Document:

Exhibit 10.22

 

 

 

SECURITY AGREEMENT

 

 

This
is a Security Agreement made this 3rd day of June, 2013 by and between NRFC CLINTON HOLDINGS, LLC, a Delaware
limited liability company, having its chief executive offices and principal places of business at
NorthStar Reality Finance, 399 Park Avenue, 18th floor, New York, New York 10022 Attn: Ronald J. Lieberman, Esq., Executive
Vice President and General Counsel  (the “Debtor”) and WEBSTER BANK, NATIONAL ASSOCIATION, a national
association (the “Bank”), Webster Plaza, 145 Bank Street, Waterbury, Connecticut 06702.

 

I.             Security
Interest, Obligations Secured.

 

(a)          Grant Of Security Interest.
 Debtor hereby grants to the Bank a security interest in all of the Debtor's present and future right, title and interest in
and to any and all of its assets and personal property (the “Collateral”), including without limitation, the following
property, whether now existing or hereafter created:

 

(i)          All Inventory and Goods (as such capitalized
terms are defined in the Uniform Commercial Code as in effect in Connecticut, as may be amended from time to time) of the Debtor,
whether now owned or hereafter acquired, including but not limited to, all goods, merchandise, raw materials, work in process,
finished goods and products and all other tangible personal property whether now owned or hereafter acquired by the Debtor and
held for sale or lease or furnished or to be furnished under contracts of service or used or consumed in the Debtor's business;

 

(ii)          All Accounts and all Supporting Obligations
related thereto (as such capitalized terms are defined in the Uniform Commercial Code as in effect in Connecticut, as may be amended
from time to time) of the Debtor, whether now existing or hereafter arising, including without limitation, all accounts receivable,
health-care-insurance receivables, notes, drafts, acceptances or other forms of obligations and receivables, whether now or hereafter
received by or belonging to the Debtor, for inventory sold or for services rendered, and all rights to payments under contracts,
whether or not earned by performance, together with all guarantees and security therefor, all accounts arising or to arise therefrom,
and all proceeds thereof (whether cash proceeds or otherwise), and including, without limitation, all rights of the Debtor in and
to the goods represented thereby including reclaimed, returned or repossessed goods, and all rights the Debtor may have or acquire
for securing or enforcing the foregoing, including without limitation, the rights to reserves, deposits, income tax refunds, choses
in action, judgments, insurance proceeds and all other rights of the Debtor to receive payments;

 

    	 

    	 

    

(iii)         All Instruments, including Promissory
Notes, Money, Documents and Chattel Paper, whether tangible or electronic, and all Supporting Obligations related thereto (as such
capitalized terms are defined in the Uniform Commercial Code as in effect in Connecticut, as may be amended from time to time)
of the Debtor, whether now existing or hereafter arising, including without limitation, all documents of title, policies and certificates
of insurance, securities, deposits, money, cash or other property owned by the Debtor or in which it has an interest, including
but not limited to, all property allocable to unshipped orders and merchandise returned by or reclaimed by or repossessed from
customers, all rights of stoppage in transit, replevin, repossession and reclamation and all other rights of an unpaid vendor or
lienor;

 

(iv)        All Deposit Accounts, Letter of Credit
Rights and all Supporting Obligations related thereto (as such capitalized terms are defined in the Uniform Commercial Code as
in effect in Connecticut, as may be amended from time to time) of the Debtor, whether now existing or hereafter arising, together
with the rights to withdraw from said Deposit Accounts and make deposits to the same and the right to draw under Letters of Credit;

 

(v)         All Equipment, Farm Products and Fixtures
(as such capitalized terms are defined in the Uniform Commercial Code as in effect in Connecticut, as may be amended from time
to time) of the Debtor, whether now owned or hereafter acquired, including without limitation, all machinery and personal property
(whether tangible or intangible) and all additions and accessions thereto and substitutions and replacements therefor, including
without limitation, all tools, dies, molds and similar assets, furniture and furnishings;

 

(vi)        All General Intangibles, including Payment
Intangibles and Software, and all Supporting Obligations related thereto (as such capitalized terms are defined in the Uniform
Commercial Code as in effect in Connecticut, as may be amended from time to time) of Debtor, whether now existing or hereafter
arising or acquired, including but not limited to, rights to reserves, deposits, tax refunds, choses in action, judgments, patents,
patent applications, trademarks, trademark registrations and applications therefor, trade names, trade processes, trade secrets,
copyrights, copyright registrations and applications therefor, licenses, franchises and corporate name and goodwill of Debtor's
business, all insurance policies, including without limitation, business interruption policies, and cash values and proceeds thereof
and all rights of the Debtor to receive payment;

 

(vii)       All Investment Property, including Certificated
Securities, Uncertificated Securities, and Security Entitlements, and all Supporting Obligations related thereto (as such capitalized
terms are defined in the Uniform Commercial Code as adopted in Connecticut, as may be amended from time to time) of whatever type
or nature, including, without limitation, all security accounts, all commodity contracts, all commodity accounts and all financial
assets of every type and nature and all rights thereto or therein and all financial accounts of every type and nature and all rights

 

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thereto or therein, and all proceeds and products thereof, including
without limitation, all insurance proceeds and fidelity bond proceeds related thereto;

 

(viii)      To the full extent permitted by law,
all licenses, permits and agreements of any kind or nature, to the extent the same or the proceeds thereof may be assignable by
the Borrower or to the extent the Borrower may grant a security interest therein or in the proceeds thereof, pursuant to which
(a) the Debtor operates or has authority to operate property (whether tangible or intangible); (b) the Debtor possesses,
uses or has authority to possess or use property (whether tangible or intangible) of others; or (c) others possess, use or
have authority to possess or use property (whether tangible or intangible) of the Debtor; and

 

(ix)         Proceeds (as such capitalized term is
defined in the Uniform Commercial Code as adopted in Connecticut, as may be amended from time to time) including without limitation,
insurance proceeds, including, without limitation, the proceeds of business interruption insurance, and condemnation awards and
products of all of the foregoing property described in (i) through (viii) hereof, whether such Proceeds take the form of Accounts,
Inventory, Instruments, Documents, Chattel Paper, Investment Property, General Intangibles, Equipment, Farm Products or Fixtures,
or otherwise.

 

(b)          Obligations Secured. The grant
of the security interest herein by the Debtor to the Bank shall secure the payment and performance of all liabilities and obligations
now or hereafter owing from the Debtor to the Bank of whatever kind or nature, whether or not currently contemplated at the time
of this Security Agreement, whether such obligations be direct or indirect, absolute or contingent or due or to become due, including
without limitation, all obligations of the Debtor, actual or contingent, in respect of contracts with the Bank relating to interest
rate hedge products or letters of credit or banker's acceptances issued by the Bank for the account of or guarantied by the Debtor
and all obligations of any partnership or joint venture as to which Debtor is or may become personally liable and all overdrafts
in any account of the Debtor at the Bank (the “Obligations”, which term shall include all accrued interest and
all costs and expenses, including reasonable attorney's fees, costs and expenses relating to the appraisal and/or valuation of
assets and all costs and expenses incurred or paid by the Bank in exercising, preserving, defending, collecting, administering,
enforcing or protecting any of its rights under the Obligations or hereunder or with respect to the Collateral or in any litigation
arising out of the transactions evidenced by the Obligations). The Bank shall have the unrestricted right from time to time to
apply (or to change any application already made) the proceeds of any of the Collateral to any Obligations, as the Bank, in its
sole discretion, may determine.

 

(c)          The Debtor hereby acknowledges and agrees
with the Bank as follows:

 

(i)           The Collateral shall also include, without
limitation, the following categories of assets as defined in Article 9 of the Uniform Commercial Code as adopted in Connecticut
from time to time (“Article 9”): goods (including inventory, equipment and

 

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any accessions thereto), instruments (including promissory notes),
documents, accounts (including health-care-insurance receivables to the extent permitted by applicable law), chattel paper (whether
tangible or electronic), deposit accounts, letter-of-credit rights (whether or not the letter of credit is evidenced by a writing),
commercial tort claims, securities and all other investment property, general intangibles (including payment intangibles and software),
supporting obligations and any and all proceeds of any thereof, wherever located, whether now owned and hereafter acquired. If
the Debtor shall at any time, acquire a commercial tort claim, as defined in Article 9, the Debtor shall immediately notify the
Bank in a writing signed by the Debtor of the brief details thereof and grant to the Bank in such writing a security interest therein
and in the proceeds thereof, all upon the terms of this Security Agreement, with such writing to be in form and substance satisfactory
to the Bank.

 

(ii)          The Debtor hereby authorizes the Bank
at any time and from time to time, pursuant to the provisions of this Security Agreement, to file financing statements, continuation
statements and amendments thereto that describe the Collateral as “all assets of the Debtor” or words of similar effect
and which contain any other information required by Part 5 of Article 9 for the sufficiency or filing office acceptance of any
financing statement, continuation statement or amendment, including whether Debtor is an organization, the type of organization
and any organization identification number issued to the Debtor. The Debtor shall furnish any such information to the Bank promptly
upon request. Any such financing statements, continuation statements or amendments may be signed by the Bank on behalf of the Debtor
(or any of them), as provided in this Security Agreement, and may be filed at any time in any jurisdiction.

 

(iii)         The Debtor shall at any time and
from time to time, take such steps as the Bank may reasonably request for the Bank (a) to obtain an acknowledgement, in form and
substance satisfactory to the Bank, of any bailee having possession of any of the Collateral that the bailee holds such Collateral
for the Bank, (b) to obtain “control” of any investment property, deposit accounts, letter-of-credit rights or electronic
chattel paper (as such terms are defined in Article 9 with corresponding provisions in §§ 9-104, 9-105, 9-106 and 9-107
relating to what constitutes “control” for such items of Collateral), with any agreements establishing control to be
in form and substance satisfactory to the Bank, and (c) otherwise to insure the continued perfection and priority of the Bank’s
security interest in any of the Collateral and of the preservation of its rights therein, whether in anticipation and following
the effectiveness of Article 9 in any jurisdiction.

(iv)        Nothing contained herein shall be construed
to narrow the scope of the security interest granted hereby in any of the Collateral or the perfection or priority thereof or to
impair or otherwise limit any of the rights, powers, privileges or remedies of the Bank hereunder except as (and then only to the
extent) specifically mandated by Article 9 to the extent then applicable.

 

(v)         The Debtor acknowledges and agrees that
this security agreement grants, and is intended to grant, a security interest in all assets of the Debtor and that, in

 

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addition
to its other legal rights, the Bank is expressly authorized to authenticate and to file or transmit a financing statement or other
record to perfect such security interest which describes the Collateral as “all personal property” or “all assets”
of the Debtor. The Debtor represents and warrants that it shall not file a correction
statement relating to the collateral or to any financing statement or fixture filing filed by the Bank without the Bank’s
prior written consent. If the Debtor is a corporation, limited liability company, limited partnership or other Registered Organization
(as that term is defined in Article 9) the Debtor shall, at its expense, furnish to Bank a certified copy of Debtor's organization
documents verifying its correct legal name or, at Bank’s election, shall permit the Bank to obtain such certified copy at
Debtor's expense. From time to time, at Bank’s election, the Bank may obtain a certified copy of Debtor's organization documents
and a search of such Uniform Commercial Code filing offices as it shall deem appropriate, at Debtor's expense, to verify Debtor's
compliance with the terms of this Security Agreement.

 

(d)          Security Interest and License re
Intangibles. The Debtor hereby grants to the Bank a security interest in and, to the extent the same are assignable without
the consent or approval of any other party thereto or any governmental entity, a non-exclusive license and right to use any and
all patents, copyrights, tradenames, trademarks and all applications therefor, and licenses to any patent, copyright, tradename
or trademark that the Debtor now owns, has the right to use or may hereafter own or acquire the right to use. The Bank's security
interest and non-exclusive license, as set forth in this subparagraph, shall specifically include all rights of the Debtor which
may be necessary in order for the Bank to exercise or get the full benefit and value from the security interest set forth in this
Security Agreement.

 

(e)          Agreement
Regarding Cash Proceeds of Collateral in the Possession of the Secured Party. The Bank may retain money or funds received as
proceeds from the Collateral as additional collateral, which shall become part of the “Collateral” under this Security
Agreement. The Bank shall not be required to apply such proceeds to the secured obligations or to remit them to the Debtor or to
any other party until the full payment or performance by the Debtor of all Obligations and the termination of this Security Agreement.

 

II.           Representations
and Warranties of Debtor

 

The Debtor hereby represents and warrants that:

 

(a)          The
exact legal name of the Debtor is NRFC CLINTON HOLDINGS, LLC. Debtor is a limited liability company, duly organized
and validly existing under the laws of the State of Delaware. Debtor has filed in the Office of the Connecticut Secretary of State,
State of Connecticut and in all locations required under the laws of the State of Delaware . Debtor is qualified to do business
in every state in which the nature of its business conducted or the character of its property owned in such state would require
such qualification.

 

(b)          Debtor has the power to execute, deliver
and perform this Security

 

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Agreement, to borrow from the Bank. The execution, delivery and
performance of this Security Agreement and any notes, guaranties or other documents, instruments or agreements evidencing Debtor's
obligations to the Bank have been duly authorized and will not violate the Debtor's certificate of incorporation, by-laws, operating
agreement, partnership agreement (as applicable) or, to the Debtor’s knowledge, any law, regulation or court order, and will
not result in a default under any agreement or indenture to which the Debtor is a party.

 

(c)          Debtor has furnished to the Bank such
tax returns, financial statements, including balance sheets and income statements showing profit (or loss) and other information
about the Debtor's financial condition as the Bank shall have requested. These tax returns, financial statements and other information
fairly present the financial condition of the Debtor for the periods then ended, reflect all known liabilities, direct or contingent,
and, if financial statements, have been prepared in accordance with generally accepted accounting principles applied on a consistent
basis. There has been no material adverse change in the assets, liabilities, financial condition or business of Debtor since the
date of any financial statements, tax returns or other information delivered to the Bank before or after the date of this Security
Agreement.

 

(d)          Debtor has good and marketable title
to the property and assets, which are reflected on its financial statements, tax returns or other information. All of the Collateral
is owned by the Debtor free and clear of all liens, pledges, security interests and mortgages, except for liens, pledges, security
interests or mortgages in favor of the Bank or liens, pledges, security interests or mortgages permitted under the Commercial Loan
Agreement of even date herewith between the Debtor and the Bank previously disclosed to the Bank in writing. No effective financing
statement covering the Collateral or any proceeds thereof is on file in any public office except those disclosed in writing to
the Bank.

 

(e)          There is no suit or proceeding at law
or in equity affecting the Debtor or any of its properties which, if adversely determined, would materially impair the rights of
the Debtor to carry on its business substantially as it is now being conducted or would have a materially adverse effect upon the
financial condition of the Debtor. The Debtor is not a party to any document, agreement or instrument, and is not subject to any
charge, order or other restriction, materially and adversely affecting its business, properties, assets, operations or condition,
financial or otherwise, except as previously disclosed to the Bank in writing.

 

(f)           Debtor has filed all federal, state and
local tax returns and other reports it is required by law to file and has paid all taxes and other charges that are due and payable.

 

(g)          Debtor is not in default in the performance,
observance or fulfillment of any of the obligations, covenants or conditions contained in any document, agreement or instrument
to which Debtor is a party, except for minor defaults in purchase or sale orders or other agreements which neither individually
nor in the aggregate have a

 

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materially adverse effect on the Debtor.

 

(h)          Debtor has not, during the preceding
five (5) years, changed its name, been a party to a merger, or used any other corporate or fictitious name except as previously
described to the Bank in writing.

 

(i)           The place where Debtor keeps its records
concerning the Collateral, the Debtor's principal place of business and the Debtor's chief executive office is the location set
forth at the beginning of this Security Agreement. The Collateral is now and will continue to be kept at the location set forth
at the beginning of this Security Agreement and at no other locations until such time as the written consent of the Bank to a change
in location is received.

 

(j)           The Collateral is or may become attached
to real estate known as 89-91 East Main Street, Clinton, Connecticut and a description of said real estate may be found in Volume
____ at Page _____ of the Clinton Land Records and the record owner is the Debtor.

 

III.          Covenants of Debtor

 

The Debtor hereby agrees and covenants that:

 

(a)          Debtor will keep the Collateral free
from all liens, security interests and encumbrances except for the security interest granted herein or those specifically permitted
under the Commercial Loan Agreement of even date herewith between the Debtor and the Bank and will defend the Collateral against
all claims and demands of all persons at any time claiming any interest therein. The Debtor will not sell or otherwise transfer
the Collateral or any interest therein, except for the sale and replacement of inventory and equipment in the ordinary course of
business as presently conducted. The Debtor acknowledges and agrees that any security interest, sale or transfer of Collateral
without the authorization of Bank will violate the rights of the Bank and the Bank may note this fact on any financing statement,
fixture filing or other record filed by the Bank. In the event that any other security interest or lien attaches to the Collateral,
other than the security interest to the Bank, Debtor hereby grants to Bank a power of attorney to, in the name of the Debtor, request
and to enforce any right of Debtor to obtain, accountings and information from such other secured party or lienor relating to the
obligations secured and collateral securing such security interest or lien, which power, being coupled with an interest, shall
not be revocable by Debtor. Debtor agrees to pay or reimburse Bank upon demand for any reasonable charges resulting from such requests
for information. From time to time, at Bank’s election, the Bank may obtain search of such Uniform Commercial Code filing
offices as it shall deem appropriate, at Debtor’s expense, to verify Debtor’s compliance with the terms of this Security
Agreement.

 

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(b)          Debtor will preserve and keep in force
its existence in the state of organization specified in subsection II.(a) above and will promptly pay all lawful taxes and assessments,
subject, however, to Debtor’s right to contest the same, provided that the Bank’s security interest in the Collateral
shall not be impaired, provided that in the event a lien is placed upon any of the Collateral, the Debtor shall within 10 days
post a bond (i) in favor of the Bank in an amount equal to the lien and in form satisfactory to the Bank or (i) in favor of the
lienor that will release any such lien on the Collateral with respect to any such contest if requested by the Bank. Unless the
Bank consents in writing, the Debtor will not merge with any other entity or change its state of organization or change its form
of organization. Debtor will not change its name without giving the Bank thirty (30) days prior written notice in which it sets
forth its new name and the date on which the new name shall first be used. Debtor shall maintain its principal place of business
and chief executive office at the address set forth in the beginning of this Security Agreement. Debtor shall, at all times, keep
the Bank accurately informed in writing of each location where the Debtor's assets are kept and of each of its places of business
and Debtor shall not remove any records to another state or change the location or open or close, move or change any existing or
new place of business without giving the Bank at least thirty (30) days' prior written notice thereof. Debtor shall, at its expense,
furnish to Bank a certified copy of Debtor’s organization documents verifying its correct legal name or, at Bank’s
election, shall permit the Bank to obtain such certified copy at Debtor’s expense. From time to time, at Bank’s election,
the Bank may obtain a certified copy of Debtor’s organization documents as it shall deem appropriate, at Debtor’s expense,
to verify Debtor’s compliance with the terms of this Security Agreement.

 

(c)          Debtor will, at its expense, furnish
to the Bank, upon Bank's demand, such further information, will execute and deliver to the Bank such financing statements and other
agreements, instruments or documents, and will do all such acts as the Bank may, at any time or from time to time, reasonably request,
or as may be necessary or appropriate to establish and maintain a valid and enforceable first security interest of the Bank in
the Collateral. Notwithstanding the foregoing, the Bank is hereby authorized to authenticate and to file (without the Debtor's
signature) financing statements, fixture filings or similar records naming the Debtor or any other party being or becoming bound
by this security agreement (whether as a new debtor, a transferee of Collateral subject to Bank’s security interest or becoming
a party to this Security Agreement) as the debtor and indicating the Collateral. Debtor shall not file a correction statement relating
to the Collateral or to any financing statement or fixture filing filed by the Bank without the Bank’s prior written consent.

 

(d)          Debtor will keep the Collateral at all
times insured against risks of loss or damage by fire (including so-called extended coverage), flood, theft and such other casualties
as set forth in the Commercial Loan Agreement by and between the Debtor and the Bank of even date herewith as the same may be amended
or modified from time to time (the “Loan Agreement”).

 

(e)          Debtor will notify the Bank in writing
promptly upon its learning of any

 

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event, condition, loss, damage, litigation, administrative proceeding
or other circumstance which may materially and adversely affect the Collateral or the Bank's security interest in the Collateral.
In the event that the Bank, in its sole discretion, shall determine that there has been any loss, damage or material diminution
in the value of the Collateral, the Debtor will, whenever the Bank requests, pay to the Bank such amount as the Bank, in its sole
discretion, shall have determined represents such loss, damage or material diminution in value (any such payment not to affect
the Bank's security interest in such Collateral), less any amounts actually received by the Bank in respect of casualty proceeds
or condemnation awards in accordance with the Commercial Loan Agreement.

 

(f)           Debtor will keep the Collateral in good
order and repair, will not waste or destroy the Collateral or any part thereof and will not use the Collateral in violation of
any applicable statute, ordinance or policy of insurance thereon. The Bank may examine and inspect the Collateral, the Debtor's
books and records and any documents or instruments relating to the Collateral at any reasonable time or times wherever located.

 

(g)          Debtor will furnish to the Bank periodic
financial statements as required by the Loan Agreement. The Debtor will also, at such intervals as the Bank may request, notify
the Bank, upon a form satisfactory to the Bank, of all Collateral which has come into existence since the date hereof or the date
of the last such notification.

 

(h)          At its option, but without obligation
to do so, the Bank may discharge taxes, liens, security interests or other encumbrances at any time levied or placed on the Collateral
in violation of the terms and conditions of the Loan Documents; may place and pay for insurance on the Collateral if the Debtor
fails to comply with the requirements of the Commercial Loan Agreement with respect thereto; may order and pay for the repair,
maintenance and preservation of the Collateral; and may pay any fees for filing or recording such instruments or documents as may
be necessary or desirable to perfect the security interest granted herein. The Debtor agrees to reimburse the Bank on demand for
any reasonable payment made or any reasonable expense incurred by the Bank pursuant to the foregoing authorization, and all such
payments and expenses shall constitute part of the principal amount of Obligations hereby secured and shall bear interest at the
highest rate payable on the Obligations of the Debtor to the Bank.

 

(i)           If any part of the Collateral is or
becomes a fixture, the Debtor will, on demand, furnish the Bank with a disclaimer or release signed by all persons having an interest
in the real estate or any interest in the Collateral, which is recorded or filed, or which may be, prior to the Bank's interest.

 

(j)           All representations now or hereafter
made by the Debtor to the Bank, whether in this Security Agreement or in any supporting or supplemental documentation or statement
are, will be, and shall continue to be true and correct in all material respects.

 

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(l)           In the event that Collateral is in the
possession of a bailee or other third party, Debtor shall, at Bank’s election (and in form and content satisfactory to the
Bank), either: (i) cause a document of title, in form and content satisfactory to the Bank, to be issued in the name of the
Bank or (ii) obtain the written acknowledgement of the bailee or third party that it is holding such Collateral for the benefit
of the Bank.

 

(m)          With respect to any Collateral which
is subject to a certificate of title, the Debtor shall: (i) cause a certificate of title to be issued perfecting the security
interest of the Bank, unless such collateral is inventory held for sale in the ordinary course of Debtor’s business by the
Debtor and until such collateral ceases to be such inventory; and (ii) not cause or permit a certificate of title to be issued
in another state which does not list the Bank’s security interest.

 

IV.          Events of Default

 

The occurrence of any one or more of the following
events shall constitute an “Event of Default” under this Security Agreement:

 

(a)          The failure of the Debtor to pay before
the same becomes delinquent in accordance with the terms thereof, whether by acceleration or otherwise, any part of the Obligations;

 

(b)          The failure of the Debtor, beyond any
grace or cure period therefor, to perform, keep or observe any other term, provision, condition, covenant, warranty or representation
contained in this Security Agreement or in the Commercial Loan Agreement of even date herewith between the Debtor and the Bank
or in any note or in any other document, instrument or agreement evidencing, governing or securing all or a portion of the Obligations,
in each case beyond any applicable grace or cure period therefor;

 

(c)          Any warranty, representation or statement
made or furnished to the Bank hereunder by or on behalf of the Debtor fails at any time to be true and correct as of the date made
in any material respect; or

 

(d)          The (i) occurrence of any material uninsured
loss, theft, damage or destruction of, or (ii) issuance or making of any levy, seizure, attachment, execution or similar process
on, any Collateral or a material portion of Debtor's property or assets.

  

V.           Remedies

 

Upon and after the occurrence of an Event of
Default or, if the Obligation is a demand Obligation, then at any time after demand, all of the Obligations may, at the option
of the Bank and without further demand (except for the necessity of demand for

 

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any demand Obligation), notice or legal process of any kind, be
declared, and immediately shall become due and payable. The Bank shall have the following additional rights and remedies (which
the Debtor, and, by becoming bound by the Obligations or this Security Agreement, all other Obligors, Guarantors and any New Debtors
accept and agree upon):

 

(a)          All of the rights and remedies of a secured
party under the Uniform Commercial Code or any other applicable law or at equity, all of which rights and remedies shall be cumulative
and non-exclusive, to the extent permitted by law, in addition to any other rights and remedies contained in this Security Agreement
or in any document, instrument or agreement evidencing, governing or securing the Obligations.

 

(b)          To the extent permitted by applicable
law, the right to (i) take possession of the Collateral, without resort to legal process and without prior notice to Debtor, and
for that purpose Debtor hereby irrevocably appoints the Bank its attorney-in-fact to enter upon any premises on which the Collateral
or any part thereof may be situated and remove the Collateral therefrom, (ii) require the Debtor to assemble the Collateral and
make it available to Bank in a place to be designated by the Bank, in its sole discretion, or (iii) the right to locate, disable
or to take possession of the Collateral by electronic, digital, magnetic or wireless optical electromagnetic or similar means after
giving any notices required under applicable law. The Debtor shall make available to the Bank all premises, locations and facilities
necessary for the Bank's taking possession of the Collateral or for removing or putting the Collateral in saleable form.

 

(c)          The
right to sell or otherwise dispose of all or any part of the Collateral by public or private sale or sales. Unless the Collateral
is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market, the Bank will
give the Debtor at least five (5) days' prior written notice of the time and place of any public sale thereof or of the time after
which any private sale or any other intended disposition (which may include, without limitation, a public sale or lease of all
or part of the Collateral) is to be made. The Debtor agrees that five (5) days is a reasonable time for such notice. The Bank,
its employees, attorneys and agents may bid and become purchasers at any such sale, if public, and may purchase at any private
sale any of the Collateral that is of a type customarily sold on a recognized market or which is subject to widely distributed
standard price quotations. A public or private sale of the Collateral or any portion thereof may be accomplished by digital or
electronic means, such as through use of the internet or other telecommunications means. At any public or private sale the Collateral
shall be sold “as is” with no warranties by the Bank, whether express or implied. Any public or private sale
shall be free from any right of redemption, which the Debtor waives and releases and which Debtor and any Guarantors agree that
they will confirm in a separate written agreement after any default. If there is a deficiency after such sale and the application
of the net proceeds from such sale, the Debtor shall be responsible for the same, with interest.

 

(d)          The right (and Debtor irrevocably appoints
the Bank as attorney-in-fact for the Debtor for this purpose, such appointment being coupled with an interest), without

 

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prior notice to Debtor and without resort to legal process, to notify
the persons liable for payment of all accounts, chattel paper, instruments and general intangibles (as defined in the Uniform Commercial
Code) at any time and direct such persons to make payments directly to the Bank, and to perform all acts the Debtor could take
to collect on such accounts chattel paper, instruments and general intangibles, including, but without limitation, the right to
notify postal authorities to change the address for delivery, open mail, endorse checks, bring collection suits, and realize upon
Collateral securing such accounts chattel paper, instruments and general intangibles. At the Bank's request, all bills and statements
sent by the Debtor to the persons liable for payments of such accounts chattel paper, instruments and general intangibles shall
state that they have been assigned to, and are solely payable to, the Bank, and Debtor shall direct persons liable for the payment
of such accounts chattel paper, instruments and general intangibles to pay directly to the Bank any sums due or to become due on
account thereof.

 

(e)          The undersigned hereby gives the Bank
a lien and right of set off for all of the undersigned's liabilities and obligations upon and against all the deposits, credits,
collateral and property of the undersigned, now or hereafter in the possession, custody, safekeeping or control of the Bank or
any entity under the control of Webster Financial Corporation or in transit to any of them. At any time, without demand or notice,
Bank may set off the same or any part thereof and apply the same to any liability or obligation of the undersigned to the Bank
or any affiliate of the Bank or Webster Financial Corporation, even though unmatured.

 

(f)          The Bank shall not be required to apply
non-cash proceeds of any disposition of Collateral until cash is actually received by the Bank.

 

VI.          General

 

(a)          No waiver by the Bank of any failure
to pay or perform shall be effective unless in writing nor operate as a waiver of any other failure to pay or perform or of the
same failure to pay or perform on a future occasion, nor shall the failure or delay of the Bank to exercise, or the partial exercise
of, any right, power or privilege provided for hereunder in any circumstances preclude the full exercise of such right, power or
privilege in the same or similar circumstances in the future or the exercise of any other right or remedy.

 

(b)          This Security Agreement is intended as
the final, complete and exclusive statement of the provisions contained in this Security Agreement. No amendment, modification,
termination or waiver of any provision of this Security Agreement or consent to any departure by the Debtor therefrom shall, in
any event, be effective unless the same shall be in writing and signed by the Bank. Any waiver of, or consent to any departure
from, any provision of this Security Agreement shall be effective only in the specific instance of and for the specific purpose
for which it is given, and shall not be deemed to extend to similar situations or to the same situation at a subsequent time. No
notice to or demand upon the Debtor shall in any case entitle Debtor to any other or

 

    	12

    	 

    

further notice or demand in similar or other circumstances.

 

(c)          All rights of the Bank hereunder shall
inure to the benefit of its successors and assigns, and all obligations of the Debtor shall bind the heirs, legal representatives,
successors and assigns of Debtor.

 

(d)          Debtor will pay to the Bank on demand
any and all costs and expenses, including attorney's fees, costs and expenses relating to the appraisal and/or valuation of assets
and all costs and expenses incurred or paid by the Bank in exercising, collecting, establishing, defending, preserving, protecting,
administering or enforcing any of its rights in the Collateral or under any of the Obligations.

 

(e)          This Security Agreement and the security
interest created hereby shall be governed by and construed in accordance with the laws of the State of Connecticut.

 

(f)           This Security Agreement may be executed
in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered
shall be deemed an original and all of which when taken together shall constitute but one and the same instrument; and

 

(g)          The Bank and the Debtor hereby agree
to the conduct of transactions by electronic means and that each hereby agrees that each will accept “electronic signatures”
(as defined in the Connecticut Uniform Electronic Transactions Act – Chapter 15 of the Connecticut General Statutes) on all
notices, certificates and communications as original signatures and entitled to full recognition as original signatures.

 

(h)          Whenever possible, each provision of
this Security Agreement shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision
of this Security Agreement shall to any extent be held invalid or unenforceable, then only such provision shall be deemed ineffective
and the remainder of this Security Agreement shall not be affected.

 

(i)           Debtor hereby acknowledges receipt of
a fully completed copy of this Security Agreement.

 

(j)           If not otherwise defined herein, the
capitalized terms contained herein and not otherwise defined herein and which are defined in Article 9 shall have the meanings
ascribed to them in Article 9.

 

    	13

    	 

    

VII.         Waivers

 

(a)          Debtor (i) acknowledges that this
Security Agreement is part of a commercial transaction and (ii) to the extent permitted by any state or federal law, waives the
right it may have to prior notice of and a hearing on the right of any holder of any and all loans and other transactions secured
hereby to any remedy or combination of remedies that enables said holder, by way of attachment, foreign attachment, garnishment
or replevin, to deprive Debtor of any of its property, at any time, prior to final judgment in any litigation instituted in connection
with this Security Agreement. 

 

(b)          The Bank and Debtor irrevocably waive
all right to a trial by jury in any proceeding hereafter instituted by or against the Bank or the Debtor in respect of this Security
Agreement, any document, instrument or agreement evidencing, governing or securing the Obligations hereby secured or the Collateral.

 

(c)          The Debtor waives notice of non-payment,
demand, presentment, protest or notice of protest of the Collateral and all other notices, consents to any renewals or extensions
of time of payment thereof and generally waives any and all suretyship defenses and defenses in the nature thereof. 

 

 

 

 

THE BALANCE OF THIS PAGE
IS INTENTIONALLY LEFT BLANK

SIGNATURE PAGES TO FOLLOW

 

 

 

 

 

 

 

    	14

    	 

    

IN WITNESS WHEREOF, Debtor has duly authorized
and executed this Security Agreement as a sealed agreement this 3rd day of June, 2013.

 

 
	 	 	NRFC CLINTON HOLDINGS, LLC,
	 	 	 a Delaware limited liability company
	 	 	 	 	 	 	 	 
	 	 	By:	NORTHSTAR REALTY HEALTHCARE,
LLC,
	 	 	 	a Delaware limited liability company
	 	 	 	 	 	 	 	 
	 	 	 	By:	NRFC HEALTHCARE HOLDING
	 	 	 	 	COMPANY, LLC,
	 	 	 	 	a Delaware limited liability company
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	NRFC SUB-REIT CORP.,
	 	 	 	 	 	a Maryland corporation
	 	 	 	 	 	 	 	 
	 	 	 	 	 	By:	/s/ Ronald J. Lieberman
	 	 	 	 	 	 	Executive Vice President &
	 	 	 	 	 	 	General Counsel 

 

 

 

[Signatures continued on next page]

 

    	Signature Page to Security Agreement

    	 

    

  
	 	 	WEBSTER BANK, NATIONAL ASSOCIATION
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	By:	/s/ Elizabeth B. Shelley
	 	 	 	 	Elizabeth B. Shelley
	 	 	 	 	Senior Vice President

 

 

 

 

    	Signature Page to Security AgreementExhibit 10.23

 

ENVIRONMENTAL INDEMNIFICATION AGREEMENT

 

 

ENVIRONMENTAL
INDEMNIFICATION AGREEMENT ("Agreement") dated this 3rd day of June, 2013, made by and among NRFC
CLINTON HOLDINGS, LLC (herein called "Borrower"), a Delaware limited liability company, having its chief executive
offices and principal places of business at NorthStar Realty Healthcare, LLC, 399 Park
Avenue, 18th Floor, New York, New York 10022, Attn: Ronald J. Lieberman, Esq., Executive Vice President and General
Counsel, PEREGRINE WAY OF CT, LLC, a New York limited liability Company, having its chief executive offices and principal
places of business at 217 Montgomery Street, Sixth Floor, Syracuse, NY 13202, Attention: Mark D. Farchione (herein called
“Guarantor”), (the Borrower and Guarantor are individually and collectively sometimes referred to herein either
as the “Indemnitor” or the “Indemnitors”) and WEBSTER BANK, NATIONAL ASSOCIATION,
a national association having an address at 145 Bank Street, Waterbury, Connecticut 06702 (the "Lender").

 

WITNESSETH:

 

WHEREAS,
the Borrower has requested Lender to loan to the Borrower the sum of up to SEVEN MILLION EIGHT HUNDRED SEVENTY FIVE THOUSAND and
xx/100 DOLLARS ($7,875,000.00) evidenced by Borrower's promissory note in said principal amount dated June 3, 2013 (the "Note").
The loan represented by the Note is referred to herein as the "Loan". The Note is governed by the terms of a Commercial
Loan Agreement of even date herewith by and among the Borrower, the Guarantor and the Lender (the “Loan Agreement”).
The Loan is secured by, among other things, an Open-End Mortgage Deed, Security Agreement and Assignment (the "Mortgage")
granting to Lender a first lien (subject to any “Permitted Encumbrances” as set forth in the Mortgage) on Borrower’s
interest in property situated at and known as 91 East Main Street, Clinton, Connecticut
(the "Property") together with the improvements now or hereafter placed thereon (the "Improvements");
and

 

WHEREAS, the Loan is to be used by Borrower
to finance its purchase of the Property and for general business purposes; and

 

WHEREAS, PEREGRINE WAY OF CT, LLC shall
be the sole tenant in the Property for the conduct of an assisted living facility as of the date hereof and PEREGRINE WAY OF
CT, LLC will benefit from the Loan and will be in possession of and will be operating the Property; and

 

 

WHEREAS, to induce Lender to make the Loan and
to accept the Note, Indemnitors have agreed to produce and deliver this Agreement to be executed by Indemnitor and to be binding
upon the Indemnitor and their successors and assigns; and

 

    	 

    	 

    

 

WHEREAS, Lender will not make the Loan to Borrower
and accept the Note and Mortgage unless this Agreement is executed by each of the Indemnitors and delivered to Lender;

 

NOW THEREFORE, in consideration of the Loan
to Borrower and the foregoing premises and in order to induce Lender to accept the Note and the Mortgage, and for other good and
valuable consideration, the receipt whereof is hereby acknowledged, each of the undersigned Indemnitors hereby covenants and agrees
with Lender for the benefit of Lender, its endorsees, participants, successors and assigns as follows:

 

1.          Definitions. Terms not otherwise
defined herein shall have the respective meanings ascribed to them in the Mortgage or Note.

 

2.          Guarantee. The Indemnitors
guarantee to Lender (a) the prompt payment, when due, of all Claims and Costs (as defined in paragraph 3.A of this Agreement)
and (b) the timely performance of all of the obligations guaranteed or undertaken by Indemnitor under this Agreement. Clauses
(a) and (b) of this paragraph 2 are hereinafter collectively referred to as the "Obligations". The Obligations
hereunder are in addition to, and in no way limit or restrict, the obligations undertaken by each of the undersigned pursuant the
Note, the Mortgage the Loan Agreement and/or the Guaranty, as applicable.

 

3.          Indemnity.

 

A.          Each Indemnitor unconditionally agrees to
indemnify and hold harmless Lender, its directors, officers, employees, agents, successors and assigns (herein the “Indemnified
Parties”) from and against any and all actual, out of pocket, losses, claims, damages, penalties, judgments, suits, proceedings,
liabilities, obligations, costs and expenses (including reasonable attorneys' fees, litigation and defense costs and court costs),
fines, injuries, penalties, response costs (including the cost of any required or necessary investigation, testing, monitoring,
repair, cleanup, detoxification, preparation of any closure or other required plans, or other removal, response or remedial action
at or relating to the Property and/or the Improvements) (collectively, the "Claims and Costs"), with respect to,
as a direct or indirect result of, or arising out of any of the following: (i) any regulatory requirement lawsuit (brought
or threatened), settlement, agreement, or requirement of any insurer of the Property and/or the Improvements or any portion thereof,
relating to the presence, management, disposal, release (or threatened release), escape, spillage, seepage, leakage, filtration
or clean-up of any Hazardous Materials (as hereinafter defined) at, on, from or under all or a portion of the Property and/or the
Improvements; or (ii) the migration of Hazardous Materials from or onto the Property to or from any property or area adjacent
to the Property; (iii) the past disposal or storage of Hazardous Materials or the transportation of Hazardous Materials on
the Property; (iv) the incorporation of any Hazardous Materials in the Property and/or the Improvements; (v) the
generation, manufacture, refining, production, processing, treatment, storage, handling, transportation, transfer, use

 

    	-2-

    	 

    

or disposal of any Hazardous
Materials in, on, under, about or from all or any part of the Property, (vi) the enforcement of this Agreement or the assertion
by Indemnitor of any defense to its obligations hereunder, whether any of such matters arise before or after foreclosure or other
taking of title to all or any portion of the Property by Lender or any affiliate of Lender; and (vii) the breach of any warranty
or representation set forth in section 4 below and in the Mortgages relating to hazardous materials or substances and the
environmental condition of or operations on the Property. Indemnitors shall have no liability for any claims or costs to the extent
caused solely and directly by the gross negligence or willful misconduct of any Indemnified Party.

 

B.          For the purpose of this Agreement, the term
"Hazardous Materials" shall mean and refer to any and all pollutants, contaminants, toxic or hazardous wastes
or any other substances that might pose a hazard to health or safety, the removal of which may be required or the generation, manufacture,
refining, production, processing, treatment, storage, handling, transportation, transfer, use, disposal, release, discharge, spillage,
seepage or filtration of which is or shall be restricted, prohibited or penalized by any “Environmental Law”, as defined
herein, and shall include, but not be limited to, (i) any substances defined as "hazardous substances", "pollutants",
"contaminants", "hazardous materials", "hazardous wastes", "hazardous or toxic substances",
"regulated substance" or related materials as now or hereafter defined in any law, ordinance, rule, regulation, order,
judgment, injunction or decree relating to pollution, hazardous substances or environmental protection (each referred to herein
as an “Environmental Law”), including, without limitation, the Comprehensive Environmental Response, Compensation
and Liability Act of 1980, 42 U.S.C. Section 9601, et seq. as amended by the Superfund Amendments and Reauthorization
Act of 1986, Public Law No. 99-499 ("SARA"); the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801 et
seq,; the Toxic Substances Control Act, 15 U.S.C. Section 2601 et seq.; the Resource Conservation and Recovery
Act, 42 U.S.C. Section 6901 et seq.; as amended by SARA; the Clean Water Act, 33 U.S.C. Section 125, et seq.;
Title 22a of the Connecticut General Statutes, as any such acts may be amended, modified or supplemented; (ii) those substances
listed or otherwise identified in the regulations adopted and publications issued, as may be amended, modified or supplemented,
pursuant to any of the above referenced statutes; (iii) any friable asbestos, airborne asbestos, or any substance or material
containing asbestos; (iv) urea formaldehyde foam insulation and (v) polychlorinated biphenyls.

 

4.          Warranties. Each Indemnitor warrants and
represents that, except as otherwise disclosed by Borrower to Lender in the Commercial Loan Agreement dated as of the same date
as this Agreement or in the Phase I Environmental Site Assessment Report, 89-91 East Main Street, Clinton, CT issued by HRP Associates,
Inc., dated March 29, 2013 and that certain Addendum to the Environmental Site Assessment (ESA) at 89-91 East Main Street, Clinton,
Connecticut, dated April 16, 2013, from HRP Associates, Inc. and delivered to the Lender (herein collectively the “Environmental
Report”), to the best of each Indemnitor’s knowledge, (a) the Indemnitor has no written notice of any investigation
with respect to, or is or has been in violation of, any Environmental Law, (b)  the Indemnitor has no written notice
of any proceedings

 

    	-3-

    	 

    

under, or any alleged violation of, any Environmental Law, (c) except
as set forth in the Environmental Report, the Indemnitor has no notice that the Property is nor, to the best of Indemnitor’s
knowledge and belief, has been the subject of any threatened, proposed or actual cleanup or other protective, removal or remedial
action relating to any Hazardous Materials, whether pursuant to any Environmental Law or otherwise, (d) except as set forth
in the Environmental Report, Indemnitor has no notice that there are Hazardous Materials in, on, under or about the Property, (e)
except as set forth in the Environmental Report, Indemnitor has no notice that any release, discharge, spillage, seepage or filtration
of any Hazardous Materials is occurring or, to the best of Indemnitor’s knowledge and belief, has occurred in, on, under,
about or from the Property, and (f) except as set forth in the Environmental Report, Indemnitor has no notice that the Property
is being used or has been used for any generation, manufacture, refining, production, processing, treatment, storage, handling,
transportation, transfer, use or disposal of any Hazardous Substances in, on, under, about or from the Property in violation of
any Environmental Law, except for Hazardous Materials used in the operation of the Property as an assisted living facility in customary
amounts and used in compliance with all applicable laws in all material respects, including, without limitation, any Environmental
Law. Indemnitor shall not knowingly permit or suffer the generation, manufacture, refining, production, processing, treatment,
storage, handling, transportation, transfer, use, disposal, release, discharge, spillage, seepage or filtration of any Hazardous
Materials, in, on, under, about or from all or any part of the Property in violation of any Environmental Law except substances
customarily used at facilities similar in character and use to the Property, and then only for so long as such materials are used
and stored (i) in customary amounts, and (ii) in compliance with all applicable law (including, without limitation, any
Environmental Law).

 

5.          Required Action of Indemnitors.
Indemnitors shall comply with all requirements of any insurer of the Property or any portion thereof, and all requirements, orders
or directives of any governmental authority, and timely perform or cause to be performed any investigation, testing, monitoring,
repair, cleanup, detoxification, preparation of any closure or other required plans, or other removal, response or remedial action
pursuant to any requirement of any Environmental Law relating to (i) the presence, management, disposal, release, or threatened
release, escapage, seepage or leakage of any Hazardous Materials at, on, from or under all or a portion of the Property from any
property or area adjacent to the Property in violation of any Environmental Law; or (ii) the transportation of Hazardous Materials
onto or from the Property in violation of any Environmental Law; or (iii) the incorporation of any Hazardous Materials onto
or from the Property in violation of any Environmental Law; or (iv) the incorporation of any Hazardous Materials in the Improvements.
Notwithstanding anything contained herein, with respect to any spill, Indemnitor shall not be in default hereunder so long as it
diligently and in good faith takes all actions required to defend itself from liability in connection therewith in accordance with
all Environmental Laws.

 

6.          Joint and Several Liability; Singular and Plural.

 

    	-4-

    	 

    

A.          The obligations, agreements, representations,
covenants and warranties of each Indemnitor (including, but not limited to, the Borrower and each other Indemnitor) hereunder shall
be joint and several.

 

B.          As used in this Agreement, the singular
shall include the plural as the context requires.

 

7.          Equitable Relief; Specific Performance.
Indemnitor acknowledges and agrees that it may be impossible to measure accurately the damages to Lender resulting from a breach
of Indemnitor's covenant to satisfy the Obligations and that such a breach will cause irreparable injury to Lender and that Lender
may not have an adequate remedy at law in respect of such breach and, as a consequence, agrees that such covenant shall be specifically
enforceable against Indemnitor and hereby waives and agrees not to assert any defense against an action for specific performance
of such covenant. This clause shall not prejudice Lender's rights to assert any and all claims for damages incurred as a result
of Indemnitor's default hereunder, and Lender may, before, during, or after any foreclosure of the Mortgage, hold Indemnitor liable
for any deficiency arising from Indemnitor's default hereunder and for all actual losses and damages sustained and reasonable out
of pocket expenses incurred by reason of Indemnitor failing to satisfy the Obligations.

 

8.          Waiver of Election of Remedies.
Each Indemnitor waives any right to require or compel Lender to (a) proceed against the Borrower or any other Indemnitor;
(b) proceed against or exhaust any security for the Obligations; or (c) pursue any other remedy in Lender's power whatsoever;
and failure of Lender to do any of the foregoing shall not exonerate, release or discharge Indemnitor from its absolute unconditional
and independent liabilities to Lender hereunder. Each Indemnitor hereby waives any and all legal requirements at law or in equity
against the Borrower or anyone else, in respect of the Loan or any “Loan Document” (as hereinafter defined) or resort
to or seek to realize upon the security held by Lender, as a condition precedent to bringing an action against Indemnitor upon
this Agreement.

 

9.          Right of Separate Actions; No Marshaling.

 

A.          Lender may bring and prosecute
a separate action against Indemnitor or Guarantor to enforce its liabilities hereunder, whether or not any action is brought against
the Borrower or whether or not any other person joined in any such action or actions. Nothing shall prohibit Lender from exercising
its rights against any Indemnitor, any Guarantor, the Borrower, any security for the Obligations, or any other person simultaneously,
jointly and/or severally. Each Indemnitor shall be bound by each and every ruling, order and judgment obtained by Lender against
Indemnitor in respect of the Obligations, whether or not such Indemnitor is a party to the action or proceeding in which such ruling,
order or judgment is issued or rendered.

 

B.          Indemnitor waives any right or claim of
right to cause a marshaling of Indemnitor's assets or to cause Lender to proceed against any of the security for the

 

    	-5-

    	 

    

Loan before proceeding under this Agreement against Indemnitor;
Indemnitor agrees that any payments required to be made hereunder shall become due on demand; Indemnitor expressly waives and relinquishes
all right and remedies accorded by applicable law to Indemnitors, borrowers or guarantors.

 

10.         Waiver of Rights of Subrogation.
Until the Obligations have been fully and unconditionally satisfied, each Indemnitor hereby irrevocably waives any rights to be
subrogated to the rights of Lender with respect to the Obligations. Until the Obligations have been fully and unconditionally satisfied,
each Indemnitor hereby agrees that it will not institute or take any action seeking reimbursement against the Borrower. No failure
on the part of Lender to exercise, and no delay in exercising, any right, remedy or power hereunder shall operate as a waiver thereof,
nor shall any single or partial exercise by Lender of any right, remedy or power hereunder preclude any other future exercise of
any other right, remedy or power.

 

11.         Waiver of Notice, Trial by Jury, Consent,
Prejudgment Remedies, Etc.

 

A.          The indemnity obligations under this Agreement
shall be construed as continuing, absolute and unconditional.

 

B.          Indemnitor hereby waives notice of acceptance
of this Agreement by Lender and of presentment, demand, protest, notice of protest and of dishonor and all other notices relative
to this Agreement of every kind and description now or hereafter provided by any agreement between Indemnitor and Lender or any
statute or rule of law, other than any notices required to be delivered hereunder.

 

C.          Each Indemnitor waives any and all notices
of the creation, renewal, extension or accrual of any of the Obligations or of the reliance by Lender upon this Agreement. Said
Obligations, and each of them, shall conclusively be deemed to have been created, contracted, or incurred in reliance upon this
Agreement and all dealings between Indemnitor and Lender shall likewise be conclusively presumed to have been made or consummated
in reliance upon this Agreement.

 

D.          Each Indemnitor hereby agrees that any terms,
covenants and provisions contained in the Note, the Mortgage or in any other Loan Documents may be altered, extended, modified,
waived, released or canceled by Lender, all without any further consent of Indemnitor, and Indemnitor agrees that this Agreement
and its liability hereunder shall be in no way affected, diminished or released by any such alteration, extension, modification,
release, waiver or cancellation.

 

E.          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 any of the Loan Documents; (ii) any sale, assignment or foreclosure of the Notes evidencing the Loan or the Mortgages or
any sale or transfer of all or part of the Property, (iii) any exculpatory provision in any of the Loan Documents limiting
Lender's recourse to property encumbered by the Mortgages or to any other security, or limiting

 

    	-6-

    	 

    

Lender's rights to a deficiency judgment against
Indemnitor, (iv) the accuracy or inaccuracy of the representations and warranties made by any Indemnitor under any of the
Loan Documents, (v) the release of any Indemnitor or any other person from performance or observance of any of the agreements,
covenants, terms or conditions contained in any of the Loan Documents by operation of law, or otherwise, (vi) the release
or substitution in whole or in part of any security for the Note, or (vii) Lender's failure to record the Mortgage or file
any UCC financing statements (or Lender's improper recording or filing of any thereof) or to otherwise perfect, protect, secure
or insure any security interest or lien given as security for the Note; and, in any such case, whether with or without notice to
any Indemnitor and with or without consideration.

 

F.          EACH INDEMNIFIED PARTY
AND EACH INDEMNITOR HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY PROCEEDING HEREAFTER INSTITUTED BY OR AGAINST
THE INDEMNITOR IN RESPECT OF THIS AGREEMENT.

 

G.          EACH INDEMNITOR HEREBY ACKNOWLEDGES THAT
THE TRANSACTION OF WHICH THIS AGREEMENT IS A PART IS A COMMERCIAL TRANSACTION, AND HEREBY WAIVES ITS RIGHT TO NOTICE AND HEARING
AND THE FURNISHING OF A BOND AND ANY OTHER RIGHTS INDEMNITOR MAY HAVE UNDER CHAPTER 903A OF THE CONNECTICUT GENERAL STATUTES, OR
AS OTHERWISE ALLOWED BY ANY STATE OR FEDERAL LAW WITH RESPECT TO ANY PREJUDGMENT REMEDY WHICH THE LENDER OR ITS SUCCESSORS OR ASSIGNS
MAY DESIRE TO USE.

 

H.          INDEMNITOR EACH HEREBY WAIVES ALL DEFENSES
BASED UPON SURETYSHIP.

 

12.         No Disclosure; Remedies Cumulative.
Indemnitor shall not be discharged, released or exonerated, in any way, from its absolute, unconditional and independent liabilities
hereunder, even though any rights or defenses which Indemnitor may have against the Borrower, Lender or others may be destroyed,
diminished or otherwise affected by:

 

A.          Any declaration by Lender of a default in
respect of any of the Obligations;

 

B.          The exercise by Lender of any rights or
remedies against the Borrower or any other person;

 

C.          The failure of Lender to exercise any rights
or remedies against the Borrower or any other person;

 

D.          The sale or enforcement of, or realization
upon (through judicial foreclosure, power of sale or any other means) any security for any of the Obligations, even though (i)
recourse may not thereafter be had against Indemnitor for any

 

    	-7-

    	 

    

deficiency, or (ii) Lender fails to pursue any such recourse which
might otherwise be available, whether by way of deficiency judgment following judicial foreclosure or otherwise;

 

E.          Any bankruptcy or reorganization of any
Indemnitor or the voluntary or involuntary participation by any Indemnitor in any settlement or composition for the benefit of
such Indemnitor's creditors either in liquidation, readjustment, receivership, bankruptcy or otherwise;

 

F.          The release of any other Indemnitor by agreement,
operation of law or otherwise; and no such action by Lender will release or limit the liability of Indemnitor to Lender, even if
the effect of that action is to deprive Indemnitor of the right to collect reimbursement from any other Indemnitor for any sums
paid to Lender. All rights and remedies of Lender hereunder or under the Note or Mortgage or any document executed in connection
herewith or therewith (the "Loan Documents") shall be cumulative and may be exercised singularly or concurrently.
The rights of Lender under this Agreement are in addition to and not in diminution of the rights of Lender under any other Loan
Documents.

 

13.         Survival. The indemnification
obligations incurred under the terms of this Agreement shall survive the repayment of Indemnitor's obligations under the Loan Documents
and Indemnitor shall not be released by any act or thing which might, but for this provision, be deemed a legal or equitable discharge
of a surety, or by reason of any waiver, extension, modification, forbearance or delay or other act or omission of Lender or its
failure to proceed promptly or otherwise, or by reason of any action taken or omitted or circumstances which may or might vary
the risk or affect the rights or remedies of Indemnitor or by reason of any further dealings between the Borrower and Lender, whether
relating to the Loan or otherwise, and Indemnitor hereby expressly waives and surrenders any defenses to their liability hereunder
based upon any of the foregoing acts, omission, things or agreements or waivers of Lender; it being the purpose and intent of the
parties hereto that the obligations of Indemnitor hereunder shall survive the repayment of Indemnitor's obligations under the Loan
Documents and are absolute and unconditional under any and all circumstances. The obligations
and liability of Indemnitor with respect to the matters set forth in this Agreement shall survive the foreclosure of the Mortgage,
any other sale of all or any part of the Property in extinguishment of the indebtedness secured by the Mortgage and any payment,
release or discharge of the Mortgage or the indebtedness secured thereby. Said obligations and liability shall run in favor of
and benefit Lender and any affiliate of Lender which may succeed to Lender's position under the Mortgage or which may acquire ownership
of all or any part of the Property.

 

14.         Notices. All notices, demands,
instructions and other communications required or permitted to be given or made upon either party hereto or any person shall be
in writing and shall be personally delivered or sent by registered or certified mail, postage prepaid, return receipt requested,
or telegram (with messenger delivery specified in the case of a telegram), by prepaid courier, or by prepaid overnight

 

    	-8-

    	 

    

nationwide commercial courier, and shall be deemed to be given for
purposes of this Agreement in regard to registered or certified mail, three (3) days after mailing, and in regard to personal delivery,
telegram, prepaid courier, or by prepaid overnight commercial courier, on the day that such writing is delivered. Unless otherwise
specified in a notice sent or delivered in accordance with the foregoing provisions of this Section, notice, demand, instructions
and other communications in writing shall be given to or made upon the following persons at the respective addresses set forth
above, with copies to the parties indicated below:

 

If to Borrower:

 

NorthStar Realty Healthcare, LLC

2 Bethesda Metro Center, Suite 1300

Bethesda, MD 20814

Attn: Doug Bath, Chief Investment Officer

 

with a copy to:

 

Arent Fox LLP

1717 K Street, N.W.

Washington, DC 20036-5342

Attn: Kimberly Wachen, Esq.

Fax: (202) 857-6395

 

If to Guarantor:

 

PEREGRINE WAY OF CT, LLC

217 Montgomery Street, Sixth Floor

Syracuse, New York 13201

Attn: Mark Farchione.

 

If to Lender:

 

Manager, Health Care Department

Webster Bank, National Association

CityPlace II, 185 Asylum Street

Hartford, Connecticut 06103

 

with a copy to

 

Webster Bank, National Association

145 Bank Street

Waterbury, Connecticut 06702

Attention General Counsel

 

or at such other address as any of the parties may from time to
time designate by written notice given as herein required. Rejection or refusal to accept or inability to deliver because of changed
addresses or because no notice of changed address was

 

    	-9-

    	 

    

given shall be deemed a receipt of such notice.

 

If any day on which any notice, demand, instruction
or other communication is given or sent by any party hereto is not a business day, such notice, demand, instruction or other communication
shall be deemed to have been given or sent on the business day next succeeding such non-business day.

 

15.         GOVERNING LAW; CONSENT TO JURISDICTION.
THIS AGREEMENT AND THE PARTIES HEREUNDER SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF CONNECTICUT (WITHOUT GIVING EFFECT TO CONNECTICUT'S PRINCIPLES OF CONFLICTS OF LAW). INDEMNITOR HEREBY
IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY CONNECTICUT STATE OR FEDERAL COURT SITTING IN THE STATE OF CONNECTICUT,
OVER ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, AND INDEMNITOR HEREBY AGREES AND CONSENTS THAT,
IN ADDITION TO ANY METHODS OF SERVICE OF PROCESS PROVIDED FOR UNDER APPLICABLE LAW, ALL SERVICE OF PROCESS IN ANY SUCH SUIT, ACTION
OR PROCEEDING IN ANY SUCH CONNECTICUT STATE OR FEDERAL COURT MAY BE MADE BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED,
DIRECTED TO INDEMNITOR AT ITS ADDRESS INDICATED AT THE BEGINNING OF THIS AGREEMENT, AND SERVICE SO MADE SHALL BE COMPLETED FIVE
(5) DAYS AFTER THE SAME SHALL HAVE BEEN SO MAILED.

 

16.         Successors and Assigns.
This Agreement shall be binding upon the Indemnitor and upon its and their respective successors and assigns and shall inure to
the benefit of Lender and its endorsees, participants, successors and assigns and any party who acquires the Property or the collateral
by foreclosure or otherwise. Without limiting the foregoing, the Lender may assign, transfer and set over to any other person,
in whole or in part, the rights, benefits and obligations of the Lender hereunder.

 

 

THE BALANCE OF THIS PAGE
IS INTENTIONALLY LEFT BLANK

SIGNATURE PAGES TO FOLLOW

 

    	-10-

    	 

    

IN WITNESS WHEREOF, this Environmental Indemnity
Agreement has been executed by the undersigned as of the date first above written.

 

	 	 	BORROWER:
	 	 	 
	 	 	NRFC CLINTON HOLDINGS, LLC,
	 	 	A Delaware limited liability company
	 	 	 	 	 	 	 	 
	 	 	By:	NORTHSTAR REALTY HEALTHCARE,
LLC,
	 	 	 	a Delaware limited liability company
	 	 	 	 	 	 	 	 
	 	 	 	By:	NRFC HEALTHCARE HOLDING
	 	 	 	 	COMPANY, LLC,
	 	 	 	 	a Delaware limited liability company
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	NRFC SUB-REIT CORP.,
	 	 	 	 	 	a Maryland corporation
	 	 	 	 	 	 	 	 
	 	 	 	 	 	By:	/s/ Ronald J. Lieberman
	 	 	 	 	 	 	Executive Vice President,
	 	 	 	 	 	 	General Counsel and
	 	 	 	 	 	 	Secretary

 

    	Signature page to Environmental Indemnification Agreement

    	 

    

 

GUARANTOR:

	 	 	 
	 	 	PEREGRINE WAY OF CT, LLC
	 	 	 	 
	 	 	By:	/s/ Mark D. Farchione             
	 	 	 	Name:Mark D. Farchione
	 	 	 	Vice-President
	 	 	 	 	 	 	 	 

 

    	Signature page to Environmental Indemnification Agreement

    	 

    

ACCEPTED AND RELIED UPON:

 

WEBSTER BANK, NATIONAL ASSOCIATION

 

 

By  /s/ Elizabeth B. Shelley     

Elizabeth B. Shelley

Its Senior Vice President

Duly Authorized

 

    	Signature page to Environmental Indemnification Agreement

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