encumber or otherwise dispose of, or grant any option with respect to, the Pledged
Collateral, nor will it create, except to the extent permitted under the Mezzanine Loan Agreement, incur or permit to exist any
security interest with respect to any of the Pledged Collateral or any proceeds thereof, except for the Security Interest provided
for by this Agreement.

 

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(b)          Delivery
of Certificates and Instruments. Any and all certificates or instruments at any time representing or evidencing any Pledged
Collateral shall be immediately delivered to and held by or on behalf of Lender pursuant hereto, and shall be in suitable form
for transfer by delivery, or shall be accompanied by instruments of transfer or assignment, duly executed in blank, all in form
and substance reasonably satisfactory to Lender. Lender shall have the right, at any time, after the occurrence and during the
continuance of an Event of Default, but subject to the terms of the Mezzanine Loan Documents and all applicable law, to transfer
to or to register in the name of Lender or its nominee any Pledged Collateral. In addition, Lender shall have the right at any
time to exchange certificates or instruments representing or evidencing Pledged Collateral for certificates or instruments of smaller
or larger denominations.

 

(c)          Other
Units. Borrower has not and shall not permit the issuance of any units of membership interests or stock, as applicable, or
other securities in addition to or in substitution for the Equity Interests.

 

Section 12.         Other
Partners, Shareholders and/or Members Shall Join. Every member, hereinafter admitted to Issuer as a successor or additional
member, shareholder or partner (to the extent permitted under the Mezzanine Loan Documents) shall at Lender’s request and
as a condition thereto, join in this Agreement and agree to be bound by the terms and provisions hereof, pursuant to a written
joinder and assumption agreement in form and substance reasonably satisfactory to Lender, and execute and deliver appropriate forms
of assignment and other appropriate instruments indicating the Security Interest of Lender in the member’s Pledged Collateral.
The failure of any new member to execute and deliver the same prior to or contemporaneously with its admission as a member in Issuer,
if such failure shall continue for 10 Business Days after request by Lender, shall constitute an Event of Default hereunder and
under the terms and provisions of the Mezzanine Loan Documents.

 

Section 13.         Foreclosure
Sales of Securities.

 

(a)          No
Obligation to Register. In exercising its remedies hereunder, Lender may be unable to sell Equity Interests publicly without
registering them under the Securities Laws, which would likely be an expensive and time-consuming undertaking and, in fact, one
which might be impossible to accomplish even if Lender were willing to invest the necessary time and money. Even though Lender
may be able to register Equity Interests under the Securities Laws, it may nonetheless regard such registration as too expensive
or too time-consuming (such determination to be made in Lender’s sole discretion). If Lender sells Equity Interests without
registration, Lender may be required to sell them only in private sales to a restricted group of offerees and purchasers who fulfill
certain suitability standards and who will be obliged to agree, among other things, to acquire the Equity Interests for their own
account for investment and not with a view to distributing or reselling them. Borrower acknowledges that such a private sale may
result in less favorable prices and other terms than a public sale. Borrower agrees that a private sale, even under these restrictive
conditions, will not be considered commercially unreasonable by Borrower solely by virtue of the fact that Lender has not registered
or sought to register the Equity Interests under the Securities Laws, even if Borrower or Issuer agrees to pay all costs of the
registration process.

 

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(b)          Right
of Lender to Purchase at No-Action Public Sale. Section 9-610 of the UCC states that Lender is able to purchase the Equity
Interests only if they are sold at a public sale. Lender has stated that SEC staff personnel have, over a period of years, issued
various No-Action Letters that describe procedures which, in the view of the SEC staff, permit a foreclosure sale of securities
to occur in a manner that is public for purposes of Part 6 of Article 9 of the UCC, yet not public for purposes of Section 4(2)
of the Securities Act. Lender has advised Borrower that Lender may wish to purchase the Equity Interests that are sold at a foreclosure
sale, and that such purchases would be appropriate in circumstances in which the Equity Interests are sold in conformity with the
principles set forth in the No-Action Letters. Lender has further advised that a foreclosure sale conducted in conformity with
the principles set forth in the No-Action Letters (i) shall be considered to be a “public” sale for purposes of Section 9-610
of the UCC; (ii) will not be considered commercially unreasonable solely by virtue of the fact that Lender has not registered or
sought to register the Equity Interests under the Securities Laws, even if Borrower agrees or Issuer agrees to pay all costs of
the registration process; and (iii) shall be considered to be commercially reasonable even if Lender purchases Equity Interests
at such a sale.

 

(c)          Intentionally
Omitted.

 

(d)          General
Standards Applicable to Foreclosure Sales. Borrower agrees that Lender shall have no general duty or obligation to make any
effort to obtain or pay any particular price for any Equity Interests sold by Lender pursuant to this Agreement (including sales
made to Lender). Lender may, in its discretion, among other things, accept the first offer received, or decide to approach or not
to approach any potential purchasers. Borrower hereby agrees that any sale or other disposition of the Pledged Collateral conducted
in accordance with the laws of the State of New York, in the State of New York and in conformity with reasonable commercial practices
of banks, insurance companies, or other financial institutions in the city and state where Lender is located in disposing of property
similar to the Pledged Collateral shall be deemed to be commercially reasonable, and Borrower acknowledges and agrees that it is
not commercially unreasonable for Lender to the extent permitted by applicable law (a) to fail to incur expenses reasonably deemed
significant by Lender to prepare the Pledged Collateral for disposition, (b) to advertise dispositions of the Pledged Collateral
through publications or media of general circulation for no more than twenty (20) days prior to such disposition and to permit
access to due diligence materials for no more than five (5) days prior to such disposition, (c) to conduct the sale in New York
City on a Business Day, (d) to contact other persons, whether or not in the same business as Borrower, for expressions of interest
in acquiring all or any portion of the Pledged Collateral, (e) to hire one or more professional auctioneers to assist in the disposition
of Collateral, whether or not the Pledged Collateral is of a specialized nature, (f) to dispose of Pledged Collateral by utilizing
Internet sites that provide for the auction of assets of the types included in the Pledged Collateral or that have the reasonable
capability of doing so, or that match buyers and sellers of assets, (g) to disclaim disposition warranties, (h) to the extent deemed
appropriate by Lender, to obtain the services of brokers, investment bankers, consultants and other professionals to assist Lender
in the collection or disposition of any of the Pledged Collateral, (i) to require potential purchasers to pay all outstanding Obligations
as a condition precedent to purchasing the Pledged Collateral, (j) to the extent permitted by applicable laws and this Agreement,
to sell all or any part of the Pledged Collateral by a private placement, restricting the bidders and prospective purchasers to
those who will represent and agree that they are purchasing for investment only and not for distribution, (k) subject to applicable
law, to solicit offers to buy the Pledged Collateral or any part thereof for cash from a limited number of investors reasonably
believed by Lender to be institutional investors or other accredited investors who might be interested in purchasing the Pledged
Collateral and to accept an offer from such an investor, (l) to not sell the Pledged Collateral regardless of notice of sale being
given or to adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, or, without
further notice, to have the sale at the time and place to which it was so adjourned, and (m) to not obtain the maximum possible
price for the Pledged Collateral for any reason including but not limited to the absence of a public offering under the Securities
Act of 1933 as now in effect or as hereinafter amended or any similar state statute hereafter adopted with similar purpose. Borrower
acknowledges that the purpose of this Section 13(d) is to provide non-exhaustive indications of what actions or omissions
by Lender would not be commercially unreasonable in Lender’s exercise of remedies against the Pledged Collateral and that
other actions or omissions by Lender shall not be deemed commercially unreasonable solely on account of not being indicated in
this Section 13(d). Without limitation upon the foregoing, nothing contained in this Section 13(d) shall be construed
to grant any rights to Borrower or to impose any duties on Lender that would not have been granted or imposed by this Agreement,
the Mezzanine Loan Documents or by applicable law in the absence of this Section 13(d). This Section 13(d) shall
survive until the termination of the Mezzanine Loan Documents and the payment and performance in full of the Obligations. Borrower
specifically agrees that a foreclosure sale conducted in conformity with this Section 13 and the other provisions of this
Agreement will be considered commercially reasonable.

 

    	 	11	 

     

    

 

(e)          Intentionally
Omitted.

 

(f)          Equitable
Remedy. Borrower agrees that a breach of any of the covenants contained in this Section 13 shall cause irreparable
injury to Lender, and that Lender will have no adequate remedy at law in respect of such breach. As a consequence, Borrower agrees
that each and every covenant contained in this Section 13 shall be specifically enforceable against Borrower.

 

Section 14.         Reimbursement
of Lender.

 

(a)          Borrower
shall indemnify, reimburse, defend and hold harmless Lender and its officers, directors, employees and agents (collectively, the
“Indemnified Parties”) for, from and against any and all liabilities, obligations, losses, damages (but not
special, punitive or consequential damages), penalties, assessments, actions, or causes of action, judgments, suits, claims, demands,
actual third party costs, expenses (including reasonable attorneys’ fees and legal expenses whether or not suit is brought
and settlement costs) and disbursements of any kind or nature whatsoever which may be imposed on, incurred by, or asserted against
the Indemnified Parties, in any way relating to or arising out of the enforcement of this Agreement by Lender to the extent resulting,
directly or indirectly, from any claim made (whether or not in connection with any legal action, suit, or proceeding) by or on
behalf of any Person other than the Indemnified Parties; provided, however, that no Indemnified Party shall have
the right to be indemnified hereunder for its own gross negligence, bad faith or willful misconduct. The provisions of, and undertakings
and indemnification set forth in, this Section 14 shall survive the satisfaction and payment in full of the Obligations
and termination of this Agreement. Any amounts which may become payable by Borrower pursuant to the foregoing indemnity shall be
added to Borrower’s obligations hereunder and to the Obligations.

 

    	 	12	 

     

    

 

(b)          Borrower
hereby covenants and agrees to reimburse Lender promptly upon receipt of written notice from Lender for all reasonable costs and
expenses payable to third parties incurred by Lender in connection with (A) enforcing or preserving any rights, in response
to third party claims or the prosecuting or defending of any action or proceeding or other litigation, in each case against, under
or affecting this Agreement (except to the extent resulting from Lender’s gross negligence, bad faith or willful misconduct),
and (B) enforcing any obligations of or collecting any payments due from Borrower under this Agreement.

 

Section 15.         No
Waiver of Rights by Lender. Subject to Section 17(l) hereof, nothing herein shall be deemed (a) to be a waiver of any right
which Lender may have under the Bankruptcy Code or the bankruptcy laws of any state to file a claim for the then outstanding amount
of the Mezzanine Loan or to require that all of the Pledged Collateral shall continue to secure all of the Obligations; (b) to
impair the validity of the Mezzanine Loan, the Mezzanine Loan Agreement, the Mezzanine Note or the other Mezzanine Loan Documents;
or (c) to impair the right of Lender to commence an action to foreclose any lien or security interest in connection with the exercise
of its remedies hereunder. Subject to Section 17(l) hereof, nothing herein shall be deemed to be a waiver of any right which Lender
may have under Section 506(a), 506(b), 111l(b) or any other provisions of the Bankruptcy Code to file a claim for the full
amount of the indebtedness of the Mezzanine Loan and other amounts due under this Agreement, the Mezzanine Loan Agreement, the
Mezzanine Note, or the other Mezzanine Loan Documents or to require that all of the Pledged Collateral shall continue to secure
the Obligations.

 

Section 16.         Irrevocable
Proxy. Solely with respect to Article 8 Matters, Borrower hereby irrevocably grants and appoints Lender, from the date of this
Agreement until the termination of this Agreement in accordance with its terms, as Borrower’s true and lawful proxy, for
and in Borrower’s name, place and stead to vote the Equity Interests, whether directly or indirectly, beneficially or of
record, now owned or hereafter acquired, with respect to such Article 8 Matters. The proxy granted and appointed in this Section
16 shall include the right to sign Borrower’s name (as a member) to any consent, certificate or other document relating
to an Article 8 Matter and the Equity Interests that applicable law may permit or require, to cause the Equity Interest to be voted
in accordance with the preceding sentence. Borrower hereby represents and warrants that there are no other proxies and powers of
attorney with respect to an Article 8 Matter and the Equity Interests that Borrower may have granted or appointed that are still
in effect. Other than as required herein for the benefit of Lender, Borrower will not give a subsequent proxy or power of attorney
or enter into any other voting agreement with respect to the Equity Interests with respect to any Article 8 Matter and any attempt
to do so with respect to an Article 8 Matter shall be void and of no effect. The proxies and powers granted by the Borrower pursuant
to this Agreement are coupled with an interest and are given to secure the performance of the Borrower’s obligations.

 

Section 17.         Miscellaneous.

 

(a)          Successors.
Except as otherwise provided in this Agreement, whenever in this Agreement any of the parties hereto is referred to, such reference
shall be deemed to include the successors and permitted assigns of such party, provided that Borrower may not assign its obligations
hereunder except as may be provided in, and in accordance with, the Mezzanine Loan Agreement. All covenants and promises and agreements
in this Agreement contained, by or on behalf of Borrower, shall inure to the benefit of Lender and its successors and permitted
assigns.

 

    	 	13	 

     

    

 

(b)          Governing
Law.

 

(1)         THIS
AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

(2)         ANY
LEGAL SUIT, ACTION OR PROCEEDING AGAINST BORROWER OR LENDER ARISING OUT OF OR RELATING TO THIS AGREEMENT MAY BE INSTITUTED IN ANY
FEDERAL OR STATE COURT IN NEW YORK, NEW YORK. EACH OF BORROWER AND LENDER HEREBY (I) IRREVOCABLY WAIVE, 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.

 

(c)          Modification,
Waiver in Writing. This Agreement may not be amended or waived, nor shall any consent or approval of Lender be granted hereunder,
unless such amendment, waiver, consent or approval is in writing signed by Lender and Borrower.

 

(d)          Notices.
The provisions of Section 9.4 of the Mezzanine Loan Agreement are hereby incorporated into this Agreement by this reference
to the fullest extent as if the text of such provisions were set forth in their entirety herein.

 

(e)          Trial
by Jury. The provisions of Section 9.5 of the Mezzanine Loan Agreement (as it relates to the waiver of jury trial by Borrower
and Lender) are hereby incorporated into this Agreement by this reference to the fullest extent as if the text of such provisions
were set forth in their entirety herein.

 

(f)          Principles
of Construction. The provisions of the paragraph entitled “Rules of Construction” in the Definitions section of
the Mezzanine Loan Agreement are hereby incorporated into this Agreement by this reference to the fullest extent as if the text
of such provisions were set forth in their entirety herein.

 

(g)          Severability.
The provisions of Section 9.8 of the Mezzanine Loan Agreement are hereby incorporated into this Agreement by this reference
to the fullest extent as if the text of such provisions were set forth in their entirety herein.

 

(h)          Offsets,
Counterclaims and Defenses. All payments made by Borrower hereunder shall be made irrespective of, and without any deduction
for, any setoffs or counterclaims. Borrower waives the right to assert a counterclaim, other than a mandatory or compulsory counterclaim,
in any action or proceeding brought against it by Lender arising out of or in any way connected with this Agreement or the Obligations.

 

    	 	14	 

     

    

 

(i)          No
Joint Venture. The provisions of Section 9.12 of the Mezzanine Loan Agreement are hereby incorporated into this Agreement
by this reference to the fullest extent as if the text of such provisions were set forth in their entirety herein.

 

(j)          Counterparts.
The provisions of Section 9.15 of the Mezzanine Loan Agreement are hereby incorporated into this Agreement by this reference
to the fullest extent as if the text of such provisions were set forth in their entirety herein.

 

(k)          No
Third-Party Beneficiaries. This Agreement is solely for the benefit of Lender and Borrower, and nothing contained in this Agreement
shall be deemed to confer upon anyone other than Lender and Borrower any right to insist upon or to enforce the performance or
observance of any of the obligations contained herein or therein.

 

(l)          Limitation
on Liability of Borrower; Exculpation. The provisions of Section 9.19 of the Mezzanine Loan Agreement are hereby incorporated
into this Agreement by this reference to the fullest extent as if the text of such provisions were set forth in their entirety
herein.

 

(m)          Right
of Set-Off. The provisions of Section 9.20 of the Mezzanine Loan Agreement are hereby incorporated into this Agreement
by this reference to the fullest extent as if the text of such provisions were set forth in their entirety herein.

 

(n)          Servicer;
Agent. The provisions of Section 9.22 of the Mezzanine Loan Agreement are hereby incorporated into this Agreement by this
reference to the fullest extent as if the text of such provisions were set forth in their entirety herein.

 

(o)          Prior
Agreements. The provisions of Section 9.26 of the Mezzanine Loan Agreement are hereby incorporated into this Agreement
by this reference to the fullest extent as if the text of such provisions were set forth in their entirety herein.

 

(p)          Further
Assurances. Borrower shall from time to time, at its expense, promptly execute and deliver (and/or cause to be executed and
delivered) all further instruments and agreements, and take all further actions, that may be reasonably necessary or appropriate,
or that Lender may reasonably request, in order to perfect any assignment, pledge or security interest granted or purported to
be granted hereby.

 

[Signature appears on the following page]

 

    	 	15	 

     

    

 

IN WITNESS WHEREOF, Borrower has executed
and delivered this Pledge and Security Agreement as of the date first above written.

 

	 	BORROWER:
	 	 
	 	ARC NY1440BWY1 MEZZ, LLC, a Delaware limited liability company
	 	 	 
	 	By:	New York Recovery Operating Partnership, L.P., its sole member
	 	 	 
	 	By:	New York REIT, Inc., its general partner
	 	 	 
	 	By:	/s/  Michael Ead
	 	 	Name:  Michael Ead
	 	 	Title:  Authorized Signatory

 

    	 	16	 

     

    

 

Schedule
1

 

LIST OF EQUITY
INTERESTS

 

	Issuer	 	Class of Interest	 	Certificate No.	 	Percentage of Class
 Represented by
 Equity Interest	 
	 	 	 	 	 	 	 	 
	ARC NY1440BWY1, LLC	 	limited liability company interest	 	[001]	 	100	%

 

    	 	17	 

     

    

 

Exhibit
A

 

CONSENT
OF ISSUER

 

CONSENT (“Consent”), dated
as of September 30, 2015, made by ARC NY1440BWY1, LLC, a Delaware limited liability company (“Issuer”).

 

Reference is made to that certain Pledge and
Security Agreement (the “Pledge Agreement”) of even date herewith made by ARC NY1440BWY1 MEZZ, LLC, a Delaware
limited liability company (“Borrower”), in favor of PARAMOUNT GROUP FUND VIII 1440 BROADWAY MEZZ LP, a Delaware
limited partnership (together with its successors and permitted assigns, the “Lender”), as pledgee. Issuer hereby
acknowledges the receipt of a copy of the Pledge Agreement and understands that Borrower is bound thereby. For the purposes of
this Consent, all capitalized terms not herein defined shall have the respective meanings ascribed thereto in the Pledge Agreement.

 

Issuer hereby consents to the Pledge Agreement
and agrees that during the continuation of an Event of Default, Issuer will pay any and all Distributions in respect of the Pledged
Collateral directly to Lender subject to and to the extent provided in, the terms and provisions of Section 3 of the
Pledge Agreement. During the continuance of an Event of Default, until the Obligations are paid in full, Issuer agrees, subject
to the terms of the Pledge Agreement and the Mezzanine Loan Documents, to (i) to the extent provided in the Pledge Agreement, comply
with the instructions of Lender in connection with the exercise of Lender’s rights and remedies as set forth in the Pledge
Agreement, without any further consent from Borrower or any other Person in respect of the Pledged Collateral, and (ii) to disregard
any request made by Borrower or any other person which contravenes such instructions of Lender in respect of the Pledged Collateral.

 

Issuer represents and warrants to Lender that,
as of the date hereof, (i) Borrower is the registered owner of 100% of the limited liability company membership interests of, and
possesses 100% of the economic, management and voting rights in, Issuer; (ii) Issuer has no knowledge of any Lien or other security
interest in the Pledged Collateral (other than Lender’s) that has not been terminated on or prior to the date hereof; and
(iii) the registered pledgee of the Pledged Collateral on the books of Issuer is Paramount Group Fund VIII 1440 Broadway Mezz LP,
as secured party under the Mezzanine Loan, and there is no other pledge currently registered on the books and records of Issuer
with respect to the Pledged Collateral.

 

This Consent shall be governed by the laws
of the State of New York. All notices required to be given hereunder shall be delivered as set forth in the Pledge Agreement.

 

[Signatures appear on the following page]

 

    	 	18	 

     

    

 

IN WITNESS WHEREOF, Issuer has executed this
Consent as of the date first set forth above.

 

	 	ISSUER:
	 	 
	 	ARC NY1440BWY1 MEZZ, LLC, a Delaware limited liability company
	 	 
	 	By:	New York Recovery Operating Partnership, L.P., its sole member
	 	 
	 	By: New York REIT, Inc., its general partner
	 	 
	 	By:	/s/  Michael Ead
	 	 	Name:  Michael Ead
	 	 	Title:  Authorized Signatory

 

    	 	19Exhibit 10.5

 

EXECUTION

 

GUARANTY

 

(Unfunded
Obligations)

 

THIS
GUARANTY (this “Guaranty”) is executed as of September 30, 2015 by NEW YORK REIT, INC., a Maryland corporation
(“NY REIT”) and NEW YORK RECOVERY OPERATING PARTNERSHIP, L.P., a Delaware limited partnership (“NYROP”,
and together with NYREIT, collectively, “Guarantor”), for the benefit of STRATEGIC ASSET SERVICES LLC, a Delaware
limited liability company, not individually but solely in its capacity as Agent for the Lender under the Loan Agreement (together
with its successors and assigns, “Lender”).

 

WITNESSETH

 

WHEREAS, Lender
has agreed to make a loan (the “Loan”) to ARC NY1440BWY1, LLC, a Delaware limited liability company (“Borrower”),
in the original maximum principal amount of $285,000,000 (the “Loan Amount”), pursuant to that certain Loan
Agreement, dated as of the date hereof, by and between Borrower and Lender (the “Loan Agreement”; capitalized
terms used herein but not otherwise defined shall have the respective meanings ascribed to such terms in the Loan Agreement);

 

WHEREAS, to evidence
the Loan, Borrower has executed and delivered to Lender certain promissory notes, dated as of the date hereof, in the aggregate
original maximum principal amount of the Loan Amount (as the same may be amended, restated, replaced, supplemented, or otherwise
modified from time to time, the “Notes”) ;

 

WHEREAS, Lender
requires as a condition to making the Loan that Guarantor agrees to unconditionally guaranty for the benefit of Lender and its
successors and assigns, the full and timely payment and performance of the Guaranteed Obligations (as hereinafter defined);

 

WHEREAS, Guarantor
directly and/or indirectly owns an interest in Borrower and will derive substantial economic benefit from the making of the Loan
by Lender to Borrower; and

 

WHEREAS, Guarantor
has agreed to execute and deliver this Guaranty in order to induce Lender to make the Loan.

 

NOW, THEREFORE,
to induce Lender to make the Loan to Borrower and in consideration for the substantial benefit Guarantor will derive from the
making of the Loan and for other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged,
the parties hereby agree as follows:

 

ARTICLE
I

 

NATURE
AND SCOPE OF GUARANTY

 

1.1           Guaranty
of Obligations. Guarantor hereby absolutely, irrevocably and unconditionally guarantees to Lender the full and timely payment
and performance of all of the Guaranteed Obligations as and when the same shall be due and payable under the Loan Documents, whether
by lapse of time, by acceleration of maturity or otherwise. Guarantor hereby absolutely, irrevocably and unconditionally covenants
and agrees that it is liable for the Guaranteed Obligations as primary obligor.

 

    	 	1	 

     

    

 

1.2           Definition
of Guaranteed Obligations. As used herein, the term “Guaranteed Obligations” means all obligations and
liabilities of Borrower to fund the costs of the Unfunded Obligations as set forth in Section 3.9(c) of the Loan Agreement in
an amount up to $5,309,628 (in the aggregate with any obligations of Guarantor in respect of Unfunded Obligations under the Unfunded
Obligations Guaranty delivered in connection with the Mezzanine Loan).

 

1.3           Nature
of Guaranty. This Guaranty is an irrevocable, absolute and continuing guaranty of payment and not a guaranty of collection.
No exculpatory language contained in any of the other Loan Documents shall in any event or under any circumstances modify, qualify
or affect the obligations and liabilities of Guarantor hereunder. This Guaranty may not be revoked by Guarantor and shall continue
to be effective with respect to the Guaranteed Obligations arising or created after any attempted revocation by Guarantor and,
if Guarantor is a natural person, after Guarantor’s death, in which event this Guaranty shall be binding upon Guarantor’s
estate and Guarantor’s legal representatives and heirs. It is the intent of Guarantor and Lender that the obligations and
liabilities of Guarantor hereunder are absolute and unconditional under any and all circumstances (other than payment in full
of the Indebtedness) and that, so long as any portion of the Indebtedness shall be outstanding, such obligations and liabilities
shall not be discharged or released in whole or in part, by any act or occurrence (including the fact that at any time or from
time to time the Indebtedness or the Guaranteed Obligations may be increased or reduced) that might, but for the provisions of
this Guaranty, be deemed a legal or equitable discharge or release of Guarantor. This Guaranty may be enforced by Lender and any
subsequent holder of any Note or any part thereof and shall not be discharged by the assignment or negotiation of all or any part
of any Note.

 

1.4           Joint
and Several Liability. Notwithstanding anything to the contrary, if Guarantor is comprised of more than one Person, the obligations
and liabilities of each such Person under this Guaranty shall be joint and several.

 

1.5           Guaranteed
Obligations Not Reduced by Set-Off. The Guaranteed Obligations and the liabilities and obligations of Guarantor to Lender
hereunder shall not be reduced, discharged or released because or by reason of any existing or future set-off, offset, claim or
defense (other than the defense of payment) of any kind or nature that Borrower, Guarantor or any other Person has or may hereafter
have against Lender or against payment of the Indebtedness or the Guaranteed Obligations, whether such set-off, offset, claim
or defense arises in connection with the Guaranteed Obligations or otherwise.

 

1.6           No
Duty to Pursue Others; No Duty to Mitigate. It shall not be necessary for Lender (and Guarantor hereby waives any rights that
Guarantor may have to require Lender) to take any action, obtain any judgment or file any claim prior to enforcing this Guaranty,
including to (i) institute suit or otherwise enforce Lender’s rights, or exhaust its remedies, against Borrower or any other
Person liable on all or any part of the Indebtedness or the Guaranteed Obligations, or against any other Person, (ii) enforce
Lender’s rights, or exhaust any remedies available to Lender, against any collateral that shall ever have been given to
secure all or any part of the Indebtedness or the Guaranteed Obligations, (iii) join Borrower or any other Person liable on the
Guaranteed Obligations in any action seeking to enforce this Guaranty or (iv) resort to any other means of obtaining payment of
all or any part of the Indebtedness or the Guaranteed Obligations. Lender shall not be required to mitigate damages or take any
other action to reduce, collect or enforce the Guaranteed Obligations.

 

    	 	2	 

     

    

 

1.7           Payment
by Guarantor. If all or any part of the Guaranteed Obligations shall not be punctually paid or performed when due, whether
at demand, maturity, acceleration or otherwise, Guarantor shall, immediately upon demand by Lender and without presentment, protest,
notice of protest, notice of non-payment, notice of intention to accelerate the maturity, notice of acceleration of the maturity
or any other notice whatsoever other than notice to Guarantor of the Guaranteed Obligations payable by Guarantor, pay in lawful
money of the United States of America, the amount due thereon to Lender. Amounts not paid when due hereunder shall accrue interest
at the Default Rate, unless such amounts already include interest at the Default Rate pursuant to the terms of the other Loan
Documents. Such demands may be made at any time coincident with or after the time for payment of all or any part of the Guaranteed
Obligations and may be made from time to time with respect to the same or different Guaranteed Obligations.

 

1.8           Application
of Payments. If, at any time, there is any Indebtedness or obligations of Borrower to Lender that is not guaranteed by Guarantor,
Lender, without in any manner impairing its rights hereunder, may, at its option, apply all amounts realized by Lender from any
collateral or security held by Lender first to the payment of such unguaranteed Indebtedness or obligations, with the remaining
amounts, if any, to then be applied to the payment of the Indebtedness or obligations guaranteed by Guarantor.

 

1.9           Waivers.

 

(a)          Guarantor
hereby assents to all of the terms and agreements heretofore or hereafter made by Borrower with Lender (including the provisions
of the Loan Documents) and hereby waives diligence, presentment, protest, demand on Borrower for payment or otherwise, filing
of claims, requirement of a prior proceeding against Borrower and all notices (other than notices expressly provided for hereunder
or required to be delivered under applicable law), including notice of:

 

(i)          the
acceptance of this Guaranty;

 

(ii)         the
present existence or future incurring of all or any part of the Indebtedness, or any future change to the time, manner or place
of payment of, or in any other term of all or any part of the Indebtedness or the Guaranteed Obligations;

 

(iii)        any
amendment, modification, replacement or extension of any of the Loan Documents;

 

    	 	3	 

     

    

 

(iv)        the
execution and delivery by Borrower and Lender of any other loan or credit agreement or of Borrower’s execution and delivery
of any promissory note or other documents arising under the Loan Documents or in connection with the Property;

 

(v)         Lender’s
transfer, participation, componentization or other disposition of all or any part of the Loan or this Guaranty, or an interest
therein;

 

(vi)        the
sale or foreclosure (or posting or advertising for sale or foreclosure), or assignment-in-lieu of foreclosure, of any collateral
for the Guaranteed Obligations;

 

(vii)       any
protest, proof of non-payment or default by Borrower, or the occurrence of a breach or an Event of Default, or the intent to accelerate
or of acceleration in relation to any instrument relating to the Indebtedness or the Guaranteed Obligations;

 

(viii)      
the obtaining or release of any guaranty or surety agreement, pledge, assignment or other security for the Indebtedness or the
Guaranteed Obligations, or any part thereof; or

 

(ix)         any
other action at any time taken or omitted to be taken by Lender generally and any and all demands and notices of every kind in
connection with this Guaranty, the other Loan Documents and any other documents or agreements evidencing, securing or relating
to the Indebtedness or the Guaranteed Obligations, or any part thereof.

 

(b)          Guarantor
hereby waives any and all rights it may now or hereafter have to, and covenants and agrees that it shall not at any time, insist
upon, plead or in any manner whatsoever claim or take the benefit or advantage of, any and all appraisal, valuation, stay, extension,
marshaling-of-assets or redemption laws, or right of homestead or exemption, whether now or at any time hereafter in force, that
may delay, prevent or otherwise affect the performance by Guarantor of its obligations under, or the enforcement by Lender of,
this Guaranty. Guarantor hereby further waives any and all rights it may now or hereafter have to, and covenants and agrees that
it shall not, set up or claim any defense, counterclaim (other than compulsory counterclaims), cross-claim, set-off, offset, right
of recoupment or other objection of any kind to any action, suit or proceeding in law, equity or otherwise, or to any demand or
claim that may be instituted or made by Lender hereunder, except for the defense of the actual timely performance of the Guaranteed
Obligations hereunder.

 

(c)          Guarantor
specifically acknowledges and agrees that the waivers made by it in this Section and in the other provisions of this Guaranty
are of the essence of the Loan transaction and that, but for this Guaranty and such waivers, Lender would not make the Loan to
Borrower.

 

1.10         Waiver
of Subrogation, Reimbursement and Contribution. Notwithstanding anything to the contrary contained herein, Guarantor hereby
unconditionally and irrevocably waives, releases and abrogates, so long as the Indebtedness remains outstanding, any and all rights
it may now or hereafter have under any agreement, at law or in equity (including any law subrogating the Guarantor to the rights
of Lender), to assert any claim against or seek contribution, indemnification or any other form of reimbursement from Borrower
or any other Person liable for payment of any or all of the Guaranteed Obligations for any payment made by Guarantor under or
in connection with this Guaranty or otherwise.

 

    	 	4	 

     

    

 

1.11         Reinstatement;
Effect of Bankruptcy. Guarantor agrees that if at any time all or any part of any payment at any time received by Lender from,
or on behalf of, Borrower or Guarantor under or with respect to this Guaranty is held to constitute a Preferential Payment (as
defined in Section 4.4), or if Lender is required to rescind, restore or return all or part of any such payment or pay
the amount thereof to another Person for any reason (including the insolvency, bankruptcy reorganization, receivership or other
debtor relief law or any judgment, order or decision thereunder), then the Guaranteed Obligations hereunder shall, to the extent
of the payment rescinded, restored or returned, be deemed to have continued in existence notwithstanding such previous receipt
by Lender, and the Guaranteed Obligations hereunder shall continue to be effective or reinstated, as the case may be, as to such
payment as though such previous payment to Lender had never been made.

 

ARTICLE
II

 

EVENTS
AND CIRCUMSTANCES NOT 

REDUCING OR DISCHARGING GUARANTOR’S OBLIGATIONS

 

2.1           Events
and Circumstances Not Reducing or Discharging Guarantor’s Obligations. Guarantor
hereby consents and agrees to each of the following and agrees that Guarantor’s obligations under this Guaranty shall not
be released, diminished, impaired, reduced or adversely affected in any way by any of the following, although without notice to
or the further consent of Guarantor, and waives any common law, equitable, statutory or other rights (including rights to notice)
or defenses (other than the defense of payment) that Guarantor might otherwise have as a result of or in connection with any of
the following:

 

(a)          Modifications.
Any change in the time, manner or place of payment of all or any part of the Indebtedness or the Guaranteed Obligations, or in
any other term thereof, or any renewal, extension, increase, alteration, rearrangement, amendment or other modification to any
provision of any of the Loan Documents or any other document, instrument, contract or agreement between Borrower and Lender or
any other Person pertaining to the Indebtedness or the Guaranteed Obligations.

 

(b)          Adjustment.
Any adjustment, indulgence, forbearance, waiver, consent or compromise that Lender might extend, grant or give to Borrower, Guarantor
or any other Person with respect to any provision of this Guaranty or any of the other Loan Documents.

 

(c)          Condition
of Borrower or Guarantor. Borrower’s or Guarantor’s voluntary or involuntary liquidation, dissolution, sale of
all or substantially all of their respective assets and liabilities, appointment of a trustee, receiver, liquidator, sequestrator
or conservator for all or any part of Borrower’s or Guarantor’s assets, insolvency, bankruptcy, assignment for the
benefit of creditors, reorganization, consolidation, merger arrangement, composition, readjustment or the commencement of any
other similar proceedings affecting Borrower or Guarantor or any of the assets of either of them, including (A) the release or
discharge of Borrower from the payment and performance of its obligations under any of the Loan Documents by operation of law
or (B) the impairment, limitation or modification of the liability of Borrower, its partners or Guarantor, or of any remedy for
the enforcement of Lender’s rights, under this Guaranty or any of the other Loan Documents, resulting from the operation
of any present or future provisions of the Bankruptcy Code or other present or future federal, state or applicable statute of
law or from the decision in any court.

 

    	 	5	 

     

    

 

(d)          Invalidity
of Guaranteed Obligations. The invalidity, illegality, irregularity or unenforceability of all or any part of this Guaranty
or of any of the Loan Documents, or of any other document or agreement executed in connection with the Indebtedness or the Guaranteed
Obligations for any reason whatsoever, including the fact that (i) the Indebtedness or the Guaranteed Obligations, or any part
thereof, exceeds the amount permitted by law, (ii) the act of creating the Indebtedness or the Guaranteed Obligations, or any
part thereof, is ultra vires, (iii) the officers or representatives executing the Loan Documents or any other document
or agreement executed in connection with the creating of the Indebtedness or the Guaranteed Obligations, or any part thereof,
acted in excess of their authority, (iv) the Indebtedness or the Guaranteed Obligations, or any part thereof, violates applicable
usury laws, (v) Borrower or Guarantor has valid defenses (other than the defense of payment), claims or offsets (whether at law,
in equity or by agreement) that render the Indebtedness or the Guaranteed Obligations wholly or partially uncollectible, (vi)
the creation, performance or repayment of the Indebtedness or the Guaranteed Obligations, or any part thereof (or the execution,
delivery and performance of any document or instrument representing the Indebtedness or the Guaranteed Obligations, or any part
thereof, or executed in connection with the Indebtedness or the Guaranteed Obligations, or given to secure the repayment of the
Indebtedness or the Guaranteed Obligations, or any part thereof), is illegal, uncollectible, legally impossible or unenforceable
or (vii) any of the Loan Documents or any other document or agreement executed in connection with the Indebtedness or the Guaranteed
Obligations, or any part thereof, has been forged or otherwise are irregular or not genuine or authentic.

 

(e)          Release
of Obligors. Any compromise or full or partial release of the liability of Borrower or any other Person now or hereafter liable,
whether directly or indirectly, jointly, severally, or jointly and severally, to pay, perform, guarantee or assure the payment
of the obligations under this Guaranty or any of the other Loan Documents.

 

(f)          Release
of Collateral; Other Collateral. Any release, surrender, exchange, subordination, deterioration, waste, loss or impairment
by Lender (including negligent, willful, unreasonable or unjustifiable impairment) of, or failure to perfect or obtain protection
of, any collateral, property or security at any time existing in connection with, or assuring or securing payment of, all or any
part of the Indebtedness or the Guaranteed Obligations; or the taking or accepting of any other security, collateral or guaranty
or other assurance of payment for all or any part of the Indebtedness or the Guaranteed Obligations.

 

(g)          Offset.
Any existing or future right of set-off, offset, claim, counterclaim or defense (other than the defense of payment) of any kind
or nature against Lender or any other Person, which may be available to or asserted by Guarantor or Borrower.

 

    	 	6	 

     

    

 

(h)          Change
in Law. Any change in the laws, rules or regulations of any jurisdiction or any present or future action of any Governmental
Authority or court amending, varying, reducing or otherwise affecting, or purporting to amend, vary, reduce or otherwise affect,
any of the obligations of Borrower under any of the Loan Documents or Guarantor under this Guaranty.

 

(i)          Event
of Default. The occurrence of any Event of Default or any potential Event of Default under any of the Loan Documents, whether
or not Lender has exercised any of its rights and remedies under the Loan Documents upon the happening of any such Event of Default
or potential Event of Default.

 

(j)          Actions
Omitted. The absence of any action to enforce any of Lender’s rights under the Loan Documents or available to Lender
at law, equity or otherwise, to recover any judgment against Borrower or to enforce a judgment against Borrower under any of the
Loan Documents.

 

(k)          Other
Dealings. The occurrence of any other dealing, transaction, matter or thing between Guarantor and Lender.

 

(l)          Application
of Sums. The application of any sums by whomsoever paid or however realized to any amounts owing by Guarantor or Borrower
to Lender in such manner as Lender shall determine in its sole discretion, subject to, and otherwise in accordance with, the terms
of the Loan Agreement and the other Loan Documents.

 

(m)          Ownership
Interest. Any change in or termination of the ownership interest of Guarantor (whether direct or indirect).

 

(n)          Unenforceability.
The fact that any collateral, security, security interest or lien contemplated or intended to be given, created or granted as
security for the repayment of the Guaranteed Obligations, or any part thereof, shall not be properly perfected or created, or
shall prove to be unenforceable or subordinate to any other security interest or lien, it being recognized and agreed by Guarantor
that Guarantor is not entering into this Guaranty in reliance on, or in contemplation of the benefits of, the validity, enforceability,
collectibility or value of any of the collateral for the Guaranteed Obligations.

 

(o)          Merger.
The reorganization, merger or consolidation of Borrower into or with any other Person.

 

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

 

(q)          Other
Circumstances. Any other circumstance that might otherwise constitute a legal or equitable discharge or defense of a guarantor
generally, it being the unambiguous and unequivocal intention of Guarantor and Lender that the liability of Guarantor hereunder
shall be direct and immediate and that Guarantor shall be obligated to pay the Guaranteed Obligations when due, notwithstanding
any occurrence, circumstance, event, action, or omission whatsoever, whether contemplated or uncontemplated, and whether or not
otherwise or particularly described herein, except for the full and final payment and satisfaction of the Guaranteed Obligations.

 

    	 	7	 

     

    

 

2.2           Indebtedness
or Other Obligations of Guarantor. If Guarantor is or becomes liable for any Indebtedness owed by Borrower to Lender by endorsement
or otherwise, other than under this Guaranty, such liability shall not be in any manner impaired or affected by this Guaranty
and the rights of Lender hereunder shall be cumulative of any and all other rights that Lender may ever have against Guarantor.
The exercise by Lender of any right or remedy hereunder or under any other instrument or at law or in equity shall not preclude
the concurrent or subsequent exercise of any right or remedy under any other instrument or at law or in equity, including the
making of multiple demands hereunder.

 

ARTICLE
III

 

REPRESENTATIONS
AND WARRANTIES; COVENANTS

 

3.1           Representations
and Warranties. To induce Lender to enter into the Loan Documents and extend credit to Borrower, Guarantor hereby represents
and warrants to Lender that, on the date hereof:

 

(a)          Due
Formation, Authorization and Enforceability. Guarantor is duly organized and validly existing under the laws of the jurisdiction
of its incorporation or formation, as the case may be, and has full power and legal right to execute and deliver this Guaranty
and to perform under this Guaranty. Guarantor has taken all necessary action to authorize the execution, delivery and performance
of this Guaranty. This Guaranty has been duly authorized, executed and delivered by Guarantor and constitutes a legal, valid and
binding obligation of Guarantor, enforceable against Guarantor in accordance with its terms.

 

(b)          Benefit
to Guarantor. Guarantor hereby acknowledges that Lender would not make the Loan but for the liability undertaken by Guarantor
under this Guaranty. Guarantor (i) is an affiliate of Borrower and (ii) has received, or will receive, direct and/or indirect
benefit from the making of the Loan to Borrower.

 

(c)          Familiarity
and Reliance. Guarantor is familiar with, and has independently reviewed books and records regarding, the financial condition
of Borrower and is familiar with the value of any and all collateral granted, or intended to be granted, as security for the Indebtedness;
provided, however, Guarantor is not relying on such financial condition or such collateral as an inducement to enter
into this Guaranty.

 

(d)          No
Representation by Lender. Neither Lender nor any other Person has made any representation, warranty or statement to Guarantor
in order to induce the Guarantor to execute this Guaranty.

 

(e)          Solvency.
Guarantor has not entered into this Guaranty with the actual intent to hinder, delay or defraud any creditor. Guarantor received
reasonably equivalent value in exchange for the Guaranteed Obligations. Guarantor is not presently insolvent, and the execution
and delivery of this Guaranty will not render Guarantor insolvent.

 

    	 	8	 

     

    

 

(f)          No
Conflicts. The execution and delivery of this Guaranty by Guarantor, and the performance of transactions contemplated hereunder
do not and will not (i) conflict with or violate any Legal Requirements or any governmental statutes, laws, rules, orders, regulations,
ordinances, judgments, decrees and injunctions of Governmental Authorities (including Environmental Laws) affecting Guarantor
or any of its assets or property, (ii) conflict with, result in a breach of, or constitute a default (including any circumstance
or event that would be a default but for the lack of due notice or lapse of time or both) under any of the terms, conditions or
provisions of any of Guarantor’s organizational documents or any agreement or instrument to which Guarantor is a party,
or by which Guarantor or its assets or property are bound or (iii) result in the creation or imposition of any Lien on any of
Guarantor’s assets or property.

 

(g)          Litigation.
There is no action, suit, proceeding, arbitration or investigation pending or, to Guarantor’s knowledge, threatened against
Guarantor in any court or by or before any other Governmental Authority, in each case, which, if determined adversely to Guarantor,
would materially and adversely affect the performance of Guarantor’s obligations and duties under this Guaranty. There are
no outstanding or unpaid judgments against Guarantor.

 

(h)          Consents.
No consent, approval, authorization, order or filings of or with any court or Governmental Authority is required for the execution,
delivery and performance by Guarantor of, or compliance by Guarantor with, this Guaranty other than those that have been obtained
by Guarantor.

 

(i)          Compliance.
Guarantor is not in default or violation of any regulation, order, writ, injunction, decree or demand of any Governmental Authority,
the violation or default of which would materially and adversely affect the condition (financial or otherwise) or business of
Guarantor or that would materially and adversely affect its performance hereunder.

 

(j)          Financial
Information. All financial data that have been delivered to Lender with regard to Guarantor by or on behalf of Guarantor (i)
are true, complete and correct in all material respects as of the date set forth therein, (ii) accurately represent the financial
condition of Guarantor as of the date of such reports and (iii) have been prepared in accordance with GAAP throughout the periods
covered, except as otherwise indicated to Lender.

 

(k)          No
Defenses. This Guaranty and the obligations of Guarantor hereunder are not subject to, and Guarantor has not asserted, any
right of rescission, offset, counterclaim, cross-claim, recoupment or affirmative or other defense of any kind and neither the
operation of any of the terms of this Guaranty nor the exercise of any right hereunder will render the Guaranty unenforceable
in whole or in part.

 

(l)          Tax
Filings. Guarantor has filed (or has obtained effective extensions for filing) all federal, state and local tax returns required
to be filed and has paid, or has made adequate provision for the payment of, all federal, state and local taxes, charges and assessments
payable by Guarantor. Guarantor reasonably believes that its tax returns properly reflect the incomes and taxes of Guarantor for
the periods covered thereby.

 

    	 	9	 

     

    

 

(m)          No
Bankruptcy Filing. Guarantor is not and has never been a debtor in any voluntary or involuntary state or federal bankruptcy,
insolvency or similar proceeding. Guarantor is contemplating neither the filing of a petition under any state or federal bankruptcy
or insolvency laws nor the liquidation of its assets or property and Guarantor does not have any knowledge of any Person contemplating
the filing of any such petition against it. During the ten year period preceding the Closing Date, no such petition has been filed
by or against any person who owns or controls, directly or indirectly, ten percent or more of the beneficial ownership interests
of Guarantor.

 

(n)          No
Change in Facts or Circumstances; Full and Accurate Disclosure. There has been no material adverse change in any condition,
fact, circumstance or event, and there is no fact or circumstance presently known to Guarantor that has not been disclosed to
Lender, in each case that would make the financial statements or other documents submitted in connection with the Loan or this
Guaranty inaccurate, incomplete or otherwise misleading in any material respect or that otherwise materially and adversely affects,
or would materially and adversely affect, Guarantor or its business, operations or conditions (financial or otherwise).

 

(o)          Embargoed
Person. To Guarantor’s knowledge, (i) none of the funds or other assets of Guarantor constitute property of, or are
beneficially owned, directly or indirectly, by any Embargoed Person; (ii) no Embargoed Person has any equity interest whatsoever
in Guarantor (whether directly or indirectly) and (iii) none of the funds of Guarantor have been derived from any unlawful activity.
Notwithstanding anything to the contrary contained herein, the representations and warranties contained in this subsection shall
survive in perpetuity. The representations and warranties set forth in this Section 3.1(o) are made only to Guarantor’s
knowledge with respect to the direct and/or indirect ownership of any shares of stock in NY REIT.

 

(p)          Compliance
with Anti-Terrorism, Embargo, Sanctions and Anti-Money Laundering Laws. Guarantor, and to Guarantor's knowledge, each Person
owning an interest in Guarantor: (a) is not currently identified on the OFAC List and (b) is not a Person with whom a citizen
of the United States is prohibited to engage in transactions by any trade embargo, economic sanction, or other prohibition of
any Legal Requirement. Guarantor has implemented procedures, and will consistently apply such procedures throughout the term of
the Loan and the existence of this Guaranty, to ensure the foregoing representations and warranties remain true and correct in
all material respects during the term of the Loan and the existence of this Guaranty. The representations and warranties set forth
in this Section 3.1(p) are made only to Guarantor’s knowledge with respect to the direct and/or indirect ownership
of any shares of stock in NY REIT.

 

(q)          Investment
Company Act. Guarantor is not an “investment company” registered or required to be registered under the Investment
Company Act of 1940, as amended.

 

(r)          Survival.
All representations and warranties made by Guarantor herein shall survive the execution hereof.

 

    	 	10	 

     

    

 

3.2           Covenants.
Each Guarantor covenants and agrees with Lender that, until payment in full of the Loan:

 

(a)          Throughout
the term of the Loan and so long as any portion of the Indebtedness remains outstanding, NY REIT shall maintain, on a consolidated
basis, minimum Net Worth of no less than $575,000,000, and minimum Liquidity of no less than $5,000,000, and failure to do so
at any time shall constitute an immediate Event of Default. For purposes of this Section, “Net Worth” means
total assets (excluding the value of NY REIT’s direct or indirect interest in Borrower, and excluding goodwill, patents,
trademarks, trade names, organization expense, treasury stock, unamortized debt discount and expense, deferred research and development
costs, deferred marketing expenses, and other like intangibles) less total liabilities (including accrued and deferred income
taxes and any reserves against assets), determined in accordance with GAAP applied on a consistent basis; and “Liquidity”
means Lien-free cash balances maintained in the conventional forms of demand deposits, money market account deposits, monies held
in cash reserves not held by Lender and other cash equivalents reasonably acceptable to Lender.

 

(b)          As
soon as available, and in any event within 120 days after the close of each Fiscal Year or, if earlier, promptly following the
filing of such financial statements with the SEC, NY REIT shall furnish to Lender, in an Excel spreadsheet file in electronic
format (which may be via an intralinks site at NY REIT’s sole cost and expense), or, in the case of predominantly text documents,
in Adobe pdf format, or in either case, in such other format as may reasonably be acceptable to Lender, annual consolidated financial
statements of NY REIT, including a balance sheet, together with related statements of operations and equityholders’ capital
and cash flow for such Fiscal Year, audited by a “Big Four” accounting firm or other independent public accounting
firm reasonably acceptable to Lender whose opinion shall be to the effect that such financial statements have been prepared in
accordance with GAAP applied on a consistent basis and shall not be qualified as to the scope of the audit.

 

(c)          As
soon as available, and in any event within 45 days after the end of each Fiscal Quarter (excluding year-end) or, if earlier, promptly
following the filing of such financial statements with the SEC, NY REIT shall furnish to Lender, in an Excel spreadsheet file
in electronic format (which may be via an intralinks site at NY REIT’s sole cost and expense), or, in the case of predominantly
text documents, in Adobe pdf format, or in either case, in such other format as may be reasonably acceptable to Lender, quarterly
and year-to-date unaudited consolidated financial statements, prepared for such fiscal quarter with respect to NY REIT, including
a consolidated balance sheet of NY REIT as of the end of such Fiscal Quarter, together with related statements of operations,
equityholders’ capital and cash flows for such Fiscal Quarter and for the portion of the Fiscal Year ending with such Fiscal
Quarter, setting forth in comparative form the corresponding figures for the same period for the preceding fiscal year, and containing
such other information as Lender may reasonably request, which statements and other information shall be accompanied by an Officer’s
Certificate certifying that the same are true, correct and complete in all material respects. and were prepared in accordance
with GAAP applied on a consistent basis, subject to changes resulting from audit and normal year-end audit adjustments.

 

(d)          NY
REIT shall make its representatives and officers available to Lender from time to time, upon Lender’s reasonable request,
to explain or discuss any financial information provided by NY REIT to Lender under Sections 3.2(b) and (c).

 

    	 	11	 

     

    

 

(e)          Guarantor
will preserve and maintain its legal existence. Except as permitted under the Loan Documents, Guarantor shall not enter into any
transaction of merger or consolidation or amalgamation, or liquidate, wind up or dissolve itself (or suffer any liquidation, winding
up or dissolution) or sell all or substantially all of its assets unless, only with respect to a merger or consolidation or amalgamation,
or a sale of all or substantially all of its assets, (i) the surviving entity assumes the obligations of such Guarantor hereunder
and under the other Loan Documents if not already a party to this Guaranty and the Environmental Indemnity, and (ii) such transaction
does not result in a Prohibited Change of Control or violation of Section 3.2(a).

 

ARTICLE
IV

 

SUBORDINATION
OF CERTAIN INDEBTEDNESS

 

4.1           Subordination
of Guarantor’s Conditional Rights. As used herein, the term “Guarantor’s Conditional Rights”
shall mean any and all debts and liabilities of Borrower owed to Guarantor, whether such debts and liabilities now exist or are
hereafter incurred or arise, or whether the obligations of Borrower thereon be direct, contingent, primary, secondary, several,
joint and several or otherwise, and irrespective of whether such debts or liabilities be evidenced by note, contract, open account
or otherwise, and irrespective of the Person or Persons in whose favor such debts or liabilities may, at their inception, have
been or may hereafter be created or the manner in which they have been or may hereafter be acquired by Guarantor. Prior to the
occurrence and continuance of an Event of Default, Guarantor’s Conditional Rights hereunder shall not include Guarantor’s
right to receive equity distributions from Borrower directly or indirectly from time to time.

 

4.2           Liens
Subordinate; Standstill. Notwithstanding any other provision of this Guaranty to the contrary, until the repayment in full
of the Indebtedness, Guarantor hereby agrees that (i) all Guarantor’s Conditional Rights and any and all liens, security
interests, judgment liens, charges or other encumbrances upon Borrower’s assets securing payment of the Guarantor’s
Conditional Rights shall be and remain, at all times, inferior and subordinate in all respects to the payment and performance
in full of the Indebtedness and any and all liens, security interests, judgment liens, charges or other encumbrances upon Borrower’s
assets securing payment of the Indebtedness, regardless of whether such encumbrances in favor of Guarantor or Lender presently
exist or are hereafter created or attach, (ii) prior to the occurrence and during the continuance of a Cash Flow Sweep Period
or Event of Default, Guarantor shall not be entitled to, and shall not, receive or collect, directly or indirectly, from Borrower
or any other Person any amount pursuant to or in satisfaction of any of the Guarantor’s Conditional Rights and (iii) Guarantor
shall not, without the prior written consent of Lender, (x) exercise or enforce any creditor’s right it may have against
Borrower in respect of any of the Guarantor’s Conditional Rights or (y) foreclose, repossess, sequester or otherwise take
steps or institute any action or proceedings (judicial or otherwise, including the commencement of, or joinder in, any liquidation,
bankruptcy, rearrangement, debtor’s relief or insolvency proceeding) to enforce any liens, mortgages, deeds of trust, security
interests, collateral rights, judgments or other encumbrances on assets of Borrower held by Guarantor in respect of any of Guarantor’s
Conditional Rights. The foregoing shall in no way limit the complete waiver of subrogation rights contained in Section 1.10.

 

    	 	12	 

     

    

 

4.3           Claims
in Bankruptcy. In the event of receivership, bankruptcy, reorganization, arrangement, debtor’s relief or other insolvency
proceedings involving Guarantor as debtor, Lender shall have the right and authority, either in its own name or as attorney-in-fact
for Guarantor, to prove its claim in any such proceeding and to take such other steps as may be necessary so as to establish its
rights hereunder and receive directly from the receiver, trustee or other court custodian and payments that would otherwise be
payable pursuant to or in satisfaction of any of the Guarantor’s Conditional Rights. Guarantor hereby assigns any and all
such payments to Lender.

 

4.4           Payments
Held in Trust. In the event that, notwithstanding anything to the contrary in this Guaranty, Guarantor should receive any
funds, payment or claim that is prohibited by this Guaranty on account of any of the Guarantor’s Conditional Rights (for
avoidance of doubt the foregoing excludes equity distributions made by Borrower from time to time directly or indirectly so long
as no Event of Default is continuing) and either (i) such amount is paid to Guarantor at any time when any part of the Indebtedness
or the Guaranteed Obligations shall not have been paid or performed in full or, (ii) regardless of when such amount is paid
to Guarantor, any payment made by, or on behalf of, Borrower to Lender is subsequently invalidated, declared to be fraudulent
or preferential, set aside or required to be repaid by Lender or paid over to a trustee, receiver or any other Person, whether
under any bankruptcy act or otherwise (such payment, a “Preferential Payment”), then such amount paid to Guarantor
shall be held in trust for the benefit of Lender and shall forthwith be paid to Lender to be credited and applied upon the Indebtedness
or the Guaranteed Obligations, whether matured or unmatured, in such order as Lender, in its sole and absolute discretion, shall
determine. To the extent that any of the provisions of this Article 4 shall not be enforceable, Guarantor agrees that until
such time as the Indebtedness and the Guaranteed Obligations have been paid and performed in full and the period of time has expired
during which any payment made by Borrower to Lender may be determined to be a Preferential Payment, all of the Guarantor’s
Conditional Rights, to the extent not validly waived, shall be subordinate to Lender’s right to full payment and performance
of the Indebtedness and the Guaranteed Obligations and Guarantor shall not enforce any of the Guarantor’s Conditional Rights
during such period.

 

ARTICLE
V

 

MISCELLANEOUS

 

5.1           Lender’s
Benefit; No Impairment of Loan Documents. This Guaranty is for the benefit of Lender and its successors and assigns and nothing
contained herein shall impair, as between Borrower and Lender, the obligations of Borrower under the Loan Documents. Lender and
its successors and assigns shall have the right subject to and in accordance with the terms of the Loan Agreement to assign, in
whole or in part, this Guaranty and the other Loan Documents to any Person and to participate all or any portion of the Loan,
including any servicer or trustee in connection with a Securitization.

 

5.2           Successors
and Assigns; Binding Effect. This Guaranty shall be binding upon Guarantor and its heirs, executors, legal representatives,
successors and assigns, whether by voluntary action of the parties or by operation of law. Notwithstanding anything to the contrary
herein, Guarantor may in no event delegate or transfer its obligations under, or be released from, this Guaranty, except in accordance
with the terms of the Loan Agreement and this Guaranty.

 

    	 	13	 

     

    

 

5.3           Costs
and Expenses. If Guarantor should breach or fail to timely perform any provision of this Guaranty, Guarantor shall, immediately
upon demand by Lender, pay to Lender any and all costs and expenses (including court costs and reasonable attorneys’ fees
and expenses) incurred by Lender in connection with the enforcement hereof or the preservation of Lender’s rights hereunder.
The covenant contained in this Section shall survive the payment and performance of the Guaranteed Obligations.

 

5.4           Not
a Waiver; No Set-Off. The failure of any party to enforce any right or remedy hereunder, or to promptly enforce any such right
or remedy, shall not constitute a waiver thereof, nor give rise to any estoppel against such party, nor excuse any other party
from its obligations hereunder, 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 Guaranty, Lender shall not be deemed to have waived any right either to require prompt payment
when due of all other amounts due under this Guaranty or to declare a default for failure to effect prompt payment of any such
other amount. Lender shall not be required to mitigate damages or take any other action to reduce, collect or enforce any of the
Indebtedness or the Guaranteed Obligations. No set-off, counterclaim (other than compulsory counterclaims), reduction, diminution
of any obligations or any defense (other than the defense of payment) of any kind or nature that Guarantor has or may hereafter
have against Borrower or Lender shall be available hereunder to Guarantor.

 

5.5           PRIOR
AGREEMENTS. THIS GUARANTY CONTAINS THE ENTIRE AGREEMENT OF THE PARTIES HERETO IN RESPECT OF THE GUARANTY DESCRIBED
HEREIN, AND ALL PRIOR AGREEMENTS AMONG OR BETWEEN SUCH PARTIES, WHETHER ORAL OR WRITTEN, INCLUDING ANY TERM SHEETS, CONFIDENTIALITY
AGREEMENTS AND COMMITMENT LETTERS, ARE SUPERSEDED BY THE TERMS OF THIS GUARANTY AS THEY RELATE TO THE GUARANTY DESCRIBED HEREIN.

 

5.6           No
Oral Change. No modification, amendment, extension, discharge, termination or waiver of any provision of this Guaranty, nor
consent to any departure by Guarantor therefrom, shall in any event be effective unless the same shall be in a writing signed
by Lender, 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, Guarantor, shall entitle Guarantor to any other or
future notice or demand in the same, similar or other circumstances.

 

5.7           Separate
Remedies. Each and all of Lender’s rights and remedies under this Guaranty and each of the other Loan Documents are
intended to be distinct, separate and cumulative and no such right or remedy herein or therein mentioned is intended to be in
exclusion of or a waiver of any other right or remedy available to Lender.

 

    	 	14	 

     

    

 

5.8           Severability.
Wherever possible, each provision of this Guaranty shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Guaranty 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 Guaranty.

 

5.9           Rules
of Construction. All references to sections and exhibits are to sections and exhibits in or to this Guaranty unless otherwise
specified. Unless otherwise specified: (i) all meanings attributed to defined terms in this Guaranty shall be equally applicable
to both the singular and plural forms of the terms so defined, (ii) “including” means “including, but not limited
to” and “including, without limitation” and (iii) the words “hereof,” “herein,” “hereby,”
“hereunder” and words of similar import when used in this Guaranty shall refer to this Guaranty as a whole and not
to any particular provision, article, section or other subdivision of this Guaranty. Whenever the context may require, any pronouns
used herein shall include the corresponding masculine, feminine or neuter forms and the singular form of nouns and pronouns shall
include the plural and vice versa.

 

5.10         Headings.
The Section headings in this Guaranty are included in this Guaranty for convenience of reference only and shall not constitute
a part of this Guaranty for any other purpose.

 

5.11         Recitals.
The recitals and introductory paragraphs of this Guaranty are incorporated herein, and made a part hereof, by this reference.

 

5.12         Counterparts;
Facsimile Signatures. This Guaranty 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. Any counterpart delivered by facsimile,
pdf or other electronic means shall have the same import and effect as original counterparts and shall be valid, enforceable and
binding for the purposes of this Guaranty.

 

5.13         Notices.
All notices, consents, approvals and requests required or permitted hereunder shall be given in writing by expedited prepaid delivery
service, either commercial or United States Postal Service, with proof of delivery or attempted delivery, addressed as follows
(or as a pdf attachment to an e-mail to the respective addresses specified below, immediately followed by one of the other delivery
methods provided). Any party hereto may change its address and other contact information for purposes hereof at any time by sending
a written notice to the other parties to this Guaranty in the manner provided for in this Section). A notice shall be deemed to
have been given when delivered or upon refusal to accept delivery.

 

	If to Lender:	c/o H/2 Capital Partners
	 	375 Park Avenue, 20th Floor
	 	New York, New York  10152
	 	Attention:  Daniel Ottensoser
	 	E-mail:  dottensoser@h2cp.com

 

    	 	15	 

     

    

 

	with copies to:	c/o H/2 Capital Partners
	 	375 Park Avenue, 20th Floor
	 	New York, New York  10152
	 	Attention:  William Stefko, Esq.
	 	E-mail:  wstefko@h2sas.com
	 	 
	and:	Cleary Gottlieb Steen & Hamilton LLP
	 	One Liberty Plaza
	 	New York, New York 10006
	 	Attention:  Kimberly Brown Blacklow, Esq.
	 	E-mail:  kblacklow@cgsh.com
	 	 
	If to Borrower:	c/o New York Recovery Advisors, LLC
	 	405 Park Avenue, 7th Floor
	 	New York, NY 10022
	 	Attn:  Legal Department
	 	E-Mail:  MEad@nyrt.com
	 	 
	With a copies to:	c/o New York Recovery Advisors, LLC
	 	405 Park Avenue, 7th Floor
	 	New York, NY 10022
	 	Attn:  Michael Happel
	 	E-Mail:  Mhappel@nyrt.com
	 	 
	and:	Arnold & Porter LLP
	 	399 Park Avenue
	 	New York, NY 10022
	 	Attn:  John  Busillo, Esq.
	 	E-Mail:  John.Busillo@aporter.com

 

5.14         Governing
Law. (A)   THIS GUARANTY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NEW YORK WITHOUT REGARD TO THE CONFLICT OF LAWS PRINCIPLES THEREOF, WITHOUT REGARD TO CHOICE OF LAW RULES, TO THE EXTENT THE APPLICATION
OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

 

    	 	16	 

     

    

 

(B)         ANY
LEGAL SUIT, ACTION OR PROCEEDING AGAINST GUARANTOR OR LENDER ARISING OUT OF OR RELATING TO THIS GUARANTY OR ANY OF THE OTHER LOAN
DOCUMENTS (OTHER THAN ANY ACTION IN RESPECT OF THE CREATION, PERFECTION OR ENFORCEMENT OF A LIEN OR SECURITY INTEREST CREATED
PURSUANT TO ANY LOAN DOCUMENTS NOT GOVERNED BY THE LAWS OF THE STATE OF NEW YORK) MAY BE INSTITUTED IN ANY FEDERAL OR STATE COURT
IN NEW YORK COUNTY, NEW YORK. GUARANTOR AND LENDER HEREBY EACH (i) IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, ANY OBJECTION THAT 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, (ii) IRREVOCABLY
SUBMIT TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUCH SUIT, ACTION OR PROCEEDING AND (iii) IRREVOCABLY CONSENT TO SERVICE OF
PROCESS BY MAIL, PERSONAL SERVICE OR IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW, AT THE ADDRESS SPECIFIED IN SECTION 5.13
HEREOF (AND AGREES THAT SUCH SERVICE AT SUCH ADDRESS IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER ITSELF IN ANY SUCH
SUIT, ACTION OR PROCEEDING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT).

 

5.15         Trial
by Jury. GUARANTOR AND LENDER, TO THE FULLEST EXTENT THAT EACH MAY LAWFULLY DO SO, HEREBY AGREE NOT TO ELECT
A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVE ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH
RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THIS GUARANTY OR ANY OF THE OTHER LOAN DOCUMENTS, OR ANY CLAIM, COUNTERCLAIM
OR OTHER ACTION ARISING IN CONNECTION THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY GUARANTOR
AND LENDER AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD
OTHERWISE ACCRUE. LENDER IS HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS
WAIVER BY GUARANTOR AND LENDER.

 

5.16         Brokers
and Financial Advisors. Guarantor hereby represents that none of Borrower, Guarantor or any of their respective Affiliates
has dealt with any financial advisors, brokers, underwriters, placement agents, agents or finders in connection with the transactions
contemplated by this Guaranty and/or the other Loan Documents. Lender hereby represents that neither Lender nor any of its respective
Affiliates have dealt with any financial advisors, brokers, underwriters, placement agents, agents or finders in connection with
the transactions contemplated by this Guaranty and/or the other Loan Documents. Guarantor and Lender agree to indemnify and hold
each other 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 Borrower, Guarantor, Lender or any of their respective
Affiliates, as applicable, in connection with the transactions contemplated in this Guaranty and/or the other Loan Documents.
The provisions of this Section shall survive the expiration and termination of this Guaranty and the repayment of the Indebtedness.

 

5.17         Cooperation.
Guarantor agrees that it is bound by, and agrees to comply with, the provisions of Section 9.24(b) of the Loan Agreement,
the provisions of which are hereby incorporated by reference as if set forth herein in full.

 

[No Further
Text on this Page; Signature Page Follows]

 

    	 	17	 

     

    

 

IN WITNESS WHEREOF, the undersigned
have executed this Guaranty all as of the day and year first above written.

 

	 	GUARANTOR:
	 	 
	 	NEW YORK REIT, INC., a Maryland corporation
	 	 	 
	 	By:	/s/ Michael Ead
	 	 	Name: Michael Ead
	 	 	Title: Authorized Signatory
	 	 
	 	NEW YORK RECOVERY OPERATING PARTNERSHIP, L.P., a Delaware
    limited partnership
	 	 	 
	 	By:	New York REIT, Inc., its general partner
	 	 	 
	 	By:	/s/ Michael Ead
	 	 	Name: Michael Ead
	 	 	Title: Authorized Signatory

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