Exhibit 10.1 


 





 



 


LOAN AGREEMENT


 


Dated as of November 8, 2021


 


Between


 


MDR FRANKLIN SQUARE, LLC,

as Borrower


 


and


 


DBR INVESTMENTS CO. LIMITED,

as Lender


 


	Property:	3900 East Franklin Boulevard
 Gastonia, North Carolina 28056




 





 



 






     


     


    

 


TABLE OF CONTENTS


 


		 	 	 	Page
	 	 	 	 	 
	Article 1 DEFINITIONS; PRINCIPLES OF CONSTRUCTION 	1
	Section 1.1	 	Specific Definitions	 	1
	Section 1.2	 	Index of Other Definitions	 	21
	Section 1.3	 	Principles of Construction	 	24
	 	 	 	 	 
	Article 2 THE LOAN	24
	Section 2.1	 	The Loan	 	24
	2.1.1	 	Agreement to Lend and Borrow	 	24
	2.1.2	 	Single Disbursement to Borrower	 	24
	2.1.3	 	The Note	 	24
	2.1.4	 	Use of Proceeds	 	24
	Section 2.2	 	Interest Rate	 	24
	2.2.1	 	Interest Rate	 	24
	2.2.2	 	Default Rate	 	24
	2.2.3	 	Interest Calculation	 	25
	2.2.4	 	Usury Savings	 	25
	Section 2.3	 	Loan Payments	 	25
	2.3.1	 	Payments	 	25
	2.3.2	 	Payments Generally	 	25
	2.3.3	 	Payment on Maturity Date	 	26
	2.3.4	 	Late Payment Charge	 	26
	2.3.5	 	Method and Place of Payment	 	26
	Section 2.4	 	Prepayments	 	26
	2.4.1	 	Prepayments	 	26
	2.4.2	 	Defeasance	 	27
	2.4.3	 	Open Prepayment	 	29
	2.4.4	 	Mandatory Prepayments	 	29
	2.4.5	 	Prepayments After Default	 	29
	Section 2.5	 	Release of Property	 	30
	2.5.1	 	Release Upon Defeasance	 	30
	2.5.2	 	Release on Payment in Full	 	30
	 	 	 	 	 
	Article 3 REPRESENTATIONS AND WARRANTIES 	 	31
	Section 3.1	 	Borrower Representations	 	31
	3.1.1	 	Organization; Special Purpose	 	31
	3.1.2	 	Proceedings; Enforceability	 	31
	3.1.3	 	No Conflicts	 	31
	3.1.4	 	Litigation	 	31
	3.1.5	 	Agreements	 	32
	3.1.6	 	Consents	 	32
	3.1.7	 	Property; Title	 	32
	3.1.8	 	ERISA; No Plan Assets	 	33
	3.1.9	 	Compliance	 	33



 






    i


     


    

 


	 	 	 	 	Page
	3.1.10	 	Financial Information	 	34
	3.1.11	 	Easements; Utilities and Public Access	 	34
	3.1.12	 	Assignment of Leases	 	34
	3.1.13	 	Insurance	 	34
	3.1.14	 	Flood Zone	 	34
	3.1.15	 	Physical Condition	 	35
	3.1.16	 	Boundaries	 	35
	3.1.17	 	Leases	 	35
	3.1.18	 	Tax Filings	 	36
	3.1.19	 	No Fraudulent Transfer	 	36
	3.1.20	 	Federal Reserve Regulations	 	37
	3.1.21	 	Organizational Chart	 	37
	3.1.22	 	Organizational Status	 	37
	3.1.23	 	Bank Holding Company	 	37
	3.1.24	 	No Casualty	 	37
	3.1.25	 	Purchase Options	 	37
	3.1.26	 	FIRPTA	 	37
	3.1.27	 	Investment Company Act	 	37
	3.1.28	 	Fiscal Year	 	37
	3.1.29	 	Other Debt	 	37
	3.1.30	 	Contracts	 	38
	3.1.31	 	Full and Accurate Disclosure	 	38
	3.1.32	 	Other Obligations and Liabilities	 	38
	3.1.33	 	Intellectual Property/Websites	 	38
	3.1.34	 	Operations Agreements	 	38
	3.1.35	 	Intentionally Omitted	 	38
	3.1.36	 	Intentionally Omitted	 	38
	3.1.37	 	Illegal Activity	 	38
	Section 3.2	 	Survival of Representations	 	39
	 	 	 	 	 
	Article 4 BORROWER COVENANTS 	 	39
	Section 4.1	 	Payment and Performance of Obligations	 	39
	Section 4.2	 	Due on Sale and Encumbrance; Transfers of Interests	 	39
	Section 4.3	 	Liens	 	40
	Section 4.4	 	Special Purpose	 	40
	Section 4.5	 	Existence; Compliance with Legal Requirements	 	40
	Section 4.6	 	Taxes and Other Charges	 	41
	Section 4.7	 	Litigation	 	41
	Section 4.8	 	Title to the Property	 	41
	Section 4.9	 	Financial Reporting	 	42
	4.9.1	 	Generally	 	42
	4.9.2	 	Quarterly Reports	 	42
	4.9.3	 	Annual Reports	 	43
	4.9.4	 	Other Reports	 	43
	4.9.5	 	Annual Budget	 	43
	4.9.6	 	Extraordinary Operating Expenses	 	44
	4.9.7	 	Breach	 	44



 






    ii


     


    

 


	 	 	 	 	Page
	4.9.8	 	Actual Operating Expenses	 	44
	4.9.9	 	Intentionally Omitted	 	44
	Section 4.10	 	Access to Property	 	44
	Section 4.11	 	Leases	 	45
	4.11.1	 	Generally	 	45
	4.11.2	 	Approvals	 	45
	4.11.3	 	Covenants	 	46
	4.11.4	 	Security Deposits	 	46
	4.11.5	 	Lease Sweep Lease Covenants	 	47
	Section 4.12	 	Repairs; Maintenance and Compliance; Alterations	 	47
	4.12.1	 	Repairs; Maintenance and Compliance	 	47
	4.12.2	 	Alterations	 	47
	Section 4.13	 	Approval of Major Contracts	 	48
	Section 4.14	 	Property Management	 	48
	4.14.1	 	Management Agreement	 	48
	4.14.2	 	Prohibition Against Termination or Modification	 	48
	4.14.3	 	Replacement of Manager	 	49
	Section 4.15	 	Performance by Borrower; Compliance with Agreements	 	49
	Section 4.16	 	Licenses; Intellectual Property; Website	 	49
	4.16.1	 	Licenses	 	49
	4.16.2	 	Intellectual Property	 	49
	4.16.3	 	Website	 	49
	Section 4.17	 	Further Assurances	 	49
	Section 4.18	 	Estoppel Statement	 	50
	Section 4.19	 	Notice of Default	 	50
	Section 4.20	 	Cooperate in Legal Proceedings	 	50
	Section 4.21	 	Indebtedness	 	50
	Section 4.22	 	Business and Operations	 	51
	Section 4.23	 	Dissolution	 	51
	Section 4.24	 	Debt Cancellation	 	51
	Section 4.25	 	Affiliate Transactions	 	51
	Section 4.26	 	No Joint Assessment	 	51
	Section 4.27	 	Principal Place of Business	 	51
	Section 4.28	 	Change of Name, Identity or Structure	 	52
	Section 4.29	 	Costs and Expenses	 	52
	Section 4.30	 	Indemnity	 	53
	Section 4.31	 	ERISA	 	54
	Section 4.32	 	Patriot Act Compliance	 	54
	Section 4.33	 	Anti-Corruption Obligations	 	55
	 	 	 	 	 
	Article 5 INSURANCE, CASUALTY AND CONDEMNATION 	 	56
	Section 5.1	 	Insurance	 	56
	5.1.1	 	Insurance Policies	 	56
	5.1.2	 	Insurance Company	 	60
	Section 5.2	 	Casualty	 	61
	Section 5.3	 	Condemnation	 	62
	Section 5.4	 	Restoration	 	62



 






    iii


     


    

 


	 	 	Page
	Article 6 CASH MANAGEMENT AND RESERVE FUNDS 	 	67
	Section 6.1	 	Cash Management Arrangements	 	67
	Section 6.2	 	Required Repairs Funds	 	68
	6.2.1	 	Deposit of Required Repairs Funds	 	68
	6.2.2	 	Release of Required Repairs Funds	 	68
	Section 6.3	 	Tax Funds	 	69
	6.3.1	 	Deposits of Tax Funds	 	69
	6.3.2	 	Release of Tax Funds	 	69
	Section 6.4	 	Insurance Funds	 	69
	6.4.1	 	Deposits of Insurance Funds	 	69
	6.4.2	 	Release of Insurance Funds	 	69
	6.4.3	 	Acceptable Blanket Policy	 	70
	Section 6.5	 	Capital Expenditure Funds	 	70
	6.5.1	 	Deposits of Capital Expenditure Funds	 	70
	6.5.2	 	Release of Capital Expenditure Funds	 	71
	Section 6.6	 	Rollover Funds	 	71
	6.6.1	 	Deposits of Rollover Funds	 	71
	6.6.2	 	Release of Rollover Funds	 	72
	Section 6.7	 	Intentionally Omitted	 	73
	Section 6.8	 	Intentionally Omitted	 	73
	Section 6.9	 	Intentionally Omitted	 	73
	Section 6.10	 	Intentionally Omitted	 	73
	Section 6.11	 	Casualty and Condemnation Account	 	73
	Section 6.12	 	Cash Collateral Funds	 	73
	Section 6.13	 	Lease Sweep Funds	 	74
	6.13.1	 	Deposits of Lease Sweep Funds	 	74
	6.13.2	 	Release of Lease Sweep Funds	 	74
	Section 6.14	 	Intentionally Omitted	 	76
	Section 6.15	 	Intentionally Omitted	 	76
	Section 6.16	 	Property Cash Flow Allocation	 	76
	6.16.1	 	Order of Priority of Funds in Deposit Account	 	76
	6.16.2	 	Failure to Make Payments	 	77
	6.16.3	 	Application After Event of Default	 	77
	Section 6.17	 	Security Interest in Reserve Funds	 	77
	 	 	 	 	 
	Article 7 PERMITTED TRANSFERS 	 	78
	Section 7.1	 	Permitted Transfer of the Entire Property	 	78
	Section 7.2	 	Permitted Transfers	 	80
	Section 7.3	 	Cost and Expenses; Searches; Copies	 	82
	 	 	 	 	 
	Article 8 DEFAULTS 	 	83
	Section 8.1	 	Events of Default	 	83
	Section 8.2	 	Remedies	 	85
	8.2.1	 	Acceleration	 	85
	8.2.2	 	Remedies Cumulative	 	86
	8.2.3	 	Severance	 	86
	8.2.4	 	Lender’s Right to Perform	 	87



 






    iv


     


    

 


	 	 	Page
	Article 9 SALE AND SECURITIZATION OF MORTGAGE 	 	87
	 Section 9.1	 	Sale of Mortgage and Securitization	 	87
	 Section 9.2	 	Securitization Indemnification	 	91
	 Section 9.3	 	Severance	 	93
	9.3.1	 	Severance Documentation	 	93
	9.3.2	 	New Mezzanine Loan Option	 	94
	9.3.3	 	Cooperation; Execution; Delivery	 	94
	 Section 9.4	 	Costs and Expenses	 	95
	 	 	 	 	 
	Article 10 MISCELLANEOUS 	 	95
	 Section 10.1	 	Exculpation	 	95
	 Section 10.2	 	Survival; Successors and Assigns	 	98
	 Section 10.3	 	Lender’s Discretion; Rating Agency Review Waiver	 	99
	 Section 10.4	 	Governing Law	 	99
	 Section 10.5	 	Modification, Waiver in Writing	 	101
	 Section 10.6	 	Notices	 	101
	 Section 10.7	 	Waiver of Trial by Jury	 	103
	 Section 10.8	 	Headings, Schedules and Exhibits	 	103
	 Section 10.9	 	Severability	 	103
	Section 10.10	 	Preferences	 	103
	Section 10.11	 	Waiver of Notice	 	104
	Section 10.12	 	Remedies of Borrower	 	104
	Section 10.13	 	Offsets, Counterclaims and Defenses	 	104
	Section 10.14	 	No Joint Venture or Partnership; No Third Party Beneficiaries	 	104
	Section 10.15	 	Publicity	 	104
	Section 10.16	 	Waiver of Marshalling of Assets	 	105
	Section 10.17	 	Certain Waivers	 	105
	Section 10.18	 	Conflict; Construction of Documents; Reliance	 	105
	Section 10.19	 	Brokers and Financial Advisors	 	106
	Section 10.20	 	Prior Agreements	 	106
	Section 10.21	 	Servicer	 	107
	Section 10.22	 	Joint and Several Liability	 	107
	Section 10.23	 	Creation of Security Interest	 	107
	Section 10.24	 	Regulatory Change; Taxes	 	107
	10.24.1	 	Increased Costs	 	107
	10.24.2	 	Special Taxes	 	108
	10.24.3	 	Other Taxes	 	108
	Section 10.25	 	Assignments and Participations	 	108
	Section 10.26	 	Acknowledgement and Consent to Bail-In of EEA Financial Institutions	 	109
	Section 10.27	 	Appraisals	 	109
	Section 10.28	 	Counterparts	 	110
	Section 10.29	 	Set-Off	 	110




 






    v


     


    

 


Schedules and Exhibits


 


Schedules:


 


	Schedule I	-	 	Rent Roll
	Schedule II	-	 	Required Repairs
	Schedule III	-	 	Organization of Borrower
	Schedule IV	-	 	Exceptions to Representations and Warranties
	Schedule V	-	 	Definition of Special Purpose Bankruptcy Remote Entity
	Schedule VI	-	 	Intellectual Property/Websites
	Schedule VII 	-	 	Intentionally Omitted
	 	 	 	 
	Exhibits:	 	 	 
	 	 	 	 
	Exhibit A	-	 	Legal Description
	Exhibit B	-	 	Secondary Market Transaction Information




 






    vi


     


    

 



 


LOAN AGREEMENT


 


THIS LOAN AGREEMENT,
dated as of November 8, 2021 (as amended, restated, replaced, supplemented or otherwise modified from time to time, this “Agreement”),
between DBR INVESTMENTS CO. LIMITED, a Cayman Islands corporation, having an address at 1 Columbus Circle, 15th Floor, New York,
New York 10019 (together with its successors and assigns, collectively, “Lender”), and MDR FRANKLIN SQUARE,
LLC, a Delaware limited liability company, having an address at 1051 East Cary Street, Suite 601, James Center Three, Richmond,
Virginia 23219 (together with its permitted successors and assigns, collectively, “Borrower”).


 


All capitalized terms used
herein shall have the respective meanings set forth in Article 1 hereof.


 


W I T N E S S E T H :


 


WHEREAS, Borrower desires
to obtain the Loan from Lender; and


 


WHEREAS, Lender is willing
to make the Loan to Borrower, subject to and in accordance with the terms and conditions of this Agreement and the other Loan Documents.


 


NOW, THEREFORE, in consideration
of the covenants set forth in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree, represent and warrant as follows:


 


Article 1


 


DEFINITIONS;
PRINCIPLES OF CONSTRUCTION


 


Section 1.1            Specific
Definitions.


 


For all purposes of this
Agreement, except as otherwise expressly provided:


 


“Affiliate”
shall mean, as to any Person, any other Person that (i) owns directly or indirectly twenty percent (20%) or more of all equity interests
in such Person, and/or (ii) is in Control of, is Controlled by or is under common ownership or Control with such Person, and/or
(iii) is a director or officer of such Person or of an Affiliate of such Person, and/or (iv) is the spouse, issue or parent
of such Person or of an Affiliate of such Person.


 


“ALTA”
shall mean American Land Title Association, or any successor thereto.


 


“Alteration Threshold”
shall mean three percent (3.0%) of the Outstanding Principal Balance.


 


“Amortization
Commencement Date” shall mean the Monthly Payment Date occurring in January 2025.


 


“Annual Budget”
shall mean the operating and capital budget for the Property setting forth, on a month-by-month basis, in reasonable detail, each line
item of Borrower’s good faith estimate of anticipated operating income, operating expenses and Capital Expenditures for the applicable
Fiscal Year.


 






    


     


    

 


“Anti-Money Laundering
Laws” shall mean any laws relating to money laundering or terrorist financing, including, without limitation, (A) the
criminal laws against terrorism; (B) the criminal laws against money laundering, (C) the Bank Secrecy Act, as amended, (D) the
Money Laundering Control Act of 1986, as amended, and (E) the Patriot Act.


 


“Approved Capital
Expenditures” shall mean actual out-of-pocket Capital Expenditures to unaffiliated third-parties (except with respect to
expenses to Affiliates of Borrower or Guarantor to the extent such expenses have been expressly approved by Lender) incurred by Borrower
and either (i) included in the Approved Annual Budget or (ii) approved by Lender, which approval shall not be unreasonably
withheld or delayed.


 


“Approved Leasing
Expenses” shall mean actual out-of-pocket expenses to unaffiliated third-parties (except with respect to expenses to Affiliates
of Borrower or Guarantor to the extent such expenses have been expressly approved by Lender) incurred by Borrower in leasing space at
the Property pursuant to Leases entered into in accordance with the Loan Documents, including brokerage commissions and tenant improvements,
which expenses (i) are (A) specifically approved by Lender in connection with approving the applicable Lease if Lender’s
approval of such Lease is required pursuant to the terms of this Agreement, (B) incurred in the ordinary course of business and
on market terms and conditions in connection with Leases which do not require Lender’s approval under the Loan Documents, and Lender
shall have received a budget for such tenant improvement costs and a schedule of leasing commission payments payable in connection therewith,
or (C) otherwise approved by Lender, which approval shall not be unreasonably withheld or delayed, and (ii) are substantiated
by executed Lease documents and brokerage agreements.


 


“Approved Lease
Sweep Space Leasing Expenses” shall mean actual out-of-pocket expenses to unaffiliated third-parties (except with respect
to expenses to Affiliates of Borrower or Guarantor to the extent such expenses have been expressly approved by Lender) incurred by Borrower
in leasing Lease Sweep Space at the Property pursuant to Qualified Leases, including brokerage commissions and tenant improvements, which
expenses (i) are (A) specifically approved by Lender in connection with approving the applicable Lease, or (B) otherwise
approved by Lender, which approval shall not be unreasonably withheld or delayed, and (ii) are substantiated by executed Lease documents
and brokerage agreements. In no event shall the disbursement of funds from the Lease Sweep Account to cover Approved Lease Sweep Space
Leasing Expenses exceed (in the aggregate) the Lease Sweep Deposit Amount applicable to the Lease Sweep Space in question if such Lease
Sweep Period was terminated pursuant to clause (E) in the definition of Lease Sweep Period (unless otherwise approved by Lender).


 


“Approved Replacement
Guarantor” shall mean a Person (i) that satisfies the conditions set forth in clauses (x) and (y) of the
definition of “Qualified Transferee”, (ii) is formed in (or, if such Person is an individual, is a citizen of), maintains
its principal place of business in (or, if such Person is an individual, maintains a primary residence in), and is subject to service
in the United States or Canada, (iii) has all or substantially all of its assets in the United States or Canada, (iv) whose
identity, experience, financial condition and creditworthiness, including net worth and liquidity, is acceptable to Lender in Lender’s
sole discretion, for which Lender has received a Rating Agency Confirmation from each applicable Rating Agency, (v) that satisfies
the Guarantor Financial Covenants and (vi) who Controls Borrower (or Transferee Borrower, as applicable) and owns a direct or indirect
interest in Borrower (or Transferee Borrower, as applicable). If two or more Approved Replacement Guarantors are delivering replacement
guaranties and replacement environmental indemnities to Lender, then (1) only one such Approved Replacement Guarantor must Control
Borrower (or Transferee Borrower, as applicable), directly or indirectly (provided that each such Approved Replacement Guarantor must
own a direct or indirect interest in Borrower (or Transferee Borrower, as applicable)) and (2) the obligations of all Approved Replacement
Guarantors shall be joint and several.


 






    2


     


    

 


“Assignment of
Agreements” shall mean that certain Assignment of Agreements, Licenses, Permits and Contracts, dated as of the date hereof,
from Borrower, as assignor, to Lender, as assignee.


 


“Assignment of
Leases” shall mean that certain first priority Assignment of Leases and Rents, dated as of the date hereof, from Borrower,
as assignor, to Lender, as assignee.


 


“Assignment of
Management Agreement” shall mean that certain Assignment of Management Agreement and Subordination of Management Fees dated
as of the date hereof among Borrower, Manager and Lender.


 


“Award”
shall mean any compensation paid by any Governmental Authority in connection with a Condemnation in respect to all or any part of the
Property.


 


“Bankruptcy Code”
shall mean Title 11 of the United States Code entitled “Bankruptcy”, as amended from time to time, and any successor statute
or statutes and all rules and regulations from time to time promulgated thereunder, and any comparable foreign laws relating to
bankruptcy, insolvency or creditors’ rights.


 


“Business Day”
shall mean any day other than a Saturday, a Sunday or a legal holiday on which national banks are not open for general business in (i) the
State of New York, (ii) the state where the corporate trust office of the Trustee is located, or (iii) the state where the
servicing offices of the Servicer are located.


 


“Calculation
Date” shall mean the last day of each calendar quarter during the Term.


 


“Capital Expenditures”
for any period shall mean amounts expended for replacements and alterations to the Property (excluding tenant improvements) and required
to be capitalized according to GAAP.


 


“Cash Management
Agreement” shall mean that certain Cash Management Agreement of even date herewith among Lender, Borrower, and Manager.


 


“Clearing Account
Agreement” shall mean that certain Deposit Account Control Agreement dated the date hereof by and among Borrower, Lender
and Clearing Bank.


 


“Closing Date”
shall mean the date of the funding of the Loan.


 






    3


     


    

 


“Code”
shall mean the Internal Revenue Code of 1986, as amended, and as it may be further amended from time to time, any successor statutes
thereto, and applicable U.S. Department of Treasury regulations issued pursuant thereto in temporary or final form.


 


“Condemnation”
shall mean a temporary or permanent taking by any Governmental Authority as the result or in lieu or in anticipation of the exercise
of the right of condemnation or eminent domain, of all or any part of the Property, or any interest therein or right accruing thereto,
including any right of access thereto or any change of grade affecting the Property or any part thereof.


 


“Control”
shall mean, with respect to any Person, the possession, directly or indirectly, of the power to direct or cause the direction of the
management and policies of such Person, through the ownership of voting securities, by contract or otherwise, and the terms Controlled,
Controlling and Common Control shall have correlative meanings.


 


“Crowd Funded
Person” shall mean a Person that is capitalized through the practice of syndication, advertising or general or broad solicitation,
which capitalization is achieved primarily (i) in reliance upon Regulation Crowdfunding promulgated by the Securities and Exchange
Commission pursuant to the Securities Act of 1933, as amended, and/or (ii) through internet-mediated registries, platforms or similar
portals, mail-order subscriptions, benefit events and/or other similar methods.


 


“DBRS Morningstar”
shall mean DBRS, Inc. and its successor-in-interest.


 


“Debt”
shall mean the Outstanding Principal Balance together with all interest accrued and unpaid thereon and all other sums (including any
applicable Prepayment Fee and/or Liquidated Damages Amount, if applicable) due to Lender from time to time in respect of the Loan under
the Note, this Agreement, the Mortgage, the Environmental Indemnity or any other Loan Document.


 


“Debt-Like Preferred
Equity” shall mean preferred equity that (i) has a “hard coupon”, minimum return or the equivalent, such
as a preferred return or similar required payments that must be paid on dates certain, (ii) a “hard maturity” such as
mandatory redemption date or similar required date of repayment or redemption, (iii) provides for a change in control, required
redemption, increase in preferred return, right to change control or management, buy-sell mechanism or similar remedies in the event
of a failure to repay or redeem on date certain or satisfy preferred return or similar payment thresholds, (iv) is secured by a
pledge of ownership interests, or (v) is treated as debt under GAAP.


 


“Debt Service”
shall mean, with respect to any particular period, the scheduled principal and interest payments due under the Note and, if applicable,
the note(s) evidencing any New Mezzanine Loan in such period (but assuming, only for the purpose of calculating the Debt Service
Coverage Ratio and Restoration DSCR, that the Amortization Commencement Date has already occurred).


 


“Debt Service
Coverage Ratio” shall mean, as of any date of determination, a ratio calculated by Lender, in which (a) the numerator
is the Underwritten Net Cash Flow, and (b) the denominator is the annual Debt Service. Each determination by Lender of the Debt
Service Coverage Ratio shall be conclusive and binding for all purposes, absent manifest error.


 






    4


     


    

 


“Debt Yield”
shall mean, on any date of determination, a ratio, calculated by Lender and expressed as a percentage, in which (a) the numerator
is the Underwritten Net Cash Flow as of such date; and (b) the denominator is the Outstanding Principal Balance on such date plus,
if applicable, the outstanding principal balance of any New Mezzanine Loan. Each determination by Lender of the Debt Yield shall be conclusive
and binding for all purposes, absent manifest error.


 


“Default”
shall mean the occurrence of any event hereunder or under any other Loan Document which, but for the giving of notice or passage of time,
or both, would constitute an Event of Default.


 


“Default Rate”
shall mean, with respect to the Loan, a rate per annum equal to the lesser of (i) the Maximum Legal Rate or (ii) five percent
(5%) above the Interest Rate specified in clause (a) of the definition of “Interest Rate” below.


 


“Deposit Account”
shall mean an Eligible Account at the Deposit Bank.


 


“Deposit Bank”
shall mean the bank or banks selected by Lender to maintain the Deposit Account. Lender may in its sole discretion change the Deposit
Bank from time to time.


 


“Discount Rate”
shall mean the rate which, when compounded monthly, is equivalent to the lesser of (i) the Treasury Rate and (ii) the Swap
Rate, each when compounded semiannually.


 


“Disqualified
Person” shall mean any Person (i) that is a Crowd Funded Person, a DST or that is Controlled by a Crowd Funded Person
or a DST, or in which a Crowd Funded Person or a DST owns any direct or indirect ownership interest, or (ii) that owns (or, in connection
with a proposed assumption of the Loan or a proposed Transfer, proposes to own) any direct or indirect interest in Borrower, any prospective
Approved Replacement Guarantor, or any prospective transferee or the Property through a tenancy-in-common or other similar form of ownership.


 


“DST”
means a trust formed under Chapter 38 of Title 12 of the Delaware Code, 12 Del. Code §§ 3801 et seq., or any successor statute
thereto, in each case, as amended from time to time, or any similar statutory trust formed under the law of any other state.


 


“Eligible Account”
shall mean a separate and identifiable account from all other funds held by the holding institution that is either (i) an account
or accounts (or subaccounts thereof) maintained with a federal or state-chartered depository institution or trust company which complies
with the definition of Eligible Institution or (ii) a segregated trust account or accounts (or subaccounts thereof) maintained with
the corporate trust department of a federal depository institution or state chartered depository institution subject to regulations regarding
fiduciary funds on deposit similar to Title 12 of the Code of Federal Regulations §9.10(b), having in either case corporate trust
powers, acting in its fiduciary capacity, and a combined capital and surplus of at least $50,000,000, subject to supervision or examination
by federal and state authorities and having a long-term unsecured debt rating of “BBB-” or higher by S&P and “A2”
or higher by Moody’s and a short-term unsecured debt rating of “A-1” or higher by S&P and “P-1” or
higher by Moody’s. An Eligible Account will not be evidenced by a certificate of deposit, passbook or other instrument.


 






    5


     


    

 


“Eligible Institution”
shall mean a depository institution or trust company insured by the Federal Deposit Insurance Corporation the short term unsecured debt
obligations or commercial paper of which are rated at least “A-1” by S&P, “P-1” by Moody’s and “F1”
by Fitch (and the long term unsecured debt obligations of such depository institution are rated at least “A” by Fitch) in
the case of accounts in which funds are held for thirty (30) days or less or, in the case of accounts in which funds are held for more
than thirty (30) days, the long term unsecured debt obligations of which are rated at least (i) “A” by S&P, (ii) “A”
by Fitch (and the short term deposits or short term unsecured debt obligations or commercial paper of such depository institution are
rated no less than “F1” by Fitch), and (iii) “A2” by Moody’s; provided, however, for purposes of the
Deposit Bank, the definition of Eligible Institution shall have the meaning set forth in the Cash Management Agreement.


 


“Emergency Law”
shall mean any Legal Requirement related to, in connection with, or in response to any pandemic, including, without limitation, the COVID-19
pandemic.


 


“Environmental
Indemnity” shall mean that certain Environmental Indemnity Agreement dated as of the date hereof executed by Borrower and
Guarantor in connection with the Loan for the benefit of Lender.


 


“ERISA Affiliate”
shall mean any trade or business (whether or not incorporated) which is a member of the same controlled group of corporations or group
of trades or businesses under common control with Borrower or the Guarantor, or is treated as a single employer together with Borrower
or the Guarantor under Section 414 of the Code or Title IV of ERISA.


 


“Fiscal Year”
shall mean each twelve (12) month period commencing on January 1 and ending on December 31 during each year of the Term.


 


“Fitch”
shall mean Fitch, Inc. and its successor-in-interest.


 


“GAAP”
shall mean generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board and
the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board
(or agencies with similar functions of comparable stature and authority within the accounting profession), or in such other statements
by such entity as may be in general use by significant segments of the U.S. accounting profession.


 


“Governmental
Authority” shall mean any court, board, agency, department, committee, commission, central bank, office or authority of
any nature whatsoever (including any political subdivision or instrumentality thereof) for any governmental or quasi-governmental unit
(whether federal, state, commonwealth, county, district, municipal, city, parish, provincial or otherwise) (whether of the government
of the United States or any other nation) now or hereafter in existence (including any supra-national bodies such as the European Union
or the European Central Bank and any intergovernmental organizations such as the United Nations).


 


“Gross Revenue”
shall mean all revenue derived from the ownership and operation of the Property from whatever source, including, without limitation,
Rents and any Insurance Proceeds (whether or not Lender elects to treat any such Insurance Proceeds as business or rental interruption
Insurance Proceeds pursuant to Section 5.4(f) hereof), Lease Termination Payments, any revenue received in connection
with any tax certiorari proceeding and any amounts received by Borrower as a result of any litigation or other legal, administrative
or other proceeding.


 






    6


     


    

 


“Guarantor”
shall mean Medalist Diversified REIT, Inc., a Maryland corporation, or any other Person that now or hereafter guarantees any of
Borrower’s obligations under any Loan Document.


 


“Guarantor Financial
Covenants” shall mean those covenants set forth in Section 5.2 of the Guaranty.


 


“Guaranty”
shall mean that certain Guaranty of Recourse Obligations of even date herewith from Guarantor for the benefit of Lender.


 


“Indebtedness”
shall mean, for any Person, without duplication: (i) all indebtedness of such Person for borrowed money, for amounts drawn under
a letter of credit, or for the deferred purchase price of property or services for which such Person or its assets is liable, (ii) all
unfunded amounts under a loan agreement, letter of credit, or other credit facility for which such Person would be liable if such amounts
were advanced thereunder, (iii) all amounts required to be paid by such Person as a guaranteed payment to partners or a preferred
or special dividend, including any mandatory redemption of shares or interests, (iv) all indebtedness guaranteed by such Person,
directly or indirectly, (v) all obligations under leases that constitute capital leases for which such Person is liable, (vi) all
obligations of such Person under interest rate swaps, caps, floors, collars and other interest hedge agreements, in each case for which
such Person is liable or its assets are liable, whether such Person (or its assets) is liable contingently or otherwise, as obligor,
guarantor or otherwise, or in respect of which obligations such Person otherwise assures a creditor against loss, (vii) all obligations
under any PACE Loans and (viii) any other contractual obligation for the payment of money which are not settled within thirty (30)
days.


 


“Independent”
shall mean, when used with respect to any Person, a Person who: (i) does not have any direct financial interest or any material
indirect financial interest in Borrower or in any Affiliate of Borrower, (ii) is not connected with Borrower or any Affiliate of
Borrower as an officer, employee, promoter, underwriter, trustee, partner, member, manager, creditor, director, supplier, customer or
person performing similar functions and (iii) is not a member of the immediate family of a Person defined in (i) or (ii) above.


 


“Independent
Accountant” shall mean a firm of nationally recognized, certified public accountants which is Independent and which is
selected by Borrower and reasonably acceptable to Lender.


 


“Interest Rate”
shall mean, with respect to each Interest Period: (a) a rate of three and 808/1,000 percent (3.808%) per annum or (b) when
applicable pursuant to this Agreement or any other Loan Document, the Default Rate.


 


“Key Principal(s)”
shall mean, collectively, William Elliott and Thomas Messier.


 


“Kroll”
means Kroll Bond Ratings and its successor-in-interest.


 


“Lease”
shall mean any lease, sublease or sub-sublease, letting, license, concession or other agreement (whether written or oral and whether
now or hereafter in effect) pursuant to which any Person is granted a possessory interest in, or right to use or occupy, all or any portion
of any space in the Property, and every modification, amendment or other agreement (whether written or oral and whether now or hereafter
in effect) relating to such lease, sublease, sub-sublease or other agreement entered into in connection with such lease, sublease, sub-sublease
or other agreement, and every guarantee of the performance and observance of the covenants, conditions and agreements to be performed
and observed by the other party thereto, whether before or after the filing by or against Borrower of any petition for relief under the
Bankruptcy Code.


 






    7


     


    

 


“Lease Sweep
Deposit Amount” shall mean an amount equal to the total rentable square feet of the applicable Lease Sweep Lease multiplied
by $15.00.


 


“Lease Sweep
Lease” shall mean (i) that certain Lease Agreement by and between Borrower’s predecessor in interest, as landlord,
and BROAD RIVER RETAIL, LLC, a North Carolina limited liability company, through its predecessor in interest, as tenant, dated as of
December 30, 2005, as the same may have been amended and may further be amended, supplemented or otherwise modified from time to
time in accordance with this Agreement (the “Ashley Furniture Lease”), (ii) that certain Commercial Lease
by and between Borrower, as landlord, and GASTONIA ATP, LLC, a North Carolina limited liability company, as tenant, dated as of May 8,
2018, as the same may have been amended and may further be amended, supplemented or otherwise modified from time to time in accordance
with this Agreement (the “Altitude Trampoline Park Lease”) or (iii) any replacement Lease that, either
individually, or when taken together with any other Lease with the same Tenant or its Affiliates, and assuming the exercise of all expansion
rights and all preferential rights to lease additional space contained in such Lease, covers the majority of the applicable Lease Sweep
Space.


 


“Lease Sweep
Lease Termination Payments” shall mean, collectively, all sums paid with respect to any rejection, termination, surrender
or cancellation of any Lease Sweep Lease (including in any Lease Sweep Tenant Party Insolvency Proceeding) or any lease buy-out or surrender
payment from any Tenant under a Lease Sweep Lease (including any payment relating to unamortized tenant improvements and/or leasing commissions
and/or application of any security deposit).


 


“Lease Sweep
Period”


 


(i)            shall
commence on the first Monthly Payment Date following (or in the case of clause (a)(1) below, the Monthly Payment Date preceding)
the occurrence of any of the following:


 


(a)            with
respect to each Lease Sweep Lease, the earlier to occur of:


 


1.            twelve
(12) months prior to the earliest stated expiration (including the stated expiration of any renewal term) of a Lease Sweep Lease;


 


2.            upon
the date required under a Lease Sweep Lease by which the tenant thereunder is required to give notice of its exercise of a renewal option
thereunder (and such renewal has not been so exercised);


 


(b)            the
date that a Lease Sweep Lease (or any material portion thereof) is surrendered, cancelled or terminated or the receipt by Borrower or
Manager of notice from any Tenant under a Lease Sweep Lease of its intent to surrender, cancel or terminate the Lease Sweep Lease (or
any material portion thereof);


 






    8


     


    

 


(c)           the
date that any Tenant under a Lease Sweep Lease shall discontinue its business (i.e., “goes dark”) at its Lease Sweep Space
at the Property (or any material portion thereof) or give notice that it intends to discontinue its business at its Lease Sweep Space
at the Property (or any material portion thereof);


 


(d)           upon
a default under a Lease Sweep Lease by the Tenant thereunder that continues beyond any applicable notice and cure period; or


 


(e)            the
occurrence of a Lease Sweep Tenant Party Insolvency Proceeding; and


 


(ii)            shall
end with respect to the applicable event giving rise to the Lease Sweep Period upon the first to occur of the following with respect
to such event (identified by sub-clause reference below):


 


(A)          in
the case of clauses (i)(a), (i)(b), and (i)(c) above, the entirety of the Lease Sweep Space (or applicable portion thereof) is leased
pursuant to one or more Qualified Leases and, in Lender’s judgment, sufficient funds have been accumulated in the Lease Sweep Account
(during the continuance of the subject Lease Sweep Period) to cover all anticipated Approved Lease Sweep Space Leasing Expenses, free
rent periods, and/or rent abatement periods set forth in all such Qualified Leases and any shortfalls in required payments hereunder
or Operating Expenses as a result of any anticipated down time prior to the commencement of payments under such Qualified Leases;


 


(B)          in
the case of clause (i)(a) above, the date on which the subject Tenant under the Lease Sweep Lease irrevocably exercises its renewal
or extension option with respect to all of its Lease Sweep Space, and in Lender’s judgment, sufficient funds have been accumulated
in the Lease Sweep Account (during the continuance of the subject Lease Sweep Period) to cover all anticipated Approved Lease Sweep Space
Leasing Expenses, free rent periods and/or rent abatement periods in connection with such renewal or extension;


 


(C)          in
the case of clause (i)(d) above, the date on which the subject default has been cured, and no other default under such Lease Sweep
Lease occurs for a period of six (6) consecutive months following such cure;


 


(D)          in
the case of clause (i)(e) above, (a) the applicable Lease Sweep Tenant Party Insolvency Proceeding has terminated and the applicable
Lease Sweep Lease, and each guaranty of the Lease Sweep Lease (if any), has been affirmed or assumed, without modification of such Lease
Sweep Lease or any guaranty thereof, by the Tenant under the Lease Sweep Lease and each guarantor (if any) of the Lease Sweep Lease in
a manner reasonably satisfactory to Lender pursuant to a final, non-appealable order of the bankruptcy court, and in connection therewith
all defaults under the Lease Sweep Lease are cured and the Tenant under the Lease Sweep Lease is in occupancy of its premises and paying
full, unabated rent under the applicable Lease Sweep Lease and (b) adequate assurance of future performance under the Lease Sweep
Lease, and, if applicable, each guaranty of the Lease Sweep Lease as reasonably determined by Lender is provided; and


 






    9


     


    

 


(E)           So
long as the Debt Service Coverage Ratio (excluding from the calculation all rent and recoveries from any Lease Sweep Lease that is the
subject of any such event) is equal to or greater than 1.50:1.00, in the case of clauses (i)(a), (i)(b), (i)(c), (i)(d), and (i)(e) above,
the date on which the Lease Sweep Funds in the Lease Sweep Account collected with respect to the Lease Sweep Lease in question (including
any Lease Termination Payments with respect to such Lease Sweep Lease deposited into the Lease Sweep Account) is equal to the Lease Sweep
Deposit Amount applicable to such Lease Sweep Space, unless the applicable Lease Sweep Space has been leased pursuant to one or more
Leases which, in the aggregate, (x) require Borrower to incur expenses, including the payment of brokerage commissions, completion
of tenant improvements or payment of tenant allowances, and/or (y) provide for free rent periods and/or rent abatement periods with
respect to rent amounts, which, in Lender’s determination, exceed the Lease Sweep Deposit Amount applicable to such Lease Sweep
Space (in which case the Lease Sweep Period in question shall continue until Borrower satisfies clause (A) above).


 


“Lease Sweep
Space” shall mean the space demised under the applicable Lease Sweep Lease.


 


“Lease Sweep
Tenant Party” shall mean a Tenant under a Lease Sweep Lease or its direct or indirect parent company (if any) and/or any
guarantor of such Tenant’s obligations under a Lease Sweep Lease.


 


“Lease Sweep
Tenant Party Insolvency Proceeding” shall mean (A) the admission in writing by any Lease Sweep Tenant Party of its
inability to pay its debts generally, or the making of a general assignment for the benefit of creditors, or the instituting by any Lease
Sweep Tenant Party of any proceeding seeking to adjudicate it insolvent or seeking a liquidation or dissolution, or the taking advantage
by any Lease Sweep Tenant Party of any Insolvency Law (as hereinafter defined), or the commencement by any Lease Sweep Tenant Party of
a case or other proceeding naming it as debtor under any Insolvency Law or the instituting of a case or other proceeding against or with
respect to any Lease Sweep Tenant Party under any Insolvency Law or (B) the instituting of any proceeding against or with respect
to any Lease Sweep Tenant Party seeking liquidation of its assets or the appointment of (or if any Lease Sweep Tenant Party shall consent
to or acquiesce in the appointment of) a receiver, liquidator, conservator, trustee or similar official in respect of it or the whole
or any substantial part of its properties or assets or the taking of any corporate, partnership or limited liability company action in
furtherance of any of the foregoing. As used herein, the term “Insolvency Law” shall mean Title 11 of the United
States Code (11 U.S.C. §§ 101 et seq.) as the same has been or may be amended or superseded from time to time, or any other
applicable domestic or foreign liquidation, conservatorship, bankruptcy, receivership, insolvency, reorganization, or any similar debtor
relief laws affecting the rights, remedies, powers, privileges and benefits of creditors generally.


 


“Legal Requirements”
shall mean all federal, state, county, municipal and other governmental statutes, laws, rules, orders, regulations, ordinances, judgments,
decrees and injunctions of Governmental Authorities affecting the Loan, any Secondary Market Transaction with respect to the Loan, Borrower,
Manager or the Property or any part thereof or the construction, use, alteration or operation thereof, or any part thereof, whether now
or hereafter enacted and in force, including, without limitation, the Securities Act, the Exchange Act, Regulation AB, the rules and
regulations promulgated pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, zoning and land use laws, the Americans
with Disabilities Act of 1990, and all permits, licenses and authorizations and regulations relating thereto, and all covenants, agreements,
restrictions and encumbrances contained in any instruments, either of record or known to Borrower, at any time in force affecting the
Property or any part thereof, including any which may (i) require repairs, modifications or alterations in or to the Property or
any part thereof, or (ii) in any way limit the use and enjoyment thereof.


 






    10


     


    

 


“Lien”
shall mean any mortgage, deed of trust, lien (statutory or otherwise), pledge, hypothecation, easement, restrictive covenant, preference,
assignment, security interest, PACE Loan or any other encumbrance, charge or transfer of, or any agreement to enter into or create any
of the foregoing, on or affecting all or any portion of the Property or any interest therein, or any direct or indirect interest in Borrower,
including any conditional sale or other title retention agreement, any financing lease having substantially the same economic effect
as any of the foregoing, the creation or issuance of any Debt-Like Preferred Equity, the filing of any financing statement, and mechanic’s,
materialmen’s and other similar liens and encumbrances.


 


“Loan”
shall mean the loan in the original principal amount Thirteen Million Two Hundred Fifty Thousand and No/100 Dollars ($13,250,000.00)
made by Lender to Borrower pursuant to this Agreement.


 


“Loan Documents”
shall mean, collectively, this Agreement, the Note, the Mortgage, the Assignment of Leases, the Cash Management Agreement, the Clearing
Account Agreement, the Assignment of Agreements, the Environmental Indemnity, the Assignment of Management Agreement, the Certificate
Re “Recycled” Single Purpose Entity and the Guaranty and any other documents, agreements and instruments now or hereafter
evidencing, securing or delivered to Lender in connection with the Loan, as the same may be (and each of the foregoing defined terms
shall refer to such documents as they may be) amended, restated, replaced, supplemented or otherwise modified from time to time.


 


“Loan to Value
Ratio” shall mean the ratio, as of a particular date, in which the numerator is equal to the Outstanding Principal Balance
and the denominator is equal to the appraised value of the Property, as determined by Lender in its sole discretion.


 


“Lockbox Trigger
Event” shall mean (i) the occurrence of an Event of Default, (ii) if Guarantor or Manager shall become insolvent
or a debtor in any bankruptcy or insolvency proceeding, (iii) if the Debt Service Coverage Ratio is less than 1.25:1.00 as of any
Calculation Date, as determined by Lender, or (iv) the commencement of a Lease Sweep Period.


 


“Low DSCR Period”
shall (I) commence if the Debt Service Coverage Ratio is less than 1.20:1.00 as of any Calculation Date, provided, however, if any
Tenant shall become subject to a Tenant Adjustment Event, then the Underwritten Net Cash Flow as of the most recent Calculation Date
may be immediately adjusted downward by Lender and to the extent said adjustment results in a Debt Service Coverage Ratio that is below
1.20:1.00, a Low DSCR Period shall immediately commence and (II) end if the Property has achieved a Debt Service Coverage Ratio
of at least 1.20:1.00 for two consecutive Calculation Dates, as determined by Lender (provided that if the financial reports required
under Sections 4.9.2 and 4.9.3 are not delivered to Lender as and when required hereunder, a Low DSCR Period shall be deemed
to have commenced and be ongoing, unless and until such reports are delivered and they indicate that, in fact, no Low DSCR Period is
ongoing).


 






    11


     


    

 


“Major Contract”
shall mean (i) any management, brokerage or leasing agreement, (ii) any cleaning, maintenance, service or other contract or
agreement of any kind (other than Leases) of a material nature (materiality for these purposes to include, without limitation, contracts
which extend beyond one year (unless cancelable on thirty (30) days or less notice without requiring the payment of termination fees
or payments of any kind)), or (iii) any contract or agreement with an Affiliate of Borrower, in any case relating to the ownership,
leasing, management, use, operation, maintenance, repair or restoration of the Property, whether written or oral.


 


“Major Lease”
shall mean any Lease which, either individually, or when taken together with any other Lease with the same Tenant or its Affiliates,
and assuming the exercise of all expansion rights and all preferential rights to lease additional space contained in such Lease, (i) covers
more than 10,000 rentable square feet, (ii) contains an option or other preferential right to purchase all or any portion of the
Property, (iii) is with an Affiliate of Borrower as Tenant, or (iv) is entered into during the continuance of a Trigger Period.


 


“Management Agreement”
shall mean the management agreement entered into by and between Borrower and the current Manager or any replacement management agreement
entered into by and between Borrower and a Manager in accordance with the terms of the Loan Documents, in each case, pursuant to which
the Manager is to provide management and other services with respect to the Property.


 


“Manager”
shall mean Dodson Commercial Properties, LLC, a Virginia limited liability company, or any other manager engaged in accordance with the
terms and conditions of the Loan Documents.


 


“Material Alteration”
shall mean any alteration affecting structural elements of the Improvements, utility or HVAC system contained in any Improvements or
the exterior of the Property, the cost of which exceeds the Alteration Threshold; provided, however, that in no event shall (i) any
Required Repairs, (ii) any tenant improvement work performed pursuant to any Lease existing on the date hereof or entered into hereafter
in accordance with the provisions of this Agreement, or (iii) alterations performed as part of a Restoration, constitute a Material
Alteration.


 


“Maturity Date”
shall mean the date on which the final payment of principal of the Note becomes due and payable as herein and therein provided, whether
at the Stated Maturity Date, by declaration of acceleration, extension or otherwise.


 


“Maximum Legal
Rate” shall mean the maximum nonusurious interest rate, if any, that at any time or from time to time may be contracted
for, taken, reserved, charged or received on the indebtedness evidenced by the Note and as provided for herein or the other Loan Documents,
under the laws of such Governmental Authority whose laws are held by any court of competent jurisdiction to govern the interest rate
provisions of the Loan.


 


“Monthly Debt
Service Payment Amount” shall mean a constant monthly payment of $61,799.71.


 


“Monthly Operating
Expense Budgeted Amount” shall mean the monthly amount set forth in the Approved Annual Budget for operating expenses for
the calendar month in which such Monthly Payment Date occurs; provided that management fees payable to Manager as part of the Monthly
Operating Expense Budgeted Amount shall not exceed 4% of Rents (“Management Fee Cap”).


 






    12


     


    

 


“Monthly Payment
Date” shall mean the sixth (6th) day of every calendar month occurring during the Term. The first Monthly Payment
Date shall be January 6, 2022.


 


“Moody’s”
shall mean Moody’s Investors Service, Inc. and its successor-in-interest.


 


“Mortgage”
shall mean that certain first priority Deed of Trust, Assignment of Leases and Rents and Security Agreement, dated the date hereof, executed
and delivered by Borrower as security for the Loan and encumbering the Property, as the same may be amended, restated, replaced, supplemented
or otherwise modified from time to time.


 


“NRSRO”
shall mean any credit rating agency that has elected to be treated as a nationally recognized statistical rating organization for purposes
of Section 15E of the Exchange Act, without regard to whether or not such credit rating agency has been engaged by Lender or its
designees in connection with, or in anticipation of, a Securitization.


 


“Obligations”
shall mean, collectively, Borrower’s obligations for the payment of the Debt and the performance of the Other Obligations.


 


“Occupancy Conditions”
shall mean the delivery by Borrower to Lender of evidence reasonably satisfactory to Lender (including an estoppel certificate executed
by the relevant Tenant(s)) that (A) the entire subject Lease Sweep Space is tenanted under one or more Qualified Leases, (B) each
such Tenant has taken occupancy of the entire space demised to such Tenant, (C) all contingencies under all such Lease(s) to
the effectiveness of the Lease(s) have been satisfied, (D) all leasing commissions payable in connection with any such Lease
have been paid and all tenant improvement obligations or other landlord obligations of an inducement nature have either been completed
or paid in full or, alternatively, sufficient funds will be retained in the Lease Sweep Account for such purposes (the “Unpaid
TILC Obligation Amount”), (E) such Tenant has actually commenced paying full contractual rent under the applicable
Lease and any initial free rent period or period of partial rent abatements has expired or, alternatively, sufficient funds will be retained
in the Lease Sweep Account to account for all remaining scheduled free rent periods or rent abatements (the “Remaining Rent
Abatement Amount”) and (F) the rent commencement date under all such Lease(s) has been set.


 


“Officer’s
Certificate” shall mean a certificate delivered to Lender by Borrower which is signed by an authorized senior officer of
Borrower.


 


“Open Prepayment
Date” shall mean the Monthly Payment Date occurring in September 2031.


 






    13


     


    

 


“Operating Expenses”
shall mean, for any period, without duplication, all expenses actually paid or payable by Borrower during such period in connection with
the operation, management, maintenance, repair and use of the Property, determined on an accrual basis, and, except to the extent otherwise
provided in this definition, in accordance with GAAP. Operating Expenses specifically shall include (i) all expenses incurred in
the immediately preceding twelve (12) month period based on quarterly financial statements delivered to Lender in accordance with Section 4.9.2
hereof, (ii) all payments required to be made pursuant to any Operations Agreements, (iii) property management fees in
an amount equal to the management fees actually paid under the Management Agreement, (iv) administrative, payroll, security and
general expenses for the Property, (v) the cost of utilities, inventories and fixed asset supplies consumed in the operation of
the Property, (vi) a reasonable reserve for uncollectible accounts, (vii) costs and fees of Independent professionals (including,
without limitation, legal, accounting, consultants and other professional expenses), technical consultants, operational experts (including
quality assurance inspectors) or other third parties retained to perform services required or permitted hereunder, (viii) cost of
attendance by employees at training and manpower development programs, (ix) association dues, (x) computer processing charges,
(xi) operational equipment and other lease payments, (xii) Taxes and Other Charges (other than income taxes or Other Charges
in the nature of income taxes) and insurance premiums and (xiii) all underwritten reserves required by Lender hereunder (without
duplication). Notwithstanding the foregoing, Operating Expenses shall not include (1) depreciation or amortization, (2) income
taxes or Other Charges in the nature of income taxes, (3) any expenses (including legal, accounting and other professional fees,
expenses and disbursements) incurred in connection with the making of the Loan or the sale, exchange, transfer, financing or refinancing
of all or any portion of the Property or in connection with the recovery of Insurance Proceeds or Awards which are applied to prepay
the Note, (4) Capital Expenditures, (5) Debt Service, and (6) any item of expense which would otherwise be considered
within Operating Expenses pursuant to the provisions above but is paid directly by any Tenant.


 


“Operations Agreements”
shall mean any covenants, restrictions, easements, declarations or agreements of record relating to the construction, operation or use
of the Property, together with all amendments, modifications or supplements thereto.


 


“Other Charges”
shall mean all ground rents, maintenance charges, impositions other than Taxes and any other charges, including vault charges and license
fees for the use of vaults, chutes and similar areas adjoining the Property, now or hereafter levied or assessed or imposed against the
Property or any part thereof.


 


“Other Obligations”
shall mean (a) the performance of all obligations of Borrower contained herein; (b) the performance of each obligation of Borrower
contained in any other Loan Document; and (c) the performance of each obligation of Borrower contained in any renewal, extension,
amendment, modification, consolidation, change of, or substitution or replacement for, all or any part of this Agreement, the Note or
any other Loan Document.


 


“Outstanding
Principal Balance” shall mean, as of any date, the outstanding principal balance of the Loan.


 


“PACE Loan”
shall mean (x) any “Property-Assessed Clean Energy loan” or (y) any other indebtedness, without regard to the name
given to such indebtedness, which is (i) incurred for improvements to the Property for the purpose of increasing energy efficiency,
increasing use of renewable energy sources, resource conservation, or a combination of the foregoing, and (ii) repaid through multi-year
assessments against the Property.


 


“Patriot Act”
shall mean the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (USA
PATRIOT ACT) of 2001, as the same was restored and amended by Uniting and Strengthening America by Fulfilling Rights and Ensuring Effective
Discipline Over Monitoring Act (USA FREEDOM Act) of 2015 and as the same may be further amended, extended, replaced or otherwise modified
from time to time, and any corresponding provisions of future laws.


 






    14


     


    

 


“Permitted Encumbrances”
shall mean, collectively, (i) the Liens and security interests created by the Loan Documents, (ii) all encumbrances and other
matters disclosed in the Title Insurance Policy, (iii) Liens, if any, for Taxes or Other Charges imposed by any Governmental Authority
not yet due or delinquent, (iv) any workers’, mechanics’ or other similar Liens on the Property provided that any such
Lien is bonded or discharged within thirty (30) days after Borrower first receives written notice of such Lien or which is being contested
in good faith in accordance with the requirements of Section 4.3 and (v) such other title and survey exceptions as Lender
has approved or may approve in writing in Lender’s reasonable discretion.


 


“Person”
shall mean any individual, corporation, partnership, limited liability company, joint venture, estate, trust, unincorporated association,
any other entity, any country or Governmental Authority and any fiduciary acting in such capacity on behalf of any of the foregoing.


 


“Physical Conditions
Report” shall mean that certain Property Condition Report, prepared by Partner Engineering North Carolina, PLLC and dated
as of October 13, 2021.


 


“Prepayment Fee”
shall mean an amount equal to the greater of (i) the Yield Maintenance Amount, and (ii) five percent (5%) of the unpaid principal
balance of the Note as of the Repayment Date.


 


“Prepayment Notice”
shall mean a prior irrevocable written notice to Lender specifying the proposed Business Day on which a prepayment of the Debt is to
be made pursuant to Section 2.4 hereof, which date must be a Monthly Payment Date and shall be no earlier than thirty (30)
days after the date of such Prepayment Notice and no later than sixty (60) days after the date of such Prepayment Notice.


 


“Prohibited Person”
shall mean any Person:


 


		(i)	that is listed on any Government List
                                            or is otherwise a Proscribed Person;



 


		(ii)	that is listed on the annex to, or is
                                            otherwise subject to the provisions of, Executive Order 13224;



 


		(iii)	who commits, threatens, conspires to
                                            commit or supports “terrorism” as defined in Executive Order 13224;



 


		(iv)	that is owned or Controlled by, or acting
                                            for on behalf of, any Person that is described in the foregoing clauses(i), (ii) or
                                            (iii) above or its otherwise subject to the provisions of Executive Order 13224;



 


		(v)	with whom another Person is prohibited
                                            from dealing or otherwise engaging in any transaction by any terrorism or money laundering
                                            law, including the Patriot Act, Executive Order 13224 and any Anti-Money Laundering Laws;



 


		(vi)	that is an Embargoed Person;



 






    15


     


    

 


		(vii)	who is an Affiliate of any Person that
                                            is described in any of clauses (i) through (vi) above; or



 


		(viii)	is a Disqualified Person.



 


“Property”
shall mean the parcel or parcels of real property described on Exhibit A attached hereto and made a part hereof, the
Improvements now or hereafter erected or installed thereon and all personal property owned by Borrower and encumbered by the Mortgage,
together with all rights pertaining to such property and Improvements, all as more particularly described in the Granting Clauses of
the Mortgage.


 


“Provided Information”
shall mean any and all financial and other information provided at any time prepared by, or on behalf of, Borrower, Manager, Tenants
and/or Guarantor.


 


“Qualified Lease”
means either: (A) the original Lease Sweep Lease, as extended in accordance with (i) the express renewal option set forth in
such Lease Sweep Lease and with respect to which, the terms of such renewal are on market terms with respect to, among other things,
base rent, additional rent and recoveries and tenant improvement allowances or (ii) a modification of the Lease Sweep Lease approved
by Lender, or (B) a replacement lease (i) with a term that extends at least two (2) years beyond the end of the Loan Term
and with an initial term of at least five (5) years (ii) entered into in accordance with this Agreement and (iii) on market
terms with respect to, among other things, base rent, additional rent and recoveries and tenant improvement allowances.


 


“Qualified Manager”
shall mean (i) so long as Borrower is Controlled by Key Principal, a property management company owned and/or Controlled by Key
Principal or (ii) an Unaffiliated Qualified Manager.


 


“Qualified Transferee”
shall mean a transferee for whom, prior to the Transfer, Lender shall have received and approved: (x) satisfactory evidence that
the proposed transferee (1) has never been indicted or convicted of, or pled guilty or no contest to, a felony, (2) has never
been indicted or convicted of, or pled guilty or no contest to, a Patriot Act Offense and is not on any Government List and is not otherwise
a Prohibited Person, (3) has never been the subject of a voluntary or involuntary (to the extent the same has not been discharged)
bankruptcy proceeding and (4) has no material outstanding judgments against such proposed transferee and (y) Satisfactory Search
Results with respect to such proposed transferee and its direct and indirect owners.


 


“Rating Agencies”
shall mean any nationally-recognized statistical rating organization (e.g. S&P, Moody’s, Fitch, DBRS Morningstar, Kroll or
any successor thereto) that has been or will be engaged by Lender or its designees in connection with, or in anticipation of, a Securitization.


 


“Rating Agency
Confirmation” shall mean a written affirmation from each of the Rating Agencies that the credit rating of the Securities
by such Rating Agency immediately prior to the occurrence of the event with respect to which such Rating Agency Confirmation is sought
will not be qualified, downgraded or withdrawn as a result of the occurrence of such event, which affirmation may be granted or withheld
in such Rating Agency’s sole and absolute discretion.


 






    16


     


    

 


“Regulation AB”
shall mean Regulation AB under the Securities Act and the Exchange Act, as such Regulation may be amended from time to time.


 


“Regulatory Change”
shall mean, at any time hereafter, (i) any change in any Legal Requirement (including by repeal, amendment or otherwise) or in the
interpretation or application thereof by any central bank or other Governmental Authority or (ii) any new or revised request, guidance
or directive issued by any central bank or other Governmental Authority and applicable to Lender.


 


“Related Loan”
shall mean a loan to an Affiliate of Borrower or any Guarantor or secured by a Related Property, that is included in a Securitization
with the Loan, and any other loan that is cross-collateralized with the Loan.


 


“Related Property”
shall mean a parcel of real property, together with improvements thereon and personal property related thereto, that is “related”
within the meaning of the definition of Significant Obligor, to the Property.


 


“REMIC Trust”
shall mean a “real estate mortgage investment conduit” within the meaning of Section 860D of the Code that holds the
Note.


 


“Rents”
shall mean all rents, rent equivalents, moneys payable as damages (including payments by reason of the rejection of a Lease in a bankruptcy
proceeding) or in lieu of rent or rent equivalents, royalties (including all oil and gas or other mineral royalties and bonuses), income,
fees, receivables, receipts, revenues, deposits (including security, utility and other deposits), accounts, cash, issues, profits, charges
for services rendered, and other payment and consideration of whatever form or nature received by or paid to or for the account of or
benefit of Borrower, Manager or any of their respective agents or employees from any and all sources arising from or attributable to
the Property and the Improvements, including all receivables, signage income, customer obligations, installment payment obligations and
other obligations now existing or hereafter arising or created out of the sale, lease, sublease, license, concession or other grant of
the right of the use and occupancy of the Property or rendering of services by Borrower, Manager or any of their respective agents or
employees, and Insurance Proceeds, if any, from business interruption or other loss of income insurance, but only to the extent such
Insurance Proceeds are treated as business or rental interruption Insurance Proceeds pursuant to Section 5.4(f) hereof.


 


“Repayment Date”
shall mean the date of a defeasance or prepayment (as applicable) of the Loan pursuant to the provisions of Section 2.4 hereof.


 


“Reserve Funds”
shall mean, collectively, all funds deposited by Borrower with Lender or Deposit Bank pursuant to Article 6 of this Agreement,
including, but not limited to, the Capital Expenditure Funds, the Insurance Funds, the Tax Funds, the Required Repair Funds, the Lease
Sweep Funds, the Casualty and Condemnation Funds, the Cash Collateral Funds and the Rollover Funds.


 


“Restoration”
shall mean the repair, restoration and re-tenanting of the Property after a Casualty or Condemnation as nearly as possible to the condition
the Property was in immediately prior to such Casualty or Condemnation, with such alterations as may be reasonably approved by Lender.


 






    17


     


    

 


“Restoration
DSCR” shall mean, as of any date of determination, the ratio of (a) the Underwritten Net Cash Flow of the Property,
based on (x) annualized in place Rents or annualized Rents under Leases that are reasonably expected by Lender to remain in place
following the completion of such Restoration and (y) expenses on a pro forma basis, to (b) an amount equal to the annual Debt
Service.


 


“Restoration
Threshold” shall mean $250,000.


 


“S&P”
shall mean Standard & Poor’s Ratings Group, a division of the McGraw-Hill Companies.


 


“Satisfactory
Search Results” shall mean, with respect to any Person, and its direct and indirect owners, (A) satisfactory completion
by Lender of its anti-financial crime and “know your customer” procedures (internal or otherwise), including receipt of credit
history, litigation, judgment, and other related searches, each of which are satisfactory to Lender in all respects and (B) confirmation
satisfactory to Lender that such Person does not violate any Anti-Money Laundering Laws, is not on any Government List and is not otherwise
a Prohibited Person.


 


“Significant
Obligor” shall have the meaning set forth in Item 1101(k) of Regulation AB under the Securities Act.


 


“Special Taxes”
shall mean any and all present or future taxes, levies, imposts, deductions, charges or withholdings, or any liabilities with respect
thereto, including those arising after the Closing Date as a result of the adoption of or any change in law, treaty, rule, regulation,
guideline or determination of a Governmental Authority or any change in the interpretation or application thereof by a Governmental Authority
but excluding, in the case of Lender, such taxes (including income taxes, franchise taxes and branch profit taxes) as are imposed on
or measured by Lender’s net income by the United States of America or any Governmental Authority of the jurisdiction under the
laws under which Lender is organized or maintains a lending office.


 


“State”
shall mean North Carolina.


 


“Stated Maturity
Date” shall mean December 6, 2031.


 


“Survey”
shall mean a survey of the Property prepared by a surveyor licensed in the State and satisfactory to Lender and the company or companies
issuing the Title Insurance Policy, and containing a certification of such surveyor satisfactory to Lender.


 


“Swap Rate”
shall mean the yield calculated by the linear interpolation of mid-market swap
yields, as reported on Reuters Capital Markets screen 19901 (SEMI-BOND column) for the week ending prior to the Repayment Date, with
maturities (one longer and one shorter) most nearly approximating the Stated Maturity Date (in the event Reuters Capital Markets screen
19901 is no longer available, Lender shall select a comparable publication to determine such yield).


 






    18


     


    

 


“Taxes”
shall mean any and all present or future taxes, levies, imposts, duties, deductions, assessments, fees or other charges or withholdings
(including backup withholding), or any liabilities with respect thereto (including any interest, additions to tax or penalties applicable
thereto), including those arising after the Closing Date as a result of the adoption or taking effect of, or any change in law, treaty,
rule, regulation, guideline or determination of a Governmental Authority or any change in the administration, interpretation, implementation
or application thereof by a Governmental Authority, including without limitation, (i) any and all real estate taxes, assessments,
water rates or sewer rents and (ii) any and all personal property taxes, in each case, now or hereafter levied or assessed or imposed
against the Property or part thereof, together with all interest and penalties thereon. All taxes referred to in clause (i) above,
including all interest and penalties thereon, are hereinafter collectively referred to as “Real Estate Taxes”.
In no event shall any PACE Loan be considered a Tax for purposes of this Agreement.


 


“Tenant”
shall mean any Person obligated by contract or otherwise to pay monies (including a percentage of gross income, revenue or profits) under
any Lease now or hereafter affecting all or any part of the Property.


 


“Term”
shall mean the entire term of this Agreement, which shall expire upon repayment in full of the Debt and full performance of each and
every obligation to be performed by Borrower pursuant to the Loan Documents.


 


“Title Insurance
Policy” shall mean an ALTA mortgagee title insurance policy in the form acceptable to Lender issued with respect to the
Property and insuring the Lien of the Mortgage.


 


“Treasury Rate”
shall mean the yield calculated by the linear interpolation of the yields, as reported in Federal Reserve Statistical Release H.15 Selected
Interest Rates under the heading U.S. Government Securities/Treasury Constant Maturities for the week ending prior to the Repayment Date,
of U.S. Treasury constant maturities with maturity dates (one longer and one shorter) most nearly approximating the Stated Maturity Date.
(In the event Release H.15 is no longer published, Lender shall select a comparable publication to determine the Treasury Rate.)


 


“Trigger Period”
shall commence upon the occurrence of (i) an Event of Default, or (ii) the commencement of a Low DSCR Period, or (iii) if
Guarantor shall become insolvent or a debtor in any bankruptcy or insolvency proceeding, or (iv) the commencement of a Lease Sweep
Period; and shall end, in each case provided no other Trigger Period is then continuing, if, (A) with respect to a Trigger Period
continuing pursuant to clause (i), the Event of Default commencing the Trigger Period has been cured and such cure has been accepted
by Lender (and no other Event of Default is then continuing) or (B) with respect to a Trigger Period continuing due to clause
(ii), the Low DSCR Period has ended pursuant to the terms hereof, or (C) with respect to a Trigger Period continuing due to
clause (iv), such Lease Sweep Period has ended pursuant to the terms hereof (and no other Lease Sweep Period is then continuing).


 


“TRIPRA”
shall mean the Terrorism Risk Insurance Program Reauthorization Act of 2015 or any replacement, reauthorization or extension thereof.


 


“Trustee”
shall mean any trustee holding the Loan in a Securitization.


 


“UCC”
or “Uniform Commercial Code” shall mean the Uniform Commercial Code as in effect in the State (with respect
to fixtures), the State of New York or the state in which any of the Cash Management Accounts are located, as the case may be.


 






    19


     


    

 


“Unaffiliated
Qualified Manager” shall mean an unaffiliated property manager of the Property that (A) is a reputable, nationally
or regionally recognized management company having at least five (5) years’ experience in the management of properties that
are similar to the Property as to quality, location and type, (B) at the time of its engagement as property manager has (x) leasable
square footage of the same property type as the Property equal to the lesser of 1,000,000 leasable square feet in the aggregate and five
(5) times the leasable square feet of the Property and (y) managed at least ten (10) properties that are similar to the
Property as to quality, location and type and used as a retail center and (C) is not the subject of a bankruptcy or similar insolvency
proceeding.


 


“Underwritten
Net Cash Flow” shall mean, as of the end of any calendar quarter for which Underwritten Net Cash Flow is determined (or
such other date for which Underwritten Net Cash Flow is determined) the excess of: (a) the sum of: (i) annualized actual in
place base rents received by Borrower under bona fide Leases at the Property with Tenants in occupancy, open for business and paying
full, unabated rent as of the date of such calculation and actual percentage rents received by Borrower under such Leases for the twelve
(12) months preceding such calculation; plus (ii) for the twelve (12) month period preceding the month in which such Underwritten
Net Cash Flow is calculated, (x) monthly recoveries actually received by Borrower under bona fide existing Leases at the Property
during such twelve (12) month calculation period and (y) actual rent and revenue received by Borrower from other sources at the
Property to the extent such receipts are recurring in nature and derived from ordinary course operations of the Property for such twelve
month calculation period; over (b) for the twelve (12) month period preceding the month in which such Underwritten Net Cash Flow
is calculated, Operating Expenses over such twelve months, in each case adjusted to reflect Lender’s determination of: (i) a
vacancy factor equal to the greater of (A) the actual vacancy rate at the Property, and (B) 5% of the rentable area of the
Property; (ii) intentionally omitted; (iii) subtraction of (A) an imputed capital improvement requirement amount equal
to $0.20 per rentable square foot at the Property per annum (regardless of whether a reserve therefor is required hereunder or the amount
of such reserve), and (B) an imputed tenant improvement and leasing commission requirement amount equal to $0.70 per rentable square
foot at the Property per annum (regardless of whether a reserve therefor is required hereunder or the amount of such reserve); (iv) an
adjustment so that property management fees are equal to the greater of four percent (4%) of Rents and the property management fees actually
paid under the Management Agreement; (v) exclusion of (X) amounts representing non-recurring items and (Y) amounts received
from (1) Tenants not currently in occupancy and paying full, unabated rent, (2) Tenants affiliated with Borrower or Guarantor,
(3) Tenants in default or in bankruptcy, (4) Tenants under month-to-month Leases, (5) Tenants under Leases where the term
is set to expire in the next two (2) succeeding calendar quarters or (6) Tenants under Leases where the Tenant thereunder has
a renewal option and has failed to exercise such renewal option within the time period set forth in the Lease or has given notice of
intent to vacate (the foregoing clauses (1) through (6) shall be referred to herein, individually and/or collectively (as the
context shall require), as “Tenant Adjustment Event(s)”); (vi) Taxes and Insurance Premiums payable for
the twelve (12) month period succeeding such calculation (or imputed Insurance Premiums to the extent an Acceptable Blanket Policy is
in effect with respect to the Policies required hereunder); and (vii) such other adjustments deemed necessary by Lender based upon
Lender’s reasonable underwriting criteria and Lender’s reasonable determination of Rating Agency underwriting and evaluation
criteria. Lender’s calculation of Underwritten Net Cash Flow shall be final absent manifest error.


 






    20


     


    

 



 


“U.S. Obligations”
shall mean securities evidencing an obligation to timely pay principal and/or interest in a full and timely manner that are (i) direct
obligations of the United States of America for the payment of which its full faith and credit is pledged, and (ii) not subject to
prepayment, call or early redemption.


 


“Yield Maintenance
Amount” shall mean the present value, as of the Repayment Date, of the remaining scheduled payments of principal and interest
from the Repayment Date through the Stated Maturity Date (including any balloon payment) determined by discounting such payments at the
Discount Rate, less the amount of principal being prepaid on the Repayment Date.


 


“Zoning Report”
shall mean that certain Zoning Compliance Report dated as of November 3, 2021, prepared by American Zoning Services and delivered
to Lender in connection with the Closing of the Loan.


 


Section 1.2     Index
of Other Definitions. The following terms are defined in the sections or Loan Documents
as indicated below:


  


“Acceptable Blanket Policy” - 5.1.1(c)


“Accounts” - 6.1


“Act” - Schedule V


“Actual OpEx” - 4.9.8


“Agreement” - Introductory Paragraph


“Anti-Corruption Obligation” - 4.33


“Approved Annual Budget” - 4.9.5


“Approved Extraordinary Operating Expense” - 4.9.6


“Approved Monthly BI Expenses” - 5.4(f)


“Altitude Trampoline Park Lease” - 1.1 (Definition
of “Lease Sweep Lease”)


“Ashley Furniture Lease” - 1.1 (Definition of “Lease
Sweep Lease”)


“Available Cash” - 6. 16.1





“Bail-In Action” - 10.26





“Bail-In Legislation” - 10.26





“Borrower” - Introductory Paragraph


“Borrower’s Recourse Liabilities” - 10.1





“Broker” - 10.19





“Capital Expenditure Account” - 6.5.1





“Capital Expenditure Funds” - 6.5.1





“Cash Collateral Account” - 6. 12





“Cash Collateral Funds” - 6.12





“Cash Management Accounts” - 6.17





“Casualty” - 5.2





“Casualty and Condemnation Account” - 6.11





“Casualty and Condemnation Funds” - 6.11





“Casualty Consultant” - 5.4(b)(iii)





“Casualty Retainage” - 5.4(b)(iv)





“Clearing Account” - 6.1





“Clearing Bank” - 6.1





“Condemnation Proceeds” - 5.4(b)





“Covered Disclosure Information” - 9.2(b)


 






    21


     


    

 


“Debt Service Account” - Cash Management Agreement


“Defeasance Collateral” - 2.4.2(a)(iii)


“Defeasance Lockout Expiration Date” - 2.4.2(a)


“Defeasance Security Agreement” - 2.4.2(a)(iii)


“Disclosure Document” - 9.2(a)


“Easements” - 3.1.11


“EEA Financial Institution” - 10.26


“EEA Member Country” - 10.26


“EEA Resolution Authority” - 10.26


“Embargoed Person” - 4.32(c)


“Equipment” - Mortgage


“ERISA” - 4.31


“EU Bail-In Legislation Schedule” - 10.26


“Event of Default” - 8.1


“Exchange Act” - 9.2(a)





“Exchange Act Filing” - 9.1(d)


“Executive Order 13224” - 4.32(b)


“Extraordinary Operating Expense” - 4.9.6


“Flood Insurance Acts” - 5.1.1(a)(i)





“Government Lists” - 4.32(b)





“Improvements” - Mortgage


“Increased Costs” - 10.24.1


“Indemnified Liabilities” - 4.30


“Initial Interest Period” - 2.3.1


“Insurance Account” - 6.4.1


“Insurance Funds” - 6.4.1


“Insurance Premiums” - 5.1.1(b)


“Insurance Proceeds” - 5.4(b)


“Intellectual Property” - 3.1.33


“Interest Period” - 2.3.2


“Lease Sweep Account” - 6.13.1


“Lease Sweep Funds” - 6.13.1


“Lease Termination Payments” - 6.6.1(b)(i)


“Lender” - Introductory Paragraph


“Lender Group” - 9.2(b)


“Liabilities” - 9.2(b)


“Licenses” - 3.1.9


“Liquidated Damages Amount” - 2.4.5(b)


“Management Fee Cap” - 1.1 (Definition of “Monthly
Operating Expense Budgeted Amount”)


“Monthly Interest Payment Amount” - 2.3.1


“Monthly Rollover Deposit” – 6.6.1(a)


“Net Proceeds” - 5.4(b)


“Net Proceeds Deficiency” - 5.4(b)(vi)


“New Mezzanine Loan” - 9.3.2


“New Mezzanine Loan Borrower” - 9.3.2


“Note” - 2.1.3


“Notice” - 10.6


“OFAC” - 4.32(b)


 






    22


     


    

 


“OpEx Overpayment Amount” - 4.9.8


“Other Taxes” - 10.24.3


“Patriot Act Offense” - 4.32(b)


“Permitted Indebtedness” - 4.21


“Permitted Investments” - Cash Management Agreement


“Permitted Transfer” - 7.2


“PML” - 5.1.1(a)


“Policies” - 5.1.1(b)


“Proscribed Person” - 4.32(b)


“Qualified Carrier” - 5.1.1(i)


“Radius” - 5.1.1(c)


“Real Estate Taxes” - 1.1 (Definition of “Taxes”)


“Release Date” - 2.4.2(a)(i)


“Remaining Rent Abatement Amount” – 1.1 (Definition
of Occupancy Conditions)


“Required Records” - 4.9.7


“Required Repairs” - 6.2.1


“Required Repairs Account” - 6.2.1


“Required Repairs Funds” - 6.2.1


“Review Waiver” - 10.3(b)


“Rollover Account” - 6.6.1(a)


“Rollover Cap” – 6.6.1(a)


“Rollover Funds” - 6.6.1(a)


“Secondary Market Transaction” - 9.1(a)


“Securities” - 9.1(a)


“Securities Act” - 9.2(a)


“Securitization” - 9.1(a)


“SEL” - 5.1.1(a)(i)


“Servicer” - 10.21


“Servicing Agreement” - 10.21


“SFHA” - 5.1.1(a)(i)


“Sole Member” - Schedule V


“Special Member” - Schedule V


“Special Purpose Bankruptcy Remote Entity” - Schedule
V


“Springing Recourse Event” - 10.1


“Successor Borrower” - 2.4.2(b)


“Tax Account” - 6.3.1


“Tax Funds” - 6.3.1


“Tenant Adjustment Event(s)” - 1.1 (Definition
of Underwritten Net Cash Flow)


“Transfer” - 4.2


“Transfer and Assumption” - 7.1


“Transferee Borrower” - 7.1


“Transferee Guarantor” - 7.1


“Underwriter Group” - 9.2(b)


“Unpaid TILC Obligation Amount” - 1.1 (Definition
of Occupancy Conditions)


“Updated Information” - 9.1(b)(i)


“Upfront Rollover Deposit” – 6.6.1(a)


“Write-Down and Conversion Powers” - 10.26


 






    23


     


    

 


Section 1.3   Principles
of Construction. All references to sections and schedules are to sections and schedules
in or to this Agreement unless otherwise specified. Unless otherwise specified, the words “hereof,” “herein”
and “hereunder” and words of similar import when used in this Agreement or any other Loan Document shall refer to this Agreement
or such other Loan Document as a whole and not to any particular provision hereof or thereof. When used in this Agreement or any other
Loan Document, the word “including” shall mean “including but not limited to”. Unless otherwise specified, all
meanings attributed to defined terms herein shall be equally applicable to both the singular and plural forms of the terms so defined.


 


Article 2


 


THE
LOAN


 


Section 2.1   The
Loan.


 


2.1.1      Agreement
to Lend and Borrow. Subject to and upon the terms and conditions set forth herein, Lender
shall make the Loan to Borrower and Borrower shall accept the Loan from Lender on the Closing Date.


 


2.1.2      Single
Disbursement to Borrower. Borrower shall receive only one borrowing hereunder in respect
of the Loan and any amount borrowed and repaid hereunder in respect of the Loan may not be reborrowed.


  


2.1.3      The
Note. The Loan shall be evidenced by that certain Promissory Note of even date herewith,
in the stated principal amount of Thirteen Million Two Hundred Fifty Thousand and No/100 Dollars ($13,250,000.00) executed by Borrower
and payable to the order of Lender in evidence of the Loan (as the same may hereafter be amended, supplemented, restated, increased,
extended or consolidated from time to time, the “Note”) and shall be repaid in accordance with the terms of
this Agreement, the Note and the other Loan Documents.


 


2.1.4      Use
of Proceeds. Borrower shall use proceeds of the Loan to (i) pay and discharge any existing
loans relating to the Property, (ii) pay all past-due Taxes, Insurance Premiums and Other Charges, if any, in respect of the
Property, (iii) make initial deposits of the Reserve Funds, (iv) pay costs and expenses incurred in connection with the closing
of the Loan, and (v) to the extent any proceeds remain after satisfying clauses (i) through (iv) above, for such
lawful purpose as Borrower shall designate, provided such purpose does not violate the terms of any Loan Documents.


 


Section 2.2   Interest
Rate.


 


2.2.1      Interest
Rate. Interest on the Outstanding Principal Balance shall accrue throughout the Term at
the Interest Rate.


 


2.2.2      Default
Rate. In the event that, and for so long as, any Event of Default shall have occurred and
be continuing, the Outstanding Principal Balance and, to the extent not prohibited by applicable law, all other portions of the Debt,
shall accrue interest at the Default Rate, calculated from the date such payment was due or such Default shall have occurred without
regard to any grace or cure periods contained herein. Interest at the Default Rate shall accrue and be payable and included as part of
the Debt regardless of any demand, and without limiting the foregoing shall be paid immediately upon demand, which demand may be made
as frequently as Lender shall elect, to the extent not prohibited by applicable law.


 






    24


     


    

 


2.2.3      Interest
Calculation. Interest on the Outstanding Principal Balance shall be calculated by multiplying
(A) the actual number of days elapsed in the period for which the calculation is being made by (B) a daily rate based on a
three hundred sixty (360) day year (that is, the Interest Rate expressed as an annual rate divided by 360) by (C) the Outstanding
Principal Balance. The accrual period for calculating interest due on each Monthly Payment Date shall be the Interest Period immediately
prior to such Monthly Payment Date.


 


2.2.4      Usury
Savings. This Agreement and the other Loan Documents are subject to the express condition
that at no time shall Borrower be required to pay interest on the Outstanding Principal Balance at a rate which could subject Lender
to either civil or criminal liability as a result of being in excess of the Maximum Legal Rate. If by the terms of this Agreement or
the other Loan Documents, Borrower is at any time required or obligated to pay interest on the Outstanding Principal Balance at a rate
in excess of the Maximum Legal Rate, the Interest Rate shall be deemed to be immediately reduced to the Maximum Legal Rate and all previous
payments in excess of the Maximum Legal Rate shall be deemed to have been payments in reduction of principal and not on account of the
interest due hereunder. All sums paid or agreed to be paid to Lender for the use, forbearance, or detention of the sums due under the
Loan, shall, to the extent permitted by applicable law, be amortized, prorated, allocated and spread throughout the full stated term
of the Loan until payment in full so that the rate or amount of interest on account of the Loan does not exceed the Maximum Legal Rate
from time to time in effect and applicable to the Loan for so long as the Loan is outstanding.


 


Section 2.3   Loan
Payments.


 


2.3.1      Payments.
On the date hereof, Borrower shall pay interest on the unpaid Outstanding Principal Balance from the Closing Date through and including
December 5, 2021 (the “Initial Interest Period”). On January 6, 2022 and each Monthly Payment Date
thereafter through and including the Monthly Payment Date immediately preceding the Amortization Commencement Date, Borrower shall make
a payment of interest on the Outstanding Principal Balance accrued at the Interest Rate during the Interest Period immediately preceding
such Monthly Payment Date (the “Monthly Interest Payment Amount”). On the Amortization Commencement Date and
each Monthly Payment Date thereafter during the Term, Borrower shall make a payment of principal and interest equal to the Monthly Debt
Service Payment Amount. The Monthly Debt Service Payment Amount shall be applied first to accrued and unpaid interest and the balance
to the Outstanding Principal Balance. Borrower shall also pay to Lender all amounts required in respect of Reserve Funds as set forth
in Article 6 hereof.


 


2.3.2      Payments
Generally. After the Initial Interest Period, each interest accrual period thereafter (each,
an “Interest Period”) shall commence on the sixth (6th) day of each calendar month during the Term
and shall end on and include the fifth (5th) day of the next occurring calendar month. For purposes of making payments hereunder,
but not for purposes of calculating interest accrual periods, if the day on which such payment is due is not a Business Day, then amounts
due on such date shall be due on the immediately preceding Business Day. Lender shall have the right from time to time, in its sole discretion,
upon not less than ten (10) Business Days prior written notice to Borrower, to change the Monthly Payment Date to a different calendar
day and, if requested by Lender, Borrower shall promptly execute an amendment to this Agreement to evidence such change; provided, however,
that if Lender shall have elected to change the Monthly Payment Date as aforesaid, Lender shall have the option, but not the obligation,
to adjust the Interest Period accordingly. With respect to payments of principal due on the Maturity Date, interest shall be payable
at the Interest Rate, through and including the day immediately preceding such Maturity Date. All amounts due pursuant to this Agreement
and the other Loan Documents shall be payable without setoff, counterclaim, defense or any other deduction whatsoever.


 






    25


     


    

 


2.3.3      Payment
on Maturity Date. Borrower shall pay to Lender on the Maturity Date the Outstanding Principal
Balance, all accrued and unpaid interest and all other amounts due hereunder and under the Note, the Mortgage and the other Loan Documents.


 


2.3.4      Late
Payment Charge. If any principal, interest or any other sum due under the Loan Documents
(other than the Outstanding Principal Balance due and payable on the Maturity Date) is not paid by Borrower on the date on which it is
due, Borrower shall pay to Lender upon demand an amount equal to the lesser of five percent (5%) of such unpaid sum or the maximum amount
permitted by applicable law in order to defray the expense incurred by Lender in handling and processing such delinquent payment and
to compensate Lender for the loss of the use of such delinquent payment. Any such amount shall be secured by the Mortgage and the other
Loan Documents to the extent permitted by law.


 


2.3.5      Method
and Place of Payment.


 


(a)      Except
as otherwise specifically provided herein, all payments and prepayments under this Agreement and the Note shall be made to Lender not
later than 2:00 p.m., New York City time, on the date when due and shall be made in lawful money of the United States of America in immediately
available funds at Lender’s office or at such other place as Lender shall from time to time designate, and any funds received by
Lender after such time shall, for all purposes hereof, be deemed to have been paid on the next succeeding Business Day.


 


(b)      Whenever
any payment to be made hereunder or under any other Loan Document shall be stated to be due on a day which is not a Business Day, the
due date thereof shall be the immediately preceding Business Day.


 


(c)      All
payments required to be made by Borrower hereunder or under the Note or the other Loan Documents shall be made irrespective of, and without
deduction for, any setoff, claim or counterclaim and shall be made irrespective of any defense thereto.


 


Section 2.4   Prepayments.


 


2.4.1      Prepayments.
Except as otherwise provided herein, Borrower shall not have the right to prepay the Loan in whole or in part prior to the Stated Maturity
Date.


 






    26


     


    

 


2.4.2      Defeasance.


 


(a)      Conditions
to Defeasance. Provided no Event of Default has occurred and is continuing, at any time after the date (the “Defeasance
Lockout Expiration Date”) which is the earlier of: (A) two (2) years after the “startup day,” within
the meaning of Section 860G(a)(9) of the Code, of the final “real estate mortgage investment conduit,” established
within the meaning of Section 860D of the Code, that holds any note that evidences all or any portion of the Loan or (B) three
(3) years after the date hereof, Borrower may cause the release of the Property (in whole but not in part) from the Lien of the
Mortgage and the other Loan Documents upon the satisfaction of the following conditions:


 


(i)      not
less than sixty (60) days prior written notice shall be given to Lender specifying a date (the “Release Date”)
on which the Defeasance Collateral is to be delivered, such Release Date to occur only on a Monthly Payment Date;


 


(ii)      all
accrued and unpaid interest and all other sums due under the Note and under the other Loan Documents up to the Release Date, including,
without limitation, all costs and expenses incurred by Lender or its agents in connection with such release (including, without limitation,
the fees and expenses incurred by attorneys and accountants in connection with the review of the proposed Defeasance Collateral and the
preparation of the Defeasance Security Agreement and related documentation), shall be paid in full on or prior to the Release Date; and


 


(iii)      Borrower
shall deliver to Lender on or prior to the Release Date:


 


(A)      an
amount equal to that which is sufficient to purchase U.S. Obligations that provide for payments (1) on or prior to, but as close
as possible to and including, all successive scheduled Monthly Payment Dates after the Release Date through the Stated Maturity Date,
and (2) in amounts equal to or greater than the Monthly Debt Service Payment Amount or the Monthly Interest Payment Amount, as applicable,
through and including the Stated Maturity Date together with payment in full of the Outstanding Principal Balance as of the Stated Maturity
Date (the “Defeasance Collateral”), each of which shall be duly endorsed by the holder thereof as directed
by Lender or accompanied by a written instrument of transfer in form and substance wholly satisfactory to Lender (including, without
limitation, such instruments as may be required by the depository institution holding such securities to effectuate book-entry transfers
and pledges through the book-entry facilities of such institution) in order to create a first priority security interest therein in favor
of the Lender in conformity with all applicable state and federal laws governing granting of such security interests;


 


(B)      a
pledge and security agreement, in form and substance satisfactory to Lender in its sole discretion, creating a first priority security
interest in favor of Lender in the Defeasance Collateral (the “Defeasance Security Agreement”), which shall
provide, among other things, that any payments generated by the Defeasance Collateral shall be paid directly to Lender and applied by
Lender in satisfaction of all amounts then due and payable hereunder and any excess received by Lender from the Defeasance Collateral
over the amounts payable by Borrower hereunder or under the Note shall be refunded to Borrower promptly after each Monthly Payment Date;


 


(C)      a
certificate of Borrower certifying that all of the requirements set forth in this Section 2.4.2 have been satisfied;


 






    27


     


    

 


(D)      an
opinion of counsel for Borrower in form and substance and delivered by counsel satisfactory to Lender in its sole discretion stating,
among other things, that (1) Lender has a perfected first priority security interest in the Defeasance Collateral and that the Defeasance
Security Agreement is enforceable against Borrower in accordance with its terms; and (2) that any REMIC Trust formed pursuant to
a Securitization will not fail to maintain its status as a “real estate mortgage investment conduit” within the meaning of
Section 860D of the Code as a result of such defeasance;


 


(E)      a
Rating Agency Confirmation from each applicable Rating Agency or each such Rating Agency as is required by Lender;


 


(F)      a
certificate from a firm of independent public accountants acceptable to Lender certifying that the Defeasance Collateral is sufficient
to satisfy the provisions of Section 2.4.2(a)(iii)(A) above;


 


(G)      such
other certificates, documents or instruments as Lender may reasonably require; and


 


(H)      in
connection with the conditions set forth above in this Section 2.4.2(a)(iii), Borrower hereby appoints Lender as its agent
and attorney in fact for the purpose of using the amounts delivered pursuant to Section 2.4.2(a)(iii)(A) above to purchase
the Defeasance Collateral.


 


(b)      Successor
Borrower. Upon the defeasance of the Loan under this Section 2.4.2, Borrower may, or at the option of Lender shall, assign
all of its Obligations, together with the pledged Defeasance Collateral, to a successor entity designated by Lender in its sole discretion
(in each case, the “Successor Borrower”). Lender shall have the right to establish or designate the Successor
Borrower and to purchase, or cause to be purchased, the Defeasance Collateral, which rights may be exercised in Lender’s sole discretion
and shall be retained by the Lender named herein notwithstanding the transfer or securitization of the Loan. Such successor entity shall
execute an assumption agreement in form and substance satisfactory to Lender in its sole discretion pursuant to which it shall assume
Borrower’s Obligations and the Defeasance Security Agreement. As conditions to such assignment and assumption, Borrower shall (i) deliver
to Lender an opinion of counsel in form and substance and delivered by counsel satisfactory to Lender in its sole discretion stating,
among other things, that such assumption agreement is enforceable against Borrower and such successor entity in accordance with its terms
and that the Note, the Defeasance Security Agreement and the other Loan Documents, as so assumed, are enforceable against such successor
entity in accordance with their respective terms, and (ii) pay all costs and expenses incurred by Lender or its agents in connection
with such assignment and assumption (including, without limitation, the review of the proposed transferee and the preparation of the
assumption agreement and related documentation). Additionally, Borrower shall pay all costs and expenses incurred by Successor Borrower,
including attorneys’ fees and expenses, incurred in connection therewith. In connection with a transfer of the Defeasance Collateral
to the Successor Borrower, Borrower shall, as a condition to such defeasance, deliver or cause to be delivered a non-consolidation opinion
in form and substance, and from counsel, satisfactory to Lender and the Rating Agencies. Upon such assumption, Borrower shall be relieved
of its Obligations hereunder, under the other Loan Documents and under the Defeasance Security Agreement other than those Obligations
which are specifically intended to survive the termination, satisfaction or assignment of this Agreement or the exercise of Lender’s
rights and remedies hereunder.


 






    28


     


    

 


(c)      Appointment
as Attorney in Fact. Upon the defeasance of the Loan in accordance with clauses (a) and (b) of this Section 2.4.2,
Borrower shall have no further right to prepay the Note pursuant to the other provisions of this Section 2.4.2 or otherwise,
except pursuant to Section 2.4.3. In connection with the conditions set forth in this Section 2.4.2, Borrower hereby
appoints Lender as its agent and attorney-in-fact for the purpose of purchasing the Defeasance Collateral with funds provided by Borrower.
Borrower shall pay any and all expenses incurred in the purchase of the Defeasance Collateral and any revenue, documentary stamp or intangible
taxes or any other tax or charge due in connection with the transfer of the Note or otherwise required to accomplish the agreements of
this Section 2.4.2.


 


2.4.3      Open
Prepayment. Notwithstanding anything to the contrary contained herein, and provided that
Borrower shall deliver to Lender a Prepayment Notice, Borrower may prepay the entire principal balance of the Note and any other amounts
outstanding under the Note, this Agreement, or any of the other Loan Documents, without payment of the Prepayment Fee or any other prepayment
premium, penalty or fee, on any Business Day on or after the Open Prepayment Date. If such prepayment is not made on a Monthly Payment
Date, Borrower shall also pay interest that would have accrued on the principal balance of the Note to, but not including, the next Monthly
Payment Date.


 


2.4.4      Mandatory
Prepayments. If Lender is not obligated to make Net Proceeds available to Borrower for Restoration,
on the next occurring Monthly Payment Date following the date on which (a) Lender actually receives any Net Proceeds, and (b) Lender
has determined that such Net Proceeds shall be applied against the Debt, Borrower shall prepay, or authorize Lender to apply Net Proceeds
as a prepayment of, the Debt in an amount equal to one hundred percent (100%) of such Net Proceeds. Except during an Event of Default,
such Net Proceeds shall be applied by Lender as follows in the following order of priority: First, to all amounts (other than
principal and interest) then due and payable under the Loan Documents, including any costs and expenses of Lender in connection with
such prepayment; Second; accrued and unpaid interest at the Interest Rate; and Third, to principal. Notwithstanding anything
herein to the contrary, so long as no Event of Default is continuing, no Prepayment Fee or any other prepayment premium, penalty or fee
shall be due in connection with any prepayment made pursuant to this Section 2.4.4. Any partial principal prepayment under
this Section 2.4.4 shall be applied to the last payments of principal due under the Loan.


 


2.4.5      Prepayments
After Default.


 


(a)      If,
during the continuance of an Event of Default or from and after an acceleration of the Obligations pursuant to the terms of this Agreement,
by operation of law or otherwise, payment of all or any part of the Debt is tendered by or on behalf of Borrower or Guarantor and accepted
by Lender or is otherwise recovered by Lender (including through application of any Reserve Funds), such tender or recovery shall be
deemed to be a voluntary prepayment by Borrower in violation of the prohibition against prepayment set forth in Section 2.4.1
hereof, and the Debt shall include, all of: (i) all accrued interest at the Default Rate and, if such tender and acceptance
is not made on a Monthly Payment Date, interest that would have accrued on the Debt to, but not including, the next Monthly Payment Date,
(ii) an amount equal to the Prepayment Fee, and (iii) in the event the payment occurs on or prior to the Defeasance Lockout
Expiration Date, the Liquidated Damages Amount.


 






    29


     


    

 


(b)      IF
DURING THE CONTINUANCE OF AN EVENT OF DEFAULT, ALL OR ANY PART OF THE LOAN IS REPAID ON OR PRIOR TO THE DEFEASANCE LOCKOUT EXPIRATION
DATE, THEN BORROWER SHALL PAY TO LENDER, AS LIQUIDATED DAMAGES AND NOT AS A PENALTY, AND IN ADDITION TO ANY AND ALL OTHER SUMS AND FEES
PAYABLE UNDER THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS, AN AMOUNT EQUAL TO FIVE PERCENT (5%) OF THE PRINCIPAL AMOUNT BEING REPAID
(THE “LIQUIDATED DAMAGES AMOUNT”).


 


Section 2.5   Release
of Property.


 


2.5.1      Release
Upon Defeasance. If Borrower has elected to defease the Note and the requirements of Section 2.4.2
have been satisfied, the Property shall be released from the Lien of the Mortgage and the other Loan Documents, and the Defeasance
Collateral pledged pursuant to the Defeasance Security Agreement shall constitute the only collateral which shall secure the Note and
all other Obligations. In connection with the release of the Lien, Borrower shall submit to Lender, not less than thirty (30) days prior
to the Release Date (or such shorter time as is acceptable to Lender in its sole discretion), a release of Lien (and related Loan Documents)
for execution by Lender. Such release shall be in a form appropriate in the jurisdiction in which the Property is located and contain
standard provisions protecting the rights of the releasing lender. In addition, Borrower shall provide all other documentation Lender
reasonably requires to be delivered by Borrower in connection with such release, together with an Officer’s Certificate certifying
that such documentation (i) is in compliance with all Legal Requirements, and (ii) will effect such release in accordance with
the terms of this Agreement. Borrower shall pay all costs, taxes and expenses associated with the release of the Lien of the Mortgage,
including Lender’s reasonable attorneys’ fees. Borrower, pursuant to the Defeasance Security Agreement, shall authorize and
direct that the payments received from Defeasance Collateral be made directly to Lender and applied to satisfy the Obligations, including
payment in full of the Outstanding Principal Balance as of the Stated Maturity Date.


 


2.5.2      Release
on Payment in Full. Lender shall, upon the written request and at the expense of Borrower,
upon payment in full of the Debt in accordance with the terms and provisions of the Loan Documents, release the Lien of the Mortgage
and cause the trustee under the Mortgage to reconvey the Property to Borrower; provided, that, in no event shall such Lien (or any other
security for the Loan) be released, if, at the time of such purported repayment in full of the Debt, there exists any known matter (including,
without limitation, any pending Lien or litigation) that is (or would be, absent such purported release or termination) reasonably likely
to result in a claim by Lender (as such term is used in Section 4.30 hereof) for reimbursement and/or indemnification pursuant
to the provisions of this Agreement and the other Loan Documents, until Lender has determined such reimbursement or indemnification obligation
have been satisfied in full. In connection with the release of the Lien, Borrower shall submit to Lender, not less than thirty (30) days
prior to the Repayment Date (or such shorter time as is acceptable to Lender in its sole discretion), a release of Lien (and related
Loan Documents) for execution by Lender. Such release shall be in a form appropriate in the jurisdiction in which the Property is located
and contain standard provisions protecting the rights of the releasing lender. In addition, Borrower shall provide all other documentation
Lender reasonably requires to be delivered by Borrower in connection with such release, together with an Officer’s Certificate
certifying that such documentation (i) is in compliance with all Legal Requirements, and (ii) will effect such release in accordance
with the terms of this Agreement. Borrower shall pay all costs, taxes and expenses associated with the release of the Lien of the Mortgage,
including Lender’s reasonable attorneys’ fees.


 






    30


     


    

 


Article 3


 


REPRESENTATIONS
AND WARRANTIES


 


Section 3.1   Borrower
Representations. Borrower represents and warrants that, except to the extent (if any) disclosed
on Schedule IV hereto with reference to a specific subsection of this Section 3.1:


 


3.1.1      Organization;
Special Purpose. Borrower is duly organized, validly existing and in good standing with
full power and authority to own its assets and conduct its business, and is duly qualified and in good standing in the jurisdiction in
which the Property is located and in all jurisdictions in which the ownership or lease of its property or the conduct of its business
requires such qualification, and Borrower has taken all necessary action to authorize the execution, delivery and performance of this
Agreement and the other Loan Documents by it, and has the power and authority to execute, deliver and perform under this Agreement, the
other Loan Documents and all the transactions contemplated hereby. Borrower is a Special Purpose Bankruptcy Remote Entity.


 


3.1.2      Proceedings;
Enforceability. This Agreement and the other Loan Documents have been duly authorized, executed
and delivered by Borrower and constitute a legal, valid and binding obligation of Borrower, enforceable against Borrower in accordance
with their respective terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other
similar laws affecting the enforcement of creditors’ rights generally, and by general principles of equity (regardless of whether
such enforceability is considered in a proceeding in equity or at law). The Loan Documents are not subject to any right of rescission,
set-off, counterclaim or defense by Borrower or Guarantor including the defense of usury, nor would the operation of any of the terms
of the Loan Documents, or the exercise of any right thereunder, render the Loan Documents unenforceable, and none of Borrower or Guarantor
have asserted any right of rescission, set-off, counterclaim or defense with respect thereto.


 


3.1.3      No
Conflicts. The execution and delivery of this Agreement and the other Loan Documents by
Borrower and the performance of its Obligations hereunder and thereunder will not conflict with any provision of any law or regulation
to which Borrower is subject, or conflict with, result in a breach of, or constitute a default under, any of the terms, conditions or
provisions of any of Borrower’s organizational documents or any agreement or instrument to which Borrower is a party or by which
it is bound, or any order or decree applicable to Borrower, or result in the creation or imposition of any Lien on any of Borrower’s
assets or property (other than pursuant to the Loan Documents).


 


3.1.4      Litigation.
There is no action, suit, proceeding or investigation pending or, to the best of Borrower’s knowledge, threatened against Borrower,
Guarantor, the Manager or the Property in any court or by or before any other Governmental Authority which, if adversely determined,
might materially and adversely affect the condition (financial or otherwise) or business of Borrower (including the ability of Borrower
to carry out the transactions contemplated by this Agreement), Guarantor, Manager or the condition or ownership of the Property.


 






    31


     


    

 


3.1.5      Agreements.
Borrower is not a party to any agreement or instrument or subject to any restriction which might materially and adversely affect Borrower
or the Property, or Borrower’s business, properties or assets, operations or condition, financial or otherwise. Borrower is not
in default with respect to any order or decree of any court or any order, regulation or demand of any Governmental Authority, which default
might have consequences that would materially and adversely affect the condition (financial or other) or operations of Borrower or its
properties or might have consequences that would adversely affect its performance hereunder. Borrower is not in default in any material
respect in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any Permitted Encumbrance
or any other agreement or instrument to which it is a party or by which it or the Property is bound.


 


3.1.6      Consents.
No consent, approval, authorization or order of any court or Governmental Authority is required for the execution, delivery and performance
by Borrower of, or compliance by Borrower with, this Agreement or the other Loan Documents or the consummation of the transactions contemplated
hereby, other than those which have been obtained by Borrower.


 


3.1.7      Property;
Title.


 


(a)      Borrower
has good, marketable and insurable fee simple title to the real property comprising part of the Property and good title to the balance
of the Property owned by it, free and clear of all Liens whatsoever except the Permitted Encumbrances. The Mortgage, when properly recorded
in the appropriate records, together with any Uniform Commercial Code financing statements required to be filed in connection therewith,
will create (i) a valid, first priority, perfected Lien on Borrower’s interest in the Property, subject only to Permitted
Encumbrances, and (ii) perfected security interests in and to, and perfected collateral assignments of, all personalty (including
the Leases), all in accordance with the terms thereof, in each case subject only to the Permitted Encumbrances. There are no mechanics’,
materialman’s or other similar Liens or claims which have been filed for work, labor or materials affecting the Property which
are or may be Liens prior to, or equal or coordinate with, the Lien of the Mortgage. None of the Permitted Encumbrances, individually
or in the aggregate, (a) materially interfere with the benefits of the security intended to be provided by the Mortgage and this
Agreement, (b) materially and adversely affect the value of the Property, (c) impair the use or operations of the Property
(as currently used), or (d) impair Borrower’s ability to pay its Obligations in a timely manner.


 


(b)      All
transfer taxes, deed stamps, intangible taxes or other amounts in the nature of transfer taxes required to be paid under applicable Legal
Requirements in connection with the transfer of the Property to Borrower have been paid or are being paid simultaneously herewith. All
mortgage, mortgage recording, stamp, intangible or other similar tax required to be paid under applicable Legal Requirements in connection
with the execution, delivery, recordation, filing, registration, perfection or enforcement of any of the Loan Documents, including the
Mortgage, have been paid or are being paid simultaneously herewith. All taxes and governmental assessments due and owing in respect of
the Property have been paid, or an escrow of funds in an amount sufficient to cover such payments has been established hereunder or are
insured against by the Title Insurance Policy.


 






    32


     


    

 


(c)      The
Property is comprised of one (1) or more parcels which constitute separate tax lots and do not constitute a portion of any other
tax lot not a part of the Property.


 


(d)      No
Condemnation or other proceeding has been commenced or, to Borrower’s best knowledge, is contemplated with respect to all or any
portion of the Property or for the relocation of roadways providing access to the Property.


 


(e)      There
are no pending or proposed special or other assessments for public improvements or otherwise affecting the Property, nor are there any
contemplated improvements to the Property that may result in such special or other assessments.


 


3.1.8      ERISA;
No Plan Assets. As of the date hereof and throughout the Term (i) Borrower, Guarantor
and the ERISA Affiliates do not sponsor, are not obligated to contribute to, and are not themselves an “employee benefit plan,”
as defined in Section 3(3) of ERISA or Section 4975 of the Code, (ii) none of the assets of Borrower or Guarantor
constitutes or will constitute “plan assets” of one or more such plans within the meaning of 29 C.F.R. Section 2510.3-101,
as modified in operation by Section 3(42) of ERISA, (iii) Borrower and Guarantor are not and will not be a “governmental
plan” within the meaning of Section 3(32) of ERISA, and (iv) transactions by or with Borrower or Guarantor are not and
will not be subject to state statutes regulating investment of, and fiduciary obligations with respect to, governmental plans. As of
the date hereof, neither Borrower, nor any ERISA Affiliate maintains, sponsors or contributes to or has any obligations with respect
to a “defined benefit plan” (within the meaning of Section 3(35) of ERISA) or a “multiemployer pension plan”
(within the meaning of Section 3(37)(A) of ERISA). Borrower has not engaged in any transaction in connection with which it
could be subject to either a material civil penalty assessed pursuant to the provisions of Section 502 of ERISA or a material tax
imposed under the provisions of Section 4975 of the Code.


 


3.1.9      Compliance.
Borrower and the Property (including, but not limited to the Improvements) and the use thereof comply in all material respects with all
applicable Legal Requirements, including parking, building and zoning and land use laws, ordinances, regulations and codes of any Governmental
Authority. Borrower is not in default or violation of any order, writ, injunction, decree or demand of any Governmental Authority, the
violation of which might materially adversely affect the condition (financial or otherwise) or business of Borrower. Borrower has not
committed any act which may give any Governmental Authority the right to cause Borrower to forfeit the Property or any part thereof or
any monies paid in performance of Borrower’s Obligations under any of the Loan Documents. The Property is used exclusively for
retail and other appurtenant and related uses. In the event that all or any part of the Improvements are destroyed or damaged, said Improvements
can be legally reconstructed to their condition prior to such damage or destruction, and thereafter exist for the same use without violating
any zoning or other ordinances applicable thereto and without the necessity of obtaining any variances or special permits. No legal proceedings
are pending or, to the knowledge of Borrower, threatened with respect to the zoning of the Property. Neither the zoning nor any other
right to construct, use or operate the Property is in any way dependent upon or related to any property other than the Property. All
certifications, permits, licenses and approvals, including without limitation, certificates of completion and occupancy permits required
of Borrower for the legal use, occupancy and operation of the Property for its current use (collectively, the “Licenses”),
have been obtained and are in full force and effect. The use being made of the Property is in conformity with the certificate of occupancy
issued for the Property and all other restrictions, covenants and conditions affecting the Property.


 






    33


     


    

 


3.1.10      Financial
Information. All financial data, including the statements of cash flow and income and operating
expense, that have been delivered to Lender in connection with the Loan (i) are true, complete and correct in all material respects,
(ii) accurately represent the financial condition of the Property as of the date of such reports, and (iii) have been prepared
in accordance with GAAP throughout the periods covered, except as disclosed therein. Borrower does not have any contingent liabilities,
liabilities for taxes, unusual forward or long-term commitments or unrealized or anticipated losses from any unfavorable commitments
that are known to Borrower and reasonably likely to have a materially adverse effect on the Property or the operation thereof, except
as referred to or reflected in said financial statements. Since the date of the financial statements, there has been no material adverse
change in the financial condition, operations or business of Borrower or the Property from that set forth in said financial statements.


 


3.1.11      Easements;
Utilities and Public Access. All easements, cross easements, licenses, air rights and rights-of-way
or other similar property interests (collectively, “Easements”), if any, necessary for the full utilization
of the Improvements for their intended purposes have been obtained, are described in the Title Insurance Policy and are in full force
and effect without default thereunder. The Property has rights of access to public ways and is served by water, sewer, sanitary sewer
and storm drain facilities adequate to service the Property for its intended uses. All public utilities necessary or convenient to the
full use and enjoyment of the Property are located in the public right-of-way abutting the Property, and all such utilities are connected
so as to serve the Property without passing over other property absent a valid irrevocable easement. All roads necessary for the use
of the Property for its current purpose have been completed and dedicated to public use and accepted by all Governmental Authorities.


 


3.1.12      Assignment
of Leases. The Assignment of Leases creates a valid assignment of, or a valid security interest
in, certain rights under the Leases, subject only to a license granted to Borrower to exercise certain rights and to perform certain
obligations of the lessor under the Leases, including the right to operate the Property. No Person other than Lender has any interest
in or assignment of the Leases or any portion of the Rents due and payable or to become due and payable thereunder.


 


3.1.13      Insurance.
Borrower has obtained and has delivered to Lender original or complete certified copies of all of the Policies, with all premiums prepaid
thereunder, reflecting the insurance coverages, amounts and other requirements set forth in this Agreement. No claims have been made
under any of the Policies, and no Person, including Borrower, has done, by act or omission, anything which would impair the coverage
of any of the Policies.


 


3.1.14      Flood
Zone. None of the Improvements on the Property are located in an area identified by the
Federal Emergency Management Agency as a special flood hazard area, or, if so located (i) the flood insurance required pursuant
to Section 5.1.1(a) hereof is in full force and effect with respect to the Property, and (ii) Borrower acknowledges
that it has received from Lender, at least ten (10) days prior to the Closing Date, the Standard Flood Hazard Determination Form,
and the Notice to the Borrower of Special Flood Hazards and Availability of Federal Disaster Relief Assistance, with respect to the Property.


 






    34


     


    

 


3.1.15      Physical
Condition. Except as may be expressly set forth in the Physical Conditions Report, the Property,
including all buildings, improvements, parking facilities, sidewalks, storm drainage systems, roofs, plumbing systems, HVAC systems,
fire protection systems, electrical systems, equipment, elevators, exterior sidings and doors, landscaping, irrigation systems and all
structural components, are in good condition, order and repair in all material respects; there exists no structural or other material
defects or damages in the Property, whether latent or otherwise, and Borrower has not received notice from any insurance company or bonding
company of any defects or inadequacies in the Property, or any part thereof, which would adversely affect the insurability of the same
or cause the imposition of extraordinary premiums or charges thereon or any termination or threatened termination of any policy of insurance
or bond.


 


3.1.16      Boundaries.
All of the Improvements which were included in determining the appraised value of the Property lie wholly within the boundaries and building
restriction lines of the Property, and no improvements on adjoining properties encroach upon the Property, and no easements or other
encumbrances affecting the Property encroach upon any of the Improvements, so as to affect the value or marketability of the Property,
except those which are set forth on the Survey and insured against by the Title Insurance Policy.


 


3.1.17      Leases.
The rent roll attached hereto as Schedule I is true, complete and correct and reflects the terms of any lease modifications,
waivers or deferrals agreed to by Borrower, and the Property is not subject to any Leases other than the Leases described in Schedule I.
Borrower is the owner and lessor of landlord’s interest in the Leases. No Person has any possessory interest in the Property or
right to occupy the same except under and pursuant to the provisions of the Leases. Except as set forth on the rent roll attached hereto
as Schedule I: (i) the Leases are in full force and effect and there are no defaults thereunder by either party beyond
any applicable notice or cure period, and there are no conditions that, with the passage of time or the giving of notice, or both, would
constitute defaults thereunder, (ii) the copies of the Leases delivered to Lender are true and complete in all material respects,
and there are no oral agreements with respect thereto, (iii) no Rent (excluding security deposits) has been paid more than one (1) month
in advance of its due date, (iv) all work to be performed by Borrower under each Lease has been performed as required and has been
accepted by the applicable Tenant, (v) any payments, free rent, partial rent, rebate of rent or other payments, credits, allowances
or abatements required to be given by Borrower to any Tenant has already been received by such Tenant, (vi) the Tenants under the
Leases have accepted possession of and are in actual occupancy of all of their respective demised Property and have commenced the payment
of full, unabated rent under the Leases, (vii) Borrower has delivered to Lender a true, correct and complete list of all security
deposits made by Tenants at the Property which have not been applied (including accrued interest thereon), all of which are held by Borrower
in accordance with the terms of the applicable Lease and applicable Legal Requirements, (viii) each Tenant under a Lease and any
guarantor of such Tenant’s obligations is free from bankruptcy or reorganization proceedings, (ix) no Tenant under any Lease
(or any sublease) is an Affiliate of Borrower, (x) the Tenants under the Leases are open for business and paying full, unabated
rent and no Tenant has requested to discontinue its business at its premises or has gone dark (or has noticed Borrower of its intent
to go dark) in all or a material portion of its leased premises, (xi) there are no brokerage fees or commissions due and payable
in connection with the leasing of space at the Property, and no such fees or commissions will become due and payable in the future in
connection with the Leases, including by reason of any extension of such Lease or expansion of the space leased thereunder, (xii) no
Tenant has assigned its Lease or sublet all or any portion of the premises demised thereby, no such Tenant holds its leased premises
under assignment or sublease, nor does anyone except such Tenant and its employees occupy such leased premises, (xiii) no Tenant
has informed Borrower or otherwise given notice (whether written or oral) that it intends to (or will seek to) “go dark”,
vacate, cease to occupy or cease to conduct business in the ordinary course at its leased premises or any portion thereof, pursuant to
any force majeure clause contained in its Lease or otherwise as a result of any pandemic, including, without limitation, the COVID-19
pandemic, (xiv) no Tenant has directly or indirectly (A) asserted any defense against the payment of any rent or other amounts
under its Lease or the performance of any other obligations under its Lease, (B) sought or given notice (whether written or oral)
that it intends to seek any relief or other concessions with respect to the payment of any rent or other amounts under its Lease or the
performance of any other obligations under its Lease or (C) made any other request for or otherwise given notice (whether written
or oral) that it intends to seek any amendment, deferral, forbearance, waiver or other modification of any term or provision of its Lease,
in any case, pursuant to any force majeure clause contained in its Lease or otherwise as a result of any pandemic, including, without
limitation, the COVID-19 pandemic and (xv) Borrower is not currently in discussions or negotiations (directly or indirectly) with
any Tenant with respect to, and no Tenant has requested in writing, any material amendment or modification of the Lease (including, without
limitation, any reduction, deferral or waiver in the rent or the term thereof or in any other amounts due thereunder). No Tenant under
any Lease has a right or option pursuant to such Lease or otherwise to purchase all or any part of the leased premises or the building
of which the leased premises are a part. There has been no prior sale, transfer or assignment, hypothecation or pledge of any Lease or
of the Rents received therein which is still in effect.


 






    35


     


    

 


3.1.18      Tax
Filings. To the extent required, Borrower has filed (or has obtained effective extensions
for filing) all federal, state, commonwealth, district and local tax returns required to be filed and has paid or made adequate provision
for the payment of all federal, state, commonwealth, district and local taxes, charges and assessments payable by Borrower. Borrower’s
tax returns (if any) properly reflect the income and taxes of Borrower for the periods covered thereby, subject only to reasonable adjustments
required by the Internal Revenue Service or other applicable tax authority upon audit.


 


3.1.19      No
Fraudulent Transfer. Borrower (i) has not entered into the transaction or any Loan
Document with the actual intent to hinder, delay, or defraud any creditor, and (ii) received reasonably equivalent value in exchange
for its Obligations under the Loan Documents. Giving effect to the Loan, the fair saleable value of Borrower’s assets exceeds and
will, immediately following the making of the Loan, exceed Borrower’s total liabilities, including subordinated, unliquidated,
disputed and contingent liabilities. The fair saleable value of Borrower’s assets is, and immediately following the making of the
Loan, will be, greater than Borrower’s probable liabilities, including the maximum amount of its contingent liabilities on its
debts as such debts become absolute and matured. Borrower’s assets do not and, immediately following the making of the Loan will
not, constitute unreasonably small capital to carry out its business as conducted or as proposed to be conducted. Borrower does not intend
to, and does not believe that it will, incur Indebtedness and liabilities (including contingent liabilities and other commitments) beyond
its ability to pay such Indebtedness and liabilities as they mature (taking into account the timing and amounts of cash to be received
by Borrower and the amounts to be payable on or in respect of the obligations of Borrower). No petition in bankruptcy has been filed
against Borrower or any constituent Person of Borrower, and neither Borrower nor any constituent Person of Borrower has ever made an
assignment for the benefit of creditors or taken advantage of any insolvency act for the benefit of debtors. Neither Borrower nor any
of its constituent Persons are contemplating either the filing of a petition by it under any state or federal bankruptcy or insolvency
laws or the liquidation of all or a major portion of Borrower’s assets or properties, and Borrower has no knowledge of any Person
contemplating the filing of any such petition against it or such constituent Persons.


 






    36


     


    

 


3.1.20      Federal
Reserve Regulations. No part of the proceeds of the Loan will be used for the purpose of
purchasing or acquiring any “margin stock” within the meaning of Regulation U of the Board of Governors of the Federal Reserve
System or for any other purpose which would be inconsistent with such Regulation U or any other Regulations of such Board of Governors,
or for any purposes prohibited by Legal Requirements or by the terms and conditions of this Agreement or the other Loan Documents.


 


3.1.21      Organizational
Chart. The organizational chart attached as Schedule III, relating to Borrower
and certain Affiliates and other parties, is true, complete and correct on and as of the date hereof. No Person, other than those Persons
shown on Schedule III, has any ownership interest in, or right of Control, directly or indirectly, in Borrower.


 


3.1.22      Organizational
Status. Borrower’s exact legal name is: MDR Franklin Square, LLC. Borrower is a single
member limited liability company, and the jurisdiction in which Borrower is organized is: Delaware. Borrower’s Tax I.D. number
is 30-0941840 and Borrower’s Delaware Organizational I.D. number is 6056816.


 


3.1.23      Bank
Holding Company. Borrower is not a “bank holding company” or a direct or indirect
subsidiary of a “bank holding company” as defined in the Bank Holding Company Act of 1956, as amended, and Regulation Y thereunder
of the Board of Governors of the Federal Reserve System.


 


3.1.24      No
Casualty. The Improvements have suffered no material casualty or damage which has not been
fully repaired and the cost thereof fully paid.


 


3.1.25      Purchase
Options. Neither the Property nor any part thereof are subject to any purchase options,
rights of first refusal, rights of first offer or other similar rights in favor of third parties.


 


3.1.26      FIRPTA.
Borrower is not a “foreign person” within the meaning of Sections 1445 or 7701 of the Code.


 


3.1.27      Investment
Company Act. Borrower is not (i) an “investment company” or a company “controlled”
by an “investment company” within the meaning of the Investment Company Act of 1940, as amended, or (ii) subject to
any other United States federal or state law or regulation which purports to restrict or regulate its ability to borrow money.


 


3.1.28      Fiscal
Year. Each fiscal year of Borrower commences on January 1.


 


3.1.29      Other
Debt. There is no indebtedness with respect to the Property or any excess cash flow or any
residual interest therein, whether secured or unsecured, other than Permitted Encumbrances and Permitted Indebtedness.


 






    37


     


    

 


3.1.30      Contracts.


 


(a)      Borrower
has not entered into, and is not bound by, any Major Contract which continues in existence, except those previously disclosed in writing
to Lender.


 


(b)      Each
of the Major Contracts is in full force and effect, there are no monetary or other material defaults by Borrower thereunder and, to the
best knowledge of Borrower, there are no monetary or other material defaults thereunder by any other party thereto. None of Borrower,
Manager or any other Person acting on Borrower’s behalf has given or received any notice of default under any of the Major Contracts
that remains uncured or in dispute.


 


(c)      Borrower
has delivered true, correct and complete copies of the Major Contracts (including all amendments and supplements thereto) to Lender.


 


(d)      No
Major Contract has as a party an Affiliate of Borrower. All fees and other compensation for services previously performed under the Management
Agreement have been paid in full.


 


3.1.31      Full
and Accurate Disclosure. No statement of fact made by Borrower in this Agreement or in any
of the other Loan Documents contains any untrue statement of a material fact or omits to state any material fact necessary to make statements
contained herein or therein not misleading. There is no material fact presently known to Borrower which adversely affects, nor as far
as Borrower can foresee, might adversely affect, the Property or the business, operations or condition (financial or otherwise) of Borrower
or Guarantor, including any Lease Sweep Lease or any Tenant under any Lease Sweep Lease.


 


3.1.32      Other
Obligations and Liabilities. Borrower has no liabilities or other obligations that arose
or accrued prior to the date hereof that, either individually or in the aggregate, could have a material adverse effect on Borrower,
the Property and/or Borrower’s ability to pay the Debt. Borrower has no known contingent liabilities.


 


3.1.33      Intellectual
Property/Websites. Other than as set forth on Schedule VI, neither Borrower
nor any Affiliate (i) has or holds any tradenames, trademarks, servicemarks, logos, copyrights, patents or other intellectual property
(collectively, “Intellectual Property”) with respect to the Property or the use or operations thereof or (ii) is
the registered holder of any website with respect to the Property (other than Tenant websites).


 


3.1.34      Operations
Agreements. Each Operations Agreement is in full force and effect and neither Borrower nor,
to Borrower’s knowledge, any other party to any Operations Agreement, is in default thereunder, and to the best of Borrower’s
knowledge, there are no conditions which, with the passage of time or the giving of notice, or both, would constitute a default thereunder.


 


3.1.35      Intentionally
Omitted. (a)


 


3.1.36      Intentionally
Omitted.


 


3.1.37      Illegal
Activity. No portion of the Property has been or will be purchased with proceeds of any
illegal activity and to the best of Borrower’s knowledge, there are no illegal commercial activities or commercial activities relating
to controlled substances at the Property (including, without limitation, any growing, distributing and/or dispensing of marijuana for
commercial purposes, medical or otherwise for so long as the foregoing is a violation of a Legal Requirement of any applicable Governmental
Authority).


 






    38


     


    

 


Section 3.2   Survival
of Representations. The representations and warranties set forth in Section 3.1
and elsewhere in this Agreement and the other Loan Documents shall (i) survive until the Obligations have been paid and performed
in full and (ii) be deemed to have been relied upon by Lender notwithstanding any investigation heretofore or hereafter made by
Lender or on its behalf.


 


Article 4


 


BORROWER
COVENANTS


 


Until the end of the Term, Borrower hereby covenants
and agrees with Lender that:


 


Section 4.1   Payment
and Performance of Obligations. Borrower shall pay and otherwise perform the Obligations
in accordance with the terms of this Agreement and the other Loan Documents.


 


Section 4.2   Due
on Sale and Encumbrance; Transfers of Interests. Borrower acknowledges that Lender has examined
and relied on the experience of Borrower and its stockholders, general partners and members, as applicable, and principals of Borrower
in owning and operating properties such as the Property in agreeing to make the Loan, and will continue to rely on Borrower’s ownership
of the Property as a means of maintaining the value of the Property as security for repayment of the Debt and the performance of the
Other Obligations. Borrower acknowledges that Lender has a valid interest in maintaining the value of the Property so as to ensure that,
should Borrower default in the repayment of the Debt or the performance of the Other Obligations, Lender can recover the Debt by a sale
of the Property. Therefore, without the prior written consent of Lender, but, in each instance, subject to the provisions of Article 7,
neither Borrower nor any other Person having a direct or indirect ownership or beneficial interest in Borrower shall sell, convey, mortgage,
grant, bargain, encumber, pledge, assign or transfer the Property or any part thereof, or any interest, direct or indirect, in Borrower,
whether voluntarily or involuntarily or enter into or subject the Property to a PACE Loan (a “Transfer”). A
Transfer within the meaning of this Section 4.2 shall be deemed to include (i) an installment sales agreement wherein
Borrower agrees to sell the Property or any part thereof for a price to be paid in installments; (ii) an agreement by Borrower for
the leasing of all or a substantial part of the Property for any purpose other than the actual occupancy by a space Tenant thereunder
or a sale, assignment or other transfer of, or the grant of a security interest in, Borrower’s right, title and interest in and
to any Leases, Rents or other Gross Revenue; (iii) with respect to any corporation, the voluntary or involuntary sale, conveyance
or transfer of such corporation’s stock (or the stock of any corporation directly or indirectly controlling such corporation by
operation of law or otherwise) or the creation or issuance of new stock; (iv) with respect to any limited or general partnership,
joint venture or limited liability company, or trust or other association, the change, removal, resignation or addition of a general
partner, managing member, non-managing member, limited partner, joint venturer or member or beneficial or other interest, the transfer
of the partnership interest of any general partner or limited partner, the transfer of the interest of any joint venturer or member or
beneficial or other direct or indirect ownership interest or the creation or issuance of new membership or partnership interests or beneficial
or other ownership interests; (v) with respect to any limited liability company, the division (whether pursuant to Section 18-217
of the Act or otherwise) of any assets and liabilities of such entity amongst one or more new or existing entities; (vi) any action
or occurrence which results in Key Principal no longer Controlling Borrower; and (vii) any pledge, hypothecation, assignment, transfer
or other encumbrance of any direct or indirect ownership interest in Borrower.


 






    39


     


    

 


Section 4.3   Liens.
Borrower shall not create, incur, assume or permit to exist any Lien on any direct or indirect interest in Borrower or any portion of
the Property, except for the Permitted Encumbrances. After prior notice to Lender, Borrower, at its own expense, may contest by appropriate
legal proceeding, conducted in good faith and with due diligence, the amount or validity of any Liens on the Property, provided that
(i) no Event of Default has occurred and remains uncured; (ii) such proceeding shall be permitted under and be conducted in
accordance with all applicable statutes, laws and ordinances; (iii) neither the Property nor any part thereof or interest therein
will be in danger of being sold, forfeited, terminated, canceled or lost; (iv) Borrower shall promptly upon final determination
thereof pay the amount of any such Liens, together with all costs, interest and penalties which may be payable in connection therewith;
(v) to insure the payment of such Liens, Borrower shall deliver to Lender either (A) cash in an amount equal to one hundred
twenty-five percent (125%) of the contested amount or (B) a payment bond in an amount equal to one hundred percent (100%) of the
contested amount from a surety acceptable to Lender in its reasonable discretion, (vi) failure to pay such Liens will not subject
Lender to any civil or criminal liability, (vii) such contest shall not affect the ownership, use or occupancy of the Property,
and (viii) Borrower shall, upon request by Lender, give Lender prompt notice of the status of such proceedings and/or confirmation
of the continuing satisfaction of the conditions set forth in clauses (i) through (vii) of this Section 4.3.
Lender may pay over any such cash or other security held by Lender to the claimant entitled thereto at any time when, in the reasonable
judgment of Lender, the entitlement of such claimant is established or the Property (or any part thereof or interest therein) shall be
in danger of being sold, forfeited, terminated, cancelled or lost or there shall be any danger of the Lien of the Mortgage being primed
by any related Lien.


 


Section 4.4   Special
Purpose. Without in any way limiting the provisions of this Article 4, Borrower
shall at all times be a Special Purpose Bankruptcy Remote Entity. Borrower shall not directly or indirectly make any change, amendment
or modification to its organizational documents, or otherwise take any action which could result in Borrower not being a Special Purpose
Bankruptcy Remote Entity.


 


Section 4.5   Existence;
Compliance with Legal Requirements. Borrower shall do or cause to be done all things necessary
to preserve, renew and keep in full force and effect its existence and all rights, licenses, permits, franchises and all applicable governmental
authorizations necessary for the operation of the Property and comply with all Legal Requirements applicable to it and the Property.


 






    40


     


    

 


 



 


Section 4.6             Taxes
and Other Charges. Borrower shall pay all Taxes and Other Charges now or hereafter levied,
assessed or imposed as the same become due and payable, and shall furnish to Lender receipts for the payment of the Taxes and the Other
Charges prior to the date the same shall become delinquent (provided, however, that Borrower need not pay Taxes directly nor furnish
such receipts for payment of Taxes to the extent that funds to pay for such Taxes have been deposited into the Tax Account pursuant to
Section 6.3). Borrower shall timely file all federal, state, commonwealth, district and local and other tax returns required
to be filed and timely pay all federal, state, commonwealth, district and local and other Taxes, assessments fees and other governmental
charges levied or imposed upon Borrower or its properties, income or assets or that are otherwise due and payable by Borrower. Borrower
shall not permit or suffer, and shall promptly discharge, any Lien or charge against the Property with respect to Taxes and Other Charges,
and shall promptly pay for all utility services provided to the Property. After prior notice to Lender, Borrower, at its own expense,
may contest by appropriate legal proceeding, conducted in good faith and with due diligence, the amount or validity of any Taxes or Other
Charges, provided that (i) no Default or Event of Default has occurred and remains uncured; (ii) such proceeding shall be permitted
under and be conducted in accordance with all applicable statutes, laws and ordinances; (iii) neither the Property nor any part
thereof or interest therein will be in danger of being sold, forfeited, terminated, canceled or lost; (iv) Borrower shall promptly
upon final determination thereof pay the amount of any such Taxes or Other Charges, together with all costs, interest and penalties which
may be payable in connection therewith; (v) such proceeding shall suspend the collection of Taxes or Other Charges from the Property;
(vi) Borrower shall deposit with Lender cash in an amount equal to one hundred twenty-five percent (125%) of the contested amount,
to insure the payment of any such Taxes or Other Charges, together with all interest and penalties thereon, (vii) failure to pay
such Taxes or Other Charges will not subject Lender to any civil or criminal liability, (viii) such contest shall not affect the
ownership, use or occupancy of the Property, and (ix) Borrower shall, upon request by Lender, give Lender prompt notice of the status
of such proceedings and/or confirmation of the continuing satisfaction of the conditions set forth in clauses (i) through (viii) of
this Section 4.6. Lender may pay over any such cash or other security held by Lender to the claimant entitled thereto at
any time when, in the judgment of Lender, the entitlement of such claimant is established or the Property (or any part thereof or interest
therein) shall be in danger of being sold, forfeited, terminated cancelled or lost or there shall be any danger of the Lien of the Mortgage
being primed by any related Lien.


 


Section 4.7              Litigation.
Borrower shall give prompt notice to Lender of any litigation or governmental proceedings pending or threatened against the Property,
Borrower, Manager, or Guarantor which might materially adversely affect the Property or Borrower’s, Manager’s, or Guarantor’s
condition (financial or otherwise) or business (including Borrower’s ability to perform its Obligations hereunder or under the
other Loan Documents).


 


Section 4.8             Title
to the Property. Borrower shall warrant and defend (a) its title to the Property and
every part thereof, subject only to Permitted Encumbrances and (b) the validity and priority of the Liens of the Mortgage, the Assignment
of Leases and this Agreement on the Property, subject only to Permitted Encumbrances, in each case against the claims of all Persons
whomsoever. Borrower shall reimburse Lender for any losses, costs, damages or expenses (including reasonable attorneys’ fees and
court costs) incurred by Lender if an interest in the Property, other than as permitted hereunder, is claimed by another Person.


 






    41


     


    

 


Section 4.9             Financial
Reporting.


 


4.9.1        Generally.
Borrower shall keep and maintain or will cause to be kept and maintained proper and accurate books and records, in accordance with GAAP,
and, to the extent required under Section 9.1 hereof, the requirements of Regulation AB, reflecting the financial affairs
of Borrower and all items of income and expense in connection with the operation of the Property. Lender shall have the right from time
to time during normal business hours upon reasonable notice (which may be given verbally) to Borrower to examine such books and records
at the office of Borrower or other Person maintaining such books and records and to make such copies or extracts thereof as Lender shall
desire. After an Event of Default, Borrower shall pay any costs incurred by Lender to examine such books, records and accounts, as Lender
shall determine to be necessary or appropriate in the protection of Lender’s interest.


 


4.9.2        Quarterly
Reports. Not later than forty-five (45) days following the end of each fiscal quarter (or
not later than thirty (30) days following the end of each calendar month (A) prior to a Securitization of the Loan and (B) following
a Securitization of the Loan as Lender may from time to time request), Borrower shall deliver to Lender:


 


(i)            unaudited
financial statements, internally prepared on a cash basis including a balance sheet and profit and loss statement as of the end of such
quarter (or month) and for the corresponding quarter (or month) of the previous year, a statement of revenues and expenses for such quarter
(or month) and the year to date, a statement of aging trade payables for the Property setting forth the payee, amount and date incurred
of each unpaid trade payable, and a comparison of the year to date results with (i) the results for the same period of the previous
year, (ii) the results that had been projected by Borrower for such period and (iii) the Annual Budget for such period and
the Fiscal Year. Such statements for each quarter (or month) shall be accompanied by an Officer’s Certificate certifying (A) that
such statements fairly represent the financial condition and results of operations of Borrower, (B) that as of the date of such
Officer’s Certificate, no Event of Default exists under this Agreement, the Note or any other Loan Document or, if so, specifying
the nature and status of each such Event of Default and the action then being taken by Borrower or proposed to be taken to remedy such
Event of Default, (C) that as of the date of each Officer’s Certificate, no litigation exists involving Borrower or the Property
in which the amount involved is $500,000 (in the aggregate) or more or in which all or substantially all of the potential liability is
not covered by insurance, or, if so, specifying such litigation and the actions being taking in relation thereto and (D) the amount
by which actual operating expenses were greater than or less than the operating expenses anticipated in the applicable Annual Budget.
Such financial statements shall contain such other information as shall be reasonably requested by Lender for purposes of calculations
to be made by Lender pursuant to the terms hereof.


 


(ii)           a
true, correct and complete rent roll for the Property, dated as of the last month of such fiscal quarter (or month), showing the percentage
of gross leasable area of the Property, if any, leased as of the last day of the preceding calendar quarter (or month), the current annual
rent for the Property, the expiration date of each Lease, whether to Borrower’s knowledge any portion of the Property has been
sublet, and if it has, the name of the subtenant, and such rent roll shall be accompanied by an Officer’s Certificate (A) certifying
that such rent roll is true, correct and complete in all material respects as of its date, (B) stating whether Borrower, within
the past three (3) months, has issued a notice of default with respect to any Lease which has not been cured and the nature of such
default, and (C) stating whether, within the past three (3) months, any Tenant has “gone dark” or Borrower has
received a notice from any Tenant of its intention to “go dark.”


 






    42


     


    

 


4.9.3        Annual
Reports. Borrower shall deliver to Lender:


 


(i)            Not
later than seventy-five (75) days after the end of each Fiscal Year of Borrower’s operations, unaudited financial statements, internally
prepared on a cash basis, covering the Property, including a balance sheet as of the end of such year, a statement of revenues and expenses
for such year and the fourth quarter thereof, and stating in comparative form the figures for the previous Fiscal Year and the Annual
Budget for such Fiscal Year, as well as the supplemental schedule of net income or loss presenting the net income or loss for the Property
and occupancy statistics for the Property, and copies of all federal income tax returns to be filed. Such annual financial statements
shall be accompanied by an Officer’s Certificate in the form required pursuant to Section 4.9.2(i) above; and


 


(ii)           Not
later than ninety (90) days after the end of each Fiscal Year of Borrower’s operations, an annual summary of any and all Capital
Expenditures made at the Property during the prior twelve (12) month period.


 


4.9.4        Other
Reports.


 


(a)            Borrower
shall deliver to Lender, within ten (10) Business Days of the receipt thereof by Borrower, a copy of all reports prepared by Manager
pursuant to the Management Agreement, including, without limitation, the Annual Budget and any inspection reports.


 


(b)            Borrower
shall, within ten (10) Business Days after request by Lender or, if all or part of the Loan is being or has been included in a Securitization,
by the Rating Agencies, furnish or cause to be furnished to Lender and, if applicable, the Rating Agencies, in such manner and in such
detail as may be reasonably requested by Lender or the Rating Agencies, such reasonable additional information as may be reasonably requested
with respect to the Property.


 


(c)            Borrower
shall submit to Lender the financial data and financial statements required, and within the time periods required, under clauses (f) and
(g) of Section 9.1, if and when available.


 


(d)            Borrower
shall furnish or cause to be furnished to Lender, upon request, any financial data or financial statements prepared by or on behalf of
a Tenant under any Lease Sweep Lease, to the extent such financial data or statements were actually delivered to Borrower.


 


4.9.5        Annual
Budget. Borrower shall submit to Lender by November 1 of each year the Annual Budget
for the succeeding Fiscal Year. During the continuance of a Trigger Period, Lender shall have the right to approve each Annual Budget
(which approval shall not be unreasonably withheld so long as no Event of Default is continuing). Annual Budgets delivered to Lender
(other than during the continuance of a Trigger Period) or approved by Lender (during the continuance of a Trigger Period) shall hereinafter
be referred to as an “Approved Annual Budget”. During the continuance of a Trigger Period, until such time
that any Annual Budget has been approved by Lender, the prior Approved Annual Budget shall apply for all purposes hereunder (with such
adjustments as reasonably determined by Lender to reflect actual increases in Taxes, Insurance Premiums and utilities expenses).
To the extent Lender has approval rights over an Annual Budget pursuant to this Section 4.9.5, neither Borrower nor Manager
shall change or modify the Annual Budget that has been approved by Lender without the prior written consent of Lender. During the continuance
of a Trigger Period, Lender may require Borrower, on a quarterly basis, to furnish to Lender for approval (which approval shall not be
unreasonably withheld provided no Event of Default exists) an updated Annual Budget.


 






    43


     


    

 


4.9.6        Extraordinary
Operating Expenses. During the continuance of a Trigger Period, in the event that Borrower
incurs an extraordinary operating expense not set forth in the Approved Annual Budget (each an “Extraordinary Operating Expense”),
then Borrower shall promptly deliver to Lender a reasonably detailed explanation of such proposed Extraordinary Operating Expense for
Lender’s approval. Any Extraordinary Operating Expense approved by Lender is referred to herein as an (“Approved Extraordinary
Operating Expense”). In no event shall management fees in excess of the Management Fee Cap be paid to Manager as part of
the Approved Extraordinary Operating Expense funds distributed to Borrower during a Trigger Period pursuant to Section 6.16.1
unless expressly approved by Lender in advance in its sole discretion. Any Funds distributed to Borrower for the payment of Approved
Extraordinary Operating Expenses pursuant to Section 6.16.1 shall be used by Borrower only to pay for such Approved Extraordinary
Operating Expenses or reimburse Borrower for such Approved Extraordinary Operating Expenses, as applicable.


 


4.9.7        Breach.
If Borrower fails to provide to Lender or its designee any of the financial statements, certificates, reports or information (the “Required
Records”) required by this Section 4.9 within thirty (30) days after the date upon which such Required Record
is due, Borrower shall pay to Lender, at Lender’s option and in its discretion, an amount equal to $5,000 for each Required Record
that is not delivered; provided Lender has given Borrower at least fifteen (15) days’ prior notice of such failure. In addition,
thirty (30) days after Borrower’s failure to deliver any Required Records, Lender shall have the option, upon fifteen (15) days’
notice to Borrower to gain access to Borrower’s books and records and prepare or have prepared at Borrower’s expense, any
Required Records not delivered by Borrower.


 


4.9.8        Actual
Operating Expenses. Borrower shall furnish or cause to be furnished to Lender, within thirty
(30) days after the end of each calendar month, a report (accompanied by an Officer’s Certificate stating that such items are true,
correct and complete in all material respects) reconciling (a) the actual operating expenses paid in cash or incurred by or on behalf
of Borrower with respect to the Property during such calendar month (the “Actual OpEx”) with (b) the operating
expenses set forth in the Approved Annual Budget for such calendar month (the “Budgeted OpEx”). If the Budgeted
OpEx exceeds the Actual OpEx for any calendar month, the amount of such excess shall be known as the “OpEx Overpayment Amount”.


 


4.9.9        Intentionally
Omitted.


 


Section 4.10     Access
to Property. Borrower shall permit agents, representatives, consultants and employees
of Lender to inspect the Property or any part thereof at reasonable hours upon reasonable advance notice (which may be given verbally).
Lender or its agents, representatives, consultants and employees as part of any inspection may take soil, air, water, building material
and other samples from the Property, subject to the rights of Tenants under Leases.


 






    44


     


    

 


Section 4.11          Leases.


 


4.11.1      Generally.
Upon request, Borrower shall furnish Lender with executed copies of all Leases then in effect. All renewals of Leases and all proposed
leases shall provide for rental rates and terms comparable to existing local market rates and shall be arm’s length transactions
with bona fide, independent third-party Tenants. Within ten (10) days after the execution of a Lease or any renewals, amendments
or modification of a Lease, Borrower shall deliver to Lender a copy thereof, together with Borrower’s certification that such Lease
(or such renewal, amendment or modification) was entered into in accordance with the terms of this Agreement.


 


4.11.2      Approvals.


 


(a)            Any
Lease and any renewals, amendments or modification of a Lease (provided such Lease or Lease renewal, amendment or modification is not
a Major Lease (or a renewal, amendment or modification to a Major Lease)) that meets the following requirements may be entered into by
Borrower without Lender’s prior consent: (i) provides for economic terms, including rental rates, comparable to existing local
market rates for similar properties and is otherwise on commercially reasonable terms, (ii) has an initial term of not less than
three (3) years and a total term (together with all extension and renewal options) of not more than ten (10) years, (iii) unless
a subordination, non-disturbance and attornment agreement is delivered pursuant to this Section 4.11.2, provides that such
Lease is subordinate to the Mortgage and the Assignment of Leases and that the Tenant thereunder will attorn to Lender and any purchaser
at a foreclosure sale, (iv) is with Tenants that are creditworthy, (v) is written substantially in accordance with the standard
form of Lease which shall have been approved by Lender (subject to any commercially reasonable changes made in the course of negotiations
with the applicable Tenant), (vi) is not with an Affiliate of Borrower or any Guarantor, and (vii) does not contain any option
to purchase, any right of first refusal to purchase, any right to terminate (except if such termination right is triggered by the destruction
or condemnation of substantially all of the Property) or any other terms which would materially adversely affect Lender’s rights
under the Loan Documents. All other Leases (including Major Leases) and all renewals, amendments and modifications thereof executed after
the date hereof shall be subject to Lender’s prior approval.


 


(b)            Borrower
shall not permit or consent to any assignment or sublease of any Major Lease without Lender’s prior written approval (other than
assignments or subleases expressly permitted under any Major Lease pursuant to a unilateral right of the Tenant thereunder not requiring
the consent of Borrower). Lender, at Borrower’s sole cost and expense, shall execute and deliver its standard form of subordination,
non-disturbance and attornment agreement to Tenants under any future Major Lease approved by Lender upon request, with such commercially
reasonable changes as may be requested by such Tenants and which are acceptable to Lender.


 


(c)            Borrower
shall have the right, without the consent or approval of Lender, to terminate or accept a surrender of any Lease that is not a Major
Lease so long as such termination or surrender is (i) by reason of a tenant default and (ii) in a commercially reasonable manner
to preserve and protect the Property.


 






    45


     


    

 


(d)            Notwithstanding
anything to the contrary contained in this Section 4.11.2, provided no Event of Default is continuing, whenever Lender’s
approval or consent is required pursuant to the provisions of this Section 4.11.2, Lender’s consent shall be deemed
given if:


 


(i)            the
first correspondence from Borrower to Lender requesting such approval or consent is in an envelope marked “PRIORITY” and
contains a bold-faced, conspicuous (in a font size that is not less than fourteen (14) point) legend at the top of the first page thereof
stating that “FIRST NOTICE: THIS IS A REQUEST FOR CONSENT UNDER THE LOAN BY DBR INVESTMENTS CO. LIMITED TO MDR FRANKLIN
SQUARE, LLC. FAILURE TO RESPOND TO THIS REQUEST WITHIN TWENTY (20) BUSINESS DAYS MAY RESULT IN THE REQUEST BEING DEEMED GRANTED”,
and is accompanied by the information and documents required above, and any other information reasonably requested by Lender in writing
prior to the expiration of such twenty (20) Business Day period in order to adequately review the same has been delivered; and


 


(ii)           if
Lender fails to respond or to deny such request for approval in writing within the first ten (10) Business Days of such twenty (20)
Business Day period, a second notice requesting approval is delivered to Lender from Borrower in an envelope marked “PRIORITY”
containing a bold-faced, conspicuous (in a font size that is not less than fourteen (14) point) legend at the top of the first page thereof
stating that “SECOND AND FINAL NOTICE: THIS IS A REQUEST FOR CONSENT UNDER THE LOAN BY DBR INVESTMENTS CO. LIMITED TO
MDR FRANKLIN SQUARE, LLC. IF YOU FAIL TO PROVIDE A SUBSTANTIVE RESPONSE (E.G., APPROVAL, DENIAL OR REQUEST FOR CLARIFICATION OR MORE
INFORMATION) TO THIS REQUEST FOR APPROVAL IN WRITING WITHIN TEN (10) BUSINESS DAYS, YOUR APPROVAL SHALL BE DEEMED GIVEN”
and Lender fails to provide a substantive response to such request for approval within such second ten (10) Business Day period.


 


4.11.3      Covenants.
Borrower (i) shall observe and perform the obligations imposed upon the lessor under the Leases in a commercially reasonable manner;
(ii) shall enforce the terms, covenants and conditions contained in the Leases upon the part of the Tenants thereunder to be observed
or performed in a commercially reasonable manner, provided, however, Borrower shall not terminate or accept a surrender of a Major Lease
without Lender’s prior approval; (iii) shall not collect any of the Rents more than one (1) month in advance (other than
security deposits); (iv) shall not execute any assignment of lessor’s interest in the Leases or the Rents (except as contemplated
by the Loan Documents); and (v) shall not alter, modify or change any Lease so as to change the amount of or payment date for rent,
change the expiration date, grant any option for additional space or term, materially reduce the obligations of the Tenant or increase
the obligations of the lessor. Upon request, Borrower shall furnish Lender with executed copies of all Leases. Borrower shall promptly
send copies to Lender of all written notices of material default which Borrower shall receive under the Leases.


 


4.11.4      Security
Deposits. All security deposits of Tenants, whether held in cash or any other form, shall
be held in compliance with all Legal Requirements, shall not be commingled with any other funds of Borrower. During the continuance of
an Event of Default, Borrower shall, upon Lender’s request, if permitted by applicable Legal Requirements, cause all such security
deposits (and any interest theretofore earned thereon) to be transferred into the Deposit Account (which shall then be held by Deposit
Bank in a separate Account), which shall be held by Deposit Bank subject to the terms of the Leases. Any bond or other instrument which
Borrower is permitted to hold in lieu of cash security deposits under any applicable Legal Requirements (i) shall be maintained
in full force and effect in the full amount of such deposits unless replaced by cash deposits as herein above described, (ii) shall
be issued by an institution reasonably satisfactory to Lender, (iii) shall, if permitted pursuant to any Legal Requirements, name
Lender as payee or mortgagee thereunder (or at Lender’s option, be fully assignable to Lender), and (iv) shall in all respects
comply with any applicable Legal Requirements and otherwise be satisfactory to Lender. Borrower shall, upon request, provide Lender with
evidence satisfactory to Lender of Borrower’s compliance with the foregoing.


 






    46


     


    

 


4.11.5      Lease
Sweep Lease Covenants. Borrower shall notify Lender (i) of receipt of any notice from
any Tenant under a Lease Sweep Lease of its intention to discontinue its business at its Lease Sweep Space at the Property (or any material
portion thereof) within five (5) Business Days after receipt from the applicable Tenant and (ii) of any default under a Lease
Sweep Lease that continues beyond any applicable notice and cure periods, within five (5) Business Days after the expiration of
such applicable notice and cure periods.


 


Section 4.12          Repairs;
Maintenance and Compliance; Alterations.


 


4.12.1      Repairs;
Maintenance and Compliance. Borrower shall at all times maintain, preserve and protect all
franchises and trade names, and Borrower shall cause the Property to be maintained in a good and safe condition and repair and shall
not remove, demolish or alter the Improvements or Equipment (except for alterations performed in accordance with Section 4.12.2
below and normal replacement of Equipment with Equipment of equivalent value and functionality). Borrower shall promptly comply with
all Legal Requirements (including municipal, state and federal laws) and immediately cure properly any violation of a Legal Requirement.
Borrower also hereby covenants and agrees that it shall not commit, permit or suffer to exist any illegal commercial activities or commercial
activities relating to controlled substances at the Property (including, without limitation, any growing, distributing and/or dispensing
of marijuana for commercial purposes, medical or otherwise for so long as the foregoing is a violation of a Legal Requirement of any
applicable Governmental Authority). Borrower shall notify Lender in writing within one (1) Business Day after Borrower first receives
notice of any such non-compliance. Borrower shall promptly repair, replace or rebuild any part of the Property that becomes damaged,
worn or dilapidated and shall complete and pay for any Improvements at any time in the process of construction or repair.


 


4.12.2      Alterations.
Borrower may, without Lender’s consent, perform alterations to the Improvements and Equipment which (i) do not constitute
a Material Alteration, (ii) do not adversely affect Borrower’s financial condition or the value or net operating income of
the Property and (iii) are in the ordinary course of Borrower’s business. Borrower shall not perform any Material Alteration
without Lender’s prior written consent. Lender may, as a condition to giving its consent to a Material Alteration, require that
Borrower deliver to Lender security for payment of the cost of such Material Alteration and as additional security for Borrower’s
Obligations under the Loan Documents, which security may be any of the following: (i) cash, (ii) U.S. Obligations, or (iii) other
securities acceptable to Lender, provided that Lender shall have received a Rating Agency Confirmation as to the form and issuer of same.
Such security shall be in an amount equal to the excess of the total unpaid amounts incurred and to be incurred with respect to such
alterations to the Improvements (other than such amounts to be paid or reimbursed by Tenants under the Leases) over the Alteration Threshold,
and Lender may apply such security from time to time at the option of Lender to pay for such alterations. Upon substantial completion
of any Material Alteration, Borrower shall provide evidence satisfactory to Lender that (i) the Material Alteration was constructed
in accordance with applicable Legal Requirements, (ii) all contractors, subcontractors, materialmen and professionals who provided
work, materials or services in connection with the Material Alteration have been paid in full and have delivered unconditional releases
of liens, and (iii) all material licenses and permits necessary for the use, operation and occupancy of the Material Alteration
(other than those which depend on the performance of tenant improvement work) have been issued. If Borrower has provided cash security,
as provided above, such cash shall be released by Lender to fund such Material Alterations, and if Borrower has provided non-cash security,
as provided above, except to the extent applied by Lender to fund such Material Alterations, Lender shall release and return such security
upon Borrower’s satisfaction of the requirements of the preceding sentence.


 






    47


     


    

 


Section 4.13           Approval
of Major Contracts. Borrower shall be required to obtain Lender’s prior written approval
of any and all Major Contracts affecting the Property, which approval may be granted or withheld in Lender’s sole discretion.


 


Section 4.14           Property
Management.


 


4.14.1      Management
Agreement. Borrower shall (i) cause Manager to manage the Property in accordance with
the Management Agreement, (ii) diligently perform and observe all of the terms, covenants and conditions of the Management Agreement
on the part of Borrower to be performed and observed, (iii) promptly notify Lender of any default under the Management Agreement
of which it is aware, (iv) promptly deliver to Lender a copy of each financial statement, business plan, capital expenditures plan,
report and estimate received by it under the Management Agreement, and (v) promptly enforce the performance and observance of all
of the covenants required to be performed and observed by Manager under the Management Agreement. If Borrower shall default in the performance
or observance of any material term, covenant or condition of the Management Agreement on the part of Borrower to be performed or observed,
then, without limiting Lender’s other rights or remedies under this Agreement or the other Loan Documents, and without waiving
or releasing Borrower from any of its Obligations hereunder or under the Management Agreement, Lender shall have the right, but shall
be under no obligation, to pay any sums and to perform any act as may be appropriate to cause all the material terms, covenants and conditions
of the Management Agreement on the part of Borrower to be performed or observed.


 


4.14.2      Prohibition
Against Termination or Modification. Borrower shall not (i) surrender, terminate, cancel,
modify, renew or extend the Management Agreement, (ii) enter into any other agreement relating to the management or operation of
the Property with Manager or any other Person, (iii) consent to the assignment by the Manager of its interest under the Management
Agreement, or (iv) waive or release any of its rights and remedies under the Management Agreement, in each case without the express
consent of Lender, which consent shall not be unreasonably withheld; provided, however, with respect to a new property manager such consent
may be conditioned upon Borrower delivering a Rating Agency Confirmation from each applicable Rating Agency as to such new property manager
and management agreement. Notwithstanding the foregoing, however, provided no Event of Default is continuing, the approval of Lender
and the Rating Agencies shall not be required with respect to the appointment of an Unaffiliated Qualified Manager. If at any time Lender
consents to the appointment of a new property manager or a Qualified Manager is appointed, such new property manager (including a Qualified
Manager) and Borrower shall, as a condition of Lender’s consent, execute (a) a management agreement in form and substance
reasonably acceptable to Lender and (b) a subordination of management agreement in a form reasonably acceptable to Lender.


 






    48


     


    

 


4.14.3      Replacement
of Manager. Lender shall have the right to require Borrower to replace the Manager with
(x) an Unaffiliated Qualified Manager selected by Borrower or (y) another property manager chosen by Borrower and approved
by Lender (provided, that such approval may be conditioned upon Borrower delivering a Rating Agency Confirmation from each applicable
Rating Agency as to such new property manager and management agreement) upon the occurrence of any one or more of the following events:
(i) at any time following the occurrence of an Event of Default, (ii) if Manager shall be in default under the Management Agreement
beyond any applicable notice and cure period, (iii) if Manager shall become insolvent or a debtor in any bankruptcy or insolvency
proceeding, or (iv) if at any time the Manager has engaged in gross negligence, fraud, willful misconduct or misappropriation of
funds.


 


Section 4.15           Performance
by Borrower; Compliance with Agreements.


 


(a)             Borrower
shall in a timely manner observe, perform and fulfill each and every covenant, term and provision of each Loan Document executed and
delivered by, or applicable to, Borrower, and shall not enter into or otherwise suffer or permit any amendment, waiver, supplement, termination
or other modification of any Loan Document executed and delivered by, or applicable to, Borrower without the prior consent of Lender.


 


(b)             Borrower
shall at all times comply in all material respects with all Operations Agreements. Borrower agrees that without the prior written consent
of Lender, Borrower will not amend, modify or terminate any of the Operations Agreements.


 


Section 4.16           Licenses;
Intellectual Property; Website.


 


4.16.1      Licenses.
Borrower shall keep and maintain all Licenses necessary for the operation of the Property as a retail center. Borrower shall not transfer
any Licenses required for the operation of the Property.


 


4.16.2      Intellectual
Property. Borrower shall keep and maintain all Intellectual Property relating to the use
or operation of the Property and all Intellectual Property shall be held by and (if applicable) registered in the name of Borrower. Borrower
shall not Transfer or let lapse any Intellectual Property without Lender’s prior consent.


 


4.16.3     Website.
Any website with respect to the Property (other than Tenant websites) shall be maintained by or on behalf of Borrower and any such website
shall be registered in the name of Borrower. Borrower shall not Transfer any such website without Lender’s prior consent.


 


Section 4.17           Further
Assurances. Borrower shall, at Borrower’s sole cost and expense:


 


(a)             furnish
to Lender all instruments, documents, boundary surveys, footing or foundation surveys, certificates, plans and specifications, appraisals,
title and other insurance reports and agreements, and each and every other document, certificate, agreement and instrument required to
be furnished by Borrower pursuant to the terms of the Loan Documents or which are reasonably requested by Lender in connection therewith;


 






    49


     


    

 


(b)            cure
any defects in the execution and delivery of the Loan Documents and execute and deliver, or cause to be executed and delivered, to Lender
such documents, instruments, certificates, assignments and other writings, and do such other acts necessary or desirable, to correct
any omissions in the Loan Documents, to evidence, preserve and/or protect the collateral at any time securing or intended to secure the
Obligations, as Lender may reasonably require; and


 


(c)            do
and execute all and such further lawful and reasonable acts, conveyances and assurances for the better and more effective carrying out
of the intents and purposes of this Agreement and the other Loan Documents, as Lender may reasonably require from time to time, including
without limitation, upon Lender’s request, Borrower shall, and shall cause Guarantor to, reasonably cooperate with providing information
reasonably requested by Lender to update compliance with Lender’s “Know Your Customer” and other similar policies and
procedures during the term of the Loan.


 


Section 4.18          Estoppel
Statement.


 


(a)            After
request by Lender, Borrower shall within five (5) Business Days furnish Lender with a statement, duly acknowledged and certified,
stating (i) the Outstanding Principal Balance of the Note, (ii) the Interest Rate, (iii) the date installments of interest
and/or principal were last paid, (iv) any offsets or defenses to the payment and performance of the Obligations, if any, and (v) that
this Agreement and the other Loan Documents have not been modified or if modified, giving particulars of such modification.


 


(b)            Borrower
shall deliver to Lender, upon request, an estoppel certificate from each Tenant under any Lease (provided that Borrower shall only be
required to use commercially reasonable efforts to obtain an estoppel certificate from any Tenant not required to provide an estoppel
certificate under its Lease) in form and substance reasonably satisfactory to Lender; provided, that Borrower shall not be required to
deliver such certificates more frequently than one (1) time in any calendar year (or twice during any calendar year in which a Securitization
occurs).


 


(c)            Borrower
shall deliver to Lender, upon request, estoppel certificates from each party under any Operations Agreement, in form and substance reasonably
satisfactory to Lender; provided, that Borrower shall not be required to deliver such certificates more than one (1) time during
the Term and not more frequently than once per calendar year (or twice during any calendar year in which a Securitization occurs).


 


Section 4.19          Notice
of Default. Borrower shall promptly advise Lender of the occurrence of any Default or Event
of Default of which Borrower has knowledge.


 


Section 4.20          Cooperate
in Legal Proceedings. Borrower shall cooperate fully with Lender with respect to any proceedings
before any court, board or other Governmental Authority which may in any way affect the rights of Lender hereunder or any rights obtained
by Lender under any of the other Loan Documents and, in connection therewith, permit Lender, at its election, to participate in any such
proceedings.


 


Section 4.21          Indebtedness.
Borrower shall not directly or indirectly create, incur or assume any Indebtedness other than (i) the Debt and (ii) unsecured
trade payables incurred in the ordinary course of business relating to the ownership and operation of the Property, which in the case
of such unsecured trade payables (A) are not evidenced by a note, (B) do not exceed, at any time, a maximum aggregate amount
of two percent (2%) of the Outstanding Principal Balance and (C) are paid within thirty (30) days of the date incurred (collectively,
 “Permitted Indebtedness”).


 






    50


     


    

 


Section 4.22          Business
and Operations. Borrower will continue to engage in the businesses presently conducted by
it as and to the extent the same are necessary for the ownership, maintenance, management and operation of the Property, and Borrower
shall not change the use of the Property from the use of the Property existing as of the Closing Date. Borrower will qualify to do business
and will remain in good standing under the laws of each jurisdiction as and to the extent the same are required for the ownership, maintenance,
management and operation of the Property.


 


Section 4.23           Dissolution.
Borrower shall not (i) engage in any dissolution, liquidation, consolidation, division (whether pursuant to Section 18-217
of the Act or otherwise), or merger with or into any one or more other business entities, (ii) engage in any business activity not
related to the ownership and operation of the Property, (iii) transfer, lease or sell, in one transaction or any combination of
transactions, all or substantially all of the property or assets of Borrower except to the extent expressly permitted by the Loan Documents,
or (iv) cause, permit or suffer Borrower to (A) dissolve, divide (whether pursuant to Section 18-217 of the Act or otherwise),
wind up or liquidate or take any action, or omit to take any action, as a result of which Borrower would be dissolved, divided (whether
pursuant to Section 18-217 of the Act or otherwise), wound up or liquidated in whole or in part, or (B) amend, modify, waive
or terminate the certificate of formation or operating agreement of Borrower, in each case without obtaining the prior consent of Lender.


 


Section 4.24          Debt
Cancellation. Borrower shall not cancel or otherwise forgive or release any claim or debt
(other than the termination of Leases in accordance herewith) owed to Borrower by any Person, except for adequate consideration and in
the ordinary course of Borrower’s business.


 


Section 4.25          Affiliate
Transactions. Borrower shall not enter into, or be a party to, any transaction with an Affiliate
of Borrower or any of the partners, members or shareholders, as applicable, of Borrower except in the ordinary course of business and
on terms which are no less favorable to Borrower or such Affiliate than would be obtained in a comparable arm’s-length transaction
with an unrelated third party.


 


Section 4.26          No
Joint Assessment. Borrower shall not suffer, permit or initiate the joint assessment of
the Property (i) with any other real property constituting a tax lot separate from the Property, and (ii) with any portion
of the Property which may be deemed to constitute personal property, or any other procedure whereby the Lien of any taxes which may be
levied against such personal property shall be assessed or levied or charged to the Property.


 


Section 4.27          Principal
Place of Business. Borrower shall not change its principal place of business from the address
set forth on the first page of this Agreement without first giving Lender thirty (30) days prior written notice.


 






    51


     


    

 


Section 4.28          Change
of Name, Identity or Structure. Borrower shall not change Borrower’s name, identity
(including its trade name or names) or convert from a Delaware single member limited liability company structure without notifying Lender
of such change in writing at least thirty (30) days prior to the effective date of such change and without first obtaining the prior
written consent of Lender; provided, however, that Borrower shall at all times be a Delaware single member limited liability company.
Borrower shall deliver to Lender, prior to or contemporaneously with the effective date of any such change, any financing statement or
financing statement change required by Lender to establish or maintain the validity, perfection and priority of the security interest
granted herein. At the request of Lender, Borrower shall execute a certificate in form satisfactory to Lender listing the trade names
under which Borrower intends to operate the Property, and representing and warranting that Borrower does business under no other trade
name with respect to the Property.


 


Section 4.29          Costs
and Expenses.


 


(a)            Except
as otherwise expressed herein or in any of the other Loan Documents, Borrower shall pay or, if Borrower fails to pay, reimburse Lender
(and for purposes of this Section 4.29, Lender shall also include the initial lender, its Affiliates, successors and assigns,
and their respective officers and directors) upon receipt of notice from Lender, for all costs and expenses (including reasonable attorneys’
fees and disbursements) incurred by Lender in connection with (i) Borrower’s ongoing performance of and compliance with Borrower’s
agreements and covenants contained in this Agreement and the other Loan Documents on its part to be performed or complied with after
the Closing Date, including confirming compliance with environmental and insurance requirements (except to the extent expressly set forth
in Section 10.21(a) hereof); (ii) Lender’s ongoing performance of and compliance with all agreements and
covenants contained in this Agreement and the other Loan Documents on its part to be performed or complied with after the Closing Date
(except to the extent expressly set forth in Section 10.21(a) hereof); (iii) the negotiation, preparation, execution
and delivery of any consents, amendments, waivers or other modifications to this Agreement and the other Loan Documents and any other
documents or matters requested by Borrower; (iv) filing and recording of any Loan Documents; (v) title insurance, surveys,
inspections and appraisals; (vi) the creation, perfection or protection of Lender’s Liens in the Property and the Accounts
(including fees and expenses for title and lien searches, intangibles taxes, personal property taxes, mortgage recording taxes, due diligence
expenses, travel expenses, accounting firm fees, costs of appraisals, environmental reports and Lender’s Consultant, surveys and
engineering reports); (vii) enforcing or preserving any rights in response to third party claims or the prosecuting or defending
of any action or proceeding or other litigation, in each case against, under or affecting Borrower, the Loan Documents, the Property,
or any other security given for the Loan; (viii) fees charged by Servicer (except to the extent expressly set forth in Section 10.21)
or, if a Securitization has occurred, the Rating Agencies in connection with the Loan or any modification thereof; and (ix) enforcing
any Obligations of or collecting any payments due from Borrower under this Agreement, the other Loan Documents or with respect to the
Property or in connection with any refinancing or restructuring of the credit arrangements provided under this Agreement in the nature
of a “work-out” or of any insolvency or bankruptcy proceedings (including fees and expenses for title and lien searches,
intangible taxes, personal property taxes, mortgage recording taxes, due diligence expenses, travel expenses, accounting firm fees, costs
of appraisals, environmental reports and Lender’s Consultant, surveys and engineering reports); provided, however, that Borrower
shall not be liable for the payment of any such costs and expenses to the extent the same arise by reason of the active gross negligence,
illegal acts, fraud or willful misconduct of Lender. All amounts payable to Lender or Servicer in exercising its rights under this Section 4.29
(including, but not limited to, disbursements, advances and reasonable legal expenses incurred in connection therewith), shall be
payable upon demand, secured by this Agreement and interest thereon shall accrue at the Default Rate from the date incurred.


 






    52


     


    

 


(b)            In
addition, in connection with any Rating Agency Confirmation, Review Waiver or other Rating Agency consent, approval or review requested
or required hereunder (other than the initial review of the Loan by the Rating Agencies in connection with a Securitization), Borrower
shall pay all of the costs and expenses of Lender, Servicer and each Rating Agency in connection therewith, and, if applicable, shall
pay any fees imposed by any Rating Agency in connection therewith.


 


(c)            Any
costs and expenses due and payable by Borrower hereunder which are not paid by Borrower within ten (10) days after demand may be
paid from any amounts in the Deposit Account, with notice thereof to Borrower. The obligations and liabilities of Borrower under this
Section 4.29 shall (i) become part of the Obligations, (ii) be secured by the Loan Documents and (iii) survive
the Term and the exercise by Lender of any of its rights or remedies under the Loan Documents, including the acquisition of the Property
by foreclosure or a conveyance in lieu of foreclosure.


 


Section 4.30          Indemnity.
Borrower shall indemnify, defend and hold harmless Lender (and for purposes of this Section 4.30, Lender shall also include
the initial lender, its Affiliates, successors and assigns, and their respective officers and directors)from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, claims, costs, expenses and disbursements of any kind
or nature whatsoever (including the reasonable fees and disbursements of counsel for Lender in connection with any investigative, administrative
or judicial proceeding commenced or threatened, whether or not Lender shall be designated a party thereto), that may be imposed on, incurred
by, or asserted against Lender in any manner relating to or arising out of (i) any breach by Borrower of its Obligations under,
or any material misrepresentation by Borrower contained in, this Agreement or the other Loan Documents; (ii) the use or intended
use of the proceeds of the Loan; (iii) any information provided by or on behalf of Borrower, or contained in any documentation approved
by Borrower; (iv) ownership of the Mortgage, the Property or any interest therein, or receipt of any Rents or other Gross Revenue
(including due to any Increased Costs, Special Taxes or Other Taxes); (v) any accident, injury to or death of persons or loss of
or damage to property occurring in, on or about the Property or on the adjoining sidewalks, curbs, adjacent property or adjacent parking
areas, streets or ways; (vi) any use, nonuse or condition in, on or about the Property or on adjoining sidewalks, curbs, adjacent
property or adjacent parking areas, streets or ways; (vii) performance of any labor or services or the furnishing of any materials
or other property in respect of the Property; (viii) any failure of the Property to comply with any Legal Requirement; (ix) any
claim by brokers, finders or similar persons claiming to be entitled to a commission in connection with any Lease or other transaction
involving the Property or any part thereof, or any liability asserted against Lender with respect thereto; and (x) the claims of
any lessee of any portion of the Property or any Person acting through or under any lessee or otherwise arising under or as a consequence
of any Lease (collectively, the “Indemnified Liabilities”); provided, however, that Borrower shall not have
any obligation to Lender hereunder to the extent that such Indemnified Liabilities arise from the active gross negligence, illegal acts,
fraud or willful misconduct of Lender. To the extent that the undertaking to indemnify, defend and hold harmless set forth in the preceding
sentence may be unenforceable because it violates any law or public policy, Borrower shall pay the maximum portion that it is permitted
to pay and satisfy under applicable law to the payment and satisfaction of all Indemnified Liabilities incurred by Lender.


 






    53


     


    

 


Section 4.31          ERISA.


 


(a)            Borrower
shall not engage in any transaction which would cause any obligation, or action taken or to be taken, hereunder (or the exercise by Lender
or any assignee of any of its rights under the Note, this Agreement or the other Loan Documents) to be a non-exempt (under a statutory
or administrative class exemption) prohibited transaction under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”)
or Section 4975 of the Code.


 


(b)            Borrower
shall not maintain, sponsor, contribute to or become obligated to contribute to, or suffer or permit any ERISA Affiliate of Borrower
to, maintain, sponsor, contribute to or become obligated to contribute to, any Plan or any Welfare Plan or permit the assets of Borrower
to become “plan assets,” within the meaning of 29 C.F.R. 2510.3-101, as modified in application by Section 3(42) of
ERISA.


 


(c)            Borrower
shall deliver to Lender such certifications or other evidence from time to time throughout the Term, as requested by Lender in its sole
discretion, that (A) Borrower and Guarantor are not and do not maintain an “employee benefit plan” as defined in Section 3(32)
of ERISA, which is subject to Title I of ERISA, or a “governmental plan” within the meaning of Section 3(32) of ERISA;
(B) Borrower and Guarantor are not subject to state statutes regulating investments and fiduciary obligations with respect to governmental
plans; and (C) the assets of Borrower and Guarantor do not constitute “plan assets” within the meaning of 29 C.F.R §2510.3-101
as modified in application by Section 3(42) of ERISA of any “benefit plan investor” as defined in Section 3(42)
of ERISA.


 


Section 4.32          Patriot
Act Compliance.


 


(a)            Borrower
will comply with the Patriot Act, Anti-Money Laundering Laws and all applicable requirements of Governmental Authorities having jurisdiction
over Borrower and/or the Property, including those relating to money laundering and terrorism. Lender shall have the right to audit Borrower’s
compliance with the Patriot Act and all applicable requirements of Governmental Authorities having jurisdiction over Borrower and/or
the Property, including those relating to money laundering and terrorism.


 


(b)            Neither
Borrower nor any owner of a direct or indirect interest in Borrower (i) is or will be a Person listed on any Government Lists, (ii) is
or will be a Person listed in the annex to, or otherwise subject to the prohibitions of, Presidential Executive Order No. 13224
(Sept. 23, 2001) (“Executive Order 13224”), or subject to any other similar prohibitions contained in the rules and
regulations of OFAC or in any enabling legislation or other executive orders in respect thereof, (iii) is a Person that has been
previously or will be indicted for or convicted of any felony involving a crime or crimes of moral turpitude or for any Patriot Act Offense,
or (iv) is a Person that is currently or will be under investigation by any Governmental Authority for any Patriot Act Offense or
other alleged criminal activity (any Person described in any of the foregoing clauses (i) - (iv), a “Proscribed Person”).
For purposes hereof, the term “Patriot Act Offense” means any violation of the criminal laws of the United
States of America or of any of the several states, or that would be a criminal violation if committed within the jurisdiction of the
United States of America or any of the several states, relating to terrorism or the laundering of monetary instruments, including any
offense under any Anti-Money Laundering Laws. “Patriot Act Offense” also includes the crimes of conspiracy
to commit, or aiding and abetting another to commit, a Patriot Act Offense. For purposes hereof, the term “Government Lists”
means (1) the Specially Designated Nationals and Blocked Persons Lists and any replacement or other lists maintained by the Office
of Foreign Assets Control or by any successor thereto (“OFAC”), (2) any other list of terrorists, terrorist
organizations or narcotics traffickers maintained pursuant to any of the Rules and Regulations of OFAC, and (3) any similar
lists maintained by the United States Department of State, the United States Department of Commerce or any other Governmental Authority
or pursuant to any Executive Order of the President of the United States of America.


 






    54


     


    

 


(c)            At
all times throughout the term of the Loan, including after giving effect to any Transfers permitted pursuant to the Loan Documents, (i) none
of the funds or other assets of Borrower, Key Principal or Guarantor shall constitute property of, or shall be beneficially owned, directly
or indirectly, by any Person subject to trade restrictions under United States law, including, but not limited to, the International
Emergency Economic Powers Act, 50 U.S.C. §§ 1701 et seq., as amended, The Trading with the Enemy Act, 50 U.S.C. App. 1 et seq.,
as amended, and each of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter
V, as amended), the Patriot Act, Executive Order 13224, and any legislation, executive orders and rules and regulations, enabling
or promulgated under any of the foregoing (each, an “Embargoed Person”), with the result that the investment
in Borrower, Key Principal or Guarantor, as applicable (whether directly or indirectly), would be prohibited by law, or the Loan made
by Lender would be in violation of law, (ii) no Embargoed Person or other Prohibited Person shall have any interest of any nature
whatsoever in Borrower, Key Principal or Guarantor, as applicable, with the result that the investment in Borrower, Key Principal or
Guarantor, as applicable (whether directly or indirectly), would be prohibited by law or the Loan would be in violation of law, and (iii) none
of the funds of Borrower, Key Principal or Guarantor, as applicable, shall be derived from any unlawful activity with the result that
the investment in Borrower, Key Principal or Guarantor, as applicable (whether directly or indirectly), would be prohibited by law or
the Loan would be in violation of law.


 


Section 4.33           Anti-Corruption
Obligations. Borrower represents and warrants that, in connection with this Agreement, Borrower
and, to Borrower’s knowledge, each Person that has an economic interest in Borrower, has complied with and will continue to comply
with all applicable anti-bribery and corruption laws and regulations, including the U.S. Foreign Corrupt Practices Act of 1977 and the
U.K. Bribery Act 2010 (the “Anti-Corruption Obligation”).  Borrower shall, at all times throughout the
Term, maintain and enforce appropriate policies, procedures and controls to ensure compliance with the Anti-Corruption Obligation.


 






    55


     


    

 


Article 5


 


INSURANCE,
CASUALTY AND CONDEMNATION


 


Section 5.1             Insurance.


 


5.1.1        Insurance
Policies.


 


(a)            Borrower,
at its sole cost and expense, shall obtain and maintain during the entire Term, or cause to be maintained, insurance policies for Borrower
and the Property providing at least the following coverages:


 


(i)            Property
insurance against loss or damage by fire, any type of wind (including named storms), lightning, and such other perils as are included
in a standard “special form” or “all-risk” policy, and against loss or damage by all other risks and hazards
covered by a standard extended coverage insurance policy, with no exclusion for damage or destruction caused by acts of terrorism (or,
subject to Section 5.1.1(i) below, standalone coverage with respect thereto) riot and civil commotion, vandalism, malicious
mischief, burglary and theft (A) in an amount equal to one hundred percent (100%) of the “Full Replacement Cost”
of the Property, which for purposes of this Agreement shall mean actual replacement value (exclusive of costs of excavations, foundations,
underground utilities and footings) with a waiver of depreciation; (B) have deductibles no greater than $25,000, with the exception
of windstorm or earthquake, which may have deductibles not to exceed five percent (5%) of the total insurable value of the Property per
occurrence; (C) to be written on a no coinsurance form or containing an agreed amount endorsement with respect to the Improvements
and personal property at the Property waiving all co-insurance provisions; and (D) containing “Ordinance or Law Coverage”
coverage if any of the Improvements or the use of the Property shall at any time constitute legal non-conforming structures or uses,
and compensating for loss to the undamaged portion of the building (with a limit equal to replacement cost), the cost of demolition and
the increased costs of construction, each in amounts as required by Lender. In addition, Borrower shall obtain: (y) if any portion
of the Improvements or Personal Property is currently or at any time in the future located in a federally designated special flood hazard
area (“SFHA”), flood hazard insurance for all such Improvements and/or Personal Property located in the SFHA
in an amount equal to the (1) the maximum amount of building and, if applicable, contents insurance available under the National
Flood Insurance Act of 1968, the Flood Disaster Protection Act of 1973 or the National Flood Insurance Reform Act of 1994, as each may
be amended (the “Flood Insurance Acts”) plus (2) such additional coverage as Lender shall require, subject
to a deductible not to exceed an amount equal to the maximum available through the Flood Insurance Acts; and (z) earthquake insurance
in amounts and in form and substance satisfactory to Lender (provided that Lender shall not require earthquake insurance unless
the Property is located in an area with a high degree of seismic activity and a Probable Maximum Loss (“PML”)
or Scenario Expected Loss (“SEL”) of greater than 20%), provided that the insurance pursuant to clauses
(y) and (z) hereof shall be on terms consistent with the comprehensive all risk insurance policy required under this subsection (i);


 


(ii)           commercial
general liability insurance, including coverages against claims for personal injury, bodily injury, death or property damage occurring
upon, in or about the Property, such insurance (A) to be on the so-called “occurrence” form and containing minimum limits
per occurrence of One Million and No/100 Dollars ($1,000,000.00), with a combined limit per policy year, excluding umbrella coverage,
of not less than Two Million and No/100 Dollars ($2,000,000.00); (B) to continue at not less than the aforesaid limit until required
to be changed by Lender by reason of changed economic conditions making such protection inadequate; and (C) to cover at least the
following hazards: (1) premises and operations; (2) products and completed operations on an “if any” basis; (3) independent
contractors; and (4) contractual liability for all insured contracts to the extent the same is available;


 






    56


     


    

 


(iii)          rental
loss and/or business income interruption insurance (A) with loss payable to Lender; (B) covering all risks required to be covered
by the insurance provided for in subsection (i) above, subsection (vi) below and Section 5.1.1(h) below;
(C) covering a period of restoration of twelve (12) months and containing an extended period of indemnity endorsement which provides
that after the physical loss to the Improvements and Personal Property has been repaired, the continued loss of income will be insured
until such income either returns to the same level it was at prior to the loss, or the expiration of six (6) months from the date
that the Property is repaired or replaced and operations are resumed, whichever first occurs, and notwithstanding that the policy may
expire prior to the end of such period; and (D) in an amount equal to one hundred percent (100%) of the projected Gross Revenue
from the Property (less non-continuing expenses) for a period of twelve (12) months. The amount of such business income insurance shall
be determined prior to the date hereof and at least once each year thereafter based on Borrower’s reasonable estimate of the Gross
Revenue from the Property (less non-continuing expenses) for the succeeding twelve (12) month period. All proceeds payable to Lender
pursuant to this subsection shall be held by Lender and shall be applied to the Obligations secured by the Loan Documents from time
to time due and payable hereunder and under the Note; provided, however, that nothing herein contained shall be deemed to relieve Borrower
of its Obligations to pay the Debt on the respective dates of payment provided for in the Note and the other Loan Documents except to
the extent such amounts are actually paid out of the proceeds of such business income insurance;


 


(iv)          at
all times during which structural construction, repairs or alterations are being made with respect to the Improvements, and only if the
property or liability coverage forms do not otherwise apply, (A)  commercial general liability and umbrella liability insurance
covering claims related to the construction, repairs or alterations being made which are not covered by or under the terms or provisions
of the commercial general liability and umbrella liability insurance policy required as set forth in Section 5.1.1(a); and
(B) the insurance provided for in subsection (i) above written in a so-called builder’s risk completed value form
(1) on a non-reporting basis, (2) against all risks insured against pursuant to subsection (i) above, (3) including
permission to occupy the Property, and (4) with an agreed amount endorsement waiving co-insurance provisions;


 


(v)           workers’
compensation, subject to the statutory limits of the state in which the Property is located, and employer’s liability insurance
with limits which are required from time to time by Lender in respect of any work or operations on or about the Property, or in connection
with the Property or its operation (if applicable);


 


(vi)          comprehensive
boiler and machinery/equipment breakdown insurance, if applicable, in amounts as shall be reasonably required by Lender on terms consistent
with the commercial property insurance policy required under subsection (i) above;


 


(vii)         umbrella
liability insurance in addition to primary coverage in an amount not less than $8,000,000.00 per occurrence on terms consistent with
the commercial general liability insurance policy required under subsection (ii) above and subsection (viii) below;


 


(viii)       motor
vehicle liability coverage for all owned and non-owned vehicles, including rented and leased vehicles containing minimum limits per occurrence,
including umbrella coverage, with limits which are required from time to time by Lender (if applicable);


 






    57


     


    

 


(ix)           intentionally
omitted;


 


(x)            insurance
against employee dishonesty with respect to any employees of Borrower in an amount not less than one (1) month of Gross Revenue
from the Property and with a deductible not greater than Twenty Five Thousand and 00/100 Dollars ($25,000.00); and


 


(xi)           upon
sixty (60) days notice, such other reasonable insurance and in such reasonable amounts as Lender from time to time may reasonably request
against such other insurable hazards which at the time are commonly insured against for properties similar to the Property located in
or around the region in which the Property is located.


 


(b)            All
insurance provided for in Section 5.1.1(a) shall be obtained under valid and enforceable policies (collectively, the
 “Policies” or in the singular, the “Policy”) and shall be subject to the approval
of Lender as to form and substance, including insurance companies, amounts, deductibles, loss payees and insureds. Not less than ten
(10) days prior to the expiration dates of the Policies theretofore furnished to Lender, certificates of insurance evidencing the
Policies (and, upon the written request of Lender, copies of such Policies) accompanied by evidence satisfactory to Lender of payment
of the premiums then due thereunder (the “Insurance Premiums”), shall be delivered by Borrower to Lender.


 


(c)            Any
blanket insurance Policy shall be subject to Lender approval and shall otherwise provide the same protection as would a separate Policy
insuring only the Property in compliance with the provisions of Section 5.1.1(a) (any such blanket policy, an “Acceptable
Blanket Policy”). To the extent that the Policies are maintained pursuant to an Acceptable Blanket Policy that covers more
than one location within a one thousand foot radius of the Property (the “Radius”), the limits of such Acceptable
Blanket Policy must be sufficient to maintain coverage as set forth in Section 5.1.1(a) for the Property and any and
all other locations combined within the Radius that are covered by such blanket policy calculated on a total insured value basis. Borrower
shall notify Lender of any changes to the Acceptable Blanket Policy, including changes to the limits and the insured values covered under
the Acceptable Blanket Policy, which such changes shall be subject Lender’s approval.


 


(d)            All
Policies of insurance provided for or contemplated by Section 5.1.1(a) shall name Borrower as a named insured and, with
respect to Policies of liability insurance, except for the Policies referenced in Section 5.1.1(a)(v) and (viii), shall
name Lender and its successors and/or assigns as additional insured, as its interests may appear, and in the case of Policies of property
insurance, including but not limited to special form/all-risk, boiler and machinery, terrorism, windstorm, flood, rental loss and/or
business interruption and earthquake insurance, shall contain a standard non-contributing mortgagee clause in favor of Lender providing
that the loss thereunder shall be payable to Lender unless below the threshold for Borrower to handle such claim without Lender intervention
as provided in Section 5.2 below. Additionally, if Borrower obtains property insurance coverage in addition to or in excess
of that required by Section 5.1.1(a)(i), then such insurance policies shall also contain a standard non-contributing mortgagee
clause in favor of Lender providing that the loss thereunder shall be payable to Lender.


 






    58


     


    

 


(e)            All
Policies of insurance provided for in Section 5.1.1(a) shall:


 


(i)            with
respect to the Policies of property insurance, contain clauses or endorsements to the effect that, (1) no act or negligence of Borrower,
or anyone acting for Borrower, or of any Tenant or other occupant, or failure to comply with the provisions of any Policy, which might
otherwise result in a forfeiture of the insurance or any part thereof, or foreclosure or similar action, shall in any way affect the
validity or enforceability of the insurance insofar as Lender is concerned, (2) the Policies shall not be cancelled without at least
30 days’ written notice to Lender, except ten (10) days’ notice for non-payment of premium and (3) the issuer(s) of
the Policies shall give written notice to Lender if the issuers elect not to renew the Policies prior to its expiration;


 


(ii)           with
respect to all Policies of liability insurance, if obtainable by Borrower using commercially reasonable efforts, contain clauses or endorsements
to the effect that, (1) the Policy shall not be canceled without at least thirty (30) days’ written notice to Lender and any
other party named therein as an additional insured (other than in the case of non-payment in which case only ten (10) days prior
notice, or the shortest time allowed by applicable Legal Requirement (whichever is longer), will be required) and shall not be materially
changed (other than to increase the coverage provided thereby) without such a thirty (30) day notice and (2) the issuers thereof
shall give notice to Lender if the issuers elect not to renew such Policies prior to its expiration. If the issuers cannot or will not
provide notice, the Borrower shall be obligated to provide such notice; and


 


(iii)           not
contain any clause or provision that would make Lender liable for any Insurance Premiums thereon or subject to any assessments thereunder.


 


(f)             If
at any time Lender is not in receipt of written evidence that all insurance required hereunder is in full force and effect, Lender shall
have the right, without notice to Borrower, to take such action as Lender deems necessary to protect its interest in the Property, including
the obtaining of such insurance coverage as Lender in its sole discretion deems appropriate and all premiums incurred by Lender in connection
with such action or in obtaining such insurance and keeping it in effect shall be paid by Borrower to Lender upon demand and until paid
shall be secured by the Mortgage and shall bear interest at the Default Rate.


 


(g)            In
the event of foreclosure of the Mortgage or other transfer of title to the Property in extinguishment in whole or in part of the Obligations,
all right, title and interest of Borrower in and to the Policies that are not blanket Policies then in force concerning the Property
and all proceeds payable thereunder shall thereupon vest in the purchaser at such foreclosure or Lender or other transferee in the event
of such other transfer of title.


 


(h)            The
property insurance, commercial general liability, umbrella liability insurance and rental loss and/or business interruption insurance
required under Sections 5.1.1(a)(i), (ii), (iii) and (vii) above shall cover perils of terrorism
and acts of terrorism (or at least not specifically exclude same) and Borrower shall maintain property insurance, commercial general
liability, umbrella liability insurance and rental loss and/or business interruption insurance for loss resulting from perils and acts
of terrorism on terms (including amounts and deductibles) consistent with those required under Sections 5.1.1(a)(i), (ii),
(iii) and (vii) above (or at least not specifically excluding same) at all times during the term of the Loan.
For so long as TRIPRA is in effect and continues to cover both foreign and domestic acts, Lender shall accept terrorism insurance with
coverage against acts which are “certified” within the meaning of TRIPRA.


 






    59


     


    

 


(i)              Notwithstanding
anything in subsection (a)(i) or (h) above to the contrary, Borrower shall be required to obtain and maintain coverage
in its property insurance Policy (or by a separate Policy) against loss or damage by terrorist acts in an amount equal to one hundred
percent (100%) of the “Full Replacement Cost” of the Property plus the rental loss and/or business interruption coverage
under subsection (a)(iii) above; provided that such coverage is available. In the event that such coverage with respect to
terrorist acts is not included as part of the “all risk” property policy required by subsection (a)(i) above,
Borrower shall, nevertheless be required to obtain coverage for terrorism (as standalone coverage) in an amount equal to one hundred
percent (100%) of the “Full Replacement Cost” of the Property plus the rental loss and/or business interruption coverage
under subsection (a)(iii) above; provided that such coverage is available. Borrower shall obtain the coverage required under
this clause (i) from a carrier which otherwise satisfies the rating criteria specified in Section 5.1.2 below
(a “Qualified Carrier”) or in the event that such coverage is not available from a Qualified Carrier, Borrower
shall obtain such coverage from the highest rated insurance company providing such coverage.


 


5.1.2        Insurance
Company. All Policies required pursuant to Section 5.1.1: (i) shall be
issued by companies authorized or licensed to do business in the state where the Property is located, with a financial strength and claims
paying ability rating of (1) “A” or better by S&P and (2) “A:X” or better in the current Best’s
Insurance Reports; (ii)  shall, with respect to all property insurance policies and rental loss and/or business interruption
insurance policies, contain a Standard Mortgagee Clause/Lender’s Loss Payable Endorsement, or their equivalents, naming Lender
as the person to whom all payments made by such insurance company shall be paid; (iii) shall contain a waiver of subrogation against
Lender; (iv) shall contain such provisions as Lender deems reasonably necessary or desirable to protect its interest including endorsements
providing (A) that neither Borrower, Lender nor any other party shall be a co-insurer under said Policies and (B) in addition
to complying with any other requirements expressly set forth in Section 5.1 for a deductible per loss of an amount not more than
that which is customarily maintained by prudent owners of properties with a standard of operation and maintenance comparable to and in
the general vicinity of the Property, but in no event in excess of an amount reasonably acceptable to Lender; and (v) shall be satisfactory
in form and substance to Lender and shall be approved by Lender as to amounts, form, risk coverage, deductibles, loss payees and insureds.
In addition to the insurance coverages described in Section 5.1.1 above, Borrower shall obtain such other insurance as may
from time to time be reasonably required by Lender in order to protect its interests. Complete copies of the Policies shall be delivered
to Lender at the address below (or to such other address or Person as Lender shall designate from time to time by notice to Borrower)
on the date hereof with respect to the current Policies and within thirty (30) days after the effective date thereof with respect to
all renewal Policies:


 


DBR Investments Co. Limited 


1 Columbus Circle, 15th Floor 


New York, New York 10019 


Attn: Joanne Marcino


 






    60


     


    

 



 


Borrower shall pay the Insurance Premiums annually
in advance as the same become due and payable and shall furnish to Lender evidence of the renewal of each of the Policies with receipts
for the payment of the Insurance Premiums or other evidence of such payment reasonably satisfactory to Lender (provided, however, that
Borrower shall not be required to pay such Insurance Premiums nor furnish such evidence of payment to Lender in the event that the amounts
required to pay such Insurance Premiums have been deposited into the Insurance Account pursuant to Section 6.4 hereof). Within
thirty (30) days after request by Lender, Borrower shall obtain such increases in the amounts of coverage required hereunder as may be
reasonably requested by Lender, taking into consideration changes in the value of money over time, changes in liability laws, changes
in prudent customs and practices.


 


Section 5.2         Casualty.
If the Property shall be damaged or destroyed, in whole or in part, by fire or other casualty (a “Casualty”),
Borrower shall give prompt notice thereof to Lender. Following the occurrence of a Casualty, Borrower, regardless of whether insurance
proceeds are available, shall promptly proceed to restore, repair, replace or rebuild the Property in accordance with Legal Requirements
to be of at least equal value and of substantially the same character as prior to such damage or destruction. Lender may, but shall not
be obligated to make proof of loss if not made promptly by Borrower. In addition, Lender may participate in any settlement discussions
with any insurance companies (and shall approve any final settlement) (i) if an Event of Default is continuing or (ii) with
respect to any Casualty in which the Net Proceeds or the costs of completing the Restoration are equal to or greater than One Million
and No/100 Dollars ($1,000,000) and Borrower shall deliver to Lender all instruments required by Lender to permit such participation.
Any Insurance Proceeds in connection with any Casualty (whether or not Lender elects to settle and adjust the claim or Borrower settles
such claim) shall be due and payable solely to Lender and held by Lender in accordance with the terms of this Agreement. In the event
Borrower or any party other than Lender is a payee on any check representing Insurance Proceeds with respect to any Casualty, Borrower
shall immediately endorse, and cause all such third parties to endorse, such check payable to the order of Lender. Borrower hereby irrevocably
appoints Lender as its attorney-in-fact, coupled with an interest, to endorse any such check payable to the order of Lender. Borrower
hereby releases Lender from any and all liability with respect to the settlement and adjustment by Lender of any claims in respect of
any Casualty.


 






    61


     


    

 


Section 5.3             Condemnation.
Borrower shall promptly give Lender notice of the actual or threatened commencement of any proceeding for the Condemnation of all or any
portion of the Property and shall deliver to Lender copies of any and all papers served in connection with such proceedings. Lender may
participate in any such proceedings, and Borrower shall from time to time deliver to Lender all instruments requested by it to permit
such participation. Borrower shall, at its expense, diligently prosecute any such proceedings, and shall consult with Lender, its attorneys
and experts, and cooperate with them in the carrying on or defense of any such proceedings. Notwithstanding any taking by any public or
quasi-public authority through Condemnation or otherwise (including, but not limited to, any transfer made in lieu of or in anticipation
of the exercise of such taking), Borrower shall continue to pay the Debt at the time and in the manner provided for its payment in the
Note and in this Agreement and the Debt shall not be reduced until any Award shall have been actually received and applied by Lender,
after the deduction of expenses of collection, to the reduction or discharge of the Debt. Lender shall not be limited to the interest
paid on the Award by the condemning authority but shall be entitled to receive out of the Award interest at the rate or rates provided
herein or in the Note. If the Property or any portion thereof is taken by a condemning authority, Borrower shall promptly commence and
diligently prosecute the Restoration of the Property and otherwise comply with the provisions of Section 5.4, whether or not
an Award is available to pay the costs of such Restoration. If the Property is sold, through foreclosure or otherwise, prior to the receipt
by Lender of the Award, Lender shall have the right, whether or not a deficiency judgment on the Note shall have been sought, recovered
or denied, to receive the Award, or a portion thereof sufficient to pay the Debt.


 


Section 5.4             Restoration.
The following provisions shall apply in connection with the Restoration:


 


(a)            If
the Net Proceeds shall be less than the Restoration Threshold and the costs of completing the Restoration shall be less than the Restoration
Threshold, and provided no Event of Default is continuing, the Net Proceeds will be disbursed by Lender to Borrower upon receipt, provided
that all of the conditions set forth in Section 5.4(b)(i) are met and Borrower delivers to Lender a written undertaking
to expeditiously commence and to satisfactorily complete with due diligence the Restoration in accordance with the terms of this Agreement.


 


(b)            If
the Net Proceeds are equal to or greater than the Restoration Threshold or the costs of completing the Restoration are equal to or greater
than the Restoration Threshold, the Net Proceeds will be held by Lender and Lender shall make the Net Proceeds available for the Restoration
in accordance with the provisions of this Section 5.4. The term “Net Proceeds” shall mean: (i) the
net amount of all insurance proceeds received by Lender pursuant to Section 5.1.1(a)(i), (iii), (iv) and
(vi) and Section 5.1.1(h) as a result of such damage or destruction, after deduction of its reasonable costs
and expenses (including, but not limited to, reasonable counsel fees), if any, in collecting same (“Insurance Proceeds”),
or (ii) the net amount of the Award, after deduction of its reasonable costs and expenses (including, but not limited to, reasonable
counsel fees), if any, in collecting same (“Condemnation Proceeds”), whichever the case may be.


 


(i)              The
Net Proceeds shall be made available to Borrower for Restoration upon the determination of Lender, in its sole discretion, that the following
conditions are met:


 


(A)         no
Event of Default shall have occurred and be continuing;


 


(B)         (1) in
the event the Net Proceeds are Insurance Proceeds, less than twenty-five percent (25%) of the total floor area of the Improvements on
the Property has been damaged, destroyed or rendered unusable as a result of such Casualty or (2) in the event the Net Proceeds are
Condemnation Proceeds, less than ten percent (10%) of the land constituting the Property is taken, and such land is located along the
perimeter or periphery of the Property, and no portion of the Improvements is located on such land;


 


(C)         Leases
demising in the aggregate a percentage amount equal to or greater than seventy-five percent (75%) of the total rentable space in the Property
which has been demised under executed and delivered Leases in effect as of the date of the occurrence of such Casualty or Condemnation,
whichever the case may be, shall remain in full force and effect during and after the completion of the Restoration without abatement
of rent beyond the time required for Restoration, notwithstanding the occurrence of any such Casualty or Condemnation, whichever the case
may be, and will make all necessary repairs and restorations thereto that are not being made by Borrower as part of the Restoration at
their sole cost and expense;


 






    62


     


    

 


(D)         Borrower
shall commence the Restoration as soon as reasonably practicable (but in no event later than sixty (60) days after such Casualty or Condemnation,
whichever the case may be, occurs) and shall diligently pursue the same to satisfactory completion;


 


(E)          Lender
shall be satisfied that any operating deficits, including all scheduled payments of principal and interest under the Note, which will
be incurred with respect to the Property as a result of the occurrence of any such Casualty or Condemnation, whichever the case may be,
will be covered out of (1) the Net Proceeds, (2) the insurance coverage referred to in Section 5.1.1(a)(iii), if
applicable, or (3) by other funds of Borrower;


 


(F)          Lender
shall be satisfied that (x) the Restoration will be completed on or before the earliest to occur of (1) the date six (6) months
prior to the Stated Maturity Date, (2) the earliest date required for such completion under the terms of any Lease, (3) such
time as may be required under applicable Legal Requirements or (4) six (6) months prior to the expiration of the insurance coverage
referred to in Section 5.1.1(a)(iii) and (y) the Property can be restored to the Property’s pre-existing condition
and utility as existed immediately prior to such Casualty or Condemnation, and to an economic unit not less valuable and not less useful
than the same was immediately prior to the Casualty or Condemnation;


 


(G)         Intentionally
omitted;


 


(H)         the
Property and the use thereof after the Restoration will be in compliance with and permitted under all applicable Legal Requirements;


 


(I)           the
Restoration shall be done and completed by Borrower in an expeditious and diligent fashion and in compliance with all applicable Legal
Requirements;


 


(J)          such
Casualty or Condemnation, as applicable, does not result in the loss of access to the Property or the related Improvements;


 


(K)         the
Restoration DSCR, after giving effect to the Restoration, shall be equal to or greater than 1.25:1.00;


 


(L)         the
Loan to Value Ratio after giving effect to the Restoration, shall be equal to or less than sixty-eight percent (68%);


 


(M)         Borrower
shall deliver, or cause to be delivered, to Lender a signed detailed budget approved in writing by Borrower’s architect or engineer
stating the entire cost of completing the Restoration, which budget shall be acceptable to Lender; and


 






    63


     


    

 


(N)         the
Net Proceeds together with any cash or cash equivalent deposited by Borrower with Lender are sufficient in Lender’s discretion to
cover the cost of the Restoration.


 


(ii)             The
Net Proceeds shall be held by Lender in the Casualty and Condemnation Account and, until disbursed in accordance with the provisions of
this Section 5.4(b), shall constitute additional security for the Debt and other obligations under the Loan Documents. The
Net Proceeds shall be disbursed by Lender to, or as directed by, Borrower from time to time during the course of the Restoration, upon
receipt of evidence satisfactory to Lender that (A) all materials installed and work and labor performed (except to the extent that
they are to be paid for out of the requested disbursement) in connection with the Restoration have been paid for in full, and (B) there
exist no notices of pendency, stop orders, mechanic’s or materialman’s liens or notices of intention to file same, or any
other liens or encumbrances of any nature whatsoever on the Property which have not either been fully bonded to the satisfaction of Lender
and discharged of record or in the alternative fully insured to the satisfaction of Lender by the title company issuing the Title Insurance
Policy.


 


(iii)            All
plans and specifications required in connection with the Restoration shall be subject to the prior approval of Lender and an independent
consulting engineer selected by Lender (the “Casualty Consultant”). Lender shall have the use of the plans and
specifications and all permits, licenses and approvals required or obtained in connection with the Restoration. The identity of the contractors,
subcontractors and materialmen engaged in the Restoration, as well as the contracts under which they have been engaged, shall be subject
to the approval of Lender and the Casualty Consultant. All costs and expenses incurred by Lender in connection with recovering, holding
and advancing the Net Proceeds for the Restoration including, without limitation, reasonable attorneys’ fees and disbursements and
the Casualty Consultant’s fees and disbursements, shall be paid by Borrower.


 


(iv)           In
no event shall Lender be obligated to make disbursements of the Net Proceeds in excess of an amount equal to the costs actually incurred
from time to time for work in place as part of the Restoration, as certified by the Casualty Consultant, less the Casualty Retainage.
The term “Casualty Retainage” shall mean, as to each contractor, subcontractor or materialman engaged in the
Restoration, an amount equal to ten percent (10%) of the costs actually incurred for work in place as part of the Restoration, as certified
by the Casualty Consultant, until the Restoration has been completed. The Casualty Retainage shall in no event, and notwithstanding anything
to the contrary set forth above in this Section 5.4(b), be less than the amount actually held back by Borrower from contractors,
subcontractors and materialmen engaged in the Restoration. The Casualty Retainage shall not be released until the Casualty Consultant
certifies to Lender that the Restoration has been completed in accordance with the provisions of this Section 5.4(b) and
that all approvals necessary for the re-occupancy and use of the Property have been obtained from all appropriate Governmental Authorities,
and Lender receives evidence satisfactory to Lender that the costs of the Restoration have been paid in full or will be paid in full out
of the Casualty Retainage; provided, however, that Lender will release the portion of the Casualty Retainage being held with respect to
any contractor, subcontractor or materialman engaged in the Restoration as of the date upon which (i) the Casualty Consultant certifies
to Lender that such contractor, subcontractor or materialman has satisfactorily completed all work and has supplied all materials in accordance
with the provisions of such contractor’s, subcontractor’s or materialman’s contract, (ii) the contractor, subcontractor
or materialman delivers the lien waivers and evidence of payment in full of all sums due to the contractor, subcontractor or materialman
as may be reasonably requested by Lender or by the title company issuing the Title Insurance Policy, and (iii) Lender receives an
endorsement to the Title Insurance Policy insuring the continued priority of the Lien of the Mortgage and evidence of payment of any premium
payable for such endorsement. If required by Lender, the release of any such portion of the Casualty Retainage shall be approved by the
surety company, if any, which has issued a payment or performance bond with respect to the contractor, subcontractor or materialman.


 






    64


     


    

 


(v)             Lender
shall not be obligated to make disbursements of the Net Proceeds more frequently than once every calendar month.


 


(vi)           If
at any time the Net Proceeds (excluding the Net Proceeds pursuant to Section 5.1.1(a)(iii)) or the undisbursed balance thereof
shall not, in the opinion of Lender in consultation with the Casualty Consultant, be sufficient to pay in full the balance of the costs
which are estimated by the Casualty Consultant to be incurred in connection with the completion of the Restoration, Borrower shall deposit
the deficiency (the “Net Proceeds Deficiency”) with Lender (for deposit into the Casualty and Condemnation Account)
before any further disbursement of the Net Proceeds shall be made. The Net Proceeds Deficiency deposited with Lender shall be deposited
by Lender into the Casualty and Condemnation Account and shall be disbursed for costs actually incurred in connection with the Restoration
on the same conditions applicable to the disbursement of the Net Proceeds, and until so disbursed pursuant to this Section 5.4(b) shall
constitute additional security for the Obligations.


 


(vii)          The
excess, if any, of the Net Proceeds and the remaining balance, if any, of the Net Proceeds Deficiency deposited with Lender after the
Casualty Consultant certifies to Lender that the Restoration has been completed in accordance with the provisions of this Section 5.4(b),
and the receipt by Lender of evidence satisfactory to Lender that all costs incurred in connection with the Restoration have been paid
in full, shall be remitted by Lender to Borrower, provided no Event of Default shall have occurred and shall be continuing.


 


(c)            Notwithstanding
anything to the contrary set forth in this Agreement, including the provisions of this Section 5.4, if the Loan is included
in a REMIC Trust and, immediately following a release of any portion of the Lien of the Mortgage following a Casualty or Condemnation
(but taking into account any proposed Restoration of the remaining Property), the ratio of the unpaid principal balance of the Loan to
the value of the remaining Property is greater than 125% (such value to be determined, in Lender’s sole discretion, by any commercially
reasonable method permitted to a REMIC Trust; and which shall exclude the value of personal property or going concern value, if any),
the Outstanding Principal Balance must be paid down by an amount equal to the least of the following amounts: (i) the net Award (after
payment of Lender’s costs and expenses and any other fees and expenses that have been approved by Lender) or the net Insurance Proceeds
(after payment of Lender’s costs and expenses and any other fees and expenses that have been approved by Lender), as the case may
be, or (ii) a “qualified amount” as that term is defined in the IRS Revenue Procedure 2010-30, as the same may be amended,
replaced, supplemented or modified from time to time, unless Lender receives an opinion of counsel that if such amount is not paid, the
applicable Securitization will not fail to maintain its status as a REMIC Trust as a result of the related release of such portion of
the Lien of the Mortgage. If and to the extent the preceding sentence applies, only such amount of the net Award or net Insurance Proceeds
(as applicable), if any, in excess of the amount required to pay down the principal balance of the Loan may be released for purposes of
Restoration or released to Borrower as otherwise expressly provided in this Section 5.4.


 






    65


     


    

 


(d)            All
Net Proceeds not required (i) to be made available for the Restoration or (ii) to be returned to Borrower as excess Net Proceeds
pursuant to Section 5.4(b)(vii) may be retained and applied by Lender in accordance with Section 2.4.4 hereof
toward the payment of the Debt whether or not then due and payable in such order, priority and proportions as Lender in its sole discretion
shall deem proper, or, at the discretion of Lender, the same may be paid, either in whole or in part, to Borrower for such purposes as
Lender shall approve, in its discretion. Additionally, throughout the term of the Loan if an Event of Default is continuing, then Borrower
shall pay to Lender, with respect to any payment of the Debt pursuant to this Section 5.4(d), an additional amount equal to
the Prepayment Fee and any applicable Liquidated Damages Amount; provided, however, that if an Event of Default is not continuing, then
no Prepayment Fee or Liquidated Damages Amount shall be payable.


 


(e)            In
the event of foreclosure of the Mortgage, or other transfer of title to the Property in extinguishment in whole or in part of the Debt
all right, title and interest of Borrower in and to the Policies that are not blanket Policies then in force concerning the Property and
all proceeds payable thereunder shall thereupon vest in the purchaser at such foreclosure or Lender or other transferee in the event of
such other transfer of title.


 


(f)             Notwithstanding
anything to the contrary contained herein, if in connection with a Casualty, any insurance company makes a payment under a property or
business or rental interruption insurance Policy that Borrower proposes be treated as business or rental interruption insurance, then,
notwithstanding any designation (or lack of designation) by the insurance company as to the purpose of such payment, as between Lender
and Borrower, such payment shall not be treated as business or rental interruption Insurance Proceeds unless Borrower (i) has demonstrated
to Lender’s satisfaction that the remaining Net Proceeds that have been received from the property insurance companies are sufficient
to pay one hundred percent (100%) of the cost of the Restoration or, if such Net Proceeds are to be applied to repay the Obligations in
accordance with the terms hereof, that such remaining Net Proceeds will be sufficient to satisfy the Obligations in full or (ii) to
the extent Borrower is not able to satisfy Lender as to the sufficiency of the remaining funds to pay one hundred percent (100%) of the
Restoration or to satisfy the Obligations in full prior to distribution of Net Proceeds, Borrower has agreed to fund any shortfall from
funds other than from Gross Revenues or borrowed funds and has provided such security as Lender may require to insure payment of such
shortfalls. To the extent any payment under a property or business or rental interruption insurance Policy is treated as business or rental
interruption insurance in accordance with this paragraph (f), such funds shall be deposited into the Casualty and Condemnation Account.
Provided that no Event of Default then exists, Insurance Proceeds treated as business or rental interruption insurance in accordance
with this paragraph (f) (to the extent of available funds) shall be (A) first applied by Lender, on each Monthly Payment Date,
to pay for Debt Service, deposits of Reserve Funds and payments of the Monthly Operating Expense Budgeted Amount and any Approved Extraordinary
Operating Expenses, in each case as approved by Lender, actually incurred (collectively, the “Approved Monthly BI Expenses”)
for such month pursuant to, and in the priorities set forth in, Section 6.16.1, and (B) second, to the extent that Lender
determines that the amount of business or rental interruption Insurance Proceeds then remaining in the Casualty and Condemnation Account
is sufficient to pay for all future Approved Monthly BI Expenses through the completion of the subject Restoration and stabilization of
the Property, disbursed by Lender to Borrower in an aggregate amount under this clause (B) not to exceed the Approved Monthly
BI Expenses actually incurred and paid for by Borrower from the date of the applicable Casualty to the date of the first installment of
business or rental interruption Insurance Proceeds advanced by the applicable insurance company (as evidenced by supporting documentation
by Borrower that is acceptable to Lender). Provided no Trigger Period then exists, all remaining business or rental interruption insurance
proceeds shall be disbursed to Borrower upon the final completion of the subject Restoration and the recommencement of full unabated rent
being paid by the Tenants under the Leases required to remain in place pursuant to Section 5.4(b)(i)(C).


 






    66


     


    

 


Article 6


 


CASH
MANAGEMENT AND RESERVE FUNDS


 


Section 6.1         Cash
Management Arrangements. Upon the first occurrence of a Lockbox Trigger Event, Borrower shall
establish a trust account (the “Clearing Account”) at an Eligible Institution selected by Borrower and reasonably
approved by Lender (the “Clearing Bank”), which Clearing Account shall be maintained by Borrower at all times
after the first occurrence of a Lockbox Trigger Event. Prior to the Closing Date, Borrower has delivered to Clearing Bank all executed
Clearing Account opening documentation which has been required by the Clearing Bank to be held in escrow until the first occurrence of
a Lockbox Trigger Event. Upon the first occurrence of a Lockbox Trigger Event, Clearing Bank shall open or activate, as applicable, the
Clearing Account upon notice by Lender pursuant to the Clearing Account Agreement. Upon the commencement of the first Lockbox Trigger
Event and at all times thereafter, Borrower shall cause all Gross Revenue to be transmitted directly by non-residential Tenants of the
Property into the Clearing Account maintained at the Clearing Bank as more fully described in the Clearing Account Agreement. Without
in any way limiting the foregoing, if Borrower or Manager receive any Gross Revenue from the Property, then (i) such amounts shall
be deemed to be collateral for the Obligations and shall be held in trust for the benefit, and as the property, of Lender, (ii) such
amounts shall not be commingled with any other funds or property of Borrower or Manager, and (iii) Borrower or Manager shall deposit
such amounts in the Clearing Account within one (1) Business Day of receipt. Thereafter, (x) during any Trigger Period, funds
deposited into the Clearing Account shall be swept by the Clearing Bank on a daily basis into the Deposit Account and applied and disbursed
in accordance with this Agreement and (y) if a Trigger Period is not continuing, funds deposited into the Clearing Account shall
be swept by the Clearing Bank on a daily basis into Borrower’s operating account at the Clearing Bank. Funds in the Deposit Account
that are invested shall be invested in Permitted Investments, as more particularly set forth in the Cash Management Agreement. Lender
may also establish subaccounts of the Deposit Account which shall at all times be Eligible Accounts (and may be ledger or book entry accounts
and not actual accounts) (such subaccounts are referred to herein as “Accounts”). The Deposit Account and all
other Accounts will be under the sole control and dominion of Lender, and Borrower shall have no right of withdrawal therefrom. Borrower
shall pay for all expenses of opening and maintaining all of the above accounts.


 






    67


     


    

 


Section 6.2         Required
Repairs Funds.


 


6.2.1         Deposit
of Required Repairs Funds. Borrower shall perform the repairs and other work at the Property
as set forth on Schedule II (such repairs and other work hereinafter referred to as “Required Repairs”)
and shall complete each of the Required Repairs on or before the respective deadline for each repair as set forth on Schedule II,
which may be extended at Lender’s option if diligently pursued. On the Closing Date, Borrower shall deposit with or on behalf of
Lender the amount set forth on such Schedule II to complete the Required Repairs (the “Required Repairs Funds”),
which Required Repairs Funds shall be transferred by Deposit Bank into an Account (the “Required Repairs Account”).
Borrower shall deliver evidence reasonably acceptable to Lender that all fire code violations set forth in the Zoning Report have been
closed out by the applicable Governmental Authority following completion of the Required Repairs.


 


6.2.2         Release
of Required Repairs Funds. Provided no Event of Default is continuing, Lender shall direct
Servicer to disburse Required Repairs Funds to Borrower out of the Required Repairs Account, within ten (10) days after the delivery
by Borrower to Lender of a request therefor (but not more often than once per month), in increments of at least $10,000 (or a lesser amount
if the total amount in the Required Repairs Account is less than $10,000, in which case only one disbursement of the amount remaining
in the account shall be made) provided that: (i) such disbursement is for Required Repairs; (ii) the request for disbursement
is accompanied by (A) an Officer’s Certificate from Borrower (1) stating that the items to be funded by the requested
disbursement are for Required Repairs, and a description thereof, (2) stating that all Required Repairs to be funded by the requested
disbursement have been completed in a good and workmanlike manner and in accordance with all applicable Legal Requirements, (3) identifying
each Person that supplied materials or labor in connection with the Required Repairs to be funded by the requested disbursement, (4) stating
that each such Person has been paid in full not more than sixty (60) days prior to the disbursement request or will be paid in full upon
such disbursement, or if such payment is a progress payment, that such payment represents full payment to such Person, less any applicable
retention amount, for work completed through the date of the relevant invoice from such Person, (5) stating that the Required Repairs
(or relevant portion thereof) to be funded have not been the subject of a previous disbursement from any Account or included in any previous
disbursement of Operating Expenses or Capital Expenditures, (6) stating that all previous disbursements of Required Repair Funds
have been used to pay the previously identified Required Repairs, and (7) stating that all outstanding trade payables (other than
those to be paid from the requested disbursement or those constituting Permitted Indebtedness) have been paid in full other than any applicable
retention amount, (B) as to any completed Required Repair a copy of any license, permit or other approval by any Governmental Authority
required, if any, in connection with the Required Repairs and not previously delivered to Lender, (C) copies of appropriate lien
waivers (or conditional lien waivers) or other evidence of payment satisfactory to Lender, (D) at Lender’s option, a title
search for the Property indicating that the Property is free from all Liens, claims and other encumbrances not previously approved by
Lender, and (E) such other evidence as Lender shall reasonably request to demonstrate that the Required Repairs to be funded by the
requested disbursement have been completed (or completed to the extent of the requested payment) and are paid for or will be paid upon
such disbursement to Borrower. If such disbursement request is for $20,000 or more, Lender shall have (if it desires) verified (by an
inspection conducted at Borrower’s expense) performance of the work associated with such Required Repairs. Upon Borrower’s
completion of all Required Repairs in accordance with this Section 6.2, Lender shall direct Servicer to release any remaining
Required Repairs Funds, if any, in the Required Repairs Account to Borrower.


 






    68


     


    

 


Section 6.3         Tax
Funds.


 


6.3.1         Deposits
of Tax Funds. Borrower shall deposit with Lender (i) on the Closing Date, an amount
equal to $18,395.81 and (ii) on each Monthly Payment Date, an amount equal to one-twelfth of the Real Estate Taxes that Lender estimates
will be payable during the next ensuing twelve (12) months (initially, $18,395.84), in order to accumulate sufficient funds to pay all
such Real Estate Taxes at least thirty (30) days prior to their respective due dates, which amounts shall be transferred into an Account
(the “Tax Account”). Amounts deposited from time to time into the Tax Account pursuant to this Section 6.3.1
are referred to herein as the “Tax Funds”. If at any time Lender reasonably determines that the Tax Funds will
not be sufficient to pay the Real Estate Taxes, Lender shall notify Borrower of such determination and the monthly deposits for Real Estate
Taxes shall be increased by the amount that Lender estimates is sufficient to make up the deficiency at least ten (10) days prior
to the respective due dates for the Real Estate Taxes; provided, that if Borrower receives notice of any deficiency after the date that
is ten (10) days prior to the date that Real Estate Taxes are due, Borrower will deposit with or on behalf of Lender such amount
within one (1) Business Day after its receipt of such notice.


 


6.3.2         Release
of Tax Funds. Provided no Event of Default shall exist and remain uncured, Lender shall direct
Servicer to apply Tax Funds in the Tax Account to payments of Real Estate Taxes. In making any payment relating to Real Estate Taxes,
Lender may do so according to any bill, statement or estimate procured from the appropriate public office (with respect to Real Estate
Taxes) without inquiry into the accuracy of such bill, statement or estimate or into the validity of any tax, assessment, sale, forfeiture,
tax lien or title or claim thereof. If the amount of the Tax Funds shall exceed the amounts due for Real Estate Taxes and provided that
no Trigger Period exists, Lender shall, in its sole discretion, return any excess to Borrower or credit such excess against future payments
to be made to the Tax Funds. Any Tax Funds remaining in the Tax Account after the Obligations have been paid in full shall be returned
to Borrower.


 


Section 6.4         Insurance
Funds.


 


6.4.1         Deposits
of Insurance Funds. Borrower shall deposit with or on behalf of Lender on each Monthly Payment
Date, an amount equal to one-twelfth of the Insurance Premiums that Lender estimates will be payable for the renewal of the coverage afforded
by the Policies upon the expiration thereof, in order to accumulate sufficient funds to pay all such Insurance Premiums at least thirty
(30) days prior to the expiration of the Policies, which amounts shall be transferred into an Account established at Deposit Bank to hold
such funds (the “Insurance Account”). Amounts deposited from time to time into the Insurance Account pursuant
to this Section 6.4.1 are referred to herein as the “Insurance Funds”. If at any time Lender reasonably
determines that the Insurance Funds will not be sufficient to pay the Insurance Premiums, Lender shall notify Borrower of such determination
and the monthly deposits for Insurance Premiums shall be increased by the amount that Lender estimates is sufficient to make up the deficiency
at least thirty (30) days prior to expiration of the Policies.


 


6.4.2         Release
of Insurance Funds. Provided no Event of Default shall exist and remain uncured, Lender shall
direct Servicer to apply Insurance Funds in the Insurance Account to the timely payment of Insurance Premiums, provided Borrower shall
furnish Lender with all bills, invoices and statements for the Insurance Premiums for which such funds are required at least thirty (30)
days prior to the date on which such charges first become payable. In making any payment relating to Insurance Premiums, Lender may do
so according to any bill, statement or estimate procured from the insurer or its agent, without inquiry into the accuracy of such bill,
statement or estimate. If the amount of the Insurance Funds shall exceed the amounts due for Insurance Premiums and provided that no Trigger
Period exists, Lender shall, in its sole discretion, return any excess to Borrower or credit such excess against future payments to be
made to the Insurance Funds. Any Insurance Funds remaining in the Insurance Account after the Obligations have been paid in full shall
be returned to Borrower.


 






    69


     


    

 


6.4.3         Acceptable
Blanket Policy. Notwithstanding anything to the contrary contained in Section 6.4.1,
in the event that an Acceptable Blanket Policy is in effect with respect to the Policies required pursuant to Section 5.1,
deposits into the Insurance Account required for Insurance Premiums pursuant to Section 6.4.1 above shall be suspended to
the extent that Insurance Premiums relate to such Acceptable Blanket Policy.  As of the date hereof, an Acceptable Blanket Policy
is in effect with respect to the Policies required as of the Closing Date pursuant to Section 5.1.


 


Section 6.5         Capital
Expenditure Funds.


 


6.5.1         Deposits
of Capital Expenditure Funds. Borrower shall deposit with or on behalf of Lender on each
Monthly Payment Date, the amount of $2,237.32, for annual Capital Expenditures, which amounts shall be transferred into an Account (the
 “Capital Expenditure Account”). Amounts deposited from time to time into the Capital Expenditure Account pursuant
to this Section 6.5.1 are referred to herein as the “Capital Expenditure Funds”. Lender may reassess
its estimate of the amount necessary for Capital Expenditures from time to time and may require Borrower to increase the monthly deposits
required pursuant to this Section 6.5.1 upon thirty (30) days notice to Borrower if Lender determines in its reasonable discretion
that an increase is necessary to maintain proper operation of the Property.


 






    70


     


    

 


6.5.2         Release
of Capital Expenditure Funds. Provided no Event of Default is continuing, Lender shall direct
Servicer to disburse Capital Expenditure Funds to Borrower out of the Capital Expenditure Account, within ten (10) days after the
delivery by Borrower to Lender of a request therefor (but not more often than once per month), in increments of at least $10,000 (or a
lesser amount if the total amount in the Capital Expenditure Account is less than $10,000, in which case only one disbursement of the
amount remaining in the account shall be made) provided that: (i) such disbursement is for an Approved Capital Expenditure; (ii) the
request for disbursement is accompanied by (A) an Officer’s Certificate from Borrower (1) stating that the items to be
funded by the requested disbursement are Approved Capital Expenditures, and a description thereof, (2) stating that all Approved
Capital Expenditures to be funded by the requested disbursement have been completed (or completed to the extent of the requested disbursement)
in a good and workmanlike manner and in accordance with all applicable Legal Requirements, (3) identifying each Person that supplied
materials or labor in connection with the Approved Capital Expenditures to be funded by the requested disbursement, (4) stating that
each such Person has been paid in full not more than sixty (60) days prior to the disbursement request or will be paid in full upon such
disbursement, or if such payment is a progress payment, that such payment represents full payment to such Person, less any applicable
retention amount, for work completed through the date of the relevant invoice from such Person, (5) stating that the Approved Capital
Expenditures (or the relevant portions thereof) to be funded from the disbursement in question have not been the subject of a previous
disbursement from any Account or included in any previous disbursement of Operating Expenses or Capital Expenditures, (6) stating
that all previous disbursements of Capital Expenditure Funds have been used to pay the previously identified Approved Capital Expenditures,
and (7) stating that all outstanding trade payables (other than those to be paid from the requested disbursement or those constituting
Permitted Indebtedness) have been paid in full other than any applicable retention amount, (B) a copy of any license, permit or other
approval required by any Governmental Authority in connection with the Approved Capital Expenditures and not previously delivered to Lender,
(C) copies of appropriate lien waivers, conditional lien waivers, or other evidence of payment satisfactory to Lender, (D) at
Lender’s option, a title search for the Property indicating that the Property is free from all Liens, claims and other encumbrances
not previously approved by Lender, and (E) such other evidence as Lender shall reasonably request to demonstrate that the Approved
Capital Expenditures to be funded by the requested disbursement have been completed and are paid for or will be paid upon such disbursement
to Borrower (or the portion thereof as to which such request for disbursement has been submitted has been completed and is paid for (other
than any retention amount which is not a part of such disbursement request) or will be paid upon such disbursement to Borrower) and (iii) if
such disbursement request is for $20,000 or more, Lender shall have (if it desires) verified (by an inspection conducted at Borrower’s
expense) performance of the work associated with such Approved Capital Expenditure.


 


Section 6.6         Rollover
Funds.


 


6.6.1         Deposits
of Rollover Funds.


 


(a)         Borrower
shall deposit with or on behalf of Lender (i) $700,000.00 on the Closing Date (the “Upfront Rollover Deposit”)
and (ii) on each Monthly Payment Date the sum of $7,830.61 (the “Monthly Rollover Deposit”), for
tenant improvements and leasing commissions that may be incurred following the date hereof, which amounts shall be transferred into an
Account (the “Rollover Account”). Lender may from time to time reassess its estimate of the required monthly
amount necessary for tenant improvements and leasing commissions and, upon notice to Borrower, Borrower shall be required to deposit with
or on behalf of Lender each month such reassessed amount, which shall be transferred into the Rollover Account. Amounts deposited from
time to time into the Rollover Account pursuant to this Section 6.6.1 are referred to herein as the “Rollover
Funds”. Notwithstanding anything to the contrary in the foregoing, so long as the Debt Service Coverage Ratio shall equal
or exceed 1.50:1.00, funds on deposit in the Rollover Account, including the Upfront Rollover Deposit, shall not be required to exceed
$800,000.00 (the “Rollover Cap”). To the extent a Monthly Rollover Deposit would cause the Rollover Funds in
the Rollover Account to exceed the Rollover Cap, such Monthly Rollover Deposit shall be decreased by an amount equal to such excess. So
long as the Rollover Funds in the Rollover Account are equal to the Rollover Cap, Borrower shall not be required to make the Monthly Rollover
Deposit; provided, however, Borrower shall resume making Monthly Rollover Deposits to the extent that any release of Rollover Funds in
accordance with Section 6.6.2 below causes the Rollover Funds in the Rollover Account to fall below the Rollover Cap. For
the avoidance of doubt, Borrower shall be required to make Monthly Rollover Deposits as set forth in this Section 6.6.1(a) during
any period in which the Debt Service Coverage Ratio is below 1.50:1.00.


 






    71


     


    

 


(b)            In
addition to the required monthly deposits set forth in subsection (a) above, the following items shall be deposited into the Rollover
Account and held as Rollover Funds and shall be disbursed and released as set forth in Section 6.6.2 below, and Borrower shall
advise Lender at the time of receipt thereof of the nature of such receipt so that Lender shall have sufficient time to instruct the Deposit
Bank to deposit and hold such amounts in the Rollover Account pursuant to the Cash Management Agreement:


 


(i)          Other
than Lease Sweep Lease Termination Payments (which shall be deposited into the Lease Sweep Account in accordance with Section 6.
13.1 hereof), all sums paid with respect to (A) a modification of any Lease or otherwise paid in connection with Borrower taking
any action under any Lease (e.g., granting a consent) or waiving any provision thereof, (B) any settlement of claims of Borrower
against third parties in connection with any Lease, (C) any rejection, termination, surrender or cancellation of any Lease (including
in any bankruptcy case) or any lease buy-out or surrender payment from any Tenant (including any payment relating to unamortized tenant
improvements and/or leasing commissions and/or application of any security deposit) (collectively, “Lease Termination Payments”),
and (D) any sum received from any Tenant to obtain a consent to an assignment or sublet or otherwise, or any holdover rents or use
and occupancy fees from any Tenant or former Tenant (to the extent not being paid for use and occupancy or holdover rent); and


 


(ii)         Any
other extraordinary event pursuant to which Borrower receives payments or income (in whatever form) derived from or generated by the use,
ownership or operation of the Property not otherwise covered by this Agreement or the Cash Management Agreement.


 


6.6.2         Release
of Rollover Funds. Provided no Event of Default is continuing, Lender shall direct Servicer
to disburse Rollover Funds to Borrower out of the Rollover Account, within ten (10) days after the delivery by Borrower to Lender
of a request therefor (but not more often than once per month), in increments of at least $10,000 (or a lesser amount if the total amount
in the Rollover Account is less than $10,000, in which case only one disbursement of the amount remaining in the account shall be made)
provided that: (i) such disbursement is for an Approved Leasing Expense; (ii) the request for disbursement is accompanied by
(A) an Officer’s Certificate from Borrower (1) stating that the items to be funded by the requested disbursement are Approved
Leasing Expenses, and a description thereof, (2) stating that any tenant improvements at the Property to be funded by the requested
disbursement (or the relevant portion thereof as to which such request for funds relates) have been completed in a good and workmanlike
manner and in accordance with all applicable Legal Requirements, (3) identifying each Person that supplied materials or labor in
connection with the Approved Leasing Expenses to be funded by the requested disbursement, (4) stating that each such Person has been
paid in full not more than sixty (60) days prior to the disbursement request or will be paid in full upon such disbursement, or if such
payment is a progress payment, that such payment represents full payment to such Person, less any applicable retention amount, for work
completed through the date of the relevant invoice from such Person, (5) stating that the Approved Leasing Expenses (or the relevant
portions thereof) to be funded from the disbursement in question have not been the subject of a previous disbursement from any Account
or included in any previous disbursement of Operating Expenses or Capital Expenditures, (6) stating that all previous disbursements
of Rollover Funds have been used to pay the previously identified Approved Leasing Expenses, and (7) stating that all outstanding
trade payables (other than those to be paid from the requested disbursement or those constituting Permitted Indebtedness) have been paid
in full other than any applicable retention amount, (B) a copy of any license, permit or other approval by any Governmental Authority
required in connection with the tenant improvements and not previously delivered to Lender, (C) copies of appropriate lien waivers,
conditional lien waivers or other evidence of payment satisfactory to Lender, (D) at Lender’s option, a title search for the
Property indicating that the Property is free from all Liens, claims and other encumbrances not previously approved by Lender, (E) if
requested by Lender, with respect to disbursements from the Rollover Account for tenant improvement costs, a current Tenant estoppel certificate
in form and substance acceptable to Lender, and (F) such other evidence as Lender shall reasonably request to demonstrate that the
Approved Leasing Expenses to be funded by the requested disbursement have been completed and are paid for or will be paid upon such disbursement
to Borrower (or the portion thereof as to which such request for disbursement has been submitted has been completed and is paid for (other
than any retention amount which is not a part of such disbursement request) or will be paid upon such disbursement to Borrower).


 






    72


     


    

 


Section 6.7         Intentionally
Omitted.


 


Section 6.8         Intentionally
Omitted.


 


Section 6.9         Intentionally
Omitted.


 


Section 6.10       Intentionally
Omitted.


 


Section 6.11       Casualty
and Condemnation Account. Borrower shall pay, or cause to be paid, to Lender all
Insurance Proceeds or Awards due to any Casualty or Condemnation in accordance with the provisions of Sections 5.2 and 5.3,
which amounts shall be transferred into an Account (the “Casualty and Condemnation Account”). Amounts
deposited from time to time into the Casualty and Condemnation Account pursuant to this Section 6. 11 are referred to
herein as the “Casualty and Condemnation Funds”. All Casualty and Condemnation Funds shall be held,
disbursed and/or applied in accordance with the provisions of Section 5.4 hereof.


 


Section 6.12       Cash
Collateral Funds. If a Trigger Period shall be continuing (other than a Trigger Period continuing
solely because of the continuance of a Lease Sweep Period), all Available Cash shall be paid to Lender, which amounts shall be transferred
by Lender into an Account (the “Cash Collateral Account”) to be held by Lender as cash collateral for the Debt.
Amounts on deposit from time to time in the Cash Collateral Account pursuant to this Section 6.12 are referred to as the “Cash
Collateral Funds”. Any Cash Collateral Funds on deposit in the Cash Collateral Account not previously disbursed or applied
shall, upon the termination of such Trigger Period and so long as no other Trigger Period is then continuing, be disbursed to Borrower. 
Notwithstanding the foregoing, Lender shall have the right, but not the obligation, at any time during the continuance of an Event of
Default, in its sole and absolute discretion to apply any and all Cash Collateral Funds then on deposit in the Cash Collateral Account
to the Debt and the Other Obligations any other amounts owed by Borrower to any Person and/or any other Property-related costs and expenses
(including without limitation, operating expenses, capital expenditures, tenant improvements, tenant allowances and leasing commissions),
in such order and in such manner as Lender shall elect in its sole and absolute discretion, including to make a prepayment of principal
(together with the applicable Prepayment Fee and/or Liquidated Damages Amount, if any, applicable thereto) or any other amounts due hereunder.


 






    73


     


    

 


Section 6.13       Lease
Sweep Funds.


 


6.13.1      Deposits
of Lease Sweep Funds.


 


(a)         On
each Monthly Payment Date during a Lease Sweep Period, all Available Cash shall be paid to Lender, which amounts shall be transferred
by Lender into an Account (the “Lease Sweep Account”). Amounts deposited from time to time into the Lease Sweep
Account shall collectively be referred to herein as the “Lease Sweep Funds”.


 


(b)         In
addition to the deposits set forth in clause (a) above, all Lease Sweep Lease Termination Payments shall be deposited into the Lease
Sweep Account and held as Lease Sweep Funds and shall be disbursed and released as set forth in Section 6.13.2 below, and
Borrower shall advise Lender at the time of receipt thereof of the nature of such receipt so that Lender shall have sufficient time to
instruct the Deposit Bank to deposit and hold such amounts in the Lease Sweep Account pursuant to the Cash Management Agreement.


 


(c)         In
the event that Lease Sweep Funds are being swept (or are applicable to) more than one Lease Sweep Lease, such Lease Sweep Funds shall
be reasonably allocated by Lender as between or among such related Lease Sweep Space (provided that any Lease Sweep Lease Termination
Payments received with respect to a Lease Sweep Lease shall be allocated by Lender to such related Lease Sweep Space).


 


6.13.2      Release
of Lease Sweep Funds.


 


(a)         Provided
no Event of Default is continuing, Lender shall direct Servicer to disburse Lease Sweep Funds to Borrower out of the Lease Sweep Account,
within ten (10) days after the delivery by Borrower to Lender of a request therefor (but not more often than once per month), in
increments of at least $10,000 (or a lesser amount if the total amount in the Lease Sweep Account is less than $10,000, in which case
only one disbursement of the amount remaining in the account shall be made) provided that: (i) such disbursement is for Approved
Lease Sweep Space Leasing Expenses for the Lease Sweep Space applicable to such Lease Sweep Funds; (ii) the request for disbursement
is accompanied by (A) an Officer’s Certificate from Borrower (1) stating that the items to be funded by the requested
disbursement are Approved Lease Sweep Space Leasing Expenses, and a description thereof, (2) stating that any tenant improvements
at the Property to be funded by the requested disbursement (or the relevant portion thereof as to which such request for funds relates)
have been completed in a good and workmanlike manner and in accordance with all applicable Legal Requirements, (3) identifying each
Person that supplied materials or labor in connection with the Approved Lease Sweep Space Leasing Expenses to be funded by the requested
disbursement, (4) stating that each such Person has been paid in full not more than sixty (60) days prior to the disbursement request
or will be paid in full upon such disbursement, or if such payment is a progress payment, that such payment represents full payment to
such Person, less any applicable retention amount, for work completed through the date of the relevant invoice from such Person, (5) stating
that the Approved Lease Sweep Space Leasing Expenses (or the relevant portions thereof) to be funded from the disbursement in question
have not been the subject of a previous disbursement from any Account or included in any previous disbursement of Operating Expenses or
Capital Expenditures, (6) stating that all previous disbursements of Lease Sweep Funds have been used to pay the previously identified
Approved Lease Sweep Space Leasing Expenses, and (7) stating that all outstanding trade payables (other than those to be paid from
the requested disbursement or those constituting Permitted Indebtedness) have been paid in full other than any applicable retention amount,
(B) a copy of any license, permit or other approval by any Governmental Authority required in connection with the tenant improvements
and not previously delivered to Lender, (C) copies of appropriate lien waivers, conditional lien waivers or other evidence of payment
satisfactory to Lender, (D) at Lender’s option, a title search for the Property indicating that the Property is free from all
Liens, claims and other encumbrances not previously approved by Lender, (E) if requested by Lender, with respect to disbursements
from the Lease Sweep Account for tenant improvement costs, a current Tenant estoppel certificate in form and substance acceptable to Lender,
and (F) such other evidence as Lender shall reasonably request to demonstrate that the Approved Lease Sweep Space Leasing Expenses
to be funded by the requested disbursement have been completed and are paid for or will be paid upon such disbursement to Borrower (or
the portion thereof as to which such request for disbursement has been submitted has been completed and is paid for (other than any retention
amount which is not a part of such disbursement request) or will be paid upon such disbursement to Borrower).


 






    74


     


    

 


(b)            Provided
no Event of Default is continuing, funds on deposit in the Lease Sweep Account with respect to a Lease Sweep Space not previously disbursed
or applied shall be disbursed (x) provided no Trigger Period is continuing, to Borrower or (y) if a Trigger Period is continuing,
on the next occurring Monthly Payment Date in accordance with Section 6.16.1; in each case, as follows:


 


(i)         if
the Lease Sweep Period for such Lease Sweep Space ceased as described by clause (ii)(A) or (B) of the definition of “Lease
Sweep Period”, or, if the Lease Sweep Period for such Lease Sweep Space ceased as described in clause (E) of the definition
of “Lease Sweep Period” and was caused by such events described in clauses (i)(a), (b), or (c) of the definition of “Lease
Sweep Period”, any such remaining Lease Sweep Funds applicable to the Lease Sweep Space in question will be disbursed once all Occupancy
Conditions are satisfied with respect to such Lease Sweep Space, less (x) any Unpaid TILC Obligations Amount, as determined by Lender,
which amount will be retained in the Lease Sweep Account and will be periodically disbursed for Approved Lease Sweep Space Leasing Expenses
in accordance with Section 6.13.2(a) and/or (y) any Remaining Rent Abatement Amount, as determined by Lender, which
amount will be retained in the Lease Sweep Account and will be disbursed on each Monthly Payment Date in amounts sufficient to replicate
full contractual rents under each applicable Lease in accordance with a schedule to be delivered to, and reasonably approved by, Lender;
or


 


(ii)         if
the Lease Sweep Period for such Lease Sweep Space ceased as described by clause (ii)(C) or (D) of the definition of “Lease
Sweep Period”, or, if the Lease Sweep Period for such Lease Sweep Space ceased as described in clause (E) of the definition
of “Lease Sweep Period” and was caused by such events described in clauses (i)(d) or (e) of the definition of “Lease
Sweep Period”, all remaining Lease Sweep Funds applicable to the Lease Sweep Space in question will be disbursed once the applicable
conditions described in clause (ii)(C) or (D) of the definition of “Lease Sweep Period” have been met.


 






    75


     


    

 


Section 6.14         Intentionally
Omitted.


 


Section 6.15         Intentionally
Omitted.


 


Section 6.16         Property
Cash Flow Allocation.


 


6.16.1         Order
of Priority of Funds in Deposit Account. On each Monthly Payment Date during the continuance
of a Trigger Period, except during the continuance of an Event of Default, all funds deposited into the Deposit Account during the immediately
preceding Interest Period shall be applied on such Monthly Payment Date in the following order of priority:


 


(i)          First,
to the Tax Account, to make the required payments of Tax Funds as required under Section 6.3;


 


(ii)         Second,
to the Insurance Account, to make any required payments of Insurance Funds as required under Section 6.4;


 


(iii)        Third,
to Lender, funds sufficient to pay the Monthly Interest Payment Amount or Monthly Debt Service Payment Amount (as applicable), applied
first to the payment of interest computed at the Interest Rate with the remainder (from and after the Amortization Commencement Date)
applied to the reduction of the Outstanding Principal Balance;


 


(iv)       Fourth,
to the Capital Expenditure Account, to make the required payments of Capital Expenditure Funds as required under Section 6.5;


 


(v)         Fifth,
to the Rollover Account, to make the required payments of Rollover Funds as required under Section 6.6; and


 


(vi)       Sixth,
to Lender, of any other amounts then due and payable under the Loan Documents;


 


(vii)      Seventh,
to Borrower, funds in an amount equal to (I) the lesser of (A) Monthly Operating Expense Budgeted Amount and (B) Actual
OpEx for the applicable month minus (II) any OpEx Overpayment Amount received by Borrower that has not been previously deducted pursuant
to this clause (vii)(II);


 


(viii)     Eighth,
to Borrower, payments for Approved Extraordinary Operating Expenses, if any;


 


(ix)         Ninth,
if a New Mezzanine Loan (or any portion thereof) is outstanding and a Trigger Period is continuing, to make payments in the amount of
the monthly debt service payment payable under the terms of the New Mezzanine Loan, to the lender under the New Mezzanine Loan; and


 






    76


     


    

 


(x)             Lastly,
all amounts remaining after payment of the amounts set forth in clauses (i) through (ix) above (the “Available
Cash”):


 


(A)        during
a Trigger Period continuing due to a Lease Sweep Period (regardless of whether any other Trigger Period is continuing), to the Lease Sweep
Account to be held and disbursed in accordance with Section 6.13; or


 


(B)         provided
no Lease Sweep Period is continuing, to the Cash Collateral Account to be held or disbursed in accordance with Section 6.12.


 


6.16.2       Failure
to Make Payments. The failure of Borrower to make all of the payments (whether to Lender
to any other applicable payee) required under clauses (i) through (vii) of Section 6.16.1 in full on each
Monthly Payment Date shall constitute an Event of Default under this Agreement; provided, however, if adequate funds are available in
the Deposit Account (as opposed to subaccounts thereof) for such payments, and Borrower is not otherwise in Default hereunder, the failure
by the Deposit Bank to allocate such funds into the appropriate Accounts shall not constitute an Event of Default.


 


6.16.3       Application
After Event of Default. Notwithstanding anything to the contrary contained in this Article 6,
upon the occurrence and during the continuance of an Event of Default, Lender, at its option, may withdraw the Reserve Funds and any other
funds of Borrower then in the possession of Lender, Servicer or Deposit Bank (including any Gross Revenue and Reserve Funds on deposit
in any Cash Management Account) and apply such funds to the payment of the items for which the Reserve Funds were established, or to the
payment of the Debt and the Other Obligations, any other amounts owed by Borrower to any Person and/or any other Property-related costs
and expenses (including without limitation, operating expenses, capital expenditures, tenant improvements, tenant allowances and leasing
commissions), in such order, proportion and priority as Lender may determine in its sole and absolute discretion.  Lender’s
right to withdraw and apply any of the foregoing funds shall be in addition to all other rights and remedies provided to Lender under
the Loan Documents.


 


Section 6.17       Security
Interest in Reserve Funds. As security for payment of the Debt and the performance by Borrower
of all other terms, conditions and provisions of the Loan Documents, Borrower hereby pledges and assigns to Lender, and grants to Lender
a security interest in, all Borrower’s right, title and interest in and to all Gross Revenue and in and to all payments to or monies
held in the Clearing Account, the Deposit Account and Accounts created pursuant to this Agreement (collectively, the “Cash
Management Accounts”). Borrower hereby grants to Lender a continuing security interest in, and agrees to hold in trust for
the benefit of Lender, all Gross Revenue in its possession prior to the (i) payment of such Gross Revenue to Lender or (ii) deposit
of such Gross Revenue into the Deposit Account. Borrower shall not, without obtaining the prior written consent of Lender, further pledge,
assign or grant any security interest in any Cash Management Account, or permit any Lien to attach thereto, or any levy to be made thereon,
or any UCC Financing Statements, except those naming Lender as the secured party, to be filed with respect thereto. This Agreement is,
among other things, intended by the parties to be a security agreement for purposes of the UCC. Upon the occurrence and during the continuance
of an Event of Default, Lender may apply any sums in any Cash Management Account to the Debt and the Other Obligations, any other amounts
owed by Borrower to any Person and/or any other Property-related costs and expenses (including without limitation, operating expenses,
capital expenditures, tenant improvements, tenant allowances and leasing commissions) in any order and in any manner as Lender shall elect
in Lender’s discretion without seeking the appointment of a receiver and without adversely affecting the rights of Lender to foreclose
the Lien of the Mortgage or exercise its other rights under the Loan Documents. Cash Management Accounts shall not constitute trust funds
and may be commingled with other monies held by Lender. All interest which accrues on the funds in any Account shall accrue for the benefit
of Lender and shall be taxable to Borrower. Upon repayment in full of the Debt, all remaining funds in the Accounts, if any, shall be
promptly disbursed to Borrower.


 






    77


     


    

 


Article 7


 


PERMITTED
TRANSFERS


 


Section 7.1          Permitted
Transfer of the Entire Property.


 


(a)           Notwithstanding
the provisions of Section 4.2, Borrower shall have, following a Securitization of the Loan, the right to convey the entire
Property to a new borrower (the “Transferee Borrower”) and have Transferee Borrower assume all of Borrower’s
obligations under the Loan Documents, and have replacement guarantors and indemnitors replace the guarantors and indemnitors with respect
to all of the obligations of the indemnitors and guarantors of the Loan Documents from and after the date of such transfer (collectively,
a “Transfer and Assumption”), subject to the terms and full satisfaction of all of the conditions precedent
set forth in Section 7.1(b).


 


(b)           Transfer
and Assumption shall be subject to the following conditions:


 


(i)          Borrower
has provided Lender with not less than sixty (60) days prior written notice (it being understood that the consummation of the Transfer
and Assumption is subject to Lender’s approval of all of the conditions set forth in this Section 7.1(b)), which notice
shall contain sufficient detail to enable Lender to determine that the Transferee Borrower complies with the requirements set forth herein;


 


(ii)         no
Event of Default has occurred and is continuing;


 


(iii)        Transferee
Borrower shall be a newly formed Delaware single member limited liability company that is a Special Purpose Bankruptcy Remote Entity in
accordance with Section 4.4 and Schedule V;


 


(iv)        Transferee
Borrower shall be Controlled by a Person who (x) is a Qualified Transferee with a minimum ownership interest in the Transferee Borrower
reasonably acceptable to Lender and (y) whose identity, experience, financial condition and creditworthiness, including net worth
and liquidity, is acceptable to Lender in Lender’s sole and absolute discretion;


 


(v)         the
Property shall be managed by an Unaffiliated Qualified Manager or by a property manager reasonably acceptable to Lender;


 


(vi)        Transferee
Borrower shall have executed and delivered to Lender an assumption agreement in form and substance acceptable to Lender;


 


(vii)       Transferee
Borrower shall have proposed one or more replacement guarantors and indemnitor and Lender shall have determined that such proposed guarantors
and indemnitors are Approved Replacement Guarantor(s) (and each such proposed replacement guarantor that is an Approved Replacement
Guarantor shall hereafter be referred to as a “Transferee Guarantor”);


 






    78


     


    

 


(viii)     each
Transferee Guarantor shall deliver to Lender a guaranty of recourse obligations (in the same form as the guaranty of recourse obligations
delivered to Lender by Guarantor on the date hereof) and an environmental indemnity agreement (in the same form as the environmental indemnity
agreement delivered to Lender by Guarantor on the date hereof), pursuant to which, in each case, the Transferee Guarantor(s) agree(s) to
be liable under each such guaranty of recourse obligations and environmental indemnity agreement from and after the date of such Transfer
and Assumption (whereupon the previous guarantor shall be released from any further liability under the guaranty of recourse obligations
for acts that arise from and after the date of such Transfer and Assumption and such Transferee Guarantor(s) shall be the “Guarantor”
for all purposes set forth in this Agreement);


 


(ix)        Transferee
Borrower shall submit to Lender true, correct and complete copies of all documents reasonably requested by Lender concerning the organization
and existence of Transferee Borrower and each Transferee Guarantor;


 


(x)         Each
Person that will have Control of, or a ten percent (10%) or greater direct or indirect interest in, Transferee Borrower or any Person
that Controls Transferee Borrower upon such Transfer and Assumption shall be a Qualified Transferee;


 


(xi)        Lender
shall have received a Rating Agency Confirmation from each of the applicable Rating Agencies;


 


(xii)       counsel
to Transferee Borrower and each Transferee Guarantor(s) shall deliver to Lender opinions in form and substance reasonably satisfactory
to Lender as to such matters as Lender shall require, which may include opinions as to substantially the same matters and were required
in connection with the origination of the Loan;


 


(xiii)     Borrower
shall cause to be delivered to Lender, an endorsement (relating to the change in the identity of the vestee and execution and delivery
of the Transfer and Assumption documents) to the Title Insurance Policy in form and substance acceptable to Lender, in Lender’s
reasonable discretion;


 


(xiv)     Transferee
Borrower and/or Borrower, as the case may be, shall deliver to Lender, upon such conveyance, a transfer fee equal to 1.00% of the Outstanding
Principal Balance;


 


(xv)      if
a New Mezzanine Loan is outstanding at the time of the Transfer and Assumption, the proposed Transfer and Assumption shall not constitute
or cause a default under the New Mezzanine Loan;


 


(xvi)     Borrower
shall pay all of Lender’s reasonable out-of-pocket costs and expenses in connection with the Transfer and Assumption. Lender may,
as a condition to evaluating any requested consent to a transfer, require that Borrower post a cash deposit with Lender in an amount equal
to Lender’s anticipated costs and expenses in evaluating any such request for consent; and


 


(xvii)     Borrower
shall have otherwise received Lender’s written consent to such Transfer and Assumption (which consent shall not be unreasonably
withheld so long as all of the other conditions set forth in this Section 7.1(b) are satisfied, including receipt of
a Rating Agency Confirmation from each of the applicable Rating Agencies).


 






    79


     


    




 


Section 7.2            Permitted
Transfers. Notwithstanding anything to the contrary contained in Section 4.2,
the following Transfers (herein, the “Permitted Transfers”) shall be permitted hereunder:


 


(a)            a
Lease entered into in accordance with the Loan Documents;


 


(b)            a
Transfer and Assumption in accordance with Section 7.1;


 


(c)            a
Permitted Encumbrance;


 


(d)            the
transfer of publicly traded shares listed on the NYSE or NASDAQ in any indirect equity owner of Borrower;


 


(e)            provided
no Event of Default shall then exist, a Transfer (other than a pledge, hypothecation, assignment or other encumbrance, or any creation
or issuance of Debt-Like Preferred Equity) of any direct or indirect interest in Borrower related to or in connection with the estate
planning of such transferor to (1) an immediate family member of such interest holder (or to partnerships or limited liability companies
Controlled solely by one or more of such family members) or (2) a trust established for the benefit of such immediate family member,
provided that:


 






    80


     


    

 



 


(i)               Borrower
shall provide to Lender thirty (30) days prior written notice thereof;


 


(ii)              such
Transfer shall not otherwise result in a change of Control of Borrower or change of the day to day management and operations of the Property;


 


(iii)             Borrower
shall continue to be a Special Purpose Bankruptcy Remote Entity and shall continue to be a Delaware single member limited liability company;


 


(iv)             if
such Transfer would cause the transferee, together with its Affiliates, to acquire or to increase its direct or indirect interest in Borrower
or any Person that Controls Borrower to an amount which equals or exceeds ten percent (10%), such transferee shall be a Qualified Transferee;


 


(v)              the
Property shall continue to be managed by a Qualified Manager or by a property manager reasonably acceptable to Lender and acceptable to
the applicable Rating Agencies;


 


(f)             a
Transfer (other than a pledge, hypothecation, assignment or other encumbrance, or any creation or issuance of Debt-Like Preferred Equity)
of any direct or indirect interest in Borrower that occurs by devise or bequest or by operation of law upon the death of a natural person
that was the holder of such interest, provided that:


 


(i)               Borrower
shall give Lender notice of such Transfer together with copies of all instruments effecting such Transfer not less than thirty (30) days
after the date of such Transfer;


 


(ii)              Borrower
shall continue to be a Special Purpose Bankruptcy Remote Entity and shall continue to be a Delaware single member limited liability company;


 


(iii)             the
Property shall continue to be managed by a Qualified Manager or by a property manager reasonably acceptable to Lender and acceptable to
the applicable Rating Agencies;


 


(iv)             if
such Transfer would cause the transferee, together with its Affiliates, to Control Borrower or to acquire or to increase its direct or
indirect interest in Borrower or any Person that Controls Borrower to an amount which equals or exceeds ten percent (10%), such transferee
shall be a Qualified Transferee;


 


(v)              if
such Transfer results in a change of Control of Borrower to a Person other than (A) a Key Principal (directly or indirectly) or (B) the
estate of any Key Principal (during the pendency of the settlement by the estate of any Key Principal and if such Transfer occurs as a
result of the death of any Key Principal); (x)  such Transfer is approved by Lender in writing within 30 days after any such Transfer,
which approval shall not be unreasonably withheld and (y) from and after a Securitization, then Borrower shall deliver a Rating Agency
Confirmation from each applicable Rating Agency within sixty (60) days after any such Transfer (or such longer time as may reasonably
be necessary for Borrower to obtain the Rating Agency Confirmations, provided Borrower is diligently pursuing same); and/or


 


(g)            provided
that no Event of Default shall then exist, a Transfer (other than a pledge, hypothecation, assignment or other encumbrance, or any creation
or issuance of Debt-Like Preferred Equity) of a direct or indirect interest in Borrower shall be permitted without Lender’s consent
provided that:


 


(i)               such
Transfer shall not (x) cause the transferee (other than Key Principal), together with its Affiliates, to acquire or to increase its
direct or indirect interest in Borrower to an amount which equals or exceeds forty-nine percent (49%) or (y) result in a change in
Control of Borrower;


 


(ii)              Borrower
shall continue to be a Special Purpose Bankruptcy Remote Entity and shall continue to be a Delaware single member limited liability company;


 


(iii)             if
such Transfer would cause the transferee, together with its Affiliates, to acquire or to increase its direct or indirect interest in Borrower
or any Person that Controls Borrower to an amount which equals or exceeds ten percent (10%), (x) such transferee is a Qualified Transferee
and (y) Borrower shall provide to Lender thirty (30) days prior written notice thereof;


 






    81


     


    

 


(iv)             after
giving effect to such Transfer, (x) Key Principal shall continue to control the day to day operations of Borrower and shall continue
to own at least one percent (1%) of all equity interests (direct or indirect) of Borrower and (y) Guarantor shall continue to own
at least fifty one percent (51%) of all equity interests (direct or indirect) of Borrower; and


 


(v)              the
Property shall continue to be managed by a Qualified Manager or by a property manager reasonably acceptable to Lender and acceptable to
the applicable Rating Agencies.


 


For purposes of clause (e) above, “immediate
family member” shall mean a sibling, family trust, parent, spouse, child (or step-child), grandchild or other lineal descendant
of the interest holder.


 


Notwithstanding anything to the contrary contained
in this Section 7.2, if, as a result of any Transfer, Guarantor no longer Controls Borrower and owns any direct or indirect
interest in Borrower (or if there were two or more Guarantors immediately prior to such Transfer, no Guarantor any longer Controls Borrower
or any such Guarantor no longer has a direct or indirect interest in Borrower), it shall also be a condition for such Transfer to be a
Permitted Transfer that one or more Approved Replacement Guarantors shall execute and deliver a guaranty of recourse obligations (in the
same form as the guaranty of recourse obligations delivered to Lender by Guarantor on the date hereof) and an environmental indemnity
agreement (in the same form as the environmental indemnity agreement delivered to Lender by Guarantor on the date hereof) on or prior
to the date of such Transfer (or, in the case of a Transfer described in clause (f), within thirty (30) days after the date of such Transfer),
pursuant to which, in each case, the Approved Replacement Guarantor(s) agree(s) to be liable under each such guaranty of recourse
obligations and environmental indemnity agreement from and after the date of such Transfer (whereupon the previous guarantor shall be
released from any further liability under the guaranty of recourse obligations from acts that arise from and after the date of such Transfer
other than the acts or actions of the released Guarantor or any Affiliate thereof (or any Person acting on behalf thereof) and such Approved
Replacement Guarantor(s) shall be the “Guarantor” for all purposes set forth in this Agreement); provided, however, that
the previous guarantors shall have the burden of proof with respect to any events or acts that such guarantors allege to have occurred
after the date of any such release in accordance with the terms hereof and the replacement guarantors shall have the burden of proof with
respect to any events or acts that such replacement guarantors allege to have occurred prior to the date such guarantors became replacement
guarantors hereunder.


 


Section 7.3             Cost
and Expenses; Searches; Copies.


 


(a)            Borrower
shall pay all costs and expenses of Lender in connection with any Transfer, whether or not such Transfer is deemed to be a Permitted Transfer,
including, without limitation, all fees and expenses of Lender’s counsel, whether internal or outside, and the cost of any required
counsel opinions related to REMIC or other securitization or tax issues and any Rating Agency fees.


 


(b)            Borrower
shall provide Lender with copies of all organizational documents relating to any Permitted Transfer.


 






    82


     


    

 


(c)            In
connection with any Permitted Transfer, to the extent a transferee, together with its Affiliates, shall Control Borrower or own ten percent
(10%) or more of the direct or indirect ownership interests in Borrower or in any Person that Controls Borrower immediately following
such transfer (provided that, as of the Closing Date, such transferee did not Control Borrower or, together with its Affiliates, own ten
percent (10%) or greater of the direct or indirect ownership interests in Borrower or any Person that Controls Borrower), Borrower shall
deliver (and Borrower shall be responsible for any reasonable out of pocket costs and expenses in connection therewith) the information
necessary for Lender to obtain Satisfactory Search Results with respect to such transferee.


 


Article 8


 


DEFAULTS


 


Section 8.1             Events
of Default. Each of the following events shall constitute an event of default hereunder (an
 “Event of Default”):


 


(i)               if
(A) the Obligations are not paid in full on the Maturity Date, (B) any regularly scheduled monthly payment of interest, and,
if applicable, principal due under the Note is not paid in full on the applicable Monthly Payment Date, (C) any prepayment of principal
due under this Agreement or the Note is not paid when due, (D) the Prepayment Fee is not paid when due, (E) the Liquidated Damages
Amount is not paid when due, or (F) any deposit to the Reserve Funds is not made on the required deposit date therefor;


 


(ii)              if
any other amount payable pursuant to this Agreement, the Note or any other Loan Document (other than as set forth in the foregoing clause
(i)) is not paid in full when due and payable in accordance with the provisions of the applicable Loan Document, with such failure
continuing for ten (10) Business Days after Lender delivers written notice thereof to Borrower;


 


(iii)             if
any of the Taxes or Other Charges are not paid when due (provided that it shall not be an Event of Default if such past due Taxes are
Real Estate Taxes and there are sufficient funds in the Tax Account to pay such amounts when due, no other Event of Default is then continuing
and Servicer fails to make such payment in violation of this Agreement);


 


(iv)             if
the Policies are not (A) delivered to Lender within five (5) days of Lender’s written request and (B) kept in full
force and effect, each in accordance with the terms and conditions hereof;


 


(v)              a
Transfer other than a Permitted Transfer occurs;


 


(vi)             if
any certification, representation or warranty made by Borrower or Guarantor herein or in any other Loan Document, or in any report, certificate,
financial statement or other instrument, agreement or document furnished to Lender shall have been false or misleading in any material
respect as of the date such representation or warranty was made;


 


(vii)            if
Borrower or Guarantor shall make an assignment for the benefit of creditors;


 






    83


     


    

 


(viii)           if
a receiver, liquidator or trustee shall be appointed for Borrower or Guarantor or if Borrower or Guarantor shall be adjudicated a bankrupt
or insolvent, or if any petition for bankruptcy, reorganization or arrangement pursuant to federal bankruptcy law, or any similar federal
or state law, shall be filed by or against, consented to, or acquiesced in by, Borrower or Guarantor, or if any proceeding for the dissolution
or liquidation of Borrower or Guarantor shall be instituted, or if Borrower is substantively consolidated with any other Person; provided,
however, if such appointment, adjudication, petition, proceeding or consolidation was involuntary and not consented to by Borrower or
Guarantor, upon the same not being discharged, stayed or dismissed within thirty (30) days following its filing;


 


(ix)              if
Borrower attempts to assign its rights under this Agreement or any of the other Loan Documents or any interest herein or therein in contravention
of the Loan Documents;


 


(x)               intentionally
omitted;


 


(xi)              a
breach of the covenants set forth in Sections 4.4, 4.23 or 4.31 hereof;


 


(xii)             if
Borrower shall be in default under any mortgage or security agreement covering any part of the Property whether it be superior, pari
passu or junior in Lien to the Mortgage;


 


(xiii)            subject
to Borrower’s right to contest set forth in Section 4.3 of this Agreement, if the Property becomes subject to any mechanic’s,
materialman’s or other Lien except a Permitted Encumbrance or a Lien for Taxes not then due and payable;


 


(xiv)            the
alteration, improvement, demolition or removal of any of the Improvements without the prior consent of Lender, other than in accordance
with this Agreement and the Leases at the Property entered into in accordance with the Loan Documents;


 


(xv)             if,
without Lender’s prior written consent, (i) the Management Agreement is terminated, (ii) if Manager is an Affiliate of
Borrower or any Guarantor, the ownership, management or control of Manager is transferred, (iii) there is a material change in the
Management Agreement, or (iv) if there shall be a material default by Borrower under the Management Agreement beyond any applicable
notice or grace period;


 


(xvi)            if
Borrower or any Person owning a direct or indirect ownership interest in Borrower shall be convicted of a Patriot Act Offense by a court
of competent jurisdiction;


 


(xvii)           a
breach of any representation, warranty or covenant contained Section 3.1.18 hereof;


 


(xviii)          if
Borrower breaches any covenant contained Section 4.9 hereof;


 


(xix)             intentionally
omitted;


 






    84


     


    

 


(xx)             intentionally
omitted;


 


(xxi)            intentionally
omitted;


 


(xxii)           if
there shall be a default under any of the other Loan Documents beyond any applicable cure periods contained in such Loan Documents, whether
as to Borrower, Guarantor or the Property, or if any other such event shall occur or condition shall exist, if the effect of such event
or condition is to accelerate the maturity of any portion of the Obligations or to permit Lender to accelerate the maturity of all or
any portion of the Obligations;


 


(xxiii)          Guarantor
breaches any of the Guarantor Financial Covenants;


 


(xxiv)          if
Borrower fails (A) to establish a Clearing Account pursuant to a Clearing Account Agreement as, when and to the extent required by
Section 6.1 hereof upon the first occurrence of a Lockbox Trigger Event or (B) to establish a new Clearing Account and enter
into a new clearing account agreement in accordance with Section 6.1 hereof on or prior to the termination of any existing
Clearing Account Agreement; or


 


(xxv)           if
any of the terms, covenants or conditions of any Lease Sweep Lease shall in any manner be modified, changed, supplemented, altered or
amended or if any Lease Sweep Lease shall be terminated or surrendered, in any case without the consent of Lender except as otherwise
permitted by this Agreement; or


 


(xxvi)          if
Borrower or Guarantor(s) shall continue to be in Default under any of the other terms, covenants or conditions of this Agreement
or any other Loan Document not specified in subsections (i) to (xxv) above, and such Default shall continue for ten (10) days
after notice to Borrower from Lender, in the case of any such Default which can be cured by the payment of a sum of money, or for thirty
(30) days after notice to Borrower from Lender in the case of any other such Default; provided, however, that if such non-monetary Default
is susceptible of cure but cannot reasonably be cured within such 30-day period, and provided further that Borrower and/or Guarantor shall
have commenced to cure such Default within such 30-day period shall and thereafter diligently and expeditiously proceed to cure the same,
such 30-day period shall be extended for such time as is reasonably necessary for Borrower and/or Guarantor in the exercise of due diligence
to cure such Default, such additional period not to exceed sixty (60) days.


 


Section 8.2             Remedies.


 


8.2.1        Acceleration.
Upon the occurrence of an Event of Default (other than an Event of Default described in clauses (vii), (viii) or (ix) of
Section 8.1 above) and at any time thereafter, Lender may, in addition to any other rights or remedies available to it pursuant
to this Agreement and the other Loan Documents or at law or in equity, take such action, without notice or demand (and Borrower hereby
expressly waives any such notice or demand), that Lender deems advisable to protect and enforce its rights against Borrower and in and
to the Property, including declaring the Obligations to be immediately due and payable, and Lender may enforce or avail itself of any
or all rights or remedies provided in the Loan Documents against Borrower and the Property, including all rights or remedies available
at law or in equity; and upon any Event of Default described in clauses (vii), (viii) or (ix) of Section 8.1
above, the Obligations of Borrower hereunder and under the other Loan Documents shall immediately and automatically become due and payable
in full, without notice or demand, and Borrower hereby expressly waives any such notice or demand, anything contained herein or in any
other Loan Document to the contrary notwithstanding.


 






    85


     


    

 


8.2.2        Remedies
Cumulative. During the continuance of an Event of Default, all or any one or more of the
rights, powers, privileges and other remedies available to Lender against Borrower under this Agreement or any of the other Loan Documents
executed and delivered by, or applicable to, Borrower or at law or in equity may be exercised by Lender at any time and from time to time,
whether or not all or any of the Obligations shall be declared due and payable, and whether or not Lender shall have commenced any foreclosure
proceeding or other action for the enforcement of its rights and remedies under any of the Loan Documents with respect to the Property.
The rights, powers and remedies of Lender under this Agreement shall be cumulative and not exclusive of any other right, power or remedy
which Lender may have against Borrower pursuant to this Agreement or the other Loan Documents, or existing at law or in equity or otherwise.
Lender’s rights, powers and remedies may be pursued independently, singly, successively, together or otherwise, at such time and
in such order as Lender may determine in its sole discretion, to the fullest extent permitted by law, without impairing or otherwise affecting
the other rights and remedies of Lender permitted by law or contract or as set forth herein or in the other Loan Documents or by equity.
Without limiting the generality of the foregoing, if an Event of Default is continuing (i) Lender shall not be subject to any “one
action” or “election of remedies” law or rule, and (ii) all Liens and other rights, remedies or privileges provided
to Lender shall remain in full force and effect until Lender has exhausted all of its remedies against the Property and the Mortgage has
been foreclosed, sold and/or otherwise realized upon in satisfaction of the Obligations or the Obligations have been paid in full. No
delay or omission to exercise any remedy, right or power accruing upon an Event of Default shall impair any such remedy, right or power
or shall be construed as a waiver thereof, but any such remedy, right or power may be exercised from time to time and as often as may
be deemed expedient. A waiver of one Default or Event of Default with respect to Borrower shall not be construed to be a waiver of any
subsequent Default or Event of Default by Borrower or to impair any remedy, right or power consequent thereon.


 


8.2.3        Severance.


 


(a)             During
the continuance of an Event of Default, Lender shall have the right from time to time to partially foreclose the Mortgage in any manner
and for any amounts secured by the Mortgage then due and payable as determined by Lender in its sole discretion, including the following
circumstances: (i) in the event Borrower defaults beyond any applicable grace period in the payment of one or more scheduled payments
of principal and interest, Lender may foreclose the Mortgage to recover such delinquent payments, or (ii) in the event Lender elects
to accelerate less than the entire Outstanding Principal Balance, Lender may foreclose the Mortgage to recover so much of the principal
balance of the Loan as Lender may accelerate and such other sums secured by the Mortgage as Lender may elect. Notwithstanding one or more
partial foreclosures, the Property shall remain subject to the Mortgage to secure payment of the sums secured by the Mortgage and not
previously recovered.


 






    86


     


    

 


(b)             During
the continuance of an Event of Default, Lender shall have the right from time to time to sever the Note and the other Loan Documents into
one or more separate notes, mortgages and other security documents in such denominations as Lender shall determine in its sole discretion.
Borrower shall execute and deliver to Lender from time to time, promptly after the request of Lender, a severance agreement and such other
documents as Lender shall request in order to effect the severance described in the preceding sentence, all in form and substance reasonably
satisfactory to Lender. Borrower hereby absolutely and irrevocably appoints Lender as its true and lawful attorney, coupled with an interest,
in its name and stead to make and execute all documents necessary or desirable to effect the aforesaid severance, Borrower ratifying all
that its said attorney shall do by virtue thereof; provided, however, Lender shall not make or execute any such documents under such power
until three (3) days after notice has been given to Borrower by Lender of Lender’s intent to exercise its rights under such
power.


 


(c)             During
the continuance of an Event of Default, any amounts recovered from the Property or any other collateral for the Loan after an Event of
Default may be applied by Lender toward the payment of any interest and/or principal of the Loan and/or any other amounts due under the
Loan Documents, in such order, priority and proportions as Lender in its sole discretion shall determine.


 


8.2.4        Lender’s
Right to Perform. During the continuance of an Event of Default Lender may, but shall have
no obligation to do so and without notice to or demand on Borrower and without releasing Borrower from any covenant or obligation hereunder
or under any of the Loan Documents or being deemed to have cured any Default or Event of Default hereunder, and without in any way limiting
Lender’s right to exercise any of its rights, powers or remedies as provided hereunder, or under any of the other Loan Documents,
perform, or cause the performance of, any covenant or obligation of Borrower hereunder in such manner and to such extent as Lender determines
in its sole discretion in each instance, and all costs, expenses, liabilities, penalties and fines of Lender incurred or paid in connection
therewith shall be immediately due and payable by Borrower and shall be added to the Obligations (and to the extent permitted under applicable
laws, secured by the Mortgage and the other Loan Documents) and in each case shall bear interest at the Default Rate for the period after
the date incurred by or on behalf of Lender until the date of payment by Borrower to Lender.


 


Article 9


 


SALE
AND SECURITIZATION OF MORTGAGE


 


Section 9.1             Sale
of Mortgage and Securitization.


 


(a)             Lender
shall have the right (i) to sell or otherwise transfer the Loan or any portion thereof as a whole loan, (ii) to sell participation
interests in the Loan, or (iii) to securitize the Loan or any portion thereof in a single asset securitization or in one or more
pooled loan securitizations. (The transactions referred to in clauses (i), (ii) and (iii) are each hereinafter referred
to as a “Secondary Market Transaction” and the transactions referred to in clause (iii) shall hereinafter
be referred to as a “Securitization”. Any certificates, notes or other securities issued in connection with
a Secondary Market Transaction are hereinafter referred to as “Securities”). At Lender’s election, each
note and/or component comprising the Loan may be subject to one or more Secondary Market Transactions.


 






    87


     


    

 


(b)             If
requested by Lender, Borrower shall assist Lender in satisfying the market standards to which Lender customarily adheres or which may
be required in the marketplace, by prospective investors, the Rating Agencies, applicable Legal Requirements and/or otherwise in the marketplace
in connection with any Secondary Market Transactions, including to:


 


(i)               (A) provide
updated financial and other information with respect to the Property, the business operated at the Property, Borrower, Guarantor(s) and
the Manager, including, without limitation, the information set forth on Exhibit B attached hereto, (B) provide
updated budgets and rent rolls (including itemized percentage of floor area occupied and percentage of aggregate base rent for each Tenant)
relating to the Property, and (C) provide updated appraisals, market studies, environmental reviews and reports (Phase I’s
and, if appropriate, Phase II’s), property condition reports and other due diligence investigations of the Property (the “Updated
Information”), together, if customary, with appropriate verification of the Updated Information through letters of auditors
or opinions of counsel acceptable to Lender and the Rating Agencies;


 


(ii)              provide
opinions of counsel, which may be relied upon by Lender, trustee in any Securitization, underwriters, NRSROs and their respective counsel,
agents and representatives, as to non-consolidation, fraudulent conveyance and true sale or any other opinion customary in Secondary Market
Transactions or required by the Rating Agencies with respect to the Property, the Loan Documents, and Borrower and its Affiliates, which
counsel and opinions shall be satisfactory to Lender and the Rating Agencies;


 


(iii)             provide
updated, as of the closing date of any Secondary Market Transaction, representations and warranties made in the Loan Documents and such
additional representations and warranties as the Rating Agencies may require; and


 


(iv)             (A) review
any Disclosure Document or any interim draft thereof furnished by Lender to Borrower with respect to information contained therein that
was furnished to Lender by or on behalf of Borrower in connection with the preparation of such Disclosure Document or in connection with
the underwriting or closing of the Loan, including financial statements of Borrower and Guarantor, operating statements and rent rolls
with respect to the Property, and (B) within three (3) Business Days following Borrower’s receipt thereof, provide to
Lender in writing any revisions to such Disclosure Document or interim draft thereof necessary or advisable to insure that such reviewed
information does not contain any untrue statement of a material fact or omit to state any material fact necessary to make statements contained
therein not misleading.


 


(c)            If,
at the time a Disclosure Document is being prepared for a Securitization, Lender expects that Borrower alone or Borrower and one or more
Affiliates of Borrower (including any guarantor or other Person that is directly or indirectly committed by contract or otherwise to make
payments on all or a part of the Loan) collectively, or the Property alone or the Property and Related Properties collectively, will be
a Significant Obligor, Borrower shall furnish to Lender upon request the following financial information:


 


(i)               if
Lender expects that the principal amount of the Loan together with any Related Loans, as of the cut-off date for such Securitization,
may equal or exceed ten percent (10%) (but less than twenty percent (20%)) of the aggregate principal amount of all mortgage loans included
or expected to be included in the Securitization, net operating income for the Property and the Related Properties for the most recent
Fiscal Year and interim period as required under Item 1112(b)(1) of Regulation AB (or, if the Loan is not treated as a non-recourse
loan under Instruction 3 for Item 1101(k) of Regulation AB, selected financial data meeting the requirements and covering the time
periods specified in Item 301 of Regulation S-K and Item 1112(b)(1) of Regulation AB), or


 






    88


     


    

 


(ii)              if
Lender expects that the principal amount of the Loan together with any Related Loans, as of the cut-off date for such Securitization,
may equal or exceed twenty percent (20%) of the aggregate principal amount of all mortgage loans included or expected to be included in
the Securitization, the financial statements required under Item 1112(b)(2) of Regulation AB (which includes, but may not be limited
to, a balance sheet with respect to the entity that Lender determines to be a Significant Obligor for the two most recent Fiscal Years
and applicable interim periods, meeting the requirements of Rule 3-01 of Regulation S-X, and statements of income and statements
of cash flows with respect to the Property for the three most recent Fiscal Years and applicable interim periods, meeting the requirements
of Rule 3-02 of Regulation S-X (or if Lender determines that the Property is the Significant Obligor and the Property (other than
properties that are hotels, nursing homes, or other properties that would be deemed to constitute a business and not real estate under
Regulation S-X or other legal requirements) was acquired from an unaffiliated third party and the other conditions set forth in Rule 3-14
of Regulation S-X have been met, the financial statements required by Rule 3-14 of Regulation S-X)).


 


(d)            Further,
if requested by Lender, Borrower shall, promptly upon Lender’s request, furnish to Lender financial data or financial statements
meeting the requirements of Item 1112(b)(1) or (2) of Regulation AB, as specified by Lender, for any Tenant of the Property
(to the extent available to Borrower) if, in connection with a Securitization, Lender expects there to be, as of the cutoff date for such
Securitization, a concentration with respect to such Tenant or group of affiliated Tenants within all of the mortgage loans included or
expected to be included in the Securitization such that such Tenant or group of affiliated Tenants would constitute a Significant Obligor.
Borrower shall furnish to Lender, in connection with the preparation of the Disclosure Documents and on an ongoing basis, financial data
and/or financial statements with respect to such Tenants meeting the requirements of Item 1112(b)(1) or (2) of Regulation AB,
as specified by Lender, but only for so long as such entity or entities are a Significant Obligor and either (x) filings pursuant
to the Exchange Act in connection with or relating to the Securitization (an “Exchange Act Filing”) are required
to be made under applicable Legal Requirements or (y) comparable information is required to otherwise be “available”
to holders of the Securities under Regulation AB or applicable Legal Requirements.


 


(e)             If
Lender determines that Borrower alone or Borrower and one or more Affiliates of Borrower collectively, or the Property alone or the Property
and Related Properties collectively, are a Significant Obligor, then Borrower shall furnish to Lender, on an ongoing basis, selected financial
data or financial statements meeting the requirements of Item 1112(b)(1) or (2) of Regulation AB, as specified by Lender, but
only for so long as such entity or entities are a Significant Obligor and either (x) Exchange Act Filings are required to be made
under applicable Legal Requirements or (y) comparable information is required to otherwise be “available” to holders
of the Securities under Regulation AB or applicable Legal Requirements.


 






    89


     


    

 


(f)             Any
financial data or financial statements provided pursuant to this Section 9.1 shall be furnished to Lender within the following
time periods:


 


(i)               with
respect to information requested in connection with the preparation of Disclosure Documents for a Securitization, within ten (10) Business
Days after notice from Lender; and


 


(ii)              with
respect to ongoing information required under Section 9.1(d) and (e) above, (1) not later than thirty
(30) days after the end of each fiscal quarter of Borrower and (2) not later than seventy-five (75) days after the end of each Fiscal
Year of Borrower.


 


(g)            If
requested by Lender, Borrower shall provide Lender, promptly, and in any event within three (3) Business Days following Lender’s
request therefor, with any other or additional financial statements, or financial, statistical or operating information, as Lender shall
reasonably determine to be required pursuant to Regulation S-K or Regulation S-X, as applicable, Regulation AB, or any amendment, modification
or replacement thereto or other Legal Requirements relating to a Securitization or as shall otherwise be reasonably requested by the Lender.


 


(h)            If
requested by Lender, whether in connection with a Securitization or at any time thereafter during which the Loan and any Related Loans
are included in a Securitization, Borrower shall provide Lender, promptly upon request, a list of Tenants (including all affiliates of
such Tenants) that in the aggregate (1) occupy 10% or more (but less than 20%) of the total floor area of the improvements or represent
10% or more (but less than 20%) of aggregate base rent, and (2) occupy 20% or more of the total floor area of the improvements or
represent 20% or more of aggregate base rent.


 


(i)             All
financial statements provided by Borrower pursuant to this Section 9.1(c), (d), (e) or (f) shall
be prepared in accordance with GAAP, and shall meet the requirements of Regulation S-K or Regulation S-X, as applicable, Regulation AB,
and other applicable Legal Requirements. All financial statements relating to a Fiscal Year shall be audited by Independent Accountants
in accordance with generally accepted auditing standards, Regulation S-X or Regulation S-K, as applicable, Regulation AB, and all other
applicable Legal Requirements, shall be accompanied by the manually executed report of the Independent Accountants thereon, which report
shall meet the requirements of Regulation S-K or Regulation S-X, as applicable, Regulation AB, and all other applicable Legal Requirements,
and shall be further accompanied by a manually executed written consent of the Independent Accountants, in form and substance acceptable
to Lender, to the inclusion of such financial statements in any Disclosure Document and any Exchange Act Filing and to the use of the
name of such Independent Accountants and the reference to such Independent Accountants as “experts” in any Disclosure Document
and Exchange Act Filing (or comparable information is required to otherwise be available to holders of the Securities under Regulation
AB or applicable Legal Requirements), all of which shall be provided at the same time as the related financial statements are required
to be provided. All other financial statements shall be certified by the chief financial officer of Borrower, which certification shall
state that such financial statements meet the requirements set forth in the first sentence of this paragraph.


 






    90


     


    

 


(j)             In
connection with any Secondary Market Transaction, Lender shall have the right, and Borrower hereby authorizes Lender, to disclose any
and all information in Lender’s possession regarding Borrower, Guarantor, any Manager, any tenants and provisions of any leases,
the Property and/or the Loan in any Disclosure Document, in any promotional, pre-marketing materials or marketing materials that are prepared
by or on behalf of Lender in connection with such Secondary Market Transaction or in connection with any oral or written presentation
made by or on behalf of Lender, including without limitation, to any actual or potential investors and any Rating Agencies and other NRSROs.


 


Section 9.2             Securitization
Indemnification.


 


(a)             Borrower
understands that certain of the Provided Information and other information provided to Lender by Borrower and its agents, counsel and
representatives may be included in preliminary and final disclosure documents in connection with any Secondary Market Transaction, including
a Securitization, including without limitation, an offering circular, a prospectus, a prospectus supplement, a private placement memorandum,
a structural and collateral term sheet or any other offering document (each, a “Disclosure Document”) (such
Provided Information and such other information included in any Disclosure Document collectively, the “Covered Disclosure
Information”) and may also be included in filings with the Securities and Exchange Commission pursuant to the Securities
Act of 1933, as amended (the “Securities Act”), or the Securities and Exchange Act of 1934, as amended (the
 “Exchange Act”), and may be made available to investors or prospective investors in the Securities, investment
banking firms, NRSROs, accounting firms, law firms and other third-party advisory and service providers relating to any Secondary Market
Transaction, including a Securitization. Borrower also understands that the findings and conclusions of any third-party due diligence
report obtained by the Lender, the Issuer or the Securitization placement agent or underwriter may be made publicly available if required,
and in the manner prescribed, by Section 15E(s)(4)(A) of the Exchange Act and any rules promulgated thereunder.


 


(b)             Borrower
and Guarantor each hereby agrees to indemnify Lender (and for purposes of this Section 9.2, Lender shall include the initial
lender, its successors and assigns, and their respective officers and directors) and each Person who controls the Lender within the meaning
of Section 15 of the Securities Act or Section 20 of the Exchange Act (collectively, the “Lender Group”),
the issuer of the Securities (the “Issuer” and for purposes of this Section 9.2, Issuer shall
include its officers, directors and each Person who controls the Issuer within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act), and any placement agent or underwriter with respect to the Securitization, each of their respective
officers and directors and each Person who controls the placement agent or underwriter within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act (collectively, the “Underwriter Group”) for any losses, claims, damages
or liabilities (collectively, the “Liabilities”) to which Lender, the Lender Group, the Issuer or the Underwriter
Group may become subject insofar as the Liabilities arise out of, or are based upon, (A) any untrue statement or alleged untrue statement
of any material fact contained in the Covered Disclosure Information, (B) the omission or alleged omission to state in the Covered
Disclosure Information a material fact required to be stated therein or necessary in order to make the statements in the Covered Disclosure
Information, in light of the circumstances under which they were made, not misleading, or (C) a breach of the representations and
warranties made by Borrower in Section 3.1.31 of this Agreement (Full and Accurate Disclosure). Borrower also agrees to reimburse
Lender, the Lender Group, the Issuer and/or the Underwriter Group for any legal or other expenses reasonably incurred by Lender, the Lender
Group, the Issuer and/or the Underwriter Group in connection with investigating or defending the Liabilities. This indemnification provision
will be in addition to any liability which Borrower may otherwise have. Borrower acknowledges and agrees that any Person that is included
in the Lender Group, the Issuer and/or the Underwriter Group that is not a direct party to this Agreement shall be deemed to be a third-party
beneficiary to this Agreement with respect to this Section 9.2(b). Within five (5) Business Days after Lender’s
written request, Borrower and Guarantor shall execute and deliver to Lender a separate indemnification and reimbursement agreement in
favor of the Lender Group, the Issuer and the Underwriter Group in form and substance consistent with the indemnification and reimbursement
obligations of Borrower under this Section 9.2(b). Notwithstanding the foregoing, the indemnification provided for under this
Section 9.2(b) shall be effective whether or not an indemnification and reimbursement agreement described above is provided.


 






    91


     


    

 


(c)             In
connection with any Exchange Act Filing or other reports containing comparable information that is required to be made “available”
to holders of the Securities under Regulation AB or applicable Legal Requirements, Borrower agrees to (i) indemnify Lender, the Lender
Group, the Issuer and the Underwriter Group for Liabilities to which Lender, the Lender Group, the Issuer and/or the Underwriter Group
may become subject insofar as the Liabilities arise out of, or are based upon, an alleged untrue statement or alleged omission or an untrue
statement or omission made in reliance upon, and in conformity with, the Covered Disclosure Information, and (ii) reimburse Lender,
the Lender Group, the Issuer and/or the Underwriter Group for any legal or other expenses reasonably incurred by Lender, the Lender Group,
the Issuer and/or the Underwriter Group in connection with defending or investigating the Liabilities.


 


(d)            Promptly
after receipt by an indemnified party under this Section 9.2 of notice of the commencement of any action, such indemnified
party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 9.2, notify the
indemnifying party in writing of the commencement thereof, but the omission to so notify the indemnifying party will not relieve the indemnifying
party from any liability which the indemnifying party may have to any indemnified party hereunder except to the extent that failure to
notify causes prejudice to the indemnifying party. In the event that any action is brought against any indemnified party, and it notifies
the indemnifying party of the commencement thereof, the indemnifying party will be entitled, jointly with any other indemnifying party,
to participate therein and, to the extent that it (or they) may elect by written notice delivered to the indemnified party promptly after
receiving the aforesaid notice from such indemnified party, to assume the defense thereof with counsel satisfactory to such indemnified
party. After notice from the indemnifying party to such indemnified party pursuant to the immediately preceding sentence of this Section 9.2(d),
such indemnifying party shall not pay for any legal or other expenses subsequently incurred by such indemnified party in connection with
the defense thereof other than reasonable costs of investigation; provided, however, if the defendants in any such action include both
the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there are any legal defenses
available to it and/or other indemnified parties that are different from or additional to those available to the indemnifying party, the
indemnified party or parties shall have the right to select separate counsel to assert such legal defenses and to otherwise participate
in the defense of such action on behalf of such indemnified party at the cost of the indemnifying party. The indemnifying party shall
not be liable for the expenses of more than one separate counsel unless an indemnified party shall have reasonably concluded that there
may be legal defenses available to it that are different from or additional to those available to any other indemnified party. Without
the prior written consent of Lender (which consent shall not be unreasonably withheld or delayed), no indemnifying party shall settle
or compromise or consent to the entry of any judgment in any pending or threatened claim, action, suit or proceeding in respect of which
indemnification may be sought hereunder (whether or not any indemnified party is an actual or potential party to such claim, action, suit
or proceeding) unless the indemnifying party shall have given Lender reasonable prior written notice thereof and shall have obtained an
unconditional release of each indemnified party hereunder from all liability arising out of such claim, action, suit or proceedings, and
such settlement requires no statement as to, or an admission of, fault, culpability or a failure to act, by or on behalf of the Indemnified
Party.


 






    92


     


    

 


(e)             In
order to provide for just and equitable contribution in circumstances in which the indemnity agreement provided for in Section 9.2(b) or
(c) is for any reason held to be unenforceable as to an indemnified party in respect of any Liabilities (or action in respect thereof)
referred to therein which would otherwise be indemnifiable under Section 9.2(b) or (c), the indemnifying party
shall contribute to the amount paid or payable by the indemnified party as a result of such Liabilities (or action in respect thereof);
provided, however, that no Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities
Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. In determining the amount
of contribution to which the respective parties are entitled, the following factors shall be considered: (i) the Issuer’s and
Borrower’s relative knowledge and access to information concerning the matter with respect to which the claim was asserted; (ii) the
opportunity to correct and prevent any statement or omission; and (iii) any other equitable considerations appropriate in the circumstances.
Lender and Borrower hereby agree that it would not be equitable if the amount of such contribution were determined by pro rata or per
capita allocation.


 


(f)             The
liabilities and obligations of both Borrower and Lender under this Section 9.2 shall survive the termination of this Agreement
and the satisfaction and discharge of the Debt.


 


Section 9.3             Severance.
Subject to Section 9.4 hereof:


 


9.3.1        Severance
Documentation. Lender, without in any way limiting Lender’s other rights hereunder,
in its sole and absolute discretion, shall have the right, at any time (whether prior to or after any sale, participation or Securitization
of all or any portion of the Loan), to require Borrower to execute and deliver “component” notes and/or modify the Loan in
order to create one or more senior and subordinate notes (i.e., an A/B or A/B/C structure) and/or one or more additional components of
the Note or Notes (including the implementation of one or more New Mezzanine Loans (in accordance with Section 9.3.2 below)),
reduce the number of components of the Note or Notes, revise the interest rate for each component, reallocate the principal balances of
the Notes and/or the components, increase or decrease the monthly debt service payments for each component or eliminate the component
structure and/or the multiple note structure of the Loan (including the elimination of the related allocations of principal and interest
payments), provided that the Outstanding Principal Balance of all components immediately after the effective date of such modification
equals the Outstanding Principal Balance immediately prior to such modification and the weighted average of the interest rates for all
components immediately after the effective date of such modification equals the interest rate of the original Note immediately prior to
such modification. At Lender’s election, each note comprising the Loan may be subject to one or more Securitizations. Lender shall
have the right to modify the Note and/or Notes and any components in accordance with this Section 9.3 and, provided that such
modification shall comply with the terms of this Section 9.3, it shall become immediately effective.


 






    93


     


    

 


9.3.2        New
Mezzanine Loan Option. Lender, without in any way limiting Lender’s other rights hereunder,
in its sole and absolute discretion, shall have the right, at any time (whether prior to or after any Secondary Market Transaction), to
create one or more mezzanine loans (each, a “New Mezzanine Loan”), to (i) establish different interest
rates and to reallocate the Outstanding Principal Balance and Monthly Debt Service Payment Amount of the Loan to the Loan and such New
Mezzanine Loan(s), (ii) require the payment of the Loan and any New Mezzanine Loan(s) in such order of priority as may be designated
by Lender and (iii) modify the Debt Service Coverage Ratio covenants to provide for mortgage only and aggregate tests based on a
calculation of each based on the Loan only balance and the aggregate balance of the Loan plus the New Mezzanine Loan(s); provided,
that the outstanding principal balance of the Loan and such New Mezzanine Loan(s) immediately after the effective date of the creation
of such New Mezzanine Loan(s) equals the Outstanding Principal Balance immediately prior to such modification, the weighted average
of the interest rates for the Loan and such New Mezzanine Loan(s) immediately after the effective date of the creation of such New
Mezzanine Loan(s) equals the interest rate of the original Note immediately prior to such modification and the combined Debt Service
Coverage Ratio threshold equals the Debt Service Coverage Ratio threshold in the Low DSCR Period definition set forth herein. Borrower
shall cause the formation of one or more special purpose, bankruptcy remote entities as required by Lender in order to serve as the borrower
under any New Mezzanine Loan (each, a “New Mezzanine Loan Borrower”) and the applicable organizational documents
of Borrower shall be amended and modified as necessary or required in the formation of any New Mezzanine Loan Borrower.


 


9.3.3        Cooperation;
Execution; Delivery. Borrower shall reasonably cooperate with all reasonable requests of
Lender in connection with this Section 9.3. If requested by Lender, Borrower shall promptly execute and deliver such documents
as shall be required by Lender and any Rating Agency in connection with any modification or New Mezzanine Loan pursuant to this Section 9.3,
all in form and substance satisfactory to Lender and satisfactory to any applicable Rating Agency, including, the severance of security
documents if requested and/or, in connection with the creation of any New Mezzanine Loan: (i) execution and delivery of a promissory
note and loan documents necessary to evidence such New Mezzanine Loan, (ii) execution and delivery of such amendments to the Loan
Documents as are necessary in connection with the creation of such New Mezzanine Loan, (iii) delivery of opinions of legal counsel
with respect to due execution, authority and enforceability of any modification documents or documents evidencing or securing any New
Mezzanine Loan, as applicable and (iv) with respect to any New Mezzanine Loan, delivery of a substantive non-consolidation opinion;
each as reasonably acceptable to Lender, prospective investors and/or the Rating Agencies. In the event Borrower fails to execute and
deliver such documents to Lender within five (5) Business Days following such request by Lender, Borrower hereby absolutely and irrevocably
appoints Lender as its true and lawful attorney, coupled with an interest, in its name and stead to make and execute all documents necessary
or desirable to effect such transactions, Borrower hereby ratifying all that such attorney shall do by virtue thereof. It shall be an
Event of Default under this Agreement, the Note, the Mortgage and the other Loan Documents if Borrower fails to comply with any of the
terms, covenants or conditions of this Section 9.3 after expiration of ten (10) Business Days after notice thereof.


 






    94


     


    

 


Section 9.4             Costs
and Expenses. Notwithstanding anything to the contrary contained in this Article 9,
Borrower shall not be required to incur any material costs or expenses in the performance of its obligations under Section 9.3
above other than expenses of Borrower’s counsel, accountants and consultants.


 


Article 10


 


MISCELLANEOUS


 


Section 10.1           Exculpation.
Subject to the qualifications below, Lender shall not enforce the liability and obligation of Borrower to perform and observe the Obligations
contained in the Note, this Agreement, the Mortgage or the other Loan Documents by any action or proceeding wherein a money judgment shall
be sought against Borrower, except that Lender may bring a foreclosure action, an action for specific performance or any other appropriate
action or proceeding to enable Lender to enforce and realize upon its interest under the Note, this Agreement, the Mortgage and the other
Loan Documents, or in the Property, the Gross Revenues or any other collateral given to Lender pursuant to the Loan Documents; provided,
however, that, except as specifically provided herein, any judgment in any such action or proceeding shall be enforceable against Borrower
only to the extent of Borrower’s interest in the Property, in the Gross Revenues and in any other collateral given to Lender, and
Lender, by accepting the Note, this Agreement, the Mortgage and the other Loan Documents, shall not sue for, seek or demand any deficiency
judgment against Borrower in any such action or proceeding under or by reason of or under or in connection with the Note, this Agreement,
the Mortgage or the other Loan Documents. The provisions of this Section 10.1 shall not, however, (a) constitute a waiver,
release or impairment of any obligation evidenced or secured by any of the Loan Documents; (b) impair the right of Lender to name
Borrower as a party defendant in any action or suit for foreclosure and sale under the Mortgage; (c) affect the validity or enforceability
of any of the Loan Documents or any guaranty made in connection with the Loan or any of the rights and remedies of Lender thereunder;
(d) impair the right of Lender to obtain the appointment of a receiver; (e) impair the enforcement of the Assignment of Leases;
(f) impair the enforcement of the Environmental Indemnity; (g) constitute a prohibition against Lender to seek a deficiency
judgment against Borrower in order to fully realize the security granted by the Mortgage or to commence any other appropriate action or
proceeding in order for Lender to exercise its remedies against the Property; or (h) constitute a waiver of the right of Lender to
enforce the liability and obligation of Borrower, by money judgment or otherwise, to the extent of any loss, damage, cost, expense, liability,
claim or other obligation incurred by Lender (including attorneys’ fees and costs reasonably incurred) arising out of or in connection
with the following (all such liability and obligation of Borrower for any or all of the following being referred to herein as “Borrower’s
Recourse Liabilities”):


 


(i)               fraud,
willful misconduct, misrepresentation or failure to disclose a material fact by or on behalf of Borrower, Guarantor, any Affiliate of
Borrower or Guarantor, or any of their respective agents or representatives in connection with the Loan;


 


(ii)              the
breach of any representation, warranty, covenant or indemnification provision in the Environmental Indemnity or in any other Loan Document
concerning environmental laws, hazardous substances and/or asbestos and any indemnification of Lender with respect thereto in either document;


 






    95


     


    

 


(iii)             wrongful
removal or destruction of any portion of the Property or damage to the Property caused by willful misconduct or gross negligence;


 


(iv)             any
physical waste of the Property;


 


(v)              the
forfeiture by Borrower of the Property, or any portion thereof, because of the conduct or purported conduct of criminal activity by Borrower
or Guarantor or any of their respective agents or representatives in connection therewith, including by reason of any claim under the
Racketeer Influenced and Corrupt Organizations Act (RICO);


 


(vi)             the
misappropriation or conversion by or on behalf of Borrower of (A) any Insurance Proceeds paid by reason of any loss, damage or destruction
to the Property, or (B) any Awards or other amounts received in connection with the Condemnation of all or a portion of the Property,
or (C) any Gross Revenues (including Rents, Insurance Proceeds, security deposits, advance deposits or any other deposits and
Lease Sweep Lease Termination Payments and Lease Termination Payments) or (D) any other funds due under the Loan Documents, including,
in connection with any of the foregoing, by reason of failure to comply with Section 6.1 hereof or breach of the Clearing
Account Agreement or the Cash Management Agreement or (E) following the occurrence of the first Lockbox Trigger Event, Borrower’s
failure to establish a Clearing Account pursuant to a Clearing Account Agreement as, when and to the extent required by Section 6.1
hereof;


 


(vii)            failure
to pay charges for labor or materials or other charges that can create Liens on any portion of the Property; provided, however, there
shall be no liability under this clause (vii) if Rents received during the period in question are insufficient to pay all of Borrower’s
current and/or past due liabilities (including such charges) with respect to the Property, but for purposes of such determination excluding
any liabilities incurred in violation of the Loan Documents;


 


(viii)           any
security deposits, advance deposits or any other deposits collected with respect to the Property which are not delivered to Lender in
accordance with the provisions of the Loan Documents;


 


(ix)             the
failure to pay (A) Taxes; provided, however, there shall be no liability under this clause (ix)(A) if Rents received
during the period in question are insufficient to pay all of Borrower’s current and/or past due liabilities (including such Taxes)
with respect to the Property, but for purposes of such determination excluding any liabilities incurred in violation of the Loan Documents,
or (B) transfer taxes;


 


(x)               failure
to obtain and maintain the fully paid for Policies in accordance with Section 5.1.1 hereof; provided, however, there shall
be no liability under this clause (x) if the Rents received during the period in question are insufficient to pay all of Borrower’s
current and/or past due liabilities (including such Policies) with respect to the Property, but for purposes of such determination excluding
any liabilities incurred in violation of the Loan Documents;


 


(xi)              intentionally
omitted;


 






    96


     


    

 


(xii)             following
any Casualty or Condemnation to the Property, Borrower’s inability to restore the Property to its pre-existing condition and use
as existed immediately prior to such Casualty or Condemnation in compliance with and permitted under all applicable Legal Requirements;


 


(xiii)            Borrower’s
indemnification of Lender set forth in Section 9.2 hereof; and/or


 


(xiv)            any
cost or expense incurred by Lender in connection with the enforcement of its rights and remedies hereunder or under any other Loan Document.


 


Notwithstanding anything to the contrary in this
Agreement or any of the other Loan Documents, (A) Lender shall not be deemed to have waived any right which Lender may have under
Section 506(a), 506(b), 1111(b) or any other provisions of the Bankruptcy Code to file a claim for the full amount of the Obligations
or to require that all collateral shall continue to secure all of the Obligations owing to Lender in accordance with the Loan Documents,
and (B) the Obligations shall be fully recourse to Borrower in the event that any of the following occur (each, a “Springing
Recourse Event”):


 


(i)               a
breach of the covenants set forth in Section 4.4 hereof or a breach of any of the representations set forth in the “Recycled
SPE Certificate” delivered to Lender in connection with the Loan;


 


(ii)              Borrower
fails to obtain Lender’s prior consent to any subordinate financing secured by the Property or other voluntary Lien encumbering
the Property;


 


(iii)             Borrower
fails to obtain Lender’s prior consent to any Transfer of the Property or any interest therein or any Transfer of any direct or
indirect interest in Borrower, in either case as required by the Mortgage or this Agreement other than a Permitted Transfer;


 


(iv)             Intentionally
omitted;


 


(v)              Borrower
files a voluntary petition under the Bankruptcy Code or any other Federal or state bankruptcy or insolvency law;


 


(vi)             Borrower
is substantively consolidated with any other Person; unless such consolidation was involuntary and not consented to by Borrower
or Guarantor and is discharged, stayed or dismissed within sixty (60) days following the occurrence of such consolidation;


 


(vii)            the
filing of an involuntary petition against Borrower under the Bankruptcy Code or any other Federal or state bankruptcy or insolvency law
by any other Person in which Borrower and/or Guarantor colludes with or otherwise assists such Person, and/or Borrower and/or Guarantor
solicits or causes to be solicited petitioning creditors for any involuntary petition against Borrower by any Person;


 






    97


     


    

 


(viii)           Borrower
files an answer consenting to, or otherwise acquiescing in, or joining in, any involuntary petition filed against it by any other Person
under the Bankruptcy Code or any other Federal or state bankruptcy or insolvency law;


 


(ix)              Borrower,
Guarantor or any Affiliate, officer, director or representative which controls Borrower or Guarantor consents to, or acquiesces in, or
joins in, an application for the appointment of a custodian, receiver, trustee or examiner for Borrower, or any portion of the Property;


 


(x)               Borrower
makes an assignment for the benefit of creditors or admits, in writing or in any legal proceeding, its insolvency or inability to pay
its debts as they become due;


 


(xi)              if
Guarantor (or any Person comprising Guarantor), Borrower or any Affiliate of any of the foregoing, in connection with any enforcement
action or exercise or assertion of any right or remedy by or on behalf of Lender under or in connection with the Guaranty, the Note, the
Mortgage or any other Loan Document, seeks a defense, judicial intervention or injunctive or other equitable relief of any kind, or asserts
in a pleading filed in connection with a judicial proceeding any defense against Lender or any right in connection with any security for
the Loan;


 


(xii)             (A) Borrower
voluntarily avails itself of the benefits of any Emergency Law or otherwise voluntarily exercises any right or option under any Emergency
Law and (B) such Emergency Law either (X) permits (I) Borrower to defer payment of, or otherwise elect not to pay, any
amounts as and when due under the Loan Documents or (II) Borrower to delay performance of, or otherwise elect not to perform, any
non-monetary obligation of Borrower as and when required under the Loan Documents or (Y) prevents Lender, or requires Lender to forbear,
from exercising (at such time or another time in the future) any one or more rights or remedies that, in the absence of such Emergency
Law, could otherwise be available to Lender under the Loan Documents or applicable Legal Requirements; or


 


(xiii)            Borrower
fails to comply promptly (and in any event within any applicable timeframe provided under the relevant Emergency Law) with any request
made by Lender pursuant to an Emergency Law for Borrower to take any action that, in Lender’s reasonable judgment, is necessary
or reasonably necessary in order to permit Lender to exercise (at such time or another time in the future) any one or more rights or remedies
that, in the absence of such Emergency Law, could otherwise be available to Lender under the Loan Documents or applicable Legal Requirements.


 


Section 10.2          Survival;
Successors and Assigns. This Agreement and all covenants, agreements, representations and
warranties made herein and in the certificates delivered pursuant hereto shall survive the making by Lender of the Loan and the execution
and delivery to Lender of the Note, and shall continue in full force and effect so long as all or any of the Obligations are outstanding
and unpaid unless a longer period is expressly set forth herein or in the other Loan Documents. Whenever in this Agreement any of the
parties hereto is referred to, such reference shall be deemed to include the legal representatives, successors and assigns of such party.
All covenants, promises and agreements in this Agreement, by or on behalf of Borrower, shall inure to the benefit of the legal representatives,
successors and assigns of Lender.


 






    98


     


    

 


Section 10.3          Lender’s
Discretion; Rating Agency Review Waiver.


 


(a)            Whenever
pursuant to this Agreement Lender exercises any right given to it to approve or disapprove any matter, or any arrangement or term is to
be satisfactory to Lender, the decision of Lender to approve or disapprove such matter or to decide whether arrangements or terms are
satisfactory or not satisfactory shall (except as is otherwise specifically herein provided) be in the sole discretion of Lender and shall
be final and conclusive. Prior to a Securitization, whenever pursuant to this Agreement the Rating Agencies are given any right to approve
or disapprove any matter, or any arrangement or term is to be satisfactory to the Rating Agencies, the decision of Lender to approve or
disapprove such matter or to decide whether arrangements or terms are satisfactory or not satisfactory, based upon Lender’s determination
of Rating Agency criteria, shall be substituted therefor.


 


(b)            Whenever,
pursuant to this Agreement or any other Loan Documents, a Rating Agency Confirmation is required from each applicable Rating Agency, in
the event that any applicable Rating Agency “declines review”, “waives review” or otherwise indicates in writing
or otherwise to Lender’s or Servicer’s satisfaction that no Rating Agency Confirmation will or needs to be issued with respect
to the matter in question (each, a “Review Waiver”), then the Rating Agency Confirmation requirement shall be
deemed to be satisfied with respect to such matter. It is expressly agreed and understood, however, that receipt of a Review Waiver (i) from
any one Rating Agency shall not be binding or apply with respect to any other Rating Agency and (ii) with respect to one matter shall
not apply or be deemed to apply to any subsequent matter for which Rating Agency Confirmation is required.


 


(c)            Prior
to a Securitization or in the event that there is a Review Waiver, if Lender does not have a separate and independent approval right with
respect to the matter in question, then the term Rating Agency Confirmation shall be deemed instead to require the prior written consent
of Lender.


 


Section 10.4          Governing
Law.


 


(a)             THIS
AGREEMENT WAS NEGOTIATED IN THE STATE OF NEW YORK, AND MADE BY LENDER AND ACCEPTED BY BORROWER IN THE STATE OF NEW YORK, AND THE PROCEEDS
OF THE NOTE DELIVERED PURSUANT HERETO WERE DISBURSED FROM THE STATE OF NEW YORK, WHICH STATE THE PARTIES AGREE HAS A SUBSTANTIAL RELATIONSHIP
TO THE PARTIES AND TO THE UNDERLYING TRANSACTION EMBODIED HEREBY, AND IN ALL RESPECTS, INCLUDING, WITHOUT LIMITING THE GENERALITY
OF THE FOREGOING, MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS AGREEMENT AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE (WITHOUT
REGARD TO PRINCIPLES OF CONFLICT OF LAWS) AND ANY APPLICABLE LAW OF THE UNITED STATES OF AMERICA, EXCEPT THAT AT ALL TIMES THE PROVISIONS
FOR THE CREATION, PERFECTION AND ENFORCEMENT OF THE LIEN AND SECURITY INTEREST CREATED PURSUANT HERETO AND PURSUANT TO THE OTHER LOAN
DOCUMENTS SHALL BE GOVERNED BY, AND CONSTRUED ACCORDING TO, THE LAW OF THE STATE, COMMONWEALTH OR DISTRICT, AS APPLICABLE, IN WHICH
THE PROPERTY IS LOCATED, IT BEING UNDERSTOOD THAT, TO THE FULLEST EXTENT PERMITTED BY THE LAW OF SUCH STATE, COMMONWEALTH OR DISTRICT,
AS APPLICABLE, THE LAW OF THE STATE OF NEW YORK SHALL GOVERN THE CONSTRUCTION, VALIDITY AND ENFORCEABILITY OF ALL LOAN DOCUMENTS AND ALL
OF THE OBLIGATIONS ARISING HEREUNDER OR THEREUNDER. TO THE FULLEST EXTENT PERMITTED BY LAW, BORROWER HEREBY UNCONDITIONALLY AND IRREVOCABLY
WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS AGREEMENT AND THE NOTE, AND THIS AGREEMENT AND THE NOTE
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK PURSUANT TO SECTION 5-1401 OF THE NEW YORK
GENERAL OBLIGATIONS LAW.


 






    99


     


    

 


(b)            ANY
LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR BORROWER ARISING OUT OF OR RELATING TO THIS AGREEMENT MAY AT LENDER’S OPTION
BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN THE CITY OF NEW YORK, COUNTY OF NEW YORK, PURSUANT TO SECTION 5-1402 OF THE NEW YORK
GENERAL OBLIGATIONS LAW, AND BORROWER WAIVES ANY OBJECTIONS WHICH IT MAY NOW OR HEREAFTER HAVE BASED ON VENUE AND/OR FORUM NON CONVENIENS
OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND BORROWER HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF ANY SUCH COURT IN ANY
SUIT, ACTION OR PROCEEDING. BORROWER DOES HEREBY DESIGNATE AND APPOINT:


 


RICHARD L. YELLEN, ESQ.

RICHARD L. YELLEN & ASSOCIATES LLP

111 BROADWAY

NEW YORK, NEW YORK 10006


 


AS ITS AUTHORIZED AGENT TO ACCEPT AND ACKNOWLEDGE
ON ITS BEHALF SERVICE OF ANY AND ALL PROCESS WHICH MAY BE SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING IN ANY FEDERAL OR STATE COURT
IN NEW YORK, NEW YORK, AND BORROWER AGREES THAT SERVICE OF PROCESS UPON SAID AGENT AT SAID ADDRESS AND WRITTEN NOTICE OF SAID SERVICE
MAILED OR DELIVERED TO BORROWER IN THE MANNER PROVIDED HEREIN SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON BORROWER
IN ANY SUCH SUIT, ACTION OR PROCEEDING IN THE STATE OF NEW YORK. BORROWER (I) SHALL GIVE PROMPT NOTICE TO LENDER OF ANY CHANGED ADDRESS
OF ITS AUTHORIZED AGENT HEREUNDER, (II) MAY AT ANY TIME AND FROM TIME TO TIME DESIGNATE A SUBSTITUTE AUTHORIZED AGENT WITH AN
OFFICE IN NEW YORK, NEW YORK (WHICH SUBSTITUTE AGENT AND OFFICE SHALL BE DESIGNATED AS THE PERSON AND ADDRESS FOR SERVICE OF PROCESS),
AND (III) SHALL PROMPTLY DESIGNATE SUCH A SUBSTITUTE IF ITS AUTHORIZED AGENT CEASES TO HAVE AN OFFICE IN NEW YORK, NEW YORK OR IS
DISSOLVED WITHOUT LEAVING A SUCCESSOR. NOTHING CONTAINED HEREIN SHALL AFFECT THE RIGHT OF LENDER TO SERVE PROCESS IN ANY OTHER MANNER
PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST BORROWER IN ANY OTHER JURISDICTION.


 






    100


     


    

 



 


Section 10.5   Modification,
Waiver in Writing. No modification, amendment, extension, discharge, termination or waiver
of any provision of this Agreement or of any other Loan Document, nor consent to any departure by Borrower therefrom, shall in any event
be effective unless the same shall be in a writing signed by the party or parties against whom enforcement is sought, and then such waiver
or consent shall be effective only in the specific instance, and for the purpose, for which given. Except as otherwise expressly provided
herein, no notice to, or demand on, Borrower shall entitle Borrower to any other or future notice or demand in the same, similar or other
circumstances. Neither any failure nor any delay on the part of Lender in insisting upon strict performance of any term, condition, covenant
or agreement, or exercising any right, power, remedy or privilege hereunder or under any other Loan Document, shall operate as or constitute
a waiver thereof, nor shall a single or partial exercise thereof preclude any other future exercise, or the exercise of any other right,
power, remedy or privilege. In particular, and not by way of limitation, by accepting payment after the due date of any amount payable
under this Agreement or any other Loan Document, Lender shall not be deemed to have waived any right either to require prompt payment
when due of all other amounts due under this Agreement or the other Loan Documents, or to declare a default for failure to effect prompt
payment of any such other amount. Lender shall have the right to waive or reduce any time periods that Lender is entitled to under the
Loan Documents in its sole and absolute discretion.


 


Section 10.6   Notices.
All notices, demands, requests, consents, approvals or other communications (any of the foregoing,
a “Notice”) required, permitted or desired to be given hereunder shall be in writing and shall be sent by facsimile
(with answer back acknowledged) or by registered or certified mail, postage prepaid, return receipt requested, or delivered by hand or
by reputable overnight courier, or electronically transmitted by e-mail with hard copy delivered by hand or reputable overnight courier
(unless waived by Agent as described below), addressed to the party to be so notified at its address hereinafter set forth, or to such
other address as such party may hereafter specify in accordance with the provisions of this Section 10.6. Any Notice shall
be deemed to have been received: (a) three (3) days after the date such Notice is mailed, (b) on the date of sending by
facsimile if sent during business hours on a Business Day (otherwise on the next Business Day), (c) on the date of delivery by hand
if delivered during business hours on a Business Day (otherwise on the next Business Day), (d) on the next Business Day if sent
by an overnight commercial courier and (e) if transmitted by e-mail, (A) if such e-mail was sent prior to 5 P.M. EST on
a Business Day, then on the date such e-mail was sent, provided that a hard copy of such e-mail (and any and all attachments) is delivered
by hand or reputable overnight courier on the immediately succeeding Business Day, or (y) if such e-mail was sent on a day that
is not a Business Day or after 5 P.M. EST on a Business Day, then on the Business Day immediately succeeding the date such e-mail
was sent, provided that a hard copy of such e-mail (and any and all attachments) is delivered by hand or reputable overnight courier
on the second Business Day immediately following the date on which such e-mail was sent; provided, however, that by written notice to
Borrower, Agent shall have the unilateral right at any time to waive the hard copy requirement with respect to all Notices sent via e-mail,
in each case addressed to the parties as follows:


 





	If to Lender:	DBR Investments Co. Limited
	 	1 Columbus Circle, 15th Floor
	 	New York, New York 10019
	 	Attention:
		 	Robert W. Pettinato, Jr.
	 	 	Email:   robert.pettinato@db.com
	 	 	Nick Manolas
	 	 	Email:   nick.manolas@db.com
	 	 	Theresa Elle
	 	 	Email:   theresa.ellel@db.com
		Facsimile No.: (212) 797-4489


 



    101


     


    




	 	 	 
	and to:	DBR Investments Co. Limited
	 	1 Columbus Circle, 15th Floor
	 	New York, New York 10019
	 	Attention: General Counsel
	 	Facsimile No.: (646) 736-5721
	 	 
	and to:	Deutsche Bank Securities, Inc.
	 	Six Concourse Parkway, Suite 2135
	 	Atlanta, Georgia 30328
	 	Attention: James McFarlane
	 	Email:   james.mcfarlane@db.com
	 	Facsimile No.: (212) 797-4489
	 	 
	with a copy to:	Frost Brown Todd LLC
	 	400 West Market Street, Suite 3200
	 	Louisville, Kentucky 40202
	 	Attention: John W. Gragg, Esq.
	 	Email:   jgragg@fbtlaw.com
	 	Facsimile No.: (502) 581-1087
	 	 
	with a copy to:	Midland Loan Services, a Division of
	 	PNC Bank, National Association
	 	10851 Mastin, Ste 300
	 	Overland Park, Kansas 66210
	 	Attention: Gunner Boss
	 	Facsimile No. (913) 253-9001
	 	 
	If to Borrower:	MDR Franklin Square, LLC
	 	1051 East Cary Street, Suite 601
	 	James Center Three
	 	Richmond, Virginia 23219
	 	Attention: William R. Elliott
	 	Email:   bill.elliott@medalistprop.com
	 	Facsimile No.: (804) 344-5072



 



    102


     


    







 


	with a copy to:	Kaplan, Voekler, Cunningham & Frank, PLC
	 	1401 E. Cary Street
	 	Richmond, VA 23219
	 	Attention: D. Zachary Grabill, Esq.
	 	Facsimile No.: (804) 823-4099



 


Any party may change the address to which any
such Notice is to be delivered by furnishing ten (10) days written notice of such change to the other parties in accordance with
the provisions of this Section 10.6. Notices shall be deemed to have been given on the date as set forth above, even if there
is an inability to actually deliver any such Notice because of a changed address of which no Notice was given, or there is a rejection
or refusal to accept any Notice offered for delivery. Notice for any party may be given by its respective counsel. Additionally, Notice
from Lender may also be given by Servicer and Lender hereby acknowledges and agrees that Borrower shall be entitled to rely on any Notice
given by Servicer as if it had been sent by Lender.


 


Section 10.7   Waiver
of Trial by Jury. BORROWER AND LENDER EACH 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 THE 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 BORROWER 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. EACH PARTY IS HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH
IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER.


 


Section 10.8   Headings,
Schedules and Exhibits. The Article and/or Section headings and the Table of Contents
in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other
purpose. The Schedules and Exhibits annexed hereto are hereby incorporated herein as a part of this Agreement with the same effect as
if set forth in the body hereof.


 


Section 10.9   Severability.
Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective
to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of
this Agreement.


 


Section 10.10 Preferences.
Lender shall have the continuing and exclusive right to apply or reverse and reapply any and all payments by Borrower to any portion
of the Obligations of Borrower hereunder. To the extent Borrower makes a payment or payments to Lender, which payment or proceeds or
any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee,
receiver or any other party under any bankruptcy law, state or federal law, common law or equitable cause, then, to the extent of such
payment or proceeds received, the Obligations hereunder or part thereof intended to be satisfied shall be revived and continue in full
force and effect, as if such payment or proceeds had not been received by Lender.


 



    103


     


    

 


Section 10.11 Waiver
of Notice. Borrower shall not be entitled to any notices of any nature whatsoever from Lender
except with respect to matters for which this Agreement or the other Loan Documents specifically and expressly provide for the giving
of notice by Lender to Borrower and except with respect to matters for which Borrower is not, pursuant to applicable Legal Requirements,
permitted to waive the giving of notice. Borrower hereby expressly waives the right to receive any notice from Lender with respect to
any matter for which this Agreement or the other Loan Documents do not specifically and expressly provide for the giving of notice by
Lender to Borrower.


 


Section 10.12 Remedies
of Borrower. In the event that a claim or adjudication is made that Lender or its agents
have acted unreasonably or unreasonably delayed acting in any case where, by law or under this Agreement or the other Loan Documents,
Lender or such agent, as the case may be, has an obligation to act reasonably or promptly, neither Lender nor its agents shall be liable
for any monetary damages and Borrower’s sole remedy shall be limited to commencing an action seeking injunctive relief or declaratory
judgment. Any action or proceeding to determine whether Lender has acted reasonably shall be determined by an action seeking declaratory
judgment.


 


Section 10.13 Offsets,
Counterclaims and Defenses. Any assignee of Lender’s interest in and to this Agreement
and the other Loan Documents shall take the same free and clear of all offsets, counterclaims or defenses which are unrelated to such
documents which Borrower may otherwise have against any assignor of such documents, and no such unrelated counterclaim or defense shall
be interposed or asserted by Borrower in any action or proceeding brought by any such assignee upon such documents and any such right
to interpose or assert any such unrelated offset, counterclaim or defense in any such action or proceeding is hereby expressly waived
by Borrower.


 


Section 10.14 No
Joint Venture or Partnership; No Third Party Beneficiaries.


 


(a)      Borrower
and Lender intend that the relationships created hereunder and under the other Loan Documents be solely that of borrower and lender.
Nothing herein or therein is intended to create a joint venture, partnership, tenancy-in-common or joint tenancy relationship between
Borrower and Lender nor to grant Lender any interest in the Property other than that of mortgagee, beneficiary or lender.


 


(b)     The
Loan Documents are solely for the benefit of Lender and Borrower (and the Lender Group, the Issuer and the Underwriter Group with respect
to Section 9.2(b)) and nothing contained in any Loan Document shall be deemed to confer upon anyone other than the Lender
and Borrower any right to insist upon or to enforce the performance or observance of any of the obligations contained therein.


 


Section 10.15 Publicity.
All news releases, publicity or advertising by Borrower or its Affiliates through any media intended to reach the general public which
refers to the Loan Documents or the financing evidenced by the Loan Documents, to Lender, the Affiliate of Lender that acts as the issuer
with respect to a Securitization or any of their other Affiliates (x) shall be prohibited prior to the final Securitization of the
Loan and (y) after the final Securitization of the Loan, shall be subject to the prior written approval of Lender. Lender shall
have the right to issue any of the foregoing without Borrower’s approval and Borrower authorizes Lender to issue press releases,
advertisements and other promotional materials in connection with Lender’s own promotional and marketing activities, including
in connection with a Secondary Market Transaction, and such materials may describe the Loan in general terms or in detail and Lender’s
participation therein in the Loan.


 



    104


     


    

 


Section 10.16 Waiver
of Marshalling of Assets. To the fullest extent permitted by law, Borrower, for itself and
its successors and assigns, waives all rights to a marshalling of the assets of Borrower, Borrower’s members or partners, as applicable,
and others with interests in Borrower, and of the Property, and shall not assert any right under any laws pertaining to the marshalling
of assets, the sale in inverse order of alienation, homestead exemption, the administration of estates of decedents, or any other matters
whatsoever to defeat, reduce or affect the right of Lender under the Loan Documents to a sale of the Property for the collection of the
Obligations without any prior or different resort for collection, or of the right of Lender to the payment of the Obligations out of
the net proceeds of the Property in preference to every other claimant whatsoever.


 


Section 10.17 Certain
Waivers.


 


(a)      Borrower
hereby waives the right to assert a counterclaim, other than a compulsory counterclaim, in any action or proceeding brought against it
by Lender or its agents or otherwise to offset any obligations to make the payments required by the Loan Documents. No failure by Lender
to perform any of its obligations hereunder shall be a valid defense to, or result in any offset against, any payments which Borrower
is obligated to make under any of the Loan Documents. Without limiting any of the other provisions contained herein, Borrower hereby
unconditionally and irrevocably waives, to the maximum extent not prohibited by applicable law, any rights it may have to claim or recover
against Lender in any legal action or proceeding any special, exemplary, punitive or consequential damages.


 


(b)      To
the fullest extent permitted by applicable Legal Requirements, Borrower hereby irrevocably waives and relinquishes any right, remedy,
claim or defense that Borrower may have, or have the right to assert, in order to avail itself of the benefits of any Emergency Law,
or otherwise exercise any right or option under any Emergency Law, where such Emergency Law (A) permits (x) Borrower to defer
payment of, or otherwise elect not to pay, any amounts as and when due under the Loan Documents and/or (y) Borrower to delay performance
of, or otherwise elect not to perform, any non-monetary obligation of Borrower as and when required under the Loan Documents and/or (B) prevents
Lender, or requires Lender to forbear, from exercising (at such time or another time in the future) any one or more rights or remedies
that, in the absence of such Emergency Law, could otherwise be available to Lender under the Loan Documents or applicable Legal Requirements.


 


Section 10.18 Conflict;
Construction of Documents; Reliance. In the event of any conflict between the provisions
of this Agreement and any of the other Loan Documents, the provisions of this Agreement shall control. The parties hereto acknowledge
that they were represented by competent counsel in connection with the negotiation, drafting and execution of the Loan Documents and
that such Loan Documents shall not be subject to the principle of construing their meaning against the party which drafted same. Borrower
acknowledges that, with respect to the Loan, Borrower shall rely solely on its own judgment and advisors in entering into the Loan, without
relying in any manner on any statements, representations or recommendations of Lender or any parent, subsidiary or affiliate of Lender.
Lender shall not be subject to any limitation whatsoever in the exercise of any rights or remedies available to it under any of the Loan
Documents or any other agreements or instruments which govern the Loan by virtue of the ownership by it or any parent, subsidiary or
affiliate of Lender of any equity interest any of them may acquire in Borrower, and Borrower hereby irrevocably waives the right to raise
any defense or take any action on the basis of the foregoing with respect to Lender’s exercise of any such rights or remedies.
Borrower acknowledges that Lender engages in the business of real estate financings and other real estate transactions and investments
which may be viewed as adverse to or competitive with the business of Borrower or its Affiliates.


 



    105


     


    

 


Section 10.19 Brokers
and Financial Advisors.


 


(a)      Borrower
hereby represents that, except for Phillips Realty Capital (“Broker”), it has dealt with no financial advisors,
brokers, underwriters, placement agents, agents or finders in connection with the transactions contemplated by this Agreement. Borrower
will pay Broker a commission pursuant to a separate agreement. Borrower shall indemnify, defend and hold Lender harmless from and against
any and all claims, liabilities, losses, costs and expenses of any kind (including Lender’s attorneys’ fees and expenses)
in any way relating to or arising out of a claim by any Person (including Broker) that such Person acted on behalf of Borrower or Lender
in connection with the transactions contemplated herein. The provisions of this Section 10.19 shall survive the expiration
and termination of this Agreement and the payment of the Obligations.


 


(b)      Notwithstanding
anything in clause (a) above to the contrary, Borrower hereby acknowledges that (i) at Lender’s sole discretion,
Broker may receive further consideration from Lender relating to the Loan or any other matter for which Lender may elect to compensate
Broker pursuant to a separate agreement between Lender and Broker (which compensation may include a one-time payment on the Closing Date,
a profit sharing payment and/or ongoing payments from Lender to Broker), (ii) Lender shall have no obligation to disclose to Borrower
the existence of any such agreement or the amount of any such additional consideration paid or to be paid to Broker whether in connection
with the Loan or otherwise and (iii) Borrower has had the opportunity to speak with Broker regarding such additional consideration.
Borrower hereby acknowledges that such additional consideration may create a potential conflict of interest for the Broker in its relationship
with Borrower and/or Guarantor and agrees that (x) Lender is not responsible for any recommendations or advice that Broker has given
to Borrower or Guarantor, (y) Lender and Borrower (and Guarantor) are dealing at arms’-length with each other in a commercial
lending transaction and (z) no fiduciary or other special relationship exists or shall exist between them. Borrower hereby further
agrees and acknowledges that Lender has not interfered with Broker’s relationship with Borrower or Guarantor in connection with
the transaction contemplated herein and has not caused Broker to breach any duty that it may owe Borrower or Guarantor.


 


Section 10.20 Prior
Agreements. This Agreement and the other Loan Documents contain the entire agreement of
the parties hereto and thereto and their respective affiliates in respect of the transactions contemplated hereby and thereby, and all
prior agreements among or between such parties, including any confidentiality agreements or any similar agreements between or among any
such parties, whether oral or written, are superseded by the terms of this Agreement and the other Loan Documents.


 



    106


     


    

 


Section 10.21 Servicer.


 


(a)      At
the option of Lender, the Loan may be serviced by a servicer or special servicer (the “Servicer”) selected
by Lender and Lender may delegate all or any portion of its responsibilities under this Agreement and the other Loan Documents to the
Servicer pursuant to a servicing agreement (the “Servicing Agreement”) between Lender and Servicer. Borrower
shall not be responsible for any set-up fees or any other initial costs relating to or arising under the Servicing Agreement. Borrower
shall not be responsible for payment of the monthly master servicing fee due to the Servicer under the Servicing Agreement.


 


(b)      Other
than as set forth in Section 10.21(a) above, Borrower shall pay all of the fees and expenses of the Servicer and any
reasonable third-party fees and expenses in connection with the Loan, including any prepayments, releases of the Property, approvals
under the Loan Documents requested by Borrower, other requests under the Loan, defeasance, assumption of Borrower’s obligations
or modification of the Loan, as well as any fees and expenses in connection with the special servicing or work-out of the Loan or enforcement
of the Loan Documents, including, special servicing fees, operating or trust advisor fees (if the Loan is a specially serviced loan or
in connection with a workout), work-out fees, liquidation fees, attorneys’ fees and expenses and other fees and expenses in connection
with the modification or restructuring of the Loan. All amounts payable to Lender or Servicer in exercising its rights under this Section 10.21 (including, but not limited to, disbursements, advances and reasonable legal expenses incurred in connection therewith), shall be
payable upon demand, secured by this Agreement and interest thereon shall accrue at the Interest Rate (or Default Rate if an Event of
Default then exists) from the date incurred.


 


Section 10.22 Joint
and Several Liability. If more than one Person has executed this Agreement as “Borrower,”
the representations, covenants, warranties and obligations of all such Persons hereunder shall be joint and several.


 


Section 10.23 Creation
of Security Interest. Notwithstanding any other provision set forth in this Agreement, the
Note, the Mortgage or any of the other Loan Documents, Lender may at any time create a security interest in all or any portion of its
rights under this Agreement, the Note, the Mortgage and any other Loan Document (including the advances owing to it) in favor of any
Federal Reserve Bank in accordance with Regulation A of the Board of Governors of the Federal Reserve System.


 


Section 10.24 Regulatory
Change; Taxes.


 


10.24.1             Increased
Costs. If as a result of any Regulatory Change or compliance of Lender therewith, the basis of taxation of payments to Lender or
any company Controlling Lender of the principal of or interest on the Loan is changed or Lender or the company Controlling Lender shall
be subject to (i) any tax, duty, charge or withholding of any kind with respect to this Agreement (excluding federal taxation of
the overall net income of Lender or the company Controlling Lender); or (ii) any reserve, special deposit or similar requirements
relating to any extensions of credit or other assets of, or any deposits with or other liabilities, of Lender or any company Controlling
Lender is imposed, modified or deemed applicable; or (iii) any other condition affecting loans to borrowers subject to LIBOR-based
interest rates existing or that are imposed on Lender or any company Controlling Lender and Lender determines that, by reason thereof,
the cost to Lender or any company Controlling Lender of making, maintaining or extending the Loan to Borrower is increased, or any amount
receivable by Lender or any company Controlling Lender hereunder in respect of any portion of the Loan to Borrower is reduced, in each
case by an amount deemed by Lender in good faith to be material (such increases in cost and reductions in amounts receivable being herein
called “Increased Costs”), then Lender shall provide notice thereof to Borrower and Borrower agrees to pay
to Lender upon Lender’s written request such additional amount or amounts as will compensate Lender or any company Controlling
Lender for such Increased Costs to the extent Lender determines that such Increased Costs are allocable to the Loan. If Lender requests
compensation under this Section 10.24.1, Lender shall, if requested by notice by Borrower to Lender, furnish to Borrower
a statement setting forth the basis for requesting such compensation and the method for determining the amount thereof.


 



    107


     


    

 


10.24.2             Special
Taxes. Borrower shall make all payments hereunder free and clear of and without deduction for Special Taxes. If Borrower shall be
required by law to deduct any Special Taxes from or in respect of any sum payable hereunder or under any other Loan Document to Lender,
(i) the sum payable shall be increased as may be necessary so that after making all required deductions (including deductions applicable
to additional sums payable under this Section 10.24.2) Lender receives an amount equal to the sum it would have received
had no such deductions been made, (ii) Borrower shall make such deductions, and (iii) Borrower shall pay the full amount deducted
to the relevant Governmental Authority in accordance with applicable law.


 


10.24.3             Other
Taxes. In addition, Borrower agrees to pay any present or future stamp or documentary taxes or other excise or property taxes, charges,
or similar levies which arise from any payment made hereunder, or from the execution, delivery or registration of, or otherwise with
respect to, this Agreement, the other Loan Documents, or the Loan (hereinafter referred to as “Other Taxes”).


 


Section 10.25 Assignments
and Participations. In addition to any other rights of Lender hereunder, the Loan, the Note,
the Loan Documents and/or Lender’s rights, title, obligations and interests therein may be sold, assigned, participated or otherwise
transferred by Lender and any of its successors and assigns to any Person at any time in its sole and absolute discretion, in whole or
in part, whether by operation of law (pursuant to a merger or other successor in interest) or otherwise without notice to or consent
from Borrower or any other Person. Upon such assignment, all references to Lender in this Agreement and in any Loan Document shall be
deemed to refer to such assignee or successor in interest and such assignee or successor in interest shall thereafter stand in the place
of Lender in all respects. Except as expressly permitted herein, Borrower may not assign its rights, title, interests or obligations
under this Agreement or under any of the Loan Documents.


 



    108


     


    

 


Section 10.26 Acknowledgement
and Consent to Bail-In of EEA Financial Institutions.


 


(a)      Notwithstanding
anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among the respective parties thereto,
each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Loan Document, to the extent such
liability is unsecured, may be subject to the write-down and conversion powers of an EEA Resolution Authority and agrees and consents
to, and acknowledges and agrees to be bound by:


 


  (i)           the
application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may
be payable to it by any party hereto that is an EEA Financial Institution; and


 


  (ii)          the
effects of any Bail-In Action on any such liability, including, if applicable:


 


(A)          a
reduction in full or in part or cancellation of any such liability;


 


(B)           a
conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its
parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments
of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document;
or


 


(C)           the
variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEA Resolution
Authority.


 


(b)      As
used in this Section 10.26 the following terms have the following meanings ascribed thereto: (i) “Bail-In
Action” means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect
of any liability of an EEA Financial Institution; (ii) “Bail-In Legislation” means, with respect to any
EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European
Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule;
(iii) “EEA Financial Institution” means (x) any credit institution or investment firm established
in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority; (y) any entity established in an EEA
Member Country which is a parent of an institution described in clause (x) of this definition; or (z) any financial institution
established in an EEA Member Country which is a subsidiary of an institution described in clauses (x) or (y) of this definition
and is subject to consolidated supervision with its parent; (iv) “EEA Member Country” means any of the
member states of the European Union, Iceland, Liechtenstein, and Norway or any other member state of the European Economic Area;
(v) “EEA Resolution Authority” means any public administrative authority or any person entrusted with
public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA
Financial Institution; (vi) “EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule
published by the Loan Market Association (or any successor person), as in effect from time to time; and (vii) “Write-Down
and Conversion Powers” means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such
EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and
conversion powers are described in the EU Bail-In Legislation Schedule.


 


Section 10.27 Appraisals. 
Lender may, at its option, commission one or more new and/or updated appraisals from time to time after the Closing Date; provided, however,
that Borrower shall only be required to reimburse Lender for such new and/or updated appraisal if (A) an Event of Default is continuing
or (B) such appraisal is required by applicable law or regulatory requirements.


 



    109


     


    

 


Section 10.28 Counterparts.
This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but
all of which shall together constitute one and the same instrument.


 


Section 10.29 Set-Off.
In addition to any rights and remedies of Lender provided by this Agreement and by law, Lender shall have the right in its sole discretion,
without prior notice to Borrower, any such notice being expressly waived by Borrower to the extent permitted by applicable law, upon
any amount becoming due and payable by Borrower hereunder (whether at the stated maturity, by acceleration or otherwise), to set-off
and appropriate and apply against such amount any and all deposits (general or special, time or demand, provisional or final), in any
currency, and any other credits, indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or contingent,
matured or unmatured, at any time held or owing by Lender or any Affiliate thereof to or for the credit or the account of Borrower; provided
however, Lender may only exercise such right during the continuance of an Event of Default. Lender agrees promptly to notify Borrower
after any such set-off and application made by Lender; provided that the failure to give such notice shall not affect the validity of
such set-off and application.


 


[No
Further Text On This Page]


 



    110


     


    

 


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


 


	 	LENDER:
	 	 	 
	 	DBR INVESTMENTS CO. LIMITED, a Cayman Islands corporation
	 	 	 
	 	 	 
	 	By:	/s/ Darrell L. Gustafson
	 	Name: 	Darrell L. Gustafson
	 	Title:	Managing Director
	 	 	 
	 	 	 
	 	By:	/s/ Jon Tilli
	 	Name:	Jon Tilli
	 	Title: 	Director



 


[signatures continue on following
page]


 


Loan Agreement


 



    


     


    

 


	 	BORROWER:
	 	 	 
	 	MDR FRANKLIN SQUARE, LLC, a Delaware limited liability company
	 	 	 
	 	By:	MEDALIST DIVERSIFIED HOLDINGS, L.P., a Delaware limited partnership, its Sole Member



 


	 	By: 	MEDALIST DIVERSIFIED REIT, INC., a Maryland corporation, its General Partner



 


	 	By:	/s/ William R. Elliott
	 	Name:	William R. Elliott
	 	Title:	President



 



    Ex. B-1