Document:

Exhibit 10.8

 

EXECUTION

 

ENVIRONMENTAL INDEMNITY AGREEMENT

 

(Mezzanine Loan)

 

This ENVIRONMENTAL INDEMNITY
AGREEMENT (this “Agreement”) is made as of September 30, 2015 by NEW YORK REIT, INC., a Maryland corporation
and NEW YORK RECOVERY OPERATING PARTNERSHIP, L.P., a Delaware limited partnership (collectively, jointly and severally, together
with their respective successors and assigns, “Guarantor”) and ARC NY1440BWY1 MEZZ, LLC, a Delaware limited
liability company (together with its successors and assigns, “Borrower”, and, collectively with Guarantor, jointly
and severally, the “Indemnitor”) in favor of PARAMOUNT GROUP FUND VIII 1440 BROADWAY MEZZ LP, a Delaware limited
partnership (together with its successors and permitted assigns under the Loan Agreement, the “Lender”).

 

RECITALS:

 

A.    WHEREAS,
Lender is prepared to make a certain loan (the “Loan”) to Borrower, pursuant to a Mezzanine Loan Agreement of
even date herewith between Borrower and Lender (as the same may be amended, restated, replaced, supplemented or otherwise modified
from time to time, the “Loan Agreement”; all capitalized terms used herein but not otherwise defined shall have
the respective meanings ascribed to such terms in the Loan Agreement), which Loan shall be evidenced by one or more promissory
notes (as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time, collectively, the
“Note”) and secured by a pledge of 100% of Borrower’s limited liability company interest in the Property
Owner, pursuant to that certain Pledge and Security Agreement, dated as of the date hereof, in favor of Lender pursuant to which
Borrower has pledged its membership interest in Property Owner (the “Collateral”) as additional security for
the Loan.

 

B.     WHEREAS,
the Lender is unwilling to make the Loan unless Indemnitor agrees to provide the indemnification, representations, warranties,
covenants and other matters described in this Agreement for the benefit of Lender.

 

C.     WHEREAS,
Indemnitor is entering into this Agreement to induce the Lender to make the Loan.

 

AGREEMENT

 

NOW THEREFORE, in consideration
of the mutual premises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Indemnitor hereby represents, warrants, covenants and agrees for the benefit of Lender as follows:

 

1.     Environmental
Representations And Warranties. The representations and warranties of Borrower set forth in Section 4.28 of the Loan Agreement
relating to environmental matters are incorporated herein by this reference as if fully set forth herein and deemed to have been
made as of the date hereof by Indemnitor.

 

2.     Environmental
Covenants. Indemnitor covenants that:

 

    	 	1	 

     

    

 

(a)          all
uses and operations on or of the Property by Property Owner or any Affiliate of Borrower or Property Owner shall be in compliance
in all material respects with all applicable Environmental Laws;

 

(b)          Borrower
shall cause Property Owner to use commercially reasonable efforts to ensure that uses and operations by all tenants or other users
of the Property are in compliance in all material respects with all applicable Environmental Laws;

 

(c)          Borrower
shall cause Property Owner use commercially reasonable efforts to ensure that there shall be no Releases of Hazardous Substances
in, on, under or from the Property in violation of Environmental Law;

 

(d)          Borrower
shall cause Property Owner to use commercially reasonable efforts to ensure that there shall be no Hazardous Substances in, on,
or under the Property, except those that are (i) both (A) in compliance in all material respects with all applicable Environmental
Laws and, if applicable, with permits issued pursuant thereto, and (B) fully disclosed to Lender in writing (including in
the Environmental Reports provided to Lender ) or routinely used in the operation and maintenance of, or by tenants in, commercial
properties similar to the Property, or (ii) not reasonably likely to result in a Material Adverse Effect. Notwithstanding the foregoing,
it shall not be a default under the Loan Documents if any Hazardous Substances that fail to satisfy either clauses (i) or (ii)
of the previous sentence are in, on or under the Property and Borrower (x) causes Property Owner to commence the Remediation of
the same in accordance with applicable Environmental Law within 30 days after written notice thereof (or, if Property Owner is
unable to secure any Permits or approvals of applicable Governmental Authorities required for such Remediation during such 30 day
period after reasonable effort, upon its securing such Permits, provided that Borrower causes Property Owner to continue to attempt
to secure the same in a diligent manner), and (y) thereafter causes Property Owner to diligently and expeditiously proceeds to
Remediate the same;

 

(e)          Borrower
shall cause Property Owner to keep the Property free and clear of all liens and other encumbrances imposed pursuant to any Environmental
Law, whether or not due to any act or omission of Borrower (the “Environmental Liens”), provided that it shall
not be a default under the Loan Documents if any such Environmental Liens are imposed and Borrower either (i) causes Property Owner
to commence to remove such Environmental Liens within 30 days after written notice thereof and thereafter diligently and expeditiously
proceeds to remove the same, or (ii) after notice to Lender, causes Property Owner to contest by appropriate legal proceedings,
promptly initiated and conducted in good faith and with due diligence, the imposition of such Environmental Liens, so long as (A)
no Event of Default has occurred and is continuing, (B) such proceeding shall suspend the enforcement of such Environmental Liens,
(C) neither the Property nor any part thereof or interest therein will be in danger of being sold, forfeited, terminated, canceled
or lost, and (D) either Borrower or Property Owner shall have furnished such security as may be required in the proceeding, or
as may be reasonably requested by Lender, to ensure the payment of any costs or expenses related to removal of the Environmental
Lien or the prosecution of the legal proceedings, together with all interest or penalties thereon;

 

    	 	2	 

     

    

 

(f)          Borrower
shall cause Property Owner to expeditiously and reasonably cooperate in all activities pursuant to Section 3 of this Agreement,
including but not limited to providing all relevant information and making knowledgeable persons available for interviews;

 

(g)          Borrower
shall cause Property Owner to perform any environmental site assessment or other investigation of environmental conditions in connection
with the Property, pursuant to any reasonable request of Lender made in the event that Lender reasonably believes that an environmental
hazard exists on the Property in violation of applicable Environmental Laws (including but not limited to sampling, testing and
analysis of soil, water, air, building materials, and other materials and substances whether solid, liquid or gas), and share with
Lender the reports and other results thereof, and Lender shall be entitled to rely on such reports and other results thereof;

 

(h)          Borrower
shall cause Property Owner to comply with all reasonable requests of Lender made in the event that Lender reasonably determines
that either (i) the Property or any operation thereon is in material violation of Environmental Law; or (ii) Hazardous Substances
are present or have been Released at, in, on or from the Property in violation of Environmental Law or in a manner that is likely
to result in the imposition of Liability under Environmental Law, to: (x) reasonably effectuate Remediation of such Hazardous
Substance or condition if and to the extent required by applicable Environmental Laws; (y) comply in all material respects
with any applicable Environmental Law; and (z) comply with any directive from any applicable Governmental Authority, provided
that with respect to the foregoing, after notice to Lender, Borrower may cause Property Owner to suspend such compliance and contest
by appropriate legal proceeding, promptly initiated and conducted in good faith and with due diligence, the applicability of such
Environmental Law, and provided further that (A) no Event of Default (as defined in the Loan Agreement) has occurred and is
continuing, (B) the Property nor any part thereof or interest therein will be in danger of being sold, forfeited, terminated,
canceled or lost as a result of Borrower’s contesting the foregoing, and (C) either Borrower or Property Owner shall
have furnished the security, if any, as may be required in the proceeding, or as may be reasonably requested by Lender, to ensure
the payment of any costs or expenses related to such proceeding, together with all interest and penalties thereon;

 

(i)          Borrower
shall cause Property Owner not to do, and shall cause Property Owner to use commercially reasonable efforts to prevent any tenant
or other user of the Property from doing, any act, that is in material non-compliance of applicable Environmental Law or violates
any covenant, condition, agreement or easement relating to any environmental matters and applicable to the Property and that is
reasonably likely, in any such case, to result in a Material Adverse Effect;

 

(j)          Borrower
shall cause Property Owner to promptly notify Lender as Property Owner becomes aware of (i) any presence or Release of Hazardous
Substances in, on, under, or from the Property other than those that comply with Section 2(d) above; (ii) any material non-compliance
with any Environmental Laws with respect to the Property; (iii) any Environmental Lien recorded against the Property or threatened
in writing to be recorded against the Property; (iv) any Remediation of environmental conditions relating to the Property
that is required by a Governmental Authority or pursuant to Environmental Law; and (v) any written notice or other written communication
received by Borrower from any Governmental Authority or any other Person relating to (A) the presence of any Hazardous Substances
on the Property, or Remediation thereof, (B) the liability of any Person pursuant to any Environmental Law with respect to environmental
contaminants in, on, under or released from the Property, or (C) any actual administrative or judicial proceedings or such proceedings
threatened in writing with respect to environmental contaminants in, on under or released from the Property in violation of Environmental
Laws and any environmental matters addressed in this Agreement.

 

    	 	3	 

     

    

 

(k)          If,
at any time, it is determined that asbestos is present on the Property, Borrower shall cause Property Owner to retain an environmental
consultant reasonably satisfactory to Lender to prepare an operations and maintenance program, and Borrower shall cause Property
Owner to comply with the same. Borrower shall or shall cause Property Owner to deliver a copy of any such program to Lender.

 

3.     Indemnified
Rights/Cooperation and Access. In the event that Lender reasonably believes that an environmental hazard exists or there is
a violation of Environmental Law at the Property that is reasonably likely to have a Material Adverse Effect, or that is likely
to endanger any tenants or other occupants of such Property, upon reasonable notice from Lender, Indemnitor shall promptly cause
an engineer or consultant reasonably satisfactory to Lender to conduct an environmental assessment or audit to assess any and all
aspects of the condition giving rise to such belief (the scope of which shall be determined in the reasonable discretion of Lender)
and take any samples of soil, groundwater or other water, air, or building materials or any other invasive testing reasonably necessary,
as determined by such engineer or consultant, to determine whether an environmental hazard exists or there is a violation of Environmental
Law at the Property that is reasonably likely to have a Material Adverse Effect or that is likely to endanger any tenants or other
occupants of such Property, and promptly deliver the results of any such assessment, audit, sampling or other testing to Lender
and Indemnitor (and Lender and the other Indemnified Parties shall be entitled to rely on the same); provided, however,
that, if such results are not delivered to Lender within a reasonable period following receipt of written notice from Lender of
Indemnitor’s failure to comply with the provisions of this Section 3, upon reasonable notice to Indemnitor, Lender
and any other Person designated by Lender, including but not limited to any receiver, any representative of a Governmental Authority,
and any environmental consultant shall have the right, but not the obligation, to enter upon the Property at all reasonable times
(subject to the rights of tenants) to assess any and all aspects of the environmental condition of the applicable Property, including
but not limited to, by conducting any environmental assessment or audit (the scope of which shall be determined in the reasonable
discretion of Lender) and taking samples of soil, groundwater or other water, air, or building materials, and reasonably conducting
other invasive testing. Indemnitor shall cooperate with and provide, upon advance notice, Lender and any such Person designated
by Lender with such access to the Property.

 

4.     Indemnification.
Indemnitor covenants and agrees to protect defend, indemnify, release and hold the Indemnified Parties harmless from and against,
any and all Losses imposed upon, incurred by or asserted against any of the Indemnified Parties and directly or indirectly arising
out of or in any way relating to any one or more of the following:

 

    	 	4	 

     

    

 

(a)          any
presence of any Hazardous Substances in, on, above, or under the Property;

 

(b)          any
past, present or threatened Release of Hazardous Substances in, on, above, under or from the Property;

 

(c)          any
use, treatment, storage, holding, existence, disposition or other Release, generation, production, manufacturing, processing, refining,
control, management, abatement, removal, handling on or at or transfer or transportation to or from the Property of any Hazardous
Substances at any time located in, under, on or above the Property;

 

(d)          any
actual or proposed Remediation of any Hazardous Substances at any time located in, under, on or above the Property, whether or
not such Remediation is voluntary or pursuant to court or administrative order, including but not limited to any removal, remedial
or corrective action;

 

(e)          any
non-compliance or violations of any Environmental Laws (or permits issued pursuant to any Environmental Laws) in connection with
the Property or operations thereon, including but not limited to any failure by Borrower, Property Owner any Affiliate of Borrower
or Property Owner, or any tenant or other user of the Property to comply with any order of any Governmental Authority in connection
with any Environmental Laws;

 

(f)          the
imposition, recording or filing of any Environmental Lien encumbering the Property;

 

(g)          any
administrative processes or proceedings or judicial proceedings in connection with the existence of Hazardous Substances on, in,
under or released from the Property in violation of applicable Environmental Laws;

 

(h)          any
act of Borrower, Property Owner, any Affiliate of Borrower or Property Owner, or any tenant or other user of the Property in arranging
for disposal or treatment, or arranging with a transporter for transport, disposal or treatment, of Hazardous Substances in, on,
under or released from the Property in violation of applicable Environmental Laws, in each case, at any disposal or treatment facilities,
incineration vessels or sites owned or operated by another Person and containing such Hazardous Substances;

 

(i)          any
act of Borrower, Property Owner, any Affiliate of Borrower or Property Owner, or any tenant or other user of the Property in accepting
any Hazardous Substances for transport to disposal or treatment facilities, incineration vessels or sites selected by Borrower
or such other users from which there is a Release, or a threatened Release of any Hazardous Substance that causes the incurrence
of costs for Remediation;

 

(j)          any
personal injury, wrongful death, or property or other damage related to environmental matters arising under any statutory or common
law or tort law theory by reason of the wrongful acts or omissions of Borrower, any Affiliate of Borrower or any tenant or other
user of the Property, including but not limited to damages assessed for private or public nuisance or for the conducting of an
abnormally dangerous activity on or near the Property;

 

    	 	5	 

     

    

 

(k)          any
material misrepresentation or inaccuracy in any representation or warranty in this Agreement or material breach or failure to perform
any covenants or other obligations of Borrower or Indemnitor pursuant to this Agreement; and

 

(l)          any
presence of mold or mold spores at the Property including the cost and expense of any repair, replacement, removal, cleanup, abatement,
disposal, relocation or other remedial actions required at the Property for purposes of addressing any medical or legal concerns
resulting therefrom.

 

Notwithstanding any other
provision of this Agreement to the contrary, the indemnity provided by this Section 4 shall not apply to any Losses, costs
of Remediation or other liabilities of any Indemnified Party to the extent arising out of (i) any action taken by any Person (other
than Borrower, Property Owner, Guarantor, or any other Person that, directly or indirectly, Controls, is Controlled by or is under
Common Control with Guarantor) from and after a Transfer approved by Lender in accordance with the terms of the Loan Documents
of the entire Property or all of the direct and indirect interests of Borrower in Mortgage Borrower to a Person that is not an
Affiliate of Guarantor, (ii) any action taken by any Person (other than Borrower, Property Owner, Guarantor, or any other Person
that, directly or indirectly, Controls, is Controlled by or is under Common Control with Guarantor) from and after Mortgage Lender
obtains title to the Property or Lender obtains title to the Collateral, whether by foreclosure, deed-in-lieu of foreclosure or
otherwise in connection with any exercise of Mortgage Lender’s remedies pursuant to the Mortgage Loan Documents or Lender’s
remedies pursuant to the Loan Documents, or any actions taken by any Person (other than Borrower, Property Owner, Guarantor or
any other Person that, directly or indirectly, Controls, is Controlled by or is under Common Control with Guarantor, except if
such action of Borrower, Property Owner, Guarantor or any other such Person is caused or required by a receiver, trustee, liquidator,
conservator, Lender or applicable law) on or after the date on which a receiver, trustee, liquidator, or conservator is appointed,
at Mortgage Lender’s or Lender’s request, to take Control of the Property or the Collateral, or (iii) any action taken
(a) by Lender or, to the extent there is any other mezzanine lender (“Additional Mezzanine Lender”) with respect
to any additional mezzanine loan (“Additional Mezzanine Loan”) under Section 9.24(b) of the Loan Agreement,
any Additional Mezzanine Lender, during any period in which either Lender or Additional Mezzanine Lender exercises Control of any
Required SPE, Borrower, Property Owner and/or the Property or the Collateral under the loan documents or the documents evidencing
the Additional Mezzanine Loan, as applicable, or (b) from and after a mezzanine foreclosure or assignment-in-lieu thereof with
respect to any Additional Mezzanine Loan.

 

    	 	6	 

     

    

 

5.     Duty
to Defend and Attorneys’ and Other Fees and Expenses. Indemnitor agrees that, upon request by any Indemnified Party,
the Indemnitor shall defend such Indemnified Party against any claim for which Indemnitor is indemnifying the Indemnified Parties
pursuant to Section 4 above (if requested by any Indemnified Party, in the name of such Indemnified Party) by attorneys
and other professionals reasonably approved by the Indemnified Parties. Notwithstanding the foregoing, if the defendants in a claim
include Borrower and any Indemnified Party shall have reasonably concluded that (A) there are legal defenses available to
it that are materially different from those available to Indemnitor, or (B) the use of the attorneys engaged by Indemnitor
would present such attorneys with a conflict of interest, such Indemnified Party may, in its sole and absolute discretion, engage
its own attorneys and other professionals to assume its legal defenses and to defend or assist it, and, at the option of such Indemnified
Party, its attorneys shall control the resolution of any claim or proceeding against such Indemnified Party, provided that no compromise
or settlement shall be entered without the Indemnitor’s consent, which consent shall not be unreasonably withheld. Except
as otherwise provided above, upon demand, Indemnitor shall be liable to, and shall, pay or, in the sole and absolute discretion
of any Indemnified Party, reimburse, such Indemnified Party for the payment of reasonable fees and disbursements of attorneys,
engineers, environmental consultants, laboratories and other professionals in connection therewith; provided, however, notwithstanding
anything to the contrary herein, Indemnitor shall not be responsible for the cost of more than one attorney to represent, collectively,
any and all Indemnified Parties.

 

6.     Definitions.
As used in this Agreement, the following terms shall have the following meanings:

 

The term “Environmental
Laws” means any and all present and future federal, state and local laws, statutes, ordinances, orders, rules, regulations
and the like, as well as common law, any judicial or administrative orders, decrees or judgments thereunder, and any governmental
permits, approvals, licenses, registrations, filings and authorizations, in each case as now or hereafter in effect, relating to
(i) the pollution by, protection from or cleanup of Hazardous Substances, (ii) the impact of Hazardous Substances on property,
health or safety as applicable to the Property, (iii) the Use or Release of Hazardous Substances, (iv) occupational safety and
health, industrial hygiene or the protection of human, plant or animal health or welfare in connection with Hazardous Substances
or (v) the liability for or costs of other actual or threatened danger to health or the environment arising from Hazardous Substances.
The term “Environmental Law” includes, but is not limited to, the following statutes, as amended, any successors
thereto, and any regulations promulgated pursuant thereto, and any state or local statutes, ordinances, rules, regulations and
the like addressing similar issues: the Comprehensive Environmental Response, Compensation and Liability Act; the Emergency Planning
and Community Right-to-Know Act; the Hazardous Materials Transportation Act; the Resource Conservation and Recovery Act (including
but not limited to Subtitle I relating to underground storage tanks); the Clean Water Act; the Clean Air Act; the Toxic Substances
Control Act; the Safe Drinking Water Act; the Occupational Safety and Health Act; the Federal Water Pollution Control Act; the
Federal Insecticide, Fungicide and Rodenticide Act; the Endangered Species Act; the National Environmental Policy Act; and the
River and Harbors Appropriation Act. The term “Environmental Law” also includes, but is not limited to, any
present and future federal state and local laws, statutes ordinances, rules, regulations and the like, as well as common law, conditioning
transfer of property upon a negative declaration or other approval of a Governmental Authority of the environmental condition of
a property; or requiring notification or disclosure of Releases of Hazardous Substances or other environmental conditions of a
property to any Governmental Authority or other Person, whether or not in connection with transfer of title to or interest in property.

 

    	 	7	 

     

    

 

The term “Hazardous
Substances” means any and all substances (whether solid, liquid or gas) defined, listed, or otherwise classified as pollutants,
hazardous wastes, hazardous substances, hazardous materials, extremely hazardous wastes, toxic substances, toxic pollutants, contaminants,
pollutants or words of similar meaning or regulatory effect under any present or future Environmental Laws or the presence of which
on, in or under the Property is prohibited or requires investigation or remediation under Environmental Law, including petroleum
and petroleum by-products, asbestos and asbestos-containing materials, toxic mold, polychlorinated biphenyls, lead and radon, and
compounds containing them (including gasoline, diesel fuel, oil and lead-based paint), pesticides and radioactive materials, flammables
and explosives and compounds containing them.

 

The term “Indemnified
Parties” means (i) Lender, (ii) any Person who is or will have been involved with the servicing of the Loan or (iii)
any Person who may hold or acquire or will have held a full or partial direct interest in the Loan (including those Persons identified
previously in this clause (iii) who acquire the Property in a foreclosure or conveyance-in-lieu of foreclosure by such Persons
as a holder of the Loan) (including, but not limited to, custodians, trustees and other fiduciaries who hold or have held a full
or partial direct interest in the Loan or, as applicable with respect to clause (iii) above, the Property, for the benefit of third
parties) as well as the respective officers, partners, members, directors, trustees, employees, agents, Affiliates, successors
and permitted assigns of any and all of the foregoing.

 

The term “Legal
Action” means any claim, suit or proceeding, whether administrative or judicial in nature.

 

The term “Losses”
means any actual losses, damages (but excluding consequential, special and punitive damages), costs, fees (including reasonable
fees of attorneys, engineers and environmental consultants), expenses, claims, suits, judgments, awards, liabilities (including
but not limited to strict liabilities), obligations, debts, fines, penalties, charges, costs of Remediation (whether or not performed
voluntarily), amounts paid in settlement, litigation costs, reasonable attorneys’ fees, engineers’ fees, environmental
consultants’ fees, and investigation costs (including but not limited to costs for sampling, testing and analysis of soil,
water, air, building materials, and other materials and substances whether solid, liquid or gas), of whatever kind or nature, and
whether or not incurred in connection with any judicial or administrative proceedings, actions, claims, suits, judgments or awards.

 

The term “Release”
means any release, deposit, discharge, emission, leaking, leaching, spilling, seeping, migrating, injecting, pumping, pouring,
emptying, escaping, dumping, disposing or other movement of Hazardous Substances into the indoor or outdoor environment (including
the movement of Hazardous Substances through ambient air, soil, surface water, ground water, wetlands, land or subsurface strata).

 

The term “Remediation”
means any response, remedial removal, or corrective action; any activity to clean up, detoxify, decontaminate, contain or otherwise
remediate any Hazardous Substance; any actions to prevent, cure or mitigate any Release of any Hazardous Substance; any action
to comply with any Environmental Laws or with any permits issued pursuant thereto; any inspection, investigation, study, monitoring,
assessment, audit, sampling and testing, laboratory or other analysis, or evaluation relating to any Release of Hazardous Substances.

 

    	 	8	 

     

    

 

7.     Unimpaired
Liability. Except as otherwise explicitly set forth herein, the liability of Indemnitor under this Agreement shall in no way
be limited or impaired by, and Indemnitor hereby consents and agrees to and shall be bound by, any amendment, replacement or modification
of the provisions of the Note, the Loan Agreement or any other Loan Document entered into by (x) Borrower or any Person who succeeds
Borrower as borrower under the Loan or (y) any other Affiliate of Borrower party to such Loan Document. In addition, the liability
of Indemnitor under this Agreement shall in no way be limited or impaired by (i) any extensions of time for performance required
by the Note, the Loan Agreement or any of the other Loan Documents, (ii) except as provided in Section 4, unless a
substitute Indemnitor is a Qualified Equityholder or is otherwise acceptable to Lender (in its sole discretion) has agreed in writing
to be bound by the terms of this Agreement, any sale or transfer of all or part of the Collateral, (iii) the accuracy or inaccuracy
of the representations and warranties made by Borrower under the Note, the Loan Agreement or any of the other Loan Documents or
herein, (iv) the release of Borrower or any other Person from performance or observance of any of the agreements, covenants,
terms or condition contained in any of the other Loan Documents by operation of law, Lender’s voluntary act, or otherwise,
or (v) the release or substitution in whole or in part of any security for the Note.

 

8.     Enforcement.
(a) The Indemnified Parties may enforce the obligations of Borrower without first resorting to or exhausting any security or collateral
or without first having recourse pursuant to the Note, the Loan Agreement or any other Loan Documents, through foreclosure proceedings
or otherwise. It is not necessary for an Event of Default to have occurred pursuant to and as defined in the Loan Agreement for
any Indemnified Party to exercise its rights pursuant to this Agreement. Indemnitor hereby acknowledges and agrees that Indemnitor
is fully and personally liable for the obligations hereunder, and any liability hereunder is not limited to the original or amortized
principal balance of the Loan or the value of the Collateral.

 

(b)          Notwithstanding
anything to the contrary set forth herein, this Agreement is not and shall not be deemed to be secured by the Mortgage. Without
limiting any of the remedies provided in the Loan Documents, Indemnitor acknowledges and agrees that the provisions of this Agreement
are environmental provisions made by Indemnitor relating to the Property (the “Environmental Provisions”). Indemnitor’s
breach or a failure to comply with the Environmental Provisions shall constitute a breach of contract entitling Lender to all remedies
for the recovery of damages and for the enforcement of the Environmental Provisions. The Indemnified Parties’ actions for
recovery of damages or enforcement of the Environmental Provisions shall not constitute an action nor constitute a money judgment
for a deficiency or a deficiency judgment. All remedies provided for by the Loan Documents are separate and distinct causes of
action that are not abrogated, modified, limited or otherwise affected by the remedies provided herein.

 

(c)          Notwithstanding
any provision of the Loan Documents, the obligations pursuant to this Agreement are exceptions to any non-recourse or exculpation
provisions of the Loan Agreement. Indemnitor is fully and personally liable for all such obligations hereunder.

 

    	 	9	 

     

    

 

9.     Survival.
Subject to the last paragraph of Section 4, the obligations and liabilities of Indemnitor under this Agreement shall survive the
payment in full of the Indebtedness. Notwithstanding the foregoing, the indemnification obligations of Indemnitor hereunder shall
terminate three (3) years after the full and indefeasible payment by Borrower of the Indebtedness, provided that at the
time of such payment, Indemnitor furnishes to Lender a Phase I environmental report with respect to the Property, which report
is from an environmental consultant reasonably acceptable to Lender, which updated environmental report(s) disclose, no actual
or threatened (other than as disclosed in the Environmental Report delivered to Lender by Indemnitor in connection with the origination
of the Loan) (A) material non-compliance with or violation in any material respect of applicable Environmental Laws (or permits
issued pursuant to Environmental Laws) in connection with such Property or operations thereon, (B) Environmental Liens encumbering
the Property, (C) administrative processes or proceedings or judicial proceedings in any way connected with any matter addressed
in the indemnity provisions of this Agreement or (D) presence or Release of Hazardous Substances in, on, under or from such Property,
excluding substances of kinds and in amounts ordinarily and customarily used or stored in properties similar to the Property for
the purposes of cleaning or other maintenance or operations and otherwise in compliance with all Environmental Laws, that has not
been fully remediated in accordance with all applicable Environmental Laws.

 

10.   Interest.
Any amounts payable to any Indemnified Parties under this Agreement shall become immediately due and payable on demand and, if
not paid within thirty (30) days of such demand, shall bear interest at the Default Rate (as defined in the Loan Agreement) from
the date following thirty (30) days after such demand.

 

11.   Waivers.
Indemnitor hereby waives (a) any right or claim of right to cause a marshaling of its assets or to cause Lender or the other
Indemnified Parties to proceed against any of the security for the Loan before proceeding under this Agreement against Borrower;
(b) all rights and remedies accorded by applicable law to indemnitors or guarantors, except any rights of subrogation that
Borrower may have, provided that the indemnity provided for hereunder shall neither be contingent upon the existence of any such
rights of subrogation nor subject to any claims or defenses whatsoever that may be asserted in connection with the enforcement
or attempted enforcement of such subrogation rights, including any claim that such subrogation rights were abrogated by any acts
of any of the Indemnified Parties; (c) the right to assert a counterclaim, other than a mandatory or compulsory counterclaim, in
any action or proceeding brought against or by any of the Indemnified Parties; (d) notice of acceptance hereof and of any action
taken or omitted in reliance hereon; (e) presentment for payment, demand of payment, protest or (unless expressly required hereby)
notice of nonpayment or failure to perform or observe, or other proof, or notice or demand; and (f) all homestead exemption rights
against the obligations hereunder and the benefits of any statutes of limitations or repose. Notwithstanding anything to the contrary
contained herein, Indemnitor shall postpone the exercise of any rights of subrogation with respect to any collateral securing the
Loan until the Loan shall have been repaid in full. No delay by any Indemnified Party in exercising any right, power or privilege
under this Agreement shall operate as a waiver of any such privilege, power or right.

 

    	 	10	 

     

    

 

12.    Subrogation.
Indemnitor shall take any and all reasonable actions, including institution of legal action against third parties, necessary or
appropriate to obtain reimbursement, payment or compensation from such Persons responsible for any liability arising out of the
presence of any Hazardous Substances at, in, on or under the Property or otherwise obligated by law to bear the cost. The Indemnified
Parties shall be and hereby are subrogated to all of the rights of Indemnitor now or hereafter in such claims.

 

13.    Representations
and Warranties. Indemnitor jointly and severally represents and warrants that:

 

(a)          Indemnitor
has the full power and authority to execute and deliver this Agreement and to perform its obligations hereunder; the execution,
delivery and performance of this Agreement by Indemnitor has been duly and validly authorized; and all requisite action has been
taken by Indemnitor to make this Agreement valid and binding upon Indemnitor;

 

(b)          Indemnitor’s
execution of, and compliance with, this Agreement is in the ordinary course of business of Indemnitor and will not result in the
breach of any term or provision of the certificate of limited liability company, certificate of incorporation, limited liability
company agreement, charter, by-laws, partnership or trust agreement, or other governing instrument of Indemnitor or result in the
breach of any term or provision of, or conflict with or constitute a default under, or result in the acceleration of any obligation
under, any agreement, indenture or loan or credit agreement or other instrument to which Borrower, Property Owner, Guarantor or
the Property is subject, or result in the violation of any law, rule, regulation, order, judgment or decree to which Borrower,
Property Owner or the Property is subject;

 

(c)          to
Borrower’s knowledge, there is no action, suit, proceeding or investigation pending or threatened against Borrower or Property
Owner that, either in any one instance or in the aggregate, may result in a Material Adverse Effect, or that would draw into question
the validity of this Agreement or of any action taken or to be taken in connection with the obligations of Indemnitor contemplated
herein, or that would be likely to impair materially the ability of Borrower to perform under the terms of this Agreement;

 

(d)          Indemnitor
does not believe, nor does it have any reason or cause to believe, that it cannot perform each and every covenant contained in
this Agreement;

 

(e)          no
approval, authorization, order, license or consent of, or registration or filing with, any Governmental Authority or other person,
and no approval, authorization or consent of any other party is required in connection with the execution and delivery by Indemnitor
of this Agreement except to the extent otherwise obtained prior to the date hereof; and

 

(f)          this
Agreement constitutes a valid, legal and binding obligation of Indemnitor subject to bankruptcy, insolvency and similar laws of
general applicability relating to or affecting creditors’ rights and to general equity principles.

 

14.    No
Waiver. No delay by any Indemnified Party in exercising any right, power or privilege under this Agreement shall operate as
a waiver of any such privilege, power or right.

 

    	 	11	 

     

    

 

15.    Notice
of Legal Actions. Each party hereto shall, within ten (10) business days of receipt thereof, give notice to the other parties
hereto of (i) any written notice from any Governmental Authority or any source whatsoever with respect to Hazardous Substances
on, from or affecting the Property in violation of Environmental Law, and (ii) any Legal Action brought against such party
or related to the Property, with respect to which Borrower may have liability under this Agreement. Such notice shall comply with
the provisions of Section 16 hereof.

 

16.    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 address 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 Agreement 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 Paramount Group Real Estate Fund VIII, L.P.
	 	1633 Broadway, Suite 1801
	 	New York, New York  10019
	 	Attention:  Albert Behler, CEO
	 	E-mail: abehler@paramount-group.com
	 	 
	with copies to:	c/o Paramount Group Real Estate Fund VIII, L.P.
	 	1633 Broadway, Suite 1801
	 	New York, New York  10019
	 	Attention:  Gage Johnson, General Counsel
	 	E-mail: gjohnson@paramount-group.com
	 	 
	and:	Willkie Farr & Gallagher LLP
	 	787 Seventh Avenue
	 	New York, New York 10019
	 	Attention:  Thomas J. Henry
	 	E-mail: thenry@willkie.com
	 	 
	If to Indemnitor:	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 copy 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
	 	 
	with a copy to:	Arnold & Porter LLP
	 	399 Park Avenue
	 	New York, NY 10022
	 	Attn:  John  Busillo, Esq.
	 	E-Mail:  John.Busillo@aporter.com

  

    	 	12	 

     

    

 

17.    Duplicate
Originals; Counterparts; Facsimile Signatures. This Agreement may be executed in any number of duplicate originals and each
duplicate original shall be deemed to be an original. This Agreement may be executed in several counterparts, each of which counterparts
shall be deemed an original instrument and all of which together shall constitute a single Agreement. 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 Agreement.

 

18.    No
Oral Change. This Agreement, and any provisions hereof, may not be modified, amended, waived, extended, changed, discharged
or terminated orally or by any act or failure to act on the part of Borrower or any Indemnified Party, but only by an agreement
in writing signed by the party against whom enforcement of any modification, amendment, waiver, extension, change, discharge or
termination is sought.

 

19.    Headings,
Etc. The headings and captions of Sections of this Agreement are for convenience of reference only and are not to be construed
as defining or limiting, in any way, the scope or intent of the provisions hereof.

 

20.    Rules
of Construction / Successors and Assigns. All pronouns and any variations thereof shall be deemed to refer to the masculine,
feminine, neuter, singular or plural as the identity of the person or persons referred to may require. All references to sections,
schedules and exhibits are to sections, schedules and exhibits in or to this Agreement unless otherwise specified. Unless otherwise
specified: (i) all meanings attributed to defined terms in this Agreement 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 Agreement shall refer to this Agreement as a whole and not to any particular provision,
article, section or other subdivision of this Agreement. Without limiting the effect of specific references in any provision of
this Agreement, the term “Indemnitor” shall be deemed to refer to each and every Person comprising Indemnitor from
time to time, as the sense of a particular provision may require, and to include the successors and assigns of either Indemnitor,
all of whom shall be bound by the provisions of this Agreement (subject to the terms hereof), provided that Indemnitor may not
assign its obligations hereunder except with the written consent of Lender in its sole discretion except as permitted by, and in
accordance with, the express provisions of the Loan Agreement. This Agreement shall inure to the benefit of the Indemnified Parties
and their respective successors and permitted assigns forever.

 

21.    Release
of Liability. Any one or more parties liable upon or in respect of this Agreement may be released without affecting the liability
of any party not so released.

 

22.    Rights
Cumulative. The rights and remedies herein provided are cumulative and not exclusive of any rights or remedies that Lender
has under the Note, the Loan Agreement or the other Loan Documents or would otherwise have at law or in equity.

 

    	 	13	 

     

    

 

23.    Inapplicable
Provisions. If any term, condition or covenant of this Agreement shall be held to be invalid, illegal or unenforceable in any
respect, this Agreement shall be construed without such provision.

 

24.    Governing
Law; Waiver of Trial by Jury. (a) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK WITHOUT REGARD TO CHOICE OF LAW RULES TO THE EXTENT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED
THEREBY.

 

(b)          ANY
LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR INDEMNITOR ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL BE INSTITUTED
IN ANY FEDERAL OR STATE COURT IN NEW YORK COUNTY, NEW YORK. LENDER AND INDEMNITOR HEREBY (i) IRREVOCABLY WAIVE, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT THEY 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 16 HEREOF.

 

(c)          EACH
OF INDEMNITOR AND LENDER, TO THE FULLEST EXTENT THAT IT MAY LAWFULLY DO SO, HEREBY AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE
TRIABLE OF RIGHT BY JURY, AND WAIVES ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER
EXIST WITH REGARD TO THIS AGREEMENT, 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 INDEMNITOR 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. THE INDEMNIFIED PARTIES AND INDEMNITOR
ARE HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY INDEMNITOR AND
LENDER.

 

25.    Miscellaneous.
(a) Wherever pursuant to this Agreement (i) Lender exercises any right given to it to approve or disapprove, (ii) any arrangement
or term is to be satisfactory to Lender, or (iii) any other decision or determination is to be made by Lender, the decision of
Lender to approve or disapprove, all decisions that arrangements or terms are satisfactory or not satisfactory and all other decisions
and determinations made by Lender, shall be in the sole and absolute discretion of Lender and shall be final and conclusive, except
as may be otherwise expressly and specifically provided herein.

 

    	 	14	 

     

    

 

(b)          Wherever
pursuant to this Agreement it is provided that Borrower pay any costs and expenses, such costs and expenses shall include, but
not be limited to, reasonable legal fees and disbursements of Lender’s retained firms.

 

(c)          All
obligations and liabilities hereunder of the parties comprising Indemnitor shall be joint and several.

 

[Signatures
on following page] 

 

    	 	15	 

     

    

 

IN WITNESS WHEREOF, this
Agreement has been executed by Indemnitor and is effective as of the day and year first above written.

 

	 	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
	 	 
	 	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 SignatoryExhibit 10.9

 

EXECUTION

 

GUARANTY

 

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.

 

(a)          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

     

    

 

(b)          Notwithstanding
anything herein or in the Loan Documents to the contrary, Guarantor shall have no liability for Guaranteed Obligations or other
matters hereunder for (i) any action taken by any Person (other than Borrower, Guarantor, or any other Person that, directly or
indirectly, Controls, is Controlled by or is under Common Control with Guarantor) from and after a Transfer approved by Lender
in accordance with the terms of the Loan Documents of the entire Property or a transfer of all of the direct and indirect equity
interests of Borrower to a Person that is not an Affiliate of Guarantor, (ii) any action taken by any Person (other than Borrower,
Guarantor, or any other Person that, directly or indirectly, Controls, is Controlled by or is under Common Control with Guarantor)
from and after Lender obtains title to the Property, whether by foreclosure, deed-in-lieu of foreclosure or otherwise in connection
with any exercise of Lender’s remedies pursuant to the Loan Documents, or any actions taken by any Person (other than Borrower,
Guarantor or any other Person that, directly or indirectly, Controls, is Controlled by or is under Common Control with Guarantor,
except if such action of Borrower, Guarantor or any other such Person is caused or required by a receiver, trustee, liquidator,
conservator, Lender or applicable law) on or after the date on which a receiver, trustee, liquidator, or conservator is appointed,
at Lender’s request, to take Control of the Property, or (iii) any action taken (a) by Mezzanine Lender or, to the extent
there is any other mezzanine lender (“Additional Mezzanine Lender”) with respect to any additional mezzanine
loan (“Additional Mezzanine Loan”) under Section 9.24(b) of the Loan Agreement, any Additional Mezzanine Lender,
during any period in which either Mezzanine Lender or Additional Mezzanine Lender exercises Control of any Required SPE, Borrower
and/or the Property under the Mezzanine Loan Documents or Additional Mezzanine Loan Documents, as applicable, or (b) from and
after a mezzanine foreclosure or assignment-in-lieu thereof.

 

1.2           Definition
of Guaranteed Obligations. As used herein, the term “Guaranteed Obligations” means all obligations and
liabilities of Borrower pursuant to Section 9.19(b) and Section 9.19(c) of the Loan Agreement.

 

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, subject to Section 1.1(b) above 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.

 

    	2

     

    

 

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. Subject to Section 1.1(b), 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.

 

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.

 

    	3

     

    

 

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;

 

(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.

 

    	4

     

    

 

(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.

 

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:

 

    	5

     

    

 

(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.

 

(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.

 

    	6

     

    

 

(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.

 

(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. Subject to Section 1.1(b), any change in or termination of the ownership interest of Guarantor (whether direct
or indirect).

 

    	7

     

    

 

(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
and except subject to Section 1.1(b).

 

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.

 

    	8

     

    

 

(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.

 

(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.

 

    	9

     

    

 

(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.

 

(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 subject to Section 1.1(b). 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.

 

    	10

     

    

 

(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.

 

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.

 

    	11

     

    

 

(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).

 

(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.

 

    	12

     

    

 

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.

 

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.

 

    	13

     

    

 

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.

 

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.

 

    	14

     

    

 

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.

 

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.

 

    	15

     

    

 

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
	 	 	 
	 	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

  

    	16

     

    

  

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.

 

(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.

 

    	17

     

    

 

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]

 

    	18

     

    

 

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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