Exhibit 10.2


 


PROMISSORY NOTE


 


	$13,250,000.00	 	New York, New York
	 	 	November 8, 2021




 


FOR VALUE RECEIVED, MDR
FRANKLIN SQUARE, LLC, a Delaware limited liability company, as maker, having its principal place of business at 1051 East Cary Street,
Suite 601, James Center Three, Richmond, Virginia  23219 (“Borrower”), hereby unconditionally promises
to pay to the order of DBR INVESTMENTS CO. LIMITED, a Cayman Islands corporation, as lender, having an address at 1 Columbus Circle,
15th Floor, New York, New York 10019 (together with its successors and/or assigns, “Lender”), or at such other
place as the holder hereof may from time to time designate in writing, the principal sum of THIRTEEN MILLION TWO HUNDRED FIFTY THOUSAND
AND 00/100 DOLLARS ($13,250,000.00), or so much thereof as is advanced pursuant to that certain Loan Agreement dated the date hereof between
Borrower and Lender (as the same may be amended, modified, supplemented, replaced or otherwise modified from time to time, the “Loan
Agreement”), in lawful money of the United States of America, with interest thereon to be computed from the date of this
Promissory Note (this “Note”) at the Interest Rate (as defined in the Loan Agreement), and to be paid in accordance
with the terms of this Note and the Loan Agreement. All capitalized terms not defined herein shall have the respective meanings set forth
in the Loan Agreement.


 


PAYMENT TERMS


 


Borrower agrees to pay the
principal sum of this Note and interest on the unpaid principal sum of this Note and all other amounts due under the Loan Agreement and
the other Loan Documents from time to time outstanding, at the rates and at the times specified in the Loan Agreement, and the outstanding
balance of the principal sum of this Note and all accrued and unpaid interest thereon and all other amounts due under the Loan Agreement
and the other Loan Documents shall be due and payable on the Maturity Date.


 


DEFAULT AND ACCELERATION


 


The Debt shall without notice
become immediately due and payable at the option of Lender upon the happening of any Event of Default.


 


LOAN DOCUMENTS


 


This Note is secured by the
Mortgage and the other Loan Documents. All of the terms, covenants and conditions contained in the Loan Agreement, the Mortgage and the
other Loan Documents are hereby made part of this Note to the same extent and with the same force as if they were fully set forth herein.
In the event of a conflict or inconsistency between the terms of this Note and the Loan Agreement, the terms and provisions of the Loan
Agreement shall govern.


 



    


     


    

 


SAVINGS CLAUSE


 


Notwithstanding anything to
the contrary contained herein, (a) all agreements and communications between Borrower and Lender are hereby and shall automatically
be limited so that, after taking into account all amounts deemed to constitute interest, the interest contracted for, charged or received
by Lender shall never exceed the Maximum Legal Rate, (b) in calculating whether any interest exceeds the Maximum Legal Rate, all
such interest shall be amortized, prorated, allocated and spread over the full amount and term of all principal indebtedness of Borrower
to Lender, and (c) if through any contingency or event, Lender receives or is deemed to receive interest in excess of the Maximum
Legal Rate, any such excess shall be deemed to have been applied toward the payment of the principal of any and all then outstanding indebtedness
of Borrower to Lender, or if there is no such indebtedness, shall immediately be returned to Borrower.


 


NO ORAL CHANGE


 


This Note may not be modified,
amended, waived, extended, changed, discharged or terminated orally or by any act or failure to act on the part of Borrower or Lender,
but only by an agreement in writing signed by the party(ies) against whom enforcement of any modification, amendment, waiver, extension,
change, discharge or termination is sought.


 


WAIVERS


 


Borrower and all others who
may become liable for the payment of all or any part of the Debt do hereby jointly and severally waive presentment and demand for payment,
notice of dishonor, notice of intention to accelerate, notice of acceleration, protest and notice of protest and non-payment and all other
notices of any kind. No release of any security for the Debt or extension of time for payment of this Note or any installment hereof,
and no alteration, amendment or waiver of any provision of this Note, the Loan Agreement or the other Loan Documents made by agreement
between Lender and any other Person shall release, modify, amend, waive, extend, change, discharge, terminate or affect the liability
of Borrower or any other Person who may become liable for the payment of all or any part of the Debt under this Note, the Loan Agreement
or the other Loan Documents. No notice to or demand on Borrower shall be deemed to be a waiver of the obligation of Borrower or of the
right of Lender to take further action without further notice or demand as provided for in this Note, the Loan Agreement or the other
Loan Documents. If Borrower is a partnership or limited liability company, the agreements herein contained shall remain in force and be
applicable, notwithstanding any changes in the individuals or entities comprising the partnership or limited liability company, and the
term “Borrower,” as used herein, shall include any alternate or successor partnership or limited liability company, but any
predecessor partnership or limited liability company and its partners or members shall not thereby be released from any liability. If
Borrower is a corporation, the agreements contained herein shall remain in full force and be applicable, notwithstanding any changes in
the shareholders comprising, or the officers and directors relating to, the corporation, and the term “Borrower,” as used
herein, shall include any alternative or successor corporation, but any predecessor corporation shall not be relieved of liability hereunder.
(Nothing in the foregoing two sentences shall be construed as a consent to, or a waiver of, any prohibition or restriction on transfers
of interests in such partnership, limited liability company or corporation which may be set forth in the Loan Agreement, the Mortgage
or any other Loan Document.)


 



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TRANSFER


 


Upon the transfer of this
Note by Lender, Borrower hereby waiving notice of any such transfer, Lender may deliver all the collateral mortgaged, granted, pledged
or assigned pursuant to the Loan Documents, or any part thereof, to the transferee who shall thereupon become vested with all the rights
herein or under applicable law given to Lender with respect thereto, and Lender shall thereafter forever be relieved and fully discharged
from any liability or responsibility in the matter; but Lender shall retain all rights hereby given to it with respect to any liabilities
and the collateral not so transferred.


 


EXCULPATION


 


The provisions of Section 10.1
of the Loan Agreement are hereby incorporated by reference into this Note to the same extent and with the same force as if fully set forth
herein.


 


GOVERNING LAW; JURISDICTION; SERVICE OF PROCESS


 


THIS NOTE WAS NEGOTIATED
IN THE STATE OF NEW YORK, AND MADE BY BORROWER AND ACCEPTED BY LENDER IN THE STATE OF NEW YORK, AND THE PROCEEDS OF THIS NOTE 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 NOTE 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. 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 NOTE AND THIS 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.


 


ANY LEGAL SUIT, ACTION OR
PROCEEDING AGAINST LENDER OR BORROWER ARISING OUT OF OR RELATING TO THIS NOTE 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


 



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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.


 


WAIVER OF JURY TRIAL


 


BORROWER HEREBY AGREES
NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND FOREVER WAIVES ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT
THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST, WITH REGARD TO THIS NOTE, THE MORTGAGE OR THE OTHER LOAN DOCUMENTS, OR ANY CLAIM, COUNTERCLAIM
OR OTHER ACTION ARISING IN CONNECTION THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY BORROWER
AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE.
LENDER IS HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY BORROWER.


 


SUCCESSORS AND ASSIGNS


 


This Note shall be binding
upon, and shall inure to the benefit of, Borrower and Lender and their respective successors and permitted assigns. Lender shall have
the right to assign or transfer its rights under this Note in connection with any assignment of the Loan and the Loan Documents. Any assignee
or transferee of Lender shall be entitled to all the benefits afforded to Lender under this Note. Borrower shall not have the right to
assign or transfer its rights or obligations under this Note without the prior written consent of Lender, as provided in the Loan Agreement,
and any attempted assignment without such consent shall be null and void.


 



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NOTICES


 


All notices or other written
communications hereunder shall be delivered in accordance with Section 10.6 of the Loan Agreement.


 


[NO FURTHER TEXT ON THIS PAGE]


 



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IN WITNESS WHEREOF, Borrower
has duly executed this Note as of the day and year first above written.


 


	 	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



 


Promissory Note