Form of Leasehold Mortgage



 Exhibit 10.123 
  

 NATIONAL INDUSTRIAL PORTFOLIO BORROWER, LLC, as mortgagor 
                                        
                                        
         (Borrower) 
 to 
 CITIGROUP GLOBAL MARKETS REALTY CORP., as mortgagee 
                                        
                                        
                 (Lender) 
  

 LEASEHOLD MORTGAGE, ASSIGNMENT OF LEASES 
 AND RENTS AND SECURITY AGREEMENT 

  

							
		 	Dated:	  	As of [                    ], 2007
			
		 	Location:	  	 [625 University Avenue,]
 [Norwood,
Massachusetts 02062]

				
		 	County:	  	[                ]	  	
		
		 	 PREPARED BY AND UPON
 RECORDATION RETURN TO:


		
		 	 Messrs. Thacher Proffitt & Wood
 Two
World Financial Center
 New York, New York 10281

			
		 	Attention:	  	Donald F. Simone, Esq.
				
		 	File No.:	  	20655-00028	  	
			
		 	Title No.:	  	[                            ]

  








 THIS LEASEHOLD MORTGAGE, ASSIGNMENT OF LEASES AND RENTS AND SECURITY AGREEMENT (this “Security
Instrument”) is made as of the [        ] day of [                ], 2007 by NATIONAL INDUSTRIAL PORTFOLIO
BORROWER, LLC, a Delaware limited liability company, having its principal place of business at c/o Hackman Capital Partners, LLC, 11111 Santa Monica Boulevard, Suite 950, Los Angeles, California 90025, as mortgagor (“Borrower”) to
CITIGROUP GLOBAL MARKETS REALTY CORP., a New York corporation, having an address at 388 Greenwich Street, 11th Floor, New York, New York 10013, as mortgagee (“Lender”). All capitalized terms not defined herein shall have the
respective meanings set forth in the Loan Agreement (defined below). 
 RECITALS: 
 This Security Instrument is given to secure a portion of a loan (the “Loan”) in the principal sum of
[                                        
     AND 00/100 DOLLARS ($                            )] made pursuant to that
certain Loan Agreement, dated as of the date hereof, between Borrower and Lender (as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time, the “Loan Agreement”) and evidenced by that certain
Promissory Note, dated the date hereof, made by Borrower in favor of Lender (such Promissory Note, together with all extensions, renewals, replacements, restatements, amendments, supplements, severances or modifications thereof being hereinafter
referred to as the “Note”). 
 Borrower desires to secure the payment of the Debt (as defined in the Loan Agreement) and the
performance of all of its obligations under the Note, the Loan Agreement and the other Loan Documents (as herein defined). 
 This Security
Instrument is given pursuant to the Loan Agreement, and payment, fulfillment, and performance by Borrower of its obligations thereunder and under the other Loan Documents are secured hereby, and each and every term and provision of the Loan
Agreement, the Note, and that certain Assignment of Leases and Rents dated the date hereof made by Borrower in favor of Lender delivered in connection with this Security Instrument (as the same may be amended, restated, replaced, supplemented or
otherwise modified from time to time, the “Assignment of Leases”), including the rights, remedies, obligations, covenants, conditions, agreements, indemnities, representations and warranties of the parties therein, are hereby incorporated
by reference herein as though set forth in full and shall be considered a part of this Security Instrument (the Loan Agreement, the Note, this Security Instrument, the Assignment of Leases and all other documents evidencing or securing the Debt
(including all additional mortgages, deeds to secure debt and assignments of leases and rents) or executed or delivered in connection therewith, are hereinafter referred to collectively as the “Loan Documents”). All capitalized terms not
otherwise defined herein shall have the meaning ascribed to them in the Loan Agreement. 
 ARTICLE 1 - GRANTS OF SECURITY 

Section 1.1 PROPERTY MORTGAGED. Borrower does hereby irrevocably mortgage, grant, bargain,
sell, pledge, assign, warrant, transfer and convey to and grant a security interest to Lender and its successors and assigns in, the following property, rights, interests and estates now owned, or hereafter acquired by Borrower (collectively, the
“Property”): 







 (a) Ground Lease. That certain Net Lease dated March 26, 1998, between University Manager,
Inc., as Administrative Trustee for W/S Cardinal University MA-Trust, as lessor (together with any future owner(s) of the lessor’s interest in the Ground Lease, “Fee Owner”) and Star Markets Co., Inc. (“Star”), as
lessee, recorded on March 22, 2000 in Norfolk County Registry of Deeds as Instrument Number 26672 and with Norfolk County Registry District of the Land Court as Document Number 852559, evidenced by a Notice of Lease, dated March 1998 and
recorded on March 22, 2000 in Norfolk County Registry of Deeds in Book 14062, Page 385 and with Norfolk County Registry District of the Land Court as Document Number 852564 on Certificate of Title Number 156897, as assigned by that certain
Assignment and Assumption Agreement dated April 11, 2000, between Star and Equity Industrial Norwood Limited Partnership (“EINLP”) and recorded in Norfolk County Registry of Deeds in Book 14100, Page 177 and with Norfolk County
Registry District of the Land Court as Document Number 854024, as amended by that certain Corrective Amendment to Assignment and Assumption Agreement dated April 26, 2002 and recorded in Norfolk County Registry of Deeds in Book 16752, Page 152,
as further assigned by that certain Assignment and Assumption of Lease Agreement dated May 27, 2004, between EINLP and Equity Industrial Norwood, LLC (“EINLLC”) and recorded in Norfolk County Registry of Deeds in Book 21133,
Page 117 and with Norfolk County Registry District of the Land Court as Document Number 1028594, as further assigned by that certain Assignment and Assumption of Ground Lease Agreement dated as of the date hereof, between EINLLC to Borrower
(collectively, as same may be further amended, restated, replaced, supplemented, assigned or otherwise modified from time to time, the “Ground Lease”), and the leasehold estate created thereby (the “Leasehold Estate”) in the real
property described therein and set forth in Exhibit A attached hereto (the “Land”), including all assignments, modifications, extensions and renewals of the Ground Lease and all credits, deposits, options, proceeds, privileges and
rights of Borrower as tenant under the Ground Lease, including, but not limited to, the right, if any, to renew or extend the Ground Lease for a succeeding term or terms, and also including all the right, title, claim or demand whatsoever of
Borrower either in law or in equity, in possession or expectancy, of, in and to Borrower’s right, as tenant under the Ground Lease, to elect under Section 365(h)(1) of Title 11 U.S.C.A. § 101 et seq. and the regulations adopted
and promulgated thereto (as the same may be amended from time to time, the “Bankruptcy Code”) to terminate or treat the Ground Lease as terminated or to consent to the transfer of the Fee Owner’s interest in the Land and the
Improvements free and clear of the Ground Lease under Section 363 of the Bankruptcy Code in the event (i) of the bankruptcy, reorganization or insolvency of the Fee Owner, and (ii) (A) the rejection of the Ground Lease by such
Fee Owner, as debtor in possession, or by a trustee for such Fee Owner, pursuant to Section 365 of the Bankruptcy Code or (B) any attempt by such Fee Owner, as debtor in possession, or by a trustee for such Fee Owner, to transfer such Fee
Owner’s interest in the Land and the Improvements under Section 363 of the Bankruptcy Code; 
 (b) Additional Land. All
additional lands, estates and development rights hereafter acquired by Borrower for use in connection with the Land and the development of the Land and all additional lands and estates therein which may, from time to time, by supplemental mortgage
or otherwise be expressly made subject to the lien of this Security Instrument; 
 (c) Improvements. The buildings, structures,
fixtures, additions, enlargements, extensions, modifications, repairs, replacements and improvements now or hereafter erected or located on the Land (the “Improvements”); 
  

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 (d) Easements. All easements, rights-of-way or use, rights, strips and gores of land, streets,
ways, alleys, passages, sewer rights, water, water courses, water rights and powers, air rights and development rights, and all estates, rights, titles, interests, privileges, liberties, servitudes, tenements, hereditaments and appurtenances of any
nature whatsoever, in any way now or hereafter belonging, relating or pertaining to the Land and/or the Improvements, including, but not limited to, those arising under and by virtue of the Ground Lease, and the reversion and reversions, remainder
and remainders, and all land lying in the bed of any street, road or avenue, opened or proposed, in front of or adjoining the Land, to the center line thereof and all the estates, rights, titles, interests, dower and rights of dower, curtesy and
rights of curtesy, property, possession, claim and demand whatsoever, both at law and in equity, of Borrower of, in and to the Land and/or the Improvements, including, but not limited to, those arising under and by virtue of the Ground Lease, and
every part and parcel thereof, with the appurtenances thereto; 
 (e) Fixtures and Personal Property. All machinery, equipment,
fixtures (including, but not limited to, all heating, air conditioning, plumbing, lighting, communications and elevator fixtures, inventory and goods) and other property of every kind and nature whatsoever owned by Borrower, or in which Borrower has
or shall have an interest, now or hereafter located upon the Land and the Improvements, or appurtenant thereto, and usable in connection with the present or future operation and occupancy of the Land and the Improvements and all building equipment,
materials and supplies of any nature whatsoever owned by Borrower, or in which Borrower has or shall have an interest, now or hereafter located upon the Land and the Improvements, or appurtenant thereto, or usable in connection with the present or
future operation and occupancy of the Land and the Improvements (collectively, the “Personal Property”), and the right, title and interest of Borrower in and to any of the Personal Property which may be subject to any security interests,
as defined in the Uniform Commercial Code, as adopted and enacted by the State or States where any of the Property is located (the “Uniform Commercial Code”), superior in lien to the lien of this Security Instrument and all proceeds and
products of the above; 
 (f) Leases and Rents. All leases, subleases and other agreements, whether or not in writing, including,
without limitation, the Ground Lease, affecting the use, enjoyment or occupancy of the Land and/or the Improvements heretofore or hereafter entered into and all extensions, amendments and modifications thereto, whether before or after the filing by
or against Borrower of any petition for relief under Title 11 U.S.C.A. § 101 et seq. and the regulations adopted and promulgated thereto (as the same may be amended from time to time, the “Bankruptcy Code”) (the
“Leases”) and all right, title and interest of Borrower, its successors and assigns therein and thereunder, including, without limitation, any guaranties of the lessees’ obligations thereunder, cash or securities deposited thereunder
to secure the performance by the lessees of their obligations thereunder and all rents, additional rents, payments in connection with any termination, cancellation or surrender of any Lease, revenues, issues and profits (including all oil and gas or
other mineral royalties and bonuses) from the Land and/or the Improvements whether paid or accruing before or after the filing by or against Borrower of any petition for relief under the Bankruptcy Code and all proceeds from the sale or other
disposition of the Leases (the “Rents”) and the right to receive and apply the Rents to the payment of the Debt; 
  

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 (g) Condemnation Awards. All awards or payments, including interest thereon, which may heretofore
and hereafter be made with respect to the Property, whether from the exercise of the right of eminent domain (including but not limited to any transfer made in lieu of or in anticipation of the exercise of the right), or for a change of grade, or
for any other injury to or decrease in the value of the Property; 
 (h) Insurance Proceeds. All proceeds of and any unearned premiums
on any insurance policies covering the Property, including, without limitation, the right to receive and apply the proceeds of any insurance, judgments, or settlements made in lieu thereof, for damage to the Property; 
 (i) Tax Certiorari. All refunds, rebates or credits in connection with a reduction in real estate taxes and assessments charged against the
Property as a result of tax certiorari or any applications or proceedings for reduction; 
 (j) Conversion. All proceeds of the
conversion, voluntary or involuntary, of any of the foregoing including, without limitation, proceeds of insurance and condemnation awards, into cash or liquidation claims; 
 (k) Rights. The right, in the name and on behalf of Borrower, to appear in and defend any action or proceeding brought with respect to the
Property and to commence any action or proceeding to protect the interest of Lender in the Property; 
 (l) Agreements. To the extent
permitted by law, all agreements, contracts, certificates, instruments, franchises, permits, licenses, plans, specifications and other documents, now or hereafter entered into, and all rights therein and thereto, respecting or pertaining to the use,
occupation, construction, management or operation of the Land and any part thereof and any Improvements or respecting any business or activity conducted on the Land and any part thereof and all right, title and interest of Borrower therein and
thereunder, including, without limitation, the right, upon the happening of any default hereunder, to receive and collect any sums payable to Borrower thereunder; 
 (m) Intangibles. To the extent permitted by law, all trade names, trademarks, servicemarks, logos, copyrights, goodwill, books and records and all other general intangibles relating to or used in connection
with the operation of the Property; 
 (n) Accounts. All Accounts, Account Collateral, reserves, escrows and deposit accounts
maintained by Borrower with respect to the Property including, without limitation, the Lockbox Account and the Property Account, and all complete securities, investments, property and financial assets held therein from time to time and all proceeds,
products, distributions or dividends or substitutions thereon and thereof; 
 (o) Causes of Action. All causes of action and claims
(including, without limitation, all causes of action or claims arising in tort, by contract, by fraud or by concealment of material fact) against any Person for damages or injury to the Property or in connection with any transactions financed in
whole or in part by the proceeds of the Loan (“Cause of Action”); 
  

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 (p) Interest Rate Cap Agreement. All right, title, interest and claim of Borrower in, to, under or
pursuant to any Interest Rate Cap Confirmation (the “Confirmation”) together with any Interest Rate Cap Agreement (the “Rate Agreement”) delivered pursuant to the Loan Agreement, and in, to, under or pursuant to any and all
amendments, supplements and additions thereto (the Confirmation and the Rate Agreement, together with any amendments, additions or supplements thereto being hereinafter collectively referred to as the “Cap Agreement”), all claims of
Borrower for breach by any counterparty to the Cap Agreement of any covenant, agreement, representation or warranty contained in the Cap Agreement; and 
 (q) Other Rights. Any and all other rights of Borrower in and to the items set forth in Subsections (a) through (p) above. 
 Section 1.2 ASSIGNMENT OF LEASES AND RENTS.
Borrower hereby absolutely and unconditionally assigns to Lender Borrower’s right, title and interest in and to all current and future Leases and Rents; it being intended by Borrower that this assignment constitutes a present, absolute
assignment and not an assignment for additional security only. Nevertheless, subject to the terms of this Section 1.2, the provisions of the Assignment of Leases and the provisions of and the Loan Agreement, Lender grants to Borrower a
revocable license to collect and receive the Rents. Borrower shall hold the Rents, or a portion thereof sufficient to discharge all current sums due on the Debt, for use in the payment of such sums. 
 Section 1.3 SECURITY AGREEMENT. This Security Instrument is both a real property mortgage and a
“security agreement” within the meaning of the Uniform Commercial Code. The Property includes both real and personal property and all other rights and interests, whether tangible or intangible in nature, of Borrower in the Property. By
executing and delivering this Security Instrument, Borrower hereby grants to Lender, as security for the Obligations, (as herein defined) a security interest in the Personal Property, the Accounts, and the Account Collateral to the full extent that
the Personal Property, the Accounts and the Account Collateral may be subject to the Uniform Commercial Code. 
 Section 1.4
PLEDGE OF MONIES HELD. Borrower hereby pledges to Lender any and all monies now or hereafter held by Lender, including, without limitation, any sums deposited in the
Reserve Funds, the Accounts, Net Proceeds and Awards, as additional security for the Obligations until expended or applied as provided in the Loan Agreement or this Security Instrument. 
 Section 1.5 CONDITIONS TO GRANT. TO HAVE AND TO HOLD the above granted and
described Property unto and to the use and benefit of Lender and its successors and assigns, forever. PROVIDED, HOWEVER, these presents are upon the express condition that, if Borrower shall well and truly pay to Lender the Debt at the time and in
the manner provided in the Note and this Security Instrument, shall well and truly perform the Other Obligations (as herein defined) as set forth in this Security Instrument and shall well and truly abide by and comply with each and every covenant
and condition set forth herein, in the Note and in the Loan Agreement, these presents and the estate hereby granted shall cease, terminate and be void. 
  

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 ARTICLE 2 - DEBT AND OBLIGATIONS SECURED 
 Section 2.1 DEBT. This Security Instrument and the grants, assignments and transfers made in Article 1 are
given for the purpose of securing the Debt, including without limitation, 
 (a) the payment of the indebtedness evidenced by the Note in
lawful money of the United States of America; 
 (b) the payment of interest, default interest, late charges and other sums, as provided in
the Note, the Loan Agreement, this Security Instrument or the other Loan Documents; 
 (c) the payment of the Breakage Costs and Yield
Maintenance Premium, if any; 
 (d) the payment of all other moneys agreed or provided to be paid by Borrower in the Note, the Loan
Agreement, this Security Instrument or the other Loan Documents; 
 (e) the payment of all sums advanced pursuant to the Loan Agreement or
this Security Instrument to protect and preserve the Property and the lien and the security interest created hereby; and 
 (f) the payment
of all sums advanced and costs and expenses incurred by Lender in connection with the Debt or any part thereof, any modification, amendment, renewal, extension, or change of or substitution for the Debt or any part thereof, or the acquisition or
perfection of the security therefor, whether made or incurred at the request of Borrower or Lender. 
 Section 2.2
OTHER OBLIGATIONS. This Security Instrument and the grants, assignments and transfers made in Article 1 are also given for the purpose of securing the following (the “Other Obligations”):

 (a) the performance of all other obligations of Borrower contained herein; 
 (b) the performance of each obligation of Borrower contained in any other agreement given by Borrower to Lender which is for the purpose of further
securing the obligations secured hereby, and any renewals, extensions, substitutions, replacements, amendments, modifications and changes thereto; and 
 (c) the performance of each obligation of Borrower contained in any renewal, extension, amendment, modification, consolidation, change of, or substitution or replacement for, all or any part of the Note, the Loan
Agreement, this Security Instrument or the other Loan Documents. 
 Section 2.3 DEBT AND
OTHER OBLIGATIONS. Borrower’s obligations for the payment of the Debt and the performance of the Other Obligations shall be referred to collectively below as the “Obligations.”

 ARTICLE 3 - BORROWER COVENANTS 
 Borrower covenants and agrees that: 
  

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 Section 3.1 PAYMENT OF DEBT.
Borrower will pay the Debt at the time and in the manner provided in the Note, the Loan Agreement and in this Security Instrument. 
 Section 3.2 INCORPORATION BY REFERENCE. All the covenants, conditions and agreements contained in the Loan Agreement, the Note and all and any of the other Loan
Documents, are hereby made a part of this Security Instrument to the same extent and with the same force as if fully set forth herein. 
 Section 3.3 INSURANCE. Borrower shall obtain and maintain, or cause to be maintained, insurance in full force and effect at all times with respect to Borrower and the Property as required pursuant
to the Loan Agreement. 
 Section 3.4 PAYMENT OF TAXES,
ETC. Borrower shall promptly pay all Taxes and Other Charges in accordance with the terms of the Loan Agreement. 
 Section 3.5 MAINTENANCE AND USE OF PROPERTY. Borrower shall cause the Property to be maintained in a good and safe condition and repair in
accordance with the terms of the Loan Agreement. Subject to the terms of the Loan Agreement, the Improvements and the Personal Property shall not be removed, demolished or materially altered or expanded (except for normal replacement of the Personal
Property) without the consent of Lender, which consent shall not be unreasonably withheld, conditioned or delayed except as provided in Section 5.1.20 of the Loan Agreement. Subject to the terms of the Loan Agreement, Borrower shall promptly
repair, replace or rebuild any part of the Property which may be destroyed by any Casualty, or become damaged, worn or dilapidated or which may be affected by any Condemnation and shall complete and pay for any structure at any time in the process
of construction or repair on the Land. Subject to the terms of the Loan Agreement, Borrower shall not initiate, join in, acquiesce in, or consent to any change in any private restrictive covenant, zoning law or other public or private restriction,
limiting or defining the uses which may be made of the Property or any part thereof. If under applicable zoning provisions the use of all or any portion of the Property is or shall become a nonconforming use, Borrower will not cause or permit the
nonconforming use to be discontinued or the nonconforming Improvement to be abandoned without the express written consent of Lender. 
 Section 3.6 WASTE. Borrower shall not commit or suffer any waste of the Property or make any change in the use of the Property which will in any way materially increase the risk of fire or other
hazard arising out of the operation of the Property, or take any action that might invalidate or give cause for cancellation of any Policy, or do or permit to be done thereon anything that may in any way impair the value of the Property or the
security of this Security Instrument. Borrower will not, without the prior written consent of Lender, permit any drilling or exploration for or extraction, removal, or production of any minerals from the surface or the subsurface of the Land,
regardless of the depth thereof or the method of mining or extraction thereof. 
 Section 3.7 PAYMENT
FOR LABOR AND MATERIALS. Borrower will promptly pay when due all bills and costs for labor, materials, and specifically fabricated materials incurred in connection with
the Property and never permit to exist in respect of the Property or any part thereof any lien or security interest, even though inferior to the liens and the security interests 

  

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hereof, and in any event never permit to be created or exist in respect of the Property or any part thereof any other or additional lien or security interest
other than the liens or security interests hereof, except for the Permitted Encumbrances. 
 Section 3.8 PERFORMANCE
OF OTHER AGREEMENTS. Borrower shall observe and perform each and every term to be observed or performed by Borrower pursuant to the terms of the Loan Agreement, any other Loan Documents
and any agreement or recorded instrument affecting or pertaining to the Property, or given by Borrower to Lender for the purpose of further securing the Obligations and any amendments, modifications or changes thereto. 
 Section 3.9 CHANGE OF NAME, IDENTITY OR
STRUCTURE. Except as may be permitted under the Loan Agreement, Borrower will not change Borrower’s name, identity (including its trade name or names) or corporate, partnership or other structure without first
obtaining the prior written consent of Lender. Borrower hereby authorizes Lender, prior to or contemporaneously with the effective date of any such change, to file any financing statement or financing statement change reasonably required by Lender
to establish or maintain the validity, perfection and priority of the security interest granted herein. At the request of Lender, Borrower shall execute a certificate in form reasonably satisfactory to Lender listing the trade names under which
Borrower intends to operate the Property, and representing and warranting that Borrower does business under no other trade name with respect to the Property. 
 Section 3.10 PROPERTY USE. The Property shall be used only for any industrial purposes and any ancillary uses relating thereto, and for no other uses without
the prior written consent of Lender, which consent shall not be unreasonably withheld, conditioned or delayed. 
 ARTICLE 4 -
REPRESENTATIONS AND WARRANTIES 
 Borrower represents and warrants to Lender that: 
 Section 4.1 WARRANTY OF TITLE. Borrower has good leasehold title to the real
property comprising part of the to the Property and has the right to mortgage, grant, bargain, sell, pledge, assign, warrant, transfer and convey the same and that Borrower possesses a leasehold interest in the Land and the Improvements pursuant to
the Ground Lease and that it owns the Property free and clear of all liens, encumbrances and charges whatsoever except for the Permitted Encumbrances. The Permitted Encumbrances do not and will not materially adversely affect or interfere with the
value, or materially adversely affect or interfere with the current use or operation, of the Property, or the security intended to be provided by this Security Instrument or the ability of Borrower to repay the Note or any other amount owing under
the Note, this Security Instrument, the Loan Agreement, or the other Loan Documents or to perform its obligations thereunder in accordance with the terms of the Loan Agreement, the Note, this Security Instrument or the other Loan Documents. Borrower
further represents and warrants that (a) the Ground Lease is in full force and effect and has not been further modified or amended in any manner whatsoever, (b) there are no defaults under the Ground Lease beyond any applicable grace, cure
or notice period, (c) all rents, additional rents and other sums due and payable under the Ground Lease have been paid in full, and (d) Borrower has not commenced any action or given or received any notice for the purpose of terminating
the Ground Lease. This Security Instrument, when properly recorded in the appropriate records, together with the Assignment of 

  

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Leases and any Uniform Commercial Code financing statements required to be filed in connection therewith, will create (i) a valid, perfected first
priority lien on the Property, subject only to Permitted Encumbrances and (ii) perfected security interests in and to, and perfected collateral assignments of, all personalty (including the Leases), all in accordance with the terms thereof,
subject only to Permitted Encumbrances. The Assignment of Leases, when properly recorded in the appropriate records, creates a valid first priority assignment of, or a valid first priority security interest in, certain rights under the related
Leases, subject only to a license granted to Borrower to exercise certain rights and to perform certain obligations of the lessor under such Leases, including the right to operate the Property. No Person other than Borrower owns any interest in any
payments due under such Leases that is superior to or of equal priority with the Lender’s interest therein. Borrower shall forever warrant, defend and preserve the title and the validity and priority of the lien of this Security Instrument and
shall forever warrant and defend the same to Lender against the claims of all persons whomsoever. 
 ARTICLE 5 - OBLIGATIONS AND RELIANCES

 Section 5.1 RELATIONSHIP OF BORROWER AND
LENDER. The relationship between Borrower and Lender is solely that of debtor and creditor, and Lender has no fiduciary or other special relationship with Borrower, and no term or condition of any of the Loan
Agreement, the Note, this Security Instrument and the other Loan Documents shall be construed so as to deem the relationship between Borrower and Lender to be other than that of debtor and creditor. 
 Section 5.2 NO RELIANCE ON LENDER. The members, general partners,
principals and (if Borrower is a trust) beneficial owners of Borrower are experienced in the ownership and operation of properties similar to the Property, and Borrower and Lender are relying solely upon such expertise and business plan in
connection with the ownership and operation of the Property. Borrower is not relying on Lender’s expertise, business acumen or advice in connection with the Property. 
 Section 5.3 NO LENDER OBLIGATIONS. (a) Notwithstanding the provisions of
Section 1.1(f), (l) and (m) or Section 1.2 hereof, Lender is not undertaking the performance of (i) any obligations under the Leases; or (ii) any obligations with respect to such agreements, contracts, certificates,
instruments, franchises, permits, trademarks, licenses and other documents. 
 (b) By accepting or approving anything required to be
observed, performed or fulfilled or to be given to Lender pursuant to this Security Instrument, the Loan Agreement, the Note or the other Loan Documents, including without limitation, any officer’s certificate, balance sheet, statement of
profit and loss or other financial statement, survey, appraisal, or insurance policy, Lender shall not be deemed to have warranted, consented to, or affirmed the sufficiency, the legality or effectiveness of same, and such acceptance or approval
thereof shall not constitute any warranty or affirmation with respect thereto by Lender. 
 Section 5.4
RELIANCE. Borrower recognizes and acknowledges that in accepting the Note, the Loan Agreement, this Security Instrument and the other Loan Documents, (i) Lender is expressly and primarily relying on the
truth and accuracy of the warranties and representations set forth in Article 4 of the Loan Agreement and Articles 3 and 4 hereof without any obligation to investigate the Property and notwithstanding any investigation of the Property by Lender;
(ii)

  

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that such reliance existed on the part of Lender prior to the date hereof; (iii) that the warranties and representations are a material inducement to
Lender in accepting the Note, the Loan Agreement, this Security Instrument and the other Loan Documents; and (iv) that Lender would not be willing to make the Loan and accept this Security Instrument in the absence of the warranties and
representations as set forth in Article 4 of the Loan Agreement and Articles 3 and 4 hereof. 
 ARTICLE 6 - FURTHER ASSURANCES

 Section 6.1 RECORDING OF SECURITY INSTRUMENT,
ETC. Borrower forthwith upon the execution and delivery of this Security Instrument and thereafter, from time to time, will cause this Security Instrument and any of the other Loan Documents creating a lien or
security interest or evidencing the lien hereof upon the Property and each instrument of further assurance to be filed, registered or recorded in such manner and in such places as may be required by any present or future law in order to publish
notice of and fully to protect and perfect the lien or security interest hereof upon, and the interest of Lender in, the Property. Borrower will pay all taxes, filing, registration or recording fees, and all expenses incident to the preparation,
execution, acknowledgment and/or recording of the Note, the Loan Agreement, this Security Instrument, the other Loan Documents, and any instrument of further assurance, and any modification or amendment of the foregoing documents, and all federal,
state, county and municipal taxes, duties, imposts, assessments and charges arising out of or in connection with the execution and delivery of this Security Instrument, the other Loan Documents, or any instrument of further assurance, and any
modification or amendment of the foregoing documents, except where prohibited by law so to do. 
 Section 6.2 FURTHER
ACTS, ETC. Borrower will, at the cost of Borrower, and without expense to Lender, do, execute, acknowledge and deliver all and every such further acts, deeds, conveyances, deeds of trust, mortgages,
assignments, notices of assignments, transfers and assurances as Lender shall, from time to time, reasonably require, for the better assuring, conveying, assigning, transferring, and confirming unto Lender the Property and rights hereby deeded,
mortgaged, granted, bargained, sold, conveyed, confirmed, pledged, assigned, warranted and transferred or intended now or hereafter so to be, or which Borrower may be or may hereafter become bound to convey or assign to Lender, or for carrying out
the intention or facilitating the performance of the terms of this Security Instrument or for filing, registering or recording this Security Instrument, or for complying with all Legal Requirements. Borrower, on demand, will execute and deliver and
hereby authorizes Lender to file one or more financing statements or execute in the name of Borrower to the extent Lender may lawfully do so, one or more chattel mortgages or other instruments, to evidence more effectively the security interest of
Lender in the Property or any Collateral. Borrower grants to Lender an irrevocable power of attorney coupled with an interest for the purpose of exercising and perfecting any and all rights and remedies available to Lender at law and in equity,
including without limitation such rights and remedies available to Lender pursuant to this Section 6.2. 
 Section 6.3
CHANGES IN TAX, DEBT CREDIT AND DOCUMENTARY STAMP LAWS. 
 (a) If any law is enacted or adopted or amended after the date of this Security Instrument which deducts the Debt from the value of the Property for the
purpose of taxation or 

  

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which imposes a tax, either directly or indirectly, on the Debt or Lender’s interest in the Property, Borrower will pay the tax, with interest and
penalties thereon, if any. If Lender is advised by counsel chosen by it that the payment of tax by Borrower would be unlawful or taxable to Lender or unenforceable or provide the basis for a defense of usury, then Lender shall have the option,
exercisable by written notice of not less than ninety (90) days to declare the Debt immediately due and payable. 
 (b) Borrower will
not claim or demand or be entitled to any credit or credits on account of the Debt for any part of the Taxes or Other Charges assessed against the Property, or any part thereof, and no deduction shall otherwise be made or claimed from the assessed
value of the Property, or any part thereof, for real estate tax purposes by reason of this Security Instrument or the Debt. If such claim, credit or deduction shall be required by law, Lender shall have the option, exercisable by written notice of
not less than ninety (90) days, to declare the Debt immediately due and payable. 
 (c) If at any time the United States of America, any
State thereof or any subdivision of any such State shall require revenue or other stamps to be affixed to the Note, the Loan Agreement, this Security Instrument, or any of the other Loan Documents or impose any other tax or charge on the same,
Borrower will pay for the same, with interest and penalties thereon, if any. 
 Section 6.4 REPLACEMENT
DOCUMENTS. Upon receipt of an affidavit of an officer of Lender as to the loss, theft, destruction or mutilation of the Note or any other Loan Document which is not of public record, and, in the case of any such
mutilation, upon surrender and cancellation of such Note or other Loan Documents, Borrower will issue, at Lender’s sole cost and expense in lieu thereof, a replacement Note or other Loan Documents, dated the date of such lost, stolen, destroyed
or mutilated Note or other Loan Documents in the same principal amount thereof and otherwise of like tenor. 
 Section 6.5
PERFORMANCE AT BORROWER’S EXPENSE. Borrower acknowledges and confirms that Lender shall impose certain administrative processing and/or commitment
fees in connection with (a) the extension, renewal, modification, amendment and termination of the Loan, (b) the release or substitution of collateral therefor, (c) obtaining certain consents, waivers and approvals with respect to the
Property, or (d) the review of any Lease or proposed Lease or the preparation or review of any subordination, non-disturbance agreement (the occurrence of any of the above shall be called an “Event”). Borrower further acknowledges and
confirms that it shall be responsible for the payment of all costs of reappraisal of the Property or any part thereof, to the extent required by law, regulation, Lender or any governmental or quasi-governmental authority. Borrower hereby
acknowledges and agrees to pay, immediately, with or without demand, all such fees (as the same may be increased or decreased from time to time), and any additional fees of a similar type or nature which may be imposed by Lender from time to time,
upon the occurrence of any Event. Wherever it is provided for herein that Borrower pay any costs and expenses, such costs and expenses shall include, but not be limited to, all reasonable out-of-pocket expenses of Lender . 
 Section 6.6 LEGAL FEES FOR ENFORCEMENT. (a) Borrower shall
pay all reasonable legal fees incurred by Lender in connection with the preparation of the Loan Agreement, the 

  

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Note, this Security Instrument and the other Loan Documents and (b) Borrower shall pay to Lender on demand any and all expenses, including reasonable
legal expenses and attorneys’ fees, incurred or paid by Lender in protecting its interest in the Property or in collecting any amount payable hereunder or in enforcing its rights hereunder with respect to the Property (including commencing any
foreclosure action), whether or not any legal proceeding is commenced hereunder or thereunder, together with interest thereon at the Default Rate from the date paid or incurred by Lender until such expenses are paid by Borrower. 
 ARTICLE 7 - DUE ON SALE/ENCUMBRANCE 
 Section 7.1 LENDER RELIANCE. Borrower acknowledges that Lender has examined and relied on the experience of Borrower and its 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. 
 Section 7.2 NO
SALE/ENCUMBRANCE. Neither Borrower nor any Restricted Party shall Transfer the Property or any part thereof or any interest therein or permit or suffer the Property or any part thereof or any interest
therein to be Transferred other than as expressly permitted pursuant to the terms of the Loan Agreement. 
 ARTICLE 8 - PREPAYMENT 

 Section 8.1 PREPAYMENT. The Debt may not be prepaid in whole or in part except in accordance
with the express terms and conditions of the Loan Agreement. 
 Section 8.2 RELEASE OF
PROPERTY. Borrower shall not be entitled to a release of any portion of the Property from the lien of this Security Instrument except in accordance with terms and conditions of the Loan Agreement. 
 ARTICLE 9 - RIGHTS AND REMEDIES 
 Section 9.1 REMEDIES. Upon the occurrence of and during the continuance of any Event of Default, Borrower agrees that Lender may, take such action, without notice or demand, as it deems advisable to
protect and enforce its rights against Borrower and in and to the Property, including, but not limited to, the following actions, each of which may be pursued concurrently or otherwise, at such time and in such order as Lender may determine, in its
sole discretion, without impairing or otherwise affecting the other rights and remedies of Lender: 
 (a) declare the entire unpaid Debt to be
immediately due and payable; 
 (b) institute proceedings, judicial or otherwise, for the complete foreclosure of this Security Instrument
under any applicable provision of law in which case the Property or any interest therein may be sold for cash or upon credit in one or more parcels or in several interests or portions and in any order or manner; 
  

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 (c) with or without entry, to the extent permitted and pursuant to the procedures provided by Applicable
Law, institute proceedings for the partial foreclosure of this Security Instrument for the portion of the Debt then due and payable, subject to the continuing lien and security interest of this Security Instrument for the balance of the Debt not
then due, unimpaired and without loss of priority; 
 (d) sell for cash or upon credit the Property or any part thereof and all estate,
claim, demand, right, title and interest of Borrower therein and rights of redemption thereof, pursuant to power of sale or otherwise, at one or more sales, in one or more parcels, at such time and place, upon such terms and after such notice
thereof as may be required or permitted by law; 
 (e) institute an action, suit or proceeding in equity for the specific performance of any
covenant, condition or agreement contained herein, in the Note, the Loan Agreement, or in the other Loan Documents; 
 (f) recover judgment
on the Note either before, during or after any proceedings for the enforcement of this Security Instrument or the other Loan Documents; 
 (g) apply for the appointment of a receiver, trustee, liquidator or conservator of the Property, without notice and without regard for the adequacy of the security for the Debt and without regard for the solvency of Borrower, any Guarantor
or of any person, firm or other entity liable for the payment of the Debt; 
 (h) subject to any Applicable Law, the license granted to
Borrower under Section 1.2 hereof shall automatically be revoked and Lender may enter into or upon the Property, either personally or by its agents, nominees or attorneys and dispossess Borrower and its agents and servants therefrom, without
liability for trespass, damages or otherwise and exclude Borrower and its agents or servants wholly therefrom, and take possession of all books, records and accounts relating thereto and Borrower agrees to surrender possession of the Property and of
such books, records and accounts to Lender upon demand, and thereupon Lender may (i) use, operate, manage, control, insure, maintain, repair, restore and otherwise deal with all and every part of the Property and conduct business thereon;
(ii) complete any construction on the Property in such manner and form as Lender deems advisable; (iii) make alterations, additions, renewals, replacements and improvements to or on the Property; (iv) exercise all rights and powers of
Borrower with respect to the Property, whether in the name of Borrower or otherwise, including, without limitation, the right to make, cancel, enforce or modify Leases, obtain and evict tenants, and demand, sue for, collect and receive all Rents of
the Property and every part thereof; (v) require Borrower to pay monthly in advance to Lender, or any receiver appointed to collect the Rents, the fair and reasonable rental value for the use and occupation of such part of the Property as may
be occupied by Borrower; (vi) require Borrower to vacate and surrender possession of the Property to Lender or to such receiver and, in default thereof, Borrower may be evicted by summary proceedings or otherwise; and (vii) apply the
receipts from the Property to the payment of the Debt, in such order, priority and proportions as Lender shall deem appropriate in its sole discretion after deducting therefrom all expenses (including reasonable attorneys’ fees) incurred


  

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in connection with the aforesaid operations and all amounts necessary to pay the Taxes, Other Charges, Insurance Premiums and other expenses in connection
with the Property, as well as just and reasonable compensation for the services of Lender, its counsel, agents and employees; 
 (i) exercise
any and all rights and remedies granted to a secured party upon default under the Uniform Commercial Code, including, without limiting the generality of the foregoing: (i) the right to take possession of any Collateral (including, without
limitation, the Personal Property) or any part thereof, and to take such other measures as Lender may deem necessary for the care, protection and preservation of the Collateral (including without limitation, the Personal Property), and
(ii) request Borrower at its expense to assemble the Collateral, including without limitation, the Personal Property, and make it available to Lender at a convenient place acceptable to Lender. Any notice of sale, disposition or other intended
action by Lender with respect to the Collateral, including without limitation, the Personal Property, sent to Borrower in accordance with the provisions hereof at least five (5) days prior to such action, shall constitute commercially
reasonable notice to Borrower; 
 (j) apply any sums then deposited in the Accounts and any other sums held in escrow or otherwise by Lender
in accordance with the terms of this Security Instrument, the Loan Agreement, or any other Loan Documents to the payment of the following items in any order in its sole discretion: 
 (i) Taxes and Other Charges; 
 (ii) Insurance Premiums; 
 (iii) interest on the unpaid principal balance of the Note;

 (iv) amortization of the unpaid principal balance of the Note; or 
 (v) all other sums payable pursuant to the Note, the Loan Agreement, this Security Instrument and the other Loan Documents, including
without limitation advances made by Lender pursuant to the terms of this Security Instrument; 
 (k) surrender the Policies, collect the
unearned Insurance Premiums and apply such sums as a credit on the Debt in such priority and proportion as Lender in its discretion shall deem proper, and in connection therewith, Borrower hereby appoints Lender as agent and attorney-in-fact (which
is coupled with an interest and is therefore irrevocable) for Borrower to collect such Insurance Premiums; 
 (l) apply the undisbursed
balance of any Net Proceeds Deficiency deposit, together with interest thereon, to the payment of the Debt in such order, priority and proportions as Lender shall deem to be appropriate in its discretion; 
 (m) foreclose by power of sale or otherwise and apply the proceeds of any recovery to the Debt in accordance with Section 9.2 or to any deficiency
under this Security Instrument; 
 (n) exercise all rights and remedies under any Causes of Action, whether before or after any sale of the
Property by foreclosure, power of sale, or otherwise and apply the proceeds of any recovery to the Debt in accordance with Section 9.2 or to any deficiency under this Security Instrument; or 
  

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 (o) pursue such other remedies as Lender may have under Applicable Law. 
 In the event of a sale, by foreclosure, power of sale, or otherwise, of less than all of the Property, this Security Instrument shall continue as a lien and security
interest on the remaining portion of the Property unimpaired and without loss of priority. 
 Section 9.2 APPLICATION
OF PROCEEDS. The purchase money, proceeds and avails of any disposition of the Property, or any part thereof, or any other sums collected by Lender pursuant to the Note, this Security Instrument, the
Loan Agreement, or the other Loan Documents, may be applied by Lender to the payment of the Debt in such priority and proportions as Lender in its discretion shall deem proper. 
 Section 9.3 RIGHT TO CURE DEFAULTS. Upon the occurrence of any
Default or Event of Default, Lender may, but without any obligation to do so and without notice to or demand on Borrower and without releasing Borrower from any obligation hereunder, make or do the same in such manner and to such extent as Lender
may deem necessary to protect the security hereof. Lender is authorized to enter upon the Property for such purposes, or appear in, defend, or bring any action or proceeding to protect its interest in the Property or to foreclose this Security
Instrument or collect the Debt. The cost and expense of any cure hereunder (including reasonable attorneys’ fees to the extent permitted by law), with interest as provided below, shall constitute a portion of the Debt and shall be due and
payable to Lender upon demand. All such costs and expenses incurred by Lender in remedying such Default or Event of Default shall bear interest at the Default Rate for the period after notice from Lender that such cost or expense was incurred to the
date of payment to Lender and shall be deemed to constitute a portion of the Debt and be secured by this Security Instrument and the other Loan Documents and shall be immediately due and payable upon demand by Lender therefor. 
 Section 9.4 ACTIONS AND PROCEEDINGS. Lender has the right to appear in and defend
any action or proceeding brought with respect to the Property and, after the occurrence and during the continuance of an Event of Default, to bring any action or proceeding, in the name and on behalf of Borrower, which Lender, in its discretion,
decides should be brought to protect its interest in the Property. 
 Section 9.5 RECOVERY OF
SUMS REQUIRED TO BE PAID. Lender shall have the right from time to time to take action to recover any sum or sums which constitute a part of the Debt as
the same become due, without regard to whether or not the balance of the Debt shall be due, and without prejudice to the right of Lender thereafter to bring an action of foreclosure, or any other action, for an Event of Default by Borrower existing
at the time such earlier action was commenced. 
 Section 9.6 OTHER RIGHTS,
ETC. (a) The failure of Lender to insist upon strict performance of any term hereof shall not be deemed to be a waiver of any term of this Security Instrument. Borrower shall not be relieved of Borrower’s
obligations hereunder by reason of (i) the failure of Lender to comply with any request of Borrower or any Guarantor to take any action 

  

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to foreclose this Security Instrument or otherwise enforce any of the provisions hereof or of the Note or the other Loan Documents, (ii) the release,
regardless of consideration, of the whole or any part of the Property, or of any person liable for the Debt or any portion thereof, or (iii) any agreement or stipulation by Lender extending the time of payment or otherwise modifying or
supplementing the terms of the Note, the Loan Agreement, this Security Instrument or the other Loan Documents. 
 (b) It is agreed that the
risk of loss or damage to the Property is on Borrower, and Lender shall have no liability whatsoever for decline in value of the Property, for failure to maintain the Policies, or for failure to determine whether insurance in force is adequate as to
the amount of risks insured. Possession by Lender shall not be deemed an election of judicial relief, if any such possession is requested or obtained, with respect to the Property or any other Collateral not in Lender’s possession. 

(c) Lender may resort for the payment of the Debt to any other security held by Lender in such order and manner as Lender, in its discretion, may
elect. Lender may take action to recover the Debt, or any portion thereof, or to enforce any covenant hereof without prejudice to the right of Lender thereafter to foreclose this Security Instrument. The rights of Lender under this Security
Instrument shall be separate, distinct and cumulative and none shall be given effect to the exclusion of the others. No act of Lender shall be construed as an election to proceed under any one provision herein to the exclusion of any other
provision. Lender shall not be limited exclusively to the rights and remedies herein stated but shall be entitled to every right and remedy now or hereafter afforded at law or in equity. 
 Section 9.7 RIGHT TO RELEASE ANY PORTION OF
THE PROPERTY. Lender may release any portion of the Property for such consideration as Lender may require without, as to the remainder of the Property, in any way impairing or affecting the lien or
priority of this Security Instrument, or improving the position of any subordinate lienholder with respect thereto, except to the extent that the obligations hereunder shall have been reduced by the actual monetary consideration, if any, received by
Lender for such release, and may accept by assignment, pledge or otherwise any other property in place thereof as Lender may require without being accountable for so doing to any other lienholder. This Security Instrument shall continue as a lien
and security interest in the remaining portion of the Property. 
 Section 9.8 VIOLATION OF
LAWS. If the Property is not in compliance with Legal Requirements, Lender may impose additional requirements upon Borrower in connection herewith including, without limitation, monetary reserves or financial
equivalents. 
 Section 9.9 RIGHT OF ENTRY. Subject to the terms of
the Loan Agreement, Lender and its agents shall have the right to enter and inspect the Property at all reasonable times. 
 Section 9.10 SUBROGATION. If any or all of the proceeds of the Note have been used to extinguish, extend or renew any indebtedness heretofore existing against the Property, then, to the extent of
the funds so used, Lender shall be subrogated to all of the rights, claims, liens, titles, and interests existing against the Property heretofore held by, or in favor of, the holder of such indebtedness and such former rights, claims, liens, titles,
and interests, if any, are not waived but rather are continued in full force and effect in favor of Lender and are merged with the lien and security interest created herein as cumulative security for the repayment of the Debt, and the performance
and discharge of the Obligations. 
  

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 ARTICLE 10 - INDEMNIFICATIONS 
 Section 10.1 GENERAL INDEMNIFICATION. Borrower shall, at its sole cost and expense, protect,
defend, indemnify, release and hold harmless the Indemnified Parties from and against any and all Losses imposed upon or incurred by or asserted against any Indemnified Parties and directly or indirectly arising out of or in any way relating to any
one or more of the following: (a) any accident, injury to or death of persons or loss of or damage to property occurring in, on or about the Property or any part thereof or on the adjoining sidewalks, curbs, adjacent property or adjacent
parking areas, streets or ways; (b) any use, nonuse or condition in, on or about the Property or any part thereof or on the adjoining sidewalks, curbs, adjacent property or adjacent parking areas, streets or ways; (c) performance of any
labor or services or the furnishing of any materials or other property in respect of the Property or any part thereof; (d) any failure of the Property to be in compliance with any Legal Requirements; (e) any and all claims and demands
whatsoever which may be asserted against Lender by reason of any alleged obligations or undertakings on its part to perform or discharge any of the terms, covenants, or agreements contained in any Lease; or (f) the payment of any commission,
charge or brokerage fee to anyone which may be payable in connection with the funding of the Loan evidenced by the Note and secured by this Security Instrument. Any amounts payable to Lender by reason of the application of this Section 10.1
shall become immediately due and payable and shall bear interest at the Default Rate from the date loss or damage is sustained by Lender until paid. 
 Section 10.2 MORTGAGE AND/OR INTANGIBLE TAX. Borrower shall, at its sole cost and expense, protect, defend,
indemnify, release and hold harmless the Indemnified Parties from and against any and all Losses imposed upon or incurred by or asserted against any Indemnified Parties and directly or indirectly arising out of or in any way relating to any tax on
the making and/or recording of this Security Instrument, the Loan Agreement, the Note or any other Loan Document. 
 Section 10.3
ENVIRONMENTAL INDEMNITY. Simultaneously with this Security Instrument, Borrower and Indemnitor have executed and delivered the Environmental Indemnity. 
 ARTICLE 11 - WAIVERS 
 Section 11.1 WAIVER OF COUNTERCLAIM. Borrower hereby waives the right to assert a counterclaim, other than a mandatory or compulsory counterclaim, in any action or
proceeding brought against it by Lender arising out of or in any way connected with this Security Instrument, the Note, the Loan Agreement, any of the other Loan Documents, or the Obligations. 
 Section 11.2 MARSHALLING AND OTHER MATTERS. Borrower hereby
waives, to the extent permitted by law, the benefit of all appraisement, valuation, stay, extension, reinstatement and redemption laws now or hereafter in force and all rights of marshalling in the event of any sale hereunder of the Property or any
part thereof or any interest therein. Further, Borrower hereby expressly waives any and all rights of redemption from sale under any order or decree of foreclosure of this Security Instrument on behalf of Borrower, and on behalf of each Person
acquiring any interest in or title to the Property subsequent to the date of this Security Instrument and on behalf of all persons to the extent permitted by Legal Requirements. 
  

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 Section 11.3 WAIVER OF NOTICE.
Borrower shall not be entitled to any notices of any nature whatsoever from Lender except (a) with respect to matters for which this Security Instrument, the Loan Agreement or any other Loan Document, specifically and expressly provides for the
giving of notice by Lender to Borrower, and (b) with respect to matters for which Lender is required by any Applicable Law to give notice, and Borrower hereby expressly waives the right to receive any notice from Lender with respect to any
matter for which this Security Instrument does not specifically and expressly provide for the giving of notice by Lender to Borrower. 
 Section 11.4 WAIVER OF STATUTE OF LIMITATIONS. Borrower hereby expressly waives and releases to the fullest extent permitted by law, the
pleading of any statute of limitations as a defense to payment of the Debt or performance of its Other Obligations. 
 Section 11.5
SOLE DISCRETION OF LENDER. Wherever pursuant to this Security Instrument (a) Lender exercises any right given to it to approve or disapprove, (b) any
arrangement or term is to be satisfactory to Lender, or (c) any other decision or determination is to be made by Lender, the decision of Lender to approve or disapprove, all decisions that arrangements or terms are satisfactory or not
satisfactory and all other decisions and determinations made by Lender, shall be in the sole and absolute discretion of Lender, except as may be otherwise expressly and specifically provided herein or in any of the other Loan Documents. 

ARTICLE 12 - EXCULPATION 
 Section 12.1 EXCULPATION. Notwithstanding anything to the contrary contained in this Security Instrument, the liability of Borrower to pay the Debt and for the performance of the other agreements,
covenants and obligations contained herein and in the Note, the Loan Agreement and the other Loan Documents shall be limited as set forth in Section 9.4 of the Loan Agreement. 
 ARTICLE 13 - SUBMISSION TO JURISDICTION 
 Section 13.1
SUBMISSION TO JURISDICTION. With respect to any claim or action arising hereunder or under the Note or the other Loan Documents, Borrower (a) irrevocably submits to the
nonexclusive jurisdiction of the courts of the State of New York and the United States District Court located in the Borough of Manhattan in New York, New York, and appellate courts from any thereof, and (b) irrevocably waives any objection
which it may have at any time to the laying on venue of any suit, action or proceeding arising out of or relating to this Security Instrument brought in any such court, irrevocably waives any claim that any such suit, action or proceeding brought in
any such court has been brought in an inconvenient forum. Nothing in this Security Instrument will be deemed to preclude Lender from bringing an action or proceeding with respect hereto in any other jurisdiction. 
  

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 ARTICLE 14 - APPLICABLE LAW 
 Section 14.1 CHOICE OF LAW. THIS SECURITY INSTRUMENT SHALL BE DEEMED TO BE A CONTRACT ENTERED INTO PURSUANT TO THE LAWS OF THE STATE OF NEW
YORK AND SHALL IN ALL RESPECTS BE GOVERNED, CONSTRUED, APPLIED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, PROVIDED HOWEVER, THAT WITH RESPECT TO THE CREATION, PERFECTION, PRIORITY AND ENFORCEMENT OF THE LIEN OF THIS SECURITY
INSTRUMENT, AND THE DETERMINATION OF DEFICIENCY JUDGMENTS, THE LAWS OF THE STATE WHERE THE PROPERTY IS LOCATED SHALL APPLY. 
 Section 14.2 PROVISIONS SUBJECT TO APPLICABLE LAW. All rights, powers and remedies provided in this Security Instrument may be exercised
only to the extent that the exercise thereof does not violate any applicable provisions of law and are intended to be limited to the extent necessary so that they will not render this Security Instrument invalid, unenforceable or not entitled to be
recorded, registered or filed under the provisions of any Legal Requirements. 
 ARTICLE 15 - DEFINITIONS 
 Section 15.1 GENERAL DEFINITIONS. Unless the context clearly indicates a contrary intent or
unless otherwise specifically provided herein, words used in this Security Instrument may be used interchangeably in singular or plural form and the word “Borrower” shall mean “each Borrower and any subsequent owner or owners of the
Property or any part thereof or any interest therein,” the word “Lender” shall mean “Lender and any subsequent holder of the Note,” the word “Note,” shall mean “the Note and any other evidence of indebtedness
secured by this Security Instrument,” the word “Property” shall include any portion of the Property and any interest therein, and the phrases “legal fees”, “attorneys’ fees” and “counsel fees” shall
include any and all attorneys’, paralegal and law clerk fees and disbursements, including, but not limited to, fees and disbursements at the pre-trial, trial and appellate levels incurred or paid by Lender in protecting its interest in the
Property, the Leases and the Rents and enforcing its rights hereunder. 
 Section 15.2 HEADINGS,
ETC. The headings and captions of various Articles and Sections of this Security Instrument are for convenience of reference only and are not to be construed as defining or limiting, in any way, the scope or intent
of the provisions hereof. 
 ARTICLE 16 - MISCELLANEOUS PROVISIONS 
 Section 16.1 NO ORAL CHANGE. This Security Instrument and any provisions hereof,
may not be modified, amended, waived, extended, changed, discharged or terminated orally or by any act or failure to act on the part of Borrower or Lender, but only by an agreement in writing signed by the party against whom enforcement of any
modification, amendment, waiver, extension, change, discharge or termination is sought. 
 Section 16.2
LIABILITY. If Borrower consists of more than one person, the obligations and liabilities of each such person hereunder shall be joint and several. This Security Instrument shall be binding upon and inure to the
benefit of Borrower and Lender and their respective successors and assigns forever. 
  

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 Section 16.3 INAPPLICABLE PROVISIONS. If any
term, covenant or condition of this Security Instrument or any other Loan Document, is held to be invalid, illegal or unenforceable in any respect, the Note and this Security Instrument or the other Loan Documents, as the case may be, shall be
construed without such provision. 
 Section 16.4 DUPLICATE ORIGINALS;
COUNTERPARTS. This Security Instrument may be executed in any number of duplicate originals and each duplicate original shall be deemed to be an original. This Security Instrument may be executed in several
counterparts, each of which counterparts shall be deemed an original instrument and all of which together shall constitute a single Security Instrument. The failure of any party hereto to execute this Security Instrument, or any counterpart hereof,
shall not relieve the other signatories from their obligations hereunder. 
 Section 16.5 NUMBER AND
GENDER. Whenever the context may require, any pronouns used herein shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns and pronouns shall include the plural and vice
versa. 
 Section 16.6 NOTICES. All notices required or permitted under this Security Instrument
shall be given and be effective in accordance with Section 10.6 of the Loan Agreement. 
 ARTICLE 17 - CROSS-COLLATERALIZATION 

 Section 17.1 CROSS-COLLATERALIZATION. Borrower acknowledges that the Debt is
secured by this Security Instrument together with those additional Security Instruments given by Borrower and/or certain Affiliates of Borrower to Lender, together with their respective Assignments of Leases and other Loan Documents securing or
evidencing the Debt, and encumbering the other Individual Properties, all as more specifically set forth in the Loan Agreement. Upon the occurrence of and during the continuance of an Event of Default, Lender shall have the right to institute a
proceeding or proceedings for the total or partial foreclosure of this Security Instrument and any or all of the other Security Instruments whether by court action, power of sale or otherwise, under any applicable provision of law, for all of the
Debt or the portion of the Debt allocated to the Property in the Loan Agreement, and the lien and the security interest created by the other Security Instruments shall continue in full force and effect without loss of priority as a lien and security
interest securing the payment of that portion of the Debt then due and payable but still outstanding. Borrower acknowledges and agrees that the Property and the other Individual Properties are located in one or more States and counties, and
therefore Lender shall be permitted to enforce payment of the Debt and the performance of any term, covenant or condition of the Note, this Security Instrument, the Loan Documents or the other Security Instruments and exercise any and all rights and
remedies under the Note, this Security Instrument, the other Loan Documents or the other Security Instruments, or as provided by law or at equity, by one or more proceedings, whether contemporaneous, consecutive or both, to be determined by Lender,
in its sole discretion, in any one or more of the States or counties in which the Property or any other Individual Property is located. Neither the acceptance of this Security Instrument, the other Loan Documents or the other Security Instruments
nor the enforcement thereof in any one State or county, whether by court action, foreclosure, power of sale or 

  

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otherwise, shall prejudice or in any way limit or preclude enforcement by court action, foreclosure, power of sale or otherwise, of the Note, this Security
Instrument, the other Loan Documents, or any other Security Instruments through one or more additional proceedings in that State or county or in any other State or county. Any and all sums received by Lender under the Note, this Security Instrument,
and the other Loan Documents shall be applied to the Debt in such order and priority as Lender shall determine, in its sole discretion, without regard to the Allocated Loan Amount for the Property or any other Individual Property or the appraised
value of the Property or any Individual Property. 
 ARTICLE 18 - MASSACHUSETTS PROVISIONS 
 Section 18.1 INCONSISTENCIES. In the event of any inconsistencies between the terms and conditions of this
Article 18 and the other provisions of this Security Instrument, the terms and conditions of this Article 18 shall control and be binding. 
 Section 18.2 The words “with MORTGAGE COVENANTS” are hereby added after the word “convey and grant a security interest to Lender and its successors and assigns” contained in Section 1.1 of this Security
Instrument entitled “PROPERTY MORTGAGED”. 
 Section 18.3 The words
“located at 625 University Avenue, Norwood, Norfolk County, Massachusetts” are hereby added after the words “real property” in subparagraph (a) of Section 1.1 of this Security Instrument entitled “Land”.

 Section 18.4 The word “internal” is hereby added immediately before each instance of the word “laws” in
Section 14.1 of this Security Instrument entitled “CHOICE OF LAW.” 
 Section 18.5 STATUTORY POWER OF SALE. This Security Instrument is upon the STATUTORY CONDITION and upon the further condition that
all covenants and agreements of Borrower in the Note, the Loan Agreement, the Security Instrument and the other Loan Documents, and in all other mortgages, debts and obligations of or from Borrower to or for benefit of Lender shall be kept and fully
performed and upon any breach of same, Lender shall have the STATUTORY POWER OF SALE and any other powers given by statute. 
 Section 18.6 The following sentence is hereby inserted after the first sentence in Article 1, Section 1.3 entitled “SECURITY AGREEMENT”: 
 “This Security Instrument is intended to be effective as and constitute a financing statement filed with the real estate records as a fixture filing
covering goods which are or are to become fixtures.” 
 Section 18.7 The words “including, without limitation, the
breach of the statutory condition contained herein” are hereby added following the words “Upon the occurrence and continuation of any Event of Default,” in the first paragraph of Section 9.1 entitled
“REMEDIES.”  
 Section 18.8 The text “; or” is hereby deleted after subsection
(n) and subsection (o) is hereby recategorized as subsection (q). The following subsections are hereby added to Article 9, Section 9.1 entitled “REMEDIES”: 
  

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	 	(o)	exercise the STATUTORY POWER OF SALE; 

  

	 	(p)	foreclose any and all rights of the Lender in and to the Property, whether by sale, entry, or in any manner provided for hereunder or under Massachusetts General Laws; or


 ARTICLE 19 - GROUND LEASE PROVISIONS 
 Section 19.1 NO MERGER OF FEE AND LEASEHOLD ESTATES; RELEASES. So long
as any portion of the Debt shall remain unpaid, unless Lender shall otherwise consent, the fee title to the Land and the Leasehold Estate shall not merge but shall always be kept separate and distinct, notwithstanding the union of such estates in
Borrower, Fee Owner, or in any other Person by purchase, operation of law or otherwise. Lender reserves the right, at any time, to release portions of the Property, including, but not limited to, the Leasehold Estate, with or without consideration,
at Lender’s election, without waiving or affecting any of its rights hereunder or under the Note or the other Loan Documents and any such release shall not affect Lender’s rights in connection with the portion of the Property not so
released. 
 Section 19.2 BORROWER’S ACQUISITION OF
FEE ESTATE. In the event that Borrower, so long as any portion of the Debt remains unpaid, shall be the owner and holder of the fee title to the Land, the lien of this Security Instrument shall be
spread to cover Borrower’s fee title to the Land and said fee title shall be deemed to be included in the Property. Borrower agrees, at its sole cost and expense, including without limitation, Lender’s reasonable attorney’s fees, to
(i) execute any and all documents or instruments necessary to subject its fee title to the Land to the lien of this Security Instrument; and (ii) provide a title insurance policy which shall insure that the lien of this Security Instrument
is a first lien on Borrower’s fee title to the Land. 
 Section 19.3 Bankruptcy. 
 (a) Subject to the terms of the Loan Agreement, Borrower shall not, in any event, including the bankruptcy, reorganization or insolvency of Borrower or
Fee Owner, (i) surrender its leasehold estate, or any portion thereof, nor terminate, cancel or acquiesce in the rejection of the Ground Lease; (ii) consent or fail to object to any attempt by Fee Owner to sell or transfer its interest in
the Land and the Improvements free and clear of the Ground Lease; or (iii) modify, change, supplement, alter or amend the Ground Lease in any respect, either orally or in writing. Subject to the terms of the Loan Agreement, Borrower does hereby
expressly release, assign, relinquish and surrender unto Lender all its right, power and authority to terminate, cancel, acquiesce in the rejection of, consent or object to any attempted transfer Fee Owner’s interest in the Land and the
Improvements free and clear of the Ground Lease, or modify, change, supplement, alter or amend the Ground Lease in any respect, either orally or in writing, at any time, including in the event of the bankruptcy, reorganization or insolvency of
Borrower or Fee Owner under the Ground Lease, and any attempt on the part of Borrower to exercise any such right without the consent of Lender shall be null and void. Notwithstanding the foregoing, in the event of a threatened termination of the
Ground Lease due to the bankruptcy, reorganization or insolvency of Borrower, Borrower shall, at Lender’s election, absolutely assign to Lender, in lieu of such termination, all of Borrower’s right, title and interest in and to the Ground
Lease. 
  

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 (b) In the event the Ground Lease is rejected by Fee Owner, as debtor in possession, or by a trustee for
Fee Owner, pursuant to Section 365 of the Bankruptcy Code, Borrower shall not exercise its right to elect under Section 365(h)(1) of the Bankruptcy Code to terminate or treat the Ground Lease as terminated. Any such election made shall be
null and void. In any event, Borrower hereby waives, for the benefit of Lender, its successors and assigns only, and not enforceable by anyone else, the provisions of Section 365 of the Bankruptcy Code, or of any statute or rule of law now or
hereafter in effect which gives or purports to give Borrower any right of election to terminate the Ground Lease, to acquiesce in the termination of the Ground Lease or to surrender possession of the Property in the event of the bankruptcy,
reorganization or insolvency of Borrower or any other party including, without limitation, Fee Owner. 
 (c) In the event Fee Owner, as
debtor in possession, or by a trustee for Fee Owner, attempts to transfer its interest in the Land and the Improvements free and clear of the Ground Lease pursuant to Section 363 of the Bankruptcy Code, Borrower shall not consent, acquiesce or
fail to object to such attempted transfer. Any such consent, acquiescence or failure to object made shall be null and void. In any event, Borrower hereby waives, for the benefit of Lender, its successors and assigns only, and not enforceable by
anyone else, the provisions of Section 363 of the Bankruptcy Code, or of any statute or rule of law now or hereafter in effect which gives or purports to give Borrower any right to consent to or acquiesce in the transfer of the Fee Owner’s
interest in the Land and the Improvements free and clear of the Ground Lease, to acquiesce in the termination of the Ground Lease or to surrender possession of the Property in the event of the bankruptcy, reorganization or insolvency of Fee Owner or
any other party. 
 [NO FURTHER TEXT ON THIS PAGE] 
  

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 IN WITNESS WHEREOF, THIS SECURITY INSTRUMENT has been executed by Borrower the day and year first above
written. 
  

	
	NATIONAL INDUSTRIAL PORTFOLIO BORROWER, LLC, a Delaware limited liability company
	
	 By                                      
                

	 Name                                      
            

	 Title: Manager



  







 ACKNOWLEDGEMENT 
  

			
	COMMONWEALTH/STATE OF
                            	  	)
		  	:ss.
	COUNTY OF
                            	  	)

  
 On this
         day of                     , 2007, before me, the undersigned notary public,
personally appeared                             , being the
                     of National Industrial Portfolio Borrower, LLC, a Delaware limited liability company, proved to me through satisfactory
evidence of identification, which was photographic identification with signature issued by a federal or state governmental agency, oath or affirmation of a credible witness, personal knowledge of the undersigned, to be the person whose name is
signed on the preceding or attached document(s), and who swore or affirmed to me that the contents of the document(s) are truthful and accurate to the best of his knowledge and belief. 
 (official seal) 

	
	
	  
	                                     , Notary Public

 My commission expires










 EXHIBIT A 
 (Description of Land)