Exhibit 10.1


 


LOAN AGREEMENT


 


Dated as of April 10, 2018


 


Between


 





	 	ARHC
HDLANCA01, LLC, ARHC NHCANGA01, LLC,


ARHC
FMMUNIN03, LLC, ARHC BMLKWCO01, LLC,


ARHC
ECMCYNC01, LLC, ARHC ECCPTNC01, LLC,


ARHC
LPELKCA01, LLC, ARHC MMTCTTX01, LLC,


ARHC
MRMRWGA01, LLC, ARHC OLOLNIL01, LLC,


ARHC
PPHRNTN01, LLC, ARHC SMERIPA01, LLC,


ARHC
AMGLNAZ02, LLC, ARHC PHNLXIL01, LLC,


ARHC
AMGLNAZ01, LLC, ARHC SFSTOGA01, LLC,


ARHC
VCSTOGA01, LLC, ARHC WLWBYMN01, LLC,


ARHC
AHPLYWI01, LLC, and ARHC PRPEOAZ03, LLC
 	 



 





as Borrower


 


and


 


KEYBANK NATIONAL ASSOCIATION,


 


as Lender


 


Loan No. 10183025


 




     


     


    

 


TABLE OF CONTENTS


 


	 	 	Page
	 	 	 
	ARTICLE I - DEFINITIONS; PRINCIPLES OF CONSTRUCTION	1
	Section 1.1	Definitions	1
	Section 1.2	Principles of Construction	32
	 	 	 
	ARTICLE II - GENERAL TERMS	34
	Section 2.1	Loan Commitment; Disbursement to Borrower	34
	2.1.1	Agreement to Lend and Borrow	34
	2.1.2	Single Disbursement to Borrower	34
	2.1.3	The Note, Security Instrument and Loan Documents	34
	2.1.4	Use of Proceeds	34
	Section 2.2	Interest Rate	34
	2.2.1	Interest Rate	34
	2.2.2	Interest Calculation	34
	2.2.3	Default Rate	35
	2.2.4	Usury Savings	35
	Section 2.3	Loan Payment	35
	Section 2.4	Prepayments	35
	Section 2.5	Intentionally Omitted	35
	Section 2.6	Release of Property	36
	2.6.1	Release of Property	36
	2.6.2	Partial Release	36
	2.6.3	Property Substitution	39
	2.6.4	Partial Release – Munster Release Parcel	45
	Section 2.7	Clearing Account/Cash Management	45
	2.7.1	Clearing Account	45
	2.7.2	Cash Management Account	47
	2.7.3	Payments Received under the Cash Management Agreement	47
	 	 	 
	ARTICLE III - INTENTIONALLY OMITTED	47
	 	 	 
	ARTICLE IV - REPRESENTATIONS AND WARRANTIES	47
	Section 4.1	Borrower Representations	47
	4.1.1	Organization	47
	4.1.2	Proceedings	48
	4.1.3	No Conflicts	48
	4.1.4	Litigation	48
	4.1.5	Agreements	48
	4.1.6	Title	49
	4.1.7	Solvency	49
	4.1.8	Full and Accurate Disclosure	50
	4.1.9	No Plan Assets	50
	4.1.10	Compliance	50
	4.1.11	Financial Information	50
	4.1.12	Condemnation	51


 




     


     


    

 


	4.1.13	Federal Reserve Regulations	51
	4.1.14	Utilities and Public Access	51
	4.1.15	Not a Foreign Person	51
	4.1.16	Separate Lots	51
	4.1.17	Assessments	51
	4.1.18	Enforceability	51
	4.1.19	No Prior Assignment	52
	4.1.20	Insurance	52
	4.1.21	Use of Property	52
	4.1.22	Certificate of Occupancy; Licenses	52
	4.1.23	Flood Zone	52
	4.1.24	Physical Condition	52
	4.1.25	Boundaries	52
	4.1.26	Leases	53
	4.1.27	Survey	53
	4.1.28	Inventory	53
	4.1.29	Filing and Recording Taxes	53
	4.1.30	Special Purpose Entity/Separateness/No Prohibited Entity/Ownership Structure	54
	4.1.31	Management Agreement	55
	4.1.32	Illegal Activity	55
	4.1.33	Intentionally Omitted	55
	4.1.34	Investment Company Act	55
	4.1.35	Embargoed Person	55
	4.1.36	Principal Place of Business; State of Organization	55
	4.1.37	Environmental Representations and Warranties	56
	4.1.38	Cash Management Account	56
	4.1.39	Ground Leases	57
	Section 4.2	Survival of Representations	57
	Section 4.3	Lender: No Plan Assets	57
	 	 	 
	ARTICLE V - BORROWER COVENANTS	57
	Section 5.1	Affirmative Covenants	57
	5.1.1	Existence; Compliance with Legal Requirements	58
	5.1.2	Taxes and Other Charges	59
	5.1.3	Litigation	59
	5.1.4	Access to Property	59
	5.1.5	Notice of Material Adverse Change	59
	5.1.6	Cooperate in Legal Proceedings	60
	5.1.7	Perform Loan Documents	60
	5.1.8	Award and Insurance Benefits	60
	5.1.9	Further Assurances	60
	5.1.10	Principal Place of Business, State of Organization	61
	5.1.11	Financial Reporting	61
	5.1.12	Business and Operations	64
	5.1.13	Title to the Property	64
	5.1.14	Costs of Enforcement	65


 




    ii 


     


    

 


	5.1.15	Estoppel Statement	65
	5.1.16	Loan Proceeds	65
	5.1.17	Intentionally Omitted	66
	5.1.18	Confirmation of Representations	66
	5.1.19	Environmental Covenants	66
	5.1.20	Leasing Matters	69
	5.1.21	Alterations	70
	5.1.22	Operation of Property	73
	5.1.23	Embargoed Person	74
	5.1.24	Ground Lease	74
	Section 5.2	Negative Covenants	79
	5.2.1	Operation of Property	79
	5.2.2	Liens	79
	5.2.3	Dissolution	79
	5.2.4	Change In Business	80
	5.2.5	Debt Cancellation	80
	5.2.6	Zoning	80
	5.2.7	No Joint Assessment	80
	5.2.8	Intentionally Omitted	80
	5.2.9	ERISA	80
	5.2.10	Transfers	81
	 	 	 
	ARTICLE VI - INSURANCE; CASUALTY; CONDEMNATION	85
	Section 6.1	Insurance	85
	Section 6.2	Casualty	89
	Section 6.3	Condemnation	90
	Section 6.4	Restoration	90
	 	 	 
	ARTICLE VII - RESERVE FUNDS	95
	Section 7.1	Required Repairs	95
	7.1.1	Deposits	95
	7.1.2	Release of Required Repair Funds	96
	Section 7.2	Tax and Insurance Escrow Fund	97
	Section 7.3	Replacements and Replacement Reserve	97
	7.3.1	Replacement Reserve Fund	97
	7.3.2	Disbursements from Replacement Reserve Account	98
	7.3.3	Performance of Replacements	99
	7.3.4	Failure to Make Replacements	99
	7.3.5	Balance in the Replacement Reserve Account	99
	Section 7.4	Rollover Reserve	99
	7.4.1	Deposits to Rollover Reserve Fund	100
	7.4.2	Disbursements from Rollover Reserve Account	100
	Section 7.5	Excess Cash Flow Reserve Fund	101
	7.5.1	Deposits to Excess Cash Flow Reserve Fund	101
	7.5.2	Release of Excess Cash Flow Reserve Funds	101
	Section 7.6	Reserve Funds, Generally	102
	Section 7.7	Ground Rent Reserve Funds	103
	7.7.1	Deposits to Ground Rent Reserve Fund	103


 




    iii 


     


    

 


	7.7.2	Disbursements from Ground Rent Reserve Fund	103
	Section 7.8	CarolinaEast Reserve Fund	103
	7.8.1	CarolinaEast Reserve Deposit	103
	7.8.2	Release of CarolinaEast Reserve Funds	103
	 	 	 
	ARTICLE VIII - DEFAULTS	104
	Section 8.1	Event of Default	104
	Section 8.2	Remedies	106
	Section 8.3	Remedies Cumulative; Waivers	108
	 	 	 
	ARTICLE IX - SPECIAL PROVISIONS	108
	Section 9.1	Securitization	108
	9.1.1	Sale of Notes and Securitization	108
	9.1.2	Securitization Costs	110
	Section 9.2	Right To Release Information	110
	Section 9.3	Exculpation	110
	Section 9.4	Matters Concerning Manager	113
	Section 9.5	Servicer	113
	Section 9.6	Lender/Servicer Loan Administration	113
	 	 	 
	ARTICLE X - MISCELLANEOUS	114
	Section 10.1	Survival	114
	Section 10.2	Intentionally Omitted	114
	Section 10.3	Governing Law	114
	Section 10.4	Modification, Waiver in Writing	115
	Section 10.5	Delay Not a Waiver	115
	Section 10.6	Notices	116
	Section 10.7	Trial by Jury	117
	Section 10.8	Headings	117
	Section 10.9	Severability	117
	Section 10.10	Preferences	117
	Section 10.11	Waiver of Notice	117
	Section 10.12	Remedies of Borrower	117
	Section 10.13	Expenses; Indemnity	118
	Section 10.14	Schedules Incorporated	119
	Section 10.15	Offsets, Counterclaims and Defenses	119
	Section 10.16	No Joint Venture or Partnership; No Third Party .Beneficiaries	119
	Section 10.17	Publicity	119
	Section 10.18	Waiver of Marshalling of Assets	120
	Section 10.19	Waiver of Counterclaim	120
	Section 10.20	Conflict; Construction of Documents; Reliance	120
	Section 10.21	Brokers and Financial Advisors	120
	Section 10.22	Prior Agreements	120
	Section 10.23	Liability	121
	Section 10.24	Certain Additional Rights of Lender (VCOC)	121
	Section 10.25	OFAC	121
	Section 10.26	Duplicate Originals; Counterparts	121
	Section 10.26	Confidentiality	122


 




    iv 


     


    

 


	ARTICLE XI – LOCAL LAW PROVISIONS	122
	Section 11.1	Inconsistencies	122
	Section 11.2	Arizona Law Provisions	122
	Section 11.3	California Law Provisions	123
	Section 11.4	Colorado Law Provisions	123
	Section 11.5	Illinois Law Provisions	123


 


SCHEDULES


 


	Schedule I	–	Rent Roll
	 	 	 
	Schedule II	–	
        Required Repairs - Deadlines for Completion

         

	Schedule III	–	Organizational Chart of Borrower
	 	 	 
	Schedule IV	–	Allocated Loan Amounts
	 	 	 
	Schedule V	–	Property Managers and Underwritten Management Fees
	 	 	 
	Schedule VI	–	
        Tenant Direction Letter Form

         

	Schedule VII	–	Disbursement Certification and Schedule


 




    v 


     


    

 


LOAN AGREEMENT


 


THIS LOAN AGREEMENT
is made as of April 10, 2018 (this “Agreement”), between KEYBANK NATIONAL ASSOCIATION, a national
banking association, having an address at 11501 Outlook, Suite 300, Overland Park, Kansas 66211 (“Lender”)
and ARHC HDLANCA01, LLC, ARHC NHCANGA01, LLC, ARHC FMMUNIN03, LLC, ARHC BMLKWCO01, LLC, ARHC ECMCYNC01, LLC, ARHC ECCPTNC01,
LLC, ARHC LPELKCA01, LLC, ARHC MMTCTTX01, LLC, ARHC MRMRWGA01, LLC, ARHC OLOLNIL01, LLC, ARHC PPHRNTN01, LLC, ARHC SMERIPA01, LLC,
ARHC AMGLNAZ02, LLC, ARHC PHNLXIL01, LLC, ARHC AMGLNAZ01, LLC, ARHC SFSTOGA01, LLC, ARHC VCSTOGA01, LLC, ARHC WLWBYMN01, LLC, ARHC
AHPLYWI01, LLC, and ARHC PRPEOAZ03, LLC, each a Delaware limited liability company, and each having its principal place of
business at 405 Park Avenue, New York, New York 10022 (individually, collectively, jointly and severally, as the context requires,
“Borrower”).


 


RECITALS:


 


A.          Borrower
desires to obtain the Loan (as hereinafter defined) from Lender.


 


B.           Lender
is willing to make the Loan to Borrower, subject to and in accordance with the terms of this Agreement and the other Loan Documents
(as hereinafter defined).


 


NOW THEREFORE, for
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:


 


ARTICLE I - DEFINITIONS; PRINCIPLES OF
CONSTRUCTION


 


Section 1.1           Definitions.
For all purposes of this Agreement, except as otherwise expressly required or unless the context clearly indicates a contrary intent:


 


“Accrual Period”
means the period commencing on and including the first (1st) day of each calendar month during the term of the Loan and ending
on and including the final calendar date of such calendar month; however, the initial Accrual Period shall commence on and include
the Closing Date and shall end on and include the final calendar date of the calendar month in which the Closing Date occurs.


 


“Action”
has the meaning set forth in Section 10.3 hereof.


 


“Additional
Insolvency Opinion” means any subsequent Insolvency Opinion.


 


“Additional
Permitted Transfer” has the meaning set forth in Section 5.2.10(f) hereof.


 


“Affiliate”
means, as to any Person, any other Person that, directly or indirectly, is in Control of, is Controlled by or is under common Control
with such Person or is a director or officer of such Person or of an Affiliate of such Person.


 




     


     


    

 


“Affiliated
Manager” means any Manager in which Borrower or Guarantor has, directly or indirectly, any material legal, beneficial
or economic interest.


 


“Agent”
means KeyBank National Association, or any successor Eligible Institution acting as Agent under the Cash Management Agreement.


 


“Allocated
Loan Amount” shall mean the portion of the principal amount of the Loan allocated to any applicable Individual Property
as set forth on Schedule IV hereof, as such amounts may be adjusted from time to time as hereinafter set forth. Notwithstanding
the foregoing or anything herein to the contrary, in the event of a Casualty or Condemnation whereby Net Proceeds (or any portion
thereof) are to be applied to the principal amount of the Debt pursuant to the terms of Article VI hereof (such Net Proceeds,
the “Applied Net Proceeds”), (a) then such Applied Net Proceeds shall be applied (1) first, to reduce the Allocated
Loan Amount of the Individual Property affected by such Casualty or Condemnation until reduced to zero and (2) second, pro
rata to reduce the Allocated Loan Amounts of each of the other Individual Properties and (b) notwithstanding the terms of the foregoing
clause (a), with respect to a Condemnation or Casualty affecting one hundred percent (100%) of an Individual Property, the Allocated
Loan Amount for such Individual Property shall be reduced to zero (such Allocated Loan Amount prior to reduction being referred
to as the “Withdrawn Allocated Amount”) and each other Allocated Loan Amount shall, if the Withdrawn Allocated
Amount exceeds the Applied Net Proceeds realized with respect to such Individual Property (such excess being referred to as the
“Proceeds Deficiency”), be increased by an amount equal to the product of (1) the Proceeds Deficiency and (2)
a fraction, the numerator of which is the applicable Allocated Loan Amount (prior to the adjustment in question) and the denominator
of which is the aggregate of all of the Allocated Loan Amounts (prior to the adjustment in question) other than the Withdrawn Allocated
Amount. Additionally, in connection with any Partial Release, the Allocated Loan Amounts for the Individual Properties shall be
adjusted as provided for in Section 2.6.2(k) hereof.


 


“Annual Budget”
means an operating budget, including all planned Capital Expenditures, for the each Individual Property prepared by Borrower in
accordance with Section 5.1.11(g) hereof for the applicable Fiscal Year or other period.


 


“Appraisal”
shall mean an appraisal prepared in accordance with the requirements of FIRREA, prepared by an independent third party appraiser
holding an MAI designation, who is state licensed or state certified if required under the laws of the state where each applicable
Individual Property is located, who meets the requirements of FIRREA and who is otherwise satisfactory in Lender’s reasonable
discretion.


 


“Approved
Annual Budget” has the meaning set forth in Section 5.1.11(g) hereof.


 


“Assignment
of Management Agreement” means, individually or collectively as the context requires, each Assignment of Management Agreement
and Subordination of Management Fees, dated as of the date hereof, among Lender, Borrower and Manager, as the same may be amended,
restated, replaced, supplemented or otherwise modified from time to time.


 




    	 	2	 



     


    

 


“Availability
Threshold” means $1,000,000.


 


“Award”
means any compensation paid by any Governmental Authority in connection with a Condemnation.


 


“Bankruptcy
Action” means with respect to any Person (a) such Person filing a voluntary petition under the Bankruptcy Code or any
other Federal or state bankruptcy or insolvency law; (b) the filing of an involuntary petition against such Person under the Bankruptcy
Code or any other Federal or state bankruptcy or insolvency law; (c) such Person filing an answer consenting in writing to 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, provided that, notwithstanding the foregoing, the delivery and/or submission of factual statements in connection
with any involuntary petition filed against a Person as required by Legal Requirements shall not constitute a Bankruptcy Action;
(d) such Person consenting in writing to or joining in an application for the appointment of a custodian, receiver, trustee, or
examiner for such Person or any portion of the Property; (e) such Person making an assignment for the benefit of creditors, or
admitting, in writing or in any legal proceeding, its insolvency or inability to pay its debts as they become due provided that,
notwithstanding the foregoing, the delivery and/or submission of factual statements in connection with any involuntary petition
filed against a Person as required by Legal Requirements shall not constitute a Bankruptcy Action.


 


“Bankruptcy
Code” means Title 11 of the United States Code, 11 U.S.C. §101, et seq., as the same may be 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 or any other Federal or state bankruptcy
or insolvency law.


 


“Borrower”
has the meaning set forth in the introductory paragraph hereto, together with its successors and permitted assigns.


 


“Business
Day” means a day upon which commercial banks are not authorized or required by law to close in New York City or such
other city designated in writing by Lender from time to time as the place for receipt of payments.


 


“Capital Expenditures”
means, for any period, the amount expended for items capitalized under GAAP (including expenditures for building improvements or
major repairs, leasing commissions and tenant improvements).


 


“CarolinaEast
Reserve Account” has the meaning set forth in Section 7.8.1 hereof.


 


“CarolinaEast
Reserve Fund” has the meaning set forth in Section 7.8.1 hereof.


 


“Cash Management
Account” has the meaning set forth in Section 2.7.2 hereof.


 


“Cash Management
Agreement” means that certain Cash Management Agreement, dated as of the date hereof, by and among Borrower, Lender and
Agent, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.


 




    	 	3	 



     


    

 


“Cash Sweep
Event” means the occurrence of: (a) an Event of Default; (b) any Bankruptcy Action of Borrower; (c) a Manager Trigger
Event; or (d) a DSCR Trigger Event.


 


“Cash Sweep
Event Cure” means:


 


(a) if the Cash Sweep
Event is caused solely by the occurrence of a DSCR Trigger Event, (i) the occurrence of a DSCR Cure, (ii) the delivery by Borrower
to Lender of the DSCR Cure – Letter of Credit in accordance with the terms hereof, or (iii) Borrower’s completion of
a DSCR Cure –Partial Prepayment in accordance with the terms hereof;


 


(b) if the Cash Sweep
Event is caused by an Event of Default, a cure of such Event of Default (which cure Lender is not obligated to accept and may reject
or accept in its discretion); or


 


(c) if the Cash Sweep Event is caused by
a Manager Trigger Event, the earlier to occur of (i) Borrower replacing such Manager with a Qualified Manager under a Replacement
Management Agreement, or (ii) the Excess Cash Flow Reserve Account contains funds equal to the then applicable Excess Cash Flow
Cap;


 


provided, however, that,
such Cash Sweep Event Cure set forth in this definition shall be subject to the following conditions, (i) no Event of Default shall
have occurred and be continuing under this Agreement or any of the other Loan Documents, (ii) a Cash Sweep Event Cure may occur
no more than a total of eight (8) times in the aggregate during the term of the Loan, and (iii) Borrower shall have paid all of
Lender’s reasonable out-of-pocket expenses incurred in connection with such Cash Sweep Event Cure including, reasonable out-of-pocket
attorney’s fees and expenses. Notwithstanding any provision in this Agreement to the contrary, in no event shall Borrower
have the right to cure any Cash Sweep Event caused by a Bankruptcy Action of Borrower.


 


“Cash Sweep
Period” means each period commencing on the occurrence of a Cash Sweep Event and continuing until the earlier of (a)
the Payment Date next occurring following the related Cash Sweep Event Cure, or (b) until payment in full of all principal and
interest on the Loan and all other amounts payable under the Loan Documents.


 


“Casualty”
has the meaning set forth in Section 6.2 hereof.


 


“Casualty
Consultant” has the meaning set forth in Section 6.4(b)(iii) hereof.


 


“Casualty
Retainage” has the meaning set forth in Section 6.4(b)(iv) hereof.


 


“Clearing
Account” has the meaning set forth in Section 2.7.1 hereof.


 


“Clearing
Account Agreement” means that certain Clearing Account - Deposit Account Control Agreement dated the date hereof among
Borrower, Lender and Clearing Bank, as the same may be amended, restated, replaced, supplemented or otherwise modified from time
to time, relating to funds deposited in the Clearing Account.


 




    	 	4	 



     


    

 


“Clearing
Bank” means the clearing bank which establishes, maintains and holds the Clearing Account, which shall be an Eligible
Institution acceptable to Lender in its reasonable discretion.


 


“Closing Date”
means the date of the funding of the Loan.


 


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


 


“Condemnation”
means 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.


 


“Condemnation
Proceeds” has the meaning set forth in Section 6.4(b) hereof.


 


“Control”
means the possession, directly or indirectly, of the power to direct or cause the direction of management, policies or activities
of a Person, whether through ownership of voting securities, by contract or otherwise. “Controlled” and “Controlling”
have correlative meanings.


 


“Crowdfunding”
means, any offer or sale of equity or debt securities of Borrower or Guarantor or any Affiliate of any of them, involving or relating
to direct or indirect interests, or any combination of direct or indirect interests, in any of the foregoing Persons, that is conducted
or proposed to be conducted via the internet or through the use of other general solicitation or advertising of the investment
opportunity to prospective investors by the issuer of such securities or an online or other funding portal in a transaction or
series of transactions intended to be exempt from the registration requirements of the Securities Act of 1933, as amended, including
but not limited to pursuant to the exemptions provided by Section 4(a)(6) thereof or Rule 506(c) promulgated thereunder, any other
similar state securities law, or any similar transaction.


 


“Current Owner”
has the meaning set forth in Section 5.2.10(f) hereof.


 


“Debt”
means the outstanding principal amount of the Loan set forth in, and evidenced by, this Agreement and the Note together with all
interest accrued and unpaid thereon and all other sums (including any Prepayment Consideration (as defined in the Note)) due to
Lender in respect of the Loan under the Note, this Agreement, the Security Instrument or any other Loan Document.


 


“Debt Service”
means, with respect to any particular period of time, the scheduled interest payments due under this Agreement and the Note.


 


“Debt Service
Coverage Ratio” means a ratio for the applicable period in which:


 


(a)          the
numerator is the Net Operating Income (excluding interest on credit accounts and using annualized operating expenses for any recurring
expenses not paid monthly (e.g., Taxes and Insurance Premiums)) for such period as set forth in the statements required hereunder,
without deduction for (i) actual management fees incurred in connection with the operation of the Property, or (ii) amounts paid
to the Reserve Funds, less (A) management fees equal to the greater of (1) assumed management fees of 3.48% of Gross Income from
Operations and (2) the actual management fees incurred, and (B) annual Replacement Reserve Fund contributions equal to $0.31 per
square foot of gross leasable area at the Property, and (C) annual Rollover Reserve Fund contributions equal to $1.69 per square
foot of gross leasable area at the Property; and


 




    	 	5	 



     


    

 


(b)          the
denominator is the aggregate amount of Debt Service for such period.


 


“Debt Service
Coverage Ratio as of the Closing Date” means 1.92 to 1.00.


 


“Debt Yield”
means a ratio in which:


 


(a)          the
numerator is the same numerator that would be calculated in connection with the definition of Debt Service Coverage Ratio herein;
and


 


(b)          the
denominator is the outstanding balance of the Loan as of the date of calculation.


 


“Debt Yield
as of the Closing Date” means 8.82%.


 


“Default”
means 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 be an Event of Default.


 


“Default Rate”
means, with respect to the Loan, a rate per annum equal to the lesser of (a) the Maximum Legal Rate or (b) four percent (4%) above
the Interest Rate.


 


“Disbursement
Certification and Schedule” means a certificate in the form attached hereto as Schedule VII, delivered to Lender by Borrower
which is signed by an authorized officer of Borrower or the general partner, managing member or sole member of Borrower, as applicable.


 


“Disclosure
Documents” means, collectively and as applicable, any offering circular, prospectus, prospectus supplement, private placement
memorandum or other offering document, in each case, in connection with a Securitization.


 


“DSCR Cure”
means the achievement of a Debt Service Coverage Ratio of 1.55 to 1.00 or greater for two (2) consecutive quarters based upon the
trailing three (3) month period immediately preceding the date of determination.


 




    	 	6	 



     


    

 


“DSCR Cure
– Letter of Credit” means an unconditional irrevocable letter of credit (together with any related documentation
reasonably required by Lender, the “Letter of Credit”) in an amount that, if the same were applied as a partial
prepayment (including any required Prepayment Consideration) of the Loan, would result in the achievement of a Debt Service Coverage
Ratio of 1.55 to 1.00 or greater for the trailing three (3) month period immediately preceding the date of determination, issued
by an issuer and otherwise in form and substance reasonably acceptable to Lender, Lender agreeing that KeyBank National Association
is an acceptable issuer of such a letter of credit. The DSCR Cure – Letter of Credit (a) shall be obtained by an “applicant”
that is not the Borrower, (b) shall provide that it is transferable by Lender and its successors at no cost to them, and that the
issuer of such a letter of credit will look solely to parties other than Lender for any transfer costs or fees, (c) shall provide
for partial draws thereon, (d) shall be payable by sight draft only and shall not include any requirements or conditions for draws
other than Lender’s demand therefore, and (e) shall have a term expiring not earlier than thirteen (13) months from the date
of its issuance. Not less than thirty (30) days prior to the expiration date of the DSCR Cure – Letter of Credit then held
by Lender hereunder, Borrower shall deposit with Lender a replacement DSCR Cure – Letter of Credit complying with the requirements
of this paragraph or provide Lender with evidence reasonably satisfactory to Lender that the expiration date of the existing DSCR
Cure – Letter of Credit has been extended an additional twelve (12) months. Borrower’s failure to provide to Lender
such replacement or extension as required by the immediately prior sentence shall allow Lender to draw the entire remaining proceeds
thereof and deposit the same in the Excess Cash Flow Reserve Account. The DSCR Cure – Letter of Credit and all proceeds thereof
shall be deemed part of the Reserve Funds, and shall be held in escrow by Lender according to the terms of this Agreement. Borrower
will pay all costs associated with the initial issuance, any modification or re-issuance of the DSCR Cure – Letter of Credit,
now or in the future, in connection with any transfer of the Loan by Lender, in connection with any Securitization or otherwise.
Upon such transfer, Borrower agrees that Lender is released from all liability in respect of the DSCR Cure – Letter of Credit,
and that Borrower shall look solely to the transferee with respect to all matters relating to the DSCR Cure – Letter of Credit.
In the event that a DSCR Cure occurs during a period wherein Lender is in possession of the DSCR Cure – Letter of Credit,
Lender will promptly return the DSCR Cure – Letter of Credit to Borrower.


 


“DSCR Cure
– Partial Prepayment” means a partial prepayment of the Loan in accordance with Section 9 of the Note in an amount
(including any required Prepayment Consideration) that results in a reduction of the principal balance of the Loan sufficient to
achieve a Debt Service Coverage Ratio of 1.55 to 1.00 for the trailing three (3) month period immediately preceding the date of
determination.


 


“DSCR Trigger
Event” means, that as of the date of determination, the Debt Service Coverage Ratio based on the trailing three (3) month
period immediately preceding the date of such determination is less than 1.55 to 1.00.


 


“Eligible
Account” means a separate and identifiable account from all other funds held by the holding institution that is either
(a) an account or accounts maintained with a federal or state-chartered depository institution or trust company which complies
with the definition of Eligible Institution or (b) a segregated trust account or accounts maintained with a federal or state chartered
depository institution or trust company acting in its fiduciary capacity which, in the case of a state chartered depository institution
or trust company, is subject to regulations substantially similar to 12 C.F.R. §9.10(b), having in either case a combined
capital and surplus of at least $50,000,000.00 and subject to supervision or examination by federal and state authority. An Eligible
Account will not be evidenced by a certificate of deposit, passbook or other instrument.


 




    	 	7	 



     


    

 


“Eligible
Institution” means KeyBank National Association or 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 “F-1+” 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 “AA-” by Fitch and S&P and “Aa3” by Moody’s).


 


“Embargoed
Person” means any person, entity or government subject to trade restrictions under U.S. law, including The USA PATRIOT
Act (including the anti terrorism provisions thereof), the International Emergency Economic Powers Act, 50 U.S.C. §§
1701, et seq., The Trading with the Enemy Act, 50 U.S.C. App. 1 et seq., and any Executive Orders or regulations promulgated thereunder
including those related to Specially Designated Nationals and Specially Designated Global Terrorists, with the result that the
investment in Borrower or Guarantor, as applicable (whether directly or indirectly), is prohibited by law or the Loan made by the
Lender is in violation of law.


 


“Emergency
Expenses” means an expense which, in Borrower’s good faith judgment is necessary to (a) prevent an immediate threat
to the health, safety or welfare of any person in the immediate vicinity of the Property, (b) prevent immediate material damage
or material loss to the Property, (c) avoid the suspension of any necessary service in or to any portion of the Property, or (d)
avoid criminal liability or material civil liability on the part of Borrower with respect to activities at the Property or pursuant
to this Agreement or the other Loan Documents.


 


“Environmental
Indemnity” means 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, as the same may be amended, restated, replaced, supplemented or
otherwise modified from time to time.


 


“Environmental
Law” means any applicable federal, state and local laws, statutes, ordinances, rules and regulations, as well as common
law, now or in the future relating to protection of human health or the environment, relating to Hazardous Substances, or relating
to liability for or costs of Remediation or prevention of Releases of Hazardous Substances. Environmental Law includes the following
statutes, as amended, any successor thereto, and any regulations promulgated pursuant thereto, and any state or local corollary
statutes, ordinances, rules and regulations: the Comprehensive Environmental Response, Compensation and Liability Act; the Emergency
Planning and Community Right-to-Know Act; the Hazardous Substances Transportation Act; the Resource Conservation and Recovery Act
(including Subtitle I relating to underground storage tanks); the Solid Waste Disposal Act; the Clean Water Act; the Clean Air
Act; the Toxic Substances Control Act; the Safe Drinking Water Act; the environmental provisions of the Occupational Safety and
Health Act; the Federal Water Pollution Control Act; the Federal Insecticide, Fungicide and Rodenticide Act; the Endangered Species
Act; the National Environmental Policy Act; and the environmental provisions of the River and Harbors Appropriation Act. Environmental
Law also includes any applicable federal, state and local laws, statutes, ordinances, rules and regulations, as well as common
law, now or in the future: conditioning transfer of property upon a negative declaration or other approval of a governmental authority
of the environmental condition of the Property; requiring notification or disclosure of Releases of Hazardous Substances or other
environmental condition of the Property to any governmental authority or other Person, whether or not in connection with transfer
of title to or interest in property; or imposing conditions or requirements relating to the Hazardous Substances in connection
with environmental permits or other environmental authorization for lawful activity with respect to the Property.


 




    	 	8	 



     


    

 


“Environmental
Liens” has the meaning set forth in Section 5.1.19 hereof.


 


“Environmental
Report” has the meaning set forth in Section 4.1.37 hereof.


 


“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated and the
rulings issued thereunder.


 


“Event of
Default” has the meaning set forth in Section 8.1(a) hereof.


 


“Excess Cash
Flow” has the meaning set forth in the Cash Management Agreement.


 


“Excess Cash
Flow Reserve Account” has the meaning set forth in Section 7.5.1 hereof.


 


“Excess Cash
Flow Cap” has the meaning set forth in Section 7.5.1 hereof.


 


“Excess Cash
Flow Reserve Fund” has the meaning set forth in Section 7.5.1 hereof.


 


“Extraordinary
Expense” has the meaning set forth in Section 5.1.11(h) hereof.


 


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


 


“Fitch”
means Fitch, Inc.


 


“Foreclosure
Sale” has the meaning set forth in Section 9(c) of the Note.


 


“GAAP”
means generally accepted accounting principles in the United States of America as of the date of the applicable financial report.


 


“Governing
State” has the meaning set forth is Section 10.3 hereof.


 


“Governmental
Authority” means any court, board, agency, commission, office or other authority of any nature whatsoever for any governmental
unit (foreign, federal, state, county, district, municipal, city or otherwise) whether now or hereafter in existence having jurisdiction
over Borrower or the applicable Individual Property.


 




    	 	9	 



     


    

 


“Gross Income
from Operations” means, during any period, all regular and recurring income as reported on the financial statements delivered
by Borrower in accordance with this Agreement, computed in accordance with GAAP, derived from the ownership and operation of the
Property from whatever source during such period, including (i) Rents from Tenants that are in occupancy and paying contractual
rent without right of offset or credit, (ii) utility charges, (iii) escalations, (iv) forfeited security deposits, (v) interest
on credit accounts, (vi) service fees or charges, (vii) license fees, (viii) parking fees, (ix) rent concessions or credits, (x)
income from vending machines, (xi) business interruption or other loss of income or rental insurance proceeds, (xii) other required
pass-throughs and (xiii) interest on Reserve Funds, if any, but excluding (i) Rents from month-to-month Tenants, Tenants
during a free-rent period, or Tenants that are the subject of any Bankruptcy Action, (ii) sales, use and occupancy or other taxes
on receipts required to be accounted for by Borrower to any Governmental Authority, (iii) refunds and uncollectible accounts, (iv)
sales of furniture, fixtures and equipment, (v) Insurance Proceeds (other than business interruption or other loss of income
or rental insurance), (vi) Awards (other than as a result of a temporary Taking), (vii) unforfeited security deposits, (viii) utility
and other similar deposits, and (ix) any disbursements to Borrower from the Reserve Funds, if any (provided, however, that Gross
Income from Operations shall include any Reserve Funds disbursements that are intended to be in substitution of Rent that would
be payable by any Tenant during any period where such Tenant does not have the obligation to pay Rent under its Lease). Gross income
shall not be diminished as a result of the Security Instrument or the creation of any intervening estate or interest in the Property
or any part thereof.


 


“Ground Lease”
means, individually or collectively, as the context requires, the following leases that exist as of the closing of the Loan, together
with any ground lease evidencing a Borrower’s leasehold interest in a Substitution Property added to the Property pursuant
to a completed Substitution:


 


(a)          the
Ground Lease Agreement dated August 1, 2016 (as amended, the “Arrowhead I Ground Lease”), between VHS of Arrowhead,
Inc., a Delaware corporation d/b/a Arrowhead Community Hospital and Medical Center (the “Arrowhead I Lessor”),
as ground lessor, and PMB Arrowhead #1 LLC, a Delaware limited liability company (predecessor to ARHC AMGLNAZ02, LLC, a Delaware
limited liability company), as ground lessee, record notice of which was given pursuant to the Notice of Ground Lease Agreement
dated August 1, 2006 and recorded on August 1, 2006 as instrument number 06-1026804 in the official records of Maricopa County,
Arizona;


 


(b)          the
Amended and Restated Ground Lease Agreement dated August 1, 2016 (as amended, the “Arrowhead II Ground Lease”),
between VHS of Arrowhead, Inc., a Delaware corporation d/b/a Arrowhead Community Hospital and Medical Center (the “Arrowhead
II Lessor”), as ground lessor, and AMPII, L.L.C., an Arizona limited liability company (predecessor to ARHC AMGLNAZ01,
LLC, a Delaware limited liability company), as ground lessee, record notice of which was given pursuant to the Assignment of Ground
Lease Agreement recorded July 14, 2006 as instrument number 20060944206 in the official records of Maricopa County, Arizona; and/or


 


(c)          the
Ground Lease dated April 27, 2011 (as amended, the “Presence Ground Lease”), between 24 North New Lennox, LLC,
an Illinois limited liability company (the “Presence Lessor”), as ground lessor, and New Lenox Investors, LLLP,
a Florida limited liability limited partnership (predecessor to ARHC PHNLXIL01, LLC, a Delaware limited liability company), as
ground lessee, record notice of which was given pursuant to the Memorandum of Ground Lease dated April 27, 2011 and recorded April
28, 2011 as document number R2011041270 in the official records of Will County, Illinois.


 




    	 	10	 



     


    

 


“Ground Lease
Property” means the real and personal property demised to Borrower pursuant to a Ground Lease.


 


“Ground Lessor”
means, individually or collectively, as the context requires, the Arrowhead I Lessor, the Arrowhead II Lessor and/or the Presence
Lessor.


 


“Ground Rent”
shall mean any rent, additional rent or other charge payable by Borrower under any Ground Lease.


 


“Ground Rent
Reserve Account” shall have the meaning set forth in Section 7.7.1 hereof.


 


“Ground Rent
Reserve Fund” shall have the meaning set forth in Section 7.7.1 hereof.


 


“Ground Rent
Reserve Monthly Deposit” shall have the meaning set forth in Section 7.7.1 hereof.


 


“Guarantor”
means Healthcare Trust Operating Partnership, L.P., a Delaware limited partnership.


 


“Guaranty”
means that certain Guaranty Agreement, dated as of the date hereof, executed and delivered by Guarantor in connection with the
Loan to and for the benefit of Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from
time to time.


 


“Hazardous
Substances” means any and all substances (whether solid, liquid or gas) defined, listed, or otherwise classified as pollutants,
hazardous wastes, hazardous substances, hazardous materials, extremely hazardous wastes, or words of similar regulatory effect
under any Environmental Laws, including petroleum and petroleum products, asbestos and asbestos-containing materials, polychlorinated
biphenyls, lead, radon, radioactive materials, flammables, explosives, toxic mold or microbial matter and mycotoxins, but excluding
substances of kinds and in amounts ordinarily and customarily used or stored in similar properties for the purpose of cleaning
or other maintenance or operations and otherwise in compliance with all Environmental Laws.


 


“Immediate
Family Member” has the meaning set forth in Section 5.2.10(f).


 


“Improvements”
means, individually or collectively (as the context requires), the “Improvements” as defined in each applicable Security
Instrument.


 


“Indebtedness”
of a Person, at a particular date, means the sum (without duplication) at such date of (a) all indebtedness or liability of such
Person (including amounts for borrowed money and indebtedness in the form of mezzanine debt or preferred equity); (b) obligations
evidenced by bonds, debentures, notes, or other similar instruments; (c) obligations for the deferred purchase price of property
or services (including trade obligations); (d) obligations under letters of credit; (e) obligations under acceptance facilities;
(f) all guaranties, endorsements (other than for collection or deposit in the ordinary course of business) and other contingent
obligations to purchase, to provide funds for payment, to supply funds, to invest in any Person or entity, or otherwise to assure
a creditor against loss; and (g) obligations secured by any Liens, whether or not the obligations have been assumed (other than
the Permitted Encumbrances).


 




    	 	11	 



     


    

 


“Indemnified
Liabilities” has the meaning set forth in Section 10.13(b) hereof.


 


“Indemnified
Parties” means Lender, any Affiliate of Lender that has filed any registration statement relating to the Securitization
or has acted as the sponsor or depositor in connection with the Securitization, any Affiliate of Lender that acts as an underwriter,
placement agent or initial purchaser of Securities issued in the Securitization, any other co-underwriters, co placement agents
or co initial purchasers of Securities issued in the Securitization, and each of their respective officers, directors, partners,
employees, representatives, agents and Affiliates and each Person or entity who Controls any such Person within the meaning of
Section 15 of the Securities Act of 1933 as amended or Section 20 of the Security Exchange Act of 1934 as amended, any Person who
is or will have been involved in the origination of the Loan, any Person who is or will have been involved in the servicing of
the Loan secured hereby, any Person in whose name the encumbrance created by the Security Instrument is or will have been recorded,
and including any successors by merger, consolidation or acquisition of all or a substantial portion of Lender’s assets and
business).


 


“Independent
Director” means a natural Person who (a) is not at the time of initial appointment, or at any time while serving in such
capacity, and is not, and has never been, and shall not while serving as Independent Director be: (i) a stockholder, director (with
the exception of serving as the Independent Director of Borrower), officer, employee, partner, member (other than a “special
member” or “springing member”), manager, attorney or counsel of Borrower, equity owners of Borrower or Guarantor
or any Affiliate of Borrower or Guarantor; (ii) a customer, supplier or other person who derives any of its purchases or revenues
from its activities with Borrower or Guarantor, equity owners of Borrower or Guarantor or any Affiliate of Borrower or Guarantor;
(iii) a Person Controlling or under common Control with any such stockholder, director, officer, employee, partner, member, manager,
attorney, counsel, equity owner, customer, supplier or other Person; or (iv) a member of the immediate family of any such stockholder,
director, officer, employee, partner, member, manager, attorney, counsel, equity owner, customer, supplier or other Person and
(b) has (i) prior experience as an independent director or independent manager for a corporation, a trust or limited liability
company whose charter documents required the unanimous consent of all independent directors or independent managers thereof before
such corporation, trust or limited liability company could consent to the institution of bankruptcy or insolvency proceedings against
it or could file a petition seeking relief under any applicable federal or state law relating to bankruptcy and (ii) at least three
years of employment experience with one or more nationally-recognized companies that provides, inter alia, professional
independent directors or independent managers in the ordinary course of their respective business to issuers of securitization
or structured finance instruments, agreements or securities or lenders originating commercial real estate loans for inclusion in
securitization or structured finance instruments, agreements or securities (a “Professional Independent Director”)
and is at all times during his or her service as an Independent Director of Borrower an employee of such a company or companies.
A natural Person who satisfies the foregoing definition except for being (or having been) the independent director or independent
manager of a “special purpose entity” affiliated with Borrower (provided such affiliate does not or did not own a direct
or indirect equity interest in an Borrower) shall not be disqualified from serving as an Independent Director, provided that such
natural Person satisfies all other criteria set forth above and that the fees such individual earns from serving as independent
director or independent manager of affiliates of Borrower or in any given year constitute in the aggregate less than five percent
(5%) of such individual’s annual income for that year. A natural Person who satisfies the foregoing definition other than
subparagraph (a)(ii) shall not be disqualified from serving as an Independent Director of Borrower if such individual is a Professional
Independent Director and such individual complies with the requirements of the previous sentence.


 




    	 	12	 



     


    

 


“Individual
Property” shall mean (a) the Ground Lease Property and (b) each parcel of real property, the Improvements thereon and
all personal property now or hereafter owned by a Borrower and encumbered by the applicable Security Instrument, together with
all rights pertaining to such property and Improvements, as more particularly described in the granting clauses of the applicable
Security Instrument and referred to therein as the “Property.” Such parcels of individual real property are listed
below, along with their respective Borrower owners:


 


ARHC HDLANCA01, LLC


High Desert Medical Group MOB,
43839 N. 15th Street, West Lancaster, CA 93534


 


ARHC NHCANGA01, LLC


Northside Hospital MOB, 320 Hospital
Road, Canton, GA 30114


 


ARHC FMMUNIN03, LLC


761 Building, 761 45th Street,
Munster, IN 46321


 


ARHC AMGLNAZ02, LLC


Arrowhead Medical Plaza I, 6525
West Sack Drive, Glendale, AZ 85308


 


ARHC AMGLNAZ01, LLC


Arrowhead Medical Plaza II, 18700
North 64th Drive, Glendale, AZ 85308


 


ARHC BMLKWC001, LLC


Belmar Medical Building, 8015 W.
Alameda Avenue, Lakewood, CO 80226


 


ARHC ECMCYNC01, LLC


East Coast Square North, 4252 Arendell
Street, Morehead City, NC 28557


 


ARHC ECCPTNC01, LLC


East Coast Square West, 1165 Cedar
Point Boulevard, Cedar Point, NC 28584


 


ARHC LPELKCA01, LLC


Laguna Professional Center, 9390-9394
Big Horn Boulevard, Elk Grove, CA 95758


 


ARHC MMTCTTX01, LLC


Mainland Medical Arts Pavilion,
7111 Medical Center Drive, Texas City, TX 77591


 


ARHC PRPEOAZ03, LLC


Medical Center III, 13260 North
94th Drive, Peoria, AZ 85381


 




    	 	13	 



     


    

 


ARHC WLWBYMN01, LLC


Woodlake Office Center, 2090 Woodwinds
Drive, Woodbury, MN 55125


 


ARHA MRMRWGA01, LLC


Morrow Medical Center, 1000 Corporate
Center Drive, Morrow, GA 30260


 


ARHC OLOLNIL01, LLC


Oak Lawn Medical Center, 10837
South Cicero Avenue, Oak Lawn, IL 60453


 


ARHC PPHRNTN01, LLC


Physicians Plaza of Roane County,
1855 Tanner Way, Harriman, TN 37748


 


ARHC PHNLXIL01, LLC


Presence Healing Arts Pavilion,
410 East Lincoln Highway, New Lenox, IL 60451


 


ARHC SMERIPA01, LLC


Sassafras Medical Building, 1910
Sassafras Street, Erie, PA 16502


 


ARHC SFSTOGA01, LLC


Stockbridge Family Medical, 3579
Highway 138 West, Stockbridge, GA 30281


 


ARHC VCSTOGA01, LLC


Village Center Parkway, 200 Village
Center Parkway, Stockbridge, GA 30281


 


ARHC AHPLYWI01, LLC


Aurora Healthcare Center, 2600
Kiley Way, Plymouth, WI 53073


 


“Initial Interest Payment Per Diem”
has the meaning set forth in the Loan Terms Table of the Note.


 


“Insolvency
Opinion” means that certain non-consolidation opinion letter dated the date hereof delivered by Duane Morris LLP in connection
with the Loan.


 


“Institutional
Controls” means any legal or physical restrictions or limitations on the use of, or access to, the Property to eliminate
or minimize potential exposures to any Hazardous Substance, to prevent activities that could reasonably be expected to interfere
with the effectiveness of any Remediation, or to ensure maintenance of a level of risk to human health or the environment, including
physical modifications to the Property such as slurry walls, capping, hydraulic controls for ground water, restrictive covenants,
environmental protection easements, or property use limitations.


 


“Insurance
Premiums” has the meaning set forth in Section 6.1(b) hereof.


 


“Insurance
Proceeds” has the meaning set forth in Section 6.4(b) hereof.


 


“Interest
Rate” means, as the context may require, for Note A-1 or Note A-2, the “Interest Rate” specified in the Loan
Terms Table of such Note.


 


“Land”
means, individually or collectively (as the context requires), the “Land” as defined in each applicable Security Instrument.


 




    	 	14	 



     


    

 


“Lease”
means, with the exception of each Ground Lease, any lease, sublease or subsublease, letting, license, concession or other agreement
(whether written or oral and whether now or hereafter in effect), in each case to which Borrower is a party, 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 by or
on behalf of Borrower, and (a) every modification, amendment or other agreement relating to such lease, sublease, subsublease,
or other agreement entered into in connection with such lease, sublease, subsublease, or other agreement and (b) every guarantee
of the performance and observance of the covenants, conditions and agreements to be performed and observed by the other party thereto.


 


“Legal Requirements”
means, all federal, state, county, municipal and other governmental statutes, laws, rules, orders, regulations, ordinances, judgments,
decrees and injunctions of Governmental Authorities related to 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, and all permits, licenses and authorizations
and regulations relating thereto.


 


“Lender”
has the meaning set forth in the introductory paragraph hereto, together with its successors and assigns.


 


“Lien”
means, any mortgage, deed of trust, deed to secure debt, indemnity deed of trust, lien, pledge, hypothecation, assignment, security
interest, or any other encumbrance, charge or transfer of, on or affecting Borrower, the Property, any portion thereof or any interest
therein, including any conditional sale or other title retention agreement, any financing lease having substantially the same economic
effect as any of the foregoing, the filing of any financing statement, and mechanic’s, materialmen’s and other similar
liens and encumbrances.


 


“Liquid Assets”
shall mean, to the extent owned individually, free of all security interests, liens, pledges, charges or any other encumbrance,
assets in the form of cash, cash equivalents, obligations of (or fully guaranteed as to principal and interest by) the United States
or any agency or instrumentality thereof (provided the full faith and credit of the United States supports such obligation or guarantee),
certificates of deposit (with a maturity of two (2) years or less) issued by a commercial bank having net assets of not less than
$500 million, marketable securities listed and traded on a recognized stock exchange or traded over the counter and listed in the
National Association of Securities Dealers Automatic Quotations, or liquid debt instruments that have a readily ascertainable value
and are regularly traded in a recognized financial market.


 


“Liquid Assets
Threshold” means Liquid Assets having a market value of at least $5,000,000.00.


 


“Loan”
means the loan in the Original Principal Amount made by Lender to Borrower pursuant to this Agreement.


 


“Loan Documents”
means, collectively, this Agreement, the Note, the Security Instrument, the Environmental Indemnity, the Assignment of Management
Agreement, the Guaranty, the Clearing Account Agreement, the Cash Management Agreement, and all other documents executed or delivered
by Borrower or Guarantor in connection with the Loan.


 




    	 	15	 



     


    

 


“Loan to Value
Ratio” shall mean, as of the date of its calculation, the ratio of (i) the sum of the outstanding principal amount of
the Loan as of the date of such calculation to (ii) the fair market value of all applicable Individual Properties, as determined,
in Lender’s reasonable discretion, by any commercially reasonable method permitted to a REMIC Trust.


 


“Management
Agreement” means individually or collectively (as the context may require), each management agreement entered into by
and between Borrower and Manager, pursuant to which Manager is to provide management and other services with respect to the Property
or any portion thereof, or, if the context requires, a Qualified Manager who is managing the Property in accordance with the terms
and provisions of this Agreement pursuant to a Replacement Management Agreement.


 


“Manager”
means with respect to each Individual Property, the Person associated therewith as set forth on Schedule V hereof, or, if
the context requires, a Qualified Manager who is managing the Property or any portion thereof in accordance with the terms and
provisions of this Agreement pursuant to a Replacement Management Agreement.


 


“Manager Trigger
Event” means the date 60 days following the occurrence of a Bankruptcy Action of a Manager if Borrower has not replaced
such Manager with a Qualified Manager under a Replacement Management Agreement within such 60-day period.


 


“Material
Action” means to consolidate or merge Borrower with or into any Person, or sell all or substantially all of the assets
of Borrower, or to institute proceedings to have Borrower be adjudicated bankrupt or insolvent, or consent to the institution of
bankruptcy or insolvency proceedings against Borrower or file a petition seeking, or consent to, reorganization or relief with
respect to Borrower under any applicable federal or state law relating to bankruptcy, or consent to the appointment of a receiver,
liquidator, assignee, trustee, sequestrator (or other similar official) of Borrower or a substantial part of its property, or make
any assignment for the benefit of creditors of Borrower, or admit in writing Borrower’s inability to pay its debts generally
as they become due (unless otherwise required by Legal Requirements), or take action in furtherance of any such action (unless
otherwise required by Legal Requirements), or, to the fullest extent permitted by law, dissolve or liquidate Borrower.


 


“Maturity
Date” means May 1, 2028, or such other date on which the final payment of principal of the Note becomes due and payable
as therein or herein provided, whether at such stated maturity date, by declaration of acceleration, or otherwise.


 


“Maximum Legal
Rate” has the meaning set forth in Section 7 of the Note.


 


“Monthly Debt
Service Payment Amount” has the meaning, individually and collectively, as the context may require, set forth in Note
A-1 and/or Note A-2.


 


“Moody’s”
means Moody’s Investors Service, Inc.


 


“Munster Release
Parcel” means the approximately 1,200.5 square feet portion (located at the corner of 45th Street and Calumet Avenue)
of the Individual Property located at 761 45th Street, Munster, IN 46321, that is the subject of a pending condemnation action
(Cause No. 45D10706P100064, Lake Circuit Superior Court) by the Town of Munster, as disclosed in writing by Borrower to Lender
in connection with the closing of the Loan.


 




    	 	16	 



     


    

 


“Net Cash
Flow” means, with respect to the Property for any period, the amount obtained by subtracting Operating Expenses and Capital
Expenditures for such period from Gross Income from Operations for such period.


 


“Net Operating
Income” means the amount obtained by subtracting Operating Expenses from Gross Income from Operations.


 


“Net Proceeds”
has the meaning set forth in Section 6.4(b) hereof.


 


“Net Proceeds
Deficiency” has the meaning set forth in Section 6.4(b)(vi) hereof.


 


“Net Worth”
shall mean, as of a given date, as to any Person, (i) such Person’s total assets (exclusive of the Property) as of such date,
less (ii) such Person’s total liabilities as of such date (exclusive of the Debt), determined in accordance with GAAP.


 


“Net Worth
Threshold” means a Net Worth of at least $100,000,000.00.


 


“Non-Discretionary
Expenses” means any non-discretionary expense required for the Property, including, without limitation, any expense which,
in Borrower’s good faith judgment is necessary to (a) comply with any of the material obligations of the Borrower as landlord
under any Lease, (b) comply with any material agreements, encumbrances or other instruments affecting the Property with respect
to which the failure to comply could reasonably be expected to have a material adverse effect on Borrower or the Property, (c)
comply with any other material obligations of Borrower under material agreements to which Borrower is a party (including, without
limitation, under any Management Agreement) with respect to which the failure to comply could reasonably be expected to have a
material adverse effect on Borrower or the Property, (d) pay Taxes, rent under any Ground Lease or Emergency Expenses, (e) maintain
insurance for the Property and Borrower as required under Section 6.1, or (f) pay utility bills for the Property as and
when due and payable.


 


“Note”
means individually and collectively, as the context may require, Note A-1 and/or Note A-2.


 


“Note A-1”
means that certain Promissory Note A-1, dated the date hereof, in the principal amount of $77,155,000.00, made by Borrower in favor
of Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.


 


“Note A-2”
means that certain Promissory Note A-2, dated the date hereof, in the principal amount of $41,545,000.00, made by Borrower in favor
of Lender, as the same may be amended, restated, replaced or otherwise modified from time to time.


 


“OFAC”
has the meaning set forth in Section 10.25 hereof.


 




    	 	17	 



     


    

 


“Officer’s
Certificate” means a certificate delivered to Lender by Borrower which is signed by an authorized officer of Borrower
or the general partner, managing member or sole member of Borrower, as applicable.


 


“Operating
Expenses” means the total of all expenditures, computed in accordance with GAAP, of whatever kind relating to the operation,
maintenance and management of the Property that are incurred on a regular monthly or other periodic basis, including, ground rent,
utilities, ordinary repairs and maintenance, insurance, license fees, property taxes and assessments, advertising expenses, management
fees, payroll and related taxes, computer processing charges, operational equipment or other lease payments as approved by Lender
in its reasonable discretion, and other similar costs, but excluding depreciation and other non-cash charges, Debt Service, Capital
Expenditures and contributions to the Reserve Funds.


 


“Original
Principal Amount” means $118,700,000.00.


 


“Other Charges”
means all ground rents (other than any Ground Rent), 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 or any part thereof,
now or hereafter levied or assessed or imposed against the Property or any part thereof.


 


“Other Obligations”
has the meaning as set forth in the Security Instrument.


 


“Outstanding
Principal Balance” or “OPB” means the portion of the Original Principal Amount that remains outstanding
from time to time.


 


“Partial Release”
shall have the meaning set forth in Section 2.6.2 hereof.


 


“Partial Release
Notice Date” shall have the meaning set forth in Section 2.6.2 hereof.


 


“Payment Date”
means the first (1st) day of each calendar month during the term of the Loan.


 


“Permitted
Encumbrances” means, with respect to each Individual Property, collectively, (a) the Liens and security interests created
by the Loan Documents, (b) all Liens, encumbrances and other matters disclosed in the applicable Title Insurance Policy, (c) Liens,
if any, for Taxes imposed by any Governmental Authority not yet due or delinquent or being contested in accordance with the Loan
Document, (d) mechanic’s or materialmen’s liens, if any being contested in good faith and by appropriate proceedings
in accordance with the Loan Documents, (e) rights of existing and future tenants pursuant to Leases entered into in accordance
with this Agreement, (f) liens securing assessments or charges payable to a property owner association or similar entity, which
assessments are not yet due or delinquent, (g) liens relating to equipment financing which are incurred in the ordinary course
of business in connection with the ownership of the Property in an amount not to exceed $1,000,000.00, provided, however, that
Borrower shall not enter into any equipment financing arrangement with respect to any equipment that is necessary and material
to the operating of any of the Property, (h) bankers’ liens, rights of setoff and other similar liens existing solely with
respect to cash and other investments on deposit in one or more accounts maintained by or on behalf of Borrower, in each case granted
in the ordinary course of business in favor of the bank or banks with which such accounts are maintained, solely securing amounts
owing to such bank with respect to cash management and operating account arrangements, and (i) such other title and survey exceptions
as Lender has approved or may approve in writing in Lender’s reasonable discretion, which Permitted Encumbrances, individually
or in the aggregate, do not materially interfere with the value, current use or operation of the Property or the security intended
to be provided by the Security Instrument or with the current ability of the Property to generate Net Cash Flow sufficient to service
the Loan or Borrower’s ability to pay its obligations under the Loan Documents when they become due.


 




    	 	18	 



     


    

 


“Permitted
Investments” means any one or more of the following obligations or securities acquired at a purchase price of not greater
than par, including those issued by Servicer, the trustee under any Securitization or any of their respective Affiliates, payable
on demand or having a maturity date not later than the Business Day immediately prior to the first Payment Date following the date
of acquiring such investment and meeting one of the appropriate standards set forth below:


 


(i)          obligations
of, or obligations fully guaranteed as to payment of principal and interest by, the United States or any agency or instrumentality
thereof provided such obligations are backed by the full faith and credit of the United States of America including obligations
of: the U.S. Treasury (all direct or fully guaranteed obligations), the Farmers Home Administration (certificates of beneficial
ownership), the General Services Administration (participation certificates), the U.S. Maritime Administration (guaranteed Title
XI financing), the Small Business Administration (guaranteed participation certificates and guaranteed pool certificates), the
U.S. Department of Housing and Urban Development (local authority bonds) and the Washington Metropolitan Area Transit Authority
(guaranteed transit bonds); provided, however, that the investments described in this clause must (A) have a predetermined
fixed dollar of principal due at maturity that cannot vary or change, (B) if rated by S&P, must not have an “r”
highlighter affixed to their rating, (C) if such investments have a variable rate of interest, such interest rate must be tied
to a single interest rate index plus a fixed spread (if any) and must move proportionately with that index, and (D) such investments
must not be subject to liquidation prior to their maturity;


 


(ii)         Federal
Housing Administration debentures;


 


(iii)        obligations
of the following United States government sponsored agencies: Federal Home Loan Mortgage Corp. (debt obligations), the Farm Credit
System (consolidated systemwide bonds and notes), the Federal Home Loan Banks (consolidated debt obligations), the Federal National
Mortgage Association (debt obligations), the Financing Corp. (debt obligations), and the Resolution Funding Corp. (debt obligations);
provided, however, that the investments described in this clause must (A) have a predetermined fixed dollar of principal
due at maturity that cannot vary or change, (B) if rated by S&P, must not have an “r” highlighter affixed to their
rating, (C) if such investments have a variable rate of interest, such interest rate must be tied to a single interest rate
index plus a fixed spread (if any) and must move proportionately with that index, and (D) such investments must not be subject
to liquidation prior to their maturity;


 




    	 	19	 



     


    

 


(iv)        federal
funds, unsecured certificates of deposit, time deposits, bankers’ acceptances and repurchase agreements with maturities of
not more than 365 days of any bank, the short term obligations of which at all times are rated in the highest short term rating
category by each Rating Agency (or, if not rated by all Rating Agencies, rated by at least one Rating Agency in the highest short
term rating category and otherwise acceptable to each other Rating Agency, as confirmed in writing that such investment would not,
in and of itself, result in a downgrade, qualification or withdrawal of the initial, or, if higher, then current ratings assigned
to the Securities); provided, however, that the investments described in this clause must (A) have a predetermined
fixed dollar of principal due at maturity that cannot vary or change, (B) if rated by S&P, must not have an “r”
highlighter affixed to their rating, (C) if such investments have a variable rate of interest, such interest rate must be tied
to a single interest rate index plus a fixed spread (if any) and must move proportionately with that index, and (D) such investments
must not be subject to liquidation prior to their maturity;


 


(v)         fully
Federal Deposit Insurance Corporation-insured demand and time deposits in, or certificates of deposit of, or bankers’ acceptances
issued by, any bank or trust company, savings and loan association or savings bank, the short term obligations of which at all
times are rated in the highest short term rating category by each Rating Agency (or, if not rated by all Rating Agencies, rated
by at least one Rating Agency in the highest short term rating category and otherwise acceptable to each other Rating Agency, as
confirmed in writing that such investment would not, in and of itself, result in a downgrade, qualification or withdrawal of the
initial, or, if higher, then current ratings assigned to the Securities); provided, however, that the investments
described in this clause must (A) have a predetermined fixed dollar of principal due at maturity that cannot vary or change, (B)
if rated by S&P, must not have an “r” highlighter affixed to their rating, (C) if such investments have a variable
rate of interest, such interest rate must be tied to a single interest rate index plus a fixed spread (if any) and must move proportionately
with that index, and (D) such investments must not be subject to liquidation prior to their maturity;


 


(vi)        debt
obligations with maturities of not more than 365 days and at all times rated by each Rating Agency (or, if not rated by all Rating
Agencies, rated by at least one Rating Agency and otherwise acceptable to each other Rating Agency, as confirmed in writing that
such investment would not, in and of itself, result in a downgrade, qualification or withdrawal of the initial, or, if higher,
then current ratings assigned to the Securities) in its highest long-term unsecured rating category; provided, however,
that the investments described in this clause must (A) have a predetermined fixed dollar of principal due at maturity that cannot
vary or change, (B) if rated by S&P, must not have an “r” highlighter affixed to their rating, (C) if such investments
have a variable rate of interest, such interest rate must be tied to a single interest rate index plus a fixed spread (if any)
and must move proportionately with that index, and (D) such investments must not be subject to liquidation prior to their maturity;


 




    	 	20	 



     


    

 


(vii)       commercial
paper (including both non-interest-bearing discount obligations and interest-bearing obligations payable on demand or on a specified
date not more than one year after the date of issuance thereof) with maturities of not more than 365 days and that at all times
is rated by each Rating Agency (or, if not rated by all Rating Agencies, rated by at least one Rating Agency and otherwise acceptable
to each other Rating Agency, as confirmed in writing that such investment would not, in and of itself, result in a downgrade, qualification
or withdrawal of the initial, or, if higher, then current ratings assigned to the Securities) in its highest short-term unsecured
debt rating; provided, however, that the investments described in this clause must (A) have a predetermined fixed
dollar of principal due at maturity that cannot vary or change, (B) if rated by S&P, must not have an “r” highlighter
affixed to their rating, (C) if such investments have a variable rate of interest, such interest rate must be tied to a single
interest rate index plus a fixed spread (if any) and must move proportionately with that index, and (D) such investments must not
be subject to liquidation prior to their maturity;


 


(viii)      units
of taxable money market funds, which funds are regulated investment companies, seek to maintain a constant net asset value per
share and invest solely in obligations backed by the full faith and credit of the United States, which funds have the highest rating
available from each Rating Agency (or, if not rated by all Rating Agencies, rated by at least one Rating Agency and otherwise acceptable
to each other Rating Agency, as confirmed in writing that such investment would not, in and of itself, result in a downgrade, qualification
or withdrawal of the initial, or, if higher, then current ratings assigned to the Securities) for money market funds; and


 


(ix)         any
other security, obligation or investment which has been approved as a Permitted Investment in writing by (a) Lender and (b) each
Rating Agency, as evidenced by a written confirmation that the designation of such security, obligation or investment as a Permitted
Investment will not, in and of itself, result in a downgrade, qualification or withdrawal of the initial, or, if higher, then current
ratings assigned to the Securities by such Rating Agency;


 


provided, however,
that no obligation or security shall be a Permitted Investment if (A) such obligation or security evidences a right to receive
only interest payments or (B) the right to receive principal and interest payments on such obligation or security are derived from
an underlying investment that provides a yield to maturity in excess of 120% of the yield to maturity at par of such underlying
investment.


 


“Permitted
Par Prepayment Date” means February 2, 2028.


 


“Permitted
Transfer” means any of the following: (a) any transfer, directly as a result of the death of a natural person, of stock,
membership interests, partnership interests or other ownership interests previously held by the decedent in question to the Person
or Persons lawfully entitled thereto, (b) any transfer, directly as a result of the legal incapacity of a natural person, of stock,
membership interests, partnership interests or other ownership interests previously held by such natural person to the Person or
Persons lawfully entitled thereto, (c) any transfer of stock or membership interests in any publicly-held corporation or other
publicly-held entity (in each case) which is listed on the New York Stock Exchange, the NASDAQ Global Select Market or another
nationally-recognized stock exchange, (d) the offer, sale, listing, transfer or issuance of securities of the REIT provided that
such securities are listed on the New York Stock Exchange, the NASDAQ Global Select Market or another nationally recognized stock
exchange (e) so long as the same does not result in a change of Control of the REIT, the offer, sale, listing, transfer or issuance
of securities of the REIT provided that such securities are sold in the ordinary course of business and in accordance with all
applicable legal requirements to retail investors in a manner consistent with previous offerings and sales conducted by the REIT
to date, or (f) a Qualified Equityholder Transfer.


 




    	 	21	 



     


    

 


“Person”
means any individual, corporation, partnership, joint venture, limited liability company, estate, trust, unincorporated association,
any federal, state, county or municipal government or any bureau, department or agency thereof and any fiduciary acting in such
capacity on behalf of any of the foregoing.


 


“Personal
Property” means, individually or collectively (as the context requires), the “Personal Property” as defined
in each applicable Security Instrument.


 


“Policies”
has the meaning specified in Section 6.1(b) hereof.


 


“Policy”
has the meaning specified in Section 6.1(b) hereof.


 


“Prepayment
Date” has the meaning specified in Section 9(b) of the Note.


 


“Prohibited
Entity/Ownership Structure” means any direct or indirect ownership of either the Property or Borrower by (a) a statutory
trust organized under 12 Del.C. § 3801 et seq., or any successor statute thereto, or under any similar other state of federal
law, (b) any one or more Persons as tenants in common or any similar ownership structure, or (c) any one or more Persons as a result
of any Crowdfunding provided that the foregoing shall not apply to non-Controlling shareholders of the REIT.


 


“Property”
means, individually or collectively (as the context requires), each Individual Property which is subject to the terms hereof and
of the other Loan Documents.


 


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


 


“Prudent Lender
Standard” shall, with respect to any matter, be deemed to have been met if the matter in question (i) prior to a Securitization,
is acceptable to Lender in its reasonable discretion and (ii) after a Securitization, (A) if permitted by the applicable legal
requirements relating to any REMIC Trust (including, without limitation, those relating to the continued treatment of the Loan
(or the applicable portion thereof and/or interest therein) as a “qualified mortgage” held by such REMIC Trust), the
continued qualification of such REMIC Trust as such, the non-imposition of any tax on such REMIC Trust (including, without limitation,
taxes on “prohibited transactions” and “contributions”) and any other REMIC Requirements, would be acceptable
to Lender in its reasonable discretion or (B) if the Lender discretion in the foregoing subsection (A) is not permitted under such
applicable REMIC Requirements, would be acceptable to a prudent lender of commercial mortgage loans exercising its reasonable discretion.


 




    	 	22	 



     


    

 


“Qualified
Equityholder” means (i) a bank, savings and loan association, investment bank, insurance company, trust company, commercial
credit corporation, pension plan, pension fund or pension advisory firm, mutual fund, real estate investment trust, government
entity or plan, real estate company, investment fund or an institution substantially similar to any of the foregoing, provided
in each case under this clause (i) that such Person (x) has total assets (in name or under management) in excess of $250,000,000
and (except with respect to a pension advisory firm or similar fiduciary) capital/statutory surplus or shareholder’s equity
in excess of $50,000,000 (in both cases, exclusive of the Property), and (y) is regularly engaged in the business of owning and
operating comparable properties and or (ii) any other Person reasonably approved by Lender. Additionally, for a Qualified Equityholder
under either clause (i) or (ii) above, Lender must receive a credit check and bankruptcy, litigation, judgment lien and other comparable
searches which must be reasonably acceptable to Lender, including that (A) such Qualified Equityholder has not been the subject
of any bankruptcy proceedings, voluntary or involuntary, made an assignment for the benefit of creditors or taken advantage of
any insolvency act, or any act for the benefit of debtors within the previous seven (7) years, (B) such Qualified Equityholder
has not been, and is not controlled by any party which has ever been, convicted of a capital offense or fraud, embezzlement or
other financial crime felony, and has no litigation or regulatory action pending or threatened in writing against it which would
reasonably be expected to result in a material adverse effect on such Person, and (C) such Qualified Equityholder has never been,
and is not affiliated with any person which has been, indicted or convicted for a Patriot Act offense and is not on any anti-terrorism
list of the United States of America.


 


“Qualified
Equityholder Transfer” has the meaning set forth in Section 5.2.10(h) hereof.


 


“Qualified
Manager” means either (a) Manager; or (b) in the reasonable judgment of Lender, a reputable and experienced management
organization (which may be an Affiliate of Borrower) possessing experience in managing properties similar in size, scope, use and
value as the Property, provided, that, if required by Lender, Borrower shall have obtained (i) prior written confirmation
from the applicable Rating Agencies that management of the Property by such entity will not cause a downgrade, withdrawal or qualification
of the then current ratings of the Securities or any class thereof and (ii) if such entity is an Affiliate of Borrower, an Additional
Insolvency Opinion.


 


“Qualified
Replacement Guarantor” shall mean a Person who (a) has its principal address and place business in the United States,
(b)(i) has a tangible Net Worth of not less than $100,000,000.00 and (ii) Liquid Assets of not less than $5,000,000.00, (c) is
a Qualified Equityholder or is twenty-five percent (25%) owned and Controlled by a Qualified Equityholder, and (d) for which Lender
has received a credit check and bankruptcy, litigation, judgment lien and other comparable searches which must be reasonably acceptable
to Lender, including that (A) such Person has not been the subject of any bankruptcy proceedings, voluntary or involuntary, made
an assignment for the benefit of creditors or taken advantage of any insolvency act, or any act for the benefit of debtors within
the previous seven (7) years, (B) such Person has not been, and is not controlled by any party which has ever been, convicted of
a capital offense or fraud, embezzlement or other financial crime felony, and has no material litigation or regulatory action pending
or threatened in writing against it, and (C) such Person has never been, and is not affiliated with any person which has been,
indicted or convicted for a Patriot Act offense and is not on any anti-terrorism list of the United States of America.


 




    	 	23	 



     


    

 


“Rating Agencies”
means whichever of S&P, Moody’s, Fitch, and Morningstar Credit Ratings, LLC which has been approved by Lender and designated
by Lender to assign a rating to the Securities, or any other nationally recognized statistical rating agency which has been approved
by Lender and designated by Lender to assign a rating to the Securities.


 


“Related Entities”
has the meaning set forth in Section 5.2.10(e)(v) hereof.


 


“Release”
means any release, deposit, discharge, emission, leaking, spilling, seeping, migrating, injecting, pumping, pouring, emptying,
escaping, dumping, disposing or other movement of Hazardous Substances.


 


“Release Amount”
shall have the meaning set forth in Section 2.6.2 hereof.


 


“Released
Property” shall have the meaning set forth in Section 2.6.2 hereof.


 


“Remediation”
means any response, remedial, removal, or corrective action, any activity to cleanup, detoxify, decontaminate, contain or otherwise
remediate any Hazardous Substance, any actions to prevent, cure or mitigate any Release of any Hazardous Substance, any action
to comply with any Environmental Laws or with any permits issued pursuant thereto, any inspection, investigation, study, monitoring,
assessment, audit, sampling and testing, laboratory or other analysis, or evaluation relating to any Hazardous Substances, in each
case, to the extent required under Environmental Law.


 


“REIT”
means Healthcare Trust, Inc., Maryland corporation.


 


“REMIC Requirements”
shall mean any applicable legal requirements relating to any REMIC Trust (including, without limitation, those relating to the
continued treatment of the Loan (or the applicable portion thereof or interest therein) as a “qualified mortgage” held
by such REMIC Trust, the continued qualification of such REMIC Trust as such under the Code, the non-imposition of any tax on such
REMIC Trust under the Code (including, without limitation, taxes on “prohibited transactions” and “contributions”)
and any other constraints, rules or other regulations or requirements relating to the servicing, modification or other similar
matters with respect to the Loan (or any portion thereof or interest therein) that may now or hereafter exist under applicable
legal requirements (including, without limitation under the Code)).


 


“REMIC Trust”
means a “real estate mortgage investment conduit” within the meaning of Section 860D of the Code that holds the Note
or a portion thereof.


 


“Rents”
means, all rents (including percentage rents), rent equivalents, moneys payable as damages or in lieu of rent or rent equivalents,
royalties (including all oil and gas or other mineral royalties and bonuses), income, receivables, receipts, revenues, payments
(including payments in connection with the exercise of any purchase option or termination rights), deposits (including security,
utility and other deposits), accounts, cash, issues, profits, charges for services rendered, all other amounts payable as rent
under any Lease or other agreement relating to the Property, including charges for electricity, oil, gas, water, steam, heat, ventilation,
air-conditioning and any other energy, telecommunication, telephone, utility or similar items or time use charges, HVAC equipment
charges, sprinkler charges, escalation charges, license fees, maintenance fees, charges for Taxes, operating expenses or other
reimbursables payable to Borrower (or to the Manager for the account of Borrower) under any Lease, and other consideration of whatever
form or nature received by or paid to or for the account of or benefit of Borrower or its agents or employees from any and all
sources arising from or attributable to the Property.


 




    	 	24	 



     


    

 


“Replacement
Management Agreement” means, collectively, (a) either (i) a management agreement with a Qualified Manager substantially
in the same form and substance as the Management Agreement, or (ii) a management agreement with a Qualified Manager, which management
agreement shall be reasonably acceptable to Lender in form and substance, provided, however, with respect to either
subclause (i) or (ii) above, that without Lender’s prior consent, in its sole discretion, the management fee for such Qualified
Manager shall not exceed the fee provided for in the Management Agreement in effect as of the closing of the Loan, and provided,
further, with respect to subclause (ii) above, Lender, at its option, may require that Borrower shall have obtained prior
written confirmation from the applicable Rating Agencies that such management agreement will not cause a downgrade, withdrawal
or qualification of the then current rating of the Securities or any class thereof and (b) an assignment of management agreement
and subordination of management fees substantially in the form delivered to Lender in connection with the origination of the Loan
(or of such other form and substance reasonably acceptable to Lender), executed and delivered to Lender by Borrower and such Qualified
Manager at Borrower’s expense.


 


“Replacement
Reserve Account” has the meaning set forth in Section 7.3.1 hereof.


 


“Replacement
Reserve Fund” has the meaning set forth in Section 7.3.1 hereof.


 


“Replacement
Reserve Monthly Deposit” has the meaning set forth in Section 7.3.1 hereof.


 


“Replacements”
has the meaning set forth in Section 7.3.1 hereof.


 


“Required
Repair Account” has the meaning set forth in Section 7.1.1 hereof.


 


“Required
Repair Fund” has the meaning set forth in Section 7.1.1 hereof.


 


“Required
Repairs” has the meaning set forth in Section 7.1.1 hereof.


 


“Reserve Funds”
means, collectively, the Tax and Insurance Escrow Fund, the Replacement Reserve Fund, the Required Repair Fund, the Ground Rent
Reserve Fund, the Rollover Reserve Fund, the CarolinaEast Reserve Fund, the Excess Cash Flow Reserve Fund and any other escrow
fund established by the Loan Documents.


 


“Restoration”
means the repair and restoration of the Property (or applicable portion thereof) after a Casualty or Condemnation as nearly as
possible to the condition the Property (or applicable portion thereof) was in immediately prior to such Casualty or Condemnation,
with such alterations as may be reasonably approved by Lender.


 


“Restricted
Party” means collectively, (a) Borrower, any Guarantor, and any Affiliated Manager and (b) any shareholder, partner,
member, non-member manager, or any direct or indirect legal or beneficial owner of Borrower, any Guarantor, any Affiliated Manager
or any non-member manager.


 




    	 	25	 



     


    

 


“Rollover
Reserve Account” has the meaning set forth in Section 7.4.1 hereof.


 


“Rollover
Reserve Cap” has the meaning set forth in Section 7.4.1 hereof.


 


“Rollover
Reserve Fund” has the meaning set forth in Section 7.4.1 hereof.


 


“Rollover
Reserve Monthly Deposit” has the meaning set forth in Section 7.4.1 hereof.


 


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


 


“Sale or Pledge”
means a voluntary or involuntary sale, conveyance, assignment, transfer, encumbrance, pledge, grant of option or other transfer
or disposal of a legal or beneficial interest, whether direct or indirect.


 


“Securities”
has the meaning set forth in Section 9.1.1 hereof.


 


“Securitization”
has the meaning set forth in Section 9.1.1 hereof.


 


“Security
Agreement” has the meaning set forth in Section 2.5.1 hereof.


 


“Security
Instrument” and “Security Instruments” means individually or collectively, as the context requires,
each first priority Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing, Leasehold Deed of Trust,
Assignment of Leases and Rents, Security Agreement and Fixture Filing, Mortgage, Assignment of Leases and Rents, Security Agreement
and Fixture Filing, Leasehold Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing, Deed to Secure Debt,
Assignment of Leases and Rents, Security Agreement and Fixture Filing or similar document dated the date hereof, executed and delivered
by Borrower to Lender as security for the Loan and encumbering the Property (or any portion thereof), as the same may be amended,
restated, replaced, supplemented or otherwise modified from time to time.


 


“Self-Managed
Properties” means the Individual Properties located at High Desert Medical Group MOB, 43839 N. 15th Street West Lancaster
CA 93534, Northside Hospital MOB, 320 Hospital Road Canton GA 30114, Aurora Healthcare Center 2600 Kiley Way, Plymouth WI 53073
and Sassafras Medical Building, 1910 Sassafras Street Erie PA 16502, each of which is self-managed by the related Borrower.


 


“Severed Loan
Documents” has the meaning set forth in Section 8.2(c) hereof.


 


“Servicer”
has the meaning set forth in Section 9.5 hereof.


 


“Special Purpose
Entity” means a corporation, limited partnership or limited liability company that, since the date of its formation and
at all times on and after the date thereof, has complied with and shall at all times comply with the following requirements unless
it has received either prior consent to do otherwise from Lender or a permitted administrative agent thereof, or, while the Loan
is securitized, if reasonably required by Lender, confirmation from each of the applicable Rating Agencies that such noncompliance
would not result in the requalification, withdrawal, or downgrade of the ratings of any Securities or any class thereof:


 




    	 	26	 



     


    

 


(i) is and
shall be organized solely for the purpose of acquiring, developing, owning, holding, selling, leasing, transferring, exchanging,
managing and operating the Property, entering into and performing its obligations under the Loan Documents with Lender, refinancing
the Property in connection with a permitted repayment of the Loan, and transacting lawful business that is incident, necessary
and appropriate to accomplish the foregoing;


 


(ii) has
not engaged and shall not engage in any business unrelated to the acquisition, development, ownership, holding, sale, lease, transfer,
exchange, management or operation of the Property;


 


(iii) has
not owned and shall not own any real property other than the Property;


 


(iv) does
not have, shall not have and at no time had any assets other than the Property and personal property necessary or incidental to
its ownership and operation of the Property;


 


(v) has not
engaged in, sought, consented to or permitted and shall not engage in, seek, consent to or permit (A) any dissolution, winding
up, liquidation, consolidation or merger, or (B) any sale or other transfer of all or substantially all of its assets or any sale
of assets outside the ordinary course of its business, except as permitted by the Loan Documents;


 


(vi) shall
not cause, consent to or permit any amendment of its limited partnership agreement, articles of incorporation, articles of organization,
certificate of formation, operating agreement or other formation document or organizational document (as applicable) with respect
to the matters set forth in this definition;


 


(vii) intentionally
omitted;


 


(viii) intentionally
omitted;


 


(ix) if such
entity is a limited liability company (other than a limited liability company meeting all of the requirements applicable to a single-member
limited liability company set forth in this definition of “Special Purpose Entity” whether or not it has one or more
members), has and shall have at least one (1) member that is a Special Purpose Entity, that is a corporation, that directly owns
at least one percent (1.0%) of the equity of the limited liability company; and that has at least two (2) Independent Directors;


 




    	 	27	 



     


    

 


(x) if such
entity is a single-member limited liability company, (A) is and shall be a Delaware limited liability company, (B) has and shall
have at least two (2) Independent Directors serving as managers of such company, (C) shall not take any Material Action with respect
to itself and shall not cause or permit the members or managers of such entity to take any Material Action with respect to itself
unless two (2) Independent Directors then serving as managers of the company shall have participated consented in writing to such
action, and (D) has and shall have either (1) a member which owns no economic interest in the company, has signed the company’s
limited liability company agreement and has no obligation to make capital contributions to the company, or (2) two natural persons
or one entity that is not a member of the company, that has signed its limited liability company agreement and that, under the
terms of such limited liability company agreement becomes a member of the company immediately prior to the withdrawal or dissolution
of the last remaining member of the company;


 


(xi) has
not and shall not (and, if such entity is (a) a limited liability company, has and shall have a limited liability agreement or
an operating agreement, as applicable, (b) a limited partnership, has a limited partnership agreement, or (c) a corporation,
has a certificate of incorporation or articles that, in each case, provide that such entity shall not) (1) dissolve, merge, liquidate,
consolidate; (2) sell all or substantially all of its assets; (3) amend its organizational documents with respect to the matters
set forth in this definition without the consent of Lender; or (4) without the affirmative vote of two (2) Independent Directors
of itself: (A) file or consent in writing to the filing of any bankruptcy, insolvency or reorganization case or proceeding, institute
any proceedings under any applicable insolvency law or otherwise seek relief under any laws relating to the relief from debts or
the protection of debtors generally, file a bankruptcy or insolvency petition or otherwise institute insolvency proceedings; (B)
seek or consent to the appointment of a receiver, liquidator, assignee, trustee, sequestrator, custodian or any similar official
for the entity or a substantial portion of its property; (C) make an assignment for the benefit of the creditors of the entity;
or (D) take any action in furtherance of any of the foregoing;


 


(xii) has
at all times been and intends at all times to remain solvent and has paid and intends to pay its debts and liabilities (including,
a fairly-allocated portion of any personnel and overhead expenses that it shares with any Affiliate) from its assets as the same
shall become due, and has maintained and intends to maintain adequate capital for the normal obligations reasonably foreseeable
in a business of its size and character and in light of its contemplated business operations provided that the foregoing shall
in no event obligate any direct or indirect owner of Borrower or any other Person to contribute equity into Borrower;


 


(xiii) holds
itself out as a legal entity, separate and apart from any other person or entity, has not failed and shall not fail to correct
any known misunderstanding regarding the separate identity of such entity and has not identified and shall not identify itself
as a division of any other Person;


 


(xiv) has
maintained and shall maintain its bank accounts (if any), books of account, books and records separate from those of any other
Person and, to the extent that it is required to file tax returns under applicable law, has filed and shall file its own tax returns,
except to the extent that it is required by law to file consolidated tax returns and, if it is a corporation, has not filed and
shall not file a consolidated federal income tax return with any other corporation, except to the extent that it is required by
law to file consolidated tax returns;


 




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(xv) has
maintained and shall maintain its own records, books, resolutions and agreements;


 


(xvi) has
not commingled and shall not commingle its funds or assets with those of any other Person and has not participated and shall not
participate in any cash management system with any other Person, excepting, however, (a) any cash management system entered into
in connection with any mortgage loan encumbering the Property or any part thereof prior to the date hereof, which prior cash management
systems, if any, have been terminated, and (b) the cash management system required by Lender in connection with the Loan;


 


(xvii) has
held and shall hold its assets in its own name;


 


(xviii) has
conducted and shall conduct its business in its name or in a name franchised or licensed to it by an entity other than an Affiliate
of itself or of Borrower, except for business conducted on behalf of itself by another Person under a business management services
agreement that is on commercially-reasonable terms, so long as the manager, or equivalent thereof, under such business management
services agreement holds itself out as an agent of Borrower;


 


(xix) (A)
has maintained and shall maintain its financial statements, accounting records and other entity documents separate from those of
any other Person; (B) has shown and shall show, in its financial statements, its asset and liabilities separate and apart from
those of any other Person; and (C) has not permitted and shall not permit its assets to be listed as assets on the financial statement
of any of its Affiliates except as required by GAAP; provided, however, that any such consolidated financial statement contains
a note indicating that the Special Purpose Entity’s separate assets and credit are not available to pay the debts of such
Affiliate and that the Special Purpose Entity’s liabilities do not constitute obligations of the consolidated entity;


 


(xx) has
paid and intends to pay its own liabilities and expenses, including the salaries of its own employees, out of its own funds and
assets provided that the foregoing shall in no event obligate any direct or indirect owner of Borrower or any other Person to contribute
equity into Borrower, and has maintained and shall maintain a sufficient number of employees in light of its contemplated business
operations;


 


(xxi) has
observed and shall observe all partnership, corporate or limited liability company formalities, as applicable;


 


(xxii) has
not incurred any Indebtedness other than (i) acquisition financing with respect to the Property; construction financing with respect
to the Improvements and certain off-site improvements required by municipal and other authorities as conditions to the construction
of the Improvements; and first mortgage financings secured by the Property; and Indebtedness pursuant to letters of credit, guaranties,
interest rate protection agreements and other similar instruments executed and delivered in connection with such financings, (ii)
unsecured trade payables and operational debt not evidenced by a note, (iii) Indebtedness incurred in the financing of equipment
and other personal property used on the Property and (iv) a loan from Lender to Guarantor, with respect to which certain of the
Individual Borrowers were guarantors and indemnitors, and with respect to which such Individual Borrower have been released;


 




    	 	29	 



     


    

 


(xxiii) shall
have no Indebtedness other than (i) the Loan, (ii) liabilities incurred in the ordinary course of business relating to the ownership
and operation of the Property and the routine administration of Borrower, in amounts not to exceed 2% of the amount of the Loan
which liabilities, are not evidenced by a note and are paid no later than 30 days after the date they are due, and which amounts
are normal and reasonable under the circumstances, and (iii) such other liabilities that are permitted pursuant to this Agreement,
provided that the foregoing items (i) - (iii) shall in no event obligate any direct or indirect owner of Borrower or any other
Person to contribute equity into Borrower, and provided further, that “Indebtedness” shall not include any liability
for Taxes or Other Charges or Insurance Premiums;


 


(xxiv) has
not assumed, guaranteed or become obligated and shall not assume or guarantee or become obligated for the debts of any other Person,
has not held out and shall not hold out its credit as being available to satisfy the obligations of any other Person or has not
pledged and shall not pledge its assets for the benefit of any other Person, in each case except as permitted pursuant to this
Agreement;


 


(xxv) has
not acquired and shall not acquire obligations or securities of its partners, members or shareholders or any other owner or Affiliate;


 


(xxvi) has
allocated and shall allocate fairly and reasonably any overhead expenses that are shared with any of its Affiliates, constituents,
or owners, or any guarantors of any of their respective obligations, or any Affiliate of any of the foregoing, including paying
for shared office space and for services performed by any employee of an Affiliate;


 


(xxvii)   has
maintained and used and shall maintain and use separate stationery, invoices and checks bearing its name and not bearing the name
of any other entity unless such entity is clearly designated as being the Special Purpose Entity’s agent;


 


(xxviii)
has not pledged and shall not pledge its assets to or for the benefit of any other Person other than with respect to loans secured
by the Property and no such pledge remains outstanding except to Lender to secure the Loan;


 


(xxix) has
held itself out and identified itself and shall hold itself out and identify itself as a separate and distinct entity under its
own name or in a name franchised or licensed to it by an entity other than an Affiliate of Borrower and not as a division or part
of any other Person;


 


(xxx) has
maintained and shall maintain its assets in such a manner that it shall not be costly or difficult to segregate, ascertain or identify
its individual assets from those of any other Person;


 




    	 	30	 



     


    

 


(xxxi) has
not made and shall not make loans to any Person and has not held and shall not hold evidence of indebtedness issued by any other
Person or entity (other than cash and investment-grade securities and letters of credit held as security deposits issued by an
entity that is not an Affiliate of or subject to common ownership with such entity);


 


(xxxii)     intentionally
omitted;


 


(xxxiii)
other than capital contributions and distributions permitted under the terms of its organizational documents, has not entered into
or been a party to, and shall not enter into or be a party to, any transaction with any of its partners, members, shareholders
or Affiliates except in the ordinary course of its business and on terms which are commercially reasonable terms comparable to
those of an arm’s-length transaction with an unrelated third party;


 


(xxxiv)     
has not had and shall not have any obligation to, and has not indemnified and shall not indemnify its partners, officers, directors
or members, as the case may be, in each case unless such an obligation or indemnification is fully subordinated to the Debt and
shall not constitute a claim against it if its cash flow is insufficient to pay the Debt;


 


(xxxv)      if
such entity is a corporation, has considered and shall consider the interests of its creditors in connection with all corporate
actions;


 


(xxxvi) has
not had and shall not have any of its obligations guaranteed by any Affiliate except as provided by the Loan Documents;


 


(xxxvii)
has not formed, acquired or held and shall not form, acquire or hold any subsidiary;


 


(xxxviii)
has complied and shall comply in all material respects with all of the terms and provisions contained in its organizational documents;


 


(xxxix) has
conducted and shall conduct its business so that each of the assumptions made about it and each of the facts stated about it in
the Insolvency Opinion are true; and


 


(xl) has
not permitted and shall not permit any Affiliate (other than an Affiliated Manager) or constituent party independent access to
its bank accounts.


 


“State”
means, the applicable State or Commonwealth in which the applicable Individual Property is located.


 


“Substitute
Property” has the meaning set forth in Section 2.6.3 hereof.


 


“Substitution”
has the meaning set forth in Section 2.6.3 hereof.


 


“Substitution
Release Property” has the meaning set forth in Section 2.6.3 hereof.


 




    	 	31	 



     


    

 


“Survey”
means, individually or collectively (as the context requires), each survey of each Individual Property prepared by a surveyor licensed
in the State and reasonably satisfactory to Lender and the company or companies issuing the Title Insurance Policy, and containing
a certification of such surveyor reasonably satisfactory to Lender.


 


“Tax and Insurance
Escrow Fund” has the meaning set forth in Section 7.2 hereof.


 


“Taxes”
means all real estate and personal property taxes, assessments, water rates or sewer rents, now or hereafter levied or assessed
or imposed against the Property or part thereof.


 


“Tenant”
means the lessee of all or a portion of the Property under a Lease.


 


“Tenant Direction
Letter” means an instruction letter to Tenants substantially in the form attached hereto as Schedule VI.


 


“Threshold
Amount” has the meaning set forth in Section 5.1.21 hereof.


 


“TILC Obligations”
has the meaning set forth in Section 7.4.1 hereof.


 


“Title Insurance
Policy” means each mortgagee title insurance policy issued with respect to each Individual Property and insuring the
lien of each applicable Security Instrument.


 


“Transfer”
has the meaning set forth in Section 5.2.10(b) hereof.


 


“Transferee”
has the meaning set forth in Section 5.2.10(e) hereof.


 


“Transferee’s
Principals” means collectively, (A) Transferee’s managing members, general partners or principal shareholders and
(B) such other members, partners or shareholders which directly or indirectly shall own a fifty-one percent (51%) or greater economic
and voting interest in Transferee.


 


“U.S. Obligations”
means nonredeemable, nonprepayable, noncallable securities evidencing an obligation to timely pay principal and/or interest in
a full and timely manner that constitute “government securities” within the meaning of Section 2(a)(16) of the Investment
Company Act of 1940, as amended, and are (a) direct obligations of the United States of America for the payment of which its full
faith and credit is pledged, or (b) to the extent acceptable to the Rating Agencies, other “government securities”
within the meaning of Section 2(a)(16) of the Investment Company Act of 1940, as amended.


 


“UCC”
or “Uniform Commercial Code” means the Uniform Commercial Code as in effect in the State in which applicable
Individual Property is located.


 


Section 1.2           Principles
of Construction. The following rules of construction shall be applicable for all purposes of this Agreement and all documents
or instruments supplemental hereto, unless the context otherwise clearly requires:


 


(a)          any
pronoun used herein shall be deemed to cover all genders, and words importing the singular number shall mean and include the plural
number, and vice versa;


 




    	 	32	 



     


    

 


(b)          the
term “or” has, except where otherwise indicated, the inclusive meaning represented by the phrase “and/or”;


 


(c)          an
Event of Default shall “continue” or be “continuing” until such Event of Default has been waived in writing
by Lender;


 


(d)          no
inference in favor of or against any party shall be drawn from the fact that such party has drafted any portion hereof or any other
Loan Document;


 


(e)          the
cover page (if any) of, all recitals set forth in, and all Exhibits to, any Loan Document are hereby incorporated therein;


 


(f)          References
herein to “the Property or any portion thereof” and words of similar import shall be deemed to refer, as applicable,
to any portion of the Property taken as a whole (including any Individual Property) and any portion of any Individual Property;


 


(g)          all
references to sections and schedules are to sections and schedules in or to this Agreement unless otherwise specified;


 


(h)          all
uses of the words “include,” “including” and similar terms shall be construed as if followed by the phrase
“without being limited to” unless the context shall indicate otherwise;


 


(i)          unless
otherwise specified, the words “hereof,” “herein” and “hereunder” and words of similar import
when used in any Loan Document shall refer to such Loan Document as a whole and not to any particular provision of such Loan Document;


 


(j)          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;


 


(k)          all
captions to the Sections in any Loan Document are used for convenience and reference only and in no way define, limit or describe
the scope or intent of, or in any way affect, such Loan Document;


 


(l)          the
words “to Borrower’s knowledge,” “to the knowledge of Borrower,” “to Borrower’s best
knowledge,” “to the best knowledge of Borrower” and words of similar meaning shall mean to the actual knowledge
of Sean Leahy and Russ Winget (provided that such persons shall not have any personal liability with respect to any matter related
to the Loan) as of the date of making of the representation or warranty in question, or persons holding the same or equivalent
positions with the Borrower or the Guarantor if such persons are no longer employed by the Borrower or Guarantor as of the date
of making of the representation or warranty in question;


 


(m)          the
term “or” has, except where otherwise indicated, the inclusive meaning represented by the phrase “and/or”;
and


 




    	 	33	 



     


    

 


(n)          Wherever
Lender’s judgment, consent, approval or discretion is required under any Loan Document for any matter or thing or Lender
shall have an option, election, or right of determination or any other power to decide any matter relating to the terms and conditions
of such Loan Document, including any right to determine that something is satisfactory or not (“Decision Power”),
such Decision Power shall be exercised in the sole and absolute discretion of Lender unless otherwise expressly stated. Such Decision
Power and each other power granted to Lender may be exercised by Lender or by any authorized agent of Lender (including any servicer
and/or attorney-in-fact), and Borrower hereby expressly agrees to recognize the exercise of such Decision Power by such authorized
agent. Without limiting the generality of the foregoing, any authorized agent of Lender (including any servicer and/or attorney-in-fact)
is hereby specifically authorized to remove a trustee under any applicable Security Instrument and select and appoint a successor
trustee with respect to such Security Instrument.


 


ARTICLE II - GENERAL TERMS


 


Section 2.1           Loan
Commitment; Disbursement to Borrower.


 


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


 


2.1.2           Single
Disbursement to Borrower. Borrower may request and receive only one (1) borrowing hereunder in respect of the Loan and
any amount borrowed and repaid hereunder in respect of the Loan may not be reborrowed. Borrower acknowledges and agrees that the
Loan has been fully funded as of the Closing Date.


 


2.1.3           The
Note, Security Instrument and Loan Documents. The Loan shall be evidenced by the Note and secured by the Security Instruments
and the other Loan Documents.


 


2.1.4           Use
of Proceeds. Borrower shall use the proceeds of the Loan to (a) acquire the Property or repay and discharge any existing
loans relating to the Property, (b) pay all past due basic carrying costs, if any, with respect to the Property, (c) make deposits
into the Reserve Funds on the Closing Date in the amounts provided herein, (d) pay costs and expenses incurred in connection with
the closing of the Loan, as approved by Lender, (e) fund any working capital requirements of the Property and (f) distribute the
balance, if any, to Borrower.


 


Section 2.2           Interest
Rate.


 


2.2.1           Interest
Rate. Interest on the Outstanding Principal Balance of the Loan shall accrue at the Interest Rate or as otherwise set forth
in this Agreement or in the Note from (and including) the Closing Date to but excluding the Maturity Date.


 


2.2.2           Interest
Calculation. Interest on the outstanding principal balance of the Loan shall be calculated by multiplying (a) the actual
number of days elapsed in the relevant Accrual Period by (b) a daily rate based on the Interest Rate and a three hundred sixty
(360) day year by (c) the outstanding principal balance of the Loan. Borrower acknowledges that the calculation method for interest
described herein results in a higher effective interest rate than the numeric Interest Rate and Borrower hereby agrees to this
calculation method.


 




    	 	34	 



     


    

 


2.2.3           Default
Rate. Upon the occurrence of an Event of Default (including the failure of Borrower to make full payment on the Maturity
Date), Lender shall be entitled to receive and Borrower shall pay interest on the Outstanding Principal Balance at the Default
Rate. Interest shall accrue and be payable at the Default Rate from the occurrence of an Event of Default until all Events of Default
have been waived in writing by Lender in its discretion. Such accrued interest shall be added to the Outstanding Principal Balance,
and interest shall accrue thereon at the Default Rate until fully paid. Such accrued interest shall be secured by the Security
Instrument and other Loan Documents. Borrower agrees that Lender’s right to collect interest at the Default Rate is given
for the purpose of compensating Lender at reasonable amounts for Lender’s added costs and expenses that occur as a result
of Borrower’s default and that are difficult to predict in amount, such as increased general overhead, concentration of management
resources on problem loans, and increased cost of funds. Lender and Borrower agree that Lender’s collection of interest at
the Default Rate is not a fine or penalty, but is intended to be and shall be deemed to be reasonable compensation to Lender for
increased costs and expenses that Lender will incur if there occurs an Event of Default hereunder. Collection of interest at the
Default Rate shall not be construed as an agreement or privilege to extend the Maturity Date or to limit or impair any rights and
remedies of Lender under any Loan Documents. If judgment is entered on the Note, interest shall continue to accrue post-judgment
at the greater of (a) the Default Rate or (b) the applicable statutory judgment rate.


 


2.2.4           Usury
Savings. This Agreement, the Note and the other Loan Documents are subject to the express condition that at no time shall
Borrower be obligated or required to pay interest on the principal balance of the Loan 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 principal balance due hereunder
at a rate in excess of the Maximum Legal Rate, the Interest Rate or the Default Rate, as the case may be, 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 of interest from time to time in effect and
applicable to the Loan for so long as the Loan is outstanding.


 


Section 2.3           Loan
Payment. Payments of principal, interest, and Late Charges (as defined in the Note) shall be made as provided in the Note.


 


Section 2.4           Prepayments.
Except as otherwise provided in Section 9 of the Note, Borrower shall not have the right to prepay the Loan in whole or in part
prior to the Maturity Date.


 


Section 2.5           Intentionally
Omitted.


 




    	 	35	 



     


    

 


Section 2.6           Release
of Property. Except as set forth in this Section 2.6, no repayment, prepayment of all or any portion of the Loan
shall cause, give rise to a right to require, or otherwise result in, the release of the Lien of the Security Instrument on the
Property.


 


2.6.1     Release
of Property. (a) If Borrower has the right to and has elected to prepay in full the Loan in accordance with this Agreement
and the Note, upon satisfaction of the requirements of Section 2.4 and Section 9 of the Note, as applicable, and this Section
2.6, each applicable Individual Property shall be released from the Lien of the applicable Security Instrument.


 


(b)          In
connection with the release of each applicable Security Instrument, Borrower shall submit to Lender, not less than fifteen (15)
days prior to the Prepayment Date, a release of Lien (and related Loan Documents) for each Individual Property for execution by
Lender. Each such release shall be in a form appropriate in the jurisdiction in which the applicable Individual Property is located
and that would be satisfactory to a prudent lender and contains standard provisions, if any, 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 releases in accordance with the terms of this Agreement. Borrower shall reimburse
Lender and Servicer for any reasonable out-of-pocket costs and expenses Lender and Servicer incur arising from such release (including
reasonable out-of-pocket attorneys’ fees and expenses) and Borrower shall pay, in connection with such release, (i) all recording
charges, filing fees, taxes or other reasonable expenses payable in connection therewith, and (ii) to any Servicer, a processing
fee in an amount determined by Lender or Servicer in its reasonable discretion provided such processing fee shall be in an amount
that is regularly and customarily charged by loan servicers with respect to the release of a Security Instrument.


 


(c)          If,
in connection with a payment in full of the Loan, Borrower advises Lender that it desires Lender to assign the Loan Documents to
a Person designated by Borrower (the “Full Assignee Lender”), then Lender shall cooperate in all reasonable
respects with Borrower to assign and deliver originals of the Loan Documents to the Full Assignee Lender or as directed by Borrower,
including (i) an allonge with respect to the Note, (ii) executed  assignments of the recorded Loan Documents, and (iii) such
other instruments of conveyance, assignment, termination, severance and release (including appropriate UCC-3 termination statements
and terminations of rent direction notices to Tenants and other third parties), all in recordable form as may reasonably be requested
by Borrower to evidence such assignment; provided, however, that such assignment shall be made without representation, warranty
or covenant by Lender (other than that Lender is the lawful owner of the Loan Documents, and Lender has the power to assign the
same and the outstanding principal balance thereof).


 


2.6.2      Partial
Release. Provided no Event of Default shall have occurred and be continuing, Borrower shall have the right at any time
after June 1, 2020, and prior to the Maturity Date to obtain the release (the “Partial Release”) of any one
or more of the Individual Properties (individually and collectively, as the context requires, the “Released Property”)
from the lien of the applicable Security Instrument thereon (and related Loan Documents) and the release of Borrower’s obligations
under the Loan Documents with respect to such Released Property (other than those expressly stated to survive), upon the satisfaction
of each of the following conditions precedent:


 




    	 	36	 



     


    

 


(a)          Borrower
shall provide Lender with thirty (30) days (or a shorter period of time if permitted by Lender in its sole discretion) prior written
notice of the proposed Partial Release (the date of Lender’s receipt of such notice shall be referred to herein as a “Partial
Release Notice Date”).


 


(b)          Any
and all sums due and payable to Lender under the Loan Documents on each of the Partial Release Notice Date and the date of consummation
of the Partial Release, shall be fully paid and no Event of Default (other than an Event of Default which applies only to the Released
Property) shall be continuing as of the Partial Release Notice Date or the date of consummation of the Partial Release.


 


(c)          Borrower
shall have paid or reimbursed Lender for all out-of-pocket expenses reasonably incurred by Lender in connection with the Partial
Release (including without limitation, reasonable out-of-pocket attorneys’ fees, appraisal fees, recording costs and trustee’s
fees).


 


(d)          Borrower
shall submit to Lender, not less than ten (10) days prior to the date of such Partial Release, a release of lien (and related Loan
Documents) for the Released Property for execution by Lender. Such release shall be in a form appropriate in each jurisdiction
in which the Released Property is located and shall contain standard provisions, if any, protecting the rights of Lender. In addition,
Borrower shall provide all other documentation as may reasonably be required to satisfy the Prudent Lender Standard in connection
with such release, together with an Officer’s Certificate certifying that such documentation (i) is in compliance with all
applicable Legal Requirements, and (ii) will effect such release in accordance with the terms of this Agreement.


 


(e)          The
future uses of the Released Property may not violate any exclusivity or other provision in any Lease pertaining to any Individual
Property not being released nor any covenant, restriction, condition or other title matter then encumbering the Property.


 


(f)          Intentionally
omitted.


 


(g)          If
required under the operative documents with respect to any Securitization, Lender shall have received evidence in writing from
any applicable Rating Agency to the effect that the proposed Partial Release will not result in a qualification, reduction, downgrade
or withdrawal of any rating initially assigned or to be assigned in such Securitization, or a waiver from any such rating agency
stating that it has declined to review the Partial Release.


 


(h)          The
Partial Release shall be permitted under REMIC Requirements in effect as of the consummation of the Partial Release, and, if reasonably
required by Lender to confirm the same, Borrower shall (i) deliver to Lender opinions of counsel satisfying the Prudent Lender
Standard and acceptable the Rating Agencies (issued by counsel satisfying the Prudent Lender Standard and acceptable to the Rating
Agencies) (1) stating that the Partial Release will not cause (A) the Loan to cease to be a “qualified mortgage” within
the meaning of Section 860G of the Code, either under the provisions of Treasury Regulation Sections 1.860G-2(a)(8) or 1.860G-2(b)
(as such regulations may be amended or superseded from time to time) or under any other provision of the Code or otherwise, and
(B) the failure of any REMIC Trust or any other entity that holds the Note to maintain its tax status and (2) with respect to such
other matters as may be required by Lender and (ii) pay all of Lender’s reasonable out-of-pocket costs and expenses and the
costs and expenses of the Rating Agencies in connection with the Partial Release, including, without limitation, reasonable out-of-pocket
costs counsel fees.


 




    	 	37	 



     


    

 


(i)          As
of the date of consummation of the Partial Release, after giving effect to the release of the lien of the Security Instrument(s)
encumbering the Released Property, the Debt Service Coverage Ratio with respect to the remaining Individual Properties (based upon
the trailing twelve (12) month period) shall be equal to or greater than the greater of (i) the Debt Service Coverage Ratio as
of the Closing Date and (ii) the Debt Service Coverage Ratio immediately prior to the consummation of the Partial Release.


 


(j)          As
of the date of consummation of the Partial Release, after giving effect to the release of the lien of the Security Instrument(s)
encumbering the Released Property, the Debt Yield with respect to the remaining Individual Properties (based upon the trailing
twelve (12) month period) shall be no less than the greater of (i) the Debt Yield as of the Closing Date or (ii) the Debt Yield
immediately prior to the consummation of the Partial Release.


 


(k)          Borrower
shall (i) partially prepay the Debt in accordance with Section 9 of the Note in an amount equal to 115% (120% if the Released Property
is being transferred to a Borrower Affiliate) of the Allocated Loan Amount for the Released Property (the “Release Amount”),
(ii) unless such prepayment is tendered on a Payment Date, pay to Lender an amount equal to the interest that would have accrued
on the amount being prepaid for the full Accrual Period had the prepayment not been made and (iii) pay to Lender the Prepayment
Consideration (as defined in the Note) to the extent that such prepayment occurs at any time other than on or after the Permitted
Par Prepayment Date. Any portion of the Release Amount applied to the principal amount of the Debt shall be applied first, to reduce
the Allocated Loan Amount attributable to the Released Property to zero and second, pro rata to reduce the Allocated Loan Amounts
of each of the other remaining Individual Properties. Notwithstanding the foregoing, in the event that Lender has applied the Net
Proceeds from a Casualty or Condemnation of an Individual Property to the repayment of the Debt and a Partial Release of such Individual
Property is thereafter completed, (1) the Release Amount for such Individual Property shall be reduced by the amount of such Net
Proceeds so applied, and (2) no Prepayment Consideration or similar sum shall be due in connection therewith.


 




    	 	38	 



     


    

 


(l)          If,
in connection with a Partial Release, Borrower advises Lender that it desires Lender to assign the applicable Security Instrument
and other Loan Documents (collectively, the “Assigned Loan Documents”) encumbering the Released Properties that
are the subject of a Partial Release (collectively, the “Assigned Properties”) to a Person designated by Borrower
(the “Partial Assignee Lender”), then Lender shall (a) cooperate in all reasonable respects with Borrower (i)
to split and sever each Promissory Note constituting the Note into two Notes, with one such Note (each, a “Remaining Note”)
continuing to evidence the portion of the Loan secured by the Individual Properties that are not Assigned Properties (collectively,
the “Remaining Properties”), and the other such Note (each, an “Assigned Note") securing the
portion of the Loan to be secured by the Assigned Properties, and (ii) to assign the Assigned Note and the Assigned Loan Documents
to the Partial Assignee Lender, with assignments of the recorded Assigned Loan Documents in recordable form and otherwise in form
and substance reasonably acceptable to Lender and the Partial Assignee Lender, (b) deliver to the Partial Assignee Lender or as
directed by Borrower the originally executed Assigned Note, (c) execute and deliver to the Partial Assignee Lender or as directed
by Borrower, (i) an allonge with respect to the Assigned Note, (ii) executed  assignments of the recorded Assigned Loan Documents
(and the original applicable Assigned Loan Documents or a certified copy of record to the assignee thereof), and (iii) such other
instruments of conveyance, assignment, termination, severance and release (including appropriate UCC-3 termination statements and
terminations of rent direction notices to Tenants and other third parties), all in recordable form as may reasonably be requested
by Borrower to evidence such assignment; provided, however, that such assignment shall be made without representation, warranty
or covenant by Lender (other than that Lender is the lawful owner of such Assigned Note and the Assigned Loan Documents, and Lender
has the power to assign the same and the outstanding principal balance thereof). In connection with any assignment effected in
accordance with this paragraph, Borrower shall deliver the following: (I) New York enforceability and entity authority opinion
letters, reasonably required by Lender, (II) organizational documents of Borrower, Guarantor and any entities executing documents
on behalf of Borrower or Guarantor, as reasonably required by Lender, and (III) such other documents and agreements as may be reasonable
required by Lender.


 


Notwithstanding anything
to the contrary contained in this Section 2.6.2, the parties hereto hereby acknowledge and agree that after the Securitization
of the Loan (or any portion thereof or interest therein), with respect to any Lender approval or similar discretionary rights over
any matters contained in this Section 2.6.2, such rights shall be construed such that Lender shall only be permitted to
withhold its consent or approval with respect to any such matters if the same fails to meet the Prudent Lender Standard.


 


2.6.3      Property
Substitution. Provided no Event of Default shall have occurred and be continuing, at any time after May 1, 2019, and prior
to the Maturity Date, Borrower may elect to cause Lender to release any one or more of the Individual Properties (individually
and collectively, as the context requires, the “Substitution Release Property”) from the lien of the applicable
Security Instrument, provided that simultaneously with such release, Borrower shall encumber one or more parcels of real property
(individually and collectively, as the context requires, the “Substitute Property”) as a substitute for the
Substitution Release Property (each such permitted release and encumbrance, a “Substitution”), all subject to
the satisfaction of each of the following conditions precedent:


 


(a)          Borrower
shall provide Lender with forty-five (45) days (or a shorter period of time if permitted by Lender in its sole discretion) prior
written notice of the proposed Substitution;


 


(b)          Any
and all sums due and payable to Lender under the Loan Documents on the date of consummation of the Substitution shall be fully
paid and no Event of Default (other than an Event of Default which applies only to the Substitution Release Property) shall be
continuing as of the date of consummation of the Substitution;


 


(c)          Intentionally
omitted;


 




    	 	39	 



     


    

 


(d)          Lender
shall have received current Appraisals of the Substitute Property and the Substitution Release Property prepared within ninety
(90) days prior to the date of consummation of the Substitution showing an appraised value for the Substitute Property equal to
or greater than the appraised value of the Substitution Release Property as of the date of such Appraisals;


 


(e)          Lender
shall have received a physical condition report with respect to the Substitute Property or such other evidence, which shall be
in such form, as would typically be required under the Prudent Lender Standard, prepared within ninety (90) days prior to the date
of consummation of the Substitution, which physical conditions report shall not recommend any immediate repairs with respect to
the Substitute Property and shall show that the Substitute Property is in good condition and repair and free of damage or waste,
and is in a physical condition at least equal to that of the Substitution Release Property immediately prior to the date of consummation
of the Substitution or Borrower shall have delivered to Lender an amount equal to 115% of the cost of completing any recommended
work (which sum Lender shall disburse to Borrower to complete such work) and agrees to complete such work within such time as required
by Lender in its reasonable discretion;


 


(f)          Borrower
shall have delivered to Lender evidence reasonably satisfactory to Lender that the Substitute Property: (I) is substantially similar
or better in use and quality to the Substitution Release Property as and (II) is in all material respects in compliance with all
applicable law (including, without limitation, zoning, subdivision, use and building laws);


 


(g)          Borrower
shall have delivered to Lender, and Lender shall have approved in its reasonable discretion, lease(s) with respect to the Substitute
Property, together with an estoppel agreement and/or subordination, non-disturbance and attornment agreement, as may be reasonably
required in accordance with the Prudent Lender Standard in form and substance substantially similar to the estoppel certificate
and the subordination, nondisturbance and attornment agreements received by Lender in connection with the closing of the Loan with
such reasonable changes as may be requested by the applicable tenants;


 


(h)          Borrower
shall have delivered to Lender copies of all current service contracts with respect to the Substitute Property;


 


(i)          Lender
shall have received a Phase I environmental report, prepared by a company reasonably satisfactory to Lender, and reasonably satisfactory
in form and substance to Lender in accordance with the Prudent Lender Standard, dated not more than one hundred twenty (120) days
prior to the date of consummation of the Substitution and, if and to the extent recommended under the Phase I, a Phase II environmental
report reasonably acceptable to Lender in accordance with the Prudent Lender Standard, which concludes that the Substitute Property
does not contain any Hazardous Substances in violation of Environmental Law and is not subject to any significant risk of contamination
in violation of Environmental Law from any off site Hazardous Substances;


 




    	 	40	 



     


    

 


(j)          Borrower
shall have executed, acknowledged and delivered to Lender (I) a Security Instrument, an Assignment of Leases and Rents and UCC-1
Financing Statements with respect to the Substitute Property, together with a letter from Borrower countersigned by a title insurance
company acknowledging receipt of such Security Instrument, Assignment of Leases and Rents and UCC-1 Financing Statement and agreeing
to record or file, as applicable, such Security Instrument, Assignment of Leases and Rents and the UCC-1 Financing Statement in
the applicable recording office of the county in which the Substitute Property is located, and to file a UCC-1 Financing Statement
in the office of the Secretary of State (or other central filing office) of the state in which the applicable Borrower is formed,
so as to effectively create upon such recording and filing a valid and enforceable first priority lien upon the Substitute Property,
in favor of Lender (or such other trustee as may be desired under local law), subject only to the Permitted Encumbrances, (II)
an Environmental Indemnity with respect to the Substitute Property from Borrower, (III) a ratification by any Guarantor of its
obligations under the Loan Documents, and (IV) such other additions to, or modifications or amendments of, the Loan Documents Lender
reasonably deems necessary due to the Substitution. The Security Instrument, Assignment of Leases and Rents, UCC-1 Financing Statements
and Environmental Indemnity shall be the same in form and substance as the counterparts of such documents executed and delivered
with respect to the Substitution Release Property subject to modifications reflecting only the Substitute Property as the Individual
Property and such modifications reflecting the laws of the state in which the Substitute Property is located. The Security Instrument
encumbering the Substitute Property shall secure all amounts then outstanding under the Note, provided that in the event that the
jurisdiction in which the Substitute Property is located imposes a mortgage recording, intangibles or similar tax and does not
permit the allocation of indebtedness for the purpose of determining the amount of such tax payable, the principal amount secured
by such Security Instrument shall be equal to one hundred twenty-five percent (125%) of the Allocated Loan Amount for the Substitute
Property. The percentage of the Loan allocated to the Substitute Property (such amount being hereinafter referred to as the “Substitute
Allocated Loan Amount”) shall equal the Allocated Loan Amount of the Substitution Release Property;


 


(k)          Lender
shall have received (I) to the extent available at commercially reasonable cost and to the extent the Loan continues to be secured
by more than one (1) Property, any “tie-in” or similar endorsement, together with a “first loss” endorsement,
to each Title Insurance Policy insuring the lien of the existing Security Instruments as of the date of consummation of the Substitution
with respect to the Title Insurance Policy insuring the lien of the Security Instrument with respect to the Substitute Property
and (II) a Title Insurance Policy (or a marked, signed and re-dated commitment to issue such Title Insurance Policy) insuring the
lien of the Security Instrument encumbering the Substitute Property, issued by the title company that issued the Title Insurance
Policies insuring the lien of the existing Security Instruments and dated as of the date of consummation of the Substitution, with
reinsurance and direct access agreements that replace such agreements issued in connection with the Title Insurance Policy, if
any, insuring the lien of the Security Instrument encumbering the Substitution Release Property. The Title Insurance Policy issued
with respect to the Substitute Property shall (1) to the extent that the Loan continues to be secured by more than one (1) Property,
either provide coverage in the amount of the Substitute Allocated Loan Amount if the “tie-in” or similar endorsement
described above is available at commercially reasonable cost or, if such endorsement is not available, in an amount equal to one
hundred twenty-five percent (125%) of the Substitute Allocated Loan Amount, (2) insure Lender that the relevant Security Instrument
creates a valid first lien on the Substitute Property encumbered thereby, free and clear of all exceptions from coverage other
than Permitted Encumbrances and standard exceptions and exclusions from coverage (as modified by the terms of any endorsements),
(3) contain such endorsements and affirmative coverages as are then available and are contained in the Title Insurance Policies
insuring the liens of the existing Security Instruments to the extent available at a commercially reasonable cost, and such other
endorsements or affirmative coverage that a prudent institutional mortgage lender would reasonably require, and (4) name Lender
and its successors and assigns as the insured. Lender also shall have received copies of paid receipts or other evidence showing
that all premiums in respect of such endorsements and Title Insurance Policies have been paid;


 




    	 	41	 



     


    

 


(l)          Lender
shall have received a current survey for the Substitute Property, certified to the title company and Lender and its successors
and assigns, in the same form and having the same content as the certification of the survey of the Substitution Release Property
or as otherwise acceptable to Lender in its reasonable discretion (taking into account the extent any such content is not then
customary in the state in which the Substitute Property is located) prepared by a professional land surveyor licensed in the state
in which the Substitute Property is located. Such survey shall reflect the same legal description contained in the Title Insurance
Policy relating to such Substitute Property and shall include, among other things, a metes and bounds description of the real property
comprising part of such Substitute Property (unless such real property has been designated by lot number on a recorded plat). The
surveyor’s seal shall be affixed to each survey and each survey shall certify whether or not the surveyed property is located
in a “one-hundred-year flood hazard area”;


 


(m)          Lender
shall have received valid certificates of insurance indicating that the requirements for the policies of insurance required under
this Agreement have been satisfied with respect to the Substitute Property and evidence of the payment of all Insurance Premiums
payable for the existing policy period;


 


(n)          The
Person transferring the Substitute Property to Borrower shall be solvent and shall be making such transfer on an arm’s length
basis and for fair consideration, and Borrower and such Person shall deliver certifications and evidence to such effect and such
other certifications as Lender shall reasonably require to assure itself that the Substitution does not constitute a fraudulent
conveyance on the part of any Person (assuming such Person was not solvent at the time of the Substitution);


 


(o)          In
the event the Substitution Release Property is subject to a Management Agreement along with one or more additional Properties,
Lender shall have received a certified copy of an amendment to the Management Agreement reflecting the deletion of the Substitution
Release Property and, if the Substitute Property will be managed by the same Manager thereunder, the addition of the Substitute
Property as a property managed pursuant thereto and Manager shall have executed and delivered to Lender an amendment to the Assignment
of Management Agreement reflecting such amendment to the Management Agreement. In the event that the Substitution Release Property
is subject to a Management Agreement relating only to such Substitution Release Property, Lender shall have received a certified
copy of a new Management Agreement for the Substitute Property on substantially the same financial terms as the Management Agreement
for the Substitution Release Property and the Manager thereunder shall have executed and delivered to Lender an Assignment of Management
Agreement with respect to such new Management Agreement on substantially the same terms as used in connection with the Substitution
Release Property or such other terms as would be acceptable in accordance with the Prudent Lender Standard;


 




    	 	42	 



     


    

 


(p)          The
entity which shall be the owner of the Substitute Property following the Substitution shall join in the Loan as a “Borrower”
and shall satisfy all of the requirements of a Borrower under the Loan Documents (including, without limitation, being a Special
Purpose Entity), and Lender shall have received and approved copies of the organizational documents of such new Borrower, all certified
to be true, correct and complete;


 


(q)          Lender
shall have received opinions of counsel satisfying the Prudent Lender Standard and acceptable the Rating Agencies (issued by counsel
satisfying the Prudent Lender Standard and acceptable to the Rating Agencies) (I) stating that the Loan Documents delivered with
respect to the Substitute Property are valid and enforceable in accordance with their terms, subject to the laws applicable to
creditors’ rights and equitable principles, that Borrower is qualified to do business and in good standing under the laws
of the jurisdiction where the Substitute Property is located and including such other opinions as Lender requires which are consistent
with the opinions obtained in connection with the closing of the Loan, and (II) stating that the Loan Documents delivered with
respect to the Substitution were, among other things, duly authorized, executed and delivered and that the execution and delivery
of such Loan Documents and the performance by Borrower of its obligations thereunder will not to the actual knowledge of the person
delivering such opinion, cause a breach of, or a default under, any indenture, mortgage, deed of trust, management agreement, lease,
judgment, decree or order to which Borrower is a party or to which it or its properties are bound and including such other opinions
as Lender reasonably requires which are consistent with the opinions obtained in connection with the closing of the Loan;


 


(r)          The
Substitution shall be permitted under REMIC Requirements in effect as of the consummation of the Substitution, and, if reasonably
required by Lender to confirm the same, Borrower shall (i) deliver to Lender opinions of counsel satisfying the Prudent Lender
Standard and acceptable the Rating Agencies (issued by counsel satisfying the Prudent Lender Standard and acceptable to the Rating
Agencies) (1) stating that the Substitution will not cause (A) the Loan to cease to be a “qualified mortgage” within
the meaning of Section 860G of the Code, either under the provisions of Treasury Regulation Sections 1.860G-2(a)(8) or 1.860G-2(b)
(as such regulations may be amended or superseded from time to time) or under any other provision of the Code or otherwise, and
(B) the failure of any REMIC Trust or any other entity that holds the Note to maintain its tax status and (2) with respect to such
other matters as may be required by Lender and (ii) pay all of Lender’s reasonable out-of-pocket costs and expenses and the
costs and expenses of the Rating Agencies in connection with the Substitution, including, without limitation, reasonable out-of-pocket
costs counsel fees;


 


(s)          Borrower
shall have acquired fee simple title to the Substitution Property, or a leasehold interest in the Substitution Property pursuant
to a ground lease with terms that are generally financeable in connection with a loan that is involved in a Securitization;


 


(t)          Lender
shall have received evidence in writing from any applicable Rating Agency to the effect that the proposed Substitution will not
result in a qualification, reduction, downgrade or withdrawal of any rating initially assigned or to be assigned in such Securitization,
or a waiver from any such rating agency stating that it has declined to review the Substitution;


 




    	 	43	 



     


    

 


(u)          The
Substitution shall be permitted under REMIC Requirements in effect as of the date of consummation of the Substitution;


 


(v)         As
of the date of consummation of the Substitution, the Debt Service Coverage Ratio (based upon the trailing twelve (12) month period)with
respect to the Individual Properties securing the Loan (including the Substitute Property and excluding the Substitution Release
Property) shall be equal to greater than the Debt Service Coverage Ratio (based upon the trailing twelve (12) month period) with
respect to the Individual Properties securing the Loan immediately prior to the consummation of the Substitution;


 


(w)          The
Allocated Loan Amount of the Substitution Release Property, together with the Allocated Loan Amounts of the Substitution Release
Property involved in any prior completed Substitutions does not exceed thirty percent (30%) of the Original Principal Amount as
of the closing date of the Loan;


 


(x)          Unless
otherwise agreed to by Lender, no more than four (4) Substitutions will be permitted, it being agreed that a Substitution involving
multiple properties shall be deemed one (1) Substitution; and


 


(y)          Lender
shall have received such other approvals, opinions, documents and information in connection with the Substitution as reasonably
requested by Lender.


 


Notwithstanding anything
to the contrary contained herein or in any other Loan Document, if the Loan is included in a REMIC Trust and immediately after
the Substitution the ratio of the unpaid principal balance of the Loan to the value of the remaining Property (taking into account
only the real property and excluding personal property and going concern value, if any) is greater than 125% (such value to be
determined, in Lender’s sole discretion, by any commercially reasonable method permitted to a REMIC Trust), the Outstanding
Principal Balance must be paid down by a “qualified amount" under Internal Revenue Service Revenue Procedure 2010-30
(as the same may be modified, supplemented, superseded or amended from time to time), unless Lender receives an opinion of counsel
(in form and substance, and from counsel, each acceptable to Lender) 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 Security
Instrument. Any such prepayment shall be deemed a voluntary prepayment and shall be subject to Section 2.5 hereof.


 


Notwithstanding anything
to the contrary contained in this Section 2.6.3, the parties hereto hereby acknowledge and agree that after the Securitization
of the Loan (or any portion thereof or interest therein), with respect to any Lender approval or similar discretionary rights over
any matters contained in this Section 2.6.3, such rights shall be construed such that Lender shall only be permitted to
withhold its consent or approval with respect to any such matters if the same fails to meet the Prudent Lender Standard.


 




    	 	44	 



     


    

 


2.6.4      Partial
Release – Munster Release Parcel. In connection with a settlement of the pending condemnation action with respect
to the Munster Release Parcel materially in accordance with the information provided by Borrower to Lender in connection with the
closing of the Loan, Lender agrees that it shall execute and deliver to Borrower the release of the Munster Release Parcel described
in this section within ten (10) Business Days after the date of Lender’s receipt of Borrower’s written request for
such release so long as (a) the front page of the request package to Lender is marked, in not less than fourteen (14) point bold
face type, underlined and using all capital letters, as follows: “LENDER’S RESPONSE IS REQUIRED WITHIN TEN (10)
BUSINESS DAYS OF RECEIPT OF THIS NOTICE PURSUANT TO THE TERMS OF A LOAN AGREEMENT BETWEEN THE UNDERSIGNED AND LENDER”,
and (b) such request package also contains the requested release, which satisfies the requirements of the second sentence of Section
2.6.1(b) hereof, of the Munster Release Parcel from the lien of the applicable Security Instrument (and related Loan Documents),
together with executed copies of all documents Borrower is obligated to deliver to the applicable Governmental Authority in connection
with such settlement. Borrower shall reimburse Lender for any reasonable out-of-pocket costs and expenses Lender incurs arising
from such release (including reasonable out-of-pocket attorneys’ fees and expenses) and Borrower shall pay all recording
charges, filing fees, taxes or other expenses payable in connection with such release.


 


Section 2.7           Clearing
Account/Cash Management.


 


2.7.1      Clearing
Account. (a) During the term of the Loan, Borrower shall establish and maintain an Eligible Account (the “Clearing
Account”) with Clearing Bank for the benefit of Lender, which Clearing Account shall be under the sole dominion and control
of Lender. The Clearing Account shall be entitled in the name of Borrower for the benefit of Lender. Borrower hereby grants to
Lender a first-priority security interest in the Clearing Account and all deposits at any time contained therein and the proceeds
thereof and shall take all actions necessary to maintain in favor of Lender a perfected first priority security interest in the
Clearing Account, including filing UCC-1 Financing Statements and continuations thereof. Lender and Servicer shall have the sole
right to make withdrawals from the Clearing Account. All costs and expenses for establishing and maintaining the Clearing Account
shall be paid by Borrower. All monies on deposit in the Clearing Account shall be deemed additional security for the Debt. The
Clearing Account Agreement and Clearing Account shall remain in effect until the Loan has been repaid in full.


 


(b)          Borrower
shall, or shall cause Manager to, (i) within ten (10) days of the Closing Date with respect to Leases in existence on the
date hereof and (ii) simultaneously with the execution of any Lease entered into after the date hereof, deliver Tenant Direction
Letters to all Tenants to deliver all Rents payable under their respective Leases directly to the Clearing Account. Without the
prior written consent of Lender, neither Borrower nor Manager shall (i) terminate, amend, revoke or modify any Tenant Direction
Letter in any manner or (ii) direct or cause any Tenant to pay any amount in any manner other than as provided in the Tenant
Direction Letter. Borrower shall, and shall cause Manager to, deposit all amounts received by Borrower or Manager constituting
Rents into the Clearing Account within one (1) Business Day after receipt thereof. Until so deposited, all Rents received by Borrower
or Manager shall be held in trust for the benefit of Lender and shall not be commingled with any other funds or property of Borrower
or Manager.


 


(c)          Borrower
shall obtain from Clearing Bank its agreement to transfer on each Business Day all amounts on deposit in the Clearing Account at
the direction of Borrower unless a Cash Sweep Period is in effect, in which case such funds shall be transferred to the Cash Management
Account.


 




    	 	45	 



     


    

 


(d)          Upon
the occurrence of an Event of Default or any Bankruptcy Action of Borrower, Lender may, in addition to any and all other rights
and remedies available to Lender, apply any sums then present in the Clearing Account to the payment of the Debt in any order in
its discretion.


 


(e)          The
Clearing Account shall not be commingled with other monies held by Borrower, Manager or Clearing Bank.


 


(f)          Borrower
shall not further pledge, assign or grant any security interest in the Clearing Account or the monies deposited therein or permit
any lien or encumbrance to attach thereto, or any levy to be made thereon, or any UCC-1 Financing Statements, except those naming
Lender as the secured party, to be filed with respect thereto.


 


(g)          Borrower
shall indemnify Lender and hold Lender harmless from and against any and all actions, suits, claims, and demands, and actual out-of-pocket
liabilities, losses, damages (excluding, in all events, consequential, punitive, special, exemplary and indirect damages), obligations
and costs and expenses (including litigation costs and reasonable out-of-pocket attorneys’ fees and expenses) arising from
or in any way connected with the Clearing Account or the Clearing Account Agreement (unless arising from the gross negligence,
fraud or willful misconduct of Lender) or the performance of the obligations for which the Clearing Account was established.


 


(h)          Upon
(i) Clearing Bank ceasing to be an Eligible Institution, (ii) the Clearing Account ceasing to be an Eligible Account,
(iii) any resignation by Clearing Bank or termination of the Clearing Account Agreement by Clearing Bank or Lender or (iv) the
occurrence and continuance of an Event of Default, Borrower shall, within fifteen (15) days of Lender’s written request,
(A) terminate the existing Clearing Account Agreement, (B) appoint a new Clearing Bank (which such Clearing Bank shall
(I) be an Eligible Institution, (II) other than during the continuance of an Event of Default, be selected by Borrower
and approved by Lender and (III) during the continuance of an Event of Default, be selected by Lender), (C) cause such
Clearing Bank to open a new Clearing Account (which such account shall be an Eligible Account) and enter into a new Clearing Account
Agreement with Lender on substantially the same terms and conditions as the previous Clearing Account Agreement and (D) send
any notices required pursuant to the terms hereof relating to such new Clearing Account Agreement and Clearing Account and new
Tenant Direction Letters. Borrower constitutes and appoints Lender its true and lawful attorney-in-fact with full power of substitution
to complete or undertake any action required of Borrower under this Section 2.7.1 in the name of Borrower in the event
Borrower fails to do the same. Such power of attorney shall be deemed to be a power coupled with an interest and cannot be revoked.


 




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2.7.2     Cash
Management Account. (a) Upon the occurrence of a Cash Sweep Event, a segregated Eligible Account (the “Cash
Management Account”) shall be established and maintained with Agent in Borrower’s name for the benefit of Lender,
which Cash Management Account shall be under the sole dominion and control of Lender. Borrower hereby grants to Lender a first
priority security interest in the Cash Management Account and all deposits at any time contained therein and the proceeds thereof
and shall take all actions necessary to maintain in favor of Lender a perfected first priority security interest in the Cash Management
Account, including filing UCC-1 Financing Statements and continuations thereof. Lender and Servicer shall have the sole right to
make withdrawals from the Cash Management Account and all reasonable costs and expenses for establishing and maintaining the Cash
Management Account shall be paid by Borrower.


 


(b)          The
insufficiency of funds on deposit in the Cash Management Account shall not relieve Borrower from the obligation to make any payments,
as and when due pursuant to this Agreement and the other Loan Documents, and such obligations shall be separate and independent,
and not conditioned on any event or circumstance whatsoever.


 


(c)          All
funds on deposit in the Cash Management Account during the continuance of an Event of Default or any Bankruptcy Action of Borrower
may be applied by Lender in such order and priority as Lender shall determine.


 


(d)          Borrower
hereby agrees that Lender may, at no cost or expense of Borrower, modify the Cash Management Agreement for the sole purpose of
establishing additional sub-accounts in connection with any payments otherwise required under this Agreement and the other Loan
Documents and Lender shall provide notice thereof to Borrower.


 


2.7.3     Payments
Received under the Cash Management Agreement. Notwithstanding anything to the contrary contained in this Agreement or the
other Loan Documents, and provided no Event of Default has occurred and is continuing, Borrower’s obligations with respect
to the payment of the Monthly Debt Service Payment Amount and amounts required to be deposited into the Reserve Funds, if any,
shall be deemed satisfied to the extent sufficient amounts are deposited in the Cash Management Account to satisfy such obligations
pursuant to this Agreement on the dates each such payment is required, regardless of whether any of such amounts are so applied
by Lender.


 


ARTICLE III – INTENTIONALLY OMITTED



 


ARTICLE IV - REPRESENTATIONS AND WARRANTIES


 


Section 4.1           Borrower
Representations. Borrower represents and warrants as of the date hereof that:


 


4.1.1     Organization.
Each Borrower has been duly organized and is validly existing and in good standing with requisite power and authority to own the
applicable Individual Property and to transact the businesses in which it is now engaged. Borrower is duly qualified to do business
and is in good standing in the jurisdiction in which the applicable Individual Property is located and each other jurisdiction
where it is required to be so qualified in connection with its businesses and operations. Borrower possesses all rights, licenses,
permits and authorizations, governmental or otherwise, necessary to entitle it to own the applicable Individual Property and to
transact the businesses in which it is now engaged, and the sole business of Borrower is the ownership, management and operation
of the applicable Individual Property. The direct and indirect ownership interests in Borrower are as set forth on the organizational
chart attached hereto as Schedule III, and the direct and indirect ownership interests in Borrower or the Property do not
include any Prohibited Entity/Ownership Structure.


 




    	 	47	 



     


    

 


4.1.2     Proceedings.
Borrower has taken all necessary action to authorize the execution, delivery and performance of this Agreement and the other Loan
Documents. This Agreement and such other Loan Documents have been duly executed and delivered by or on behalf of Borrower and constitute
legal, valid and binding obligations of Borrower enforceable against Borrower in accordance with their respective terms, except
as such enforcement may be limited by (i) bankruptcy, insolvency, fraudulent transfer, reorganization or other similar laws affecting
the enforcement of creditors’ rights generally, and (ii) general principles of equity (regardless of whether enforcement
is considered in a proceeding in equity or at law).


 


4.1.3     No
Conflicts. The execution, delivery and performance of this Agreement and the other Loan Documents by Borrower will not
conflict with or result in a breach of any of the terms or provisions of, or constitute a default under, or result in the creation
or imposition of any lien, charge or encumbrance (other than pursuant to the Loan Documents) upon any of the property or assets
of Borrower pursuant to the terms of any indenture, mortgage, deed of trust, loan agreement, partnership agreement, management
agreement or other agreement or instrument to which Borrower is a party or by which any of the Property or Borrower’s assets
is subject, nor will such action result in any violation of the provisions of any statute or any order, rule or regulation of any
Governmental Authority having jurisdiction over Borrower or any of Borrower’s properties or assets, and any consent, approval,
authorization, order, registration or qualification of or with any court or any such Governmental Authority required for the execution,
delivery and performance by Borrower of this Agreement or any other Loan Documents has been obtained and is in full force and effect.


 


4.1.4     Litigation.
There are no actions, suits or proceedings at law or in equity, arbitrations, or governmental investigations by or before any Governmental
Authority or other agency now pending, filed, or, to Borrower’s knowledge, threatened against or affecting Borrower, Guarantor
or the Property or any portion thereof, which would reasonably be expected to materially adversely affect (a) title to the
Property or any portion thereof (excepting the Munster Release Parcel); (b) the validity or enforceability of the Security Instruments
(excepting with respect to the Munster Release Parcel); (c) Borrower’s ability to perform under the Loan; (d) Guarantor’s
ability to perform under the Guaranty; (e) the use, operation or value of the Property or any portion thereof; (f) the principal
benefit of the security intended to be provided by the Loan Documents; (g) the current ability of the Property to generate Net
Cash Flow sufficient to service the Loan; or (h) the current principal use of the Property or any portion thereof. Lender acknowledges
the existence of the pending condemnation action with respect to the Munster Release Parcel, and Borrower acknowledges that such
condemnation action does not affect its representations made in items (a)-(h) above.


 


4.1.5     Agreements.
Borrower is not a party to any agreement or instrument or subject to any restriction which would reasonably be expected to materially
and adversely affect Borrower or the Property (or any portion thereof), or Borrower’s business, properties or assets, operations
or condition, financial or otherwise. 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 agreement or instrument to which it is a party or by which
Borrower or the Property (or any portion thereof) is bound. Borrower has no material financial obligation under any indenture,
mortgage, deed of trust, loan agreement or other agreement or instrument to which Borrower is a party or by which Borrower or the
Property (or any portion thereof) is otherwise bound, other than (a) obligations incurred in the ordinary course of the operation
of the Property as permitted pursuant to clause (xxiii) of the definition of “Special Purpose Entity” set forth
in Section 1.1 hereof and (b) obligations under the Loan Documents.


 




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4.1.6      Title.
Borrower has a insurable leasehold estate in and to each Ground Lease Property, insurable fee simple title to the real property
comprising part of the Property and good title to the balance of the Property, free and clear of all Liens whatsoever except the
Permitted Encumbrances, such other Liens as may be expressly permitted pursuant to the Loan Documents and the Liens created by
the Loan Documents. The Permitted Encumbrances in the aggregate do not materially and adversely affect the value, operation or
use of the Property (or any portion thereof) as currently used or Borrower’s ability to repay the Loan. Each Security Instrument,
when properly recorded in the appropriate records, together with any Uniform Commercial Code financing statements required to be
filed in connection therewith, will create (a) a valid, perfected first priority lien on the applicable Individual Property, subject
only to Permitted Encumbrances and the Liens created by the Loan Documents and (b) 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 any applicable Permitted Encumbrances, such other Liens as are permitted pursuant to the Loan Documents and the
Liens created by the Loan Documents.


 


4.1.7      Solvency.
Borrower has (a) not entered into this transaction or executed the Note, this Agreement or any other Loan Documents with the actual
intent to hinder, delay or defraud any creditor and (b) received reasonably equivalent value in exchange for its obligations under
such 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 will, immediately following the making of the
Loan, 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 debt and liabilities (including contingent liabilities and other commitments)
beyond its ability to pay such debt 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 obligations of Borrower). No petition in bankruptcy has been filed
against Borrower or any Person Controlling Borrower in the last seven (7) years, and neither Borrower nor any Person Controlling
Borrower in the last seven (7) years 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 Persons Controlling Borrower 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 property, and Borrower has no knowledge of any Person contemplating the filing of any such petition against it or such
constituent Persons.


 




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4.1.8      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 has not been disclosed to Lender which adversely
affects, nor as far as Borrower can foresee, would reasonably be expected to adversely affect, the Property or the business, operations
or condition (financial or otherwise) of Borrower (provided that the foregoing is meant to relate specifically to Borrower and
the Property and not, by way of example only, to the economy of the United States or the location of the Property or the medical
profession).


 


4.1.9     No
Plan Assets. Borrower does not sponsor, is not obligated to contribute to, and is not itself an “employee benefit
plan,” as defined in Section 3(3) of ERISA, subject to Title I of ERISA or Section 4975 of the Code, and none of the assets
of Borrower 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 by Section 3(42) of ERISA. In addition, (a) Borrower is not a “governmental plan” within
the meaning of Section 3(32) of ERISA and (b) transactions by or with Borrower are not subject to any state or other statute ,
regulation or other restriction regulating investments of, or fiduciary obligations with respect to, governmental plans within
the meaning of Section 3(32) of ERISA which is similar to the provisions of Section 406 of ERISA or Section 4975 of the Code which,
as of the date hereof, prohibit or otherwise restrict the transactions contemplated by this Agreement, including the exercise by
Lender of any of its rights under the Loan Documents.


 


4.1.10   Compliance.
Except as disclosed in the separate zoning report for each Individual Property delivered to Lender in connection with the closing
of the Loan, Borrower and each Individual Property and the use thereof comply in all material respects with all applicable Legal
Requirements, including building and zoning ordinances and codes. Borrower is not in default or violation of any order, writ, injunction,
decree or demand of any Governmental Authority. There has not been committed by Borrower or, to Borrower’s knowledge, any
other Person in occupancy of or involved with the operation or use of the Property any act or omission affording the federal government
or any other Governmental Authority the right of forfeiture as against the Property or any part thereof or any monies paid in performance
of Borrower’s obligations under any of the Loan Documents. Except as disclosed in the separate property condition report
for each Individual Property delivered to Lender in connection with the closing of the Loan, the Improvements at each Individual
Property were in material compliance with applicable law on the Closing Date.


 


4.1.11   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 (a) except for financial data with respect to dates prior to the date Borrower
acquired title to the applicable Individual Property, accurately represent the financial condition of Borrower and the Property,
as applicable, as of the date of such reports, and (b) to the extent prepared or audited by an independent certified public accounting
firm, have been prepared in accordance with GAAP throughout the periods covered, except as disclosed therein. Except for Permitted
Encumbrances, 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
material adverse effect on the Property (or any portion thereof) or the current operation thereof, except as referred to or reflected
in said financial statements. Since the date of such financial statements, there has been no material adverse change in the financial
condition, operations or business of Borrower from that set forth in said financial statements.


 




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4.1.12   Condemnation.
Except (i) as disclosed in the separate zoning report for each Individual Property delivered to Lender in connection with the closing
of the Loan and (ii) with respect to the pending condemnation action of the Munster Release Parcel, no Condemnation or other similar
proceeding has been commenced or, to Borrower’s knowledge, is threatened with respect to all or any portion of the Property
or for the relocation of roadways providing access to any Individual Property.


 


4.1.13   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.


 


4.1.14   Utilities
and Public Access. Each Individual Property has rights of access to public ways and is served by water, sewer, sanitary
sewer and storm drain facilities adequate to service the applicable Individual Property for its intended uses. All public utilities
necessary or convenient to the full use and enjoyment of each Individual Property are located either in the public right of way
abutting the applicable Individual Property (which are connected so as to serve the applicable Individual Property without passing
over other property) or in recorded easements serving and appurtenant to the applicable Individual Property. All roads necessary
for the use of each Individual Property for its current purposes have been completed and dedicated to public use and accepted by
all Governmental Authorities.


 


4.1.15   Not
a Foreign Person. Borrower is not a “foreign person” within the meaning of §1445(f)(3) of the Code.


 


4.1.16   Separate
Lots. Each Individual Property is comprised of one (1) or more parcels which constitute a separate tax lot or lots and
does not constitute a portion of any other tax lot not a part of the applicable Individual Property.


 


4.1.17   Assessments.
There are no pending or, to Borrower’s knowledge, proposed special or other assessments for public improvements or otherwise
affecting the Property of any portion thereof, nor are there any contemplated improvements to the Property (or any portion thereof)
that would reasonably be expected to result in such special or other assessments.


 


4.1.18   Enforceability.
The Loan Documents are enforceable by Lender (or any subsequent holder thereof) in accordance with their respective terms, subject
to principles of equity and bankruptcy, insolvency and other laws generally applicable to creditors’ rights and the enforcement
of debtors’ obligations. 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 (subject to principles of equity and bankruptcy,
insolvency and other laws generally affecting creditors’ rights and the enforcement of debtors’ obligations), and neither
Borrower nor Guarantor has asserted any right of rescission, set off, counterclaim or defense with respect thereto.


 




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4.1.19   No
Prior Assignment. There are no prior assignments of the Leases or any portion of the Rents due and payable or to become
due and payable which are presently outstanding.


 


4.1.20   Insurance.
No claims have been made or are currently pending, outstanding or otherwise remain unsatisfied with respect to the Properties under
any of the Policies, and neither Borrower nor any other Person, has done, by act or omission, anything which would impair the coverage
of any of the Policies.


 


4.1.21   Use
of Property. Each Individual Property is used exclusively for medical office purposes and other appurtenant and related
uses.


 


4.1.22   Certificate
of Occupancy; Licenses. All certifications, permits, franchises, licenses, consents, authorizations, and approvals, including,
certificates of completion and occupancy permits, required for the legal use, occupancy and operation of each Individual Property
have been obtained and are in full force and effect. The use being made of each Individual Property is in conformity with the certificate
of occupancy issued for the applicable Individual Property.


 


4.1.23   Flood
Zone. None of the Improvements on the Property (or any portion thereof) are located in an area as identified by the Federal
Emergency Management Agency as an area having special flood hazards, or, if so located, the flood insurance required pursuant to
Section 6.1(a) is in full force and effect with respect to the applicable Individual Property.


 


4.1.24   Physical
Condition. Except as disclosed in the separate property condition report for each Individual Property delivered to Lender
in connection with the closing of the Loan, each Individual 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, is in good condition, order
and repair in all material respects; there exists no structural or other material defects or damages in the Property (or any portion
thereof), 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 of any termination or threatened termination of any policy of insurance
or bond.


 


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


 




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4.1.26   Leases.
The Property is not subject to any leases other than the Leases described in the rent roll attached hereto as Schedule I
and made a part hereof, which rent roll is true, complete and accurate in all respects as of the Closing Date. Borrower is the
owner and lessor of landlord’s interest in the Leases. No Person has any possessory interest in the Property (or any portion
thereof) or right to occupy the same except under and pursuant to the provisions of the Leases. The current Leases are in full
force and effect and, except as set forth on the rent roll attached hereto as Schedule I or in any tenant estoppel certificate
delivered to Lender or in the document entitled Aged Delinquencies dated 3/26/2018 delivered to Lender, there are no defaults thereunder
by either party and there are no conditions that, with the passage of time or the giving of notice, or both, would constitute defaults
thereunder. Except as set forth in any tenant estoppel certificate delivered to Lender, or as otherwise disclosed to Lender in
the Lease or by Borrower, no Rent has been paid more than one (1) month in advance of its due date. All security deposits are held
by Borrower in accordance with applicable law. Except as set forth in any tenant estoppel certificate delivered to Lender, or as
otherwise disclosed to Lender in the Lease or by Borrower, all work to be performed by Borrower under each Lease has been performed
as required and has been accepted by the applicable Tenant, and 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.
There has been no prior sale, transfer or assignment, hypothecation or pledge of any Lease or of the Rents received therein which
is outstanding. To Borrower’s knowledge, no Tenant listed on Schedule I has assigned its Lease or except as set
forth in any tenant estoppel certificate delivered to Lender, or as otherwise disclosed to Lender in the Lease or by Borrower,
sublet all or any portion of the premises demised thereby, no such Tenant holds its leased premises under assignment. Except as
disclosed to Lender or as set forth in the Leases, 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. Except as disclosed
to Lender or as set forth in the Leases, no Tenant under any Lease has any right or option for additional space in the Improvements.


 


4.1.27   Survey.
To Borrower’s knowledge, each Survey for each Individual Property delivered to Lender in connection with this Agreement does
not fail to reflect any material matter affecting the applicable Individual Property or the title thereto. Lender acknowledges
its awareness of the matters disclosed to it in the materials provided by Borrower to Lender in connection with the pending condemnation
action of the Munster Release Parcel.


 


4.1.28   Inventory.
Borrower is the owner of all of the Equipment, Fixtures and Personal Property (as such terms are defined in the Security Instrument)
located on or at the Property and shall not lease any Equipment, Fixtures or Personal Property other than as permitted hereunder.
All of the Equipment, Fixtures and Personal Property are sufficient to operate the Property in the manner required hereunder and
in the manner in which it is currently operated.


 


4.1.29   Filing
and Recording Taxes. All transfer taxes, deed stamps, intangible taxes or other amounts in the nature of transfer taxes
required to be paid by any Person under applicable Legal Requirements have been paid. All mortgage, mortgage recording, stamp,
intangible or other similar tax required to be paid by any Person under applicable Legal Requirements currently in effect in connection
with the execution, delivery, recordation, filing, registration, perfection or enforcement of any of the Loan Documents, including
the Security Instrument, have been paid.


 




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4.1.30   Special
Purpose Entity/Separateness/No Prohibited Entity/Ownership Structure. (a) Until the Debt has been paid in full, Borrower
hereby represents, warrants and covenants that (i) Borrower is, shall be and shall continue to be a Special Purpose Entity, (ii)
no direct ownership interests in Borrower or the Property shall include any Prohibited Entity/Ownership Structure, and (iii) Guarantor
has implemented procedures to confirm that no direct or indirect ownership interests in Guarantor shall include any Prohibited
Entity/Ownership Structure.


 


(b)          The
representations, warranties and covenants set forth in Section 4.1.30(a) and Section 4.1.30(c) shall survive for
so long as any amount remains payable to Lender under this Agreement or any other Loan Document.


 


(c)          Borrower
hereby represents and warrants to Lender that:


 


1.          Borrower
is and always has been duly formed and validly existing in the state in which it was formed and in any other jurisdictions where
it is qualified to do business;


 


2.          Borrower
has no judgments or liens of any nature against it except for tax liens, liens created by any of the Loan Documents and liens encumbering
the Property that will be satisfied with the proceeds of the Loan;


 


3.          Borrower
is in compliance with all laws, regulations and orders applicable to Borrower and has received all permits necessary for Borrower
to operate and for which a failure to possess would materially and adversely affect the condition, financial or otherwise, of Borrower;


 


4.          Borrower
is not aware of any pending or threatened litigation involving Borrower that, if adversely determined, would reasonably be expected
to materially adversely affect the condition (financial or otherwise) of Borrower, or the condition or ownership of the property
owned by Borrower;


 


5.          Borrower
is not involved in any dispute with any taxing authority other than customary tax certiorari proceedings;


 


6.          Borrower
has paid or has caused to be paid all real estate taxes that are due and payable with respect to the Property unless otherwise
being contested pursuant to the Loan Documents;


 


(d)          Borrower
covenants that in connection with any Additional Insolvency Opinion delivered in connection with this Agreement it shall provide
an updated certification regarding compliance with the facts and assumptions made therein.


 




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(e)          Borrower
covenants and agrees that Borrower shall provide Lender with thirty (30) days’ prior written notice prior to the removal
of an Independent Director of any of Borrower.


 


4.1.31   Management
Agreement. The Management Agreement is in full force and effect and there is no default beyond applicable notice and grace
periods by Borrower, or to Borrower’s knowledge, Manager. The Management Agreement was entered into on commercially reasonable
terms.


 


4.1.32   Illegal
Activity. No portion of the Property has been or will be purchased with proceeds of any illegal activity.


 


4.1.33   Intentionally
Omitted.


 


4.1.34   Investment
Company Act. Borrower is not (a) an “investment company” or a company “controlled” by an “investment
company,” within the meaning of the Investment Company Act of 1940, as amended; (b) a “holding company” or a
“subsidiary company” of a “holding company” or an “affiliate” of either a “holding company”
or a “subsidiary company” within the meaning of the Public Utility Holding Company Act of 2005, as amended; or (c) subject
to any other federal or state law or regulation which purports to restrict or regulate its ability to borrow money.


 


4.1.35   Embargoed
Person. As of the date hereof and at all times throughout the term of the Loan, including after giving effect to any Transfers
permitted pursuant to the Loan Documents, (a) none of the funds or other assets of Borrower and Guarantor constitute property of,
or are beneficially owned, directly or, to Borrower’s knowledge, indirectly, by any Embargoed Person; (b) to Borrower’s
knowledge, no Embargoed Person has any interest of any nature whatsoever in Borrower or Guarantor, as applicable, with the result
that the investment in Borrower or Guarantor, as applicable (whether directly or indirectly), is prohibited by law or the Loan
is in violation of law; and (c) none of the funds of Borrower or Guarantor, as applicable, have been derived from any unlawful
activity with the result that the investment in Borrower or Guarantor, as applicable (whether directly or indirectly), is prohibited
by law or the Loan is in violation of law.


 


4.1.36   Principal
Place of Business; State of Organization. Borrower’s principal place of business as of the date hereof is the address
set forth in the introductory paragraph of this Agreement. Borrower’s state of organization is as set forth in the introductory
paragraph of this Agreement.


 




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4.1.37   Environmental
Representations and Warranties. Except as otherwise disclosed by each Phase I environmental report (or Phase II environmental
report, if required) delivered to Lender in connection with the origination of the Loan (such report is referred to below as the
“Environmental Report”), (a) to Borrower’s knowledge, there are no Hazardous Substances or underground
storage tanks in, on, or under any Individual Property and no Hazardous Substances have been handled, manufactured, generated,
stored, processed, or disposed of on or released or discharged from any Individual Property, in each case, except those that are
(i) in material compliance with Environmental Laws and with permits issued pursuant thereto (to the extent such permits are required
under Environmental Law), or (ii) de-minimis amounts necessary to operate the Property for the purposes set forth in this Agreement
and which are otherwise permitted under and used in material compliance with Environmental Law; (b) to Borrower’s knowledge,
there are no past, present or threatened Releases of Hazardous Substances, which would require the same to be reported to Governmental
Authorities or otherwise remediated, in, on, under or from any Individual Property which have not been remediated in accordance
with Environmental Law or otherwise addressed in a manner so that no violation of Environmental Law exists in connection therewith;
(c) to Borrower’s knowledge, there is no threat of any Release of Hazardous Substances migrating to any Individual Property
in violation of Environmental Law; (d) to Borrower’s knowledge, there is no past or present non-compliance with Environmental
Laws, or with permits issued pursuant thereto, in connection with the Property which has not been remediated in accordance with
Environmental Law or otherwise addressed in a manner so that no violation of Environmental Law exists in connection therewith;
(e) Borrower does not know of, and has not received, any written notice or other written communication from any Governmental Authority
relating to Hazardous Substances or the Remediation thereof, in connection with any Individual Property, of alleged liability of
any Person pursuant to any Environmental Law, in connection with any Individual Property, or any actual or potential administrative
or judicial proceedings in connection with any of the foregoing, in each case, which have not been remediated in accordance with
Environmental Law or otherwise addressed in a manner so that no violation of Environmental Law exists in connection therewith;
and (f) there are no Institutional Controls on or affecting any Individual Property.


 


4.1.38   Cash
Management Account. Borrower hereby represents and warrants to Lender that:


 


(a)          This
Agreement, together with the other Loan Documents, create a valid and continuing security interest (as defined in the Uniform Commercial
Code) in the Clearing Account and Cash Management Account in favor of Lender, which security interest is prior to all other Liens,
other than Permitted Encumbrances, and is enforceable as such against creditors of and purchasers from Borrower. Other than in
connection with the Loan Documents and except for Permitted Encumbrances, Borrower has not sold, pledged, transferred or otherwise
conveyed the Clearing Account or Cash Management Account;


 


(b)          Each
of the Clearing Account and Cash Management Account constitutes a “deposit account” or “securities account”
within the meaning of the Uniform Commercial Code;


 


(c)          Pursuant
and subject to the terms hereof and the other applicable Loan Documents, the Clearing Bank and Agent have agreed to comply with
all instructions originated by Lender, without further consent by Borrower, directing disposition of the Clearing Account and Cash
Management Account and all sums at any time held, deposited or invested therein, together with any interest or other earnings thereon,
and all proceeds thereof (including proceeds of sales and other dispositions), whether accounts, general intangibles, chattel paper,
deposit accounts, instruments, documents or securities;


 


(d)          The
Clearing Account and Cash Management Account are not in the name of any Person other than Borrower, as pledgor, or Lender, as pledgee.
Borrower has not consented to the Clearing Bank and Agent complying with instructions with respect to the Clearing Account and
Cash Management Account from any Person other than Lender; and


 




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(e)          The
Property is not subject to any cash management system (other than pursuant to the Loan Documents), and any and all existing tenant
instruction letters issued in connection with any previous financing have been duly terminated prior to the date hereof.


 


4.1.39    Ground
Leases. With respect to each Ground Lease and each Ground Lease Property:


 


(a)          such
Ground Lease is in full force and effect and unmodified and Borrower has good and valid title to the related Ground Lease Property;


 


(b)          all
rents (including any additional rents and other charges) payable under such Ground Lease have been paid to the extent such rents
were due and payable prior to the date hereof; and


 


(c)          to
Borrower’s knowledge, no default or an event of default exists under the provisions of such Ground Lease or in the performance
of any of the terms, covenants, conditions or warranties thereof on the part of the ground lessee or, to Borrower’s knowledge,
the related Ground Lessor to be observed and performed.


 


Section 4.2           Survival
of Representations. Borrower agrees that all of the representations and warranties of Borrower set forth in Section
4.1 hereof and elsewhere in this Agreement and in the other Loan Documents shall survive for so long as any amount remains
owing to Lender under this Agreement or any of the other Loan Documents by Borrower. All representations, warranties, covenants
and agreements made in this Agreement or in the other Loan Documents by Borrower shall be deemed to have been relied upon by Lender
notwithstanding any investigation heretofore or hereafter made by Lender or on its behalf.


 


Section 4.3           Lender:
No Plan Assets. Lender is not itself an “employee benefit plan,” as defined in Section 3(3) of ERISA, subject
to Title I of ERISA or Section 4975 of the Code, and none of the assets of Lender 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 by Section 3(42) of ERISA. The provisions
of this Section 4.3 shall remain in effect for the term of the Loan and apply to any purchaser or other transferee of the
Loan.


 


ARTICLE V - BORROWER COVENANTS


 


Section 5.1           Affirmative
Covenants. From the date hereof and until payment and performance in full of all obligations of Borrower under the Loan
Documents or the earlier release of the Lien of the Security Instrument encumbering the Property (and all related obligations)
in accordance with the terms of this Agreement and the other Loan Documents, Borrower hereby covenants and agrees with Lender that:


 




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5.1.1     Existence;
Compliance with Legal Requirements. Each Borrower shall do or cause to be done all things necessary to preserve, renew
and keep in full force and effect its existence, rights, licenses, permits, authorizations, and franchises and comply in all material
respects with all Legal Requirements applicable to it and the Property, including all regulations, building and zoning codes and
certificates of occupancy. Borrower has never, and shall not in the future, commit, and Borrower shall exercise commercially reasonable
efforts to ensure that no other Person in occupancy of or involved with the operation or use of the Property shall commit, any
act or omission affording the federal government or any state or local government the right of forfeiture against the Property
or any part thereof or any monies paid in performance of Borrower’s obligations under any of the Loan Documents. Borrower
hereby covenants and agrees not to commit, permit or suffer to exist any act or omission affording such right of forfeiture. Borrower
shall at all times maintain, preserve and protect all franchises and trade names and preserve all the remainder of its property
used or useful in the conduct of its business and shall keep each Individual Property in good working order and repair, and from
time to time make, or cause to be made, all reasonably necessary repairs, renewals, replacements, betterments and improvements
thereto, all as more fully provided in the Loan Documents. Borrower shall keep each Individual Property insured at all times by
financially sound and reputable insurers, to such extent and against such risks, and maintain liability and such other insurance,
as is more fully provided in this Agreement. Borrower shall give prompt notice to Lender of the receipt by Borrower of any notice
related to a violation of any Legal Requirements and of the commencement of any proceedings or investigations which relate to compliance
with Legal Requirements if such violation would reasonably be expected to have a material adverse effect on Borrower or any of
the Property. After prior written notice to Lender, Borrower, at Borrower’s own expense, may contest by appropriate legal
proceeding promptly initiated and conducted in good faith and with due diligence, the validity of any Legal Requirement, the applicability
of any Legal Requirement to Borrower or any Individual Property or any alleged violation of any Legal Requirement, 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 the provisions of any instrument to which Borrower is subject and shall not constitute a default thereunder and such proceeding
shall be conducted in accordance with all applicable statutes, laws and ordinances; (iii) neither the applicable Individual Property
nor any part thereof or interest therein will be in imminent danger of being sold, forfeited, terminated, cancelled or lost; (iv)
Borrower shall promptly upon final determination thereof comply with any such Legal Requirement determined to be valid or applicable
or cure any violation of any Legal Requirement; (v) such proceeding shall suspend the enforcement of the contested Legal Requirement
against Borrower or the applicable Individual Property; and (vi) Borrower shall furnish such security as may be required in the
proceeding, or as may be reasonably requested by Lender, to insure compliance with such Legal Requirement, together with all interest
and penalties payable in connection therewith. Lender may apply any such security, as necessary to cause compliance with such Legal
Requirement at any time when, in the reasonable judgment of Lender, the validity, applicability or violation of such Legal Requirement
is finally established or the applicable Individual Property (or any part thereof or interest therein) shall be in imminent danger
of being sold, forfeited, terminated, cancelled or lost.


 




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5.1.2     Taxes
and Other Charges. Borrower shall pay all Taxes and Other Charges now or hereafter levied or assessed or imposed against
the Property or any part thereof as the same become due and payable; provided, however, Borrower’s obligation to directly
pay Taxes shall be suspended for so long as Borrower complies with the terms and provisions of Section 7.2 hereof. Borrower
shall deliver to Lender receipts for payment or other evidence satisfactory to Lender that the Taxes and Other Charges have been
so paid or are not then delinquent prior to the date on which the Taxes or Other Charges would otherwise be delinquent if not paid
(provided, however, Borrower is not required to furnish such receipts for payment of Taxes and Other Charges if such Taxes and
Other Charges have been paid by Lender pursuant to Section 7.2 hereof). Borrower shall furnish to Lender receipts for the
payment of the Taxes and Other Charges prior to the date the same shall become delinquent (provided, however, Borrower is not required
to furnish such receipts for payment of Taxes if such Taxes have been paid by Lender pursuant to Section 7.2 hereof). Borrower
shall not suffer and shall promptly cause to be paid and discharged any Lien or charge whatsoever which may be or become a Lien
or charge against any Individual Property, and shall promptly pay for all utility services provided to the Property. After prior
written notice to Lender, Borrower, at Borrower’s own expense, may contest by appropriate legal proceeding, promptly initiated
and conducted in good faith and with due diligence, the amount or validity or application in whole or in part of any Taxes or Other
Charges, 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 the provisions of any other instrument to which Borrower is subject and shall not constitute
a default thereunder and such proceeding shall be conducted in accordance with all applicable statutes, laws and ordinances; (iii)
neither the applicable Individual Property nor any part thereof or interest therein will be in imminent danger of being sold, forfeited,
terminated, cancelled 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 such contested Taxes or Other Charges from the applicable Individual Property; (vi) Borrower shall
have set aside adequate reserves for the payment of the Taxes, together with all interest and penalties thereon, unless Borrower
has paid the contested Taxes under protest; and (vii) Borrower shall have furnished the security as is required in the proceeding,
or, if Borrower shall have not previously paid all of the contested Taxes under protest or furnished the security required pursuant
to clause (vii)(A), as may be reasonably requested by Lender to insure the payment of any contested Taxes, together with all interest
and penalties thereon. Lender may pay over any such cash deposit or part thereof 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 applicable Individual
Property (or part thereof or interest therein) shall be in imminent danger of being sold, forfeited, terminated, cancelled or lost
or there shall be any imminent danger of the Lien of the Security Instrument being primed by any related Lien.


 


5.1.3     Litigation.
Borrower shall give prompt written notice to Lender of any litigation or governmental proceedings pending or threatened in writing
against Borrower or Guarantor which would reasonably be expected to materially adversely affect Borrower’s or Guarantor’s
condition (financial or otherwise) or business or the Property (or any portion thereof).


 


5.1.4     Access
to Property. Subject to the rights of tenants, Borrower shall permit agents, representatives and employees of Lender to
inspect the Property or any part thereof at reasonable hours upon reasonable advance notice.


 


5.1.5     Notice
of Material Adverse Change. Borrower shall promptly advise Lender of any material adverse change in Borrower’s or
Guarantor’s condition, financial or otherwise of which Borrower has knowledge; provided, however, that this Section 5.1.5
shall not apply so long as the REIT remains subject to filing periodic reports with the United States Securities and Exchange Commission
(i.e., Forms 10-K, 10Q and 8-K) and the REIT remains in Control of Borrower.


 




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5.1.6     Cooperate
in Legal Proceedings. Borrower shall cooperate with Lender with respect to any proceedings before any court, board or other
Governmental Authority which would reasonably be expected to materially and adversely 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.


 


5.1.7     Perform
Loan Documents. Borrower shall observe, perform and satisfy all the terms, provisions, covenants and conditions of, and
shall pay when due all costs, fees and expenses to the extent required under the Loan Documents 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 written consent of Lender.


 


5.1.8      Award
and Insurance Benefits. Borrower shall cooperate with Lender in obtaining for Lender the benefits of any Awards or Insurance
Proceeds lawfully or equitably payable in connection with the Property (or any portion thereof), and Lender shall be reimbursed
for any reasonable out-of-pocket expenses incurred in connection therewith (including reasonable out-of-pocket attorneys’
fees and disbursements, and the payment by Borrower of the expense of an appraisal on behalf of Lender in case of Casualty or Condemnation
affecting the Property or any part thereof) out of such Insurance Proceeds.


 


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


 


(a)          permit
Lender to inspect at Borrower’s offices 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 in Borrower’s possession or readily available to it at no material out-of-pocket cost (subject,
however, with respect to those which are by their nature confidential or subject to a privilege of confidentiality, to Lender’s
delivery of a confidentiality agreement acceptable to Lender in it’s reasonable discretion) required to be furnished by Borrower
pursuant to the terms of the Loan Documents or which are reasonably requested by Lender in connection therewith;


 


(b)          execute
and deliver to Lender such documents, instruments, certificates, assignments and other writings, and do such other acts necessary,
to evidence, preserve or protect the collateral at any time securing or intended to secure the obligations of Borrower under the
Loan Documents, 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 shall reasonably require from time to
time provided that Borrower’s rights are not reduced or obligations increased.


 




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5.1.10   Principal
Place of Business, State of Organization. Borrower shall not cause or permit any change to be made in its name, identity
(including its trade name or names), place of organization or formation (as set forth in Section 4.1.36 hereof) or Borrower’s
corporate or partnership or other structure unless Borrower shall have first notified Lender in writing of such change at least
thirty (30) days prior to the effective date of such change, and shall have first taken all action required by Lender for the purpose
of perfecting or protecting the lien and security interests of Lender pursuant to this Agreement, and the other Loan Documents
and, in the case of a change in Borrower’s structure, without first obtaining the prior written consent of Lender, which
consent may be given or denied in Lender’s reasonable discretion. Upon Lender’s request, Borrower shall, at Borrower’s
sole cost and expense, execute and deliver additional security agreements and other instruments which may be necessary to effectively
evidence or perfect Lender’s security interest in the Property (or any portion thereof) as a result of such change of principal
place of business or place of organization. Borrower’s principal place of business and chief executive office, and the place
where Borrower keeps its books and records, including recorded data of any kind or nature, regardless of the medium or recording,
including software, writings, plans, specifications and schematics, has been for the preceding four months (or, if less, the entire
period of the existence of Borrower) and will continue to be the address of Borrower set forth at the introductory paragraph of
this Agreement (unless Borrower notifies Lender in writing at least thirty (30) days prior to the date of such change). Borrower
shall promptly notify Lender of any change in its organizational identification number. If Borrower does not now have an organizational
identification number and later obtains one, Borrower promptly shall notify Lender of such organizational identification number.


 


5.1.11   Financial
Reporting. (a) Borrower shall keep and maintain or shall cause to be kept and maintained on a Fiscal Year basis, in accordance
with the requirements for a Special Purpose Entity set forth herein and GAAP (or such other accounting basis reasonably acceptable
to Lender), proper and accurate books, records and accounts reflecting all of the financial affairs of Borrower and all items of
income and expense in connection with the operation of each Individual Property. Lender shall have the right from time to time
at all times during normal business hours upon reasonable notice to examine such books, records and accounts at the office of Borrower
or any other Person maintaining such books, records and accounts and to make such copies or extracts thereof as Lender shall desire.
During the continuance of an Event of Default, Borrower shall pay any costs and expenses incurred by Lender to examine Borrower’s
accounting records with respect to each Individual Property, as Lender shall reasonably determine to be necessary or appropriate
in the protection of Lender’s interest.


 


(b)          Commencing
in 2019 (for the fiscal year ending December 31, 2018), Borrower shall furnish to Lender annually, within one-hundred (100) days
following the end of each Fiscal Year of Borrower, a complete copy of Borrower’s annual financial statements certified by
the chief financial officer of Healthcare Trust, Inc., prepared in accordance with GAAP (or such other accounting basis acceptable
to Lender) covering each Individual Property for such Fiscal Year and containing statements of profit and loss for Borrower and
each Individual Property, an annual rent roll and a balance sheet for Borrower. If Borrower consists of more than one entity, said
financial statements shall be in the form of an annual combined balance sheet of the Borrower entities (and no other entities),
together with the related combined statements of operations, members’ capital and cash flows, including a combining balance
sheet and statement of income for the Individual Properties on a combined basis. Such statements shall set forth the financial
condition and the results of operations for each Individual Property for such Fiscal Year, and shall include amounts representing
annual net operating income, Net Cash Flow, gross income, and operating expenses. Borrower shall cause Healthcare Trust, Inc. to
furnish to Lender annually, within one hundred (100) days following the end of each Fiscal Year of Healthcare Trust, Inc., independent
certified public accountant audited financial statements (10-K).


 




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(c)          Commencing
with the end of the first calendar quarter of 2018 (for the items required below related to the first calendar quarter of 2018),
Borrower shall furnish, or cause to be furnished, to Lender on or before fifty (50) days after the end of each calendar quarter
the following items, accompanied by an Officer’s Certificate stating that such items are true, correct, accurate, and complete
and fairly present the financial condition and results of the operations of Borrower and each Individual Property (subject to normal
year-end adjustments) as applicable, all prepared in accordance with GAAP (or such other accounting basis acceptable to Lender):
(i) a rent roll for the subject quarter; (ii) quarterly and year-to-date operating statements (including Capital Expenditures)
prepared for each calendar quarter, noting net operating income, gross income, and operating expenses (not including any contributions
to the Replacement Reserve Fund and the Required Repair Fund), and other information necessary and sufficient to fairly represent
the financial position and results of operation of each Individual Property during such calendar quarter, and containing a comparison
of budgeted income and expenses and the actual income and expenses; (iii) a balance sheet for Borrower; and (iv) a calculation
reflecting the annual Debt Service Coverage Ratio for the immediately preceding three (3), six (6), and twelve (12) month periods
as of the last day of such quarter (to the extent the Loan has been outstanding for such periods). Any time that independent certified
public accountant audited versions of any of the items described in items (i)-(iv) immediately above are available, Borrower shall
promptly provide the same to Lender.


 


(d)          Until
the earlier of Securitization or twelve (12) months after the date of this Agreement, Borrower shall furnish, or cause to be furnished,
to Lender on or before twenty (20) days after the end of each calendar month, all of the following items with respect to the previous
calendar month, accompanied by an Officer’s Certificate stating that such items are true, correct, accurate, and complete
and fairly present the financial condition and results of the operations of Borrower and each Individual Property (subject to normal
year-end adjustments) as applicable: (A) a rent roll for the subject month; (B) monthly operating statement(s) of each
Individual Property; and (C) year-to-date operating statement(s) of each Individual Property.


 


(e)          Intentionally
omitted.


 


(f)          Upon
request, Borrower and its affiliates shall furnish to Lender (but not more frequently than quarterly):


 


(i)          a
property management report for each Individual Property, showing the number of inquiries made and/or rental applications received
from tenants or prospective tenants and deposits received from tenants and any other information requested by Lender, in reasonable
detail and certified by Borrower to be true and complete; and


 


(ii)         an
accounting of all security deposits held in connection with any Lease of any part of the Property, including the name and identification
number of the accounts in which such security deposits are held, the name and address of the financial institutions in which such
security deposits are held and the name of the person to contact at such financial institution, along with any authority or release
necessary for Lender to obtain information regarding such accounts directly from such financial institutions.


 




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(g)          For
the partial year period commencing on the date hereof, and for each Fiscal Year thereafter, Borrower shall submit to Lender a draft
Annual Budget prior to the commencement of such period or Fiscal Year in form reasonably satisfactory to Lender. If a Cash Sweep
Period exists, the Annual Budget shall be subject to Lender’s written approval (each such Annual Budget, an “Approved
Annual Budget”), not to be unreasonably withheld, delayed or conditioned. If Lender objects to a proposed Annual Budget
submitted by Borrower, Lender shall advise Borrower of such objections within fifteen (15) days after receipt thereof (and deliver
to Borrower a reasonably detailed description of such objections) and Borrower shall promptly revise such Annual Budget and resubmit
the same to Lender. Lender shall advise Borrower of any objections to such revised Annual Budget within ten (10) days after receipt
thereof (and deliver to Borrower a reasonably detailed description of such objections) and Borrower shall promptly revise the same
in accordance with the process described in this subsection until Lender approves the Annual Budget. Until such time that Lender
approves a proposed Annual Budget, the most recently Approved Annual Budget shall apply; provided that, such Approved Annual Budget
shall be adjusted to reflect actual increases in Taxes, Insurance Premiums and Other Charges and other Non-Discretionary Expenses.
Notwithstanding anything to the contrary contained herein, to the extent Lender’s prior approval is required for an Annual
Budget as set forth in this Section 5.1.11(g), Lender shall have ten (10) Business Days from receipt of written request
(which such written request shall include a copy of the proposed Annual Budget and such other information as is necessary for Lender’s
review of such Annual Budget), to approve or disapprove such matter, provided that the front page of any such request to Lender
is marked, in not less than fourteen (14) point bold face type, underlined and using all capital letters, as follows: “LENDER’S
RESPONSE IS REQUIRED WITHIN TEN (10) BUSINESS DAYS OF RECEIPT OF THIS NOTICE PURSUANT TO THE TERMS OF A LOAN AGREEMENT BETWEEN
THE UNDERSIGNED AND LENDER.” In the event additional information is reasonably requested by Lender within such ten (10)
Business Day period, Lender shall have five (5) Business Days from receipt of all additional requested information in which to
approve or disapprove such the applicable matter, notwithstanding the date of the original request. In the event that Lender fails
to respond to the applicable matter in question within such time frames as set forth above, Lender’s failure to respond shall
constitute Lender’s deemed approval of the proposed Annual Budget.


 


(h)          If
Borrower must incur an extraordinary operating expense or capital expense not set forth in the Approved Annual Budget (each an
“Extraordinary Expense”), then Borrower shall promptly deliver to Lender a reasonably detailed explanation of
such proposed Extraordinary Expense for Lender’s approval, which may be given or denied in Lender’s reasonable discretion.


 


(i)          Borrower
shall furnish to Lender, within ten (10) Business Days after request (or as soon thereafter as may be reasonably possible), such
further detailed information with respect to the operation of the Property (or any portion thereof) and the financial affairs of
Borrower as may be reasonably requested by Lender.


 




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(j)          Borrower
shall furnish to Lender, within ten (10) Business Days after Lender’s request (or as soon thereafter as may be reasonably
possible), financial information from any Tenant designated by Lender (to the extent such financial information is required to
be provided under the applicable Lease and same is received by Borrower after request therefor).


 


(k)          Borrower
shall cause Guarantor to furnish to Lender annually, within one-hundred (100) days following the end of each Fiscal Year of Guarantor:
(i) if such Guarantor is an entity, financial statements audited by an independent certified public accountant, which shall include
an annual balance sheet and profit and loss statement of Guarantor, in the form reasonably required by Lender, it being acknowledged
that the form delivered to Lender in connection with the origination of the Loan is acceptable or (ii) if such Guarantor is an
individual, a signed personal financial statement in a form reasonably satisfactory to Lender. Notwithstanding the foregoing, the
delivery of the 10-K of Healthcare Trust, Inc. will satisfy the foregoing.


 


(l)          Any
reports, statements or other information required to be delivered under this Agreement shall be delivered (i) in paper form, (ii)
on a diskette, or (iii) if requested by Lender and within the capabilities of Borrower’s data systems without change or modification
thereto, in electronic form and prepared using Microsoft Word for Windows files (which files may be prepared using a spreadsheet
program and saved as word processing files). Borrower agrees that Lender may disclose information regarding the Property and Borrower
that is provided to Lender pursuant to this Section 5.1.11 in connection with the Securitization to such parties requesting
such information in connection with such Securitization.


 


5.1.12   Business
and Operations. Borrower shall 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 each Individual Property. Borrower shall qualify
to do business and shall remain in good standing in the jurisdiction in which each Individual Property is located and the jurisdiction
of its formation. Borrower shall at all times during the term of the Loan, continue to own all of Equipment, Fixtures and Personal
Property which are necessary to operate each Individual Property in the manner required hereunder and in the manner in which it
is currently operated.


 


5.1.13   Title
to the Property. Borrower shall warrant and defend (a) the title to each Individual Property and every part thereof, subject
only to Liens permitted hereunder (including Permitted Encumbrances) and (b) the validity and priority of the Lien of the Security
Instrument on each Individual Property, subject only to Liens permitted hereunder (including Permitted Encumbrances), in each case
against the claims of all Persons whomsoever. Borrower shall reimburse Lender for any actual losses, reasonable costs, damages
(exclusive, in all events, of consequential, punitive, special, exemplary and indirect damages) or reasonable expenses (including
reasonable out-of-pocket attorneys’ fees and expenses) incurred by Lender if an interest in the Property (or any part thereof),
other than as permitted hereunder, is claimed by another Person.


 




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5.1.14   Costs
of Enforcement. In the event (a) that the Security Instrument encumbering the Property (or any portion thereof) is foreclosed
in whole or in part or that the Security Instrument is put into the hands of an attorney for collection, suit, action or foreclosure,
(b) of the foreclosure of any mortgage encumbering the Property (or any portion thereof) prior to or subsequent to the Security
Instrument in which proceeding Lender is made a party, or (c) of the bankruptcy, insolvency, rehabilitation or other similar proceeding
in respect of Borrower or any of its constituent Persons or an assignment by Borrower or any of its constituent Persons for the
benefit of its creditors, Borrower, its successors or assigns, shall be chargeable with and agrees to pay all costs of collection
and defense, including reasonable out-of-pocket attorneys’ fees and expenses, incurred by Lender or Borrower in connection
therewith and in connection with any appellate proceeding or post judgment action involved therein, together with all required
service or use taxes.


 


5.1.15   Estoppel
Statement. (a) After request by Lender, Borrower shall within ten (10) days furnish Lender or any proposed assignee of
the Loan with a statement, duly acknowledged and certified, setting forth (i) the original principal amount of the Note, (ii) the
unpaid principal amount of the Note, (iii) the Interest Rate of the Note, (iv) the terms of payment and Maturity Date, (v) the
date the most recent Monthly Debt Service Payment Amount was paid, (vi) that, except as provided in such statement, to Borrower’s
knowledge there are no Events of Default under this Agreement or any of the other Loan Documents, (vii) that the Loan Documents
are valid, legal and binding obligations (subject to creditor’s rights and general principals of equity) and have not been
modified or if modified, giving particulars of such modification, (viii) whether, to Borrower’s knowledge, any offsets or
defenses exist against the obligations secured hereby and, if any are alleged to exist, a detailed description thereof, (ix) that
all Leases are in full force and effect and (provided the applicable Individual Property is not a residential multifamily property)
have not been modified (or if modified, setting forth all modifications), (x) the date to which the Rents thereunder have been
paid pursuant to the Leases, (xi) whether or not, to the knowledge of Borrower, any of the lessees under the Leases are in default
under the Leases, and, if any of the lessees are in default, setting forth the specific nature of all such defaults, (xii) the
amount of security deposits held by Borrower under each Lease and that such amounts are consistent with the amounts required under
each Lease, and (xiii) as to any other matters reasonably requested by Lender and reasonably related to the Leases, the obligations
secured hereby, the Property (or any portion thereof) or the Security Instrument.


 


(b)          After
request by Borrower, Lender shall within ten (10) days furnish Borrower or any proposed assignee of the Loan with a statement,
duly acknowledged and certified, setting forth (i) the original principal amount of the Note, (ii) the unpaid principal amount
of the Note, (iii) the Interest Rate of the Note, (iv) the terms of payment and Maturity Date, (v) the date the most recent Monthly
Debt Service Payment Amount was paid, and (vi) that, except as provided in such statement, to Lender’s knowledge there are
no Events of Default under this Agreement or any of the other Loan Documents.


 


(c)          Borrower
shall use commercially reasonable efforts to deliver to Lender upon request, tenant estoppel certificates from each commercial
Tenant leasing space at the Property in form and substance reasonably satisfactory to Lender provided that Borrower shall not be
required to deliver such certificates more frequently than two (2) times in any calendar year.


 


5.1.16   Loan
Proceeds. Borrower shall use the proceeds of the Loan received by it on the Closing Date only for the purposes set forth
in Section 2.1.4 hereof.


 




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5.1.17   Intentionally
Omitted.


 


5.1.18   Reserved.


 


5.1.19   Environmental
Covenants. (a) Borrower covenants and agrees that: (i) all uses and operations on or of the Property (or any portion thereof),
by Borrower shall be in material compliance with all Environmental Laws and permits issued pursuant thereto and Borrower shall
use commercially reasonable efforts to cause all uses and operations on or of the Property by any other Person to be in material
compliance with all Environmental Laws and permits issued pursuant thereto; (ii) there shall be no Releases of Hazardous Substances
in, on, under or from any Individual Property in violation of Environmental Law; (iii) there shall be no Hazardous Substances in,
on, or under any Individual Property, except those that are (A) in material compliance with all Environmental Laws and with permits
issued pursuant thereto (to the extent such permits are required by Environmental Law), or (B) de-minimis amounts necessary to
operate the applicable Individual Property for the purposes set forth in this Agreement and which are otherwise permitted under
and used in compliance with Environmental Law; (iv) Borrower shall keep the Property free and clear of all liens and other encumbrances
imposed pursuant to any Environmental Law, whether due to any act or omission of Borrower or any other Person (the “Environmental
Liens”); (v) Borrower shall, at its sole cost and expense, cooperate in all activities required pursuant to subsection
(b) below, including providing all relevant information and making knowledgeable persons available for interviews; (vi) intentionally
omitted; (vii) Borrower shall, at its sole cost and expense, comply with all reasonable written requests of Lender made if
Lender has a reasonable basis to believe that an environmental hazard in violation of Environmental Law exists on any Individual
Property in order to: (A) reasonably effectuate Remediation of any environmental condition (including a Release of a Hazardous
Substance) in, on, under or from any Individual Property in violation of Environmental Law; (B) comply with any Environmental Law;
(C) comply with any directive from any Governmental Authority with jurisdiction with respect to the environmental condition of
the Property; provided, however, that nothing herein shall preclude Borrower from the right to defend against or challenge, using
all legal means, the imposition of any governmental directives or requirements or the imposition of any liability by any Governmental
Authority or other Person; and (D) take any other reasonable action necessary or appropriate for protection of human health or
the environment with respect to the Property, to the extent required pursuant to Environmental Law; (viii) Borrower shall not do
any act, and Borrower shall use commercially reasonable efforts to cause all Tenant or other user of the Property to not do any
act, in connection with the Property that materially increases the harm to human health or the environment, poses an unreasonable
risk of harm to any Person from a Release of any Hazardous Substances on, at, under, or from the Property (or any portion thereof),
impairs or is reasonably likely to impair the value of the Property (or any portion thereof) due to the presence of Hazardous Substances,
is contrary to any requirement of any insurer, constitutes a public or private nuisance, or violates any covenant, condition, agreement
or easement applicable to the environmental condition of the Property (or any portion thereof); (ix) after obtaining knowledge
thereof, Borrower shall promptly notify Lender in writing of (A) any presence or Releases or threatened Releases of Hazardous Substances
in, on, under, from or migrating onto any Individual Property which would require the same to be reported to Governmental Authorities
or otherwise remediated; (B) any material non-compliance with any Environmental Laws related in any way to any Individual Property;
(C) any actual or potential Environmental Lien on any Individual Property; (D) any required Remediation of environmental conditions
relating to any Individual Property; and (E) any written notice or other written communication of which Borrower becomes aware
from any source whatsoever (including a Governmental Authority) relating in any way to the release or potential release of Hazardous
Substances on, at, under or from any Individual Property or the Remediation thereof, likely to result in liability of any Person
in connection with any Individual Property pursuant to any Environmental Law, other environmental conditions in connection with
any Individual Property, or any actual or potential administrative or judicial proceedings in connection therewith; (x) Borrower
shall not install, use, generate, manufacture, store, treat, release or dispose of, nor permit the installation, use, generation,
storage, treatment, release or disposal of, any Hazardous Substances (except de-minimis amounts necessary to operate the Property
(or any portion thereof) for the purposes set forth in this Agreement and which are otherwise permitted under and used in compliance
with Environmental Law) on, under or about the Property (or any portion thereof); (xi) Borrower shall not make any change
in the use or condition of any Individual Property which (A) would reasonably be expected to lead to the presence on, under or
about the applicable Individual Property of any Hazardous Substances which is not in accordance with any applicable Environmental
Law, or (B) would require, under any applicable Environmental Law, notice be given to or approval be obtained from any Governmental
Authority in the event of a transfer of ownership or control of the applicable Individual Property, in each case without the prior
written consent of Lender; (xii) Borrower shall not allow any Institutional Control to be imposed on any Individual Property;
and (xiii) Borrower shall take all acts necessary to preserve its status, if applicable, as an “innocent landowner,”
“contiguous property owner,” or “prospective purchaser” as to the Property (or any portion thereof) as
those terms are defined in CERCLA; provided, however, that this covenant does not limit or modify any of Borrower’s other
duties or obligations under this Agreement.


 




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(b)          If
Lender has a reasonable basis to believe that an environmental condition in violation of Environmental Law exists on any Individual
Property, upon reasonable written notice from Lender, Borrower shall, at Borrower’s expense, promptly cause an engineer or
consultant reasonably satisfactory to Lender to conduct an environmental assessment or audit (the scope of which shall be determined
in Lender’s reasonable discretion) and take any samples of soil, groundwater or other water, air, or building materials or
any other invasive testing at such Individual Property as reasonably requested by Lender and promptly deliver the results of any
such assessment, audit, sampling or other testing; provided, however, if such results are not delivered to Lender within a reasonable
period or if Lender has a reasonable basis to believe that an environmental hazard exists on the Property that, in Lender’s
reasonable judgment, endangers the health of any Tenant or other occupant of the Property or their guests or the general public
or is reasonably likely to materially and adversely affect the value of the applicable Individual Property, upon reasonable written
notice to Borrower, Lender and any other Person designated by Lender, including any receiver, any representative of a Governmental
Authority with jurisdiction over the matter, and any environmental consultant, shall have the right, subject to the rights of the
occupants of the Individual Property, but not the obligation, to enter upon the applicable Individual Property at all reasonable
times to assess the environmental hazard on the applicable Individual Property, including conducting any environmental assessment
or audit (the scope of which shall be determined in Lender’s reasonable discretion) and taking samples of soil, groundwater
or other water, air, or building materials, and conducting other invasive testing, in each case, to the extent reasonably determined
to be warranted in connection with such suspected environmental hazard. Borrower shall cooperate with and provide Lender and any
such Person designated by Lender with access to the applicable Individual Property. Unless an Event of Default exists, Borrower
shall not be required to perform an environmental site assessment or audit hereunder with respect to any Individual Property more
often than once per twelve (12) month period.


 




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(c)          Intentionally
Omitted.


 


(d)          Intentionally
Omitted.


 


(e)          Borrower
shall promptly perform all necessary remedial work in response to the presence of any Hazardous Substances on any Individual Property
in violation of any Environmental Laws, or any claims or requirements made by any Governmental Authority with jurisdiction regarding
the environmental condition of such Individual Property; provided, however, that nothing herein shall preclude Borrower from the
right to defend against or challenge using all lawful means, the imposition of any governmental directives or requirements or the
imposition of any liability by any governmental entity or other Person. All such work shall be conducted by licensed and reputable
contractors pursuant to written plans approved by the agency or authority in question (if applicable), under proper permits and
licenses (if applicable) with such insurance coverage as is customarily maintained by prudent property owners in similar situations.
If the cost of the work exceeds $500,000, then Lender shall have the right of prior approval over the environmental contractor
and plans, which shall not be unreasonably withheld or delayed. All costs and expenses of the remedial work shall be promptly paid
by Borrower. In the event Borrower fails to undertake the remedial work, or fails to complete the same within a reasonable time
period after the same is undertaken, and if Lender is of the good faith opinion that Lender’s security in the applicable
Individual Property is jeopardized thereby, then Lender shall have the right to undertake or complete the remedial work itself.
In such event all reasonable out-of-pocket costs of Lender in doing so, including all reasonable out-of-pocket fees and expenses
of environmental consultants, engineers, attorneys, accountants and other professional advisors, shall become a part of the Loan
and shall be due and payable from Borrower upon demand. Such amount shall be secured by the Loan Documents, and failure to pay
the same shall be an Event of Default under the Loan Documents. In the event any Hazardous Substances are removed from the Property,
either by Borrower or Lender, the number assigned by the United States Environmental Protection Agency to such Hazardous Substances
shall be solely in the name of Borrower, and Borrower shall have any and all liability for such removed Hazardous Substances.


 




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5.1.20   Leasing
Matters. Any Leases with respect to the Property written after the date hereof, for more than 8,000 square feet shall be
subject to the prior written approval of Lender, which approval shall not be unreasonably withheld, conditioned or delayed. Upon
request, Borrower shall furnish Lender with executed copies of all Leases not previously delivered to Lender. All renewals of Leases
and all proposed Leases shall provide for rental rates (to the extent not already set forth in the Lease) comparable to existing
local market rates. All proposed Leases shall be on commercially reasonable terms. All Leases executed after the date hereof shall
provide that they are subordinate to the Security Instrument and that the lessee agrees to attorn to Lender or any purchaser at
a sale by foreclosure or power of sale. Borrower (i) shall observe and perform the obligations imposed upon the lessor under the
Leases in a commercially reasonable manner; (ii) shall enforce and may amend or terminate the terms, covenants and conditions contained
in the Leases upon the part of the lessee thereunder to be observed or performed in a commercially reasonable manner and in a manner
not to impair the value of the Property (or any portion thereof) involved except that no termination by Borrower or acceptance
of surrender by a Tenant of any Leases shall be permitted unless by reason of a tenant default, in connection with a tenant relocation
within the applicable Individual Property, or re-tenanting of any portion of the applicable Individual Property with respect to
which the tenant has “gone dark” and then only in a commercially reasonable manner to preserve and protect the Property
(or any portion thereof); provided, however, that no such termination or surrender of any Lease covering more than 10,000 square
feet will be permitted without the prior written consent of Lender unless a material default thereunder exists and the applicable
Tenant has been provided all notice and cure rights required under such Lease or by applicable law; (iii) shall not collect any
of the rents more than one (1) month in advance (other than security deposits); (iv) shall not execute any other assignment of
lessor’s interest in the Leases or the Rents (except as contemplated by the Loan Documents); (v) shall not alter, modify
or change the terms of the Leases in a manner inconsistent with the provisions of the Loan Documents; and (vi) shall execute and
deliver at the request of Lender all such further assurances, confirmations and assignments in connection with the Leases as Lender
shall from time to time reasonably require. Notwithstanding anything to the contrary contained herein, Borrower shall not enter
into a lease of all or substantially all of any Individual Property without Lender’s prior written consent, not to be unreasonably
withheld, delayed or conditioned. Notwithstanding anything to the contrary contained herein, all new Leases and all amendments,
modifications, extensions, and renewals of existing Leases with Tenants that are Affiliates of Borrower shall be subject to the
prior written consent of Lender. Lender agrees to enter into a subordination, non-disturbance agreement with tenants with respect
to any Lease in a form substantially similar to the subordination, non-disturbance agreements entered into in connection with the
closing of the Loan.


 


Borrower has indicated
that it is currently negotiating a lease with CarolinaEast Medical Center, a North Carolina not-for-profit corporation (the “CarolinaEast”),
for a portion of the Individual Property located at 4252 Arendell St., Morehead City, NC 28557. So long as the final lease with
CarolinaEast is executed prior to October 31, 2018, Lender agrees that the following economic terms included in any such lease
will be deemed approved: triple net lease for a minimum rent of $20.00 per square foot and for a term of at least 10 years.


 


Notwithstanding anything
to the contrary contained herein, to the extent Lender’s prior approval is required for any leasing matters set forth in
this Section 5.1.20, Lender shall have ten (10) Business Days from receipt of written request (which such written request
shall include a copy of the proposed lease, market information relating to leases comparable to the proposed lease, financial information
with respect to the proposed tenant to the extent in Borrower’s possession and such other relevant materials and information
used by Borrower in connection with negotiation of the proposed Lease), to approve or disapprove such matter, provided that the
front page of any such request to Lender is marked, in not less than fourteen (14) point bold face type, underlined and using all
capital letters, as follows: “LENDER’S RESPONSE IS REQUIRED WITHIN TEN (10) BUSINESS DAYS OF RECEIPT OF THIS NOTICE
PURSUANT TO THE TERMS OF A LOAN AGREEMENT BETWEEN THE UNDERSIGNED AND LENDER.” In the event additional information is
reasonably requested by Lender within such ten (10) Business Day period, Lender shall have three (3) Business Days from receipt
of all additional requested information in which to approve or disapprove such the applicable matter, notwithstanding the date
of the original request. In the event that Lender fails to respond to the applicable matter in question within such time frames
as set forth above, Lender’s failure to respond shall constitute Lender’s deemed approval of the particular approval
request.


 




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5.1.21   Alterations.


 


(a)          Borrower
shall obtain Lender’s prior written consent to any alterations to any Improvements, which consent shall not be unreasonably
withheld or delayed except with respect to alterations that may have a material adverse effect on Borrower’s financial condition,
the value of any Individual Property or the applicable Individual Property’s Net Operating Income. Notwithstanding the foregoing,
Lender’s consent shall not be required in connection with any alterations that will not have a material adverse effect on
Borrower’s financial condition, the value of any Individual Property or the applicable Individual Property’s Net Operating
Income, provided that such alterations are made in connection with (a) tenant improvement work performed pursuant to the terms
of any Lease executed on or before the date hereof, (b) tenant improvement work performed pursuant to the terms and provisions
of a Lease and not adversely affecting any structural component of any Improvements, any utility or HVAC system contained in any
Improvements or the exterior of any building constituting a part of any Improvements, (c) alterations performed in connection with
the Restoration of any Individual Property after the occurrence of a Casualty or Condemnation in accordance with the terms and
provisions of this Agreement, (d) alterations required to comply with Legal Requirements, (e) alterations the aggregate cost of
which is $500,000 or less or (f) Required Repairs. If the total unpaid amounts due and payable with respect to alterations to the
Improvements with respect to an Individual Property or any portion thereof (other than such amounts to be paid or reimbursed by
Tenants under the Leases or paid with insurance or condemnation proceeds or reserves established pursuant to the Loan Documents)
shall at any time exceed $500,000.00 (the “Threshold Amount”), Borrower shall promptly deliver to Lender as
security for the payment of such amounts and as additional security for Borrower’s obligations under the Loan Documents any
of the following: (A) cash, (B) U.S. Obligations, (C) other securities having a rating reasonably acceptable to Lender and
that, at Lender’s option, the applicable Rating Agencies have confirmed in writing will not, in and of itself, result in
a downgrade, withdrawal or qualification of the initial, or, if higher, then current ratings assigned to any Securities or any
class thereof in connection with any Securitization or (D) a completion and performance bond or an irrevocable letter of credit
(payable on sight draft only) issued by a financial institution having a rating by S&P of not less than “A-1+”
if the term of such bond or letter of credit is no longer than three (3) months or, if such term is in excess of three (3) months,
issued by a financial institution having a rating that is reasonably acceptable to Lender and that, at Lender’s option, the
applicable Rating Agencies have confirmed in writing will not, in and of itself, result in a downgrade, withdrawal or qualification
of the initial, or, if higher, then current ratings assigned to any Securities or class thereof in connection with any Securitization.
Such security shall be in an amount equal to the excess of the total unpaid amounts with respect to alterations to the Improvements
on the Property (or any portion thereof) (other than such amounts to be paid or reimbursed by Tenants under the Leases) over the
Threshold Amount and Lender may apply such security from time to time at the option of Lender to pay for such alterations.


 




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(b)          Notwithstanding
anything to the contrary in this Section 5.1.21 or in any other provision of this Agreement or in any other Loan Document,
provided that no Event of Default is then continuing, Borrower may construct an addition to the building located on the Individual
Property related to the Arrowhead I Ground Lease (the “Original Arrowhead I Property”) for the purposes of adding
an elevator (the “Approved Alterations”), subject to satisfying the following conditions:


 


(i)          Borrower
has provided to Lender, and Lender has approved: (A) the plans and specifications for the Approved Alterations (the “Alteration
Plans”), and (B) a survey (the “Alteration Survey”) for any land on which the Approved Alterations
will occur that is located outside the Original Arrowhead I Property (“Additional Arrowhead I Property”, and
together with the Original Arrowhead I Property, the “Expanded Arrowhead I Property”). Borrower shall notify
Lender of its intent to begin the Approved Alterations at least thirty (30) days prior to the planned commencement of such alterations,
and shall deliver to Lender, together with such notice, (A) any material amendments to the Alteration Plans or Alteration Survey,
(B) if the aggregate cost of the Approved Alterations will exceed $500,000.00, a construction budget detailing such costs (the
“Alteration Budget”), (C) any proposed amendment of the Arrowhead I Ground Lease to add Additional Arrowhead
I Property to the leased premises covered thereby (“Arrowhead I Ground Lease Amendment”), and (D) any other
documents in the possession of or readily obtainable by Borrower at no material out-of-pocket cost relating to changes in any lot,
parcel or tract line required to complete the Approved Alterations and the Arrowhead I Ground Lease Amendment (the “Alteration
Plans”);


 


(ii)         intentionally
omitted;


 


(iii)        Borrower
shall have obtained Lender’s prior written consent to the Alteration Plans (not to be unreasonably withheld, delayed or conditioned)
and delivered evidence reasonably satisfactory to Lender indicating that Borrower has sufficient funds available (without incurring
any additional Indebtedness in violation of this Agreement) to complete the Approved Alterations in a lien-free workmanlike manner
in accordance with the terms of this Agreement, and, if the Alteration Budget indicates that such amount is materially in excess
of the Threshold Amount, the security required pursuant to Section 5.1.21(a)(A) through (D) above;


 


(iv)        Lender
shall have received an Officer’s Certificate stating that (A) all permits, licenses and approvals then required for the Approved
Alterations have been obtained and are in full force and effect, (B) if and to the extent that the issuance of any such permits,
licenses or approvals is not then yet required under applicable Legal Requirements, the same will be timely obtained as may be
necessary to comply with all applicable Legal Requirements and Borrower shall promptly deliver copies of such items to Lender following
Borrower’s receipt thereof, (C) all of the work to be performed in connection with such alterations shall be done (1) substantially
in compliance with the Alteration Plans delivered to Lender, (2) in full compliance with all applicable Legal Requirements, (3)
in full compliance with the terms and provisions of the Loan Documents, and (4) in a good and workmanlike manner, and (D) Borrower
will complete the Approved Alterations in a manner that does not cause damage to, interference with or interruption of the utilities,
parking, or operation and use of the Original Arrowhead I Property or any tenants;


 




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(v)         Borrower
shall have delivered to Lender commercial property insurance covering the Approved Alterations written in a so-called builder’s
risk completed value form; each in accordance with the requirements set forth in Article VI herein;


 


(vi)        Borrower
shall have delivered to Lender the executed general construction contract between Borrower and the third-party contractor applicable
to the Alteration Plans;


 


(vii)       Borrower
shall have delivered to Lender all applicable building permits for the Approved Alterations and evidence reasonably satisfactory
to Lender that during the construction of and following the completion of the Approved Alterations, the Expanded Arrowhead I Property
will (A) not suffer any loss of any parking or access to any public right of way or adjoining parcel, and (B) be in compliance
with all applicable reciprocal easement agreements (and such construction and loss of parking at the Expanded Arrowhead I Property
will not violate any reciprocal easement agreements);


 


(viii)      intentionally
omitted;


 


(ix)         (A)
Borrower, Guarantor, and any tenant of Borrower with respect to the Original Arrowhead I Property whose Lease is affected by the
Approved Alterations, as applicable, shall enter into any amendments of the Loan Documents (including, if applicable, estoppel
certificates) and (B) the ground lessor under the Arrowhead I Ground Lease shall enter into any amendment of the Ground Lease Estoppel
delivered by it as of the closing of the Loan, in each case as the items described in (A) and (B) above may be reasonably required
by Lender to add the Additional Arrowhead I Property and the Arrowhead I Ground Lease Amendment to the coverage of the Loan Documents
(collectively, the “Loan Document Amendments”);


 


(x)          Borrower
and Guarantor shall deliver to Lender in connection with the Loan Document Amendments, New York, Arizona, Delaware authority and
Maryland authority opinion letters in substantially the same scope and form as those same opinions delivered to Lender on the date
of this Agreement;


 


(xi)         intentionally
omitted; and


 


(xii)        Within
thirty (30) days following completion of the Approved Alterations, Borrower shall provide to Lender:


 


(A)         an
Officer’s Certificate certifying that the construction and all Approved Alterations have been completed in a good and workmanlike
manner in accordance with all applicable Legal Requirements and the terms and provisions of the Loan Documents, and substantially
in accordance with the Alteration Plans approved by Lender;


 




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(B)         at
Borrower’s cost, a new ALTA survey of the Property that includes the completed Approved Alterations, and a down-date endorsement
to the Title Insurance Policy (or replacement policy) (1) confirming that no new mechanic’s or other liens have been filed
against the Expanded Arrowhead I Property, and (2) covering the Expanded Arrowhead I Property, the Arrowhead I Ground Lease Amendment,
the Loan Document Amendments and any other matters reasonably required by Lender;


 


(C)         a
copy of the final certificate of occupancy, if required by applicable Legal Requirements.


 


(xiii)       Notwithstanding
anything to the contrary contained herein, to the extent Lender’s prior approval is required for any matters set forth in
this Section 5.1.21, Lender shall have ten (10) Business Days from receipt of written request (which such written request
shall include all information reasonably necessary for Lender to review, analze and approve or disapprove such matter, provided
that the front page of any such request to Lender is marked, in not less than fourteen (14) point bold face type, underlined and
using all capital letters, as follows: “LENDER’S RESPONSE IS REQUIRED WITHIN TEN (10) BUSINESS DAYS OF RECEIPT OF
THIS NOTICE PURSUANT TO THE TERMS OF A LOAN AGREEMENT BETWEEN THE UNDERSIGNED AND LENDER.” In the event additional information
is reasonably requested by Lender within such ten (10) Business Day period, Lender shall have three (3) Business Days from receipt
of all additional requested information in which to approve or disapprove such the applicable matter, notwithstanding the date
of the original request. In the event that Lender fails to respond to the applicable matter in question within such time frames
as set forth above, Lender’s failure to respond shall constitute Lender’s deemed approval of the particular approval
request.


 


Borrower hereby indemnifies
Lender for all reasonable out-of-pocket liabilities arising out of, or in connection with, the Approved Alterations, excluding,
however, in all events, consequential, punitive, special, exemplary and indirect damages. Borrower shall pay all actual out-of-pocket
costs incurred by Lender in connection with the Approved Alterations and the Loan Document Amendments, including review or approval
of any items described in this Section 5.1.21. Borrower further agrees to continuously and diligently pursue completion
of the Approved Alterations once commenced.


 


5.1.22    Operation
of Property. (a) Borrower shall cause each Individual Property (excluding the Self-Managed Properties) to be operated,
in all material respects, in accordance with the applicable Management Agreement (or Replacement Management Agreement) as applicable.
If the applicable Management Agreement expires or is terminated (without limiting any obligation of Borrower to obtain Lender’s
consent to any termination or modification of the Management Agreement in accordance with the terms and provisions of this Agreement),
Borrower shall promptly enter into a Replacement Management Agreement with Manager or another Qualified Manager, as applicable.
Borrower shall manage the Self-Managed Properties in a commercially reasonable manner.


 




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(b)          Borrower
shall: (i) promptly perform or observe, in all material respects, all of the covenants and agreements required to be performed
and observed by it under each Management Agreement and do all things necessary to preserve and to keep unimpaired its material
rights thereunder; (ii) promptly notify Lender of any material default under each Management Agreement of which it has knowledge;
(iii) upon request of Lender, promptly deliver to Lender a copy of each business plan and capital expenditures plan received by
it under a Management Agreement; and (iv) enforce the performance and observance of all of the covenants and agreements required
to be performed or observed by the applicable Manager under the related Management Agreement, in a commercially reasonable manner.


 


5.1.23   Embargoed
Person. Borrower has instituted procedures to insure that at all times throughout the term of the Loan, including after
giving effect to any Transfers permitted pursuant to the Loan Documents, (a) none of the funds or other assets of Borrower and
Guarantor constitute property of, or are beneficially owned, directly or indirectly, by any Embargoed Person; (b) no Embargoed
Person has any interest of any nature whatsoever in Borrower or Guarantor, as applicable, with the result that the investment in
Borrower or Guarantor, as applicable (whether directly or indirectly), is prohibited by law or the Loan is in violation of law;
and (c) none of the funds of Borrower or Guarantor, as applicable, have been derived from, or are the proceeds of, any unlawful
activity, including money laundering, terrorism or terrorism activities, with the result that the investment in Borrower or Guarantor,
as applicable (whether directly or indirectly), is prohibited by law or the Loan is in violation of law, or may cause the Property
to be subject to forfeiture or seizure.


 


5.1.24   Ground
Lease. (a) With respect to each Ground Lease, Borrower covenants and agrees as follows: (i) to promptly and faithfully
observe, perform and comply with all the terms, covenants and provisions thereof on its part to be observed, performed and complied
with, at the times set forth therein, and to do all things necessary to preserve unimpaired its rights thereunder; (ii) not to
do, permit, suffer or refrain from doing anything, as a result of which there would reasonably be expected to be a default under
any of the terms thereof; (iii) not to terminate (pursuant to the terms thereof or otherwise), cancel, surrender, modify, amend
or in any way alter or permit the alteration of any of the terms thereof and not to release the Ground Lessor under the Ground
Lease from any obligations imposed upon it thereby without the consent of Lender, not to be unreasonably withheld, delayed or conditioned
(provided that, notwithstanding anything contained herein or in any other Loan Document, Borrower may extend the term of any Ground
Lease pursuant to the terms thereof without obtaining the consent of Lender); (iv) not to assign the Ground Lease in whole or in
part nor sublet the premises demised under the Ground Lease in whole except in accordance with the provisions of this Agreement;
(v) to the extent Borrower has actual knowledge of the same, to give Lender prompt written notice of any default under the Ground
Lease by Borrower that continues to exist beyond any notice and cure period available to Borrower under the applicable Ground Lease
or the Ground Lessor, and to deliver to Lender copies of each notice of default and all other material notices, communications,
plans, specifications and other similar instruments received or delivered by Borrower in connection therewith within two (2) Business
Days of Borrower’s receipt of the same; and (vi) to furnish to Lender such information and evidence as Lender may reasonably
require concerning Borrower’s due observance, performance and compliance with the terms, covenants and provisions thereof
provided such evidence is in Borrower’s possession or readily available at no material out-of-pocket cost to Borrower.


 




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Notwithstanding anything
to the contrary contained herein, to the extent Lender’s prior approval is required for any matters set forth in this Section
5.1.24, Lender shall have ten (10) Business Days from receipt of written request together with such other information as is
necessary for Lender’s review of the request, to approve or disapprove such matter, provided that the front page of any such
request to Lender is marked, in not less than fourteen (14) point bold face type, underlined and using all capital letters, as
follows: “LENDER’S RESPONSE IS REQUIRED WITHIN TEN (10) BUSINESS DAYS OF RECEIPT OF THIS NOTICE PURSUANT TO THE
TERMS OF A LOAN AGREEMENT BETWEEN THE UNDERSIGNED AND LENDER.” In the event additional information is reasonably requested
by Lender within such ten (10) Business Day period, Lender shall have five (5) Business Days from receipt of all additional requested
information in which to approve or disapprove such the applicable matter, notwithstanding the date of the original request. In
the event that Lender fails to respond to the applicable matter in question within such time frames as set forth above, Lender’s
failure to respond shall constitute Lender’s deemed approval of the particular approval request.


 


(b)          In
the event of any (A) default by Borrower in the performance of any part of its obligations under any Ground Lease that continues
to exist beyond any notice and cure period available to Borrower under the applicable Ground Lease, including, without limitation,
any default in the payment of rent, additional rent and other charges and impositions made payable by the tenant thereunder, or
(B) receipt by Lender of any written notice from a Ground Lessor of any default by Borrower under the related Ground Lease which
notice starts any cure period available to Lender under such Ground Lease to cure such default, then, in each and every case under
(A) or (B) above, Lender may, at its option and without notice, cause such default or defaults to be remedied and otherwise exercise
any and all of the rights of Borrower thereunder in the name of and on behalf of Borrower but no such action by Lender shall release
Borrower from any default under this Agreement. Borrower shall, on demand, reimburse Lender for all advances made and expenses
incurred by Lender in curing any such default (including, without limitation, reasonable attorneys’ fees and disbursements),
together with interest thereon at the Default Rate from the date that an advance is made or expense is incurred, to and including
the date the same is paid and such monies so expended by Lender with interest thereon shall be secured by this Agreement.


 


(c)          If
Borrower acquires the fee title or any other estate, title or interest in any Ground Lease Property, or any part thereof, the lien
of the applicable Security Instrument shall attach to, cover and be a lien upon such acquired estate, title or interest and same
shall thereupon be and become a part of the Property. Borrower agrees to execute all instruments and documents which Lender may
reasonably require to ratify, confirm and further evidence Lender’s lien on the acquired estate, title or interest. Furthermore,
Borrower hereby appoints Lender its true and lawful attorney-in-fact to execute and deliver all such instruments and documents
in the name and on behalf of Borrower. This power, being coupled with an interest, shall be irrevocable as long as the Debt remains
unpaid but may only be exercised if an Event of Default exists.


 


(d)          If
any Ground Lease is canceled or terminated, and if Lender or its nominee shall acquire an interest in any new lease or all or any
part of the related Ground Lease Property, Borrower shall have no right, title or interest in or to the new lease or the leasehold
estate created by such new lease.


 




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(e)          Borrower
shall use commercially reasonable efforts at no material out-of-pocket cost to Borrower, obtain and deliver to Lender from time
to time within ten (10) Business Days after written demand by Lender, an estoppel certificate from any Ground Lessor setting forth,
with respect to the related Ground Lease (i) the name of the tenant thereunder, (ii) that the Ground Lease has not been modified
or, if it has been modified, the date of each modification (together with copies of each such modification), (iii) the base rent
and additional rent and other charges payable under the Ground Lease, (iv) the date to which all rental charges have been paid
by the tenant under the Ground Lease, and (v) whether there are any defaults or alleged defaults of the tenant under the Ground
Lease or if there are any events which have occurred which with notice, the passage of time or both, would constitute a default
under the Ground Lease, and, if there are, setting forth the nature thereof in reasonable detail, provided that, unless an Event
of Default exists, Borrower shall not be required to use commercially reasonable efforts to obtain such estoppel more than one
(1) time per year.


 


(f)          Notwithstanding
anything to the contrary contained herein, this Agreement shall not constitute an assignment of any Ground Lease within the meaning
of any provision thereof prohibiting its assignment and Lender shall have no liability or obligation thereunder by reason of its
acceptance of this Agreement. Lender shall be liable for the obligations of the tenant arising under any Ground Lease for only
that period of time which Lender is in possession of the related Ground Lease Property and has acquired, by foreclosure or otherwise,
and is holding all of Borrower’s right, title and interest therein.


 


(g)          No
release or forbearance of any of Borrower’s obligations under any Ground Lease, pursuant to the Ground Lease or otherwise,
shall release Borrower from any of its obligations under this Agreement or the other Loan Documents.


 


(h)          Borrower
shall enforce the obligations of each Ground Lessor under the applicable Ground Lease to the end that Borrower may enjoy all of
the rights granted to it under the Ground Lease, and will promptly notify Lender of any default known to Borrower by the Ground
Lessor in the performance or observance of any of the terms, covenants and conditions of the Ground Lease. If, pursuant to any
Ground Lease, the related Ground Lessor shall deliver to Lender a copy of any notice of default given to Borrower, as lessee under
such Ground Lease, and which notice starts any cure period available to Lender under such Ground Lease to cure such default, such
notice shall constitute full authority and protection to Lender for any action taken or omitted to be taken by Lender, in good
faith and in reliance thereon.


 


(i)          Borrower
shall give Lender prompt notice of the commencement of any arbitration or appraisal proceeding under and pursuant to the provisions
of any Ground Lease. Lender shall have the right to intervene and participate in any such proceeding and Borrower shall confer
with Lender and its attorneys and experts and cooperate with them to the extent that Lender deems reasonably necessary for the
protection of Lender.


 


(j)          Upon
the request of Lender, Borrower will exercise all rights of arbitration conferred upon it by any Ground Lease. If at any time such
proceeding shall be continuing, a default by Borrower beyond any applicable cure period in the performance or observance of any
covenant, condition or other requirement of any Ground Lease or of this Agreement, on the part of Borrower to be performed or observed
shall have occurred and be continuing, Lender shall have, and is hereby granted, the sole and exclusive right to designate and
appoint on behalf of Borrower, the arbitrator or arbitrators, or appraiser, in such proceeding.


 




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(k)          With
respect to any Ground Lease requiring the periodic payment of any rent, Borrower shall deliver to Lender reasonably satisfactory
proof of payment thereof within thirty (30) days following Lender’s request therefore.


 


(l)          Borrower
hereby unconditionally and irrevocably assigns to Lender (i) any right which Borrower has pursuant of the terms of any Ground Lease
to renew and/or extend the term thereof; provided, however, that Lender shall only exercise such right during the continuance of
an existing Event of Default or in the event Lender reasonably determines that such exercise is necessary to protect its interest
in the related Ground Lease Property; (ii) any right which Borrower has pursuant to the terms of any Ground Lease to cancel or
terminate the Ground Lease; provided, however, that Lender shall only exercise such right after a foreclosure or its acceptance
of a deed-in-lieu of foreclosure; and (iii) any option or right that Borrower has pursuant to any Ground Lease to purchase any
or all of the premises demised thereunder.


 


(m)          In
the event that it is claimed by any Governmental Authority that any tax or governmental charge or imposition is due, unpaid or
payable by Borrower upon or in connection with any Ground Lease, Borrower shall promptly either (i) pay such tax, charge or imposition
when due and deliver to Lender reasonably satisfactory proof of payment thereof or (ii) contest such tax in accordance with the
applicable provisions of the Loan Documents. If liability for such tax is asserted against Lender, Lender will give to Borrower
prompt notice of such claim, and Borrower, upon complying with the provisions of the Loan Documents shall have full right and authority
to contest such claim of taxability.


 


(n)          Notwithstanding
anything to the contrary contained in this Agreement with respect to any Ground Lease:


 


(i)          If
any Ground Lease is terminated for any reason in the event of the rejection or disaffirmance of the Ground Lease by the related
Ground Lessor pursuant to the Bankruptcy Code, or any other law affecting creditor’s rights, (i) Borrower, promptly after
obtaining notice thereof, shall give notice thereof to Lender, (ii) Borrower, without the prior written consent of Lender, shall
not elect to treat such Ground Lease as terminated pursuant to Section 365(h) of the Bankruptcy Code or any comparable federal
or state statute or law, and any election by Borrower made without such consent shall be void, and (iii) the terms, covenants and
conditions of this Loan Agreement and the Loan Documents hereby extends to and covers Borrower’s possessory rights under
Section 365(h) of the Bankruptcy Code and to any claim for damages due to the rejection of such Ground Lease or other termination
of such Ground Lease. In addition, Borrower hereby assigns irrevocably to Lender Borrower’s rights to treat any Ground Lease
as terminated pursuant to Section 365(h) of the Bankruptcy Code and to offset rents under any Ground Lease in the event any case,
proceeding or other action is commenced by or against the related Ground Lessor under the Bankruptcy Code or any comparable federal
or state statute or law. Without Lender’s prior written consent, Borrower shall not seek to offset, pursuant to Subsection
365(h) of the Bankruptcy Code, against the rent reserved in any Ground Lease, the amount of any damages caused by the nonperformance
by the related Ground Lessor of any of its obligations under such Ground Lease after the rejection by such Ground Lessor of such
Ground Lease under the Bankruptcy Code.


 




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(ii)         As
security for the Debt, Borrower unconditionally assigns, transfers and sets over to Lender all of Borrower’s (a) right to
reject any Ground Lease under Section 365 of the Bankruptcy Code or any comparable federal or state statute or law with respect
to any case, proceeding or other action commenced by or against Borrower under the Bankruptcy Code or comparable federal or state
statute or law, (b) right to seek an extension of the 60-day period within which Borrower must assume or reject any Ground Lease
under Section 365 of the Bankruptcy Code or any comparable federal or state statue or law with respect to any case, proceeding
or other action commenced by or against Borrower under the Bankruptcy Code or comparable federal or state statute or law ,and (c)
claims and rights to the payment of damages arising from any rejection by any Ground Lessor of any Ground Lease under the Bankruptcy
Code. Lender shall have the right to proceed in the name of Borrower in respect of any claim, suit, action or proceeding relating
to the rejection of any Ground Lease, including, without limitation, the right to file and prosecute any proofs of claim, complaints,
motions, applications, notices and other documents in any case in respect of the related Ground Lessor under the Bankruptcy Code.
This assignment constitutes a present, irrevocable and unconditional assignment of the foregoing claims, rights and remedies and
shall continue in effect until all of the Debt shall have been satisfied and discharged in full. Any amounts received by Lender
or Borrower as damages arising out of the rejection of any Ground Lease as aforesaid shall be applied to all reasonable out-of-pocket
costs and expenses of Lender (including, without limitation, reasonable out-of-pocket attorneys’ fees and costs) incurred
in connection with the exercise of any of its rights or remedies in accordance with the applicable provisions of this Agreement.
If the foregoing assignment is not effective under applicable law and Borrower shall desire to so reject any Ground Lease, at Lender’s
request, Borrower shall assign its interest in such Ground Lease to Lender in lieu of rejecting such Ground Lease, upon receipt
by Borrower of notice from Lender of such request together with Lender’s agreement to cure any existing defaults of Borrower
under such Ground Lease.


 


(iii)        If
any action, proceeding, motion or notice shall be commenced or filed in respect of any Ground Lessor or all or any part of the
related Ground Lease Property in connection with any case under the Bankruptcy Code, Lender and Borrower shall cooperatively conduct
and control any such litigation with counsel agreed upon between Borrower and Lender in connection with such litigation. Borrower
shall, upon demand, pay to Lender all reasonable out-of-pocket costs and expenses (including reasonable out-of-pocket attorneys’
fees and costs) actually paid or actually incurred by Lender in connection with the cooperative prosecution or conduct of any such
proceedings. All such costs and expenses shall be deemed to be secured by the Loan Documents.


 


(iv)        Borrower
shall promptly, after obtaining knowledge of such filing, notify Lender orally of any filing by or against any Ground Lessor of
a petition under the Bankruptcy Code. Borrower shall thereafter promptly give written notice of such filing to Lender, setting
forth any information available to Borrower as to the date of such filing, the court in which such petition was filed, and the
relief sought in such filing. Borrower shall promptly deliver to Lender any and all notices, summonses, pleadings, applications
and other documents received by Borrower in connection with any such petition and any proceedings relating to such petition.


 




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Section 5.2           Negative
Covenants. From the date hereof until payment and performance in full of all obligations of Borrower under the Loan Documents
or the earlier release of the Lien of the Security Instrument and any other collateral in accordance with the terms of this Agreement
and the other Loan Documents, Borrower covenants and agrees with Lender that it shall not do, directly or indirectly, any of the
following:


 


5.2.1     Operation
of Property. (a) Borrower shall not, without Lender’s prior written consent (which consent shall not be unreasonably
withheld, delayed or conditioned): (i) surrender, terminate, cancel, amend or modify the Management Agreement; provided, that Borrower
may, without Lender’s consent, terminate the Management Agreement and replace the Manager so long as the replacement manager
is a Qualified Manager pursuant to a Replacement Management Agreement; (ii) increase or consent to the increase of the amount of
any management fee under any Management Agreement with respect to any Individual Property so that such management fee would be
in excess of the underwritten management fee for such Property set forth on Schedule V hereof, or (iii) otherwise modify,
change, supplement, alter or amend, or waive or release any of its rights and remedies under, the Management Agreement in any material
respect.


 


(b)          Following
the occurrence and during the continuance of an Event of Default, Borrower shall not exercise any rights, make any decisions, grant
any approvals or otherwise take any action under the Management Agreement without the prior written consent of Lender, which consent
may be granted, conditioned or withheld in Lender’s discretion.


 


(c)         If under applicable
zoning provisions the use of all or any portion of the Property is or shall become a nonconforming use, Borrower shall not cause
or permit the nonconforming use or Improvement to be discontinued or abandoned without the express written consent of Lender.


 


5.2.2     Liens.
Borrower shall not create, incur, assume or suffer to exist any Lien on any portion of the Property or permit any such action to
be taken, except for Permitted Encumbrances.


 


5.2.3     Dissolution.
Borrower shall not (a) engage in any dissolution, liquidation or consolidation or merger with or into any other business entity,
(b) engage in any business activity not related to the ownership and operation of each Individual Property, (c) transfer, lease
or sell, in one transaction or any combination of transactions, the assets or all or substantially all of the properties or assets
of Borrower except to the extent permitted by the Loan Documents, (d) modify, amend, waive or terminate its organizational
documents or its qualification and good standing in any jurisdiction in each case, without obtaining the prior written consent
of Lender, not to be unreasonably withheld, delayed or conditioned.


 




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5.2.4     Change
In Business. Borrower shall not enter into any line of business other than the ownership and operation of each Individual
Property, or make any material change in the scope or nature of its business objectives, purposes or operations, or undertake or
participate in activities other than the continuance of its present business. Nothing contained in this Section 5.2.4
is intended to expand the rights of Borrower contained in Section 5.2.10(d) hereof.


 


5.2.5     Debt
Cancellation. Borrower shall not cancel or otherwise forgive or release any claim or debt (other than 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.


 


5.2.6     Zoning.
Borrower shall not initiate or consent to any zoning reclassification of any portion of any Individual Property or seek any variance
under any existing zoning ordinance or use or permit the use of any portion of any Individual Property in any manner that could
reasonably be expected to result in such use becoming a nonconforming use under any zoning ordinance or any other applicable land
use law, rule or regulation, without the prior written consent of Lender.


 


5.2.7     No
Joint Assessment. Borrower shall not suffer, permit or initiate the joint assessment of any Individual Property (a) with
any other real property constituting a tax lot separate from the applicable Individual Property, and (b) which constitutes real
property with any portion of the applicable Individual 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 such real property portion of the Individual Property.


 


5.2.8     Intentionally
Omitted.


 


5.2.9     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 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 ERISA, to the extent that no portion of the assets
used by Lender in connection with the transaction contemplated under this Agreement and the other Loan Documents constitutes “plan
assets” of one or more Plans within the meaning of 29 C.F.R. §2510.3-101, as modified by Section 3(42) of ERISA.


 


(b)          Borrower
further covenants and agrees to deliver to Lender such certifications or other evidence from time to time throughout the term of
the Loan, as requested by Lender in its discretion, that (A) Borrower is not and does not maintain an “employee benefit plan”
as defined in Section 3(3) 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 is not subject to any state statute regulating investment of, or fiduciary obligations
with respect to governmental plans and (C) one or more of the following circumstances is true:


 


(i)          Equity
interests in Borrower are publicly offered securities, within the meaning of 29 C.F.R. §2510.3-101(b)(2);


 


(ii)         Less
than twenty-five percent (25%) of each outstanding class of equity interests in Borrower are held by “benefit plan investors”
within the meaning of 29 C.F.R. §2510.3-101(f)(2); or


 




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(iii)        Borrower
qualifies as an “operating company” or a “real estate operating company” within the meaning of 29 C.F.R.
§2510.3-101(c) or (e).


 


5.2.10   Transfers.
(a) Borrower acknowledges that Lender has examined and relied on the experience of Borrower and its stockholders, general partners,
members, principals and (if Borrower is a trust) beneficial owners 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.


 


(b)          Without
the prior written consent of Lender, not to be unreasonably withheld, delayed or conditioned, and except to the extent otherwise
set forth in this Section 5.2.10, Borrower shall not, and shall not permit any Restricted Party to do any of the following
(collectively, a “Transfer”): (i) sell, convey, mortgage, grant, bargain, encumber, pledge, assign, grant options
with respect to, or otherwise transfer or dispose of (directly or indirectly, voluntarily or involuntarily, by operation of law
or otherwise, and whether or not for consideration or of record) the Property or any part thereof or any legal or beneficial interest
therein or any interest of Borrower in the Loan or (ii) permit a Sale or Pledge of an interest in any Restricted Party, other than
(A) pursuant to Leases of space in the Improvements to Tenants in accordance with the provisions of Section 5.1.20 and (B)
Permitted Transfers.


 


(c)          A
Transfer shall 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 leasing all or a substantial part of any Individual Property
for other than 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 or any Rents; (iii) if a Restricted Party is a corporation,
any merger, consolidation or Sale or Pledge of such corporation’s stock or the creation or issuance of new stock; (iv) if
a Restricted Party is a limited or general partnership or joint venture, any merger or consolidation or the change, removal, resignation
or addition of a general partner or the Sale or Pledge of the partnership interest of any general partner or any profits or proceeds
relating to such partnership interest, or the Sale or Pledge of limited partnership interests or any profits or proceeds relating
to such limited partnership interest or the creation or issuance of new limited partnership interests; (v) if a Restricted Party
is a limited liability company, any merger or consolidation or the change, removal, resignation or addition of a managing member
or nonmember manager (or if no managing member, any member) or the Sale or Pledge of the membership interest of a managing member
(or if no managing member, any member) or any profits or proceeds relating to such membership interest, or the Sale or Pledge of
nonmanaging membership interests or the creation or issuance of new nonmanaging membership interests; (vi) if a Restricted Party
is a trust or nominee trust, any merger, consolidation or the Sale or Pledge of the legal or beneficial interest in a Restricted
Party or the creation or issuance of new legal or beneficial interests; or (vii) the removal or the resignation of the managing
agent (including an Affiliated Manager) other than in accordance with Section 5.1.22 hereof.


 




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(d)          Notwithstanding
the provisions of this Section 5.2.10, Lender’s consent shall not be required in connection with one or a series of
Transfers, of not more than forty-nine percent (49%) of the direct or indirect ownership interests in a Borrower; provided,
however, no such Transfer shall result in the change of Control in a Borrower, and as a condition to each such Transfer
of more than ten percent (10%) of the direct or indirect ownership interests in a Borrower, Lender shall receive not less than
thirty (30) days prior written notice of such proposed Transfer. If after giving effect to any such Transfer, more than forty-nine
percent (49%) of the direct or indirect ownership interests in a Borrower are owned by any Person and its Affiliates that owned
less than forty-nine percent (49%) of the aggregate direct or indirect ownership interests in a Borrower as of the Closing Date,
Borrower shall, no less than thirty (30) days prior to the effective date of any such Transfer, deliver to Lender an Additional
Insolvency Opinion reasonably acceptable to Lender and the Rating Agencies. Borrower shall pay any and all reasonable out-of-pocket
costs and expenses incurred in connection with such Transfers (including Lender’s counsel fees and disbursements and any
fees and expenses of the Rating Agencies).


 


(e)          No
Transfer of the Property (or any portion thereof) and assumption of the Loan shall occur during the period that is ninety (90)
days following the date hereof. Without limiting Lender’s discretion to approve or disapprove any request for a waiver of
the prohibition against Transfers, Lender specifically reserves the right to condition its consent to any waiver of a prohibited
Transfer upon satisfaction of the following minimum conditions:


 


(i)          Borrower
shall pay Lender a transfer fee equal to: (A) one half of one percent (0.5%) of the outstanding principal balance of the Loan at
the time of such Transfer for the first such Transfer; and (B) one percent (1%) of the outstanding principal balance of the Loan
at the time of such Transfer for each subsequent Transfer;


 


(ii)         Borrower
shall pay any and all reasonable out-of-pocket costs incurred in connection with such Transfer (including Lender’s counsel
fees and disbursements and all recording fees, title insurance premiums and mortgage and intangible taxes and the fees and expenses
of the Rating Agencies pursuant to clause (x) below);


 


(iii)        The
proposed transferee (the “Transferee”) or Transferee’s Principals must have demonstrated expertise in
owning and operating properties similar in location, size, class and operation to each Individual Property, which expertise shall
be reasonably determined by Lender;


 


(iv)        Transferee
and Transferee’s Principals shall, as of the date of such transfer, have an aggregate net worth and liquidity reasonably
acceptable to Lender;


 


(v)         Transferee,
Transferee’s Principals and all other entities which may be owned or Controlled directly or indirectly by Transferee’s
Principals (“Related Entities”) must not have been party to any bankruptcy proceedings, voluntary or involuntary,
made an assignment for the benefit of creditors or taken advantage of any insolvency act, or any act for the benefit of debtors
within seven (7) years prior to the date of the proposed Transfer;


 




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(vi)        Transferee
shall assume all of the obligations of Borrower under the Loan Documents in a manner reasonably satisfactory to Lender in all respects,
including by entering into an assumption agreement in form and substance reasonably satisfactory to Lender;


 


(vii)       There
shall be no material litigation or regulatory action pending or threatened against Transferee, Transferee’s Principals or
Related Entities which is not acceptable to Lender in its reasonable discretion;


 


(viii)      Transferee,
Transferee’s Principals and Related Entities shall not have defaulted under its or their obligations with respect to any
other Indebtedness in a manner which is not acceptable to Lender in its reasonable discretion;


 


(ix)         Transferee
and Transferee’s Principals must be able to satisfy all the representations and covenants set forth in Sections 4.1.30,
4.1.35, 5.1.23 and 5.2.9 of this Agreement, no Event of Default shall otherwise occur as a result of such
Transfer, and Transferee and Transferee’s Principals shall deliver (A) all organizational documentation reasonably requested
by Lender, which shall be reasonably satisfactory to Lender and (B) all certificates, agreements, covenants and legal opinions
reasonably required by Lender;


 


(x)          If
required by Lender, Transferee shall be approved by the Rating Agencies selected by Lender, which approval, if required by Lender,
shall take the form of a confirmation in writing from such Rating Agencies to the effect that such Transfer will not result in
a requalification, reduction, downgrade or withdrawal of the ratings in effect immediately prior to such assumption or transfer
for the Securities or any class thereof issued in connection with a Securitization which are then outstanding;


 


(xi)         Prior
to any release of Guarantor, one (1) or more substitute guarantors reasonably acceptable to Lender shall have assumed all of the
liabilities and obligations of Guarantor under the Guaranty and Environmental Indemnity executed by Guarantor or execute a replacement
guaranty and environmental indemnity reasonably satisfactory to Lender.


 


(xii)        Borrower
shall deliver, at its sole cost and expense, an endorsement to each Title Insurance Policy, as modified by the assumption agreement,
as a valid first lien on each Individual Property and naming the Transferee as owner of each Individual Property, which endorsement
shall insure that, as of the date of the recording of the assumption agreement, each Individual Property shall not be subject to
any additional exceptions or liens other than those contained in the Title Policies issued on the date hereof and the Permitted
Encumbrances;


 


(xiii)       Each
Individual Property shall be managed by Qualified Manager pursuant to a Replacement Management Agreement; and


 


(xiv)      Borrower
or Transferee, at its sole cost and expense, shall deliver to Lender an Additional Insolvency Opinion reflecting such Transfer
satisfactory in form and substance to Lender.


 




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(f)          Notwithstanding
any provision in this Section 5.2.10 to the contrary, limited partnership or membership interests, as applicable, in Borrower
may be transferred without Lender’s consent and without application of the fee set forth in Section 5.2.10(e)(i):
(i) among limited partners or members, as applicable, of Borrower who are limited partners or members, as applicable, of Borrower
as of the date of this Agreement (each a “Current Owner”), and (ii) to immediate family members (which shall
be limited to a spouse, parent, child and grandchild (each, an “Immediate Family Member”)), of any Current Owner
or to trusts formed for the benefit of Immediate Family Members of such Current Owner for bona fide estate planning purposes (each,
an “Additional Permitted Transfer”), provided each of the following conditions is satisfied: (A) no Event of
Default has occurred and no event has occurred that with notice or the passage of time, or both, would constitute an Event of Default;
(B) Lender has received Borrower’s notice of the Additional Permitted Transfer no less than 30 days prior to the commencement
of such transfer; (C) no Guarantor shall be released from any guaranty or indemnity agreement by virtue of the Additional Permitted
Transfer; (D) Borrower shall be responsible for the costs and expenses of documenting the Additional Permitted Transfer; (E) Borrower
shall reimburse Lender for all actual costs and expenses incurred by Lender in connection with the Additional Permitted Transfer,
whether or not consummated; (F) once the Additional Permitted Transfer is complete, the persons with Control of Borrower and
management of the Property are the same persons who have such Control and management rights immediately prior to the Additional
Permitted Transfer; (G) Borrower shall furnish Lender copies of any documentation executed in connection with the Additional Permitted
Transfer promptly after execution thereof; (H) Borrower shall have delivered satisfactory evidence to Lender that, following the
Additional Permitted Transfer, Borrower shall continue to comply with the provisions of Section 4.1.30 hereof; and (I) upon
Lender’s request, delivery of an Additional Insolvency Opinion acceptable to Lender.


 


(h)          A
Transfer (a “Qualified Equityholder Transfer”) of direct or indirect ownership interests in Borrower to a Qualified
Equityholder resulting in a change in Control of Borrower may occur at any time and from time-to-time without Lender’s consent,
so long as the following conditions are satisfied: (i) Following the consummation of such Qualified Equityholder Transfer, such
Qualified Equityholder shall Control of Borrower, (ii) a Qualified Replacement Guarantor shall deliver to Lender a replacement
guaranty and a replacement environmental indemnity agreement each in form and substance substantially identical to the Guaranty
and Environmental Indemnity executed by Guarantor as of the closing of the Loan; (iii) such Qualified Replacement Guarantor shall
have furnished to Lender all appropriate documentation evidencing such Person’s organization and good standing, and the qualification
of the signers to execute the applicable documents on its behalf, which documentation shall include certified copies of all relevant
documents relating to the organization and formation of such Qualified Replacement Guarantor and of the entities, if any, which
are partners or members of the Qualified Replacement Guarantor; (iv) Lender must receive at least thirty (30) days prior written
notice thereof; (v) Borrower shall furnish to Lender an Additional Insolvency Opinion and such other legal opinions reasonably
required by Lender; (vi) Borrower shall furnish one or more Officer’s Certificates representing and warranting that, following
such Qualified Equityholder Transfer, each Borrower continues to comply with the provisions of Section 4.1.30 hereof; (vii)
Borrower shall pay to Lender, concurrently with the closing of such Qualified Equityholder Transfer all reasonable out-of-pocket
costs and expenses, including reasonable out-of-pocket attorneys’ fees, incurred by Lender in connection therewith, and (viii)
Borrower shall furnish Lender copies of any documentation executed in connection with the Qualified Equityholder Transfer promptly
after execution thereof.


 




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(i)          Without
Lender’s prior written consent thereto, in its sole discretion, any Transfer or Permitted Transfer resulting in any direct
or indirect ownership interests in Borrower or the Property being held in any Prohibited Entity/Ownership Structure is prohibited,
even if the same would be otherwise allowed pursuant to this Section 5.2.10, the definition of a Permitted Transfer or any
other provision of any Loan Document.


 


Lender shall not be
required to demonstrate any actual impairment of its security or any increased risk of default hereunder in order to declare the
Debt immediately due and payable upon Borrower’s Transfer without Lender’s consent. This provision shall apply to every
Transfer regardless of whether voluntary or not, or whether or not Lender has consented to any previous Transfer.


 


ARTICLE VI - INSURANCE; CASUALTY; CONDEMNATION


 


Section
6.1           Insurance. (a) Each Borrower shall obtain and maintain,
or cause to be maintained, insurance for each Borrower and each Individual Property providing at least the following coverages:


 


(i)          comprehensive
all risk “special form” insurance including loss caused by any type of windstorm, windstorm related perils, “named
storms,” or hail on the Improvements and the Personal Property, including contingent liability from Operation of Building
Laws, Demolition Costs and Increased Cost of Construction Endorsements, (A) in an amount equal to one hundred percent (100%)
of the “Full Replacement Cost,” which for purposes of this Agreement means actual replacement value (exclusive of costs
of excavations, foundations, underground utilities and footings) with a waiver of depreciation; (B) containing an agreed amount
endorsement with respect to the Improvements and Personal Property waiving all co-insurance provisions or to be written on a no
co-insurance form; (C) providing for no deductible in excess of 5% of Net Cash Flow of the applicable Individual Property for all
such insurance coverage; provided however with respect to windstorm and earthquake coverage, providing for a deductible
satisfactory to Lender in its reasonable discretion which for clarity includes 5% of the total insured value of each Individual
Property; and (D) if any of the Improvements or the use of the applicable Individual Property shall at any time constitute legal
non-conforming structures or uses, coverage for loss due to operation of law in an amount equal to the full Replacement Cost for
coverage A, undamaged portion, and fifteen percent (15%) each for coverage B for demolition costs and coverage C for increased
costs of construction. In addition, Borrower shall obtain: (y) if any material portion of the Improvements is currently or at any
time in the future located in a federally designated “special flood hazard area,” flood hazard insurance in an amount
equal to the maximum amount of such 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, plus excess flood coverage in an amount
equal to the “probable maximum loss” for the Improvements, as determined by an engineer reasonably satisfactory to
Lender, or such greater amount as Lender shall reasonably require, and (z) earthquake insurance in amounts and in form and substance
reasonably satisfactory to Lender (but in any event, in an amount not less than 150% of the “probable maximum loss”)
in the event the applicable Individual Property is located in an area with a high degree of seismic activity and the “probable
maximum loss” for the Improvements, as determined by an engineer reasonably satisfactory to Lender, is 20% or greater (based
on a 475-year return period, an exposure period of 50 years and a 10% probability of exceedance), 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);


 




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(ii)         business
income or rental loss insurance (A) with loss payable to Lender; (B) covering all risks required to be covered by the insurance
provided for in subsection (i) above; (C) in an amount equal to one hundred percent (100%) of the projected gross revenues
from the operation of the applicable Individual Property (as reduced to reflect expenses not incurred during a period of Restoration)
for a period of (1) not less than twelve (12) months from the date of casualty or loss if the amount of the Loan is less than $35,000,000,
or (2) not less than eighteen (18) months from the date of casualty or loss if the amount of the Loan is $35,000,000 or more; and
(D) if the amount of the Loan is $50,000,000 or more, 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 180 days from the date that
the applicable Individual 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. The amount of such business income or rental loss 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 revenues from the applicable Individual Property for the succeeding twelve (12) month period. Notwithstanding the provisions
of Section 2.7.1 hereof, all proceeds payable to Lender pursuant to this subsection shall be held by Lender as additional
reserves hereunder pursuant to Section 7.6 hereof and, in the event that the proceeds of such business income or rental
loss insurance are paid in a lump sum in advance, in the absence of an Event of Default, Lender shall disburse a portion thereof
(calculated based upon aggregate amount of such proceeds divided by the number of Payment Dates occurring during the time period
reasonably determined by Lender to be required to restore the damage caused by the related casualty) on each Payment Date to the
Clearing Account; provided, however, that nothing herein contained shall be deemed to relieve Borrower of its obligations
to pay the obligations secured by the Loan Documents on the respective dates of payment provided for in this Agreement and the
other Loan Documents except to the extent such amounts are actually paid out of the proceeds of such business income insurance;


 


(iii)        at
all times during which structural construction, repairs or alterations are being made with respect to the Improvements, and only
if the applicable Individual Property coverage form does not otherwise apply, (A) owner’s contingent or protective liability
insurance, otherwise known as Owner Contractor’s Protective Liability, covering claims not covered by or under the terms
or provisions of the above mentioned commercial general liability insurance policy 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 applicable Individual Property
and (4) with an agreed amount endorsement waiving co-insurance provisions;


 




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(iv)        comprehensive
boiler and machinery insurance, if steam boilers, other pressure-fixed vessels, large air conditioning systems, elevators or other
large machinery are in operation, in amounts as shall be reasonably required by Lender on terms consistent with the commercial
property insurance policy required under subsection (i) above;


 


(v)         commercial
general liability insurance against claims for personal injury, bodily injury, death, contractual damage or property damage occurring
upon, in or about the applicable Individual Property, such insurance (A) to be on the so-called “occurrence” form with
a combined limit of not less than $2,000,000.00 in the aggregate and $1,000,000.00 per occurrence; (B) to continue at not less
than the aforesaid limit until required to be changed by Lender in writing 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; (4) blanket contractual liability for all written contracts
and (5) contractual liability covering the indemnities contained in Article 9 of the Security Instrument to the extent the same
is available;


 


(vi)        automobile
liability coverage for all owned and non-owned vehicles, including rented and leased vehicles containing minimum limits per occurrence
of $1,000,000.00;


 


(vii)       if
Borrower has any employees, worker’s compensation and employee’s liability subject to the worker’s compensation
laws of the applicable state;


 


(viii)      umbrella
and excess liability insurance in an amount not less than: (A) $5,000,000.00 per occurrence if the amount of the Loan is less
than $35,000,000, or (B) $25,000,000.00 per occurrence, if the amount of the Loan is $35,000,000 or more, on terms consistent with
the commercial general liability insurance policy required under subsection (v) above, including supplemental coverage for
employer liability, if applicable, and automobile liability, which umbrella liability coverage shall apply in excess of the automobile
liability coverage in clause (vi) above;


 


(ix)         the
insurance required under this Section 6.1(a) above shall cover perils of terrorism and acts of terrorism and Borrower shall
maintain insurance for loss resulting from perils and acts of terrorism (as defined in the Terrorism Risk Insurance Act of 2002,
as amended by the Terrorism Risk Insurance Program Reauthorization Act of 2007 and the Terrorism Risk Insurance Program Reauthorization
Act of 2015, or its subsequent extensions or reauthorizations, or replacement act), on terms (including amounts) consistent with
those required under Sections 6.1(a) above at all times during the term of the Loan; provided, however, Borrower shall not
be required to spend on terrorism insurance coverage more than two (2) times the amount of the Insurance Premiums that are payable
in respect of the property and rental loss and/or business income insurance required hereunder (without giving effect to the cost
of terrorism components of such property and rental loss and/or business income insurance) on the date of this Agreement, and if
the cost of terrorism insurance exceeds such amount, Borrower shall purchase the maximum amount of terrorism insurance available
with funds equal to such amount; and


 




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(x)          upon
sixty (60) days written notice, such other reasonable insurance, including sinkhole or land subsidence 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 property similar to the applicable Individual Property located in or around the region in which the Property
is located.


 


(b)          All
insurance provided for in Section 6.1(a) hereof, shall be obtained under valid and enforceable policies (collectively, the
“Policies” or in the singular, the “Policy”), and shall be subject to the reasonable approval
of Lender as to insurance companies, amounts, deductibles, loss payees and insureds. The Policies shall be issued by financially
sound and responsible insurance companies approved to do business in the State and having a rating of (A) if the amount of the
Loan is $35,000,000 or more, “A:VIII” or better in the current Best’s Insurance Reports and a claims paying ability
rating of “A-” or better by S&P, and “A3” or better by Moody’s, if rated by Moody’s, or
(B) if the amount of the Loan is less than $35,000,000, “A-:VIII” or better in the current Best’s Insurance Reports
and a claims paying ability rating of “A-” or better by S&P, and “A3” or better by Moody’s, if
rated by Moody’s. Notwithstanding the foregoing, any required earthquake insurance must satisfy the requirements of subsection
(A) hereof regardless of the amount of the Loan. The Policies described in Section 6.1 hereof (other than those strictly
limited to liability protection) shall designate Lender as loss payee. Not less than ten (10) days prior to the expiration dates
of the Policies theretofore furnished to Lender, certificates of insurance evidencing the Policies accompanied by evidence reasonably
satisfactory to Lender of payment of the premiums due thereunder (the “Insurance Premiums”), shall be delivered
by Borrower to Lender.


 


(c)          Any
blanket insurance Policy shall provide the same protection as would a separate Policy insuring only the applicable Individual Property
in compliance with the provisions of Section 6.1(a) hereof. Lender may determine (including at the request of Borrower),
in its reasonable discretion, the amount of such coverage that is sufficient in light of the other risks and properties insured
under the blanket policy based on a review of the relevant schedule of locations limited to the minimum details required and based
on zip code, county or radial distance, including property values.


 


(d)          All
Policies provided for or contemplated by Section 6.1(a) hereof, except for the Policy referenced in Section 6.1(a)(vii)
of this Agreement, shall name Borrower as the insured and Lender as the additional insured, as its interests may appear, and in
the case of property damage, boiler and machinery, flood and earthquake insurance, shall contain a so-called New York standard
non-contributing mortgagee clause in favor of Lender providing that the loss thereunder shall be payable to Lender.


 


(e)          All
Policies shall contain clauses or endorsements to the effect that:


 




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(i)          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, shall in any way affect
the validity or enforceability of the insurance insofar as Lender is concerned;


 


(ii)         the
Policy shall not be canceled (A) for nonpayment of a premium without at least ten (10) days written notice to Lender and any other
party named therein as an additional insured, and (B) for any reason other than nonpayment of a premium without at least thirty
(30) days written notice to Lender and any other party named therein as an additional insured;


 


(iii)        intentionally
omitted; and


 


(iv)        Lender
shall not be 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 to take such action as Lender deems reasonably necessary to protect its interest in the applicable Individual
Property, including the obtaining of such insurance coverage as Lender in its reasonable discretion deems appropriate after three
(3) Business Days’ notice to Borrower if prior to the date upon which any such coverage will lapse or at any time Lender
reasonably deems necessary (regardless of prior notice to Borrower) to avoid the lapse of any such coverage. 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 Security Instrument and shall bear interest at the Default Rate.


 


Section 6.2           Casualty.
If any Individual Property shall be damaged or destroyed, in whole or in part, by fire or other casualty (a “Casualty”),
Borrower shall give prompt written notice of such damage to Lender and shall promptly commence or cause to be commenced and diligently
prosecute the completion of the Restoration of the applicable Individual Property pursuant to Section 6.4 hereof as nearly
as possible to the condition the applicable Individual Property was in immediately prior to such Casualty, with such alterations
as may be reasonably approved by Lender and otherwise in accordance with Section 6.4 hereof. Borrower shall pay or cause
to be paid all costs of such Restoration whether or not such costs are covered by insurance. 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 the final settlement, which approval shall not be unreasonably withheld or delayed)
with respect to any Casualty in which the Net Proceeds or the costs of completing the Restoration are equal to or greater than
the Availability Threshold and Borrower shall deliver to Lender all instruments reasonably required by Lender to permit such participation.


 




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Section 6.3           Condemnation.
Borrower shall promptly give Lender notice of the commencement of any proceeding for the Condemnation of any Individual Property
(or any portion thereof) 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 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 any portion of any Individual Property is taken by a condemning authority,
Borrower shall promptly commence and diligently prosecute the Restoration of the Property pursuant to Section 6.4 hereof
and otherwise comply with the provisions of Section 6.4 hereof. If the applicable Individual 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. Notwithstanding
the foregoing provisions of this Section 6.3, and Section 6.4 hereof, if the Loan or any portion thereof is included
in a REMIC Trust and, immediately following a release of any portion of the Lien of the Security Instrument in connection with
a Condemnation (but taking into account any proposed Restoration on the remaining portion of the Property), the Loan to Value Ratio
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, if the Property is a hospitality property, determination of such value shall exclude personal property and
going concern value, if any), the principal balance of the Loan must be paid down in an amount sufficient to satisfy the REMIC
Requirements, unless the Lender receives an opinion of counsel that if such amount is not paid, the Securitization will not fail
to maintain its status as a REMIC Trust and that the REMIC Trust will not be subject to tax as a result of the related release
of such portion of the Lien of the Security Instrument. In connection with the foregoing, the Net Proceeds shall not be available
for Restoration and shall be used to pay down the principal balance of the Loan to the extent set forth above.


 


Section 6.4           Restoration.
The following provisions shall apply in connection with the Restoration of any Individual Property:


 


(a)          If
the Net Proceeds shall be less than the Availability Threshold and the costs of completing the Restoration shall be less than the
Availability Threshold, the Net Proceeds shall be disbursed by Lender to Borrower upon receipt, provided that all of the conditions
set forth in Section 6.4(b)(i) hereof 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.


 




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(b)          If
the Net Proceeds are equal to or greater than the Availability Threshold or the costs of completing the Restoration are equal to
or greater than the Availability Threshold, and provided that such Restoration is permitted under applicable Legal Requirements
even though the Property is legally nonconforming or nonconforming, Lender shall make the Net Proceeds available for the Restoration
in accordance with the provisions of this Section 6.4. The term “Net Proceeds” for purposes of this Section
6.4 means: (i) the net amount of all insurance proceeds received by Lender pursuant to Section 6.1 (a)(i), (iv),
(ix) (excluding in the case of such item (ix), any such insurance proceeds payable to third parties for liability or tort
claims) and (x) as a result of such damage or destruction, after deduction of its reasonable out-of-pocket costs and expenses
(including reasonable out-of-pocket counsel fees), if any, in collecting same (“Insurance Proceeds”), or (ii)
the net amount of the Award, after deduction of its reasonable out-of-pocket costs and expenses (including reasonable out-of-pocket
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 provided that each of 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 thirty-five percent (35%) of the total floor area of the Improvements
on the applicable Individual 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 fifteen percent (15%) of the land constituting the applicable Individual
Property is taken, and such land is located along the perimeter or periphery of the applicable Individual Property, and no portion
of the Improvements is located on such land;


 


(C)         Borrower
and/or Tenant, as applicable under the respective Lease, shall make all necessary repairs and restorations thereto (utilizing the
Net Proceeds and any applicable Net Proceeds Deficiency), and (1) Leases demising in the aggregate a percentage amount equal to
or greater than the Rentable Space Percentage of the total rentable space in the applicable Individual 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, notwithstanding the
occurrence of any such Casualty or Condemnation, (2) Lender is satisfied in its reasonable judgment that the net operating income
for the Individual Property will be equal to or greater than that which exists prior to the Casualty or Condemnation, as applicable,
prior to the expiration of the insurance coverage referred to in Section 6.1(a)(ii), or (3) the Debt Service Coverage Ratio is
reasonably expected to be 1.55:1.0 or greater after the Restoration. The term “Rentable Space Percentage” means
(1) in the event the Net Proceeds are Insurance Proceeds, a percentage amount equal to eighty percent (80%) and (2) in the event
the Net Proceeds are Condemnation Proceeds, a percentage amount equal to eighty percent (80%);


 


(D)         Borrower
shall commence the Restoration as soon as reasonably practicable (but in no event later than ninety (90) days after such Casualty
or Condemnation, whichever the case may be, occurs and shall diligently pursue the same to satisfactory completion (for the purposes
of this clause the filing of an application for a building permit in accordance with all Legal Requirements shall be deemed to
be commencement of the Restoration provided Borrower diligently pursues obtaining such permit and promptly commences the physical
Restoration following the issuance of the building permit);


 




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(E)         Lender
shall be satisfied that any operating deficits, including all scheduled Monthly Debt Service Payment Amounts, 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 6.1(a)(ii) hereof, if
applicable, or (3) by other funds of Borrower;


 


(F)         Lender
shall be satisfied that the Restoration will be completed on or before the earliest to occur of (1) six (6) months prior to the
Maturity Date, (2) the earliest date required for such completion under the terms of any Lease or Ground Lease related to
the Individual Property which suffered the Casualty or Condemnation, (3) such time as may be required under all applicable Legal
Requirements in order to repair and restore the applicable Individual Property to the condition it was in immediately prior to
such Casualty or to as nearly as possible the condition it was in immediately prior to such Condemnation, as applicable, or (4)
the expiration of the insurance coverage referred to in Section 6.1(a)(ii) hereof;


 


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


 


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


 


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


 


(J)         Intentionally
Omitted;


 


(K)         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 subject to Lender’s approval; and


 


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


 




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(ii)         The
Net Proceeds shall be held by Lender in an Eligible Account and, until disbursed in accordance with the provisions of this Section
6.4(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 reasonably 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 applicable Individual Property which have not
either been fully bonded to the reasonable satisfaction of Lender and discharged of record or in the alternative fully insured
to the reasonable satisfaction of Lender by the title company issuing the applicable Title Insurance Policy.


 


(iii)        All
plans and specifications required in connection with the Restoration shall be subject to prior review and acceptance, not to be
unreasonably withheld, delayed or conditioned, in all respects by Lender and by 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 prior
review and approval by Lender and the Casualty Consultant, not to be unreasonably withheld, delayed or conditioned. All costs and
expenses incurred by Lender in connection with making the Net Proceeds available for the Restoration including reasonable counsel
fees and disbursements and the Casualty Consultant’s fees, 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, minus the Casualty
Retainage. The term “Casualty Retainage” means 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
until the Restoration is fifty percent (50%) complete and five percent (5%) thereafter. The Casualty Retainage shall in no event,
and notwithstanding anything to the contrary set forth above in this Section 6.4(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 6.4(b) and that all approvals necessary for the re-occupancy and use of the Property have been obtained
from all appropriate governmental and quasi-governmental authorities, and Lender receives evidence reasonably 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 shall 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 the Casualty Consultant certifies to Lender that the contractor, subcontractor
or materialman has completed all work and has supplied all materials in accordance with the provisions of the contractor’s,
subcontractor’s or materialman’s contract, 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 Lender receives evidence reasonably acceptable to Lender evidencing
that the applicable Title Insurance Policy continues to insure the priority of the lien of the applicable Security Instrument over
any mechanic’s or materialmen’s lien related to the Restoration. 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.


 




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(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 or the undisbursed balance thereof shall not, in the reasonable 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 before any further disbursement of the Net Proceeds shall be made. The Net Proceeds Deficiency
deposited with Lender shall be held by Lender 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 6.4(b)
shall constitute additional security for the Debt and Other Obligations under the Loan Documents.


 


(vii)       Provided
no continuing Event of Default shall then exist, after the Casualty Consultant certifies to Lender that the Restoration has been
completed in accordance with the provisions of this Section 6.4(b), and the receipt by Lender of evidence satisfactory to
Lender in its reasonable discretion that all costs incurred in connection with the Restoration have been paid in full, the excess,
if any, of the Net Proceeds (and the remaining balance, if any, of the Net Proceeds Deficiency) deposited with Lender shall be
(1) if a Cash Sweep Period then exists, deposited in the Cash Management Account to be disbursed in accordance with this Agreement,
and (2) if no Cash Sweep Period then exists, disbursed to Borrower.


 


(c)          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 6.4(b)(vii) hereof may be retained and applied by Lender toward the payment of the Debt in accordance
with Section 9(b) of the Note, whether or not then due and payable in such order, priority and proportions as Lender in
its reasonable 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 reasonable discretion.


 


(d)          In
the event of foreclosure of the Security Instrument, or other transfer of title to the Property (or any portion thereof) 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.


 




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(e)          Notwithstanding
anything contained herein or in any other Loan Document, if Lender applies any Net Proceeds to the repayment of the Debt and such
Net Proceeds are not sufficient to obtain the release of the Individual Property subject to the Casualty or Condemnation, Borrower
may, in its sole discretion, repay a portion of the Loan in an amount equal to the difference between the applicable Release Amount
and the Net Proceeds applied to repay the Loan, and satisfy all of the other conditions for Partial Release contained in Section
2.6.2 of this Agreement, Lender shall release the lien of the Security Instrument from the applicable Individual Property, and
no Prepayment Consideration or similar sum shall be due in connection therewith.


 


(f)          Notwithstanding
anything contained herein or in any other Loan Document, to the extent any Casualty or Condemnation impacts an Individual Property
that is subject to a Ground Lease, the application of any Net Proceeds shall be governed by the terms of such Ground Lease, as
amended by the terms of any ground lease estoppel relating thereto.


 


(g)          Notwithstanding
anything contained herein or in any other Loan Document, if the applicable Legal Requirements (including the opportunity to seek
a variance or special use permit) do not permit the Restoration of the Property to its condition that existed prior to the applicable
Casualty or Condemnation due to any legally nonconforming parking conditions at the Property, Lender shall make the Net Proceeds
available for the Restoration of the Property in accordance with all applicable Legal Requirements so long as Borrower provides
reasonable evidence that following such Restoration, the requirements contained either in (i) Section 6.1(b)(i)(C)(1) and
Section 6.1(b)(i)(C)(2), or in (ii) Section 6.1(b)(i)(C)(3) above shall be satisfied. In the event that Borrower
does not provide such reasonable evidence, all Net Proceeds shall be retained and applied by Lender toward the payment of the Debt
in accordance with Section 9(b) of the Note (no Prepayment Consideration or similar sum shall be due in connection therewith),
and Borrower shall complete a Partial Release of such affected Individual Property in accordance with Section 2.6.2 of this
Agreement, provided, however, that the amount of any such applied the Net Proceeds shall be deducted from the applicable Release
Amount for such Partial Release and further that no Prepayment Consideration or similar sum shall be due in connection therewith.


 


ARTICLE VII - RESERVE FUNDS


 


Section 7.1           Required
Repairs.


 


7.1.1      Deposits.
Borrower shall perform the repairs at the Property, as more particularly set forth on Schedule II hereto (such repairs hereinafter
referred to as “Required Repairs”). Borrower shall complete the Required Repairs on or before the required deadline
for each repair as set forth on Schedule II, each as extended as a result of force majeure. Upon the occurrence of such
an Event of Default, Lender, at its option, may withdraw all Required Repair Funds from the Required Repair Account and Lender
may apply such funds either to completion of the Required Repairs at the Property or toward payment of the Debt in such order,
proportion and priority as Lender may determine in its discretion. Lender’s right to withdraw and apply Required Repair Funds
shall be in addition to all other rights and remedies provided to Lender under this Agreement and the other Loan Documents. On
the Closing Date, Borrower shall deposit with Lender the amount for the Property set forth on such Schedule II hereto to
perform the Required Repairs for the Property. Amounts so deposited with Lender shall be held by Lender in accordance with Section
7.6 hereof. Amounts so deposited shall hereinafter be referred to as Borrower’s “Required Repair Fund”
and the account in which such amounts are held shall hereinafter be referred to as Borrower’s “Required Repair Account.”


 




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7.1.2      Release
of Required Repair Funds. Lender shall disburse to Borrower the Required Repair Funds from the Required Repair Account
from time to time upon satisfaction by Borrower of each of the following conditions: (a) Borrower shall submit a written request
for payment to Lender at least twenty (20) days prior to the date on which Borrower requests such payment be made and specifies
the Required Repairs to be paid, (b) on the date such request is received by Lender and on the date such payment is to be made,
no Event of Default shall exist and remain uncured, (c) Lender shall have received an Officers’ Certificate (i) stating that
all Required Repairs to be funded by the requested disbursement have been completed in good and workmanlike manner and in accordance
with all applicable federal, state and local laws, rules and regulations, such certificate to be accompanied by a copy of any license,
permit or other approval by any Governmental Authority required to commence or complete the Required Repairs, (ii) identifying
each Person that supplied materials or labor in connection with the Required Repairs to be funded by the requested disbursement,
and (iii) stating that each such Person has been paid in full or will be paid in full upon such disbursement, and (d) if the requested
disbursement is for a sum in excess of $50,000 for any applicable Individual Property, at Lender’s option, a title search
for the applicable Individual Property indicating that the applicable Individual Property is free from all liens, claims and other
encumbrances not previously approved by Lender, and (e) in the event the title search described in item (d) is not required by
Lender, such other evidence Lender shall have received such other evidence as Lender shall reasonably request that the Required
Repairs to be funded by the requested disbursement have been completed and are paid for or will be paid upon such disbursement
to Borrower. Lender shall not be required to make disbursements from the Required Repair Account with respect to the Property (i)
more than once a month and (ii) unless such requested disbursement is in an amount greater than $5,000.00 (or a lesser amount if
the total amount in the Required Repair Account is less than $5,000.00 in which case only one disbursement of the amount remaining
in the account shall be made) and such disbursement shall be made only upon satisfaction of each condition contained in this Section
7.1.2.


 




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Section 7.2           Tax
and Insurance Escrow Fund. Borrower shall pay to Lender (a) on the Closing Date an initial deposit and (b) on each Payment
Date thereafter (i) one-twelfth (1/12) of the Taxes and Other Charges that Lender reasonably estimates will be payable during the
next ensuing twelve (12) months in order to accumulate with Lender sufficient funds to pay all such Taxes and Other Charges at
least thirty (30) days prior to their respective due dates (but taking into consideration and not including such calculation any
taxes that are directly payable and actually paid by Tenants under Leases), and (ii) one-twelfth (1/12) 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 with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to the expiration
of the Policies (said amounts in (a) and (b) above hereinafter called the “Tax and Insurance Escrow Fund”).
Notwithstanding the foregoing, so long as Borrower maintains blanket policies of insurance in accordance with Section 6.1
hereof, the provisions of this Section 7.2 with regard to Insurance Premiums shall not be applicable, until and unless Lender
elects to apply such provisions following (i) the issuance by any insurer or its agent of any notice of cancellation, termination,
or lapse of any insurance coverage required under Section 6.1 hereof, (ii) any cancellation, termination, or lapse of any
insurance coverage required under Section 6.1 hereof whether or not any notice is issued, (iii) Lender having not received
from Borrower evidence of insurance coverages as required by and in accordance with the terms of Section 6.1 hereof, or
(iv) the occurrence of any Event of Default. Lender shall apply the Tax and Insurance Escrow Fund to payments of Taxes and Insurance
Premiums required to be made by Borrower pursuant to Section 5.1.2 hereof and under the Security Instrument. In making any
payment relating to the Tax and Insurance Escrow Fund, Lender may do so according to any bill, statement or estimate procured from
the appropriate public office (with respect to Taxes) or insurer or agent (with respect to Insurance Premiums), 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 and Insurance Escrow Fund shall exceed the amounts due for Taxes, Other Charges
and Insurance Premiums pursuant to Section 5.1.2 hereof, Lender shall, in its discretion, return any excess to Borrower
or credit such excess against future payments to be made to the Tax and Insurance Escrow Fund. If at any time Lender reasonably
determines that the Tax and Insurance Escrow Fund is not or will not be sufficient to pay Taxes, Other Charges and, if Borrower
is required to deposit sums in the Tax and Insurance Escrow Fund with respect to Insurance Premium, Insurance Premiums by the dates
set forth in (a) and (b) above, Lender shall notify Borrower in writing of such determination and Borrower shall increase its monthly
payments to Lender by the amount that Lender reasonably estimates is sufficient to make up the deficiency at least thirty (30)
days prior to the due date of the Taxes and Other Charges or, if applicable, thirty (30) days prior to expiration of the Policies,
as the case may be. Notwithstanding the foregoing, in the event a completed Partial Release or Substitution, upon Borrower’s
written request, Lender shall recalculate the monthly deposit required pursuant to (b) above taking into account the Individual
Properties securing the Loan following such completed Partial Release or Substitution and the Taxes and Other Charges that Lender
reasonably estimates will be payable during the next ensuing twelve (12) months with respect to such Individual Properties.


 


Section 7.3           Replacements
and Replacement Reserve.


 


7.3.1     Replacement
Reserve Fund. Borrower shall pay to Lender on each Payment Date thereafter during the existence of a Cash Sweep Period,
an amount equal to $0.25 multiplied by the then existing aggregate gross leasable area of the Property, divided by 12 (the “Replacement
Reserve Monthly Deposit”), which amounts are reasonably estimated by Lender in its reasonable discretion to be due for
replacements and repairs required to be made to any Individual Property during the calendar year (collectively, the “Replacements”).
In the event of a Partial Release or Substitution, the Replacement Reserve Monthly Deposit shall be reduced or increased to be
an amount equal to $0.25 multiplied by the total number of square feet of the Improvements located at the Individual Properties
that are subject to the Loan following the completion of such Partial Release or Substitution, divided by twelve. Amounts so deposited
shall hereinafter be referred to as Borrower’s “Replacement Reserve Fund” and the account in which such
amounts are held shall hereinafter be referred to as Borrower’s “Replacement Reserve Account.”


 




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7.3.2     Disbursements
from Replacement Reserve Account. Lender shall make disbursements from the Replacement Reserve Account to pay Borrower
only for the costs of the Replacements. Lender shall not be obligated to make disbursements from the Replacement Reserve Account
to reimburse Borrower for the costs of routine maintenance to the Property, replacements of inventory or for costs which are to
be reimbursed from Rollover Reserve Fund or Required Repair Fund. Lender shall disburse Replacement Reserve Funds from the Replacement
Reserve Account from time to time upon satisfaction by Borrower of each of the following conditions: (a) Borrower shall submit
a written request for payment to Lender at least twenty (20) days prior to the date on which Borrower requests such payment be
made, (b) on the date such request is received by Lender and on the date such payment is to be made, no Event of Default shall
exist and remain uncured, (c) Lender shall have received a Disbursement Certification and Schedule for the requested disbursement:
(i) stating the aggregate requested amount to be disbursed and that the items to be funded by the requested disbursement are Replacements,
(ii) providing a general description of such Replacements, (iii) including a schedule of each contractor, subcontractor, materialman
and/or person to be paid (or for which Borrower is to be reimbursed for amounts previously paid by it), providing a description
of the Replacements for which the disbursement is requested, including, as applicable the quantity and price of each item, the
costs of all materials used and all labor or other services payable in connection with such Replacements, and related invoice numbers,
(iv) stating that such contractors, subcontractors, materialmen and/or persons have been paid, or will be paid with the proceeds
of the requested disbursement, the amounts then due and payable to such Person in connection with the specified goods, work or
services provided thereby, and that Borrower has obtained lien waivers from each such contractor, subcontractor, materialman and/or
person with respect to such specified goods, work or services or will obtain such waivers concurrently with payment, (v) stating
that all Replacements (or the relevant portions thereof) to be funded by the requested disbursement have been completed in a good
and workmanlike manner and in accordance with all applicable Legal Requirements, have not been the subject of a previous disbursement,
and that all outstanding payables with respect thereto (other than those to be paid from the requested disbursement) have been
paid in full, and (vi) stating that all previous disbursements of Replacement Reserve Funds have been used to pay the Replacements
identified in the Disbursement Certification and Schedule provided in connection with such previous disbursements, and (d) with
respect to any requested disbursement in excess of $250,000.00: (i) copies of appropriate lien waivers, conditional lien waivers
or other evidence of payment reasonably satisfactory to Lender with respect to any contractor, subcontractor and/or materialman
whose proposed payment (or Borrower reimbursement, if applicable) is in excess of $250,000.00, (ii) if required by Lender, a title
search for the applicable Individual Property indicating that such Individual Property is free from all Liens, claims and other
encumbrances not previously approved by Lender (other than Permitted Encumbrances), (iii) in the event the title endorsement described
in item (ii) is not required by Lender, such other evidence as Lender shall request to demonstrate that the Replacements to be
funded by the requested disbursement have been completed and are paid for or will be paid upon such disbursement (other than any
retention amount which is not a part of such disbursement request), and (iv) Lender may require an inspection of the applicable
Individual Property, at Borrower’s expense, by an appropriate independent qualified professional selected by Lender prior
to making such disbursement in order to verify completion of the Replacements for which reimbursement is sought. Lender shall not
be required to make disbursements from the Replacement Reserve Account (i) more than once a month and (ii) unless such requested
disbursement is in an amount greater than $5,000.00 (or a lesser amount if the total amount in the Replacement Reserve Account
is less than $5,000.00), in which case only one disbursement of the amount remaining in the account shall be made) and such disbursement
shall be made only upon satisfaction of each condition contained in this Section 7.3.2.


 




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7.3.3     Performance
of Replacements. (a) Borrower shall make Replacements when required in order to keep each Individual Property in condition
and repair consistent with other comparable properties in the same market segment in the metropolitan area in which the applicable
Individual Property is located, and to keep each Individual Property or any portion thereof from deteriorating. Borrower shall
complete all Replacements in a good and workmanlike manner as soon as practicable following the commencement of making each such
Replacement.


 


(b)          In
addition to any insurance required under the Loan Documents, Borrower shall provide or cause to be provided workmen’s compensation
insurance, builder’s risk, and public liability insurance and other insurance to the extent required under applicable law
in connection with a particular Replacement. All such policies shall be in form and amount reasonably satisfactory to Lender. All
such policies which can be endorsed with standard mortgagee clauses making loss payable to Lender or its assigns shall be so endorsed.
Certified copies of such policies shall be delivered to Lender.


 


7.3.4     Failure
to Make Replacements. (a) Upon the occurrence of an Event of Default, Lender may use the Replacement Reserve Fund (or any
portion thereof) for any purpose, including completion of the Replacements as provided in Section 7.3.3, or for any other
repair or replacement to the Property or toward payment of the Debt in such order, proportion and priority as Lender may determine
in its discretion. Lender’s right to withdraw and apply the Replacement Reserve Fund shall be in addition to all other rights
and remedies provided to Lender under this Agreement and the other Loan Documents.


 


(b)          Nothing
in this Agreement shall obligate Lender to apply all or any portion of the Replacement Reserve Fund on account of an Event of Default
to payment of the Debt or in any specific order or priority.


 


7.3.5     Balance
in the Replacement Reserve Account. The insufficiency of any balance in the Replacement Reserve Account shall not relieve
Borrower from its obligation to fulfill all preservation and maintenance covenants in the Loan Documents.


 




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Section 7.4           Rollover
Reserve.


 


7.4.1     Deposits
to Rollover Reserve Fund. Borrower shall pay to Lender (a) on the Closing Date an initial deposit of $2,750,000.00 and
(b) on each Payment Date thereafter during the existence of a Cash Sweep Period, an amount equal to $1.50 multiplied by the then
existing aggregate gross leasable area of the Property, divided by 12 (the “Rollover Reserve Monthly Deposit”),
which amounts shall be deposited with and held by Lender for tenant improvement and leasing commission obligations incurred following
the date hereof in connection with Leases entered into in accordance with the terms hereof (the “TILC Obligations”).
In the event of a Partial Release or Substitution, the Rollover Reserve Monthly Deposit shall be reduced or increased to be an
amount equal to $1.50 multiplied by the total number of square feet of the Improvements located at the Individual Properties that
are subject to the Loan following the completion of such Partial Release or Substitution, divided by twelve. Amounts so deposited
shall hereinafter be referred to as the “Rollover Reserve Fund” and the account to which such amounts are held
shall hereinafter be referred to as the “Rollover Reserve Account.” Borrower shall also pay to Lender, for deposit
into the Rollover Reserve Account, all fees and other payments made to Borrower in connection with or relating to the rejection,
buy-out, termination, surrender or cancellation of any Lease (collectively, “Lease Termination Payments”). Notwithstanding
the aforementioned, deposits to the Rollover Reserve Fund following the initial deposit specified above shall not cause the aggregate
amount of the Rollover Reserve Fund to exceed $2,000,000.00 in the aggregate (the “Rollover Reserve Cap”) on
any Payment Date (after giving effect to the payment of the Rollover Reserve Monthly Deposit and any Lease Termination Payments)
and accordingly, to the extent a Rollover Reserve Monthly Deposit or a deposit of a Lease Termination Payment would result in the
aggregate amount of Rollover Reserve Funds in the Rollover Reserve Account exceeding the Rollover Reserve Cap, such Rollover Reserve
Monthly Deposit or Lease Termination Payment deposit shall be decreased by an amount equal to such excess. Any interest earned
on funds on deposit in the Rollover Reserve Account shall be added to and become a part of the Rollover Reserve Fund.


 


7.4.2     Disbursements
from Rollover Reserve Account. Lender shall make disbursements from the Rollover Reserve Account to pay Borrower only for
the costs of TILC Obligations. Lender shall disburse Rollover Reserve Funds from the Rollover Reserve Account from time to time
upon satisfaction by Borrower of each of the following conditions: (a) Borrower shall submit a written request for payment to Lender
at least twenty (20) days prior to the date on which Borrower requests such payment be made and specifies the TILC Obligations
to be paid, (b) on the date such request is received by Lender and on the date such payment is to be made, no Event of Default
shall exist and remain uncured, (c) Lender shall have received a Disbursement Certification and Schedule for the requested disbursement:
(i) stating the aggregate requested amount to be disbursed and that the items to be funded by the requested disbursement are TILC
Obligations, (ii) providing a general description of such TILC Obligations, (iii) including a schedule of each contractor, subcontractor,
materialman and/or person to be paid (or for which Borrower is to be reimbursed for amounts previously paid by it), providing a
description of the TILC Obligations for which the disbursement is requested, including, as applicable, the costs of all materials
used and all labor or other services payable in connection with such Replacements, and related invoice numbers, (iv) stating that
such contractors, subcontractors, materialmen and/or persons have been paid, or will be paid with the proceeds of the requested
disbursement, the amounts then due and payable to such Person in connection with the specified goods, work or services provided
thereby, and that Borrower has obtained, to the extent applicable, lien waivers from each such contractor, subcontractor, materialman
and/or person with respect to such specified goods, work or services or will obtain such waivers concurrently with payment, (v)
stating that all TILC Obligations (or the relevant portions thereof) to be funded by the requested disbursement have been completed
in a good and workmanlike manner and in accordance with all applicable Legal Requirements, have not been the subject of a previous
disbursement, and that all outstanding payables with respect thereto (other than those to be paid from the requested disbursement)
have been paid in full, and (vi) stating that all previous disbursements of Rollover Reserve Funds have been used to pay the TILC
Obligations identified in the Disbursement Certification and Schedule provided in connection with such previous disbursements,
and (d) with respect to any requested disbursement in excess of $250,000.00: (i) if applicable, copies of appropriate lien waivers,
conditional lien waivers or other evidence of payment reasonably satisfactory to Lender with respect to any contractor, subcontractor
and/or materialman whose proposed payment (or Borrower reimbursement, if applicable) is in excess of $250,000.00, (ii) if reasonably
required by Lender, a title search for the applicable Property indicating that such Property is free from all Liens, claims and
other encumbrances not previously approved by Lender (other than Permitted Encumbrances), (iii) in the event the title endorsement
described in item (ii) is not required by Lender, such other evidence as Lender shall reasonably request to demonstrate that the
TILC Obligations to be funded by the requested disbursement have been completed and are paid for or will be paid upon such disbursement
(other than any retention amount which is not a part of such disbursement request), and (iv) Lender may require an inspection of
the Property, at Borrower’s expense, by an appropriate independent qualified professional selected by Lender prior to making
such disbursement in order to verify completion of the TILC Obligations for which reimbursement is sought. Lender shall not be
required to make disbursements from the Rollover Reserve Account with respect to the Property (i) more than once a month and (ii)
unless such requested disbursement is in an amount greater than $5,000.00 (or a lesser amount if the total amount in the Rollover
Reserve Account is less than $5,000.00 in which case only one disbursement of the amount remaining in the account shall be made)
and such disbursement shall be made only upon satisfaction of each condition contained in this Section 7.4.2.


 




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Section 7.5           Excess
Cash Flow Reserve Fund.


 


7.5.1     Deposits
to Excess Cash Flow Reserve Account. During a Cash Sweep Period caused by a DSCR Trigger Event or Manager Trigger Event,
Borrower shall deposit with Lender all Excess Cash Flow in the Cash Management Account, which shall be held by Lender as additional
security for the Loan and amounts so held shall be hereinafter referred to as the “Excess Cash Flow Reserve Fund”
and the account to which such amounts are held shall hereinafter be referred to as the “Excess Cash Flow Reserve Account.”
Notwithstanding the aforementioned or the provisions of any other Loan Document, for Cash Sweep Periods existing solely as a result
of a Manager Trigger Event, the aggregate amount of the Excess Cash Flow Reserve Fund shall not exceed on any Payment Date an amount
equal to $10.00 per square foot multiplied by the aggregate net rentable area of all Individual Properties being managed by any
Manager that is the subject of a Bankruptcy Action (the “Excess Cash Flow Cap”). Accordingly, to the extent
any deposit to the Excess Cash Flow Reserve Fund during the existence of a Cash Sweep Period resulting solely from a Manager Trigger
Event would result in the aggregate amount of Excess Cash Flow Reserve Funds in the Excess Cash Flow Reserve Account exceeding
the then applicable Excess Cash Flow Reserve Cap, such deposit shall be decreased by an amount equal to such excess.


 


7.5.2     Release
of Excess Cash Flow Reserve Funds. Upon the occurrence of a Cash Sweep Event Cure, so long as no Event of Default or other
uncured Cash Sweep Event then exists, all Excess Cash Flow Reserve Funds shall be disbursed to Borrower in accordance with the
Cash Management Agreement. Additionally, so long as no Event of Default or other uncured Cash Sweep Event (other than any remaining
uncured Manager Trigger Events) then exists, upon the occurrence of a Cash Sweep Event Cure with respect to a Manager Trigger Event,
any funds in the Excess Cash Flow Reserve Account in excess of the Excess Cash Flow Cap that would be in effect after its recalculation
using only the square footage of the net rentable area of Individual Properties being managed by any Manager that is still the
subject of a Bankruptcy Action shall be disbursed to Borrower in accordance with the Cash Management Agreement. Any Excess Cash
Flow Reserve Funds remaining after the Debt has been paid in full shall be paid to Borrower.


 




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Section 7.6           Reserve
Funds, Generally. (a) Borrower grants to Lender a first-priority perfected security interest in each of the Reserve Funds
and any and all monies now or hereafter deposited in each Reserve Fund as additional security for payment of the Debt. Until expended
or applied in accordance herewith, the Reserve Funds shall constitute additional security for the Debt.


 


(b)          Upon
the occurrence of an Event of Default, Lender may, in addition to any and all other rights and remedies available to Lender, apply
any sums then present in any or all of the Reserve Funds to the payment of the Debt in any order in its discretion.


 


(c)          The
Reserve Funds shall not constitute trust funds and may be commingled with other monies held by Lender. The Reserve Funds shall
be held in an Eligible Account in Permitted Investments as directed by Lender or Lender’s Servicer. Unless expressly provided
for in this Article VII, all interest on a Reserve Fund shall not be added to or become a part thereof and shall be the
sole property of and shall be paid to Lender. Borrower shall be responsible for payment of any federal, state or local income or
other tax applicable to the interest earned on the Reserve Funds credited or paid to Borrower.


 


(d)          Borrower
shall not, without obtaining the prior written consent of Lender, further pledge, assign or grant any security interest in any
Reserve Fund or the monies deposited therein or permit any lien or encumbrance to attach thereto, or any levy to be made thereon,
or any UCC-1 Financing Statements, except those naming Lender as the secured party, to be filed with respect thereto.


 


(e)          Lender
and Servicer shall not be liable for any loss sustained on the investment of any funds constituting the Reserve Funds. Borrower
shall indemnify Lender and Servicer and hold Lender and Servicer harmless from and against any and all actions, suits, claims and
demands and actual out-of-pocket liabilities, losses, damages (excluding, in all events, consequential, punitive, special, exemplary
and indirect damages), obligations and costs and expenses (including litigation costs and reasonable out-of-pocket attorneys’
fees and expenses) arising from or in any way connected with the Reserve Funds or the performance of the obligations for which
the Reserve Funds were established. Borrower shall assign to Lender all rights and claims Borrower may have against all persons
or entities supplying labor, materials or other services which are to be paid from or secured by the Reserve Funds; provided, however,
that Lender may not pursue any such right or claim unless an Event of Default has occurred and remains uncured.


 


(f)          The
required monthly deposits into the Reserve Funds and the Monthly Debt Service Payment Amount, shall be added together and shall
be paid as an aggregate sum by Borrower to Lender.


 


(g)          Any
amount remaining in the Reserve Funds after the Debt has been paid in full shall be promptly returned to Borrower.


 




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Section 7.7 Ground
Rent Reserve Fund.


 


7.7.1     Deposit
to Ground Rent Reserve Fund. Borrower shall pay to Lender (a) on the Closing Date an initial deposit and (b) on each Payment
Date thereafter an amount (the “Ground Rent Reserve Monthly Deposit”) equal to one-twelfth (1/12) of the aggregate
amount of any Ground Rent that Lender reasonably estimates will be payable during the next ensuing twelve (12) months in order
to accumulate with Lender sufficient funds to pay all such Ground Rent at least thirty (30) days prior to any applicable due date.
Amounts so deposited shall hereinafter be referred to as the “Ground Rent Reserve Fund” and the account to which
such amounts are held shall hereinafter be referred to as the “Ground Rent Reserve Account.” If at any time
Lender reasonably determines that the Ground Rent Reserve Fund is not or will not be sufficient to pay any Ground Rents payable
by Borrower pursuant to all applicable Ground Leases by the dates any such payment is due, Lender shall notify Borrower in writing
of such determination and Borrower shall increase its monthly payments to Lender by the amount that Lender reasonably estimates
is sufficient to make up the deficiency at least thirty (30) days prior to the due date of such Ground Rents. In the event a completed
Partial Release or Substitution, upon Borrower’s written request, Lender shall recalculate the monthly deposit required pursuant
to (b) above taking into account the Individual Properties securing the Loan following such completed Partial Release or Substitution
that are Ground Lease Properties.


 


7.7.2     Disbursements
from Ground Rent Reserve Fund. Lender shall disburse amounts from the Ground Rent Reserve Account necessary to pay, when
due, any Ground Rent required to be paid by Borrower to a Ground Lessor in accordance with the provisions of the applicable Ground
Lease. Notwithstanding the foregoing, Lender may rely upon any bill, statement or estimate received from a Ground Lessor in making
any payment of Ground Rent from the Ground Rent Reserve Fund.


 


Section 7.8           CarolinaEast
Reserve Fund.


 


7.8.1     CarolinaEast
Reserve Deposit. Borrower shall pay to Lender on the Closing Date a deposit of $146,500.00, which amount shall be held
by Lender as additional security for the Loan. Amounts so held shall be hereinafter referred to as the “CarolinaEast Reserve
Fund” and the account to which such amounts are held shall hereinafter be referred to as the “CarolinaEast Reserve
Account.”


 


7.8.2     Release
of CarolinaEast Reserve Funds. Provided no Event of Default or uncured Cash Sweep Event then exists, Lender shall disburse
the full amount of the CarolinaEast Reserve Fund to Borrower upon Borrower providing Lender evidence, in form and substance reasonably
satisfactory to Lender, confirming that CarolinaEast Medical Center, a North Carolina not-for-profit corporation (“CarolinaEast”)
has executed a triple net Lease for space at the Individual Property located at 4252 Arendell St., Morehead City, NC 28557, leasing
approximately 17,578 rentable square feet, for a minimum rent of $20.00 per square foot and for a term of at least 10 years, and
has begun paying full, unabated rent pursuant to such Lease. Notwithstanding the foregoing, in the event such Lease provides for
any period of free rent, in lieu of the above described disbursement, Lender shall disburse on each Payment Date during such free
rent period an amount equal to the aggregate amount of the CarolinaEast Reserve Fund as of the effective date of such Lease divided
by the number of Payment Dates occurring during such free rent period.


 




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ARTICLE VIII - DEFAULTS


 


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


 


(i)          if
Borrower fails to make full and punctual payment of: (A) any Monthly Debt Service Payment Amount or any other amount payable on
a monthly basis (including, without limitation, any required monthly deposits to any Reserves) under any Loan Document within five
(5) days of the date on which such payment was due, (B) the entire remaining Debt on the Maturity Date, or (C) any other portion
of the Debt (other than any payment described in Sections 8.1(a)(i)(A) or (B) above) within five (5) days after written
notice by Lender to Borrower that the same is due and payable;


 


(ii)         if
any of the Taxes or Other Charges are not paid when the same are due and payable, unless sufficient funds allocable to Taxes and
Other Charges have been escrowed with Lender in the Tax and Insurance Fund and Lender has failed to pay such Taxes or Other Charges;


 


(iii)        if
the Policies are not kept in full force and effect, or if evidence of the Policies is not delivered to Lender upon request;


 


(iv)        if
Borrower Transfers or otherwise encumbers any portion of the Property without Lender’s prior written consent in violation
of the provisions of this Agreement and Article 6 of the Security Instrument;


 


(v)         if
any representation or warranty made by Borrower 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 the representation or warranty was made; provided, however, that if such representation or warranty which was false
or misleading in any material respect is, by its nature, curable, and such representation or warranty was not, to Borrower’s
knowledge, false or misleading in any material respect when made, then the same shall not constitute an Event of Default unless
Borrower has not cured the same within ten (10) Business Days after receipt by Borrower of notice from Lender in writing of such
breach;


 


(vi)        if
Borrower shall make an assignment for the benefit of creditors;


 


(vii)       if
(A) Borrower, Guarantor or any other guarantor or indemnitor under any guarantee issued in connection with the Loan shall
commence any case, proceeding or other action (I) under any existing or future law of any jurisdiction, domestic or foreign,
relating to bankruptcy, insolvency, reorganization, conservatorship or relief of debtors, seeking to have an order for relief entered
with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, winding-up,
liquidation, dissolution, composition or other relief with respect to it or its debts, or (II) seeking appointment of a receiver,
trustee, custodian, conservator or other similar official for it or for all or any substantial part of its assets, or the Borrower,
Guarantor or any other guarantor or indemnitor shall make a general assignment for the benefit of its creditors; or (B) there
shall be commenced against Borrower, Guarantor or any other guarantor or indemnitor any case, proceeding or other action of a nature
referred to in clause (A) above that is not dismissed within ninety (90) days of filing; or (C) there shall be commenced against
the Borrower, Guarantor or any other guarantor or indemnitor any case, proceeding or other action seeking issuance of a warrant
of attachment, execution, distraint or similar process against all or any substantial part of its assets that is not dismissed
within ninety (90) days of filing; or (D) the Borrower, Guarantor or any other guarantor or indemnitor shall take any action
in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the acts set forth in clause (A), (B),
or (C) above; or (E) the Borrower, Guarantor or any other guarantor or indemnitor shall generally not, or shall be unable
to, or shall admit in writing its inability to, pay its debts as they become due;


 




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(viii)      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;


 


(ix)         if
Borrower breaches any covenant contained in Section 4.1.30 or Section 5.1.24 hereof or any prohibition on Transfers
contained in Section 5.2.10 hereof (unless such Transfer is otherwise permitted pursuant to the Loan Documents), provided,
however, any such breach or violation shall not be deemed to be an Event of Default hereunder if (i) such breach or violation is
susceptible of cure and would not be reasonably likely to result in a material adverse effect on Borrower, the Property, Lender
or the Loan and (ii) within ten (10) Business Days of the earlier of (1) notice of such breach or violation from Lender or (2)
the date Borrower becomes aware of such breach or violation, Borrower cures such beach or violation and provides Lender with satisfactory
evidence of same, and provided further with respect to any Transfer which is in the nature of an involuntary lien, no Event of
Default shall exist if Borrower is contesting such lien in accordance with the terms of this Agreement;


 


(x)          intentionally
omitted;


 


(xi)         if
any of the assumptions related to the Borrower being a Special Purpose Entity contained in the Insolvency Opinion delivered to
Lender in connection with the Loan, or in any Additional Insolvency Opinion delivered subsequent to the closing of the Loan, is
or shall become untrue in any material respect, provided, however, the foregoing shall not be deemed an Event of Default hereunder
if Borrower exercises commercially reasonable efforts to cure the same within ten (10) Business Days of the earlier of (1) notice
thereof from Lender or (2) the date Borrower becomes aware thereof;


 


(xii)        if
Borrower fails to exercise commercially reasonable efforts to deliver any document or to take any other action Borrower is obligated
to take hereunder with respect to any Securitization for a period of ten (10) Business Days after such notice by Lender;


 


(xiii)       if
Borrower shall continue to be in Default under any of the terms, covenants or conditions of Section 9.1 hereof, or
fails to cooperate with Lender in connection with a Securitization pursuant to the provisions of Section 9.1 hereof, for
three (3) Business Days after notice to Borrower from Lender;


 


(xiv)      if
Borrower shall continue to be in dDefault under any of the other terms, covenants or conditions of this Agreement not specified
in subsections (i) to (xiii) above, for ten (10) days after notice to Borrower from Lender, in the case of any Default
which can be cured by the payment of a sum of money, or for thirty (30) days after notice from Lender in the case of any other
Default; provided, however, that if such nonmonetary Default is susceptible of cure but cannot reasonably be cured within such
thirty (30) day period and provided further that Borrower shall have commenced to cure such Default within such thirty (30) day
period and thereafter diligently and expeditiously proceeds to cure the same, such thirty (30) day period shall be extended for
such time as is reasonably necessary for Borrower in the exercise of due diligence to cure such Default, such additional period
not to exceed ninety (90) days;


 




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(xv)       intentionally
omitted;


 


(xvi)      Borrower
shall be in default under any other deed of trust, mortgage or security agreement covering any part of the Property whether it
be superior or junior in priority to the Security Instrument (it not being implied by this clause that any such encumbrance will
be permitted); or


 


(xvii)     (A)
If Guarantor fails at any time to comply with any of the representations, warranties or covenants set forth in the Guaranty, or
(B) if Guarantor fails at any time to maintain the Net Worth Threshold or the Liquid Assets Threshold.


 


(b)          Upon
the occurrence of an Event of Default (other than an Event of Default described in clauses (vi), (vii) or (viii)
above) and at any time thereafter, 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, Lender may take such action, without notice or demand, that Lender deems advisable
to protect and enforce its rights against Borrower and the Property, including declaring the Debt 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 any
or all of the Property, including all rights or remedies available at law or in equity; and upon any Event of Default described
in clauses (vi), (vii) or (viii) above, the Debt and Other Obligations of Borrower hereunder and under the
other Loan Documents shall immediately and automatically become due and payable, 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.


 


Section 8.2           Remedies.
(a) Upon the occurrence 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
Debt 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 all or any part of the Property.
Any such actions taken by Lender shall be cumulative and concurrent and may be pursued independently, singularly, successively,
together or otherwise, at such time and in such order as Lender may determine in its discretion, to the fullest extent permitted
by law, without impairing or otherwise affecting the other rights and remedies of Lender permitted by law, equity or contract or
as set forth herein or in the other Loan Documents. Without limiting the generality of the foregoing, Borrower agrees that if an
Event of Default is continuing (i) Lender is not 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 Security Instruments have been foreclosed, sold or
otherwise realized upon in satisfaction of the Debt or the Debt has been paid in full.


 




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(b)          With
respect to Borrower and the Property, nothing contained herein or in any other Loan Document shall be construed as requiring Lender
to resort to any Individual Property for the satisfaction of any of the Debt in any preference or priority to any other Individual
Property, and Lender may seek satisfaction out of all of the Properties, or any part thereof, in its discretion in respect of the
Debt. In addition, Lender shall have the right from time to time to partially foreclose the Security Instruments in any manner
and for any amounts secured by the Security Instruments then due and payable as determined by Lender in its 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 one or more of the Security Instruments to recover such delinquent
payments or (ii) in the event Lender elects to accelerate less than the entire outstanding principal balance of the Loan,
Lender may foreclose one or more of the Security Instruments to recover so much of the principal balance of the Loan as Lender
may accelerate and such other sums secured by one or more of the Security Instruments as Lender may elect. Notwithstanding one
or more partial foreclosures, the Properties shall remain subject to the Security Instruments to secure payment of sums secured
by the Security Instruments and not previously recovered.


 


(c)          If
an Event of Default exists, Lender shall have the right to sever the Note and the other Loan Documents into one or more separate
notes, mortgages and other security documents (the “Severed Loan Documents”) in such denominations as Lender
shall determine in its discretion for purposes of evidencing and enforcing its rights and remedies provided hereunder. 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) Business Days after notice has been given to Borrower by Lender of
Lender’s intent to exercise its rights under such power. Borrower shall be obligated to pay any costs or expenses incurred
in connection with the preparation, execution, recording or filing of the Severed Loan Documents and the Severed Loan Documents
shall not contain any representations, warranties or covenants not contained in the Loan Documents and any such representations
and warranties contained in the Severed Loan Documents will be given by Borrower only as of the Closing Date and no Severed Loan
Documents shall increase in any manner Borrower’s obligations, decrease Borrower’s rights or modify in a manner adverse
to Borrower any financial obligations of Borrower.


 


(d)          As
used in this Section 8.2, a “foreclosure” shall include, without limitation, any sale by power of sale.


 




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Section 8.3           Remedies
Cumulative; Waivers. 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 singularly, concurrently
or otherwise, at such time and in such order as Lender may determine in Lender’s discretion. 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.


 


ARTICLE IX - SPECIAL PROVISIONS


 


Section 9.1           Securitization.


 


9.1.1      Sale
of Notes and Securitization. (a) Borrower acknowledges and agrees that Lender may sell all or any portion of the Loan and
the Loan Documents, or issue one or more participations therein, or consummate one or more private or public securitizations of
rated single- or multi-class securities (the “Securities”) secured by or evidencing ownership interests in all
or any portion of the Loan and the Loan Documents or a pool of assets that include the Loan and the Loan Documents (such sales,
participations or securitizations, collectively, a “Securitization”).


 


(b)          At
the request of Lender, and to the extent not already required to be provided by or on behalf of Borrower under this Agreement,
Borrower shall, at no cost or expenses to Borrower, use reasonable efforts to provide information not in the possession of Lender
or which may be reasonably required by Lender or take other actions reasonably required by Lender, in each case in order to satisfy
the market standards to which Lender customarily adheres or which may be reasonably required by prospective investors or the Rating
Agencies in connection with any such Securitization. Lender shall have the right to provide to prospective investors and the Rating
Agencies any information in its possession, including financial statements relating to Borrower, Guarantor, if any, the Property
and, if not subject to a confidentiality agreement, any Tenant of the Improvements. Borrower acknowledges that certain information
regarding the Loan and the parties thereto and the Property may be included in a private placement memorandum, prospectus or other
disclosure documents. Borrower agrees that each of Borrower, Guarantor and their respective officers and representatives, shall,
at no cost or expense to Borrower at Lender’s request, cooperate with Lender’s efforts to arrange for a Securitization
in accordance with the market standards to which Lender customarily adheres and/or which may be required by prospective investors
or the Rating Agencies in connection with any such Securitization, provided that Borrower shall not be required to increase in
any manner Borrower’s obligations, decrease Borrower’s rights or modify in a manner adverse to Borrower any financial
obligations of Borrower. Borrower and Guarantor agree to review, at Lender’s request in connection with the Securitization,
the Disclosure Documents as such Disclosure Documents relate to Borrower, Guarantor, the Property and the Loan, including, the
sections entitled “Risk Factors,” “Special Considerations,” “Description of the Security Instrument,”
“Description of the Mortgage Loan and Mortgaged Property,” “The Manager,” “The Borrower,” and
“Certain Legal Aspects of the Mortgage Loan,” and shall confirm that the factual statements and representations contained
in such sections and such other information in the Disclosure Documents (to the extent such information relates to, or is based
on, or includes any information regarding the Property, Borrower, Guarantor, Manager or the Loan) do not contain any untrue statement
of a material fact or omit to state a material fact necessary in order to make the statements made, in the light of the circumstances
under which they were made, not misleading.


 




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(c)          (i)          Borrower
agrees to make upon Lender’s written request, without limitation, all structural or other changes to the Loan (including
delivery of one or more new component notes to replace the original note or modify the original note to reflect multiple components
of the Loan and such new notes or modified note may have different interest rates and amortization schedules), modifications to
any documents evidencing or securing the Loan, creation of one or more mezzanine loans (including amending Borrower’s organizational
structure to provide for one or more mezzanine borrowers), delivery of opinions of counsel acceptable to the Rating Agencies or
potential investors and addressing such matters as the Rating Agencies or potential investors may require; provided, however, that
in creating such new notes or modified notes or mezzanine notes Borrower shall not be required to modify (A) the initial weighted
average interest rate payable under the Note (and the weighted average interest rate shall only change in the event of an Event
of Default or the application of any Insurance Proceeds or Condemnation Proceeds to the Debt), (B) the stated maturity of the Note,
(C) the aggregate amortization of principal of the Note, (D) any other material economic term of the Loan, (E) decrease the
time periods during which Borrower is permitted to perform its obligations under the Loan Documents, or (F) any other term contained
in the Loan Documents, the effect of which would be to increase Borrower’s obligations or decrease Borrower’s rights.
In connection with the foregoing, Borrower covenants and agrees to modify the Cash Management Agreement to reflect the newly created
components or mezzanine loans.


 


(ii)         Without
limiting the foregoing, Borrower agrees that upon Lender’s request that the respective original principal amounts of Note
A-1 and Note A-2 be revised in connection with a Securitization (provided that such revisions shall not change the aggregate principal
balance of such Notes or modify any of its terms set forth in clauses (c)(i)(A) – (F) above), Borrower shall complete the
following actions within five (5) Business Days following Lender’s written request therefore:


 


(A)         Borrower
shall execute and deliver a replacement for each of Note A-1 and Note A-2 with such revised original principal amounts, such replacement
Notes to be in the forms executed and delivered as of the closing of the Loan, and upon such execution and delivery, such replacement
Notes shall be the Note A-1 and Note A-2 defined herein; and


 


(B)         If
requested by Lender, Borrower shall cause its respective counsel to issue supplemental or replacement legal opinions in the form
of such counsel’s opinion delivered as of the closing of the Loan with respect to the replacement Notes.


 


(d)          If
requested by Lender, Borrower shall provide, at no additional cost to Borrower, Lender, promptly upon request, with any financial
statements, or financial, statistical or operating information, as Lender reasonably shall determine to be required pursuant to
Regulation AB under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), or any amendment, modification or replacement thereto or other legal requirements in connection with any private
placement memorandum, prospectus or other disclosure documents or any filing pursuant to the Exchange Act in connection with the
Securitization or as shall otherwise be reasonably requested by Lender.


 


(e)          Borrower
hereby appoints Lender its attorney-in-fact with full power of substitution (which appointment shall be deemed to be coupled with
an interest and to be irrevocable until the Loan is paid and the Security Instrument is discharged of record, with Borrower hereby
ratifying all that its said attorney shall do by virtue thereof) to execute and deliver all documents and do all other acts and
things necessary or desirable to effect any Securitization authorized hereunder; provided, however, that unless an Event of Default
exists, Lender shall not execute or deliver any such documents or do any such acts or things under such power.


 




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9.1.2           Securitization
Costs. All reasonable third party costs and expenses incurred by Borrower and Guarantor in connection with Borrower’s
compliance with this Section 9.1 (including the fees and expenses of the Rating Agencies) shall be paid by Lender.


 


Section 9.2           Right
To Release Information. Following the occurrence of any Event of Default, Lender may forward to any broker, prospective
purchaser of any Individual Property or the Loan, or other person or entity all documents and information which Lender now has
or may hereafter acquire relating to the Debt, Borrower, any Guarantor, any indemnitor, any Individual Property and any other matter
in connection with the Loan, whether furnished by Borrower, any Guarantor, any indemnitor or otherwise, as Lender reasonably determines
necessary or desirable. Borrower irrevocably waives any and all rights it may have to limit or prevent such disclosure, including
any right of privacy or any claims arising therefrom.


 


Section 9.3           Exculpation.
(a) 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 Security Instrument or the other Loan Documents by any action or proceeding
wherein a money judgment shall be sought against Borrower or any officer, director, shareholder, partner, member, principal, employee
of Borrower or any direct or indirect owner of Borrower (provided that the foregoing shall not limit in any manner, the liability
of any Guarantor), 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 Security Instrument
and the other Loan Documents, or in the Property (or any portion thereof), the Rents, 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 Rents and in any other collateral given to Lender, and Lender, by accepting the Note, this Agreement, the Security Instrument
and the other Loan Documents, agrees that it 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 Security Instrument
or the other Loan Documents. The provisions of this Section 9.3 shall not, however, (i) constitute a waiver, release or
impairment of any obligation evidenced or secured by any of the Loan Documents; (ii) impair the right of Lender to name Borrower
as a party defendant in any action or suit for foreclosure and sale under the Security Instrument; (iii) affect the validity or
enforceability of any guaranty, indemnity or similar agreement or undertaking made in connection with the Loan or any of the rights
and remedies of Lender thereunder; (iv) impair the right of Lender to obtain the appointment of a receiver; (v) impair the
enforcement of any assignment of leases contained in the Security Instrument and any other Loan Documents; or (vi) constitute a
prohibition against Lender to seek a deficiency judgment against Borrower in order to fully realize the security granted by the
Security Instrument or to commence any other appropriate action or proceeding in order for Lender to exercise its remedies against
the Property (or any portion thereof).


 




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(b)          Nothing
contained herein shall in any manner or way release, affect or impair the right of Lender to recover from Borrower, and Borrower
shall be fully and personally liable and subject to legal action, for any actual out-of-pocket loss, cost, expense, damage, claim
or other obligation (including reasonable out-of-pocket attorneys’ fees and expenses and other collection and litigation
expenses but in all events excluding consequential, punitive, special, indirect and exemplary damages) incurred or suffered by
Lender arising out of or in connection with the following:


 


(i)          fraud
or intentional misrepresentation by Borrower or Guarantor, or any affiliate of the foregoing;


 


(ii)         the
gross negligence or willful misconduct of Borrower or Guarantor, or any affiliate of the foregoing;


 


(iii)        intentional
material physical waste of the Property, provided, however, that if Borrower does not have sufficient cash flow on a current basis
to prevent waste, any waste shall not be deemed intentional and Borrower shall have no liability under this clause (iii);


 


(iv)        the
removal or disposal of any portion of the Property in violation of the terms of the Loan Documents;


 


(v)         the
misappropriation or conversion by Borrower or Guarantor, or any affiliate of the foregoing, of (A) any Insurance Proceeds paid
by reason of any loss, damage or destruction to the Property, (B) any Awards received in connection with a Condemnation of all
or a portion of the Property, (C) any Rents or other Property income or collateral proceeds, or (D) any Rents paid more than one
month in advance (including security deposits);


 


(vi)        following
the occurrence of an Event of Default, the failure to either apply rents or other Property income, collected after such Event of
Default, to the ordinary, customary, and necessary expenses of operating the Property or, upon demand, to deliver such rents or
other Property income to Lender;


 


(vii)       failure
to maintain insurance or to pay taxes and assessments, or to pay charges for labor or materials or other charges or judgments that
can create Liens on any portion of the Property (unless Lender is escrowing funds therefor and fails to make such payments or has
taken possession of the Property following an Event of Default, has received all Rents from the Property applicable to the period
for which such insurance, taxes or other items are due, and thereafter fails to make such payments), it being acknowledged that
if Borrower does not have sufficient cash flow on a current basis to maintain insurance or to pay taxes and assessments or to pay
charges for labor or materials or other charges or judgments that create Liens on any portion of the Property, Borrower shall have
no liability under this clause (vii);


 


(viii)      any
security deposits, advance deposits or any other deposits collected with respect to the Property which are not delivered to Lender
upon a foreclosure of the Property or action in lieu thereof, except to the extent any such security deposits were applied (A)
in accordance with the terms and conditions of any of the Leases prior to the occurrence of the Event of Default that gave rise
to such foreclosure or action in lieu thereof or (B) previously delivered to Lender to be applied to repay the Loan;


 




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(ix)         any
failure by Borrower to obtain Lender’s prior written consent (to the extent such consent is required pursuant to the terms
of the Loan Documents) to any modification, amendment or terminations of any Lease;


 


(x)          any
failure by Borrower to comply with any of the representations, warranties or covenants set forth in Sections 4.1.37 or 5.1.19
hereof;


 


(xi)         any
failure by Borrower to permit on-site inspections of the Property in accordance with the terms and provisions of the Loan Documents;


 


(xii)        the
failure of Borrower to appoint a new Manager at Lender’s request, to the extent Borrower is expressly required to do so pursuant
to this Agreement;


 


(xiii)       any
failure by Borrower to comply with any representation, warranty or covenant set forth in Section 4.1.30 hereof that does
not result, in whole or in part, in the substantive consolidation of the assets and liabilities of Borrower with those of any other
Person or entity pursuant to the Bankruptcy Code;


 


(xiv)      Borrower
fails to obtain Lender’s prior written consent to any Transfer to the extent required pursuant to the terms of the Loan Documents
that is not a Full Recourse Transfer; or


 


(xv)      Borrower
fails to obtain Lender’s prior written consent, to the extent required pursuant to the terms of the Loan Documents, to any
Indebtedness or voluntary Lien encumbering the Property that is not a Full Recourse Lien.


 


(c)          Notwithstanding
anything to the contrary in this Agreement, the Note or any of the other Loan Documents, Borrower shall be personally liable for
the Debt if (A) Borrower fails to obtain Lender’s prior written consent (to the extent such consent is required pursuant
to the terms of the Loan Documents) to any Transfer (a “Full Recourse Transfer”) (1) that results in a change
in Control over Borrower or (2) of any of the Property by deed, bill of sale, installment sales agreement, ground lease (excluding
any lease to a Tenant in the ordinary course of business) or any similar agreement; (B) Borrower fails to obtain Lender’s
prior written consent (to the extent such consent is required pursuant to the terms of the Loan Documents) to any voluntary mortgage,
deed of trust, collateral assignment or similar voluntary lien or interest encumbering all or a substantial portion of the Property
(a “Full Recourse Lien”); (C) Borrower shall at any time hereafter make an assignment for the benefit of its
creditors; (D) Borrower fails to comply with any representation, warranty or covenant set forth in Section 4.1.30 hereof,
which failure results in a substantive consolidation of Borrower with another Person or entity pursuant to the Bankruptcy Code;
(E) Borrower admits, in writing or in any legal proceeding, its insolvency or inability to pay its debts as they become due, provided
that neither Borrower nor Guarantor shall have liability under this clause (E) in connection with the delivery of financial statements
or any other filing required to be delivered pursuant to a subpoena or any order entered in a bankruptcy proceeding or required
under applicable law in connection with any such petition made by any Person which is not an Affiliate of Borrower; (F) intentionally
omitted; (G) Borrower files, or consents in writing to, a petition for bankruptcy, insolvency, dissolution or liquidation under
the Bankruptcy Code or any other Federal or state bankruptcy or insolvency law, or there is a filing of an involuntary petition
against Borrower under the Bankruptcy Code or any other Federal or state bankruptcy or insolvency law in which Borrower or Guarantor
colludes with, or otherwise assists any party in connection with such filing, or solicits or causes to be solicited petitioning
creditors for any involuntary petition against Borrower from any party (provided, however, that the failure to defend such an involuntary
petition where no meritorious defense exists shall not be deemed “assisting” for purposes hereof).


 




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(d)          Nothing
herein shall be deemed to constitute a waiver by Lender of any right Lender may have under Sections 506(a), 506(b), 1111(b) or
any other provision of the Bankruptcy Code to file a claim for the full amount of the Debt or to require that all collateral shall
continue to secure all of the Debt.


 


Section 9.4           Matters
Concerning Manager. If (a) an Event of Default hereunder has occurred and remains uncured, (b) Manager shall become
subject to a Bankruptcy Action, or (c) a default by Manager occurs under the Management Agreement, Borrower shall, at the request
of Lender, terminate the Management Agreement and replace the Manager with a Qualified Manager pursuant to a Replacement Management
Agreement.


 


Section 9.5           Servicer.
At the option of Lender, the Loan may be serviced by a master servicer, primary servicer, special servicer or trustee (any such
master servicer, primary servicer, special servicer, and trustee, together with its agents, nominees or designees, are collectively
referred to as “Servicer”) selected by Lender and Lender may delegate all or any portion of its responsibilities
under this Agreement and the other Loan Documents to Servicer pursuant to a pooling and servicing agreement, servicing agreement,
special servicing agreement or other agreement providing for the servicing of one or more mortgage loans (collectively, 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, and Borrower shall not be responsible for payment of the regular monthly
master servicing fee or trustee fee due to Servicer under the Servicing Agreement or any fees or expenses required to be borne
by, and not reimbursable to, Servicer. Notwithstanding the foregoing, Borrower shall promptly reimburse Lender on demand for the
following costs and expenses payable by Lender to Servicer as a result of the Loan becoming specially serviced as a result of an
imminent, actual or reasonably foreseeable default or breach with respect to the Loan, or the occurrence of an Event of Default:
(i) any liquidation fees that are due and payable to Servicer under the Servicing Agreement in connection with the exercise of
any or all remedies permitted under this Agreement, (ii) any workout fees and special servicing fees that are due and payable to
Servicer under the Servicing Agreement, which fees may be due and payable under the Servicing Agreement on a periodic or continuing
basis, and which may be payable to a special servicer, in an amount as great as one percent of the outstanding principal balance
of the Loan, upon return of the Loan by the special servicer to the master servicer, and (iii) the reasonable out-of-pocket costs
of all amounts owed to any third-party contractor in connection with the Servicer obtaining any third-party report, including any
property inspections or appraisals of the Properties (or any updates to any existing inspection or appraisal) that Servicer determines
to obtain or may be required to obtain (other than the cost of regular annual inspections required to be borne by Servicer under
the Servicing Agreement), provided that such fees shall in no event exceed the fees charged to similarly situated borrowers.


 


Section 9.6           Lender/Servicer
Loan Administration. From and after the date hereof, the owner and holder of Note A-1 shall be deemed the agent of the
holder(s) of Note A-2 in connection with all matters related to the administration, servicing and payment of the Loan, and such
owner and holder of Note A-1 shall be Borrower’s point of contact in connection with all such matters. Notwithstanding the
forgoing, following the transfer of Note A-1 to a Securitization, the Servicer for such Securitization to which Note A-1 is transferred
shall be deemed the agent of the holder(s) of Note A-1 and Note A-2, and such Servicer shall be Borrower’s point of contact
in connection with all matters related to the administration, servicing and payment of the Loan.


 




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ARTICLE X - MISCELLANEOUS


 


Section 10.1         Survival.
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 Debt is 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 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.


 


Section 10.2         Intentionally
Omitted.


 


Section 10.3         Governing
Law. (a)          LENDER HAS OFFICES IN THE STATE OF NEW YORK AND
THE PROCEEDS OF THE LOAN DELIVERED PURSUANT HERETO WERE DISBURSED FROM THE STATE OF NEW YORK (“GOVERNING STATE”), 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, THE NOTE AND THE OTHER LOAN DOCUMENTS AND THE OBLIGATIONS ARISING HEREUNDER AND THEREUNDER 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 CONFLICTS 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 IN WHICH THE APPLICABLE INDIVIDUAL
PROPERTY IS LOCATED, IT BEING UNDERSTOOD THAT, TO THE FULLEST EXTENT PERMITTED BY THE LAW OF SUCH STATE, 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, THE NOTE AND THE OTHER LOAN DOCUMENTS, AND THIS AGREEMENT, THE NOTE
AND THE OTHER LOAN DOCUMENTS 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.


 




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(b)          ANY
LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR BORROWER ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS
(“ACTION”) MAY AT LENDER’S OPTION BE INSTITUTED IN (AND IF ANY ACTION IS ORIGINALLY BROUGHT IN ANOTHER VENUE,
THE ACTION SHALL AT THE ELECTION OF LENDER BE TRANSFERRED TO) 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 OR FORUM NON CONVENIENS OF ANY SUCH ACTION. IN THE EVENT THAT ANY BORROWER’S PRINCIPAL OFFICE
IS NOT LOCATED IN THE STATE OF NEW YORK AT ANY TIME IN THE FUTURE, SUCH BORROWER (I) SHALL PROMPTLY DESIGNATE AND APPOINT AN AUTHORIZED
AGENT, REASONABLY ACCEPTABLE TO LENDER, TO ACCEPT AND ACKNOWLEDGE ON SUCH BORROWER’S BEHALF SERVICE OF ANY AND ALL PROCESS
WHICH MAY BE SERVED IN ANY SUCH ACTION IN ANY FEDERAL OR STATE COURT IN NEW YORK, NEW YORK, AND IN SUCH CASE, SUCH 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 SUCH BORROWER IN ANY SUCH ACTION IN THE
STATE OF NEW YORK, (II) SHALL GIVE PROMPT NOTICE TO LENDER OF (A) THE NAME AND ADDRESS OF SUCH AGENT, (B) ANY CHANGED ADDRESS THEREAFTER
OF ITS AUTHORIZED AGENT HEREUNDER, (III) 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 (IV) 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.


 


Section 10.4         Modification,
Waiver in Writing. No modification, amendment, extension, discharge, termination or waiver of any provision of this Agreement,
or of the Note, 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 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.


 


Section 10.5         Delay
Not a Waiver. 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 the Note or under any
other Loan Document, or any other instrument given as security therefor, 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,
the Note 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, the Note or the other Loan Documents, or to declare a default for failure to
effect prompt payment of any such other amount.


 




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Section 10.6         Notices.
All notices, consents, approvals and requests required or permitted hereunder or under any other Loan Document shall be given in
writing and shall be effective for all purposes if hand delivered or sent by (a) certified or registered United States mail, postage
prepaid, return receipt requested or (b) expedited prepaid delivery service, either commercial or United States Postal Service,
with proof of attempted delivery, or (c) by telecopier (with answer back acknowledged) and with a second copy to be sent to the
intended recipient by any other means permitted under this Section, addressed as follows (or at such other address and Person as
shall be designated from time to time by any party hereto, as the case may be, in a written notice to the other parties hereto
in the manner provided for in this Section):


 


	 	If to Lender:	
        KeyBank National Association

	 	 	11501 Outlook, Suite 300
	 	 	Overland Park, Kansas 66211
	 	 	Facsimile No.: 877-379-1625
	 	 	Attention: Loan Servicing
	 	 	 
	 	with a copy to:	Dan Flanigan
	 	 	POLSINELLI
	 	 	900 West 48th Place, Suite 900
	 	 	Kansas City, Missouri 64112
	 	 	Facsimile No.: 816-753-1536
	 	 	 
	 	If to a Borrower:	405 Park Avenue
	 	 	New York, New York 10022
	 	 	Attention: HTI Counsel
	 	 	 
	 	with a copy to:	Proskauer Rose LLP
	 	 	Eleven Times Square
	 	 	New York, New York 10036
	 	 	Attention: David J. Weinberger, Esq.
	 	 	Facsimile No.: 212-969-2900


 


A notice shall be deemed to have been given:
in the case of hand delivery, at the time of delivery; in the case of registered or certified mail, when delivered or the first
attempted delivery on a Business Day; or in the case of expedited prepaid delivery, upon the first attempted delivery on a Business
Day; or in the case of telecopy, upon sender’s receipt of a machine-generated confirmation of successful transmission after
advice by telephone to recipient that a telecopy notice is forthcoming.


 




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Section 10.7         Trial
by Jury. TO THE FULLEST EXTENT NOW OR HEREAFTER PERMITTED BY APPLICABLE LAW, BORROWER AND LENDER HEREBY AGREE NOT TO
ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVE ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY
SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO 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. LENDER
AND BORROWER ARE HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY
BORROWER.


 


Section 10.8         Headings.
The Article 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.


 


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.


 


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. If 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, Borrower agrees that neither Lender nor its agents shall be liable for any monetary
damages, and Borrower’s sole remedies shall be limited to commencing an action seeking injunctive relief or declaratory judgment.
The parties hereto agree that any action or proceeding to determine whether Lender has acted reasonably shall be determined by
an action seeking declaratory judgment.


 




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Section 10.13         Expenses;
Indemnity. (a) Borrower covenants and agrees to pay or, if Borrower fails to pay, to reimburse, Lender upon receipt of
written notice from Lender for all reasonable out-of-pocket costs and expenses (including reasonable out-of-pocket attorneys’
fees and expenses) incurred by Lender in connection with (i) the preparation, negotiation, execution and delivery of this Agreement
and the other Loan Documents and the consummation of the transactions contemplated hereby and thereby and all the costs of furnishing
all opinions by counsel for Borrower (including any opinions requested prior to the Closing Date by Lender as to any legal matters
arising under this Agreement or the other Loan Documents with respect to the Property or any portion thereof); (ii) Borrower’s
ongoing performance of and compliance with Borrower’s respective 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; (iii) Lender’s ongoing performance and compliance with all agreements and
conditions contained in this Agreement and the other Loan Documents on its part to be performed or complied with after the Closing
Date; (iv) the negotiation, preparation, execution, delivery and administration of any consents, amendments, waivers or other modifications
to this Agreement and the other Loan Documents and any other documents or matters requested by Lender; (v) securing Borrower’s
compliance with any requests made pursuant to the provisions of this Agreement; (vi) the filing and recording fees and expenses,
title insurance and fees and expenses of counsel for providing to Lender all required legal opinions, and other similar expenses
incurred in creating and perfecting the Lien in favor of Lender pursuant to this Agreement and the other Loan Documents; (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, this Agreement, the other Loan Documents, the Property
(or any portion thereof), or any other security given for the Loan; and (viii) 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 any portion thereof (including
any fees incurred by Servicer in connection with the transfer of the Loan to a special servicer prior to a Default or Event of
Default) 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; 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 gross negligence, illegal acts,
fraud or willful misconduct of Lender. Any cost and expenses due and payable to Lender may be paid from any amounts in the Clearing
Account or Cash Management Account, as applicable.


 


(b)          Borrower
shall indemnify, defend and hold harmless the Indemnified Parties from and against any and all other actual out-of-pocket liabilities,
obligations, losses, damages (excluding, in all events, consequential, punitive, special, exemplary and indirect damages), penalties,
actions, judgments, suits, claims, costs, expenses and disbursements of any kind or nature whatsoever (including the reasonable
out-of-pocket fees and disbursements of counsel in connection with any investigative, administrative or judicial proceeding commenced
or threatened, whether or not an Indemnified Party shall be designated a party thereto), that are imposed on, incurred by, or asserted
against any Indemnified Party 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, or (ii) the use or intended
use of the proceeds of the Loan (collectively, the “Indemnified Liabilities”); provided, however, that Borrower
shall not have any obligation to any Indemnified Party hereunder to the extent that such Indemnified Liabilities arise from the
gross negligence, illegal acts, fraud or willful misconduct of such Indemnified Party. 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 the Indemnified Parties.


 




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(c)          Borrower
covenants and agrees to pay for or, if Borrower fails to pay, to reimburse Lender for, any fees and expenses incurred by any Rating
Agency in connection with any Rating Agency review of the Loan, the Loan Documents or any transaction contemplated thereby or any
consent, approval, waiver or confirmation obtained from such Rating Agency pursuant to the terms and conditions of this Agreement
or any other Loan Document that results from an action or request of Borrower and Lender shall be entitled to require payment of
such fees and expenses as a condition precedent to the obtaining of any such consent, approval, waiver or confirmation.


 


Section 10.14         Schedules
Incorporated. The Schedules 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 10.15         Offsets,
Counterclaims and Defenses. Any assignee of Lender’s interest in and to this Agreement, the Note 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 10.16         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 (or any portion thereof) other than that of mortgagee, beneficiary or lender.


 


(b)          This
Agreement and the other Loan Documents are solely for the benefit of Lender and Borrower and nothing contained in this Agreement
or the other Loan Documents shall be deemed to confer upon anyone other than Lender and Borrower any right to insist upon or to
enforce the performance or observance of any of the obligations contained herein or therein. All conditions to the obligations
of Lender to make the Loan hereunder are imposed solely and exclusively for the benefit of Lender and no other Person shall have
standing to require satisfaction of such conditions in accordance with their terms or be entitled to assume that Lender will refuse
to make the Loan in the absence of strict compliance with any or all thereof and no other Person shall under any circumstances
be deemed to be a beneficiary of such conditions, any or all of which may be freely waived in whole or in part by Lender if, in
Lender’s discretion, Lender deems it advisable or desirable to do so.


 


Section 10.17         Publicity.
All news releases, publicity or advertising by Borrower or its Affiliates other than releases required by law 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,
KeyBank National Association or any of their Affiliates shall be subject to the prior written approval of Lender and KeyBank National
Association in their reasonable discretion.


 




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Section 10.18         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 partners and others with interests in Borrower,
and of the Property, and agrees not to 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 (or any portion thereof) for the collection
of the Debt without any prior or different resort for collection or of the right of Lender to the payment of the Debt out of the
net proceeds of the Property (or any portion thereof) in preference to every other claimant whatsoever.


 


Section 10.19         Waiver
of Counterclaim. 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.


 


Section 10.20         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 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.


 


Section 10.21         Brokers
and Financial Advisors. Borrower hereby represents that it has dealt with no financial advisors, brokers, underwriters,
placement agents, agents or finders in connection with the transactions contemplated by this Agreement. Borrower hereby agrees
to indemnify, defend and hold Lender harmless from and against any and all actual out-of-pocket claims, liabilities, costs and
expenses of any kind (including Lender’s reasonable out-of-pocket attorneys’ fees and expenses) arising from a claim
by any Person that such Person acted on behalf of Borrower or Lender in connection with the transactions contemplated herein. The
provisions of this Section 10.21 shall survive the expiration and termination of this Agreement and the payment of the Debt.


 


Section 10.22         Prior
Agreements. This Agreement and the other Loan Documents contain the entire agreement of the parties hereto and thereto
in respect of the transactions contemplated hereby and thereby, and all prior agreements among or between such parties, whether
oral or written, between Borrower and Lender are superseded by the terms of this Agreement and the other Loan Documents.


 




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Section 10.23         Liability.
If Borrower consists of more than one (1) Person the obligations and liabilities of each Person shall be joint and several. Under
no circumstances whatsoever shall Lender have any liability for punitive, special, consequential or incidental damages in connection
with, arising out of, or in any way related to or under this Loan Agreement or any other Loan Document or in any way related to
the transactions contemplated or any relationship established by this Agreement or any other Loan Document or any act, omission
or event occurring in connection herewith or therewith, and, to the extent not expressly prohibited by applicable laws, Borrower
for itself and its Guarantor and indemnitors waives all claims for punitive, special, consequential or incidental damages. Lender
shall have no duties or responsibilities except those expressly set forth in this Agreement, the Security Instrument and the other
Loan Documents. Neither Lender nor any of its officers, directors, employees or agents shall be liable for any action taken or
omitted by them as such hereunder or in connection herewith, unless caused by their gross negligence or willful misconduct. This
Agreement shall be binding upon and inure to the benefit of Borrower and Lender and their respective successors and assigns forever.


 


Section 10.24         Certain
Additional Rights of Lender (VCOC). Solely to the extent that Lender or any direct or indirect holder of an interest in
the Loan must qualify as a "venture capital operating company" (as defined in Department of Labor Regulation 29 C.F.R.
§ 2510.3 101), Lender shall have the right to consult with and advise Borrower regarding significant business activities and
business and financial developments of Borrower, provided that any such advice or consultation or the result thereof shall be completely
nonbinding on Borrower.


 


Section 10.25         OFAC.
Borrower hereby represents, warrants and covenants that neither Borrower nor any Guarantor is (or will be) a person with whom Lender
is restricted from doing business under regulations of the Office of Foreign Asset Control (“OFAC”) of the Department
of the Treasury of the United States of America (including, those Persons named on OFAC’s Specially Designated and Blocked
Persons list) or under any statute, executive order (including, the September 24, 2001 Executive Order Blocking Property and Prohibiting
Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism), or other governmental action and is not and shall
not engage in any dealings or transactions or otherwise be associated with such persons. In addition, Borrower hereby covenants
to provide Lender with any additional information that Lender deems necessary from time to time in order to ensure compliance with
all applicable laws concerning money laundering and similar activities.


 


Section 10.26         Duplicate
Originals; Counterparts. This Agreement may be executed in any number of duplicate originals and each duplicate original
shall be deemed to be an original. This Agreement may be executed in several counterparts, each of which counterpart shall be deemed
an original instrument and all of which together shall constitute a single Agreement. The failure of any party hereto to execute
this Agreement, or any counterpart hereof, shall not relieve the other signatories from their obligations hereunder.


 




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Section 10.26         Confidentiality.
Notwithstanding anything to the contrary in this Agreement, Lender agrees that any reports, statements or other information required
to be delivered or provided under this Agreement or any of the other Loan Documents and furnished at any time and from time to
time by Borrower or Guarantor (“Furnished Information”), which is provided to Lender by or on behalf of Borrower
or Guarantor, shall be kept confidential. Any Furnished Information may also be disclosed to any Rating Agency, underwriter or
nationally recognized statistical rating organization (“NRSRO”); provided (i) each Rating Agency or underwriter
to which such information is disclosed has executed its usual and customary confidentiality agreement and (ii) any NRSRO desiring
access to any secured website containing such information shall, as a condition to its access to, have either furnished to the
Securities and Exchange Commission the certification required under Rule 17g-5(e) of the Exchange Act or be required to agree to
(or “click through”) such website’s confidentiality provisions. Nothing herein shall preclude Lender from disclosing
any Furnished Information (A) as required by any applicable Legal Requirement, (B) which is already publicly available as a result
of disclosure by any other party, (C) in response to any order of any court or other Governmental Authority, or (D) if Lender is
required to do so in connection with any litigation or similar proceeding; provided that in the case of clause (A), (C) or (D),
Lender shall exercise reasonable efforts to give prior written notice of such requirement to Borrower or Guarantor, as applicable,
(to the extent it is lawful to do so) in order to permit Borrower or Guarantor, as applicable, to, and shall reasonably cooperate,
provided such cooperation shall be at no cost or expense to Lender, with Borrower or Guarantor, as applicable, in its efforts to,
seek a protective order). This Section 10.26 shall survive the repayment of the Loan and the termination of this Agreement.


 


ARTICLE XI – LOCAL LAW PROVISIONS


 


Section 11.1         Inconsistencies.
In the event of any inconsistencies between the terms and conditions of this Article XI and the other provisions of
this Agreement, the terms and conditions of this Article XI shall control and be binding.


 


Section 11.2 Arizona
Law Provisions. The following provisions shall apply to this Agreement to the extent that Arizona law is deemed to govern
this Agreement:


 


In the event and only in the
event that the applicable law as to the enforcement of this Agreement for usury purposes is held to be the law of the State of
Arizona, all loan origination, standby, commitment and other fees, including attorneys’ fees and any commissions or fees
paid or to be paid to brokers, prepayment premiums, additional interest, charges, points, goods, things in action or any other
sums or things of value, including any compensating balance requirements or other contractual obligations (collectively referred
to as the “Additional Sums”) paid or payable by Borrower, whether pursuant to the Note, any other Loan Documents
or otherwise with respect to the Debt, that under the laws of the State of Arizona may be deemed to be interest with respect to
the Debt shall, for the purpose of any laws of the State of Arizona that may limit the maximum amount of interest to be charged
with respect to the Debt, be payable by Borrower as, and shall be deemed to be, additional interest for such purposes only, and
Borrower agrees that the contracted for rate of interest shall be the sum of the interest rate set forth in the Loan Terms Table
of the Note or the Default Rate (as defined in the Note), as applicable, plus the interest rate resulting from the Additional Sums
being considered as interest.


 




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Section 11.3         
California Law Provisions. The following provisions shall apply to this Agreement to the extent that California law
is deemed to govern this Agreement:


 


(a) The term
“Environmental Laws” shall include Sections 25117, 25281, 25316 or 25501 of the California Health & Safety
Code”.


 


(b) Trial
by Jury. TO THE EXTENT PERMITTED BY APPLICABLE LAW, BORROWER 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 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.


 





/s/ MA







Borrower’s
Initials


 


Section 11.4          Colorado
Law Provisions. The following provisions shall be deemed to apply to the extent that Colorado law is deemed to govern this
Agreement:


 


The term “Environmental
Law” shall include C.R.S. § 8-20.5-101, et seq., the Noise Control Act (42 U.S.C. § 4901, et seq.), the Uranium
Mill Tailings Radiation Control Act (42 U.S.C. § 7901, et. seq.), the Colorado Hazardous Substance Act, the Colorado Hazardous
Waste Siting Act, the Colorado Water Quality Control Act, and the Colorado Air Quality Control Act.


 


Section 11.5         
Illinois Law Provisions. The following provisions shall apply to this Agreement to the extent that Illinois law is deemed
to govern this Agreement:


 


(a) The term
“Environmental Law” shall include the Illinois Environmental Protection Act, 415 ILCS 5/1 et. seq.


 


(b) Illinois
Collateral Protection Act Notice Borrower is hereby notified pursuant to 815 ILCS 180/1 et. seq. as follows:


 


Unless Borrower provides Lender
with evidence of the insurance coverage required by this Agreement, Lender may purchase insurance at Borrower’s expense to
protect Lender’s interest in the Property. This insurance may, but need not, protect Borrower’s interest. The coverage
that Lender purchases may not pay any claim that Borrower makes or any claim that is made against Borrower in connection with the
Property. Borrower may later cancel any insurance purchased
by Lender, but only after providing Lender with evidence that Borrower has obtained insurance as required by this Agreement. If
Lender purchases insurance for the Property, Borrower will be responsible for the cost of that insurance, including interest and
any other charges Lender may impose in connection with the placement of the insurance, until the effective date of the cancellation
or expiration of the insurance. The cost of the insurance may be added to Borrower’s total outstanding balance or obligation.
The cost of insurance may be more than the cost of insurance Borrower may be able to obtain on its own.


 




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Section 11.6         Indiana
Law Provisions. The following provisions shall apply to this Agreement to the extent that Indiana law is deemed to govern
this Agreement:


 


If, pursuant to this Agreement
or any of the other Loan Documents, Borrower is liable to any Person for payment of or reimbursement for attorneys fees, such fees
shall be deemed to include support staff costs, amounts expended in litigation preparation, computerized research costs, telephone
and facsimile expenses, mileage costs, deposition related expenses, postage costs, photocopy costs, process service fees and costs
of videotapes.


 


Section 11.7         
Pennsylvania Law Provisions. The following provisions shall apply to this Agreement the extent that Pennsylvania law
is deemed to govern this Agreement:


 


POWERS OF ATTORNEY.
BORROWER ACKNOWLEDGES AND AGREES (A) THAT ANY POWERS OF ATTORNEY GRANTED HEREIN, AND ANY WARRANT OF ATTORNEY AUTHORIZING JUDGMENT
BY CONFESSION, ARE GIVEN IN CONNECTION WITH A COMMERCIAL TRANSACTION, (B) LENDER’S EXERCISE OF ANY POWERS OF ATTORNEY AS
PROVIDED FOR HEREIN WOULD BE IN ACCORDANCE WITH BORROWER’S REASONABLE EXPECTATIONS, AND (C) LENDER DOES NOT AND SHALL NOT
HAVE ANY OF THE DUTIES TO BORROWER SET FORTH IN 20 PA. C.S.A. §5601.3.


 


Section 11.8         
Tennessee Law Provisions. The following provisions shall apply to this Agreement to the extent that Tennessee law is
deemed to govern this Agreement:


 


At no time is Borrower required
to pay interest on the Loan or on any other payment due hereunder or under any of the other Loan Documents (or to make any other
payment deemed by law or by a court of competent jurisdiction to be interest) at a rate which would subject Lender either to civil
or criminal liability as a result of being in excess of the maximum interest rate which Borrower is permitted by applicable law
to pay. If interest (or such other amount deemed to be interest) paid or payable by Borrower is deemed to exceed such maximum rate,
then the amount to be paid immediately shall be reduced to such maximum rate and thereafter computed at such maximum rate. All
previous payments in excess of such maximum rate shall be deemed to have been payments of principal (in inverse order of maturity)
and not on account of interest due hereunder. For purposes of determining whether any applicable usury law has been violated, all
payments deemed by law or a court of competent jurisdiction to be interest shall, to the extent permitted by applicable law, be
deemed to be amortized, prorated, allocated and spread over the full term of the Loan in such manner so that interest is computed
at a rate throughout the full term of the Loan which does not exceed the maximum lawful rate of interest.


 




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Section 11.9 Texas
Law Provisions. The following provisions shall apply to this Agreement to the extent that Texas law is deemed to govern
this Agreement:


 


(a) The term
“Environmental Law” shall include the Texas Water Code §26.001 et seq.; the Texas Health & Safety Code
§361.001 et seq.; and the Texas Solid Waste Disposal Act, Tex. Civ. Stat. Ann. art. 4477-7.


 


(b) It is
the express intention of Borrower and Borrower hereby agrees that any indemnity will apply to and fully protect each indemnified
party even though any claims, demands, liabilities, losses, damages, causes of action, judgments, penalties, costs and expenses
(including reasonable attorneys’ fees) then the subject of indemnification may have been caused by, arise out of, or are
otherwise attributable to, directly or indirectly, the negligence (excluding gross negligence) in whole or in part of such indemnified
party and/or any other party.


 


(c) Each
use of the term “notice” in Section 8.1(b) shall be deemed to include notice of acceleration and notice of intent to
accelerate.


 


(d) Section
10.11(a) shall be deemed to cover notice of acceleration and notice of intent to accelerate.


 


(e) THIS
AGREEMENT AND THE OTHER DOCUMENTS EVIDENCING, SECURING OR PERTAINING TO ALL OR ANY PORTION OF THE DEBT REPRESENT THE FINAL AGREEMENT
BETWEEN BORROWER AND LENDER AS TO THE SUBJECT MATTER THEREOF AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS
OR SUBSEQUENT ORAL AGREEMENTS OF SUCH PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN SUCH PARTIES.


 


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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.


 


	 	BORROWER:
	 	 
	 	ARHC HDLANCA01, LLC,
	 	ARHC NHCANGA01, LLC,
	 	ARHC FMMUNIN03, LLC,
	 	ARHC BMLKWCO01, LLC,
	 	ARHC ECMCYNC01, LLC,
	 	ARHC ECCPTNC01, LLC,
	 	ARHC LPELKCA01, LLC,
	 	ARHC MMTCTTX01, LLC,
	 	ARHC MRMRWGA01, LLC,
	 	ARHC OLOLNIL01, LLC,
	 	ARHC PPHRNTN01, LLC,
	 	ARHC SMERIPA01, LLC,
	 	ARHC AMGLNAZ02, LLC,
	 	ARHC PHNLXIL01, LLC,
	 	ARHC AMGLNAZ01, LLC,
	 	ARHC SFSTOGA01, LLC,
	 	ARHC VCSTOGA01, LLC,
	 	ARHC WLWBYMN01, LLC,
	 	ARHC AHPLYWI01, LLC and
	 	ARHC PRPEOAZ03, LLC,
	 	each a Delaware limited liability company


 


	 	By:	/s/ Michael Anderson	 
	 	Name:	Michael Anderson	 
	 	 	Authorized Signatory for each such Limited Liability Company	 


 


Signature
Page to Loan Agreement


 




     


     


    

 


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:
	 	 
	 	KEYBANK NATIONAL ASSOCIATION,
	 	
        a national banking association

	 	 
	 	By:	/s/ Mary Ann Gripka
	 	 	Name:	Mary Ann Gripka
	 	 	Title:	Vice President


 


Signature
Page to Loan Agreement


 




     


     


    

 


SCHEDULE I


 


(RENT ROLL)


 


 




     


     


    

 


SCHEDULE II


 


(REQUIRED REPAIRS - DEADLINES FOR COMPLETION)


 


 




     


     


    

 


SCHEDULE III


 


(ORGANIZATIONAL CHART OF BORROWERS)


 





 




     


     


    




 


SCHEDULE IV


 


ALLOCATED LOAN AMOUNTS





 




     


     


    

 


SCHEDULE V


 


PROPERTY MANAGERS AND UNDERWRITTEN MANAGEMENT
FEES


 


 




     


     


    

 


SCHEDULE VI


 


FORM OF TENANT DIRECTION LETTER


 


[BORROWER LETTERHEAD]


 


__________, 20__


 


[Tenants under Leases]


 


		Re:	Lease dated ________ between _______________, as Landlord, and __________________, as Tenant, concerning
premises known as _____________



 


Gentlemen:


 


This letter shall constitute
notice to you that the undersigned has granted a lien and security interest in the captioned lease and all rents, additional rent
and all other monetary obligations to landlord thereunder (collectively, “Rent”) in favor of KeyBank National Association,
its successors and assigns, as lender (“Lender”), to secure certain of the undersigned’s obligations to Lender.
The undersigned hereby irrevocably instructs and authorizes you to disregard any and all previous notices sent to you in connection
with Rent and hereafter to deliver all Rent to the following address:


 


[Clearing Bank]


 


____________________


____________________


Account Name:“_________________________________”
Clearing Account FBO KeyBank National Association, successors and assigns


Account No.: __________________


Attention: _________________


ABA# _____________


 


The instructions set
forth herein are irrevocable and are not subject to modification in any manner, except that Lender, or any successor lender so
identified by Lender, may by written notice to you rescind the instructions contained herein.


 


Sincerely,


 


[Borrower]


 




     


     


    




 


SCHEDULE VII


 


FORM OF DISBURSEMENT CERTIFICATION AND
SCHEDULE


 


			Loan No. _______________



 


Disbursement Certification and Schedule


 


____________________ (“Borrower”)
does hereby certify and affirm the following to _________________________ (“Lender”) to induce Lender to disburse
(the “Disbursement”) the aggregate sum of $______________________ from the [CHOOSE AS APPLICABLE: Replacement
Reserve Account, Rollover Reserve Account] pursuant to the terms of the Loan Agreement (“Loan Agreement”) entered
into between ____________________________ (“Borrower”) and KeyBank National Association (predecessor to Lender)
dated ____________________. Any capitalized terms used herein and not otherwise defined herein shall have the meaning set forth
in the Loan Agreement.


 


1.          The
undersigned is the ______________ of Borrower, has actual knowledge as to the matters herein set forth and makes this Certification
pursuant to Section _____ of the Loan Agreement.


 


2.          To
Borrower’s knowledge, no Event of Default exists under any of the Loan Documents.


 


3.          All
of the statements, information, costs and amounts set forth herein or on Exhibit A attached hereto are true and correct
in every material respect as of the date hereof. All of the Disbursement funds shall be used solely for the purposes of paying
the costs of the [CHOOSE AS APPLICABLE: Replacements, TILC Obligations] specified herein, or for reimbursing Borrower for such
costs previously paid by Borrower.


 


4.          All
[CHOOSE AS APPLICABLE: Replacements, TILC Obligations] to be funded by the requested Disbursement have been completed in a good
and workmanlike manner and in accordance with all applicable Legal Requirements, have not been the subject of a previous Disbursement,
and that all outstanding payables with respect thereto (other than those to be paid from the requested Disbursement) have been
paid in full.


 


5.          Attached
hereto as Exhibit A is a schedule of each contractor, subcontractor, materialman and/or person (each, a “Payee”)
to be paid (or for which Borrower is to be reimbursed for amounts previously paid by it to such Payee) from the proceeds of the
Disbursement, the aggregate amount then payable to each such Payee, a description of the goods, work or services provided by each
such Payee and related invoice numbers to be paid from the Disbursement.


 


6.          Each
Payee has been paid, or will be paid with the proceeds of the Disbursement, the amounts then due and payable to such Payee in connection
with the goods, work or services specified on Exhibit A provided by each such Payee, and Borrower has obtained lien waivers
from each such Payee with respect to such specified goods, work or services.


 


7.          Each
previous disbursement of [CHOOSE AS APPLICABLE: Replacement Reserve Funds, Rollover Reserve Funds] was used to pay the costs of
the [CHOOSE AS APPLICABLE: Replacements, TILC Obligations] identified in the Disbursement Certification and Schedule provided in
connection with such previous disbursement.


 





Date: ________________________


 


[TO BE EXECUTED BY AN AUTHORIZED OFFICER,
GENERAL PARTNER, MANAGING MEMBER OR SOLE MEMBER OF BORROWER, AS APPLICABLE]


 




     


     


    

 


Exhibit A to Disbursement Certification
and Schedule


 


[Attach a schedule of each applicable contractor, subcontractor,
materialman and/or person and with respect to each such contractor, subcontractor, materialman and/or person, the aggregate amount
then payable to each, a description of the goods, work or services provided by each (for goods, provide the quantity and price
of each item, the costs of all materials used and all labor or other services payable in connection with such goods) and related
invoice numbers to be paid from the Disbursement]