Contract analysis

I. EXECUTIVE SUMMARY This memorandum presents a comprehensive analysis of all insurance coverages required as conditions to closing and as ongoing covenants under (a) the Senior Mortgage Loan in the principal amount of Four Hundred Seventy-Five Million Dollars ($475,000,000), for which Ironclad National Bank, N.A. is acting as Agent (the "Senior Mortgage Loan"), and (b) the Mezzanine Loan in the principal amount of T

II. OVERVIEW OF LOAN DOCUMENT INSURANCE PROVISIONS A. Senior Mortgage Loan Documents The Senior Mortgage Loan is governed by a Senior Mortgage Loan Agreement between HYW Mortgage LLC (as Borrower) and Ironclad National Bank, N.A. (as Agent for the lending syndicate), together with a Senior Mortgage, Assignment of Leases and Rents, Security Agreement, and Fixture Filing (the "Senior Mortgage") encumbering the leasehol

III. BUILDER'S RISK INSURANCE Builder's risk insurance is the most significant coverage for the construction phase of the Project and represents the largest single insurance expenditure. Both the Senior Mortgage Loan documents and the Mezzanine Loan documents impose detailed requirements with respect to builder's risk coverage, and the requirements are substantially (though not entirely) aligned. A. Coverage Amount a

IV. COMMERCIAL GENERAL LIABILITY INSURANCE A. Coverage Limits The Senior Term Sheet and the Mezzanine Term Sheet both require the borrower to maintain, or cause to be maintained, commercial general liability ("CGL") insurance with the following minimum limits: A per project aggregate endorsement (ISO CG 25 03 or equivalent) is required, ensuring that the general aggregate limit applies separately to the Project rathe

V. UMBRELLA / EXCESS LIABILITY INSURANCE A. Required Limits Given the total project cost of approximately $920,000,000, the Project's location in a densely populated area of midtown Manhattan, the anticipated pedestrian and vehicular traffic in the vicinity of the Project Site, and the significant New York Labor Law exposure, both lenders are expected to require a combined umbrella/excess liability limit of not less

VI. TERRORISM RISK INSURANCE (TRIA) A. TRIA Act Coverage Both the Senior Term Sheet and the Mezzanine Term Sheet require that all property and liability insurance policies include coverage for "certified acts of terrorism" as defined under the Terrorism Risk Insurance Act of 2002, as amended and most recently reauthorized by the Terrorism Risk Insurance Program Reauthorization Act of 2019 (collectively, "TRIA"). TRIA

VII. FLOOD INSURANCE A. FEMA Flood Zone Determination The Project Site at 450 West 34th Street, New York, New York (Block 729, Lots 1, 5, 12, and 15) is located in FEMA Flood Zone X, which is designated as an area of minimal flood hazard. A formal flood zone determination certificate (Standard Flood Hazard Determination Form, FEMA Form 086-0-32) is to be obtained by Castleton or by a third-party flood determination s

VIII. POLLUTION LEGAL LIABILITY INSURANCE A. Environmental Due Diligence Baseline The scope and limits of the pollution legal liability ("PLL") insurance required by the lenders will be informed by the results of the environmental due diligence performed on the Project Site. The Phase I Environmental Site Assessment (the "Phase I ESA") was completed on March 20, 2025 by Apex Environmental Consultants, Inc. (Project N