# EDGAR Filing Document

**Accession Number:** 0001959961
**File Stem:** 0001959961-26-000004
**Filing Date:** 2026-3
**Character Count:** 1489656
**Document Hash:** 80b921ff9eae2c8c233f8698feed87b6
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001959961-26-000004.hdr.sgml**: 20260318

**ACCESSION NUMBER**: 0001959961-26-000004

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 67

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260318

**DATE AS OF CHANGE**: 20260318

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** IPC Alternative Real Estate Income Trust, Inc.
- **CENTRAL INDEX KEY:** 0001959961
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE INVESTMENT TRUSTS [6798]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 871302380
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 333-272750
- **FILM NUMBER:** 26769098

**BUSINESS ADDRESS:**
- **STREET 1:** 2901 BUTTERFIELD ROAD
- **CITY:** OAK BROOK
- **STATE:** IL
- **ZIP:** 60523
- **BUSINESS PHONE:** 6302188000

**MAIL ADDRESS:**
- **STREET 1:** 2901 BUTTERFIELD ROAD
- **CITY:** OAK BROOK
- **STATE:** IL
- **ZIP:** 60523

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Inland Private Capital Alternative Assets Fund, LLC
- **DATE OF NAME CHANGE:** 20221227

?xml version='1.0' encoding='ASCII'? 10-K

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UNITED STATES

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549** 

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**FORM** 10-K

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☒ **ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED** DECEMBER 31**,** 2025

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO** 

**COMMISSION FILE NUMBER:** 333-272750

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IPC ALTERNATIVE REAL ESTATE INCOME TRUST, INC.

**(Exact name of registrant as specified in its charter)**

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| | |
|:---|:---|
| Maryland | 87-1302380 |
| **(State or other jurisdiction of**<br>**incorporation or organization)** | **(I.R.S. Employer**<br>**Identification No.)** |
| 2901 Butterfield Road**,** Oak Brook**,** Illinois | 60523 |
| **(Address of principal executive offices)** | **(Zip Code)** |

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630**-**218-8000

**(Registrant's telephone number, including area code)**

**Securities registered pursuant to Section 12(b) of the Act:**

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| | | |
|:---|:---|:---|
| **Title of each class** | **Trading**<br>**Symbol(s)** | **Name of each exchange on which registered** |
| **None** | **None** | **None** |

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**Securities registered pursuant to Section 12(g) of the Act:**

**None**

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Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes □No ⌧

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes □No ⌧

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧No □

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧No □

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

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| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | □ | Accelerated filer | □ |
| Non-accelerated filer | ⌧ | Smaller reporting company | ⌧ |
| Emerging growth company | ⌧ |  |  |

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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ⌧

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. □

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. □

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b).□

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes □No ⌧

The aggregate market value of the common stock held by non-affiliates of the registrant: There is no established public market for the registrant's shares of common stock.

As of March 17, 2026, the registrant has the following shares of common stock outstanding: 189,090 shares of Class T common stock, 0 shares of Class S common stock, 24,711 shares of Class D common stock, 376,414 shares of Class I common stock, 10,770 shares of Class X-1 common stock, 0 shares of Class X-2 common stock and 0 shares of Class A common stock.

Auditor Name: PricewaterhouseCoopers LLP Auditor Location: Chicago, IL Auditor Firm ID: 238

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**IPC ALTERNATIVE REAL ESTATE INCOME TRUST, INC.**

**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
|  |  | Page |
|  | Part I |  |
| Item 1. | [<u>Business</u>](#item_1_business) | 4 |
| Item 1A. | [<u>Risk Factors</u>](#item_1a_risk_factors) | 9 |
| Item 1B. | [<u>Unresolved Staff Comments</u>](#item_1b_unresolved_staff_comments) | 59 |
| Item 1C. | [<u>Cybersecurity</u>](#item_1c_cybersecurity) | 59 |
| Item 2. | [<u>Properties</u>](#item_2_properties) | 60 |
| Item 3. | [<u>Legal Proceedings</u>](#item_3_legal_proceedings) | 63 |
| Item 4. | [<u>Mine Safety Disclosures</u>](#item_4_mine_safety) | 63 |
|  | Part II |  |
| Item 5. | [<u>Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities</u>](#item_5_market_for_registrant_common_eq) | 64 |
| Item 6. | [<u>Reserved</u>](#item_6_reserved) | 70 |
| Item 7. | [<u>Management's Discussion and Analysis of Financial Condition and Results of Operations</u>](#item_7_mda_and_results_of_ops) | 71 |
| Item 7A. | [<u>Quantitative and Qualitative Disclosures About Market Risk</u>](#item_7a_quant_qual_market_risk) | 80 |
| Item 8. | [<u>Financial Statements and Supplementary Data</u>](#item_8_financial_statements) | 81 |
| Item 9. | [<u>Changes in and Disagreements with Accountants on Accounting and Financial Disclosure</u>](#item_9_changes_disagreements_with_accts) | 81 |
| Item 9A. | [<u>Controls and Procedures</u>](#item_9a_controls_and_procedures) | 81 |
| Item 9B. | [<u>Other Information</u>](#item_9b_other_information) | 82 |
| Item 9C. | [<u>Disclosure Regarding Foreign Jurisdictions that Prevent Inspections</u>](#item_9c_foreign_jurisdictions) | 82 |
|  | Part III |  |
| Item 10. | [<u>Directors, Executive Officers and Corporate Governance</u>](#item_10_directors_exec_officers_corp_gov) | 83 |
| Item 11. | [<u>Executive Compensation</u>](#item_11_executive_compensation) | 87 |
| Item 12. | [<u>Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters</u>](#item_12_beneficial_stock_ownership) | 88 |
| Item 13. | [<u>Certain Relationships and Related Transactions, and Director Independence</u>](#item_13_certain_relationship_rpt) | 89 |
| Item 14. | [<u>Principal Accounting Fees and Services</u>](#item_14_principal_accountant_fees_svcs) | 101 |
|  | Part IV |  |
| Item 15. | [<u>Exhibits and Financial Statement Schedules</u>](#item_15_exhibits_financial_stmts) | 103 |
| Item 16. | [<u>Form 10-K Summary</u>](#item_16_form_10k_summary) | 103 |
|  | [<u>Signatures</u>](#signatures) | 107 |

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**Summary of Risk Factors**

*We are subject to numerous risks and uncertainties that could cause our actual results and future events to differ materially from those set forth or contemplated in our forward-looking statements, including those summarized below. The following list of risks and uncertainties is only a summary of some of the most important factors and is not intended to be exhaustive. This risk factor summary should be read together with the more detailed discussion of risks and uncertainties set forth under Item 1A "Risk Factors" of this Annual Report on Form 10-K. Defined terms used in this summary have the meanings provided elsewhere in this Annual Report on Form 10-K. As used herein, the term "you" refers to our current stockholders or potential investors in our common stock, as applicable.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We have a limited operating history, and there is no assurance that we will achieve our investment objectives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Because our offering is a "blind pool" offering, you will not have the opportunity to evaluate our investments to be made through our Operating Partnership (as hereinafter defined) with the proceeds before we make them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Since there is no public trading market for shares of our common stock, repurchase of shares by us will likely be the only way to dispose of your shares. Our share repurchase plan provides stockholders with the opportunity to request that we repurchase their shares on a monthly basis, but we are not obligated to repurchase any shares and may choose to repurchase only some, or even none, of the shares that have been requested to be repurchased in any particular month in our discretion. In addition, repurchases will be subject to available liquidity and other significant restrictions. Further, our board of directors may make exceptions to, modify or suspend our share repurchase plan if in its reasonable judgment it deems such action to be in our best interest, such as when a repurchase request would place an undue burden on our liquidity, adversely affect our operations or risk having an adverse impact on us that would outweigh the benefit of the repurchase offer. Although our share repurchase plan may be suspended for an indefinite amount of time, our board of directors will not terminate our share repurchase plan unless shares of our common stock are listed on a national securities exchange or unless required by law. As a result, our shares should be considered as having only limited liquidity and at times may be illiquid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We cannot guarantee that we will continue to make distributions, and if we do, we may fund such distributions from sources other than cash flow from operations, including, without limitation, the sale of our assets, borrowings or offering proceeds, and we have no limits on the amounts we may pay from such sources.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The purchase and repurchase price for shares of our common stock will generally be based on our prior month's net asset value ("NAV") and will not be based on any public trading market. Although there will be independent valuations of our properties from time to time, the valuation of properties is inherently subjective and our NAV may not accurately reflect the actual price at which our properties could be liquidated on any given day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We have no employees and are dependent on our Advisor (as hereinafter defined) to conduct our operations. Our Advisor will face conflicts of interest as a result of, among other things, the allocation of investment opportunities among us and Inland Programs (as hereinafter defined), the allocation of time of its investment professionals and the level of fees that we will pay to our Advisor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Failure by us, our Advisor, the Dealer Manager (as hereinafter defined) or our service providers (including our transfer agent) or tenants to implement effective information and cybersecurity policies, procedures and capabilities could disrupt our business and harm our results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We are conducting a "best efforts" offering. If we are not able to raise a substantial amount of capital in the near term, our ability to achieve our investment objectives could be adversely affected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Principal and interest payments on any borrowings will reduce the amount of funds available for distribution or investment in additional real estate assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•There are limits on the ownership and transferability of our shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Although our investment strategy is to invest in stabilized commercial real estate diversified among alternative sectors with a focus on providing current income to investors, an investment in us is not an investment in fixed income. Fixed income has material differences from an investment in the Company, including those related to vehicle structure, investment objectives and restrictions, risks, fluctuation of principal, safety, guarantees or insurance, fees and expenses, liquidity and tax treatment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We elected to be taxed as a REIT for U.S. federal income tax purposes beginning with our taxable year ended December 31, 2024. Until that time, we were subject to taxation at regular corporate rates under the Code. We intend to continue to qualify as a REIT for U.S. federal income tax purposes. However, if we fail to qualify as a REIT and no relief provisions apply, our NAV and cash available for distribution to our stockholders could materially decrease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The acquisition of investment properties may be financed in substantial part by borrowing, which increases our exposure to loss. The use of leverage involves a high degree of financial risk and will increase the exposure of the investments to adverse economic factors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Investing in commercial real estate assets involves certain risks, including but not limited to: tenants' inability to pay rent (whether due to property-specific factors, sector-level issues, or broader macroeconomic conditions), increases in interest rates and lack of availability of financing, tenant turnover and vacancies and changes in supply of or demand for similar properties in a given market.

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**PART I**

**Item 1. Business**

**General Development of the Business**

IPC Alternative Real Estate Income Trust, Inc. (the "Company", "we," "our," or "us") was incorporated on June 12, 2023 as a Maryland corporation and elected to be treated as a real estate investment trust ("REIT") for U.S. federal income tax purposes commencing with our taxable year ended December 31, 2024. Until that time, we were subject to taxation at regular corporate rates under the Internal Revenue Code of 1986, as amended (the "Code"). We had little or no taxable income for the taxable year ended December 31, 2023. We were originally formed on June 17, 2021 as a Delaware limited liability company named Inland Private Capital Alternative Assets Fund, LLC and converted to a Maryland corporation on June 12, 2023. We are the sole general partner of IPC Alternative Real Estate Operating Partnership, LP, a Delaware limited partnership (the "Operating Partnership") (originally formed under the name IPC Alternative Assets Operating Partnership, LP). We have no employees.

Prior to August 24, 2023, we were managed by IPC Alternative Real Estate Advisor, LLC (the "Advisor"), an affiliate of Inland Real Estate Investment Corporation ("IREIC" or our "sponsor"), pursuant to a Business Management Agreement. On August 24, 2023, the Business Management Agreement was terminated and we, the Operating Partnership and the Advisor entered into an advisory agreement, which was effective from August 1, 2023. Effective August 28, 2025, we, the Operating Partnership and the Advisor entered into an amended and restated advisory agreement (as may be amended or restated from time to time, the "Advisory Agreement").

We conduct substantially all of our business and own, indirectly, substantially all of our assets through the Operating Partnership. We, through the Operating Partnership, invest in stabilized, income-generating commercial real estate across alternative property types, with a non-exclusive focus on self-storage facilities, student housing properties and healthcare-related properties. Healthcare-related assets may include medical outpatient buildings, ambulatory surgery centers, senior living communities and life science and laboratory facilities. We, through the Operating Partnership, may also invest in value-add or other development projects in these asset classes, potentially through a variety of ownership structures including but not limited to direct ownership, joint ventures, co-investment opportunities, preferred equity positions and others.

On September 28, 2023, our Registration Statement on Form S-11 (File No. 333-272750) with respect to our public offering was declared effective by the Securities and Exchange Commission ("SEC"). We have registered with the SEC an offering up to $1.25 billion in shares of common stock, consisting of up to $1 billion in shares in our primary offering and up to $250 million in shares pursuant to our distribution reinvestment plan (the "Public Offering"). Inland Securities Corporation (the "Dealer Manager"), an affiliate of our sponsor, is the dealer manager for the Public Offering and the Private Offering (described below). We are offering to sell any combination of four classes of shares of our common stock: Class T shares, Class S shares, Class D shares and Class I shares, with a dollar value up to the maximum offering amount. The share classes have different upfront selling commissions and dealer manager fees, and different ongoing distribution fees. The purchase price per share for each class of common stock will vary and will generally equal our prior month's net asset value ("NAV") per share, as determined monthly, plus applicable upfront selling commissions and dealer manager fees.

On December 1, 2023, we had satisfied the minimum offering requirement in all states, except the State of Pennsylvania, in the Public Offering and authorized the release of proceeds from escrow.

On August 28, 2025, we commenced a private offering (the "Private Offering") of up to $500 million of our Class I shares, Class X-1 shares and Class X-2 shares of common stock to "accredited investors" as defined in Regulation D promulgated under the Securities Act of 1933, as amended (the "Securities Act"). The purchase price per share for each class of common stock in the Private Offering will vary and will generally be the prior month's NAV per share for such class. No upfront selling commissions, dealer manager fees or ongoing distribution fees will be paid with respect to purchases of Class I shares, Class X-1 shares and Class X-2 shares sold in the Private Offering. The Private Offering is being conducted pursuant to Rule 506(c) of Regulation D and other applicable exemptions. Class I shares, Class X-1 shares and Class X-2 shares in the Private Offering are only available through distribution participants selected by the Dealer Manager as being eligible based on the amount of offering proceeds anticipated to be raised through such distribution participants, as well as other factors, in the Dealer Manager's discretion. Distribution participants that are initially eligible only to sell Class I or Class X-1 shares in the Private Offering, may become eligible to sell Class X-1 and/or Class X-2 shares in the Private Offering if the gross proceeds in the Private Offering raised by such distribution participants reach the target specified by the Dealer Manager. We may also offer investors who have purchased Class I shares in the Public Offering and have held such shares for at least one year the option to exchange such shares for Class X-1 and Class X-2 shares at an exchange rate based on the NAV per share of each class involved in the exchange as of the exchange date if such investor's financial intermediary has reached the requisite gross proceeds raised threshold in the Private Offering as specified by the Dealer Manager. All Class I shares sold in the Private Offering will be exchanged for Class X-1 or Class X-2 shares at an exchange rate based on the NAV per share of each class involved in the exchange as of the exchange date regardless of hold period if the gross proceeds in the Private Offering raised by the applicable distribution participant

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reach the target specified by the Dealer Manager. Similarly, Class X-1 shares sold in the Private Offering will be exchanged for Class X-2 shares at an exchange rate based on the NAV per share of each class as of the exchange date if the gross proceeds in the Private Offering raised by the applicable distribution participant reach the target specified by the Dealer Manager.

When we receive proceeds from the Public Offering and the Private Offering (collectively, the "Offerings"), we contribute such proceeds to the Operating Partnership and receive Operating Partnership units ("OP Units") that correspond to the classes of the shares sold. We account for the units acquired in the Operating Partnership as an equity method investment during any period that our investment in the Operating Partnership is not considered significant to the Operating Partnership and expect to consolidate the Operating Partnership at such time that our investment in the Operating Partnership is considered significant to the Operating Partnership, and thereafter present the results of operations on a consolidated basis.

As of March 17, 2026, we had received and accepted investors' subscriptions for and issued 189,090 shares of Class T common stock, 0 shares of Class S common stock, 24,711 shares of Class D common stock and 365,029 shares of Class I common stock in the Public Offering, resulting in gross proceeds of $14 million, including proceeds from the distribution reinvestment plan (as amended, the "DRP"). As of March 17, 2026, $1.2 billion of common stock remained available to be sold in the Public Offering.

As of December 31, 2025, we hold 176,028 Class T OP Units, 24,491 Class D OP Units, 347,759 Class I OP Units and 4,298 Class X-1 OP Units in the Operating Partnership.

For more information on the Offerings, see Part IV, Item 15, "*Note 4 - Equity*" in the Company's financial statements.

We established the following programs to facilitate additional investment in our shares and to provide limited liquidity for stockholders.

***Distribution Reinvestment Plan***

We adopted the DRP whereby stockholders who elect to participate in the DRP or who are automatically enrolled in the DRP pursuant to the terms of a subscription for shares of common stock will have their cash distributions automatically reinvested in additional shares of our common stock. Stockholders that do not participate in the DRP will automatically receive their distributions in cash. The purchase price for shares purchased under the DRP will be equal to the transaction price for such shares at the time the distribution is payable, which will generally be equal to our prior month's NAV per share for that share class. Stockholders will not pay upfront selling commissions or dealer manager fees when purchasing shares under the DRP; however, all outstanding Class T, Class S and Class D shares, including those purchased under the DRP, will be subject to ongoing distribution fees. The distribution fees with respect to shares of our Class T shares, Class S shares and Class D shares are calculated based on our NAV for those shares and may reduce the NAV or, alternatively, the distributions payable with respect to shares of each such class, including shares issued in respect of distributions on such shares under the DRP.

***Share Repurchase Plan***

We adopted a share repurchase plan (as amended, the "SRP"), whereby on a monthly basis, stockholders may request that we repurchase all or any portion of their shares. We may choose to repurchase all, some or none of the shares that have been requested to be repurchased at the end of any particular month, in our discretion, subject to any limitations in the SRP. The total amount of aggregate repurchases of Class T, Class S, Class D, Class I, Class X-1 and Class X-2 shares will be limited to 2% of the aggregate NAV per month and 5% of the aggregate NAV per calendar quarter. Shares will be repurchased at a price equal to the repurchase price per share for each class of common stock, which shall be equal to the then-current offering price before applicable selling commissions and dealer manager fees (the "Transaction Price") on the applicable repurchase date, subject to any early repurchase deduction. Shares that have not been outstanding for at least one year will be repurchased at 95% of the Transaction Price (the "Early Repurchase Deduction"). In the event that we, at our sole discretion, elect to issue Class A shares to holders of OP Units seeking redemption, we expect to amend the SRP to address the repurchase of Class A shares on the same terms that are applicable to the Class T, Class S, Class D, Class I, Class X-1 and Class X-2 shares. Due to the illiquid nature of investments in real estate, we may not have sufficient liquid resources to fund repurchase requests and have established limitations on the amount of funds we may use for repurchases during any calendar month and quarter. Further, our board of directors may modify or suspend the SRP if it deems in its reasonable judgment such action to be in our best interest. We began the SRP in January 2024, the first month of the first full calendar quarter following the conclusion of our escrow period.

**Investment Objectives**

Our investment objectives are to invest in assets that will enable us to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• preserve and protect invested capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• provide current income in the form of regular cash distributions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• realize potential growth in the value of our investments.

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We cannot assure you that we will achieve our investment objectives. In particular, we note that the NAV of non-listed REITs may be subject to volatility related to the values of their underlying assets. See the "Risk Factors" section of this Annual Report on Form 10-K.

**Investment Strategy**

Through its affiliation with The Inland Real Estate Group of Companies, Inc. (together with its subsidiaries and affiliates, "Inland"), the Advisor acquires, manages and sells properties in our portfolio on our behalf, subject to the supervision and oversight of our board of directors. Together with its affiliates, Inland is a fully-integrated group of legally and financially separate companies that is involved in every aspect of real estate, including property management, leasing, marketing, acquisition, disposition, development, redevelopment, renovation, construction, finance, investment products and other related services. Since its founding in 1968, through December 31, 2025, Inland has sponsored 851 programs and raised more than $31 billion in capital from more than 490,000 investors. IREIC, our sponsor, is a member company of Inland.

Our investment strategy is to acquire a diversified portfolio of stabilized, income-generating commercial real estate across alternative property types in the United States. We also to a lesser extent may invest in real estate debt and real estate-related securities to provide current income and a source of liquidity for the SRP, cash management and other purposes. We seek to create and maintain a portfolio of commercial real estate investments that generate stable income to enable us to pay attractive and stable cash distributions to our stockholders. We currently have no intention to make or acquire any investments outside the United States and may do so in the future only to the extent that any international investment is consistent with our overall investment strategy and specifically approved by our board of directors.

Our property investments will consist primarily of stabilized, income-generating commercial real estate across alternative property types, with a non-exclusive focus on self-storage facilities, student housing properties, and healthcare-related properties. Healthcare-related assets may include medical outpatient buildings, ambulatory surgery centers, senior living communities and life science and laboratory facilities. We may also invest in value-add or other development projects in these asset classes, potentially through a variety of ownership structures including but not limited to direct ownership, joint ventures, co-investment opportunities, preferred equity positions and others.

Our real estate debt strategy is focused on generating current income and contributing to our overall net returns. Alongside our credit facilities and operating cash flow, our real estate debt investments may provide an additional source of liquidity. These liquidity sources are collectively used for cash management, satisfying any stock repurchases under the SRP and other purposes.

**Investments in Real Estate**

To execute our investment strategy, we invest primarily in stabilized, income-generating commercial real estate within alternative sectors—self-storage, healthcare, and education (e.g., student housing). Our investments focus on cycle-resilient sectors with demographic-driven demand from increasing college enrollments, a more mobile society, and the growth of an aging population. In addition, self-storage facilities, student housing properties, and healthcare-related properties tend to be highly fragmented, making access and scalability difficult.

Alternative sectors have proven resilient through various macroeconomic cycles and outperformed in recent black swan events—the global financial crisis of 2008 and 2009 and the COVID-19 pandemic. The recipe for the success of these sectors was stable performance throughout market cycles driven by life events. Strong demographic tailwinds and life events may continue to benefit these sectors, resulting in attractive potential returns for investors.

While we do intend to focus our strategy on the self-storage, education, and healthcare sectors, other alternative sectors we may consider include manufactured housing, build-to-rent, life science and infrastructure. We may also invest elsewhere and opportunistically in the equity of public and private real estate-related companies. We may also acquire assets that require some amount of capital investment in order to be renovated or repositioned. We will generally limit investment in new developments on a standalone basis, but may consider development that is ancillary to an overall investment.

We do not designate specific geographical allocations for the portfolio; rather we intend to invest in regions or sectors where we see the best opportunities that support our investment objectives. However, we currently have no intention to make or acquire any investments outside the United States and may only do so in the future to the extent that any international investment is consistent with our overall investment strategy and specifically approved by our board of directors.

A primary source of proposed real estate investments will consist of Delaware statutory trusts ("DST") or other private investment programs sponsored by Inland Private Capital Corporation ("IPC"), an affiliate of our sponsor that was formed to provide replacement properties for investors wishing to complete a tax-deferred exchange under Section 1031 of the Code, as well as investors seeking a quality, multiple-owner real estate investment. These investments are expected to take the form of a transaction structured as a tax-deferred contribution of the property owned by the DST or other IPC-sponsored investment program to our Operating Partnership in

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exchange for OP Units under Section 721 of the Code. As part of this strategy, IPC has a program, which commenced on June 27, 2024 (the "DST Program"), through which it sponsors a series of private placements exempt from registration pursuant to Rule 506(b) of Regulation D under the Securities Act of beneficial interests in specific DSTs owning one or more real properties. In connection with the DST Program, the Operating Partnership receives a fair market value purchase option with respect to each DST, giving the Operating Partnership the option, but not the obligation, exercisable in the Operating Partnership's sole and absolute discretion, to require DST investors to exchange their DST interests for Class T OP Units, Class S OP Units, Class D OP Units, Class I OP Units, or, in limited circumstances at the discretion of the Operating Partnership, cash, which option may be exercised during the three, three-month periods that begin on the 24-month, 36-month and 48-month anniversary of the final closing of the sale of DST interests pursuant to each private placement.

**Investments in Real Estate Debt**

Our real estate debt strategy is focused on generating current income and contributing to our overall net returns. The type of real estate debt investments we may seek to acquire are obligations backed principally by real estate of the type that generally meets our criteria for direct investment. We may source, originate and manage a real estate debt portfolio consisting of subordinated mortgages, mezzanine loans, loan participations and other forms of debt investments made with respect to real estate and real estate-related assets as well as mortgage loans, bank loans, and other interests relating to real estate and debt of companies in the business of owning or operating real estate-related businesses. We do not intend to make loans to other persons or to engage in the purchase and sale of any types of investments other than those related to real estate.

**Investment in Real Estate-Related Securities**

To the extent we invest in real estate-related securities, such securities will serve as a cash management strategy before investing proceeds from the Offerings into longer-term real estate assets. In addition, we believe that, subject to applicable law, our real estate-related securities could be used, in part, to maintain appropriate liquidity levels in order to provide funds to satisfy repurchase requests under the SRP that we chose to satisfy in any particular month. Our securities portfolio will focus on agency and non-agency residential mortgage-backed securities, commercial mortgage-backed securities ("CMBS"), collateralized loan obligations ("CLOs"), collateralized debt obligations ("CDOs") and public equity real estate securities.

**Borrowing Policies**

We intend to use financial leverage to provide additional funds to support our investment activities. This allows us to make more investments than would otherwise be possible, resulting in a broader portfolio. Subject to the limitation on indebtedness for money borrowed in our charter described below, our target leverage ratio is approximately 60%. Our leverage ratio is measured by dividing (i) consolidated property-level and entity-level debt net of cash and loan-related restricted cash, by (ii) the asset value of real estate investments (measured using the greater of fair market value and cost) plus the equity in our settled real estate debt investments. There is, however, no limit on the amount we may borrow with respect to any individual property or portfolio. Indebtedness incurred (i) in connection with funding a deposit in advance of the closing of an investment or (ii) as other working capital advances, will not be included as part of the calculation above.

Our real estate debt portfolio may have embedded leverage through the use of reverse repurchase agreements and may also have embedded leverage through the use of derivatives, including, but not limited to, total return swaps, securities lending arrangements and credit default swaps. During times of increased investment and capital market activity, but subject to the limitation on indebtedness for money borrowed in our charter described below, we may employ greater leverage in order to quickly build a broader portfolio of assets. We may leverage our portfolio by assuming or incurring secured or unsecured property-level or entity-level debt.

Under our charter we may not incur indebtedness for money borrowed in an amount exceeding 300% of the cost of our net assets, which approximates borrowing 75% of the cost of our investments, unless any excess over this limit is approved by a majority of our independent directors, and disclosed to stockholders in our next quarterly report, along with justification for such excess. This limitation includes indebtedness for money borrowed with respect to our real estate debt portfolio.

**Taxation of the Company**

We elected to be taxed as a REIT under Sections 856 through 860 of the Code beginning with our taxable year ended December 31, 2024. Commencing with such taxable year, we were organized and began operating in such a manner as to qualify for taxation as a REIT under the Code. As a result, we generally will not be subject to federal corporate income tax to the extent we distribute at least 90% of our taxable income to our stockholders. REITs are subject to a number of other organizational and operational requirements. We will monitor the business and transactions that may potentially impact our REIT status. If we fail to qualify as a REIT in any taxable year, without the benefit of certain statutory relief provisions, we will be subject to federal and state income taxes on our taxable income as a "C corporation." Even if we qualify for taxation as a REIT, we may be subject to certain state and local taxes on our income, property or net worth and federal income and excise taxes on our undistributed income. The earnings of any taxable REIT subsidiaries generally will be subject to U.S. federal corporate income tax applicable to "C corporations."

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**Government Regulations**

As an owner of real estate, our operations are subject, in certain instances, to supervision and regulation by U.S. and other governmental authorities, and may be subject to various laws and judicial and administrative decisions imposing various requirements and restrictions, which include, among other things: (i) federal and state securities laws and regulations; (ii) federal, state and local tax laws and regulations, (iii) state and local laws relating to real property; (iv) federal, state and local environmental laws, ordinances, and regulations, and (v) various laws relating to housing, including permanent and temporary rent control and stabilization laws, the Americans with Disabilities Act of 1990 and the Fair Housing Amendment Act of 1988, among others.

Compliance with federal, state and local laws described above has not had a material adverse effect on our business, assets, results of operations, financial condition and ability to pay distributions, and we do not believe that our existing portfolio will require us to incur material expenditures to comply with these laws and regulations.

**Competition**

We face competition from various entities for investment opportunities, including other REITs, pension funds, insurance companies, investment funds and companies, partnerships and developers. In addition to third-party competitors, other programs sponsored by our Advisor and its affiliates, particularly those with investment strategies that may overlap with ours, may seek investment opportunities in accordance with Inland's policies and procedures.

**Human Capital**

We do not have any employees. All of our executive officers are officers of the Advisor or one or more of their affiliates and are compensated by those entities for their services rendered to us. We neither separately compensate our executive officers for their service as officers, nor do we reimburse the Advisor for any compensation paid to individuals who serve as our executive officers.

**Conflicts of Interest**

We are subject to various conflicts of interest arising out of our relationship with our Advisor and its affiliates. See Item 1A - "Risk Factors - Risks Related to Conflicts of Interest."

**Our Corporate Information**

Our principal executive offices are located at 2901 Butterfield Rd., Oak Brook, Illinois 60523, our telephone number is (630) 218-8000 and our website is *https://www.ipcaltreit.com.* From time to time, we may use our website as a distribution channel for material company information. Our website is not incorporated by reference in or otherwise a part of this Annual Report on Form 10-K. We will provide a copy of this Annual Report on Form 10-K, including financial statements and schedules, without charge upon written request delivered to our principal executive offices. We electronically file our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and all amendments to those reports with the SEC. The SEC maintains an Internet site at *www.sec.gov* that contains reports and information statements and other information regarding issuers that file electronically.

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**Item 1A. Risk Factors**

**Risks Related to Our Organizational Structure**

***We have a limited operating history, and there is no assurance that we will be able to achieve our investment objectives.***

We have a limited operating history and may not be able to achieve our investment objectives. We cannot assure you that the past experiences of the Advisor and its affiliates will be sufficient to allow us to successfully achieve our investment objectives. As a result, an investment in our shares of common stock entails more risk than the shares of common stock of a REIT with a substantial operating history.

***You will not have the opportunity to evaluate our future investments to be made through the Operating Partnership before we make them, which makes your investment more speculative.***

We are not able to provide you with any information to assist you in evaluating the merits of any specific properties or real estate-related securities that we may acquire in the future through the Operating Partnership with the proceeds of the Offerings, except for investments that may be described in one or more supplements to the prospectus for our Public Offering (as supplemented, the "Prospectus"). We will seek to invest substantially all of the net proceeds from the Offerings, after the payment of fees and expenses, in the Operating Partnership so that it may acquire additional interests in properties and real estate-related securities. However, because you will be unable to evaluate the economic merit of our Operating Partnership's future investments before we make them, you will have to rely entirely on the ability of our Advisor to select suitable and successful investment opportunities. Furthermore, our Advisor will have broad discretion in selecting the types of properties we will invest in through the Operating Partnership and the tenants of those properties, and you will not have the opportunity to evaluate potential investments. These factors increase the risk that your investment may not generate returns comparable to other real estate investment alternatives.

***There is currently no public trading market for shares of our common stock; therefore, your ability to dispose of your shares will likely be limited to repurchase by us. If you do sell your shares to us, you may receive less than the price you paid.***

There is no current public trading market for shares of our common stock, and we do not expect that such a market will ever develop. Therefore, repurchase of shares by us will likely be the only way for you to dispose of your shares, and such repurchases are limited by the SRP. We will repurchase shares at a price equal to the transaction price of the class of shares being repurchased on the date of repurchase (which will generally be equal to our prior month's NAV per share) and not based on the price at which you initially purchased your shares. Subject to limited exceptions, shares that have not been outstanding for at least one year will be repurchased at 95% of the transaction price. As a result, you may receive less than the price you paid for your shares when you sell them to us pursuant to the SRP.

***Your ability to have your shares repurchased through the SRP is limited. We may choose to repurchase fewer shares than have been requested to be repurchased, in our discretion at any time, and the amount of shares we may repurchase is subject to limitations. Further, our board of directors may make exceptions to, modify or suspend the SRP if it deems such action to be in our best interest.***

We may choose to repurchase fewer shares than have been requested in any particular month to be repurchased under the SRP, or none at all, in our discretion at any time. We may repurchase fewer shares than have been requested to be repurchased due to lack of readily available funds, the need to maintain liquidity for our operations or because we have determined that investing in real property or other illiquid investments is a better use of our capital than repurchasing our shares. In addition, the aggregate NAV of total repurchases (including repurchases at certain non-U.S. investor access funds primarily created to hold shares of our common stock but excluding any Early Repurchase Deduction applicable to the repurchased shares) is limited, in any calendar month, to no more than 2% of our aggregate NAV (measured using the aggregate NAV as of the end of the immediately preceding month) and, in any calendar quarter, to shares whose aggregate value is no more than 5% of our aggregate NAV (measured using the average aggregate NAV at the end of the immediately preceding three months). Further, our board of directors may make exceptions to, modify or suspend the SRP if in its reasonable judgment it deems such action to be in our best interest. Although the SRP may be suspended for an indefinite amount of time, our board of directors will not terminate the SRP unless shares of our common stock are listed on a national securities exchange or unless required by law. If the full amount of all shares of our common stock requested to be repurchased in any given month are not repurchased, funds will be allocated pro rata based on the total number of shares of common stock being repurchased without regard to class and subject to the volume limitation. All unsatisfied repurchase requests must be resubmitted after the start of the next month or quarter, or upon the recommencement of the SRP, as applicable. We have also adopted a policy that requires the affiliate transaction committee to approve any repurchase request of the Advisor for Class I shares received as payment for the management fee that, when combined with any stockholder repurchase requests submitted through the SRP, would cause us to exceed the 2% monthly or 5% quarterly repurchase limitations of the SRP. Such approval must find that the repurchase will not impair our capital or operations and is consistent with the fiduciary duties of our independent directors.

The vast majority of our assets will consist of properties that cannot generally be readily liquidated without impacting our ability to realize full value upon their disposition. Therefore, we may not always have a sufficient amount of cash to satisfy repurchase requests. Should repurchase requests, in our judgment, place an undue burden on our liquidity, adversely affect our operations or risk having an

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adverse impact on the Company as a whole, or should we otherwise determine that investing our liquid assets in real properties or other illiquid investments rather than repurchasing our shares is in the best interests of the Company as a whole, then we may choose to repurchase fewer shares than have been requested to be repurchased, or none at all. Because we are not required to authorize the recommencement of the SRP within any specified period of time, we may effectively terminate the plan by suspending it indefinitely. As a result, your ability to have your shares repurchased by us may be limited and at times you may not be able to liquidate your investment.

***Cash redemptions to holders of OP Units will reduce cash available for distribution to our stockholders or to honor their redemption requests under our share redemption program.***

After the applicable holding period, holders of units of our Operating Partnership will generally have the right to cause the Operating Partnership to redeem all or a portion of such units for, at our sole discretion, shares of our common stock or cash. Our election to redeem OP Units for cash may reduce funds available for distribution to our stockholders or to honor our stockholders' redemption requests under our share redemption program. If a significant number of such unitholders seek to redeem such units, our cash flow could be materially adversely affected. We will have an ongoing need to provide liquidity for such redemptions, which we may seek to provide by drawing on a line of credit or by using our net proceeds to fund such redemptions, which could increase our financial leverage ratio or reduce our net proceeds available for other purposes, respectively.

***Economic events that may cause our stockholders to request that we repurchase their shares may materially adversely affect our cash flow and our results of operations and financial condition***.

Events affecting economic conditions in the United States and/or elsewhere or globally, such as the general negative performance of the real estate sector (including as a result of inflation or heightened interest rates), market volatility, trade conflict, civil unrest, national and international security events, geopolitical events, military conflicts and war (including, conflicts in South America, the Middle East and Ukraine), extreme weather events (including climate change, hurricanes, wild fires, earthquakes or floods) or the spread of infectious illnesses, pandemics or other health emergencies, could cause our stockholders to seek the repurchase of their shares pursuant to the SRP at a time when such events are adversely affecting the performance of our assets. Even if we decide to satisfy all resulting repurchase requests, our cash flow and liquidity could be materially adversely affected, and we may incur additional leverage. In addition, if we determine to sell assets to satisfy repurchase requests, we may not be able to realize the return on such assets that we may have been able to achieve had we sold at a more favorable time, and our results of operations and financial condition could be materially adversely affected.

In addition, stockholders have and may continue to seek to repurchase some or all of the shares of our common stock that they hold. A significant volume of repurchase requests in a given period of time may cause requests to exceed the 2% monthly and 5% quarterly limits under the SRP, resulting in less than the full amount of repurchase requests being satisfied in such period.

***Our Advisor manages our portfolio pursuant to very broad investment guidelines and is not required to seek the approval of our board of directors for each investment, financing or asset allocation decision made by it, which may result in our making riskier investments and which could adversely affect our results of operations.***

Our board of directors approved very broad investment guidelines that delegate to our Advisor the authority to execute acquisitions and dispositions of real estate and real estate-related securities on our behalf, in each case so long as such delegation and such investments are consistent with our board-approved investment guidelines, our charter and Maryland law. Our board of directors will review our investment guidelines on an annual basis (or more often as it deems appropriate) and review our investment portfolio periodically. Transactions entered into on our behalf by our Advisor may be costly, difficult or impossible to unwind when they are subsequently reviewed by our board of directors.

***We face risks associated with the deployment of our capital.***

In light of the nature of our continuous offerings, there could be a delay between the time we receive net proceeds from the sale of shares of our common stock in the Offerings and the time we invest the net proceeds. Pending investment, we may hold large amounts of cash in money market accounts or similar temporary investments, which are subject to management fees.

It is not anticipated that the temporary investment of such cash into money market accounts or other similar temporary investments pending deployment into investments will generate significant interest, and investors should understand that such low interest payments on the temporarily invested cash may adversely affect overall returns. In the event we fail to timely invest the net proceeds of sales of our common stock or do not deploy sufficient capital to meet our targeted leverage, our results of operations and financial condition may be adversely affected.

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***If we are unable to raise substantial funds, we will be limited in the number and type of investments we make, and the value of your investment in us will be more dependent on the performance of any of the specific assets we acquire.***

The Offerings are being made on a "best efforts" basis, meaning Inland Securities Corporation, our Dealer Manager, is only required to use its best efforts to sell our shares and has no firm commitment or obligation to purchase any shares. As a result, the amount of proceeds we raise in the Offerings may be substantially less than the amount we would need to achieve a broader portfolio of investments. If we are unable to raise substantial funds, we will make fewer investments, resulting in less breadth in terms of the type, number, geography and size of investments that we make. In that case, the likelihood that any single asset's performance would adversely affect our profitability will increase. There is a greater risk that you will lose money in your investment if we have less breadth in our portfolio. Further, we will have certain fixed operating expenses, including expenses of being a public reporting company, regardless of whether we are able to raise substantial funds. Our inability to raise substantial funds would increase our fixed operating expenses as a percentage of gross income, reducing our net income and limiting our ability to make distributions.

***If we quickly raise a substantial amount of capital, we may have difficulty investing it in a timely manner.***

If we quickly raise capital during the Offerings, we may have difficulty identifying and purchasing suitable investments on attractive terms. Therefore, there could be a delay between the time we receive net proceeds from the sale of shares of our common stock in the Offerings and the time we invest the net proceeds. This could cause a substantial delay in the time it takes for your investment to generate returns and could adversely affect our ability to pay regular distributions of cash flow from operations. If we fail to invest the net proceeds of the Offerings promptly, our results of operations and financial condition may be adversely affected.

***We may change our investment and operational policies without stockholder consent.***

Except for changes to the investment restrictions contained in our charter, which require stockholder consent to amend, we may change our investment and operational policies, including our policies with respect to investments, operations, indebtedness, capitalization and distributions, at any time without the consent of our stockholders, which could result in our making investments that are different from, and possibly riskier or more highly leveraged than, the types of investments described in the Prospectus. Our board of directors approved very broad investment guidelines with which we must comply, but these guidelines provide our Advisor with broad discretion and can be changed by our board of directors. A change in our investment strategy may, among other things, increase our exposure to real estate market fluctuations, default risk and interest rate risk, all of which could materially affect our results of operations and financial condition.

***The amount and source of distributions we may make to our stockholders is uncertain, and we may be unable to generate sufficient cash flows from our operations to make distributions to our stockholders at any time in the future.***

We have not established a minimum distribution payment level, and our ability to make distributions to our stockholders may be adversely affected by a number of factors, including the risk factors described herein. Because we currently have a limited number of properties, we may not generate sufficient income to make distributions to our stockholders. Our board of directors will make determinations regarding distributions based upon, among other factors, our financial performance, debt service obligations, debt covenants, REIT qualification and tax requirements and capital expenditure requirements. Among the factors that could impair our ability to make distributions to our stockholders are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our inability to invest the proceeds from sales of our shares on a timely basis in income-generating properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our inability to generate sufficient income from our investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•high levels of repurchase requests under the SRP for a prolonged period of time, which could lead to the disposition of investments to generate liquidity to satisfy repurchase requests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•high levels of expenses or reduced revenues that reduce our cash flow or non-cash earnings; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•defaults in our investment portfolio or decreases in the value of our investments.

As a result, we may not be able to make distributions to our stockholders at any time in the future, and the level of any distributions we do make to our stockholders may not increase or even be maintained over time, any of which could materially and adversely affect the value of your investment.

***We may fund distributions from sources other than our cash flow from operations, including, without limitation, borrowings, offering proceeds or the sale of our assets, and we have no limits on the amounts we may pay from such sources.***

We may not generate sufficient cash flow from operations to fully fund distributions to stockholders. Therefore, we may fund distributions to our stockholders from sources other than cash flow from operations, including, without limitation, borrowings, offering proceeds or the sale of our assets. The extent to which we fund distributions from sources other than cash flow from operations will depend on various factors, including the level of participation in the DRP, the extent to which our Advisor elects to receive its management fee in Class I shares or Class I OP Units, the extent to which IPC REIT Special Limited Partner, LP (the "Special Limited Partner") elects to receive distributions on its performance participation allocations in Class I OP Units, how quickly we invest the proceeds from the current and any future offerings and the performance of our investments. Although we cannot predict the amount of

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future distributions or their sources of funding, the funding of distributions from the proceeds from the Offerings or borrowings would likely cause our NAV per share to be lower than it otherwise would be and would likely not be sustainable for an extended period. Funding distributions from borrowings, offering proceeds or the sale of or repayment of our assets will result in us having less funds available to acquire properties or other real estate-related securities. As a result, the return you realize on your investment may be reduced. Funding distributions from such sources may also negatively impact our ability to generate cash flows. Likewise, funding distributions from the sale of additional securities will dilute your interest in us on a percentage basis and may impact the value of your investment especially if we sell these securities at prices less than the price you paid for your shares. We may be required to continue to fund our regular distributions from a combination of some of these sources if our investments fail to perform, if expenses are greater than our revenues or due to numerous other factors. We have not established a limit on the amount of our distributions that may be funded from any of these sources.

To the extent we borrow funds to pay distributions, we would incur borrowing costs and these borrowings would require a future repayment. The use of these sources for distributions and the ultimate repayment of any liabilities incurred could adversely impact our ability to pay distributions in future periods, decrease our NAV, decrease the amount of cash we have available for operations and new investments and adversely impact the value of your investment.

We may also defer operating expenses or pay expenses (including the fees of our Advisor or distributions to the Special Limited Partner if so requested by them) with shares of our common stock or OP Units in order to preserve cash flow for the payment of distributions. The ultimate repayment of these deferred expenses could adversely affect our operations and reduce the future return on your investment. We may repurchase shares or redeem OP Units from our Advisor or the Special Limited Partner shortly after issuing such units or shares as compensation. The payment of expenses in shares of our common stock or with OP Units will dilute your ownership interest in our portfolio of assets. There is no guarantee any of our operating expenses will be deferred and our Advisor and Special Limited Partner are under no obligation to receive future fees or distributions in shares of our common stock or OP Units and may elect to receive such amounts in cash.

***Purchases and repurchases of shares of our common stock are generally made based on the prior month's NAV per share of our common stock.***

Generally, our offering price per share and the price at which we make repurchases of our shares will equal the NAV per share of the applicable class as of the last calendar day of the prior month, plus, in the case of our offering price, applicable upfront selling commissions and dealer manager fees. The NAV per share, if calculated as of the date on which you make your subscription request or repurchase request, may be significantly different than the transaction price you pay or the repurchase price you receive. Certain of our investments or liabilities may be subject to high levels of volatility from time to time and could change in value significantly between the end of the prior month as of which our NAV is determined and the date that you acquire or repurchase our shares; however the prior month's NAV per share will generally continue to be used as the transaction price per share and repurchase price per share.

***Valuations and appraisals of our real estate and real estate-related investments are estimates of fair value and may not necessarily correspond to realizable value.***

For the purposes of calculating our monthly NAV, our properties will generally initially be valued at cost, which we expect to represent fair value at that time. Each property will then be valued by an independent third-party appraisal firm within the first full calendar quarter after acquisition and no less frequently than annually thereafter. Our independent valuation advisor will update the valuations of our properties monthly, based on the then most recent annual third-party appraisals and current material market data and other information deemed relevant. Investments in real estate debt and other securities with readily available market quotations will be valued monthly at fair market value. Certain investments, such as mortgages and mezzanine loans, are unlikely to have market quotations. In the case of loans acquired by us, such initial value will generally be the acquisition price of such loan. In the case of loans originated by us, such initial value will generally be the par value of such loan. Each such investment will then be valued by an independent third party within the first three full months after we invest in such investment and no less than quarterly thereafter. Additionally, material market data and other information that becomes available after the end of the applicable month may be considered in the valuation of our assets and liabilities and calculating our NAV for a particular month.

Although monthly reviews of each of our real property valuations will be performed by our independent valuation advisor, such valuations are based, in part, on asset- and portfolio-level information provided by our Advisor, including historical operating revenues and expenses of the properties, lease agreements on the properties, revenues and expenses of the properties, information regarding recent or planned capital expenditures and other information relevant to valuing the real property, which information will not be independently verified by our independent valuation advisor.

Within the parameters of our valuation guidelines, the valuation methodologies used to value our properties and certain of our investments will involve subjective judgments and projections and may not be accurate. Valuation methodologies will also involve assumptions and opinions about future events, which may or may not turn out to be correct. Valuations and appraisals of our properties and other investments will be only estimates of fair value. Ultimate realization of the value of an asset depends to a great extent on

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economic, market and other conditions beyond our control and the control of our Advisor. Further, valuations do not necessarily represent the price at which an asset would sell, since market prices of assets can only be determined by negotiation between a willing buyer and seller. As such, the carrying value of an asset may not reflect the price at which the asset could be sold in the market, and the difference between carrying value and the ultimate sales price could be material. In addition, accurate valuations are more difficult to obtain in times of low transaction volume because there are fewer market transactions that can be considered in the context of the appraisal. There will be no retroactive adjustment in the valuation of such assets, the offering price of our shares of common stock, the price we paid to repurchase shares of our common stock or NAV-based fees we paid to our Advisor and the Dealer Manager to the extent such valuations prove not to reflect accurately the realizable value of our assets. Because the price you will pay for shares of our common stock in the Offerings, and the price at which your shares may be repurchased by us pursuant to the SRP are generally our prior month's NAV per share for the applicable share class, you may pay more than realizable value or receive less than realizable value for your investment.

***Our NAV per share amounts may change materially if the appraised values of our properties materially change from prior appraisals or the actual operating results for a particular month differ from what we originally budgeted for that month.***

We anticipate that the annual appraisals of our properties will be conducted on a rolling basis, such that properties may be appraised at different times but each property would be appraised at least annually. When these appraisals are reflected in our NAV calculations, there may be a material change in our NAV per share amounts for each class of our common stock from those previously reported. In addition, actual operating results for a given month may differ from what we originally budgeted for that month, which may cause a material increase or decrease in the NAV per share amounts. We will not retroactively adjust the NAV per share of each class reported for the previous month. Therefore, because a new annual appraisal may differ materially from the prior appraisal or the actual results from operations may be better or worse than what we previously budgeted for a particular month, the adjustment to reflect the new appraisal or actual operating results may cause the NAV per share for each class of our common stock to increase or decrease, and such increase or decrease will occur for the month the adjustment is made.

***It may be difficult to reflect, fully and accurately, material events that may impact our monthly NAV.***

The determination of our monthly NAV per share will be based in part on appraisals of each of our properties provided annually by independent third-party appraisal firms in individual appraisal reports reviewed by our independent valuation advisor and monthly valuations of our real estate debt and other securities for which market prices are not readily available provided by our Advisor, each in accordance with valuation guidelines approved by our board of directors. As a result, our published NAV per share in any given month may not fully reflect any or all changes in value that may have occurred since the most recent appraisal or valuation. Our independent valuation advisor will review appraisal reports, and an independent third party will review our real estate debt and is responsible for notifying the independent valuation advisor of the occurrence of any property-specific or market-driven event it believes may cause a material valuation change in the real estate valuation. It may be difficult to reflect fully and accurately rapidly changing market conditions or material events that may impact the value of our real estate and real estate debt or liabilities between valuations, or to obtain complete information regarding any such events in a timely manner. For example, an unexpected termination or renewal of a material lease, a material increase or decrease in vacancies or an unanticipated structural or environmental event at a property may cause the value of a property to change materially, yet obtaining sufficient relevant information after the occurrence has come to light or analyzing fully the financial impact of such an event may be difficult to do and may require some time. As a result, the NAV per share may not reflect a material event until such time as sufficient information is available and analyzed, and the financial impact is fully evaluated, such that our NAV may be appropriately adjusted in accordance with our valuation guidelines. Depending on the circumstance, the resulting potential disparity in our NAV may be in favor or to the detriment of either stockholders whose shares we repurchase, or stockholders who buy new shares.

***NAV calculations are not governed by governmental or independent securities, financial or accounting rules or standards.***

The methods used to calculate our NAV, including the components used in calculating our NAV, are not prescribed by rules of the SEC or any other regulatory agency. Further, there are no accounting rules or standards that prescribe which components should be used in calculating NAV, and our NAV is not audited by our independent registered public accounting firm. We calculate and publish NAV solely for purposes of establishing the price at which we sell and repurchase shares of our common stock, and you should not view our NAV as a measure of our historical or future financial condition or performance. The components and methodology used in calculating our NAV may differ from those used by other companies now or in the future.

In addition, calculations of our NAV, to the extent that they incorporate valuations of our assets and liabilities, are not prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). These valuations may differ from liquidation values that could be realized in the event that we were forced to sell assets.

You should carefully review the disclosure of our valuation policies and how NAV will be calculated under "Net Asset Value Calculation and Valuation Guidelines," included as Exhibit 4.3 to this Annual Report on Form 10-K.

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***Our UPREIT structure may result in potential conflicts of interest with limited partners in our Operating Partnership whose interests may not be aligned with those of our stockholders.***

Our directors and officers have duties to our corporation and our stockholders under Maryland law and our charter in connection with their management of the corporation. At the same time, we, as general partner, have fiduciary duties under Delaware law to our Operating Partnership and to the limited partners in connection with the management of our Operating Partnership. Our duties as general partner of our Operating Partnership and its partners may come into conflict with the duties of our directors and officers to the corporation and our stockholders. Under Delaware law, a general partner of a Delaware limited partnership owes its limited partners the duties of good faith and fair dealing. Other duties, including fiduciary duties, may be modified or eliminated in the partnership's partnership agreement. The partnership agreement of our Operating Partnership provides that, for so long as we own a controlling interest in our Operating Partnership, any conflict that cannot be resolved in a manner not adverse to either our stockholders or the limited partners may be resolved in favor of our stockholders.

Additionally, to the extent permitted by our charter, the partnership agreement expressly limits our liability, and provides for our indemnification, by providing that we and our officers, directors, employees and designees will not be liable to, and will be indemnified by, our Operating Partnership for losses of any nature unless it is established that: (1) the act or omission was material to the matter giving rise to the proceeding and was committed in bad faith, was the result of active and deliberate dishonesty or constituted willful misconduct or gross negligence; (2) the indemnified party received an improper personal benefit in money, property or services; or (3) in the case of a criminal proceeding, the indemnified person had reasonable cause to believe that the act or omission was unlawful.

The provisions of Delaware law that allow the fiduciary duties of a general partner to be modified by a partnership agreement have not been tested in a court of law, and we have not obtained an opinion of counsel covering the provisions set forth in the partnership agreement that purport to waive or restrict our fiduciary duties.

***Payments to our Advisor or the Special Limited Partner in the form of common stock or OP Units they elect to receive in lieu of fees or distributions will dilute future cash available for distribution to our stockholders.***

Our Advisor or the Special Limited Partner may choose to receive our common stock or OP Units in lieu of certain fees or distributions. The holders of all OP Units are entitled to receive cash from operations pro rata with the distributions being paid to us and such distributions to the holders of the OP Units will reduce the cash available for distribution to us and to our stockholders. Furthermore, under certain circumstances the OP Units held by our Advisor or the Special Limited Partner are required to be repurchased, in cash at the holder's election, and there may not be sufficient cash to make such a repurchase payment; therefore, we may need to use cash from operations, borrowings, proceeds from the Offerings or other sources to make the payment, which will reduce cash available for distribution or for investment in our operations. Repurchases of our shares or OP Units from our Advisor paid to our Advisor as a management fee are not subject to the monthly and quarterly volume limitations or the Early Repurchase Deduction, and such sales receive priority over other shares being put for repurchase during such period. Repurchases of our shares or OP Units from the Special Limited Partner distributed to the Special Limited Partner with respect to its performance participation allocations are not subject to the Early Repurchase Deduction, but such repurchases are subject to the monthly and quarterly volume limitations and do not receive priority over other shares being put for repurchase during such period. Notwithstanding the foregoing, we have adopted a policy that requires the affiliate transaction committee to approve any repurchase request of the Advisor for Class I shares received as payment for the management fee that, when combined with any stockholder repurchase requests submitted through the SRP, would cause us to exceed the 2% monthly or 5% quarterly repurchase limitations of the SRP. Such approval must find that the repurchase will not impair our capital or operations and is consistent with the fiduciary duties of our independent directors.

***Our board of directors may, in the future, adopt certain measures under Maryland law without stockholder approval that may have the effect of making it less likely that a stockholder would receive a "control premium" for his or her shares.***

Corporations organized under Maryland law with a class of securities registered under the Securities Exchange Act of 1934, as amended (the "Exchange Act") and at least three independent directors are permitted to elect to be subject, by a charter or bylaw provision or a resolution of its board of directors and notwithstanding any contrary charter or bylaw provision, to any or all of five provisions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•staggering the board of directors into three classes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•requiring a two-thirds vote of stockholders to remove directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•providing that only the board of directors can fix the size of the board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•providing that all vacancies on the board, regardless of how the vacancy was created, may be filled only by the affirmative vote of a majority of the remaining directors in office and for the remainder of the full term of the class of directors in which the vacancy occurred; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•providing for a majority requirement for the calling by stockholders of a special meeting of stockholders.

These provisions may discourage an extraordinary transaction, such as a merger, tender offer or sale of all or substantially all of our assets, all of which might provide a premium price for stockholders' shares. In our charter, we have elected that vacancies on our board of directors be filled only by the remaining directors and for the remainder of the full term of the directorship in which the vacancy

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occurred. Through other provisions in our charter and bylaws, we vest in our board of directors the exclusive power to fix the number of directorships, provided that the number is not less than three. We have not elected to be subject to any of the other provisions described above, but our charter does not prohibit our board of directors from opting into any of these provisions in the future.

We will not elect to be subject to any provision of Subtitle 8 of Title 3 of the Maryland General Corporation Law (the "MGCL") if doing so would adversely affect the rights, preferences and privileges of stockholders unless each election would be of no force or effect following a vote of the stockholders to ratify such election if such vote failed to garner the approval of a majority of the outstanding shares entitled to vote on the matter. We will use our best efforts to hold such stockholders' meetings as soon as possible following such election but may adjourn or postpone the meeting to solicit additional votes if at the time of such adjournment or postponement a majority of the shares represented by proxy have indicated support for such election.

Further, under the Maryland Business Combination Act, we may not engage in any merger or other business combination with an "interested stockholder" (which is defined as (1) any person who beneficially owns, directly or indirectly, 10% or more of the voting power of our outstanding voting stock and (2) an affiliate or associate of ours who, at any time within the two-year period prior to the date in question, was the beneficial owner, directly or indirectly, of 10% or more of the voting power of our then outstanding stock) or any affiliate of that interested stockholder for a period of five years after the most recent date on which the interested stockholder became an interested stockholder. A person is not an interested stockholder if our board of directors approved in advance the transaction by which such stockholder would otherwise have become an interested stockholder. In approving a transaction, our board of directors may provide that its approval is subject to compliance, at or after the time of approval, with any terms or conditions determined by our board of directors. After the five-year period ends, any merger or other business combination with the interested stockholder or any affiliate of the interested stockholder must be recommended by our board of directors and approved by the affirmative vote of at least:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•80% of all votes entitled to be cast by holders of outstanding shares of our voting stock; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•two-thirds of all of the votes entitled to be cast by holders of outstanding shares of our voting stock other than those shares owned or held by the interested stockholder with whom or with whose affiliate the business combination is to be effected or held by an affiliate or associate of the interested stockholder.

These supermajority voting provisions do not apply if, among other things, our stockholders receive a minimum price (as defined in the MGCL) for their common stock and the consideration is received in cash or in the same form as previously paid by the interested stockholder.

The statute permits various exemptions from its provisions, including business combinations that are exempted by our board of directors prior to the time the interested stockholder becomes an interested stockholder. Our board of directors has adopted a resolution exempting any business combination involving us and any person, including Inland, the Dealer Manager and our Advisor, from the provisions of this law, provided that such business combination is first approved by our board of directors; however, our board may revoke this exemption at any time.

***Our charter permits our board of directors to authorize us to issue preferred stock on terms that may subordinate the rights of the holders of our current common stock or discourage a third party from acquiring us.***

Our board of directors is permitted, subject to certain restrictions set forth in our charter, to authorize the issuance of shares of preferred stock without stockholder approval. Further, our board of directors may classify or reclassify any unissued shares of common or preferred stock into other classes or series of stock and establish the preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends and other distributions, qualifications, and terms or conditions of redemption of the stock and may amend our charter from time to time to increase or decrease the aggregate number of shares or the number of shares of any class or series that we have authority to issue without stockholder approval. Thus, our board of directors could authorize us to issue shares of preferred stock with terms and conditions that could subordinate the rights of the holders of our common stock or have the effect of delaying, deferring or preventing a change in control of us, including an extraordinary transaction such as a merger, tender offer or sale of all or substantially all of our assets, that might provide a premium price for holders of our common stock.

***Maryland law and our organizational documents limit our rights and the rights of our stockholders to recover claims against our directors and officers, which could reduce your and our recovery against them if they cause us to incur losses.***

Maryland law provides that a director will not have any liability as a director so long as he or she performs his or her duties in accordance with the applicable standard of conduct. In addition, our charter generally limits the personal liability of our directors and officers for monetary damages subject to the limitations of the North American Securities Administrators Association's Statement of Policy Regarding Real Estate Investment Trusts, as revised and adopted on May 7, 2007 (the "NASAA REIT Guidelines") and Maryland law. Maryland law and our charter provide that no director or officer shall be liable to us or our stockholders for monetary damages unless the director or officer (1) actually received an improper benefit or profit in money, property or services or (2) was actively and deliberately dishonest as established by a final judgment as material to the cause of action. Moreover, our charter generally requires us to indemnify and advance expenses to our directors and officers for losses they may incur by reason of their service in those capacities

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unless their act or omission was material to the matter giving rise to the proceeding and was committed in bad faith or was the result of active and deliberate dishonesty, they actually received an improper personal benefit in money, property or services or, in the case of any criminal proceeding, they had reasonable cause to believe the act or omission was unlawful. Further, we have entered into separate indemnification agreements with each of our officers and directors. As a result, you and we may have more limited rights against our directors or officers than might otherwise exist under common law, which could reduce your and our recovery from these persons if they act in a manner that causes us to incur losses. In addition, we are obligated to fund the defense costs incurred by these persons in some cases. However, our charter provides that we may not indemnify our directors or officers, or our Advisor and its affiliates, for any liability or loss suffered by them or hold our directors or officers, our Advisor and its affiliates harmless for any liability or loss suffered by us, unless they have determined, in good faith, that the course of conduct that caused the loss or liability was in our best interests, they were acting on our behalf or performing services for us, the liability or loss was not the result of negligence or misconduct by our non-independent directors, our Advisor and its affiliates, or gross negligence or willful misconduct by our independent directors, and the indemnification or agreement to hold harmless is recoverable only out of our net assets and not from the stockholders.

***Your interest in us will be diluted if we issue additional shares. Your interest in our assets will also be diluted if the Operating Partnership issues additional units.***

Holders of our common stock will not have preemptive rights to any shares we issue in the future. Our charter authorizes us to issue up to 2,200,000,000 shares of capital stock, of which 2,100,000,000 shares are classified as common stock, of which 400,000,000 shares are classified as Class T shares, 400,000,000 shares are classified as Class S shares, 400,000,000 shares are classified as Class D shares, 400,000,000 shares are classified as Class I shares, 200,000,000 shares are classified as Class X-1 shares, 200,000,000 shares are classified as Class X-2 shares and 100,000,000 shares are classified as Class A shares, and 100,000,000 shares are classified as preferred stock. We have issued shares in a private offering, have issued OP Units to holders other than the Company and expect to issue additional shares in private offerings and OP Units in the future. In addition, our board of directors may amend our charter from time to time to increase or decrease the aggregate number of authorized shares of capital stock or the number of authorized shares of capital stock of any class or series without stockholder approval. After you purchase shares of our common stock in the Offerings, our board of directors may elect, without stockholder approval, to: (1) sell additional shares in this or future public offerings; (2) issue shares of our common stock or units in our Operating Partnership in private offerings; (3) issue shares of our common stock or units in our Operating Partnership upon the exercise of the options we may grant to our independent directors or future employees; or (4) issue shares of our common stock or units in our Operating Partnership to sellers of properties we acquire. In particular, issuing units in our Operating Partnership to sellers of properties we acquire has been and will continue to be a significant aspect of our investment strategy. Each such issuance will dilute your interest in us and our assets. In addition, we may be obligated to issue shares of our common stock or units in our Operating Partnership to our Advisor or the Special Limited Partner, or their successors or assigns, in payment of an outstanding obligation to pay fees for services rendered to us or the performance participation allocations. To the extent we issue additional shares of common stock after your purchase in the Offerings, your percentage ownership interest in us will be diluted. Because we will hold all of our assets through the Operating Partnership, to the extent we issue additional units of our Operating Partnership after you purchase in the Offerings, your percentage ownership interest in our assets will be diluted. Because certain classes of the units of our Operating Partnership may, in the discretion of our board of directors, be exchanged for shares of our common stock, any issuance of units in our Operating Partnership could result in the issuance of a corresponding number of shares of our common stock, thereby diluting the percentage ownership interest of other stockholders. Because of these and other reasons, our stockholders may experience substantial dilution in their percentage ownership of our shares or their interests in the underlying assets held by our Operating Partnership. OP Units may have different and preferential rights to the claims of common units of our Operating Partnership which correspond to the common stock held by our stockholders. Certain units in our Operating Partnership may have different and preferential rights to the terms of the common OP Units which correspond to the common stock held by our stockholders.

***The net tangible book value of your shares will be substantially below the price you pay for them, thus increasing the risk of a loss on your investment.***

We will incur substantial organization and offering expenses. Although the net asset value of our shares will only be affected by this liability as it is paid, the net tangible book value of our shares is a GAAP figure and must reflect the full amount of the liability. As a result, the net tangible book value of your shares will be less than the amount you paid for them. Moreover, purchasers of Class T, S and D shares will have to pay an upfront commission for their shares, further widening the spread between your purchase price and the net tangible book value of your shares. These factors increase the risk of loss on your investment.

***Our bylaws designate the Circuit Court for Baltimore City, Maryland or, if that court does not have jurisdiction, the United States District Court for the District of Maryland, Baltimore Division, as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by our stockholders, which could limit our stockholders' ability to obtain a favorable judicial forum for disputes with us or our directors, officers or employees.***

Our bylaws provide that, unless we consent in writing to the selection of an alternative forum, the Circuit Court for Baltimore City, Maryland or, if that court does not have jurisdiction, the United States District Court for the District of Maryland, Baltimore Division, shall be the sole and exclusive forum for certain types of actions and proceedings that may be initiated by our stockholders with respect

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***We will not be required to comply with certain reporting requirements, including those relating to auditor's attestation reports on the effectiveness of our system of internal control over financial reporting, accounting standards and disclosure about our executive compensation, that apply to other public companies.***

The Jumpstart Our Business Startups Act of 2012 (the "JOBS Act") contains provisions that, among other things, relax certain reporting requirements for emerging growth companies, including certain requirements relating to accounting standards and compensation disclosure. We are classified as an emerging growth company. For as long as we are an emerging growth company, which may be up to five full fiscal years, unlike other public companies, we will not be required to (1) provide an auditor's attestation report on the effectiveness of our system of internal control over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act, (2) comply with any new or revised financial accounting standards applicable to public companies until such standards are also applicable to private companies under Section 102(b)(1) of the JOBS Act, (3) comply with any new requirements adopted by the Public Company Accounting Oversight Board ("PCAOB") requiring mandatory audit firm rotation or a supplement to the auditor's report in which the auditor would be required to provide additional information about the audit and the financial statements of the issuer, (4) comply with any new audit rules adopted by the PCAOB after April 5, 2012 unless the SEC determines otherwise, (5) provide certain disclosure regarding executive compensation required of larger public companies or (6) hold stockholder advisory votes on executive compensation.

Once we are no longer an emerging growth company, so long as our shares of common stock are not traded on a securities exchange, we will be deemed to be a "non-accelerated filer" under the Exchange Act, and as a non-accelerated filer, we will be exempt from compliance with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act. In addition, so long as we are externally managed by our Advisor and we do not directly compensate our executive officers, or reimburse our Advisor or its affiliates for salaries, bonuses, benefits and severance payments for persons who also serve as one of our executive officers or as an executive officer of our Advisor, we do not have any executive compensation, making the exemptions listed in (5) and (6) above generally inapplicable.

We cannot predict if investors will find our common stock less attractive because we choose to rely on any of the exemptions discussed above.

As noted above, under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards that have different effective dates for public and private companies until such time as those standards apply to private companies. We have elected to opt out of this transition period, and will therefore comply with new or revised accounting standards on the applicable dates on which the adoption of these standards is required for non-emerging growth companies. This election is irrevocable.

***Your investment return may be reduced if we are required to register as an investment company under the Investment Company Act.***

We intend to continue to conduct our operations so that neither we, nor our Operating Partnership nor the subsidiaries of our Operating Partnership are investment companies under the Investment Company Act of 1940, as amended (the "Investment Company Act"). However, there can be no assurance that we and our subsidiaries will be able to successfully avoid operating as an investment company.

A change in the value of any of our assets could negatively affect our ability to maintain our exclusion from regulation under the Investment Company Act. To maintain compliance with the applicable exclusion under the Investment Company Act, we may be unable to sell assets we would otherwise want to sell and may need to sell assets we would otherwise wish to retain. In addition, we may have to acquire additional assets that we might not otherwise have acquired or may have to forego opportunities to acquire assets that we would otherwise want to acquire and would be important to our investment strategy.

If we were required to register as an investment company but failed to do so, we would become subject to substantial regulation with respect to our capital structure (including our ability to use borrowings), management, operations, transactions with affiliated persons (as defined in the Investment Company Act), and portfolio composition, including disclosure requirements and restrictions with respect to diversification and industry concentration, and other matters. Compliance with the Investment Company Act would, accordingly,

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limit our ability to make certain investments and require us to restructure our business plan, which could materially adversely affect our NAV and our ability to pay distributions to our stockholders.

***We depend on our Advisor to develop appropriate systems and procedures to control operational risk.***

Operational risks arising from mistakes made in the confirmation or settlement of transactions, from transactions not being properly booked, evaluated or accounted for or other similar disruption in our operations may cause us to suffer financial losses, the disruption of our business, liability to third parties, regulatory intervention or damage to our reputation. We depend on our Advisor and its affiliates to develop the appropriate systems and procedures to control operational risk. We rely heavily on our financial, accounting and other data processing systems. The ability of our Advisor's systems to accommodate transactions could also constrain our ability to properly manage our portfolio. Generally, our Advisor will not be liable for losses incurred due to the occurrence of any such errors.

We are subject to the risk that our trading orders may not be executed in a timely and efficient manner due to various circumstances, including, without limitation, systems failure or human error. As a result, we could be unable to achieve the market position selected by our Advisor or might incur a loss in liquidating our positions. Since some of the markets in which we may effect transactions are over-the-counter or interdealer markets, the participants in such markets are typically not subject to credit evaluation or regulatory oversight comparable to that which members of exchange-based markets are subject. We are also exposed to the risk that a counterparty will not settle a transaction in accordance with its terms and conditions, thereby causing us to suffer a loss.

***We are dependent on information systems, and systems failures, as well as operating failures, could significantly disrupt our business, which may, in turn, negatively affect our liquidity, financial condition or results of operations.***

Our business is dependent on our and third parties' communications and information systems. Any failure or interruption of those systems, including as a result of the termination of an agreement with any third-party service providers, could cause delays or other problems in our activities. Our financial, accounting, data processing, backup or other operating systems and facilities may fail to operate properly or become disabled or damaged as a result of a number of factors including events that are wholly or partially beyond our control and adversely affect our business. There could be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•sudden electrical or telecommunications outages;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•natural disasters such as earthquakes, tornadoes and hurricanes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•pandemics or epidemics;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•events arising from local or larger scale political or social matters, including terrorist acts and war; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•cyber incidents.

In addition to our dependence on information systems, poor operating performance by our service providers could adversely impact us.

These events, in turn, could have a material adverse effect on our operating results and negatively affect the market price of our securities and our ability to pay distributions to our stockholders.

***Compliance with the SEC's Regulation Best Interest by participating broker-dealers may negatively impact our ability to raise capital in the Offerings, which could harm our ability to achieve our investment objectives.***

Broker-dealers are required to comply with Regulation Best Interest, which, among other requirements, establishes a standard of conduct for broker-dealers and their associated persons when making a recommendation of any securities transaction or investment strategy involving securities to a retail customer. Regulation Best Interest may negatively impact whether participating broker-dealers and their associated persons recommend the Offerings to certain retail customers. In particular, under SEC guidance concerning Regulation Best Interest, a broker-dealer recommending an investment in our shares should consider a number of factors under the care obligation of Regulation Best Interest, including but not limited to cost and complexity of the investment and reasonably available alternatives in determining whether there is a reasonable basis for the recommendation. As a result, high cost, high risk and complex products may be subject to greater scrutiny by broker-dealers. Broker-dealers may recommend a more costly or complex product as long as they have a reasonable basis to believe is in the best interest of a particular retail customer. However, if broker-dealers choose alternatives to our shares, many of which likely exist, such as an investment in listed entities, which may be a reasonable alternative to an investment in us as such investments may feature characteristics like lower cost, nominal or no commissions at the time of initial purchase, less complexity and lesser or different risks, our ability to raise capital will be adversely affected. If Regulation Best Interest reduces our ability to raise capital in the Offerings, it may harm our ability to achieve our objectives.

***We are subject to risks associated with artificial intelligence and machine learning technology.***

Technological developments in artificial intelligence, including machine learning, generative artificial intelligence and similar technologies that collect, aggregate, analyze or generate data or other materials (collectively "AI"), and their current and potential future applications including in the real estate, capital and financial markets, as well as the legal and regulatory frameworks within which they operate, are rapidly evolving. While we and our Advisor have not directly integrated the use of AI in our and its business currently, our

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Advisor could integrate AI into our business in the future. We and our Advisor may also be exposed to the risks of AI if third-party service providers or any counterparties, whether or not known to us, also use AI in their business activities. We and our Advisor may not be in a position to control the use of AI technology in third-party products or services. Use of AI could include the input of confidential information in contravention of applicable policies, contractual or other obligations or restrictions, resulting in such confidential information becoming accessible by other third-party AI applications and users. The use of AI could also exacerbate or create new and unpredictable risks to our business and the Advisor's business, including by potentially significantly disrupting the markets in which we operate or subjecting us and our Advisor to increased competition and regulation, which could materially and adversely affect the business, financial condition or results of operations of us and our Advisor. The use of AI by bad actors could heighten the sophistication and effectiveness of cybersecurity attacks experienced by us and our Advisor. Further, AI technology is generally highly reliant on the collection and analysis of large amounts of data, and it is not possible or practicable to incorporate all relevant data into the model that AI technology utilizes to operate. Certain data in such models will inevitably contain a degree of inaccuracy and error. As AI technology and its applications continue to develop rapidly, it is impossible to predict the future risks that may arise from such developments to our industry or business.

***We, the Advisor, the Dealer Manager and respective affiliates are subject to regulatory oversight which could negatively impact our operations, cash flow or financial condition, impose additional costs on us or otherwise adversely affect our business.***

A number of regulatory authorities including the SEC and various other U.S. federal, state and local agencies oversee aspects of our and our affiliates' respective businesses and may conduct examinations and inquiries into, and bring examinations, enforcement and other proceedings against us, the Advisor, the Dealer Manager and any of their respective affiliates. We, the Advisor, the Dealer Manager and their respective affiliates also have and in the future may receive requests for information or subpoenas from such regulators from time to time in connection with such inquiries and proceedings and otherwise in the ordinary course of business. These requests could relate to a broad range of matters, including specific practices of our business, the Advisor, the Dealer Manager, our investments or other investments the Advisor or its affiliates make on behalf of their clients, potential conflicts of interest between us and the Advisor, Dealer Manager or their affiliates, or industry wide practices. The costs of responding to legal or regulatory information requests, any increased reporting, registration and compliance requirements will be borne by us in the form of legal or other expenses, litigation, regulatory proceedings or penalties, may divert the attention of our management, may cause negative publicity that adversely affects investor sentiment, and may place us at a competitive disadvantage, including to the extent that we, the Advisor, the Dealer Manager or any of their respective affiliates are required to disclose sensitive business information or alter business practices.

***Extensive regulation of our businesses affects our activities and creates the potential for significant liabilities and penalties. The possibility of increased regulatory focus, particularly given the current administration, could result in additional burdens on our business.***

Our business and the businesses of the Advisor, the Dealer Manager and their affiliates are subject to extensive regulation, including periodic examinations, inquiries and investigations, by governmental agencies and self-regulatory organizations in the jurisdictions in which we and they operate around the world. These authorities have regulatory powers dealing with many aspects of financial services, including the authority to grant, and in specific circumstances to cancel, permissions to carry on particular activities.

We, the Advisor, the Dealer Manager or their affiliates are also subject to requests for information, inquiries and informal or formal investigations by the SEC and other regulatory authorities. SEC actions and initiatives can have an adverse effect on our financial results, including as a result of the imposition of a sanction, a limitation on our or Inland's activities, or changing our historic practices. Any adverse publicity relating to an investigation, proceeding or imposition of these sanctions could harm our or Inland's reputation and have an adverse effect on our future fundraising or operations. The costs of responding to legal or regulatory information requests, any increased reporting, registration and compliance requirements will be borne by us in the form of legal or other expenses, litigation, regulatory proceedings or penalties, may divert the attention of our management, may cause negative publicity that adversely affects investor sentiment, and may place us at a competitive disadvantage, including to the extent that we, the Advisor, the Dealer Manager or any of their respective affiliates are required to disclose sensitive business information or alter business practices.

***Failure by us, our Advisor, the Dealer Manager or our service providers (including our transfer agent and our independent valuation advisor) or tenants to implement effective information and cybersecurity policies, procedures and capabilities could disrupt our business and harm our results of operations.***

We, the Advisor, the Dealer Manager and our service providers (including our transfer agent and our independent valuation advisor) or tenants are dependent on the effectiveness of our respective information and cybersecurity policies, procedures and capabilities to protect our computer and telecommunications systems and the data that resides on or is transmitted through them. An externally caused information security incident, such as a hacker attack, virus or worm, or an internally caused issue, such as failure to control access to sensitive systems or insufficient policies or procedures, could materially interrupt business operations or cause disclosure or modification of sensitive or confidential information and could result in material financial loss, loss of competitive position, regulatory actions, breach of contracts, reputational harm or legal liability.

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***Our operations may be subject to an increasing number of cyber incidents, which could have a material adverse effect on our business, financial condition, results of operations, and cash flows.***

Our success depends in part on our ability to provide effective cybersecurity protection in connection with our business, and the digital technologies and internal digital infrastructure we utilize. We operate information technology networks and systems for internal purposes that incorporate third-party software and technologies. We also connect to and exchange data with external networks that may be operated by the Advisor, the Dealer Manager, service providers (including our transfer agent and our independent valuation advisor), tenants, or other third parties. We may also utilize software and other digital products and services that store, retrieve, manipulate, and manage our information and data, external data, personal data of our Advisor, Dealer Manager, service providers (including our transfer agent and our independent valuation advisor), tenants, stockholders or other third parties, and our own information and data.

Our digital technologies, as well as third-party products, services and technologies that we rely on, are subject to the risk of cyberattacks and, given the nature of such attacks, some incidents can remain undetected for a period of time despite efforts to detect and respond to them in a timely manner. Cyberattacks are expected to accelerate on a global basis in both frequency and magnitude as threat actors are becoming increasingly sophisticated in using techniques and tools (including artificial intelligence) that circumvent controls, evade detection and even remove forensic evidence of the infiltration. There can be no assurance that the systems we have designed to prevent or limit the effects of cyber incidents or attacks will be sufficient to prevent or detect material consequences arising from such incidents or attacks, or to avoid a material adverse impact on our systems after such incidents or attacks do occur. We have experienced and will continue to experience varying degrees of cyber events in the normal conduct of our business, including defending against attacks from social engineering such as phishing. Even if we successfully defend our own digital technologies and internal digital infrastructure, we also rely on providers of third-party products, services, and networks, with whom we may share data, and who may be unable to effectively defend their digital technologies, services and internal digital infrastructure against attack.

Unauthorized access to or modification of, or actions disabling our ability to obtain authorized access to data of our Advisor, Dealer Manager, service providers (including our transfer agent and our independent valuation advisor), tenants, stockholders or other third parties, other external data, personal data, or our own data, as a result of a cyber incident, attack or exploitation of a security vulnerability, or loss of control of our operations could result in significant damage to our reputation or disruption to our business and to our Advisor, Dealer Manager, service providers (including our transfer agent and our independent valuation advisor), tenants, or other third parties. In addition, allegations, reports, or concerns regarding vulnerabilities affecting our digital products or services could damage our reputation. This could lead to fewer using our services, which could have a material adverse impact on our financial condition, results of operations, cash flows, and future prospects.

In addition, if our systems or third-party products, services, and network systems for protecting against cybersecurity risks prove to be insufficient, we could be adversely affected by, among other things, loss of or damage to any of our intellectual property, proprietary or confidential information; loss of data or disruption to our Advisor, Dealer Manager, service providers (including our transfer agent and our independent valuation advisor), tenants, or other third parties; breach of personal data; interruption of our business operations; increased legal and regulatory exposure, including fines and remediation costs; and increased costs required to prevent, respond to, or mitigate cybersecurity attacks. These risks could harm our reputation and our relationships with our employees (if any), our Advisor, the Dealer Manager, service providers, tenants, stockholders or other third parties, and may result in claims against us.

***Disruptions in our information technology systems or a compromise of security with respect to our systems could adversely affect our operating results by limiting our ability to effectively monitor and control our operations, adjust to changing market conditions, or implement strategic initiatives.***

We rely on our Advisor's information technology systems to be able to monitor and control our operations, adjust to changing market conditions, and implement strategic initiatives, and, in connection with our use of these systems, we rely on the cybersecurity strategy and policies implemented by Inland. Any disruptions in these systems or the failure of these systems to operate as expected could in the future adversely affect, our ability to access and use certain applications and could, depending on the nature and magnitude of the problem, adversely affect our operating results by limiting our ability to effectively monitor and control our operations, adjust to changing market conditions and implement strategic initiatives. We cannot guarantee that disruptions will not be material in the future. In addition, the security measures we employ to protect our systems have in the past not detected or prevented, and may in the future not detect or prevent, all attempts to hack our systems, denial-of-service attacks, viruses, malicious software (malware), employee error or malfeasance, phishing attacks, security breaches, disruptions during the process of upgrading or replacing computer software or hardware or integrating systems of acquired assets or other attacks and similar disruptions that may jeopardize the security of information stored in or transmitted by the sites, networks and systems that we otherwise maintain, which include cloud-based networks and data center storage.

We have, from time to time, experienced threats to our data and systems, including malware and computer virus attacks in the normal course of business. Our Advisor is continuously developing and enhancing our controls, processes and practices designed to protect our systems, computers, software, data and networks from attack, damage, or unauthorized access. This continued development and enhancement requires us to expend resources. However, we may not anticipate or combat all types of future attacks until after they have

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been launched. If any of these breaches of security occur or are anticipated in the future, we could be required to expend additional capital and other resources, including costs to deploy additional personnel and protection technologies, and engage third-party experts and consultants. Our response to attacks, and our investments in our technology and our controls, processes and practices, may not be sufficient to shield us from significant losses or liability. Further, given the increasing sophistication of bad actors and complexity of the techniques used to obtain unauthorized access or disable systems, a breach or attack could potentially persist for an extended period of time before being detected. As a result, we may not be able to anticipate the attack or respond adequately or timely, and the extent of a particular incident, and the steps that we may need to take to investigate the incident, may not be immediately clear. It could take a significant amount of time before an investigation can be completed and full, reliable information about the incident becomes known. During an investigation, it is possible we may not necessarily know the extent of the harm or how to remediate it, which could further adversely impact us, and new regulations could result in us being required to disclose information about a material cybersecurity incident before it has been mitigated or resolved, or even fully investigated. We also face cybersecurity risks due to our reliance on internet technology, which could strain our technology resources or create additional opportunities for cybercriminals to exploit vulnerabilities.

***We may become subject to greater liability due to changing regulations and laws regarding cybersecurity, which could materially adversely affect our business, operations, results of operations and profitability.***

Because our systems sometimes retain information about our Advisor, Dealer Manager, service providers (including our transfer agent and our independent valuation advisor), tenants, stockholders or other third parties, our failure to appropriately maintain the security of the data we hold, whether as a result of our own error or the malfeasance or errors of others, could in the future lead, to disruptions in our services or other data systems, and could lead to unauthorized release of confidential or otherwise protected information or corruption of data. Our failure to appropriately maintain the security of the data we hold could also violate applicable privacy, data security and other laws and subject us to lawsuits, fines and other means of regulatory enforcement. Regulators have been imposing new data privacy and security requirements, including new and greater monetary fines for privacy violations. These laws and regulations may be broad in scope and subject to evolving interpretations and increasing enforcement, and we may incur costs to monitor compliance and alter our practices. Moreover, certain new and existing data privacy laws and regulations could diverge and conflict with each other in certain respects, which makes compliance increasingly difficult. Complying with new regulatory requirements could require us to incur substantial expenses or require us to change our business practices, either of which could harm our business. As regulators have become increasingly focused on information security, data collection and use and privacy, we may be required to devote significant additional resources to modify and enhance our information security controls and to identify and remediate vulnerabilities, which could adversely impact our results of operations and profitability. Any compromise or breach of our systems could result in adverse publicity, harm our reputation, lead to claims against us and affect our relationships with our Advisor, Dealer Manager, service providers (including our transfer agent and our independent valuation advisor), tenants, stockholders or other third parties, any of which could have a material adverse effect on our business, operations, results of operations and profitability.

***We will face risks associated with hedging transactions.***

We utilize, and expect to continue to utilize, a wide variety of derivative and other hedging instruments for risk management purposes, the use of which is a highly specialized activity that may entail greater than ordinary investment risks. Currently, a significant portion of our investment portfolio is subject to such hedging transactions. Any such derivatives and other hedging transactions may not be effective in mitigating risk in all market conditions or against all types of risk (including unidentified or unanticipated risks), thereby resulting in losses to us. Engaging in derivatives and other hedging transactions may result in a poorer overall performance for us than if we had not engaged in any such transaction, and our Advisor may not be able to hedge against, or anticipate, certain risks that may adversely affect our investment portfolio. In addition, our investment portfolio will always be exposed to certain risks that cannot be fully or effectively hedged, such as credit risk relating both to particular securities and counterparties as well as interest rate risks. See "General Risks Related to Investments in Real Estate-Related Securities—We may utilize derivatives, which involve numerous risks" below.

**General Risks Related to Investments in Real Estate**

***Our operating results will be affected by economic and regulatory changes that impact the real estate market in general.***

We are subject to risks generally attributable to the ownership of real property, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•changes in global, national, regional or local economic, demographic or capital market conditions, including economic impacts resulting from trade conflict, civil unrest, national and international security events, geopolitical events, military conflicts, war (including conflicts in South America, the Middle East and Ukraine) and actual or perceived instability in the U.S. banking system;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•future adverse national real estate trends, including increasing vacancy rates, declining rental rates and general deterioration of market conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•changes in supply of or demand for similar properties in a given market or metropolitan area, which could result in rising vacancy rates or decreasing market rental rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•increased competition for properties targeted by our investment strategy;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•bankruptcies, financial difficulties or lease defaults by our tenants, particularly for tenants with net leases for large properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•increases in interest rates and lack of availability of financing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•changes in government rules, regulations and fiscal policies, including changes in tax laws and increases in property taxes, changes in zoning laws, climate-change initiatives, limitations on rental rates and increasing costs to comply with environmental laws.

All of these factors are beyond our control. Any negative changes in these factors could affect our performance and our ability to meet our obligations and make distributions to stockholders.

***Our success is dependent on general market and economic conditions.***

The real estate industry generally and the success of our investment activities in particular will both be affected by global and national economic and market conditions generally and by the local economic conditions where our properties are located. These factors may affect the level and volatility of real estate prices, which could impair our profitability or result in losses. In addition, general fluctuations in the market prices of securities, interest rates and inflation may affect our investment opportunities and the value of our investments. Inland's financial condition may be adversely affected by a significant economic downturn and it may be subject to legal, regulatory, reputational and other unforeseen risks that could have a material adverse effect on Inland's businesses and operations (including our Advisor).

A depression, recession or slowdown in the U.S. real estate market or one or more regional real estate markets, and to a lesser extent, the global economy (or any particular segment thereof) would have a pronounced impact on us, the value of our assets and our profitability, impede the ability of our assets to perform under or refinance their existing obligations, and impair our ability to effectively deploy our capital or realize upon investments on favorable terms. We would also be affected by any overall weakening of, or disruptions in, the financial markets. Any of the foregoing events could result in substantial losses to our business, which losses will likely be exacerbated by the presence of leverage in our capital structure or our investments' capital structures.

Market disruptions in a single country could cause a worsening of conditions on a regional and even global level, and economic problems in a single country are increasingly affecting other markets and economies. A continuation of this trend could result in problems in one country adversely affecting regional and even global economic conditions and markets.

Additionally, geopolitical concerns and other global events such as trade conflict, civil unrest, national and international security events, war, terrorism, natural and environmental disasters and the spread of infectious illnesses, pandemics or other public health emergencies may adversely affect the global economy and the markets in which we invest. Currently, market uncertainty and volatility are heightened for a variety of reasons, including as a result of uncertainties regarding actual and potential shifts in U.S. and foreign policies on trade and other fiscal, monetary and regulatory policies, such as with respect to treaties and tariffs. The U.S. government has imposed, and may in the future impose, tariffs on certain foreign goods, including steel and aluminum, or on goods from particular countries. Some foreign governments have imposed, or may in the future impose, retaliatory tariffs on certain U.S. goods. Global trade disruption, significant introductions of trade barriers and bilateral trade frictions, together with any future downturns in the global economy resulting therefrom, could adversely affect our performance. These events could reduce consumer demand or economic output, result in market closure, travel restrictions or quarantines, and generally have a significant impact on the economy, our operations and performance.

The failure of certain financial institutions, namely banks, increases the possibility of a sustained deterioration of financial market liquidity, or illiquidity at clearing, cash management and/or custodial financial institutions. The failure of a bank (or banks) with which we and/or our tenants have a commercial relationship could adversely affect, among other things, our or our tenant's ability to access deposits or borrow from financial institutions on favorable terms.

***Persistent inflation may adversely affect our financial condition and results of operations.***

Inflation in the United States has accelerated at times in recent years and may do so in the future. It remains uncertain whether substantial inflation in the United States will be sustained over an extended period of time or have a significant effect on the United States or other economies. Rising inflation could have an adverse impact on our operating costs, including any floating rate mortgages, credit facilities, property operating expenses and general and administrative expenses, as these costs could increase at a rate higher than our rental and other revenue. Inflation could also have an adverse effect on consumer spending, which could impact our tenants' revenues and, in turn, our percentage rents, where applicable.

In addition, leases of long-term duration or which include renewal options that specify a maximum rate increase may result in below-market lease rates over time if we do not accurately estimate inflation or market lease rates. Provisions of our leases designed to mitigate the risk of inflation and unexpected increases in market lease rates, such as periodic rental increases, may not adequately protect us from the impact of inflation or unexpected increases in market lease rates. If we are subject to below-market lease rates on a significant number of our properties pursuant to long-term leases and our operating and other expenses are increasing faster than anticipated, our

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business, financial condition, results of operations, cash flows or our ability to satisfy our debt service obligations or to pay distributions on our common stock could be materially adversely affected.

***Financial regulatory changes in the United States could adversely affect our business.***

The financial services industry continues to be the subject of heightened regulatory scrutiny in the United States. There has been active debate over the appropriate extent of regulation and oversight of private investment funds and their managers. We may be adversely affected as a result of new or revised regulations imposed by the SEC or other U.S. governmental regulatory authorities or self-regulatory organizations that supervise the financial markets. We also may be adversely affected by changes in the interpretation or enforcement of existing laws and regulations by these governmental authorities and self-regulatory organizations. Further, new regulations or interpretations of existing laws may result in enhanced disclosure obligations, including with respect to climate change or environmental, social and governance factors, which could negatively affect us and materially increase our regulatory burden. Increased regulations generally increase our costs, and we could continue to experience higher costs if new laws require us to spend more time or buy new technology to comply effectively.

Any changes in the regulatory framework applicable to our business, including the changes described above, may impose additional compliance and other costs, increase regulatory investigations of the investment activities of our funds, require the attention of our senior management, affect the manner in which we conduct our business and adversely affect our profitability. The full extent of the impact on us of any new laws, regulations or initiatives that may be proposed is impossible to determine.

***A major public health crisis, pandemic or epidemic, like the COVID-19 pandemic, could disrupt the U.S. and global economy and industries in which we operate and negatively impact our financial performance and results of operations.***

A major public health crisis, pandemic or epidemic could impact the U.S. and global economy. Disruptions to commercial activity (such as the imposition of quarantines or travel restrictions) or, more generally, a failure to contain or effectively manage a public health crisis, may have an adverse impact on our NAV, results of operations (including funds from operations ("FFO"), adjusted FFO ("AFFO") and funds available for distribution, cash flows and fundraising, and may have an adverse impact on our ability to source new investments, obtain financing, fund distributions to stockholders and satisfy repurchase requests, among other factors.

The impact and effects of any future health crises, pandemics or epidemics will depend on various factors, including how rapidly variants develop, availability, acceptance and effectiveness of vaccines along with related travel advisories, quarantines and restrictions, the recovery time of potentially disrupted supply chains and industries, the impact of labor market interruptions, and the impact of government interventions. Health crises, pandemics or epidemics, and resulting impacts on the financial, economic and capital markets environment, and future developments in these and other areas present uncertainty and risk with respect to our performance, results of operations and ability to continue to pay distributions.

***We depend on tenants for our revenue, and therefore our revenue is dependent on the success and economic viability of our tenants. Our reliance on single or significant tenants in certain buildings may decrease our ability to lease vacated space and could adversely affect our income, performance, operations and ability to pay distributions.***

Rental income from real property will, directly or indirectly, constitute a significant portion of our income. Delays in collecting accounts receivable from tenants could adversely affect our cash flows and financial condition. In addition, the inability of a single major tenant or a number of smaller tenants to meet their rental obligations would adversely affect our income. Therefore, our financial success is indirectly dependent on the success of the businesses operated by the tenants in our properties or in the properties securing debts we may own. The weakening of the financial condition of or the bankruptcy or insolvency of a significant tenant or a number of smaller tenants and vacancies caused by defaults of tenants or the expiration of leases may adversely affect our operations, performance and our ability to pay distributions.

Generally, under U.S. bankruptcy law, a debtor tenant has 120 days to exercise the option of assuming or rejecting the obligations under any unexpired lease for nonresidential real property, which period may be extended once by the bankruptcy court for an additional 90 days. If the tenant assumes its lease, the tenant must cure all defaults under the lease and may be required to provide adequate assurance of its future performance under the lease. If the tenant rejects the lease, we will have a claim against the tenant's bankruptcy estate. Although rent owing for the period between filing for bankruptcy and rejection of the lease may be afforded administrative expense priority and paid in full, pre-bankruptcy arrears and amounts owing under the remaining term of the lease will be afforded general unsecured claim status (absent collateral securing the claim). Moreover, amounts owing under the remaining term of the lease will be capped. Other than equity and subordinated claims, general unsecured claims are the last claims paid in a bankruptcy, and therefore funds may not be available to pay such claims in full.

Some of our properties may be leased to a single or significant tenant and, accordingly, may be suited to the particular or unique needs of such tenant. We may have difficulty replacing such a tenant if the floor plan of the vacant space limits the types of businesses that

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can use the space without major renovation. In addition, the resale value of the property could be diminished because the market value of a particular property will depend principally upon the value of the leases of such property.

Similarly, certain of our properties, such as healthcare properties, may be leased out to single tenants or tenants that are otherwise reliant on a single enterprise to remain in business and other properties, such as self-storage properties, will generally be operated by a single operator. Adverse impacts to such tenants, businesses or operators, including as a result of changes in market or economic conditions, natural disasters, outbreaks of an infectious disease, pandemic or any other serious public health concern, political events or other factors that may impact the operation of these properties, may have negative effects on our business and financial results. As a result, such tenants or operators may be required to suspend operations at our properties for what could be an extended period of time. Further, if such tenants default under their leases or such operators are unable to operate our properties, we may not be able to enter into a new lease or operating arrangement for such properties promptly, rental rates or other terms under any new leases or operating arrangement may be less favorable than the terms of the current lease or operating arrangement or we may be required to make capital improvements to such properties for a new tenant or operator, any of which could adversely impact our operating results.

***Our portfolio may be concentrated in a limited number of industries, geographies or investments.***

Our portfolio may be heavily concentrated at any time in only a limited number of industries, geographies or investments, and, as a consequence, our aggregate return may be substantially affected by the unfavorable performance of even a single investment. Concentration of our investments in a particular type of asset or geography makes us more susceptible to fluctuations in value resulting from adverse economic or business conditions affecting that particular type of asset or geography. Investors have no assurance as to the degree of diversification in our investments, either by geographic region or asset type.

***We are subject to risks related to tenant concentration, and an adverse development with respect to a large tenant could materially and adversely affect us.***

Although we expect to increase tenant diversification over time, our Operating Partnership has certain tenants that represent a significant portion of its revenue. As a result, our Operating Partnership's financial performance depends significantly on the revenues generated from such tenants and, in turn, their financial condition. In the future, we may experience additional tenant and industry concentrations. In the event that one of these tenants, or another tenant that occupies a significant portion of our properties or whose lease payments represent a significant portion of our rental revenue, were to experience financial weakness, it could have a material adverse effect on us.

***We face risks associated with property acquisitions.***

We intend to acquire properties and portfolios of properties, including large portfolios that could result in changes to our capital structure. Our acquisition activities and their success are subject to the following risks:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•we may be unable to complete an acquisition after making a non-refundable deposit or guarantee and incurring certain other acquisition-related costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•we may be unable to obtain financing for acquisitions on commercially reasonable terms or at all;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•acquired properties may fail to perform as expected;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•acquired properties may be located in markets in which we may face risks associated with a lack of market knowledge or understanding of the local economy, lack of business relationships in the area and unfamiliarity with local governmental and permitting procedures; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•we may be unable to integrate new acquisitions efficiently, particularly acquisitions of portfolios of properties, into our existing operations.

In addition, while we will invest primarily in stabilized, income-generating real estate, we may also acquire assets that require some amount of capital investment in order to be renovated or repositioned. These investments are generally subject to higher risk of loss than investments in stabilized real estate, and there is no guarantee that any renovation or repositioning will be successful or that the actual costs will not be greater than our estimates.

***Competition for investment opportunities may reduce our profitability and the return on your investment.***

We face competition from various entities for investment opportunities in properties, including other REITs, real estate operating companies, pension funds, insurance companies, investment funds and companies, partnerships and developers. In addition to third-party competitors, other programs sponsored by our Advisor and its affiliates, particularly those with investment strategies that overlap with ours, may seek investment opportunities in accordance with Inland's policies and procedures. Some of these entities, including other REITs, have greater access to capital to acquire properties than we have. Competition from these entities may reduce the number of suitable investment opportunities offered to us, increase the bargaining power of property owners seeking to sell or cause us to pay more for an investment than we otherwise would. Additionally, disruptions and dislocations in the credit markets could have a material impact on the cost and availability of debt to finance real estate acquisitions, which is a key component of our acquisition strategy. The

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lack of available debt on reasonable terms or at all could result in a further reduction of suitable investment opportunities and create a competitive advantage for other entities that have greater financial resources than we do. In addition, over the past several years, a number of real estate funds and publicly traded and non-listed REITs have been formed and others have been consolidated (and many such existing funds have grown in size) for the purpose of investing in real estate and/or real estate-related securities. Additional real estate funds, vehicles and REITs with similar investment objectives are expected to be formed in the future by other unrelated parties and further consolidations may occur (resulting in larger funds and vehicles). Consequently, it is expected that competition for appropriate investment opportunities would reduce the number of investment opportunities available to us and adversely affect the terms, including price, upon which investments can be made. This competition may cause us to acquire properties and other investments at higher prices or by using less-than-ideal capital structures, and in such case our returns will be lower and the value of our assets may not appreciate or may decrease significantly below the amount we paid for such assets. If such events occur, you may experience a lower return on your investment.

***Acquiring or attempting to acquire multiple properties in a single transaction may adversely affect our operations.***

From time to time, we may acquire multiple properties in a single transaction. Portfolio acquisitions typically are more complex and expensive than single-property acquisitions, and the risk that a multiple-property acquisition does not close may be greater than in a single-property acquisition. Portfolio acquisitions may also result in us owning investments in geographically dispersed markets, placing additional demands on our Advisor in managing the properties in the portfolio. In addition, a seller may require that a group of properties be purchased as a package and/or also include certain additional investments or transactions even though, were it not part of the overall transaction, we may not want to purchase one or more properties included in such portfolio or participate in additional investments or transactions. In these situations, if we are unable to identify another person or entity to acquire the unwanted properties or investments, or if the seller imposes a lock-out period or other restriction on a subsequent sale, we may be required to operate such properties or attempt to dispose of such properties or investments (if not subject to a lock-out period). We may also share the acquisition of large portfolios of properties with our affiliates, which can result in conflicts of interest, including as to the allocation of properties within the portfolio and the prices attributable to such properties. It may also be difficult for our Advisor to analyze each property thoroughly in a large portfolio, increasing the risk that properties do not perform as anticipated. Therefore, acquiring multiple properties in a single transaction may reduce the overall yield on our portfolio.

***We may incur "dead deal costs" in connection with potential acquisitions.***

We may incur costs in connection with potential acquisitions that ultimately are not acquired. For example, we may enter into contracts with non-refundable deposits to acquire certain properties. The amount deposited, if any, may be surrendered if the property is not purchased and may or may not be credited against the purchase price if the property is purchased. Additionally, we may incur due diligence and other costs when considering whether to acquire an asset, and such costs will not be reduced if the transaction fails to close. Any unreturned deposits, due diligence costs and other "dead deal costs" will reduce the amount of cash available for further investments or distributions to our stockholders.

***In our due diligence review of potential investments, we may rely on third-party consultants and advisors and representations made by sellers of potential properties, and we may not identify all relevant facts that may be necessary or helpful in evaluating potential investments.***

Before making investments, due diligence will typically be conducted in a manner that we deem reasonable and appropriate based on the facts and circumstances applicable to each investment. Due diligence may entail evaluation of important and complex issues, including but not limited to those related to financial, tax, accounting, environmental, social governance, real property, legal and regulatory and macroeconomic trends.

Outside consultants, legal advisors, appraisers, accountants, investment banks and other third parties may be involved in the due diligence process to varying degrees depending on the type of investment, the costs of which will be borne by us. Such involvement of third-party advisors or consultants may present a number of risks primarily relating to our Advisor's reduced control of the functions that are outsourced.

In the due diligence process and making an assessment regarding a potential investment, our Advisor will rely on the resources available to it, including information provided by the seller of the investment and, in some circumstances, third-party investigations. The due diligence investigation carried out with respect to any investment opportunity may not reveal or highlight all relevant facts that may be necessary or helpful in evaluating such investment opportunity, particularly for large portfolio investments. Moreover, such an investigation will not necessarily result in the investment being successful. There can be no assurance that attempts to provide downside protection with respect to investments, including pursuant to risk management procedures described in the Prospectus, will achieve their desired effect and potential investors should regard an investment in us as being speculative and having a high degree of risk.

***There can be no assurance that our Advisor will be able to detect or prevent irregular accounting, employee misconduct or other fraudulent practices or material misstatements or omissions during the due diligence phase or during our efforts to monitor and*** 

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***disclose information about any investment on an ongoing basis or that any risk management procedures implemented by us will be adequate.***

When conducting due diligence and making an assessment regarding an investment, our Advisor will rely on the resources available to it, including information provided or reported by the seller of the investment and, in some circumstances, third-party investigations. The due diligence investigation that our Advisor carries out with respect to any investment opportunity may not reveal or highlight all relevant facts that may be necessary or helpful in evaluating such investment opportunity. Moreover, such an investigation will not necessarily result in the investment being successful. Conduct occurring at the property, even activities that occurred prior to our investment therein, could have an adverse impact on us.

In the event of fraud by the seller of any property, we may suffer a partial or total loss of capital invested in that property. An additional concern is the possibility of material misrepresentation or omission on the part of the seller. Such inaccuracy or incompleteness may adversely affect the value of our investments in such property. We will rely upon the accuracy and completeness of representations made by sellers of properties in the due diligence process to the extent reasonable when we make our investments, but cannot guarantee such accuracy or completeness.

In addition, we will rely on information, including financial information and non-GAAP metrics, provided by sellers of our investments for disclosure to our investors about potential acquisitions or current assets owned by us. Accordingly, although we may believe such information to be accurate, such information cannot be independently verified by our Advisor, and in some cases such information may not be independently reviewed or audited while under our ownership or control or at all. We cannot assure you that the financial statements or metrics of properties we will acquire would not be materially different if such statements or metrics had been independently audited or reviewed.

***Certain properties may require an expedited transaction, which may result in limited information being available about the property prior to its acquisition.***

Investment analyses and decisions by our Advisor may be required to be undertaken on an expedited basis to take advantage of investment opportunities. In such cases, the information available to our Advisor at the time of making an investment decision may be limited, and our Advisor may not have access to detailed information regarding the investment property or portfolio of properties, such as physical characteristics, environmental matters, zoning regulations or other local conditions affecting such investment. Therefore, no assurance can be given that our Advisor will have knowledge of all circumstances that may adversely affect an investment, and we may make investments which we would not have made if more extensive due diligence had been undertaken. Because large portfolios of properties still generally require diligence to analyze individual properties, these risks are exacerbated in expedited transactions of large portfolios. In addition, our Advisor may use consultants, legal advisors, appraisers, accountants, investment banks and other third parties in connection with its evaluation and/or diligence of certain investments. No assurance can be given as to the accuracy or completeness of the information provided by such third parties.

***We will face risks in effecting operating improvements.***

In some cases, the success of an investment will depend, in part, on our ability to restructure and effect improvements in the operations of a property. The activity of identifying and implementing restructuring programs and operating improvements at properties entails a high degree of uncertainty. There can be no assurance that we will be able to successfully identify and implement such restructuring programs and improvements.

***We may have difficulty selling our properties, which may limit our flexibility and ability to pay distributions.***

Because real estate investments are relatively illiquid, it could be difficult for us to sell one or more of our properties promptly on favorable terms or at all. Additionally, we may agree to lock-out or other provisions when we acquire a property that materially restrict us from selling such property or our interest in such property for a period of time. This may limit our ability to change our portfolio quickly in response to adverse changes in the performance of any such property or economic or market trends or to create liquidity to satisfy repurchase requests or maintain distributions levels. In addition, U.S. federal tax laws that impose a 100% excise tax on gains from sales of dealer property by a REIT (generally, property held for sale, rather than investment) could limit our ability to sell properties and may affect our ability to sell properties without adversely affecting returns to our stockholders. These restrictions could adversely affect our results of operations and financial condition.

***Our Operating Partnership may be subject to tax indemnification obligations upon the taxable sale of certain of its properties.***

In connection with our Operating Partnership's acquisition of its current portfolio of 30 medical outpatient properties in September 2021 through a "roll-up" transaction with eight separate programs sponsored by an affiliate of our sponsor, the Operating Partnership provided tax protection to the investors in those eight programs, now limited partners of the Operating Partnership.

Pursuant to the tax protection provided to those limited partners, the Operating Partnership agreed, until September 2028, to indemnify the protected limited partners against certain tax consequences of a taxable transfer of all or any portion of the properties in the initial

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medical outpatient portfolio and to use commercially reasonable efforts to provide each of the protected limited partners with notice prior to any repayment or other action that could have the effect of reducing the amount of liabilities allocated to such limited partner in an amount that could result in taxable gain. These indemnification obligations could prevent our Operating Partnership from selling these properties at times and on terms that are in the best interest of the Operating Partnership, the Company and the respective equity owners of the Operating Partnership and the Company, and any indemnification payments that may become payable could be a significant expense for the Operating Partnership and the Company.

Additionally, in connection with the acquisition of four self-storage properties on April 5, 2024, we and the Operating Partnership provided to those investors that elected to receive OP Units in connection with the transaction the opportunity to enter into a tax protection agreement. Pursuant to this agreement, we and the Operating Partnership agreed as follows: (a) during the five-year period starting on April 5, 2024, the Operating Partnership will not dispose of the storage properties in a taxable transaction, other than in certain enumerated situations and will indemnify such limited partners for taxes arising to them in the event of a breach of such agreement by the Operating Partnership; and (b) during the 10-year period starting on April 5, 2024, the Operating Partnership will provide such limited partners with opportunities to ensure that they are allocated sufficient liabilities (including, as applicable, through a guarantee by such holders of indebtedness of the Operating Partnership) to prevent gain from being recognized to them as a result of any deemed distributions that would otherwise arise from a decrease in their share of liabilities of the Operating Partnership.

In addition, the Operating Partnership may in the future enter into tax indemnification agreements with certain persons who contribute their interests in properties to the Operating Partnership in exchange for limited partnership interests, including in connection with the DST Program. The obligations of our Operating Partnership under these and future indemnification agreements may constrain the Operating Partnership with respect to deciding to dispose of a particular property and may also result in financial obligations for us.

***Investments in real properties carry certain litigation risks at the property level that may reduce our profitability and the return on your investment.***

The acquisition, ownership and disposition of real properties carry certain specific litigation risks. Litigation may be commenced with respect to a property acquired by us in relation to activities that took place prior to our acquisition of such property. In addition, at the time of disposition of an individual property, a potential buyer may claim that it should have been afforded the opportunity to purchase the asset or alternatively that such potential buyer should be awarded due diligence expenses incurred or statutory damages for misrepresentation relating to disclosure made, if such buyer is passed over in favor of another as part of our efforts to maximize sale proceeds. Similarly, successful buyers may later sue us under various damages theories, including tort claims, for losses associated with latent defects or other problems not uncovered in due diligence.

***We may make a substantial amount of joint venture investments, including with Inland affiliates. Joint venture investments could be adversely affected by our lack of sole decision-making authority, our reliance on the financial condition of our joint venture partners and disputes between us and our joint venture partners.***

We may make joint venture investments with third parties and, subject to the requirements in our charter, co-invest in the future with Inland affiliates or third parties in partnerships or other entities that own real properties. We may enter into joint ventures as part of an acquisition with the seller of the properties. We may acquire non-controlling interests or shared control interests in joint ventures. Even if we have some control in a joint venture, we may not be in a position to exercise sole decision-making authority regarding the joint venture. Investments in joint ventures may, under certain circumstances, involve risks not present were another party not involved, including the possibility that joint venture partners might become bankrupt or fail to fund their required capital contributions. Joint venture partners may have economic or other business interests or goals that are inconsistent with our business interests or goals, and may be in a position to take actions contrary to our policies or objectives. Such investments may also have the potential risk of impasses on decisions, such as a sale, because neither we nor the joint venture partner would have full control over the joint venture. Disputes between us and joint venture partners may result in litigation or arbitration that would increase our expenses and prevent our officers and directors from focusing their time and effort on our business. Consequently, actions by or disputes with joint venture partners might subject properties owned by the joint venture to additional risk. In some cases, our joint venture partner may be entitled to property management fees, promote or other incentive fee payments as part of the arrangement of the joint venture. In addition, we may in certain circumstances be liable for the actions of our joint venture partners.

We may co-invest with the other programs advised by our sponsor or its affiliates (collectively referred to as the "Inland Programs") in certain types of debt investments in which we do not have control rights or rights over major decisions. In such cases our Advisor and/or the Inland Program may make decisions that are not in our best interest. In addition, in connection with any investments in which we participate alongside any Inland Programs, our Advisor may decline to exercise, or delegate to a third party, certain control, foreclosure and similar governance rights relating to such shared investments for legal, tax, regulatory or other reasons. There is no guarantee that we will be able to co-invest with any Inland Program. We will not participate in joint ventures in which we do not have or share control to the extent that we believe such participation would potentially threaten our status as a non-investment company exempt from the Investment Company Act. This may prevent us from receiving an allocation with respect to certain investment opportunities that are suitable for both us and one or more Inland Programs.

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If we have a right of first refusal to buy out a joint venture partner, we may be unable to finance such a buy-out if it becomes exercisable or we are required to purchase such interest at a time when it would not otherwise be in our best interest to do so. If our interest is subject to a buy/sell right, we may not have sufficient cash, available borrowing capacity or other capital resources to allow us to elect to purchase an interest of a joint venture partner subject to the buy/sell right, in which case we may be forced to sell our interest as the result of the exercise of such right when we would otherwise prefer to keep our interest. In some joint ventures we may be obligated to buy all or a portion of our joint venture partner's interest in connection with a crystallization event, and we may be unable to finance such a buy-out when such crystallization event occurs, which may result in interest or other penalties accruing on the purchase price. If we buy our joint venture partner's interest we will have increased exposure in the underlying investment. The price we use to buy our joint venture partner's interest or sell our interest will typically be determined by negotiations between us and our joint venture partner, and there is no assurance that such price will be representative of the value of the underlying property or equal to our then-current valuation of our interest in the joint venture that is used to calculate our NAV. Finally, we may not be able to sell our interest in a joint venture if we desire to exit the venture for any reason, or if our interest is subject to a right of first refusal of our joint venture partner, our ability to sell such interest may be adversely impacted by such right. Joint ownership arrangements with Inland affiliates may also entail further conflicts of interest. Joint venture partners may receive ongoing fees in connection with providing service to the joint venture or its properties, including promote payments, beyond their equity investment, which would reduce the amount of our economic interest.

Some additional risks and conflicts related to our joint venture investments (including joint venture investments with Inland affiliates) include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The joint venture partner could have economic or other interests that are inconsistent with or different from our interests, including interests relating to the financing, management, governance, operation, leasing or sale of the assets purchased by such joint venture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Our joint venture partners may receive ongoing fees from our joint ventures, including promote payments and potential buyouts of their equity investments, all of which may reduce amounts otherwise payable to us.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Tax, Investment Company Act and other regulatory requirements applicable to the joint venture partner could cause it to want to take actions contrary to our interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The joint venture partner could have joint control or joint governance of the joint venture even in cases where its economic stake in the joint venture is significantly less than ours.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Under the joint venture arrangement, it is possible that neither we nor the joint venture partner will be in a position to unilaterally control the joint venture, and deadlocks may occur. Such deadlocks could adversely impact the operations and profitability of the joint venture, including as a result of the inability of the joint venture to act quickly in connection with a potential acquisition or disposition. In addition, depending on the governance structure of such joint venture partner, decisions of such vehicle may be subject to approval by individuals who are independent of Inland.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Under the joint venture arrangement, we and the joint venture partner may have a buy/sell right and, as a result of an impasse that triggers the exercise of such right, we could be forced to sell our investment in the joint venture, or buy the joint venture partner's share of the joint venture at a time when it would not otherwise be in our best interest to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Our participation in investments in which a joint venture partner participates will be less than what our participation would have been had such joint venture partner not participated, and because there may be no limit on the amount of capital that such joint venture partner can raise, the degree of our participation in such investments may decrease over time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Under the joint venture arrangement, we and the joint venture partner could each have preemptive rights in respect of future issuances by the joint venture, which could limit a joint venture's ability to attract new third-party capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Under the joint venture arrangement, we and the joint venture partner could be subject to lock-ups, which could prevent us from disposing of our interests in the joint venture at a time it determines it would be advantageous to exit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The joint venture partner could have a right of first refusal, tag-along rights, drag-along rights, consent rights or other similar rights in respect of any transfers of the ownership interests in the joint venture to third parties, which could have the effect of making such transfers more complicated or limiting or delaying us from selling our interest in the applicable investment.

Furthermore, we may have conflicting fiduciary obligations when we acquire properties with our affiliates or other related entities; as a result, in any such transaction we may not have the benefit of arm's-length negotiations of the type normally conducted between unrelated parties.

***We may be subject to expenses and liabilities related to employees of certain portfolio entities owned by us.***

We may acquire portfolio entities with employees and thereby become subject to expenses and liabilities related to such employees. These expenses and liabilities could include compensation, overhead and other administrative costs, as well as potential liabilities that are commonly faced by employers, such as workers' disability and compensation claims, potential labor disputes and other employee-related liabilities and grievances. We may also be subject to other operational risks from such employees, including cybersecurity risks or as a result of employee error or malfeasance. In addition, we may encounter unforeseen costs and expenses associated with acquiring such portfolio entities and such expenses may have an adverse effect on our results of operations.

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***We rely on management companies to operate our properties and leasing agents to lease vacancies in our properties.***

Our Advisor hires management companies, including Inland Commercial Real Estate Services LLC, a Delaware limited liability company and an affiliate of our sponsor ("Inland Commercial"), and Inland Devon Self Storage Holdings LLC, an affiliate of our sponsor ("Devon"), to manage our properties and leasing agents to lease vacancies in our properties. These management companies may be our partners in joint ventures that we enter into. The management companies have significant decision-making authority with respect to the management of our properties. In cases where we use third-party property managers, our ability to direct and control how our properties are managed on a day-to-day basis may be limited. Thus, the success of our business may depend in large part on the ability of our management companies to manage the day-to-day operations and the ability of our leasing agents to lease vacancies in our properties. Any adversity experienced by, or problems in our relationship with, our management companies or leasing agents could adversely impact the operation and profitability of our properties.

***We may be unable to renew leases as leases expire.***

We may not be able to lease properties that are vacant or become vacant because a tenant decides not to renew its lease or by the continued default of a tenant under its lease. In addition, certain of the properties we acquire may have some level of vacancy at the time of acquisition. Certain other properties may be specifically suited to the particular needs of a tenant and may become vacant after we acquire them. Even if a tenant renews its lease or we enter into a lease with a new tenant, the terms of the new lease may be less favorable than the terms of the old lease. In addition, the resale value of the property could be diminished because the market value may depend principally upon the value of the property's leases. If we are unable to renew or enter into new leases promptly, or if the rental rates are lower than expected, our results of operations and financial condition will be adversely affected. For example, following the termination or expiration of a tenant's lease there may be a period of time before we will begin receiving rental payments under a replacement lease. During that period, we will continue to bear fixed expenses such as interest, real estate taxes, maintenance, security, repairs and other operating expenses. In addition, declining economic conditions may impair our ability to attract replacement tenants and achieve rental rates equal to or greater than the rents paid under previous leases. Increased competition for tenants may require us to make capital improvements to properties which would not have otherwise been planned. Any unbudgeted capital improvements that we undertake may divert cash that would otherwise be available for distributions or for satisfying repurchase requests. Ultimately, to the extent that we are unable to renew leases or re-let space as leases expire, decreased cash flow from tenants will result, which could adversely impact our operating results.

We may be required to expend funds to correct defects or to make improvements before a tenant can be found for a property at an attractive lease rate or an investment in a property can be sold. No assurance can be given that we will have funds available to correct those defects or to make those improvements. In acquiring a property, we may agree to lock-out provisions that materially restrict us from selling that property for a period of time or impose other restrictions, such as a limitation on the amount of debt that can be placed on that property. These factors and others that could impede our ability to respond to adverse changes in the performance of our properties could significantly affect our financial condition and operating results.

***Our properties may be leased at below-market rates under long-term leases.***

We may seek to negotiate longer-term leases to reduce the cash flow volatility associated with lease rollovers, provided that contractual rent increases are generally included. In addition, where appropriate, we will seek leases that provide for operating expenses, or expense increases, to be paid by the tenants. These leases may allow tenants to renew the lease with pre-defined rate increases. If we do not accurately judge the potential for increases in market rental rates, or if our negotiated increases provide for a discount to then-current market rental rates (in exchange for lower volatility), we may set the rental rates of these long-term leases at levels such that even after contractual rental increases, the resulting rental rates are less than then-current market rental rates. Further, we may be unable to terminate those leases or adjust the rent to then-prevailing market rates. As a result, our income and distributions to our stockholders could be lower than if we did not enter into long-term leases.

***Short-term leases expose us to the effects of declining market rent and could adversely impact our ability to make cash distributions.***

To the extent we invest in any properties with short-term leases, such as student housing or self-storage properties, we may suffer losses if market rents decline. Thus, our ability to make distributions may be less certain than if we were to buy real estate with longer lease terms.

***Certain of our real estate investments may not include title to the underlying land, exposing us to greater risks.***

We may invest from time to time in real properties without acquiring title to the underlying land. This means that while we would have a right to use the property, we would not hold fee title to the underlying land. Accordingly, we would have no economic interest in the land or, in many instances the improvements located on the land, at the expiration of the ground lease, easement or permit. As the remaining term of a ground lease gets shorter, the prospect of expiration of the ground lease can result in a discount in its value and difficulty in subleasing the property. In addition, a default by us under the ground lease or easement could cause a termination of the

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ground lease or easement, which may adversely impact our investment performance. Finally, there are complexities associated with financing a ground leasehold or easement interest.

***Certain of our tenants may be private companies, and their financial statements are not publicly available for stockholders to review.***

Certain of our tenants may be private companies, and as private companies, these tenants are not required to file reports with the SEC. Stockholders will not have any access to the financial statements of these tenants.

***Certain of our properties may be specifically designed for use by their tenants, which could result in substantial re-leasing costs or a lower sale price.***

Certain of our properties may be designed for use by their tenants. Accordingly, if any lease is terminated for any reason, or if the applicable tenant does not renew its lease, that property might not be marketable to a different tenant without substantial capital improvements or alterations. Also, if another tenant could not be found to occupy a property, the property might have to be subdivided and the property might not be fully leased, resulting in a loss of income from such unutilized space. Moreover, if we decide to sell a property, the sale price might be lower than expected because of the property's limited suitability.

***Certain of our leases may provide for a right of first offer or right of first refusal to purchase the respective property, which may make it more difficult to sell such properties.***

Certain of our leases may provide for a right of first offer or right of first refusal to purchase the respective property. The existence of these rights of first offer and the rights of first refusal may make such properties more difficult to sell a third party.

***Our properties may face significant competition.***

We may face significant competition from owners, operators and developers of properties. Many of our properties will face competition from similar properties in the same market. This competition may affect our ability to attract and retain tenants and may reduce the rents we are able to charge. These competing properties may have vacancy rates higher than our properties, which may result in their owners being willing to lease available space at lower prices than the space in our properties. If one of our properties were to lose an anchor tenant, this could impact the leases of other tenants, who may be able to modify or terminate their leases as a result.

***We may experience material losses or damage related to our properties and such losses may not be covered by insurance.***

We may experience material losses related to our properties arising from natural disasters, such as extreme weather events, climate change, hurricanes, earthquakes or floods, and acts of God, vandalism or other crime, faulty construction or accidents, fire (including wildfires), outbreaks of an infectious disease, pandemic or any other serious public health concern, war, acts of terrorism (including cyber sabotage or similar attacks) or other catastrophes. We plan to carry insurance covering our properties under policies our Advisor deems appropriate. Our Advisor will select policy specifications and insured limits that it believes to be appropriate and adequate given the relative risk of loss, the cost of the coverage and industry practice. Insurance policies on our properties may include some coverage for losses that are generally catastrophic in nature, such as losses due to terrorism, earthquakes and floods, but we cannot assure you that it will be adequate to cover all losses and some of our policies will be insured subject to limitations involving large deductibles or co-payments and policy limits that may not be sufficient to cover losses. In general, losses related to terrorism are becoming harder and more expensive to insure against. In some cases, the insurers exclude terrorism, in others the coverage against terrorist acts is limited, or available only for a significant price. A similar dynamic has been unfolding with respect to certain weather and fire events, with insurers excluding certain investments that have high risk of weather, earthquake or fire events. As the effects of climate change increase, we expect the frequency and impact of weather- and climate-related events and conditions could increase as well. Climate change may also increase the cost of, or decrease the availability of, property insurance on terms we find acceptable. As a result of these risk factors, not all investments may be insured against terrorism, weather or fire. If we or one or more of our tenants experience a loss that is uninsured or that exceeds policy limits, we could lose the capital invested in the damaged properties as well as the anticipated future cash flows from those properties. In addition, if the damaged properties are subject to recourse indebtedness, we would continue to be liable for the indebtedness, even if these properties were irreparably damaged. Certain of these events, such as war or an outbreak of an infectious disease, could have a broader negative impact on the global or local economy, thereby affecting us or our Advisor.

***We could become subject to liability for environmental violations, regardless of whether we caused such violations.***

We could become subject to liability in the form of fines or damages for noncompliance with environmental laws and regulations. These laws and regulations generally govern wastewater discharges, air emissions, the operation and removal of underground and above-ground storage tanks, the use, storage, treatment, transportation and disposal of solid hazardous materials, the remediation of contaminated property associated with the disposal of solid and hazardous materials and other health and safety-related concerns. Some of these laws and regulations may impose joint and several liability on tenants, owners or managers for the costs of investigation or remediation of contaminated properties, regardless of fault or the legality of the original disposal. Under various federal, state and local environmental laws, ordinances and regulations, a current or former owner or manager of real property may be liable for the cost to remove or remediate hazardous or toxic substances, wastes or petroleum products on, under, from or in such property. These costs could

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be substantial and liability under these laws may attach whether or not the owner or manager knew of, or was responsible for, the presence of such contamination. Even if more than one person may have been responsible for the contamination, each liable party may be held entirely responsible for all of the clean-up costs incurred.

In addition, third parties may sue the owner or manager of a property for damages based on personal injury, natural resources, property damage or for other costs, including investigation and clean-up costs, resulting from the environmental contamination. The presence of contamination on one of our properties, or the failure to properly remediate a contaminated property, could give rise to a lien in favor of the government for costs it may incur to address the contamination, or otherwise adversely affect our ability to sell or lease the property or borrow using the property as collateral. In addition, if contamination is discovered on our properties, environmental laws may impose restrictions on the manner in which the property may be used or businesses may be operated, and these restrictions may require substantial expenditures or prevent us from entering into leases with prospective tenants. There can be no assurance that future laws, ordinances or regulations will not impose any material environmental liability, or that the environmental condition of our properties will not be affected by the operations of the tenants, by the existing condition of the land, by operations in the vicinity of the properties. There can be no assurance that these laws, or changes in these laws, will not have a material adverse effect on our business, results of operations or financial condition. We could also suffer losses if reserves or insurance proceeds prove inadequate to cover any such matters. The cost to perform any remediation, and the cost to defend against any related claims, could exceed the value of the relevant investment, and in such cases we could be forced to satisfy the claims from other assets and investments. We may have an indemnity from a third party purporting to cover these liabilities, but there can be no assurance as to the financial viability of any indemnifying party at the time a claim arises. We may also provide such an indemnity to a purchaser of a property, which could adversely affect the profitability of any such disposition. In addition, some environmental laws create a lien on a contaminated asset in favor of governments or government agencies for costs they may incur in connection with the contamination.

***Our costs associated with complying with the Americans with Disabilities Act of 1990 (the "ADA") may affect cash available for distributions.***

Any domestic properties we acquire will generally be subject to the ADA. Under the ADA, all places of public accommodation are required to comply with federal requirements related to access and use by disabled persons. The ADA has separate compliance requirements for "public accommodations" and "commercial facilities" that generally require that buildings and services be made accessible and available to people with disabilities. The ADA's requirements could require removal of access barriers and could result in the imposition of injunctive relief, monetary penalties or, in some cases, an award of damages. We may not acquire properties that comply with the ADA or we may not be able to allocate the burden on the seller or other third party, such as a tenant, to ensure compliance with the ADA in all cases.

***The properties we acquire will be subject to property taxes that may increase in the future, which could adversely affect our cash flow.***

Any properties we acquire will be subject to real and personal property taxes that may increase as property tax rates change and as the properties are assessed or reassessed by taxing authorities. Some of our leases may provide that the property taxes, or increases therein, are charged to the lessees as an expense related to the properties that they occupy. As the owner of the properties, however, we are ultimately responsible for payment of the taxes to the government. If property taxes increase, our tenants may be unable (or may not be obligated) to make the required tax payments, ultimately requiring us to pay the taxes. In addition, we are generally responsible for property taxes related to any vacant space. If we purchase student housing properties, the leases for such properties typically will not allow us to pass through real estate taxes and other taxes to residents of such properties. Consequently, any tax increases may adversely affect our results of operations at such properties.

***We may be exposed to third party liability, which can reduce the performance of any associated investment.***

The actions or omissions of any third-party operator, employee, guest or resident of our properties may involve criminal or civil liability, which could result in liability to us as owners of, or lenders to, such properties, loss of or restrictions on required licenses, fines, litigation, reputational impact and other matters that may adversely affect our performance.

***Certain of our investments may have additional capital requirements.***

We may acquire properties, including those that may be in a development phase, that will require additional financing to satisfy their working capital requirements or development strategies. The amount of such additional financing needed will depend upon the maturity and objectives of the particular asset, and such financings may be only available at an unfavorable rate at such time. Each round of financing (whether from us or other investors) is typically intended to provide enough capital to reach the next major milestone in such asset's lifecycle. If the funds provided are not sufficient, additional capital may be required to be raised at a price unfavorable to the existing investors, including us. In addition, we may make additional debt and equity investments or exercise warrants, options, convertible securities or other rights that were acquired in the initial investment in such property in order to preserve our proportionate ownership when a subsequent financing is planned, or to protect our investment when such property's performance does not meet expectations. The availability of capital is generally a function of capital market conditions that are beyond our control. There can be no

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assurance that we will be able to predict accurately the future capital requirements necessary for success or that additional funds will be available from any source. Failure to provide sufficient additional capital with respect to an investment could adversely affect our performance.

***Technological or other innovations may disrupt the markets and sectors in which we operate and subject us to increased competition or negatively impact the tenants of our properties and the value of our properties***.

In this period of rapid technological and commercial innovation, new businesses and approaches may be created that could affect us, tenants of our properties or our investments or alter the market practices that help frame our strategy. For example, the value of our healthcare facility properties may be affected by the expansion of telehealth and our medical outpatient properties may be affected by competition from shared office spaces (including co-working environments). Any of these new approaches could damage our investments, significantly disrupt the market in which we operate and subject us to increased competition, which could materially and adversely affect our business, financial condition and results of investments. Moreover, given the pace of innovation in recent years, the impact on a particular investment may not be foreseeable at the time we make the investment. Furthermore, we could base investment decisions on views about the direction or degree of innovation that prove inaccurate and lead to losses.

***Any self-storage investments will be subject to risks from fluctuating demand and competition in the self-storage industry.***

Any self-storage investments will be subject to operating risks common to the self-storage industry, which include business layoffs or downsizing, industry slowdowns, relocation of businesses and changing demographics, changes in supply of, or demand for, similar or competing self-storage properties in an area and the excess amount of self-storage space in a particular market, changes in market rental rates and inability to collect rents from customers. The self-storage industry has at times experienced overbuilding in response to perceived increases in demand. A recurrence of overbuilding might cause our self-storage investments to experience a decrease in occupancy levels, as well as limit the ability to increase rents and offer discounted rents.

***There is significant competition among self-storage owners and operators and from other storage alternatives.***

Our self-storage properties will compete with other owners and operators of self-storage properties in its market. The number of competing self-storage properties in the market could have a material effect on occupancy levels, rental rates and on the operating expenses of each of our self-storage investments. It is possible that customers will move to existing or new self-storage facilities in the surrounding area, which could adversely affect the financial performance of such property. The continued development of new self-storage properties has intensified the competition among storage operators in many markets. If competitors build new facilities that compete with our properties or offer space at rental rates below the rental rates charged at our properties, such properties may lose potential customers and the tenant may be pressured to discount rental rates to retain customers.

***We could be negatively impacted by the condition of the Federal National Mortgage Association ("Fannie Mae") and the Federal Home Loan Mortgage Corporation ("Freddie Mac") and by changes in government support for student housing.***

Fannie Mae and Freddie Mac are a source of financing for student housing real estate in the United States. We may utilize loan programs sponsored by these entities as a key source of capital to finance our growth and our operations. In September 2008, the U.S. government increased its control of Fannie Mae and Freddie Mac and placed both companies into a government conservatorship under the Federal Housing Finance Agency. In December 2009, the U.S. Treasury increased its financial support for these conservatorships. In February 2011, the Obama administration released its blueprint for winding down Fannie Mae and Freddie Mac and for reforming the system of housing finance. Since that time, members of Congress have introduced and Congressional committees have considered a substantial number of bills that include comprehensive or incremental approaches to winding down Fannie Mae and Freddie Mac or changing their purposes, businesses or operations. A decision by the U.S. government to eliminate or downscale Fannie Mae or Freddie Mac or to reduce government support for student housing more generally may adversely affect interest rates, capital availability, development of student housing communities and the value of student housing assets and, as a result, may adversely affect our future growth and operations. Any potential reduction in loans, guarantees and credit-enhancement arrangements from Fannie Mae and Freddie Mac could jeopardize the effectiveness of the student housing sector's derivative securities market, potentially causing breaches in loan covenants, and through reduced loan availability, impact the value of student housing assets, which could impair the value of a significant portion of student housing communities. Specifically, the potential for a decrease in liquidity made available to the student housing sector by Fannie Mae and Freddie Mac could:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•make it more difficult for us to secure new takeout financing for any student housing development projects we acquire;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•hinder our ability to refinance any completed student housing assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•decrease the amount of available liquidity and credit that could be used to broaden our portfolio through the acquisition of student housing assets; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•require us to obtain other sources of debt capital with potentially different terms.

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***Climate change and regulatory and other efforts to reduce climate change could adversely affect our business.***

We face a number of risks associated with climate change including both transition and physical risks. The transition risks that could impact our company include those risks related to the impact of U.S. and foreign climate- and environmental, social and governance ("ESG")-related legislation and regulation, as well as risks arising from climate-related business trends. Moreover, we are subject to risks stemming from the physical impacts of climate change.

New climate change-related regulations or interpretations of existing laws may result in enhanced disclosure obligations that could negatively affect us and materially increase our regulatory burden. Increased regulations generally increase the costs to us, and those higher costs may continue to increase if new laws require additional resources, including spending more time, hiring additional personnel or investing in new technologies.

We also face business trend-related climate risks. Investors are increasingly taking into account ESG factors, including climate risks, in determining whether to invest in companies. Additionally, our reputation and investor relationships could be damaged as a result of our involvement with certain industries or assets associated with activities perceived to be causing or exacerbating climate change, as well as any decisions we make to continue to conduct or change our activities in response to considerations relating to climate change.

Further, significant physical effects of climate change including extreme weather events such as hurricanes or floods can also have an adverse impact on our real estate assets. As the effects of climate change increase, we expect the frequency and impact of weather and climate related events and conditions to increase as well. For example, unseasonal or violent weather events can have a material impact to businesses or properties that focus on tourism or recreational travel.

***Any student housing operations will be subject to an annual leasing cycle, short lease-up period, seasonal cash flows, changing university admission and housing policies and other risks inherent in the student housing industry.***

Residential leases typically have terms of 12 months, all of which begin and end on the same schedule. Accordingly, each student housing property must be entirely re-leased to residents each year, exposing us to increased leasing risk. In addition, student housing properties are typically leased during a limited leasing season. Each student housing property therefore will be highly dependent on the effectiveness of its property manager's marketing and leasing efforts and personnel during this season.

Additionally, residents may be more likely to default on their lease obligations during the summer months, which could further reduce our revenues during this period. Although property managers will typically require the residential leases to be guaranteed by a parent, we may have to spend considerable effort and expense in pursuing payment upon defaulted leases, and such efforts may not be successful.

Changes in university admission policies could adversely affect us. For example, if a university reduces the number of student admissions or requires that a certain class of students, such as freshman, live on campus, the demand for beds at our student housing properties may be reduced and occupancy rates may decline. While our property managers may engage in marketing efforts to compensate for such change in admission policies, the property managers may not be able to affect such marketing efforts prior to the commencement of the annual lease-up period, or its additional marketing efforts may not be successful.

The demand for student housing has been, and may in the future be, impacted by epidemics or pandemics, such as the COVID-19 pandemic, where students could be restricted from living in student housing for all or a considerable portion of the academic school year (or may otherwise have less desire to live in student housing, such as where classes are taught online during such period). In such circumstances, student housing properties may remain unoccupied and accordingly may not generate any revenue and cash flow during such time and the value of an investment in such properties may be adversely affected.

Federal and state laws require colleges to publish and distribute reports of on-campus crime statistics, which may result in negative publicity and media coverage associated with crimes occurring on or in the vicinity of a student housing property. Reports of crime or other negative publicity regarding the safety of the students residing on, or near, a student housing property may have an adverse effect on both on-campus and off-campus businesses.

***The financial performance of any student housing properties will be dependent upon the residents.***

The financial performance of any student housing properties will depend on the performance of the residents and their payment of rent under their respective residential leases. Additionally, residents of student housing are inherently transient and the student housing properties will face significant resident turnover as students graduate or otherwise cease to attend the respective universities. If a large number of residents default or become unable to make rental payments when due, decide not to renew their residential agreements or decide to terminate their residential agreements, this could result in a significant reduction in rental revenues, which could require us to contribute additional capital or obtain alternative financing to meet obligations under our loans. In addition, the costs and time involved in enforcing rights under a residential lease with a resident, including eviction and re-leasing costs, may be substantial and could be

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greater than the value of such residential lease. There can be no assurance that we will be able to successfully pursue and collect from defaulting residents or re-let the premises to new residents without incurring substantial costs, if at all.

Our ability to retain and attract tenants and to increase rental rates as necessary will depend on factors both within and beyond our control. These factors include changing student housing and demographic trends and traffic patterns, the availability and rental rates of competing dormitories or private residential space, general and local economic conditions, the growth and success of the respective universities, and the financial viability of the residents.

The loss of residents and the inability to maintain favorable rental rates with respect to a student housing property would adversely affect our viability and the value of such property. Although insurance will be obtained with respect to the student housing properties to cover casualty losses and general liability and business interruption, no other insurance will be available to cover losses from ongoing operations. The occurrence of a casualty resulting in damage to a student housing property could decrease or interrupt the payment of residents' rent at such property.

***Increased competition and increased affordability of private student housing could limit our ability to retain residents, lease units or increase or maintain rents.***

The student housing sector is highly competitive. We expect to face competition from many sources, including public dormitories and other private student housing, both in the immediate vicinity and in the geographic market where our properties may be located. Any student housing properties' competitors may have greater experience and financial resources than we do, giving them an advantage in attracting tenants to their properties. In addition, universities may provide new or updated student housing facilities that have advantages over our student housing properties or private student housing in general, such as affordability and proximity to campus. If the costs of college education continue to rise, students at the universities may be unwilling or unable to afford luxury private student housing and may choose more cost-effective housing as an alternative to our student housing properties. Competitors may be willing to offer units at rental rates below the rental rates at our properties, which may cause us to lose residents and to reduce rental rates to retain existing residents or convince new residents to lease space at the property. In the event that residents are unable to pay rent or satisfy their obligations under their leases, we may experience loss of income.

***The hospitals on or near the campus where our medical outpatient buildings are located and their affiliated health systems could fail to remain competitive or financially viable, which could adversely impact their ability to attract physicians and other healthcare-related tenants to our medical outpatient buildings.***

We may acquire medical outpatient buildings in the future. Our medical outpatient building operations will generally depend on the competitiveness and financial viability of the hospitals on or near the campus where our medical outpatient buildings are located and their ability to attract physicians and other healthcare-related tenants to our medical outpatient buildings. The viability of these hospitals, in turn, depends on factors such as the quality and mix of healthcare services provided, competition for patients, physicians and physician groups, demographic trends in the surrounding community, market position and growth potential, as well as the ability of the affiliated health systems to provide economies of scale and access to capital. If a hospital on or near the campus where one of our medical outpatient buildings is located fails or becomes unable to meet its financial obligations, and if an affiliated health system is unable to support that hospital, the hospital may be unable to compete successfully or could be forced to close or relocate, which could adversely impact its ability to attract physicians and other healthcare-related clients. To the extent that we rely on proximity to and affiliations with hospitals to create leasing demand in our medical outpatient buildings, our medical outpatient buildings operating results could be materially and adversely affected by a hospital's inability to remain competitive or financially viable, or to attract physicians, physician groups and other healthcare-related tenants.

***Our healthcare properties and their tenants may be unable to compete successfully, which could negatively affect our tenants' businesses and ability to pay rent to us.***

Our healthcare properties often face competition from nearby hospitals and other healthcare facilities that provide comparable services, including urgent care and primary care facilities as well as home healthcare companies. These competitors may have greater geographic coverage, better access to physicians and patients and provide or are perceived to provide higher quality services. From time to time and for reasons beyond our control, managed care organizations may change their lists of preferred hospitals or in-network physicians, which may favor our tenants' competitors. Furthermore, our tenants may lose physicians to their competitors or an increase in telehealth services could reduce the need for healthcare facilities. Any reduction in rental revenues resulting from the inability of our tenants or their associated healthcare delivery systems to compete or due to a reduced need for healthcare facilities generally may have a material adverse effect on our business, financial condition, results of operations, our ability to make distributions to our stockholders and the trading price of our common and preferred stock.

***We may invest in healthcare-related properties subject to net leases, which could subject us to losses.***

We may invest in healthcare-related properties subject to net leases. Typically, net leases require the tenants to pay substantially all of the operating costs associated with the properties. As a result, the value of, and income from, investments in healthcare-related or medical

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outpatient properties subject to net leases will depend, in part, upon the ability of the applicable tenant to meet its obligations to maintain the property under the terms of the net lease. If a tenant fails or becomes unable to so maintain a property, we will be subject to all risks associated with owning the underlying real estate. In addition, we may have limited oversight into the operations or the managers of these properties, subject to the terms of the net leases.

Certain of our healthcare-related or medical outpatient properties subject to net leases may be occupied by a single tenant and, therefore, the success of such investments is largely dependent on the financial stability of each such tenant. A default of any such tenant on its lease payments to us would cause us to lose the revenue from the property and cause us to have to find an alternative source of revenue to meet any mortgage payment and prevent a foreclosure if the property is subject to a mortgage. In the event of a default, we may experience delays in enforcing our rights as landlord and may incur substantial costs in protecting our investment and reletting our property. If a lease is terminated, we may also incur significant losses to make the leased premises ready for another tenant and experience difficulty or a significant delay in re-leasing such property.

In addition, net leases typically have longer lease terms, and thus there is an increased risk that contractual rental increases in future years will fail to result in fair market rental rates during those years.

***Any investments in life sciences properties are subject to unique risks.***

Life science properties and their tenants are subject to a number of unique risks, the occurrence of any could adversely affect our results of operations and financial condition. In particular, life science tenants are subject to a number of risks unique to their industry, including (a) high levels of regulation including increasing government price controls and other healthcare cost containment measures, (b) failures in the safety and efficacy of their products, (c) significant funding requirements for product research and development, and (d) changes in technology, patent expiration, and intellectual property protection. These risks may adversely affect their ability to make rental payments to us or satisfy their other lease obligations and consequently may materially adversely affect property revenue and valuation.

In addition, improvements to life science properties are typically more costly than improvements to traditional office space or other property types. Many life science properties generally contain infrastructure improvements that are significantly more costly than improvements to other property types. Typical improvements include (a) reinforced concrete floors, (b) upgraded roof loading capacity, (c) increased floor-to-ceiling heights, (d) heavy-duty HVAC systems, (e) enhanced environmental control technology, (f) significantly upgraded electrical, gas, and plumbing infrastructure, and (g) laboratory benches.

Further, life sciences tenants may engage in research and development activities that involve controlled use of hazardous materials, chemicals, and biological and radioactive compounds. In the event of contamination or injury from the use of these hazardous materials, we could be held liable for damages that result. This liability could exceed our resources and any recovery available through any applicable insurance coverage, which could adversely affect our ability to make distributions to our stockholders. Together with our tenants, we must comply with federal, state, and local laws and regulations governing the use, manufacture, storage, handling, and disposal of hazardous materials and waste products. Failure to comply with these laws and regulations, or changes thereto, could adversely affect our business or our tenants' businesses and their ability to make rental payments to us.

***Adverse trends in the healthcare service industry may negatively affect our revenues.***

The financial performance of each healthcare property depends on the ability of the tenants to generate sufficient income from its operations to make rent payments. As part of the healthcare service industry, tenants face a wide range of economic, competitive, government reimbursement and regulatory pressures and constraints. In addition, the healthcare service industry in which tenants operate may be affected by various trends, including the following: trends in the method of delivery of healthcare services; competition among healthcare providers; lower reimbursement rates from government and commercial payors, high uncompensated care expense, investment losses and limited admissions growth pressuring operating profit margins for healthcare providers; liability insurance expense; regulatory and government reimbursement uncertainty resulting from the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010; health reform initiatives to address healthcare costs through expanded value-based purchasing programs, bundled provider payments, accountable care organizations, state health insurance exchanges, increased patient cost-sharing, geographic payment variations, comparative effectiveness research, and lower payments for hospital readmissions; federal and state government plans to reduce budget deficits and address debt ceiling limits by lowering healthcare provider Medicare and Medicaid payment rates, while requiring increased patient access to care; congressional efforts to reform the Medicare physician fee-for-service formula that dictates annual updates in payment rates for physician services; heightened health information technology security standards for healthcare providers; and potential tax law changes affecting non-profit providers. These changes, among others, may adversely affect the economic performance of our tenants and, in turn, negatively affect the revenues and the value of our healthcare properties.

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***Reductions in reimbursement from third party payors, including Medicare and Medicaid, could adversely affect the profitability of certain tenants and hinder their ability to make rent payments.***

Sources of revenue for certain tenants may include the federal Medicare program, state Medicaid programs, private insurance carriers and health maintenance organizations, among others. Efforts by such payors to reduce healthcare costs will likely continue, which may result in reductions or slower growth in reimbursement for certain services provided by such tenants. In addition, the healthcare billing rules and regulations are complex, and the failure of the tenants to comply with various laws and regulations could jeopardize their ability to continue participating in Medicare, Medicaid and other government sponsored payment programs. Moreover, the state and federal governmental healthcare programs are subject to reductions by state and federal legislative actions.

The healthcare industry continues to face various challenges, including increased government and private payor pressure on healthcare providers to control or reduce costs. It is possible that the tenants will continue to experience a shift in payor mix away from fee-for-service payors, resulting in an increase in the percentage of revenues attributable to managed care payors and general industry trends that include pressures to control healthcare costs. Pressures to control healthcare costs and a shift away from traditional health insurance reimbursement to managed care plans have resulted in an increase in the number of patients whose healthcare coverage is provided under managed care plans, such as health maintenance organizations and preferred provider organizations. In 2014, state insurance exchanges were implemented, thus providing a new mechanism for individuals to obtain insurance. At this time, the number of payors that are participating in the state insurance exchanges varies, and in some regions there are very limited insurance plans available for individuals to choose from when purchasing insurance. In addition, not all healthcare providers will maintain participation agreements with the payors that are participating in the state health insurance exchange. Therefore, it is possible that tenants may incur changes in their reimbursements if they do not have participation agreements with the state insurance exchange payors and a large number of individuals elect to purchase insurance from the state insurance exchange. Further, the rates of reimbursement from the state insurance exchange payors to healthcare providers will vary greatly. The rates of reimbursement will be subject to negotiation between the healthcare provider and the payor, which may vary based upon the market, the healthcare provider's quality metrics, the number of providers participating in the area and the patient population, among other factors. Therefore, it is uncertain whether healthcare providers will incur a decrease in reimbursement from the state insurance exchange, which may impact tenants' operations and ability to pay rent. In addition, the health insurance exchange provides a subsidy for some individuals to obtain insurance depending upon the individual's income and a number of other factors.

In addition, federal and state healthcare legislation may from time to time introduce new payment models, including shared savings programs, demonstration programs, bundled payment models, and payments contingent upon reporting on satisfaction of quality benchmarks. Such legislative changes may materially alter how physicians and other healthcare providers are compensated for services. Additionally, because certain tenants may rely on government programs or agencies as a source of funding, such tenants may be adversely affected by changes in government spending and funding priorities. Funding from government agencies and reimbursement programs such as Medicare and Medicaid, including the overall availability and reimbursement rates under these programs, often fluctuates and is subject to the political process, which is often unpredictable. For example, federal policymakers have announced proposals to reduce overall healthcare spending, including with respect to Medicaid funding, which could impact certain tenants. Any reduction in the availability or rate of funding or reimbursement, or delays surrounding the approval of such funding or reimbursement, may adversely impact certain tenants' operations or may cause certain tenants to cease making rent payment payments to us or delay or forgo leasing space in our properties, which in turn may negatively impact our business, financial condition, or results of operations. These changes could have a material adverse effect on the financial condition of our healthcare tenants. The financial impact on healthcare tenants could restrict their ability to make rent payments, which would have a material adverse effect on our financial condition and results of operations and our ability to pay distributions.

***The healthcare industry is heavily regulated and new laws or regulations, changes to existing laws or regulations, loss of licensure, failure to obtain licensure or other industry developments could result in the inability of the tenants of our healthcare properties to pay rent.***

The healthcare industry is heavily regulated by federal, state and local governmental bodies. The tenants in our healthcare properties generally will be subject to laws and regulations covering, among other things, licensure, certification for participation in government programs, and relationships with physicians and other referral sources. Changes in these laws and regulations or the tenants' failure to comply with these laws and regulations could negatively affect the ability of these tenants to make lease payments to us. Many of our healthcare properties and their tenants may require a license or certificate of need, or "CON," to operate. Failure to obtain a license or CON, or loss of a required license or CON, would prevent a facility from operating in the manner intended by the tenant. These events could materially adversely affect our tenants' ability to make rent payments to us. We cannot predict the impact of state CON laws or similar laws on the operations of our tenants. In addition, state CON laws often materially impact the ability of competitors to enter into the marketplace of our healthcare properties. The repeal of CON laws could allow competitors to freely operate in previously closed markets. This could negatively affect our tenants' abilities to make lease payments to us.

The healthcare industry currently is experiencing rapid regulatory changes and uncertainty; changes in the demand for and methods of delivering healthcare services; changes in third-party reimbursement policies; expansion of insurance providers into patient care;

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continuing pressure by private and governmental payors to reduce payments to providers of services; and increased scrutiny of billing, referral and other practices by governmental authorities. These factors may adversely affect the economic performance of some or all of our healthcare tenants and, in turn, our performance.

***We may be exposed to the risks of investing in senior living communities.***

We may invest in senior living communities, including but not limited to assisted care and memory care facilities. Revenues from senior living communities are primarily driven by occupancy and private pay rates. A weakened economy may have an adverse effect on the residents of these properties. If the operations' cash flows are materially adversely impacted by economic conditions, these properties' revenues and operations may be adversely affected. Additionally, senior living communities may be subject to a reduced availability of labor and increased employee costs and are subject to operational hazards and health-related risks, each of which may be exacerbated by the persistence of COVID-19. Finally, government reimbursement has, and may continue to, come under pressure due to reimbursement cuts and state budget shortfalls. This could have a negative impact on the industry and impact the value of senior living communities. Senior living communities are generally subject to varying levels of federal, state, local, and industry-regulated licensure, certification and inspection laws, regulations and standards and may require licenses, registrations or certificates of need to operate. Failure to comply with any of these laws, regulations or standards could result in loss of accreditation, denial of reimbursement, imposition of fines, suspension, decertification or exclusion from federal and state health care programs, loss of license or closure of the facility. Such actions may adversely affect the profitability of these facilities and the value of our investment in them.

***There are inherent risks in the senior living sector.***

We will be subject to the risks generally incident to the ownership of independent living, assisted living and memory care facilities. Several factors may adversely affect the economic performance and value of the properties in the senior living sector. The following details certain inherent risks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Increases in newly developed senior living communities and other competitive factors may have a material adverse effect on our senior living communities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The current trend for seniors to delay moving to senior living communities until they require greater care or to forgo moving to senior living communities altogether could have a material adverse effect on our senior living communities' business, financial condition and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Circumstances that adversely affect the ability of seniors or their families to pay for senior living services, such as economic downturns, softness in the U.S. housing market, higher levels of unemployment among resident family members, lower levels of consumer confidence, stock market volatility and/or changes in demographics, could cause our senior living communities' occupancy rates, revenues and results of operations to decline.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The senior living sector is subject to extensive regulation, which may require us to incur significant costs and may cause us to experience losses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The nature of the senior living sector exposes us to litigation and regulatory and government proceedings.

***The current trend for seniors to delay moving to senior living communities until they require greater care or to forgo moving to senior living communities altogether could have a material adverse effect on our business, financial condition and results of operations.***

Seniors have been increasingly delaying their moves to senior living communities until they require greater care, and increasingly forgoing moving to senior living communities altogether. Further, rehabilitation therapy and other services are increasingly being provided to seniors on an outpatient basis or in seniors' personal residences in response to market demand and government regulation, which may increase the trend for seniors to delay moving to senior living communities. Such delays may cause decreases in occupancy rates and increases in resident turnover rates at any senior living communities. Moreover, older aged persons may have greater care needs and require higher acuity services, which may increase our cost of business or result in lost business and shorter stays at our senior living communities if we are not able to provide the requisite care services or fail to adequately provide those services. These trends may negatively impact any senior living communities' occupancy rates, revenues and cash flows and their results of operations. Further, if we are unable to offset lost revenues from these trends by providing and growing other revenue sources, such as new or increased service offerings to seniors, our senior living communities may be unprofitable and we may receive lower returns and rent and the value of the senior living communities may decline.

***Increases in labor costs at senior living communities may have a material adverse effect on us.***

Wages and employee benefits associated with the operations of managed senior living communities represent a significant part of managed senior living communities' operating expenses. The U.S. labor market has been experiencing an extended period of low unemployment. Further, there has been recent legislation enacted and proposed legislation to increase the minimum wage in certain jurisdictions. This, in turn, has put upward pressure on wages. Our property managers will compete with other senior living community operators, among others, to attract and retain qualified personnel responsible for the day to day operations of the property, and senior living communities have been experiencing increasing labor costs. We cannot be sure that labor costs at our properties will not similarly

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increase or that any increases will eventually be recovered by corresponding increases in the rates charged to residents or otherwise. Any significant failure by our property managers to prudently control labor costs or to pass any increases on to residents through rate increases could have a material adverse effect on the business, financial condition and results of operations of the property.

The market for qualified nurses, therapists and other healthcare professionals is highly competitive, and periodic or geographic area shortages of such healthcare professionals may require our property managers to increase the wages and benefits they offer to their employees in order to attract and retain such personnel or to utilize temporary personnel at an increased cost. Moreover, the low level of unemployment in the United States currently may result in our property managers being unable to fully staff its senior living communities or having to pay overtime to adequately staff its senior living communities.

In addition, employee benefit costs, including health insurance and workers' compensation insurance costs, have materially increased in recent years and we cannot predict the future impact of the Affordable Care Act ("ACA"), or the possible future repeal, replacement or modification of the ACA, on the cost of employee health insurance. Our property managers' employee health insurance and workers' compensation insurance reserves may prove to be inadequate. Increasing employee health insurance and workers' compensation insurance costs and increasing insurance reserves for labor related insurance may be considered property operating expenses under the property management agreement and as such may materially and adversely affect the financial performance of the property.

***Federal, state and local employment related laws and regulations could increase the cost of doing business at our senior living communities, and our property managers may fail to comply with such laws and regulations.***

The operations at our senior living communities will be subject to a variety of federal, state and local employment related laws and regulations, including, but not limited to, the U.S. Fair Labor Standards Act, which governs such matters as minimum wages, the Family and Medical Leave Act, overtime pay, compensable time, recordkeeping and other working conditions, and a variety of similar laws that govern these and other employment related matters. Because labor represents a significant portion of operating expenses at senior living communities, compliance with these evolving laws and regulations could substantially increase the cost of doing business at our senior living communities, while failure to do so could subject the property manager and us to significant back pay awards, fines and lawsuits. Our property manages' failure to comply with federal, state and local employment related laws and regulations could have a material adverse effect on our business, financial condition and results of operations.

***The nature of the senior living sector will expose us and our property managers to litigation and regulatory and government proceedings.***

We and our property managers could in the future be involved in claims, lawsuits and regulatory and government audits, investigations and proceedings arising in the ordinary course of their business, some of which may involve material amounts. The defense and resolution of such claims, lawsuits and other proceedings may require us and our property managers to incur significant expenses. In several well publicized instances, private litigation by residents of senior living communities for alleged abuses has resulted in large damage awards against senior living companies. Some lawyers and law firms specialize in bringing litigation against senior living community operators. As a result of this litigation and potential litigation, the cost of our and our property managers' liability insurance could increase. Medical liability insurance reform has at times been a topic of political debate, and some states have enacted legislation to limit future liability awards. However, such reforms have not generally been adopted, and our property managers' insurance costs may increase. Increasing liability insurance costs could have a material adverse effect on our senior living communities' business, financial condition and results of operations which could impact the returns to us.

***Depressed U.S. housing market conditions may reduce the willingness or ability of seniors to relocate to our senior living communities.***

Downturns or stagnation in the U.S. housing market could adversely affect the ability, or perceived ability, of seniors to afford our senior living communities' resident fees as prospective residents frequently use the proceeds from the sale of their homes to cover the cost of such fees. If seniors have a difficult time selling their homes, their ability to relocate to our senior living communities or finance their stays at such properties with private resources could be adversely affected. If U.S. housing market conditions reduce seniors' willingness or ability to relocate to our senior living communities, the occupancy rates, revenues and cash flows at such properties could be negatively impacted.

***Our property managers may fail to comply with laws relating to the operation of our senior living communities.***

We and our properties managers are subject to, or impacted by, extensive and frequently changing federal, state and local laws and regulations, including: licensure laws; laws protecting consumers against deceptive practices; laws relating to the operation of our senior living communities and how our property managers conduct their operations, such as with respect to health and safety, fire and privacy matters; laws affecting communities that participate in Medicaid; laws affecting skilled nursing facilities, clinics and other healthcare facilities that participate in both Medicare and Medicaid which mandate allowable costs, pricing, reimbursement procedures and limitations, quality of services and care, food service; resident rights laws (including abuse and neglect laws) and fraud laws;

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anti-kickback and physician referral laws; the Americans with Disabilities Act and similar laws; and safety and health standards established by the Occupational Safety and Health Administration.

Our property managers will need to expend significant resources to maintain compliance with these laws and regulations. However, if our property managers are alleged to fail, or do fail, to comply with applicable legal requirements, they may have to expend significant resources to respond to such allegations, and if they are not permitted or are unable to cure deficiencies, certain sanctions may be imposed which may adversely affect the profitability of the senior living community and our property managers' ability to obtain, renew or maintain licenses at such property. Changes in applicable regulatory frameworks could also have similar adverse effects.

***We may invest in properties where revenues are dependent on funding from government programs.***

We may invest in residential properties where revenues are fully or partially dependent on funding from government programs, including affordable housing programs and Medicare or Medicaid reimbursements. Given this reliance, the performance of such properties is susceptible to risks associated with governmental programs and funding generally, including changing political support for different kinds of programs, temporary cessations in funding due to delays in legislative or bureaucratic processes, and ongoing governmental audits or inspections.

***We depend on the availability of public utilities and services, especially for water and electric power. Any reduction, interruption or cancellation of these services may adversely affect us.***

Public utilities, especially those that provide water and electric power, are fundamental for the sound operation of our assets. The delayed delivery or any material reduction or prolonged interruption of these services could allow tenants to terminate their leases or result in an increase in our costs, as we may be forced to use backup generators or other replacements for the reduced or interrupted utilities, which also could be insufficient to fully operate our facilities and could result in our inability to provide services.

***Certain properties may require permits or licenses.***

A license, approval or permit may be required to acquire certain investments and their direct or indirect holding companies (or registration may be required before an acquisition can be completed). There can be no guarantee of when and if such a license, approval or permit will be obtained or if the registration will be effected.

***We face legal risks when making investments.***

Investments are usually governed by a complex series of legal documents and contracts. As a result, the risk of dispute over interpretation or enforceability of the documentation may be higher than for other investments. In addition, it is not uncommon for investments to be exposed to a variety of other legal risks. These can include, but are not limited to, environmental issues, land expropriation and other property-related claims, industrial action and legal action from special interest groups.

***We may incur contingent liabilities in connection with the disposition of investments.***

In connection with the disposition of an investment, we may be required to make certain representations about the business, financial affairs and other aspects (such as environmental, property, tax, insurance, and litigation) of such investment typical of those made in connection with the sale of a business or other investment comparable to the investment being sold. We may also be required to indemnify the purchasers of such investment to the extent that any such representations are inaccurate or with respect to certain potential liabilities. These arrangements may result in the incurrence of contingent liabilities for which the Advisor may establish reserves or escrow accounts.

**General Risks Related to Investments in Real Estate-Related Securities**

***Investments in real estate debt are subject to risks including various credit risks and early redemption features, which may materially adversely affect our results of operations and financial condition.***

The debt and other interests in which we may invest may include secured or unsecured debt at various levels of an issuer's capital structure. The real estate debt in which we may invest may not be protected by financial covenants or limitations upon additional indebtedness, may be illiquid or have limited liquidity, and may not be rated by a credit rating agency. Real estate debt is also subject to other creditor risks, including (i) the possibility that the debt will be uncollectible on account of applicable bankruptcy or similar laws affecting the enforcement of creditors' rights, (ii) so-called lender liability claims by the issuer of the obligation and (iii) environmental liabilities that may arise with respect to collateral securing the obligations. Our investments may be subject to early redemption features, refinancing options, pre-payment options or similar provisions, which could result in the issuer repaying the principal on an obligation held by us earlier than expected, resulting in a lower return to us than anticipated, or reinvesting in a new obligation at a lower return to us.

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***Debt-oriented real estate investments face a number of general market-related risks that can affect the creditworthiness of issuers, and modifications to certain loan structures and market terms make it more difficult to monitor and evaluate investments.***

Any deterioration of real estate fundamentals generally, and in the United States in particular, could negatively impact our performance by making it more difficult for issuers to satisfy their debt payment obligations, increasing the default risk applicable to issuers, and making it relatively more difficult for us to generate attractive risk-adjusted returns. Changes in general economic conditions will affect the creditworthiness of issuers and real estate collateral relating to our investments and may include economic and market fluctuations, changes in environmental and zoning laws, casualty or condemnation losses, regulatory limitations on rents, decreases in property values, changes in the appeal of properties to tenants, changes in supply and demand for competing properties in an area (as a result, for instance, of overbuilding), fluctuations in real estate fundamentals (including average occupancy and room rates for hotel properties), the financial resources of tenants, changes in availability of debt financing which may render the sale or refinancing of properties difficult or impracticable, changes in building, environmental and other laws, energy and supply shortages, various uninsured or uninsurable risks, natural disasters, political events, trade barriers, currency exchange controls, changes in government regulations (such as rent control), changes in real property tax rates and operating expenses, changes in interest rates, changes in the availability of debt financing which may render the sale or refinancing of properties difficult or impracticable, increased mortgage defaults, increases in borrowing rates, changes in consumer spending, outbreaks of an infectious disease, epidemics/pandemics or other serious public health concerns, negative developments in the economy or political climate that depress travel activity (including restrictions on travel or quarantines imposed), environmental liabilities, contingent liabilities on disposition of assets, acts of God, terrorist attacks, war (including the continuation of hostilities in various parts of the world), real estate values generally and other factors that are beyond the control of our Advisor. Such changes may develop rapidly, and it may be difficult to determine the comprehensive impact of such changes on our investments, particularly for investments that may have inherently limited liquidity. These changes may also create significant volatility in the markets for our investments, which could cause rapid and large fluctuations in the values of such investments. Recent concerns about the real estate market, rising interest rates, inflation, energy costs and geopolitical issues have contributed to increased volatility and diminished expectations for the economy and markets going forward. There can be no assurance that there will be a ready market for the resale of our debt investments because such investments may not be liquid. Illiquidity may result from the absence of an established market for the investments, as well as legal or contractual restrictions on their resale by us.

Our Advisor cannot predict whether economic conditions generally, and the conditions for real estate debt investing in particular, will deteriorate in the future. Declines in the performance of the U.S. and global economies or in the real estate debt markets could have a material adverse effect on our investment activities. In addition, market conditions relating to real estate debt investments have evolved since the Global Financial Crisis, which has resulted in a modification to certain loan structures and market terms. These changes in loan structures or market terms may make it more difficult for us to monitor and evaluate investments.

***The operating and financial risks of issuers and the underlying default risk across capital structures may adversely affect our results of operations and financial condition.***

Our securities investments will involve credit or default risk, which is the risk that an issuer or borrower will be unable to make principal and interest payments on its outstanding debt when due. The risk of default and losses on real estate debt instruments will be affected by a number of factors, including global, regional and local economic conditions, interest rates, the commercial real estate market in general, an issuer's equity and the financial circumstances of the issuer, as well as general economic conditions. Such default risk will be heightened to the extent we make relatively junior investments in an issuer's capital structure since such investments are structurally subordinate to more senior tranches in such issuer's capital structure, and our overall returns would be adversely affected to the extent one or more issuers is unable to meet its debt payment obligations when due. To the extent we hold an equity or "mezzanine" interest in any issuer that is unable to meet its debt payment obligations, such equity or mezzanine interest could become subordinated to the rights of such issuer's creditors in a bankruptcy. See "—We may invest in subordinated debt, which is subject to greater credit risk than senior debt" below. Furthermore, the financial performance of one or more issuers could deteriorate as a result of, among other things, adverse developments in their businesses, changes in the competitive environment or an economic downturn. As a result, underlying properties or issuers that we expected to be stable may operate, or expect to operate, at a loss or have significant fluctuations in ongoing operating results, may otherwise have a weak financial condition or be experiencing financial distress and subject our investments to additional risk of loss and default.

***Our debt investments will face prepayment risk and interest rate fluctuations that may adversely affect our results of operations and financial condition.***

During periods of declining interest rates, the issuer of a security or borrower under a loan may exercise its option to prepay principal earlier than scheduled, forcing us to reinvest the proceeds from such prepayment in lower-yielding securities or loans, which may result in a decline in our return. Debt investments frequently have call features that allow the issuer to redeem the security at dates prior to its stated maturity at a specified price (typically greater than par) only if certain prescribed conditions are met. An issuer may choose to redeem debt if, for example, the issuer can refinance the debt at a lower cost due to declining interest rates or an improvement in the credit standing of the issuer. In addition, the market price of our investments will change in response to changes in interest rates and other factors. During periods of declining interest rates, the market price of fixed-rate debt investments generally rises. Conversely,

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during periods of rising interest rates, the market price of such investments generally declines. The magnitude of these fluctuations in the market price of debt investments is generally greater for securities with longer maturities.

***Reinvestment risk could affect the price for our shares or their overall returns.***

Reinvestment risk is the risk that income from our portfolio will decline if we invest the proceeds from matured, traded or called securities at market interest rates that are below our real estate debt portfolio's then-current earnings rate. A decline in income could affect the NAV of our shares or their overall returns.

***Some of our securities investments may become distressed, which securities would have a high risk of default and may be illiquid.***

Although it is generally anticipated that our investments in real estate-related securities will focus primarily on non-distressed real estate (based on our belief that there is a high likelihood of repayment), our investments may become distressed following our acquisition thereof. Additionally, we may invest in real estate-related instruments that we believe are available to purchase at "discounted" rates or "undervalued" prices. Purchasing real estate-related investments at what may appear to be "undervalued" or "discounted" levels is no guarantee that these investments will generate attractive returns to us or will not be subject to further reductions in value. There is no assurance that such investments can be acquired at favorable prices, that such investments will not default or that the market for such interests will improve. In addition, the market conditions for real estate-related investments may deteriorate further, which could have an adverse effect on the performance of our investments.

During an economic downturn or recession, securities of financially troubled or operationally troubled issuers are more likely to go into default than securities of other issuers. Securities of financially troubled issuers and operationally troubled issuers are less liquid and more volatile than securities of companies not experiencing financial difficulties. The market prices of such securities are subject to erratic and abrupt market movements and the spread between bid and asked prices may be greater than normally expected. Investment in the securities of financially troubled issuers and operationally troubled issuers involves a high degree of credit and market risk. There is no assurance that our Advisor will correctly evaluate the value of the assets collateralizing such investments or the prospects for a successful reorganization or similar action.

These financial difficulties may never be overcome and may cause issuers to become subject to bankruptcy or other similar administrative proceedings, or may require a substantial amount of workout negotiations or restructuring, which may entail, among other things, an extension of the term, a substantial reduction in the interest rate, a substantial writedown of the principal of such investment and other concessions, which could adversely affect our returns on the investment. There is a possibility that we may incur substantial or total losses on our investments and in certain circumstances, subject us to certain additional potential liabilities that may exceed the value of our original investment therein.

Under certain circumstances, a lender who has inappropriately exercised control over the management and policies of a debtor may have its claims subordinated or disallowed or may be found liable for damages suffered by parties as a result of such actions. In any reorganization or liquidation proceeding relating to our investments, we may lose our entire investment, may be required to accept cash or securities with a value less than our original investment and may be required to accept different terms, including payment over an extended period of time. In addition, under certain circumstances payments to us may be reclaimed if any such payment or distribution is later determined to have been a fraudulent conveyance, preferential payment or similar transactions under applicable bankruptcy and insolvency laws. Furthermore, bankruptcy laws and similar laws applicable to administrative proceedings may delay our ability to realize on collateral for loan positions we held, or may adversely affect the economic terms and priority of such loans through doctrines such as equitable subordination or may result in a restructure of the debt through principles such as the "cramdown" provisions of the bankruptcy laws.

However, even if a restructuring were successfully accomplished, a risk exists that, upon maturity of such investment, replacement "takeout" financing will not be available, resulting in an inability by the issuer to repay the investment. Although unlikely, it is possible that our Advisor may find it necessary or desirable to foreclose on collateral securing one or more real estate debt instruments we acquire. The foreclosure process varies jurisdiction by jurisdiction and can be lengthy and expensive. Issuers often resist foreclosure actions by asserting numerous claims, counterclaims and defenses against the holder of a real estate loan, including, without limitation, lender liability claims and defenses, even when such assertions may have no basis in fact, in an effort to prolong the foreclosure action, which often prolongs and complicates an already difficult and time-consuming process. In some states or other jurisdictions, foreclosure actions can take up to several years or more to conclude. During the foreclosure proceedings, an issuer may have the ability to file for bankruptcy, potentially staying the foreclosure action and further delaying the foreclosure process. Foreclosure litigation tends to create a negative public image of the collateral property and may result in disrupting ongoing leasing, management, development and other operations of the property. In the event we foreclose on an investment, we will be subject to the risks associated with owning and operating real estate.

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***We may invest in subordinated debt, which is subject to greater credit risk than senior debt.***

We may from time to time invest in debt instruments, including junior tranches of commercial mortgage-backed securities ("CMBS"), "mezzanine" loans, junior mortgage loans or mortgage loan participations, that are subordinated in an issuer's capital structure. To the extent we invest in subordinated debt of an issuer's capital structure, including subordinated CMBS bonds or other "mezzanine" debt, such investments and our remedies with respect thereto, including the ability to foreclose on any collateral securing such investments, will be subject to the rights of holders of more senior tranches in an issuer's capital structure and, to the extent applicable, contractual inter-creditor, co-lender and participation agreement provisions.

Investments in subordinated debt involve greater credit risk of default and loss than the more senior classes or tranches of debt in an issuer's capital structure. Subordinated tranches of debt instruments (including CMBS) absorb losses from default before other more senior tranches of such instruments, which creates a risk particularly if such instruments (or securities) have been issued with little or no credit enhancement or equity. As a result, to the extent we invest in subordinate debt instruments (including CMBS), we would likely receive payments or interest distributions after, and must bear the effects of losses or defaults before, the holders of other more senior tranches of debt instruments with respect to such issuer.

***We may invest in commercial mortgage loans that are non-recourse in nature and include limited options for financial recovery in the event of default.***

We may invest from time to time in commercial mortgage loans, including mezzanine loans and B-notes, which are secured by multifamily, commercial or other properties and are subject to risks of delinquency and foreclosure and risks of loss. Commercial real estate loans are generally not fully amortizing, which means that they may have a significant principal balance or balloon payment due on maturity. Full satisfaction of the balloon payment by a commercial borrower is heavily dependent on the availability of subsequent financing or a functioning sales market, as well as other factors such as the value of the property, the level of prevailing mortgage rates, the borrower's equity in the property and the financial condition and operating history of the property and the borrower. In certain situations, and during periods of credit distress, the unavailability of real estate financing may lead to default by a commercial borrower. In addition, in the absence of any such takeout financing, the ability of a borrower to repay a loan secured by an income-producing property will depend upon the successful operation of such property rather than upon the existence of independent income or assets of the borrower. If the net operating income of the property is reduced, the borrower's ability to repay the loan may be impaired. Furthermore, we may not have the same access to information in connection with investments in commercial mortgage loans, either when investigating a potential investment or after making an investment, as compared to investments in direct real estate.

Commercial mortgage loans are usually non-recourse in nature. Therefore, if a commercial borrower defaults on the commercial mortgage loan, then the options for financial recovery are limited in nature. To the extent the underlying default rates increase with respect to the pool or tranche of commercial real estate loans in which we invest, the performance of our investments related thereto may be adversely affected. Default rates and losses on commercial mortgage loans will be affected by a number of factors, including global, regional and local economic conditions in the area where the mortgage properties are located, the borrower's equity in the mortgage property, the financial circumstances of the borrower, tenant mix and tenant bankruptcies, property management decisions, including with respect to capital improvements, property location and condition, competition from other properties offering the same or similar services, environmental conditions, real estate tax rates, operating expenses, governmental rules, regulations and fiscal policies, acts of God, terrorism, social unrest and civil disturbances. A continued decline in specific commercial real estate markets and property valuations may result in higher delinquencies and defaults and potentially foreclosures. In the event of default, the lender will have no right, other than customary recourse carveouts, to assets beyond collateral attached to the commercial mortgage loan.

In the event of any default under a mortgage or real estate loan held directly by us, we will bear a risk of loss of principal to the extent of any deficiency between the value of the collateral and the principal and accrued interest of the mortgage or real estate loan, which could have a material adverse effect on our profitability. In the event of the bankruptcy of a mortgage or real estate loan borrower, the mortgage or real estate loan to such borrower will be deemed to be secured only to the extent of the value of the underlying collateral at the time of bankruptcy (as determined by the bankruptcy court), and the lien securing the mortgage or real estate loan will be subject to the avoidance powers of the bankruptcy trustee or debtor-in-possession to the extent the lien is unenforceable under state law. Additionally, in the event of a default under any senior debt, the junior or subordinate lender generally forecloses on the equity, purchases the senior debt or negotiates a forbearance or restructuring arrangement with the senior lender in order to preserve its collateral.

***Our Advisor may aggregate purchases or sales with Inland Programs.***

Our Advisor may aggregate purchases or sales of investments for us with Inland Programs. It could be impossible, as determined by our Advisor and its affiliates in their sole discretion, to receive the same price or execution on the entire volume of securities sold, and the various prices will, in certain circumstances, therefore be averaged which may be disadvantageous to us. Further, such aggregate purchases may result in us receiving a lower allocation of an investment than we would otherwise receive if we were the sole purchaser.

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***We will face risks related to any investments in collateralized debt obligations.***

We may also invest from time to time in collateralized debt obligations ("CDOs"). CDOs include, among other things, collateralized loan obligations ("CLOs") and other similarly structured securities. A CLO is a trust typically collateralized by a pool of loans, which may include, among others, domestic and foreign senior secured loans, senior unsecured loans and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans. For CLOs, the cash flows from the trust are split into two or more portions, called tranches. CLO tranches can experience substantial losses due to actual defaults, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market anticipation of defaults and aversion to CLO securities as a class. The risks of an investment in a CDO depend largely on the type of the collateral and the class of the CDO in which we invest.

Normally, CLOs and other CDOs are privately offered and sold, and thus are not registered under the securities laws. As a result, certain investments in CDOs may be characterized as illiquid securities, and volatility in CLO and CDO trading markets may cause the value of these investments to decline. Moreover, if the underlying mortgage portfolio has been overvalued by the originator, or if the values subsequently decline and, as a result, less collateral value is available to satisfy interest and principal payments and any other fees in connection with the trust or other conduit arrangement for such securities, we may incur significant losses. Also, with respect to the CLOs and CDOs in which we may invest, control over the related underlying loans will be exercised through a special servicer or collateral manager designated by a "directing certificate holder" or a "controlling class representative," or otherwise pursuant to the related securitization documents. We may acquire classes of CLOs or CDOs for which we may not have the right to appoint the directing certificate holder or otherwise direct the special servicing or collateral management. With respect to the management and servicing of those loans, the related special servicer or collateral manager may take actions that could adversely affect our interests. In addition to the risks associated with debt instruments (e.g., interest rate risk and credit risk), CDOs carry additional risks including, but not limited to: (i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments, (ii) the quality of the collateral may decline in value or default, (iii) the possibility that we may invest in CDOs that are subordinate to other classes and (iv) the complex structure of the security may not be fully understood at the time of investment and may produce disputes with the issuer or unexpected investment results.

***We may invest in real estate corporate debt, which consists of secured and unsecured obligations issued by companies in the business of owning and/or operating real estate-related businesses.***

We may invest in corporate debt obligations of varying maturities issued by U.S. and foreign corporations and other business entities, which may include loans, corporate bonds, debentures, notes and other similar corporate debt instruments, including convertible securities. Bonds are fixed- or variable-rate debt obligations, including bills, notes, debentures, money market instruments and similar instruments and securities. Corporate debt generally is used by corporations and other issuers to borrow money from investors. The issuer pays the investor a rate of interest and normally must repay the amount borrowed on or before maturity. The rate of interest on corporate debt may be fixed, floating or variable, and may vary inversely with respect to a reference rate. The rate of return or return of principal on some debt obligations may be linked or indexed to the level of exchange rates between the U.S. dollar and a foreign currency or currencies. Debt instruments may be acquired with warrants attached. Certain bonds are "perpetual" in that they have no maturity date.

Our investments in real estate-related corporate credit will be subject to a number of risks, including interest rate risk, credit risk, high yield risk, issuer risk, foreign (non-U.S.) investment risk, inflation/deflation risk, liquidity risk, smaller company risk and management risk. We generally will not have direct recourse to real estate assets owned or operated by the issuers of the corporate debt obligations that we invest in and the value of such corporate debt obligations may be impacted by numerous factors and may not be closely tied to the value of the real estate held by the corporate issuer.

***We may invest in structured products or similar products that may include structural and legal risks.***

We may invest from time to time in structured products, including pools of mortgages, loans and other real estate-related securities. These investments may include debt securities issued by a private investment fund that invests, on a leveraged basis, in bank loans, high-yield debt or other asset groups, certificates issued by a structured investment vehicle that holds pools of commercial mortgage loans. We may also invest in credit risk transfer notes that, while not structured products, face similar risks as structured products because they are debt securities issued by governmental agencies but their value depends in part on a pool of mortgage loans. Our investments in structured products will be subject to a number of risks, including risks related to the fact that the structured products will be leveraged, and other structural and legal risks related thereto. Utilization of leverage is a speculative investment technique and will generally magnify the opportunities for gain and risk of loss borne by an investor investing in the subordinated debt securities. Many structured products contain covenants designed to protect the providers of debt financing to such structured products. A failure to satisfy those covenants could result in the untimely liquidation of the structured product and a complete loss of our investment therein. In addition, if the particular structured product is invested in a security in which we are also invested, this would tend to increase our overall exposure to the credit of the issuer of such securities, at least on an absolute, if not on a relative basis. The value of an investment in a structured product will depend on the investment performance of the assets in which the structured product invests and will, therefore, be subject to all of the risks associated with an investment in those assets. These risks include the possibility of a default by, or bankruptcy of, the

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issuers of such assets or a claim that the pledging of collateral to secure any such asset constituted a fraudulent conveyance or preferential transfer that can be subordinated to the rights of other creditors of the issuer of such asset or nullified under applicable law.

***We may invest in high-yield debt, which is subject to more risk than higher-rated securities.***

Debt that is, at the time of purchase, rated below investment grade (below Baa by Moody's and below BBB by S&P and Fitch), an equivalent rating assigned by another nationally recognized statistical rating organization or unrated but judged by our Advisor to be of comparable quality are commonly referred to as "high-yield" securities.

Investments in high-yield securities generally provide greater income and increased opportunity for capital appreciation than investments in higher-quality securities, but they also typically entail greater price volatility and principal and income risk, including the possibility of issuer default and bankruptcy. High-yield securities are regarded as predominantly speculative with respect to the issuer's continuing ability to meet principal and interest payments. Debt instruments in the lowest investment grade category also may be considered to possess some speculative characteristics by certain rating agencies. In addition, analysis of the creditworthiness of issuers of high-yield securities may be more complex than for issuers of higher quality securities.

High-yield securities may be more susceptible to real or perceived adverse economic and competitive industry conditions than investment-grade securities. A projection of an economic downturn or of a period of rising interest rates, for example, could cause a decline in high-yield security prices because the advent of a recession could lessen the ability of an issuer to make principal and interest payments on its debt obligations. If an issuer of high-yield securities defaults, in addition to risking non-payment of all or a portion of interest and principal, we may incur additional expenses to seek recovery. The market prices of high-yield securities structured as zero-coupon, step-up or payment-in-kind securities will normally be affected to a greater extent by interest rate changes, and therefore tend to be more volatile than the prices of securities that pay interest currently and in cash.

The secondary market on which high-yield securities are traded may be less liquid than the market for investment grade securities. Less liquidity in the secondary trading market could adversely affect the price at which we could sell a high-yield security, and could adversely affect the NAV of our shares. Adverse publicity and investor perceptions, whether or not based on fundamental analysis, may decrease the values and liquidity of high-yield securities, especially in a thinly traded market. When secondary markets for high-yield securities are less liquid than the market for investment-grade securities, it may be more difficult to value the securities because such valuation may require more research, and elements of judgment may play a greater role in the valuation because there is less reliable, objective data available. During periods of thin trading in these markets, the spread between bid and asked prices is likely to increase significantly, and we may have greater difficulty selling our portfolio securities. We will be more dependent on our Advisor's research and analysis when investing in high-yield securities.

***B-Notes and A/B Structures may pose additional risks that may adversely affect our results of operations and financial condition.***

We may invest in B-notes, which are mortgage loans typically (i) secured by a first mortgage on a commercial property or group of related properties and (ii) subordinated to an A-note portion of the same first mortgage secured by the same collateral (which we would not expect to hold). As a result, if a borrower defaults, there may not be sufficient funds remaining to repay B-note holders after payment to the A-note holders. Since each transaction is privately negotiated, B-notes can vary in their structural characteristics and risks. In addition to the risks described above, certain additional risks apply to B-note investments, including those described herein. The B-note portion of a loan is typically small relative to the overall loan, and is in the first loss position. As a means to protect against the holder of the A-note from taking certain actions or, receiving certain benefits to the detriment of the holder of the B-note, the holder of the B-note often (but not always) has the right to purchase the A-note from its holder. If available, this right may not be meaningful to us. For example, we may not have the capital available to protect our B-note interest or purchasing the A-note may alter our overall portfolio and risk/return profile to the detriment of our stockholders. In addition, a B-note may be in the form of a "rake bond." A "rake bond" is a CMBS backed solely by a single promissory note secured by a mortgaged property, which promissory note is subordinate in right of payment to one or more separate promissory notes secured by the same mortgaged property.

***We will face risks related to our investments in mezzanine loans.***

Although not directly secured by the underlying real estate, mezzanine loans are also subject to risk of subordination and share certain characteristics of subordinate loan interests described above. As with commercial mortgage loans, repayment of a mezzanine loan is dependent on the successful operation of the underlying commercial properties and, therefore, is subject to similar considerations and risks. Mezzanine loans may also be affected by the successful operation of other properties, but mezzanine loans are not secured by interests in the underlying commercial properties.

With most mezzanine loans, the bulk of the loan balance is payable at maturity with a one-time "balloon payment." Full satisfaction of the balloon payment by a borrower is heavily dependent on the availability of subsequent financing or a functioning sales market, and full satisfaction of a loan will be affected by a borrower's access to credit or a functioning sales market. In certain situations, and during periods of credit distress, the unavailability of real estate financing may lead to default by a borrower. In addition, in the absence of any

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such takeout financing, the ability of a borrower to repay a loan may be impaired. Moreover, mezzanine loans are usually non-recourse in nature. Therefore, if a borrower defaults on the loan, then the options for financial recovery are limited in nature.

***We may invest in equity securities of real estate owners, which is subordinate to any indebtedness of such owners.***

We may invest from time to time in non-controlling preferred equity positions, common equity and other equity securities issued by real estate companies. Preferred equity investments generally rank junior to all existing and future indebtedness, including commercial mezzanine and mortgage loans, but rank senior to the owners' common equity. Preferred equity investments typically pay a dividend rather than interest payments and often have the right for such dividends to accrue if there is insufficient cash flow to pay currently. These interests are not secured by the underlying real estate, but upon the occurrence of a default, the preferred equity provider typically has the right to effectuate a change of control with respect to the ownership of the property. In addition, equity investments may be illiquid or have limited liquidity due to lock-out periods, limited trading volume or other limitations or prohibitions against their transfer, sale, pledge or disposition, including any necessary registration with the SEC requiring coordination with the issuer for the sale of such securities. Our investments in equity securities issued by real estate companies will involve risks relating to the particular issuer of the equity securities, including the financial condition and business outlook of the issuer. Issuers of real estate-related equity securities are subject to their own operating and other expenses and may be subject to a management fee and performance-based compensation (e.g., promote), which we as equity holders will indirectly bear. Issuers of real estate-related equity securities generally invest in real estate or real estate-related securities and are subject to the inherent risks associated with real estate discussed in "—General Risks Related to Investments in Real Estate."

***We may invest in equity of other REITs that invest in real estate or real estate debt as one of their core businesses and other real estate-related companies, which subjects us to certain risks including those risks associated with an investment in our own common stock.***

REITs that invest primarily in real estate or real estate debt are subject to the risks of the real estate market, the real estate debt market and the securities market.

REITs are dependent upon specialized management skills, have limited diversification and are, therefore, subject to risks inherent in financing a limited number of projects. REITs may be subject to management fees and other expenses. If we invest in REITs, we will bear our proportionate share of the costs of the REITs' operations. Investing in REITs and real estate-related companies involves certain unique risks in addition to those risks associated with investing in the real estate industry in general. The market value of REIT shares and the ability of the REIT to distribute income may be adversely affected by several factors, including the risks described herein that relate to an investment in our common stock. REITs depend generally on their ability to generate cash flow to make distributions to shareholders, and certain REITs have self-liquidation provisions by which mortgages held may be paid in full and distributions of capital returns may be made at any time. In addition, distributions received by us from REITs may consist of dividends, capital gains and/or return of capital. Generally, dividends received by us from REIT shares and distributed to our stockholders will not constitute "qualified dividend income" eligible for the reduced tax rate applicable to qualified dividend income. In addition, the performance of a REIT may be affected by changes in the tax laws or by its failure to qualify for tax-free pass-through of income.

REITs (especially mortgage REITs) are also subject to interest rate risk. Rising interest rates may cause REIT investors to demand a higher annual yield, which may, in turn, cause a decline in the market price of the equity securities issued by a REIT.

Investing in certain REITs and real estate-related companies, which often have small market capitalizations, may also involve the same risks as investing in other small capitalization companies. REITs and real estate-related companies may have limited financial resources, and their securities may trade less frequently and in limited volume and may be subject to more abrupt or erratic price movements than larger company securities.

***We utilize derivatives, which involve numerous risks.***

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Derivative instruments that may be purchased or sold by us may include instruments not traded over-the-counter or on an exchange. The risk of nonperformance by the obligor on such an instrument may be greater and the ease with which we can dispose of or enter into closing transactions with respect to such an instrument may be less than in the case of an exchange-traded instrument. In addition, significant disparities may exist between "bid" and "asked" prices for derivative instruments that are traded over-the-counter and not on an exchange. Such over-the-counter derivatives are also subject to types and levels of investor protections or governmental regulation that may differ from exchange traded instruments.

The ability to successfully use derivative investments depends on the ability of our Advisor. The skills needed to employ derivatives strategies are different from those needed to select portfolio investments and, in connection with such strategies, our Advisor must make predictions with respect to market conditions, liquidity, market values, interest rates or other applicable factors, which may be inaccurate. The use of derivative investments may require us to sell or purchase portfolio investments at inopportune times or for prices below or above the current market values, may limit the amount of appreciation we can realize on an investment or may cause us to hold a security that we might otherwise want to sell. We will also be subject to credit risk with respect to the counterparties to our derivatives contracts (whether a clearing corporation in the case of exchange-traded instruments or another third party in the case of over-the-counter instruments). In addition, the use of derivatives will be subject to additional unique risks associated with such instruments including a lack of sufficient asset correlation, heightened volatility in reference to interest rates or prices of reference instruments and duration/term mismatch, each of which may create additional risk of loss.

***We may make open market purchases or invest in traded securities.***

We have the ability to invest in securities that are traded (publicly or through other active markets (including through private transactions)) and are, therefore, subject to the risks inherent in investing in traded securities. When investing in traded securities, we may be unable to obtain financial covenants or other contractual governance rights, including management rights that we might otherwise be able to obtain in making privately negotiated investments. Moreover, we may not have the same access to information in connection with investments in traded securities, either when investigating a potential investment or after making the investment, as compared to privately negotiated investments. Furthermore, we may be limited in our ability to make investments, and to sell existing investments, in traded securities because Inland may be deemed to have material, non-public information regarding the issuers of those securities or as a result of other internal policies or requirements. The inability to sell traded securities in these circumstances could materially adversely affect the investment results. In addition, securities acquired of a public company may, depending on the circumstances and securities laws of the relevant jurisdiction, be subject to lock-up periods.

***Failure to obtain and maintain an exemption from being regulated as a commodity pool operator could subject us to additional regulation compliance requirements that could materially adversely affect our business, results of operations and financial condition.***

Registration with the U.S. Commodity Futures Trading Commission (the "CFTC") as a "commodity pool operator" or any change in our operations (including, without limitation, any change that causes us to be subject to certain specified covered statutory disqualifications) necessary to maintain our ability to rely upon the exemption from being regulated as a commodity pool operator could adversely affect our ability to implement our investment program, conduct our operations or achieve our objectives and subject us to certain additional costs, expenses and administrative burdens. Furthermore, any determination by us to cease or to limit entering into hedging transactions that may be treated as "commodity interests" in order to comply with the regulations of the CFTC may have a material adverse effect on our ability to implement our investment objectives and to hedge risks associated with our operations.

**Risks Related to Debt Financing**

***We will incur mortgage indebtedness and other borrowings, which increases our financial risks, could hinder our ability to make distributions and could decrease the value of your investment.***

The acquisition of investment properties may be financed in substantial part by borrowing, which increases our exposure to loss. Under our charter, we have a limitation that precludes us from borrowing in excess of 300% of our net assets, which approximates borrowing 75% of the cost of our investments (unless a majority of our independent directors approves any borrowing in excess of the limit and we disclose the justification for doing so to our stockholders), but such restriction does not restrict the amount of indebtedness we may incur with respect to any single investment. Our target leverage ratio is approximately 60%. Our leverage ratio is measured by dividing (i) consolidated property-level and entity-level debt net of cash and loan-related restricted cash, by (ii) the asset value of real estate investments (measured using the greater of fair market value and cost) plus the equity in our settled real estate debt investments. We may exceed our target leverage ratio, particularly during a market downturn or in connection with a large acquisition. The use of leverage involves a high degree of financial risk and will increase the exposure of the investments to adverse economic factors such as rising interest rates, downturns in the economy or deteriorations in the condition of the investments. Principal and interest payments on indebtedness (including mortgages having "balloon" payments) will have to be made regardless of the sufficiency of cash flow from the properties. Our investments will be impaired by a smaller decline in the value of the properties than would be the case if our properties were owned with a smaller amount of debt.

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We may incur or increase our mortgage debt by obtaining loans secured by a portfolio of some or all of the real estate acquired and may borrow under mortgages on properties after they are acquired. Depending on the level of leverage and decline in value, if mortgage payments are not made when due, one or more of the properties may be lost (and our investment therein rendered valueless) as a result of foreclosure by the mortgagee. A foreclosure may also have substantial adverse tax consequences for us.

Many of these same issues also apply to credit facilities which are expected to be in place at various times as well. For example, the loan documents for such facilities may include various coverage ratios, the continued compliance with which may not be completely within our control. If such coverage ratios are not met, the lenders under such credit facilities may declare any unfunded commitments to be terminated and declare any amounts outstanding to be due and payable. We may also rely on short-term financing that would be especially exposed to changes in availability.

Although borrowings by us have the potential to enhance overall returns that exceed our cost of funds, they will further diminish returns (or increase losses on capital) to the extent overall returns are less than our cost of funds. As a result, the possibilities of profit and loss are increased. Borrowing money to purchase properties exposes us to greater market risks and higher current expenses.

***In certain cases, financings for our properties may be recourse to us.***

Generally, commercial real estate financings are structured as non-recourse to the borrower, which limits a lender's recourse to the property pledged as collateral for the loan, and not the other assets of the borrower or to any parent of borrower, in the event of a loan default. However, lenders customarily will require that a creditworthy parent entity enter into so-called "recourse carveout" guarantees to protect the lender against certain bad-faith or other intentional acts of the borrower in violation of the loan documents. A "bad boy" guarantee typically provides that the lender can recover losses from the guarantors for certain bad acts, such as fraud or intentional misrepresentation, intentional waste, willful misconduct, criminal acts, misappropriation of funds, voluntary incurrence of prohibited debt and environmental losses sustained by lender. In addition, "bad boy" guarantees typically provide that the loan will be a full personal recourse obligation of the guarantor, for certain actions, such as prohibited transfers of the collateral or changes of control and voluntary bankruptcy of the borrower. Financing arrangements with respect to our investments will generally require "bad boy" guarantees from us and in the event that such a guarantee is called, our assets could be adversely affected. Moreover, our "bad boy" guarantees could apply to actions of the joint venture partners associated with our investments. Although our Advisor expects to negotiate indemnities from such joint venture partners to protect against such risks, there remains the possibility that the acts of such joint venture partner could result in liability to us under such guarantees.

***If we draw on a line of credit to fund repurchases or for any other reason, our financial leverage ratio could increase beyond our target.***

We may seek to obtain lines of credit in an effort to provide for a ready source of liquidity for any business purpose, including to fund repurchases of shares of our common stock or to fund the redemption of Class A units. There can be no assurances that we will be able to borrow under or maintain our lines of credit or obtain additional lines of credit on financially reasonable terms. In addition, we may not be able to obtain lines of credit of an appropriate size for our business. If we borrow under a line of credit to fund repurchases of shares of our common stock, our financial leverage will increase and may exceed our target leverage ratio. Our leverage may remain at the higher level until we receive additional net proceeds from our continuous offering or generate sufficient operating cash flow or proceeds from asset sales to repay outstanding indebtedness. In connection with a line of credit, distributions may be subordinated to payments required in connection with any indebtedness contemplated thereby.

***Increases in interest rates could increase the amount of our loan payments and adversely affect our ability to make distributions to our stockholders.***

Interest we pay on our loan obligations will reduce cash available for distributions. We may obtain variable rate loans, and as a result, increases in interest rates could increase our interest costs, which could reduce our cash flows and our ability to make distributions. In addition, if we need to repay existing loans during periods of rising interest rates, we could be required to liquidate one or more of our investments at times that may not permit realization of the maximum return on such investments.

***Volatility in the financial markets and challenging economic conditions could adversely affect our ability to secure debt financing on attractive terms and our ability to service or refinance any future indebtedness that we may incur.***

The volatility of the current global credit markets could make it more difficult to obtain favorable financing for investments. During periods of volatility (including the current market environment), which often occur during economic downturns, generally credit spreads widen, interest rates rise and investor demand for high-yield debt declines. These trends result in reduced willingness by investment banks and other lenders to finance new investments and deterioration of available terms. If the overall cost of borrowing increases, either by increases in the index rates or by increases in lender spreads, the increased costs may result in future acquisitions generating lower overall economic returns and potentially reducing future cash flow available for distribution. Disruptions in the debt markets negatively impact our ability to borrow monies to finance the purchase of, or other activities related to, real estate assets. If we are unable to borrow monies on terms and conditions that we find acceptable, we likely will have to reduce the number of properties we can purchase, and

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the return on the properties we do purchase may be lower. In addition, we may find it difficult, costly or impossible to refinance indebtedness that is maturing. Moreover, to the extent that such marketplace events are not temporary, they could have an adverse impact on the availability of credit to businesses generally and could lead to an overall weakening of the U.S. economy.

***Lenders may require us to enter into restrictive covenants relating to our operations, which could limit our ability to make distributions to our stockholders.***

When providing financing, a lender may impose restrictions on us that affect our distribution and operating policies and our ability to obtain additional loans. Loan documents we enter into may contain covenants that limit our ability to further mortgage or dispose of the property or discontinue insurance coverage. In addition, loan documents may limit our ability to enter into or terminate certain operating or lease agreements related to the property. Loan documents may also require lender approval of certain actions and as a result of the lender's failure to grant such approval, we may not be able to take a course of action we deem most profitable. These or other limitations may adversely affect our flexibility and our ability to make distributions and the value of your investment.

***If we enter into financing arrangements involving balloon payment obligations, it may adversely affect stockholder returns.***

Some of our financing arrangements may require us to make a lump-sum or "balloon" payment at maturity. Our ability to make a balloon payment is uncertain and may depend upon our ability to obtain replacement financing or our ability to sell particular properties. At the time the balloon payment is due, we may or may not be able to refinance the balloon payment on terms as favorable as the original loan or sell the particular property at a price sufficient to make the balloon payment. Such a refinancing would be dependent upon interest rates and lenders' policies at the time of refinancing, economic conditions in general and the value of the underlying properties in particular. The effect of a refinancing or sale could affect the rate of return to stockholders and the projected time of disposition of our assets.

***Failure to hedge effectively against interest rate changes may materially adversely affect our results of operations and financial condition.***

Subject to any limitations required to maintain qualification as a REIT, we may seek to manage our exposure to interest rate volatility by using interest rate hedging arrangements, such as interest rate cap or collar agreements and interest rate swap agreements. These agreements involve risks, such as the risk that counterparties may fail to honor their obligations under these arrangements and that these arrangements may not be effective in reducing our exposure to interest rate changes. These interest rate hedging arrangements may create additional assets or liabilities from time to time that may be held or liquidated separately from the underlying property or loan for which they were originally established. Hedging may reduce the overall returns on our investments. Failure to hedge effectively against interest rate changes may materially adversely affect our results of operations and financial condition.

***We may enter into loans with cross-collateralization provisions, which would heighten the risk of a default on any particular loan and increase the risk of a loss in the value of your investment in us.***

We may enter into loans with cross-collateralization provisions that provide that a default under any obligation of a certain dollar threshold or more by us constitutes a default under the loan. If any of our future investments are foreclosed upon due to a default, our ability to pay distributions may be limited, which would have an adverse effect on your investment in us.

**Risks Related to our Relationship with our Advisor and the Dealer Manager**

***We depend on our Advisor to select our investments and otherwise conduct our business, and any material adverse change in its financial condition or our relationship with our Advisor could have a material adverse effect on our business and ability to achieve our investment objectives.***

Our success is dependent upon our relationship with, and the performance of, our Advisor in the acquisition and management of our investments, and our corporate operations. Our Advisor may suffer adverse financial or operational problems in connection with Inland's business and activities unrelated to us and over which we have no control. Should our Advisor fail to allocate sufficient resources to perform its responsibilities to us for any reason, we may be unable to achieve our investment objectives.

***The termination or replacement of our Advisor could trigger a repayment event under a mortgage loan for a property, a credit agreement governing a line of credit and repurchase agreements.***

Lenders for certain of our properties may request provisions in the mortgage loan documentation that would make the termination or replacement of our Advisor an event requiring the consent of the lender or immediate repayment of the full outstanding balance of the loan. The termination or replacement of our Advisor could also trigger repayment of outstanding amounts under credit agreements that may govern lines of credit that we may obtain or under repurchase agreements that we may enter into. If a repayment event is triggered with respect to any of our properties, our results of operations and financial condition may be adversely affected.

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***Our Advisor's inability to retain the services of key real estate professionals could hurt our performance.***

Our success depends to a significant degree upon the contributions of certain key real estate professionals employed by our Advisor and its affiliates, each of whom would be difficult to replace. There is increasing competition among alternative asset firms, financial institutions, private equity firms, investment advisors, investment managers, real estate investment companies, real estate investment trusts and other industry participants for hiring and retaining qualified investment professionals, and there can be no assurance that such professionals will continue to be associated with the us or our Advisor, particularly in light of our perpetual-life nature, or that replacements will perform well. Neither we nor the Advisor have employment agreements with these individuals and they may not remain associated with us. If any of these persons were to cease their association with our Advisor, our operating results could suffer. We do not maintain key person life insurance on any person. Our future success depends, in large part, upon our Advisor's ability to attract and retain highly skilled managerial, operational. investment and marketing professionals. If our Advisor loses or is unable to obtain the services of highly skilled professionals, our ability to implement our investment strategies could be delayed or hindered.

***Any material adverse change to the Dealer Manager's ability to successfully build and maintain a network of licensed broker-dealers could have a material adverse effect on our business and the Offerings.***

The dealer manager for the Offerings is Inland Securities Corporation. Any material adverse change to the ability of our Dealer Manager to build and maintain a network of licensed securities broker-dealers and other agents could have a material adverse effect on our business and the Offerings. If the Dealer Manager is unable to build and maintain a sufficient network of participating broker-dealers to distribute shares in the Offerings, our ability to raise proceeds through the Offerings and implement our investment strategy may be adversely affected. In addition, the Dealer Manager currently serves and may serve as dealer manager for other issuers. As a result, the Dealer Manager may experience conflicts of interest in allocating its time between the Offerings and such other issuers, which could adversely affect our ability to raise proceeds through the Offerings and implement our investment strategy. Further, the participating broker-dealers retained by the Dealer Manager may have numerous competing investment products, some with similar or identical investment strategies and areas of focus as us, which they may elect to emphasize to their retail clients.

***You will not have the benefit of an independent due diligence review in connection with the Offerings and, if a conflict of interest arises between us and Inland, we may incur additional fees and expenses.***

Because the Advisor and the Dealer Manager are affiliates of our sponsor, you will not have the benefit of an independent due diligence review and investigation of the type normally performed by an unaffiliated, independent underwriter and its counsel in connection with a securities offering. If any situation arises in which our interests are in conflict with those of the Advisor, the Dealer Manager or its affiliates, and we are required to retain independent counsel, we will incur additional fees and expenses.

***We do not own the Inland trademarks, but we may use them pursuant to a trademark license agreement with an affiliate of Inland. Use of the name by other parties or the termination of our trademark license agreement may harm our business.***

We have entered into a trademark license agreement ("Trademark License Agreement"), with The Inland Real Estate Group, LLC, an affiliate of our sponsor ("TIREG"), pursuant to which it grants us a fully paid-up, royalty-free, non-exclusive, non-transferable right and license to use the "Inland" marks and the goodwill associated with them, in connection with our business. TIREG retains exclusive ownership of all trademarks and, except for permitted sublicenses, we will not be able to transfer, sell, assign or modify any right granted to us under the Trademark License Agreement. The Trademark License Agreement contains customary and usual representations, warranties and covenants for agreements of this type, and requires us to indemnify TIREG for any damages resulting from a breach of our obligations under the Trademark License Agreement. Either party may terminate the Trademark License Agreement upon 30 days prior written notice. If TIREG terminates the agreement, we will have a reasonable opportunity to transition to other trademarks.

**Risks Related to Conflicts of Interest**

***We pay our Advisor and its affiliates fees and the Special Limited Partner receives the performance allocation, which could lead to conflicts of interest.***

Our Advisor and its affiliates, including Inland Commercial and Devon, receive substantial fees from us, and the Special Limited Partner has received a performance allocation in the Operating Partnership, which fees and performance allocation were not negotiated at arm's length. These fees and performance allocation could influence our Advisor's advice to us as well as the judgment of its affiliates, some of whom also serve as our executive officers and our directors. Among other matters, these compensation arrangements could affect their judgment with respect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the continuation, renewal or enforcement of our agreements with our Advisor and its affiliates, including the Advisory Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•equity offerings by us, including using our securities to acquire portfolios or other companies, which would entitle our Advisor to additional asset management fees, which are based on our aggregate NAV irrespective of stockholder returns;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the recommendation of higher-yielding but riskier investments, which may be encouraged by the Special Limited Partner's performance participation interest in our Operating Partnership, which is based on our total distributions plus the change in NAV per share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•recommendations to our board of directors with respect to developing, overseeing, implementing, coordinating and determining our NAV and our NAV procedures, the provision of forward-looking property-level information to the independent valuation advisor or the decision to adjust the value of certain of our assets or liabilities in connection with the determination of our NAV, especially given that the advisory fees we pay our Advisor and the Special Limited Partner's performance participation allocations are based on our NAV;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•redemptions, which have the effect of reducing asset management fees payable to our Advisor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•asset sales, which have the effect of reducing asset management fees if the proceeds are distributed to our stockholders rather than reinvested; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•whether we engage affiliates of our Advisor for other services, which affiliates may receive fees in connection with the services regardless of the quality of the services provided to us.

These conflicts of interest may not be resolved in our favor.

***Our Advisor and its affiliates have interests in other programs managed by Inland, which gives rise to conflicts of interest.***

Our Advisor and its affiliates sponsor or manage other programs, such private and public limited partnerships, limited liability companies and Delaware statutory trusts and public, non-listed REITs. All of our executive officers and our affiliated directors are also officers, directors, managers, key professionals or holders of direct or indirect interests in (i) our Advisor, (ii) other affiliated advisors or business managers that are the managers of other programs, or (iii) other Inland-managed or -sponsored investment vehicles. Our Advisor and its affiliates have legal and financial obligations with respect to other programs managed or sponsored by them. In the future, our Advisor and its affiliates are expected to sponsor and manage other programs.

Conflicts of interest may arise between us and the current and future programs advised or sponsored by our Advisor and its affiliates, including with respect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the allocation of investment opportunities among programs managed by our Advisor and its affiliates (see "—Certain Inland Programs have similar or overlapping investment objectives and guidelines, and we will not be allocated certain opportunities" below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the allocation of personnel and time among programs managed or sponsored by our Advisor and its affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the acquisition of assets from, or the sale of assets to, other Inland-managed programs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•competition from other Inland-managed programs when leasing a property or selling an asset or hiring service providers.

These conflicts of interest could result in decisions that are less favorable to us than they otherwise would be.

***Certain Inland Programs have similar or overlapping investment objectives and guidelines, and we will not be allocated certain opportunities.***

In the initial stages of our capital raise pursuant to the Offerings, a primary source of proposed real estate investments will consist of DSTs or other private investment programs sponsored by IPC, an affiliate of our sponsor that was formed to provide replacement properties for investors wishing to complete a tax-deferred exchange under Section 1031 of the Code, as well as investors seeking a quality, multiple-owner real estate investment. These investments are expected to take the form of a transaction structured as a tax-deferred contribution of the property owned by the DST or other IPC-sponsored investment program to our Operating Partnership in exchange for OP Units under Section 721 of the Code. We do not anticipate that our acquisition strategy with respect to these investments will overlap with the strategy of any other Inland Program.

However, with respect to potential real estate investments that do not involve a tax-deferred contribution of the property to our Operating Partnership, there may be overlap of real estate and real estate debt investment opportunities with certain Inland Programs that are actively investing and similar overlap with future Inland Programs. In particular, we may seek to acquire the same alternative property types in which IPC-sponsored programs may invest. Programs sponsored by IPC generally consist of (a) private programs structured to provide replacement properties for investors wishing to complete a Section 1031 exchange, (b) private programs that intend to qualify as "qualified opportunity funds" under the Code and (c) development programs. We do not consider any of these programs to have investment objectives similar to ours.

Any such overlap will from time to time create conflicts of interest, which the Advisor and its affiliates will seek to manage in a fair and reasonable manner in their sole discretion in accordance with their prevailing policies and procedures.

If more than one of the Inland Programs is interested in acquiring an investment, Inland's allocation committee determines which Inland Program is ultimately awarded the right to pursue the investment. The allocation committee is responsible for facilitating the investment

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allocation process and could face conflicts of interest in doing so. From time to time, other Inland Programs may compete with us with respect to certain investments that we may want to acquire. Certain investment opportunities that are suitable for us may also be suitable for another Inland Program. In the event that an investment opportunity becomes available that is considered suitable for both us and another Inland Program, then the Inland Program that has had the longest period of time elapse since it was allocated and invested in a contested investment is awarded the investment by the allocation committee. Our board of directors will determine, at least annually, whether the method for allocating investment opportunities is applied fairly to us.

We are presently unable to determine how our status as a company with a limited operating history will impact our ability to obtain investment opportunities. On the one hand, we will likely have a greater amount of funds available for new investments during our initial offering, as compared to other Inland Programs that have completed their capital raising. On the other hand, we may not benefit from the allocation policy if we have capital that cannot be deployed until additional investment opportunities become available to us.

The amount of performance-based compensation charged and/or management fees paid by us may be less than or exceed the amount of performance-based compensation charged and/or management fees paid by one or more of the Inland Programs. Such variation may create an incentive for our sponsor to allocate a greater percentage of an investment opportunity to us or such Inland Programs, as the case may be.

***Our Advisor faces a conflict of interest because the fees it receives for services performed are based in part on our NAV, which our Advisor is ultimately responsible for determining.***

Our Advisor is paid a management fee for its services based on our NAV. In addition, the distributions to be received by the Special Limited Partner with respect to its performance participation interest in the Operating Partnership will be based in part upon the Operating Partnership's net assets (which is a component of our NAV). Although third-party appraisals will be utilized in the calculation of our NAV, such appraisals will be based in part on information and estimates provided by our Advisor. Other components of our NAV will also be based on the subjective judgments of personnel of our Advisor. Therefore, there is a risk that conflicts of interest could influence the fees payable to our Advisor and the distributions payable to the Special Limited Partner.

***The Advisor will face a conflict of interest due to the nature of the Special Limited Partner's performance participation interest in the Operating Partnership.***

The Special Limited Partner, an affiliate of Inland, is entitled to receive distributions on its performance participation interest in the Operating Partnership each year based on the Operating Partnership's annualized total return, which is calculated based upon our total distributions paid plus the change in the Operating Partnership's NAV. The existence of the Special Limited Partner's performance participation interest in the Operating Partnership may create an incentive for the Advisor to make riskier or more speculative investments on our behalf, cause us to incur more leverage, or sell an asset prematurely in an effort to increase the distributions to which the Special Limited Partner is entitled on its performance participation interest. Because the distributions the Special Limited Partner is entitled to receive are based in part on the Operating Partnership's NAV, the Advisor may also be motivated to accelerate acquisitions to increase the Operating Partnership's NAV or, similarly, delay or curtail repurchases of our shares to maintain the Operating Partnership's NAV. The Special Limited Partner will not be obligated to return any portion of performance participation allocations due to the subsequent negative performance.

***Inland and its employees and affiliates may invest for their own accounts.***

Inland and its employees and affiliates may engage in investment activities for their personal accounts, which may involve the purchase and sale of securities that are the same as, but in different concentrations or effectuated at different times and prices than, those purchased or sold by us. In addition, they may also involve the purchase and sale of securities that are different from those purchased by the us. Additionally, Inland's principals, employees and other affiliates may engage in limited investment activities, which may from time to time involve passive investments in companies or funds that may have dealings with Inland.

***Certain of our investment interests may conflict with the interests of Inland Programs and vice versa.***

Our Advisor and its affiliates employ a wide range of investment strategies for us and the Inland Programs. In specific instances, these strategies include buying and selling different securities and instruments within an issuer's capital structure for different programs or pursuant to different strategies pursued by a single program. In pursuing these investment strategies, a program or an account may acquire an instrument that is senior or junior in the capital structure of an issuer relative to an instrument that may be acquired by us. These investment decisions may be made by the same team of investment professionals for the same or different programs or accounts depending upon the investment strategy employed. Under normal circumstances, investments in instruments that have different rankings of seniority in an issuer's capital structure do not raise conflicts of interest. However, in other circumstances, such as when an issuer defaults on its debt or seeks protection from creditors in bankruptcy or reorganizations, a conflict of interest can arise as action taken to protect the interest of one set of holders (such as senior bank debt holders or preferred stockholders) can be at the potential detriment of other holders of the same issuer's securities or instruments (such as unsecured debt holders or common stock holders). When different

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programs own securities and instruments of the same issuer in different ranks of seniority, action taken for the benefit of one program can favor that program at the expense of other programs.

Additionally, certain investments made by one program may indirectly benefit positions held by another program. For example, one program may hold a position in the equity of an issuer and another program may participate in a syndicated loan offering, the proceeds of which are applied to finance a third party's acquisition of all or a portion of the issuer's outstanding equity (including any portion owned by other programs). Further, in certain instances, proceeds of an investment in an issuer made by one program may be applied by the issuer (or an affiliate thereof) to make interest payments or distributions in respect of securities held by another program. For example, a program may participate in an offering of securities by a subsidiary or affiliate of an issuer in which another program holds a position. The proceeds of the Offerings, or a portion thereof, may be distributed directly or indirectly to the parent company (or other affiliate) in which another program owns a position, and the parent company (or other affiliate) may use these proceeds to make payments or distributions to its debt and/or equity investors, including other programs.

Investors should expect that in employing various strategies for programs with differing investment objectives, our Advisor and its affiliates will make investment decisions that result in some programs owning senior positions and other programs owning junior positions or certain investments of some programs impacting positions of other programs indirectly. These investments may give rise to conflicts of interest, which may not be resolved in our favor.

***The financial or other benefits received by our Advisor from us may be less than such benefits received by our Advisor from Inland Programs.***

A conflict of interest arises where the financial or other benefits available to our Advisor or its affiliates differ among the programs that it manages. If the amount or structure of the management fee, the Special Limited Partner's performance participation allocations, the property manager fee and/or our Advisor's or its affiliates' compensation differs among programs (such as where certain funds pay higher base management fees, incentive fees, performance-based management fees or other fees), our Advisor or its affiliates might be motivated to help certain programs over others. Similarly, the desire to maintain assets under management or to enhance our Advisor's performance record or to derive other rewards, financial or otherwise, could influence our Advisor or its affiliates in affording preferential treatment to those programs that could most significantly benefit our Advisor or its affiliates. Our Advisor may, for example, have an incentive to allocate favorable or limited opportunity investments or structure the timing of investments to favor certain programs. Additionally, our Advisor or its affiliates might be motivated to favor programs in which it has an ownership interest or in which Inland or its affiliates have ownership interests. If an investment professional at our Advisor or its affiliates does not personally hold an investment in us but holds investments in other Inland-affiliated vehicles, such investment professional's conflicts of interest with respect to us may be more acute.

***The fees we pay in connection with the Offerings and the agreements entered into with our Advisor and its affiliates, including Inland Commercial and Devon, were not determined on an arm's-length basis and therefore may not be on the same terms we could achieve from a third party.***

The compensation paid to our Advisor and the Special Limited Partner for services they provide us was not determined on an arm's-length basis. All service agreements, contracts or arrangements between or among Inland and its affiliates, including our Advisor and us, were not negotiated at arm's-length. Such agreements include our Advisory Agreement, the Operating Partnership's partnership agreement, and any property-related corporate services and other agreements we may enter into with affiliates of our Advisor from time to time.

***Our Advisor's management fee and the Special Limited Partner's performance participation interest may not create proper incentives or may induce our Advisor and its affiliates to make certain investments, including speculative investments, that increase the risk of our real estate portfolio.***

We pay our Advisor a management fee regardless of the performance of our portfolio. We are required to pay our Advisor a management fee in a particular period even if we experienced a net loss or a decline in the value of our portfolio during that period. Our Advisor's entitlement to a management fee, which is not based upon performance metrics or goals, might reduce its incentive to devote its time and effort to seeking investments that provide attractive risk-adjusted returns for our portfolio. Because the management fee is based on our NAV, our Advisor may also be motivated to accelerate acquisitions in order to increase NAV or, similarly, delay or curtail repurchases to maintain a higher NAV.

The existence of the Special Limited Partner's performance participation allocations in our Operating Partnership, which are based on our total distributions plus the change in NAV per Operating Partnership unit, may create an incentive for our Advisor to recommend riskier or more speculative investments or to recommend us to use more leverage than it otherwise would. In addition, the change in NAV per Operating Partnership unit will be based on the value of our investments on the applicable measurement dates and not on realized gains or losses. As a result, the Special Limited Partner may receive distributions based on unrealized gains in certain assets at the time of such distributions and such gains may not be realized when those assets are eventually disposed of.

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***Inland will consider other relationships and the reputation of Inland in managing us.***

Inland has long-term relationships with many significant participants in the real estate and related financial markets, including lenders. Inland also has longstanding relationships with other owners of real estate and real estate-related securities and their respective senior managers, shareholders and partners. Some of these parties may directly or indirectly compete with us for investment opportunities. Inland also has relationships with investors (including institutional investors and their senior management) that may invest in other investment funds or real estate assets. Inland considers these relationships in its management of us. In this regard, there may be certain investment opportunities or certain investment strategies that Inland does not undertake on our behalf in view of these relationships or refers to clients instead of referring to us. Further, because of the importance of Inland's reputation, our Advisor may or may not take certain actions in order to protect or preserve such reputation. Inland's consideration of these and other related factors give rise to various conflicts of interest, which may not be resolved in our favor.

***We may sell or purchase assets to or from our Advisor and its affiliates, and the conflicts of interest inherent in such transactions could result in terms that are less favorable to us than they would be if the transactions were not with a related party.***

We may sell or purchase assets to or from our Advisor and its affiliates. In particular, a primary source of our proposed real estate investments is DSTs or other private investment programs sponsored by IPC. These investments are expected to take the form of a transaction structured as a tax-deferred contribution of the property owned by the DST or other IPC-sponsored investment program to our Operating Partnership in exchange for OP Units under Section 721 of the Code. Although such transactions will be subject to the approval of a majority of directors (including a majority of our independent directors) not otherwise interested in the transaction, there is still a risk that the conflicts of interest inherent in such transactions could result in terms that are less favorable to us than they would be if the transactions were not with a related party. This risk is heightened on account of our directors' reliance, at least in part, on our Advisor and its affiliates for information regarding the proposed and alternative transactions. The possibility of such related-party transactions makes an investment in our shares more speculative than it otherwise would be.

***Our Advisor will engage consultants, advisors and service providers on our behalf.***

Our Advisor and entities affiliated with our Advisor will provide certain accounting, administrative and other services to us, and will charge expenses to us for the provision of such services by their internal staff that will be in addition to the management fee payable by us to our Advisor.

Individual consultants or advisors (some of whom may be former employees of Inland) may be engaged by our Advisor on our behalf to provide consulting or advisory services to us. These consultants or advisors may not work exclusively for our Advisor or us. Compensation paid to these consultants or advisors for consulting/advisory services is generally borne by us, is not offset against the management paid to our Advisor and may include an annual fee and a discretionary performance-related bonus.

Our Advisor, on behalf of us and our investments, expects to engage service providers (including attorneys and consultants), some of which may also provide services to Inland and other programs managed by other parts of Inland. In addition, certain service providers to our Advisor, us and our investments may also be affiliates of Inland. These service providers may have business, financial, or other relationships with Inland or its employees, which may influence our Advisor's selection of these service providers for us or our investments.

***Inland personnel work on other projects and conflicts may arise in the allocation of personnel between us and other projects.***

Our Advisor and its affiliates will devote such time as they determine to be necessary to conduct our business affairs in an appropriate manner. However, Inland personnel, including members of the investment committee, will work on other projects, serve on other committees (including boards of directors) and source potential investments for and otherwise assist other programs, including other programs to be developed in the future. Time spent on these other initiatives diverts attention from our activities, which could negatively impact us. Furthermore, Inland and Inland personnel derive financial benefit from these other activities, including fees and performance-based compensation. Our sponsor's personnel share in the fees and performance-based compensation generated by other programs. These and other factors create conflicts of interest in the allocation of time by such personnel.

***Our Advisor may have interests in recommending that we invest alongside Inland Programs and such interests could cause us to make acquisitions that we otherwise would not make.***

Our Advisor and its affiliates may become aware of investment opportunities that are too big for us or any Inland Program to take on individually but which we and Inland Programs could acquire collectively. Our Advisor may have incentives to recommend that we invest in such an opportunity even if it would not be in our best interest in order that the Inland Programs not miss out on the opportunity and in order that our Advisor and its affiliates not miss out on the opportunity for higher fee income. The existence of Inland Programs and the possibility of investments alongside them, therefore, increases the risk that we may participate in an acquisition that is not in our best interest.

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***Our board of directors has adopted a resolution that renounces our interest or expectancy with respect to business opportunities and competitive activities.***

Our board of directors has adopted a resolution that provides, subject to certain exceptions, that neither Inland nor its member companies, including specifically IREIC and its affiliates, or our directors or any person our directors control will be required to refrain directly or indirectly from engaging in any business opportunities, including any business opportunities in the same or similar business activities or lines of business in which we or any of our affiliates may from time to time be engaged or propose to engage, or from competing with us, and that we renounce any interest or expectancy in, or in being offered an opportunity to participate in, any such business opportunities, unless (a) offered to a person expressly and solely in his or her capacity as one of our directors or officers or (b) discovered through the use of Company property, information or position. As a result, our potential investment opportunities may be reduced.

***Inland will receive various kinds of information and data from us, which it may use without benefit to us.***

Inland will receive or obtain various kinds of data and information from us, Inland Programs and portfolio entities, including data and information relating to business operations, trends, budgets, customers and other metrics, some of which is sometimes referred to as "big data." Inland may enter into arrangements regarding information sharing and use with us, Inland Programs, portfolio entities, related parties and service providers which will give Inland access to (and rights regarding) data that it would not otherwise obtain in the ordinary course. Although Inland believes that these activities improve Inland's investment management activities on our behalf and on behalf of Inland Programs, information obtained from us also provides material benefits to Inland or Inland Programs without compensation or other benefit accruing to us or our stockholders.

Furthermore, except for contractual obligations to third parties to maintain confidentiality of certain information, and regulatory limitations on the use of material nonpublic information, Inland will generally be free to use data and information from our activities to assist in the pursuit of Inland's various other activities, including to trade for the benefit of Inland or an Inland Program.

The sharing and use of "big data" and other information presents potential conflicts of interest, and any benefits received by Inland or its personnel (including fees, costs and expenses) will not offset our Advisor's management fee or otherwise be shared with investors. As a result, our Advisor has an incentive to pursue investments that generate data and information that can be utilized in a manner that benefits Inland or Inland Programs.

***We may be subject to potential conflicts of interest as a consequence of family relationships that Inland employees have with other real estate professionals.***

Certain personnel and other professionals of Inland may have family members or relatives that are actively involved in industries and sectors in which we invest or may have business, personal, financial or other relationships with companies in such industries and sectors (including the advisors and service providers described herein) or other industries, which gives rise to potential or actual conflicts of interest. For example, such family members or relatives might be officers, directors, personnel or owners of companies or assets that are actual or potential investments of ours or our other counterparties and properties. Moreover, in certain instances, we may purchase or sell companies or assets from or to, or otherwise transact with, companies that are owned by such family members or relatives or in respect of which such family members or relatives have other involvement. In most such circumstances, we will not be precluded from undertaking any of these investment activities or transactions.

***Other potential or actual conflicts of interest may arise, and these conflicts may not be identified or resolved in a manner favorable to us.***

Inland has conflicts of interest, or conflicting loyalties, as a result of the numerous activities and relationships of Inland, our Advisor and the affiliates, partners, members, shareholders, officers, directors, family members and employees of the foregoing, some of which are described herein. However, not all potential, apparent and actual conflicts of interest are included herein, and additional conflicts of interest could arise as a result of new activities, transactions or relationships commenced in the future. There can be no assurance that our board of directors or our Advisor will identify or resolve all conflicts of interest in a manner that is favorable to us.

**Risks Related to our REIT Status and Certain Other Tax Items**

***If we do not maintain our qualification as a REIT, we will be subject to tax as a regular corporation and could face a substantial tax liability.***

We expect to continue to operate so as to qualify as a REIT under the Code. However, qualification as a REIT involves the application of highly technical and complex Code provisions for which only a limited number of judicial or administrative interpretations exist. Notwithstanding the availability of cure provisions in the Code, we may fail to meet various compliance requirements, which could jeopardize our REIT status. Furthermore, new tax legislation, administrative guidance or court decisions, in each instance potentially

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with retroactive effect, could make it more difficult or impossible for us to qualify as a REIT. If we fail to qualify as a REIT in any tax year, then:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•we would be taxed as a regular domestic corporation, which under current laws, among other things, means being unable to deduct distributions to stockholders in computing taxable income and being subject to U.S. federal income tax on our taxable income at regular corporate income tax rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•any resulting tax liability could be substantial and could have a material adverse effect on our book value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•unless we were entitled to relief under applicable statutory provisions, we would be required to pay taxes, and therefore, our cash available for distribution to stockholders would be reduced for each of the years during which we did not qualify as a REIT and for which we had taxable income; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•we generally would not be eligible to requalify as a REIT for the subsequent four full taxable years.

***To maintain our REIT status, we may have to borrow funds on a short-term basis during unfavorable market conditions.***

To qualify as a REIT, we generally must distribute annually to our stockholders a minimum of 90% of our net taxable income, determined without regard to the dividends-paid deduction and excluding net capital gains. We will be subject to regular corporate income taxes on any undistributed REIT taxable income each year. Additionally, we will be subject to a 4% nondeductible excise tax on any amount by which distributions paid by us in any calendar year are less than the sum of 85% of our ordinary income, 95% of our capital gain net income and 100% of our undistributed income from previous years. Payments we make to our stockholders under the SRP will not be taken into account for purposes of these distribution requirements. If we do not have sufficient cash to make distributions necessary to preserve our REIT status for any year or to avoid taxation, we may be forced to borrow funds or sell assets even if the market conditions at that time are not favorable for these borrowings or sales. These options could increase our costs or reduce our equity.

***Compliance with REIT requirements may cause us to forego otherwise attractive opportunities, which may hinder or delay our ability to meet our investment objectives and reduce your overall return.***

To qualify as a REIT, we are required at all times to satisfy tests relating to, among other things, the sources of our income, the nature and diversification of our assets, the ownership of our stock and the amounts we distribute to our stockholders. Compliance with the REIT requirements may impair our ability to operate solely on the basis of maximizing profits. For example, we may be required to make distributions to stockholders at disadvantageous times or when we do not have funds readily available for distribution.

***Compliance with REIT requirements may force us to liquidate or restructure otherwise attractive investments.***

To qualify as a REIT, at the end of each calendar quarter, at least 75% of the value of our assets must consist of cash, cash items, government securities and qualified real estate assets. The remainder of our investments in securities (other than qualified real estate assets and government securities) generally cannot include more than 10% of the voting securities (other than securities that qualify for the straight debt safe harbor) of any one issuer or more than 10% of the value of the outstanding securities of more than any one issuer unless we and such issuer jointly elect for such issuer to be treated as a "taxable REIT subsidiary" under the Code. Debt will generally meet the "straight debt" safe harbor if the debt is a written unconditional promise to pay on demand or on a specified date a certain sum of money, the debt is not convertible, directly or indirectly, into stock and the interest rate and the interest payment dates of the debt are not contingent on the profits, the borrower's discretion or similar factors. Additionally, no more than 5% of the value of our assets (other than government securities and qualified real estate assets) can consist of the securities of any one issuer, no more than 25% of the value of our assets may be represented by securities of one or more taxable REIT subsidiaries and no more than 25% of our assets may be represented by "nonqualified publicly offered REIT debt instruments." If we fail to comply with these requirements at the end of any calendar quarter, we must dispose of a portion of our assets within 30 days after the end of the calendar quarter or qualify for certain statutory relief provisions in order to avoid losing our REIT qualification and suffering adverse tax consequences. In order to satisfy these requirements and maintain our qualification as a REIT, we may be forced to liquidate assets from our portfolio or not make otherwise attractive investments. These actions could reduce our income and amounts available for distribution to our stockholders.

***Our charter does not permit any person or group to own more than 9.9% in value or number of shares, whichever is more restrictive, of our outstanding common stock or of our outstanding capital stock of all classes or series, and attempts to acquire our common stock or our capital stock of all other classes or series in excess of these 9.9% limits would not be effective without an exemption (prospectively or retroactively) from these limits by our board of directors.***

For us to qualify as a REIT under the Code, not more than 50% of the value of our outstanding stock may be owned, directly or indirectly, by five or fewer individuals (including certain entities treated as individuals for this purpose) during the last half of a taxable year. For the purpose of assisting our qualification as a REIT for U.S. federal income tax purposes, among other purposes, our charter prohibits beneficial or constructive ownership by any person or group of more than 9.9%, in value or number of shares, whichever is more restrictive, of the outstanding shares of our outstanding common stock, or 9.9% in value or number of shares, whichever is more restrictive, of our outstanding capital stock of all classes or series, which we refer to as the "Ownership Limit." The constructive ownership rules under the Code and our charter are complex and may cause shares of the outstanding common stock owned by a group of related persons to be deemed to be constructively owned by one person. As a result, the acquisition of less than 9.9% of our outstanding

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common stock or our capital stock by a person could cause another person to constructively own in excess of 9.9% of our outstanding common stock or our capital stock, respectively, and thus violate the Ownership Limit. There can be no assurance that our board of directors, as permitted in the charter, will not decrease this Ownership Limit in the future. Any attempt to own or transfer shares of our common stock or capital stock in excess of the Ownership Limit without the consent of our board of directors will result either in the shares in excess of the limit being transferred by operation of our charter to a charitable trust, and the person who attempted to acquire such excess shares not having any rights in such excess shares, or in the transfer being void.

The Ownership Limit may have the effect of precluding a change in control of us by a third party, even if such change in control would be in the best interests of our stockholders or would result in receipt of a premium to the price of our common stock (and even if such change in control would not reasonably jeopardize our REIT status). The exemptions to the ownership limit granted to date may limit our board of directors' power to increase the ownership limit or grant further exemptions in the future.

***Our participation in the DST Program could subject us to liabilities from litigation or otherwise.***

IPC recently launched the DST Program, through which it expects to sponsor a series of private placements exempt from registration pursuant to Rule 506(b) of Regulation D under the Securities Act of beneficial interests in specific DSTs owning one or more real properties. The DST Program is designed for, but not limited to, prospective investors seeking to defer the recognition of gain on the sale of other real property under Section 1031 of the Code. In connection with the DST Program, the Operating Partnership, each DST, and each DST investor will enter into an option agreement pursuant to which the Operating Partnership will be granted the option, but not the obligation, exercisable in the Operating Partnership's sole and absolute discretion, to require such DST investor to exchange his, her or its DST interest for Class T OP units, Class S OP units, Class D OP units, Class I OP units, or, in limited circumstances at the discretion of the Operating Partnership, cash, which option may be exercised during the three, three-month periods that begin on the 24-month, 36-month and 48-month anniversary of the final closing of the sale of DST interests pursuant to each private placement. Investors who acquire interests pursuant to such private placements may be seeking certain tax benefits that depend on the interpretation of, and compliance with, federal and state income tax laws and regulations. As the general partner of the Operating Partnership, we may become subject to liability, from litigation or otherwise, as a result of such transactions, including in the event an investor fails to qualify for any desired tax benefits.

***Non-U.S. holders may be required to file U.S. federal income tax returns and be subject to U.S. federal income tax upon their disposition of shares of our common stock or upon their receipt of certain distributions from us.***

In addition to any potential withholding tax on ordinary dividends, a "non-U.S. holder" (defined as a beneficial owner of our common stock that is neither a U.S. holder nor a partnership (or an entity treated as a partnership for U.S. federal income tax purposes)), other than a "qualified shareholder" or a "withholding qualified holder," that disposes of a "U.S. real property interest" ("USRPI") (which includes shares of stock of a U.S. corporation whose assets consist principally of USRPI), is generally subject to U.S. federal income tax under the Foreign Investment in Real Property Tax Act of 1980, as amended ("FIRPTA"), on the amount received from such disposition. FIRPTA gains must be reported on U.S. federal income tax returns and are taxable at regular U.S. federal income tax rates. Such tax does not apply, however, to the disposition of stock in a REIT that is "domestically controlled." Generally, a REIT is domestically controlled if less than 50% of its stock, by value, has been owned directly or indirectly by non-U.S. persons during a continuous five-year period ending on the date of disposition or, if shorter, during the entire period of the REIT's existence. No assurance can be given, however, that we are or will be a domestically controlled REIT. If we were to fail to so qualify as a domestically controlled REIT, amounts received by a non-U.S. holder on certain dispositions of shares of our common stock (including a redemption) would be subject to tax under FIRPTA, unless (i) our shares of common stock were "regularly traded" on an established securities market and (ii) the non-U.S. holder did not, at any time during a specified testing period, hold more than 10% of our common stock. However, it is not anticipated that our common stock will be "regularly traded" on an established market.

A non-U.S. holder other than a "qualified shareholder" or a "withholding qualified holder" that receives a distribution from a REIT that is attributable to gains from the disposition of a USRPI as described above, including in connection with a repurchase of our common stock, is generally subject to U.S. federal income tax under FIRPTA to the extent such distribution is attributable to gains from such disposition, regardless of whether the difference between the fair market value and the tax basis of the USRPI giving rise to such gains is attributable to periods prior to or during such non-U.S. holder's ownership of our common stock. In addition, a repurchase of our common stock, to the extent not treated as a sale or exchange, may be subject to withholding as an ordinary dividend.

We seek to act in the best interests of the Company as a whole and not in consideration of the particular tax consequences to any specific holder of our stock. Potential non-U.S. holders should inform themselves as to the U.S. tax consequences, and the tax consequences within the countries of their citizenship, residence, domicile and place of business, with respect to the purchase, ownership and disposition of shares of our common stock.

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***We may incur tax liabilities that would reduce our cash available for distribution.***

Even if we qualify and maintain our status as a REIT, we may become subject to U.S. federal income taxes and related state and local taxes. For example, net income from the sale of properties that are "dealer" properties sold by a REIT (a "prohibited transaction" under the Code) will be subject to a 100% tax. We may not make sufficient distributions to avoid excise taxes applicable to REITs. Similarly, if we were to fail an income test (and did not lose our REIT status because such failure was due to reasonable cause and not willful neglect) we would be subject to tax on the income that does not meet the income test requirements. We also may decide to retain net capital gain we earn from the sale or other disposition of our investments and pay income tax directly on such income. In that event, our stockholders would be treated as if they earned that income and paid the tax on it directly. However, stockholders that are tax-exempt, such as charities or qualified pension plans, would have no benefit from their deemed payment of such tax liability unless they file U.S. federal income tax returns and thereon seek a refund of such tax. We also may be subject to state and local taxes on our income or property, including franchise, payroll, mortgage recording and transfer taxes, either directly or at the level of the other companies through which we indirectly own our assets, such as our taxable REIT subsidiaries, which are subject to full U.S. federal, state, local and foreign corporate-level income taxes. Any taxes we pay directly or indirectly will reduce our cash available for distribution.

***Our board of directors is authorized to revoke our REIT election without stockholder approval, which may cause adverse consequences to our stockholders.***

Our charter authorizes our board of directors to revoke or otherwise terminate our REIT election without the approval of our stockholders if it determines that changes to U.S. federal income tax laws and regulations or other considerations mean it is no longer in our best interests to qualify as a REIT. Our board of directors has fiduciary duties to us and our stockholders and could only cause such changes in our tax treatment if it determines in good faith that such changes are in our best interests and in the best interests of our stockholders. In this event, we would become subject to U.S. federal income tax on our taxable income and we would no longer be required to distribute most of our net income to our stockholders, which may cause a reduction in the total return to our stockholders.

***You may have current tax liability on distributions you elect to reinvest in our common stock.***

If you participate in the DRP, you will be deemed to have received, and for U.S. federal income tax purposes will be taxed on, the amount reinvested in shares of our common stock to the extent the amount reinvested was not a tax-free return of capital. Therefore, unless you are a tax-exempt entity, you may be forced to use funds from other sources to pay your tax liability on the reinvested dividends.

***Generally, ordinary dividends payable by REITs do not qualify for reduced U.S. federal income tax rates.***

Currently, the maximum tax rate applicable to qualified dividend income payable to certain non-corporate U.S. stockholders is 20%. Dividends payable by REITs, however, generally are not eligible for the reduced rate. Although this does not adversely affect the taxation of REITs or dividends payable by REITs, the more favorable rates applicable to regular corporate qualified dividends could cause certain non-corporate investors to perceive investments in REITs to be relatively less attractive than investments in the stocks of non-REIT corporations that pay dividends, which could adversely affect the value of the shares of REITs, including our common stock. However, under current law, and subject to certain limitations and holding-period requirements, taxpayers that are individuals, trusts or estates may be entitled to claim a deduction in determining their taxable income of 20% of ordinary REIT dividends (dividends other than capital gain dividends and dividends attributable to certain qualified dividend income received by us), which reduces the effective tax rate on such dividends. The deduction, if allowed in full, equates to a maximum effective U.S. federal income tax rate on ordinary REIT dividends of 29.6%. You are urged to consult with your tax advisor regarding the effect of this change on your effective tax rate with respect to REIT dividends.

***We may be subject to adverse legislative or regulatory tax changes that could increase our tax liability, reduce our operating flexibility and reduce the price of our common stock.***

In recent years, numerous legislative, judicial and administrative changes have been made in the provisions of U.S. federal income tax laws applicable to investments similar to an investment in shares of our common stock. Legislation has been previously proposed that includes, among other changes, increases in the corporate and capital gains rates and an overhaul of the international tax rules. It is unclear whether any legislation will be enacted into law or, if enacted, what form it would take, and it is also unclear whether there could be regulatory or administrative action that could affect U.S. tax rules. The current U.S. presidential administration recently signed into law the "One Big Beautiful Bill Act" (the "OBBBA") which includes several new provisions (and other amendments) to the Code (including with respect to the LIHTC program). How the OBBBA will be implemented will depend on future administrative guidance and court rulings. The U.S. Congress may also pass additional tax reform legislation in the future. The timing and details of any such guidance, ruling and legislation, and the impact of the OBBBA and any other potential tax changes on us is uncertain.

Additional changes to the tax laws are likely to continue to occur, and we cannot assure you that any such changes will not adversely affect the taxation of our stockholders. Any such changes could have an adverse effect on an investment in our shares or on the market value or the resale potential of our assets. You are urged to consult with your tax advisor with respect to the impact of the recent

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legislation on your investment in our shares and the status of legislative, regulatory or administrative developments and proposals and their potential effect on an investment in our shares. Although REITs generally receive certain tax advantages compared to entities taxed as regular corporations, it is possible that future legislation would result in a REIT having fewer tax advantages, and it could become more advantageous for a company that invests in real estate to elect to be treated for U.S. federal income tax purposes as a corporation. As a result, our charter authorizes our board of directors to revoke or otherwise terminate our REIT election, without the approval of our stockholders, if it determines that it is no longer in our best interests to qualify as a REIT. The impact of tax reform on an investment in our shares is uncertain. Prospective investors should consult their own tax advisors regarding changes in tax laws.

***The failure of a mezzanine loan to qualify as a real estate asset could adversely affect our ability to qualify as a REIT.***

We may acquire mezzanine loans, for which the IRS has provided a safe harbor but not rules of substantive law. Pursuant to the safe harbor, if a mezzanine loan meets certain requirements, it will be treated by the IRS as a real estate asset for purposes of the REIT asset tests, and interest derived from the mezzanine loan will be treated as qualifying mortgage interest for purposes of the REIT 75% income test. We may acquire mezzanine loans that do not meet all of the requirements of this safe harbor. In the event we own a mezzanine loan that does not meet the safe harbor, the IRS could challenge such loan's treatment as a real estate asset for purposes of the REIT asset and income tests and, if such a challenge were sustained, we could fail to qualify as a REIT.

***If our Operating Partnership failed to qualify as a partnership or is not otherwise disregarded for U.S. federal income tax purposes, we would cease to qualify as a REIT.***

If the IRS were to successfully challenge the status of our Operating Partnership as a partnership or disregarded entity for U.S. federal income tax purposes, it would be taxable as a corporation. In the event that this occurs, it would reduce the amount of distributions that our Operating Partnership could make to us. This would also result in our failing to qualify as a REIT and becoming subject to a corporate-level tax on our income, which would substantially reduce our cash available to pay distributions and the yield on your investment.

***We may not be able to recoup the costs associated with increased property taxes, which would adversely affect our performance and the value of your investment in us.***

We may be responsible for paying real property taxes applicable to properties owned by us. The property taxes may increase as property tax rates change and as the properties are assessed or reassessed by taxing authorities. We may be unable to recoup such increased costs, which could have a material adverse effect on our operations and the value of your investment.

**Retirement and Other Benefit Plan Risks**

***If the fiduciary of an employee benefit plan subject to the Employee Retirement Income Security Act of 1974, as amended, ("ERISA"), fails to meet the fiduciary and other standards under ERISA, the Code or common law as a result of an investment in shares of our common stock, the fiduciary could be subject to civil penalties.***

There are special considerations that apply to investing in our shares on behalf of trusts, pension, profit sharing or 401(k) plans, health or welfare plans that are subject to ERISA, plans and arrangements such as individual retirement accounts ("IRAs") or Keogh plans that are subject to Section 4975 of the Code and governmental, church and non-US plans ("Other Plans") that are not subject to ERISA or Section 4975 of the Code but may be subject to U.S. or non-U.S. federal, state, local or other laws or regulations with provisions similar to those of the fiduciary and prohibited transaction provisions of Title I of ERISA and Section 4975 of the Code ("Similar Laws"). If you are investing the assets of any of the entities (any such entity, a "Plan") identified in the prior sentence in our common stock, you should satisfy yourself that, as applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the investment is consistent with your fiduciary obligations under applicable law, including Title I of ERISA, Section 4975 of the Code and Similar Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the investment is made in accordance with the documents and instruments governing the Plan, including its investment policy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the investment satisfies the prudence and diversification requirements of ERISA and Similar Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•you have considered the liquidity interests of the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•you have considered whether the investment will produce "unrelated business taxable income" for the plan or IRA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our stockholders will be able to value the assets of the plan annually in accordance with ERISA requirements and applicable provisions of the plan or IRA; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the investment will not constitute a non-exempt prohibited transaction under Title I of ERISA, Section 4975 of the Code or Similar Laws.

Failure to satisfy the fiduciary standards of conduct and other applicable requirements of Title I of ERISA, Section 4975 of the Code or other applicable Similar Laws may result in the imposition of civil penalties and can subject the fiduciary to equitable remedies. In addition, if an investment in our shares constitutes a non-exempt prohibited transaction under Title I of ERISA or Section 4975 of the

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Code, the fiduciary that authorized or directed the investment may be subject to the imposition of excise taxes with respect to the amount invested.

***If our assets at any time are deemed to constitute "plan assets" under ERISA, that may lead to the rescission of certain transactions, tax or fiduciary liability and our being held in violation of certain ERISA and Code requirements.***

Stockholders subject to ERISA should consult their own advisors as to the effect of ERISA on an investment in the shares. As discussed under "Certain ERISA and Related Considerations," if our assets are deemed to constitute "plan assets" of stockholders that are Covered Plans (as defined below), (i) certain transactions that we might enter into in the ordinary course of our business might have to be rescinded and may give rise to certain excise taxes and fiduciary liability under Title I of ERISA and Section 4975 of the Code, (ii) our management, as well as various providers of fiduciary or other services to us (including our Advisor), and any other parties with authority or control with respect to us or our assets, may be considered fiduciaries or otherwise parties in interest or disqualified persons for purposes of the fiduciary responsibility and prohibited transaction provisions of Title I of ERISA and Section 4975 of the Code, and (iii) the fiduciaries of stockholders that are Covered Plans would not be protected from "co-fiduciary liability" resulting from our decisions and could be in violation of certain ERISA requirements.

Accordingly, prospective investors that are (i) "employee benefit plans" (within the meaning of Section 3(3) of ERISA), which are subject to Title I of ERISA, (ii) "plans" defined in Section 4975 of the Code, which are subject to Section 4975 of the Code (including "Keogh" plans and "individual retirement accounts"), or (iii) entities whose underlying assets are deemed to include plan assets within the meaning of Section 3(42) of ERISA and the regulations thereunder (e.g., an entity of which 25% or more of the total value of any class of equity interests is held by "benefit plan investors") (each such plan, account and entity described in clauses (i), (ii) and (iii) we refer to as "Covered Plans") should consult with their own legal, tax, financial and other advisors prior to investing to review these implications in light of such investor's particular circumstances. The sale of our common stock to any Covered Plan is in no respect a representation by us or any other person associated with the Offerings of our shares of common stock that such an investment meets all relevant legal requirements with respect to investments by plans generally or any particular plan, or that such an investment is appropriate for plans generally or any particular plan.

***We may face risks arising from potential control group liability.***

Under ERISA and the Code, all members of a group of commonly controlled trades or businesses may be jointly and severally liable for each other's obligations to any defined benefit pension plans maintained by an entity in the controlled group or to which such entity is obligated to contribute. These obligations may include the obligation to make required pension contributions, the obligation to fund any deficit amount upon pension plan termination and the obligation to pay withdrawal liability owed to a multi-employer (union) plan to which such entity makes contributions if the entity withdraws from an underfunded multi-employer pension plan. A 2013 U.S. Federal Appeals court decision found that certain supervisory and portfolio management activities of a private equity fund could cause a fund to be considered a trade or business for these purposes, and thus, liable for withdrawal liability owed by a fund's portfolio company to an underfunded multi-employer plan which covered the employees of the portfolio company. Accordingly, if we invested in a control type investment and if we were found to be engaged in a "trade or business" for ERISA purposes, we and the various entities in which we have a control type investment could be held liable for the defined benefit pension obligations of one or more of such investments.

**Item 1B. Unresolved Staff Comments**

None.

**Item 1C. Cybersecurity**

**Assessment, Identification and Management of Material Risks from Cybersecurity**

We rely on the cybersecurity strategy and policies implemented by Inland. Inland's cybersecurity strategy prioritizes detection and analysis of and response to known, anticipated or unexpected threats, effective management of security risks and resilience against cyber incidents. Inland's cybersecurity risk management processes include technical security controls, policy enforcement mechanisms, monitoring systems, tools and related services, which include tools and services from third-party providers, and management oversight to assess, identify and manage risks from cybersecurity threats. Inland has implemented and continues to implement risk-based controls designed to prevent, detect and respond to information security threats and we rely on those controls to help us protect our information, our information systems, and the information of our investors, and other third parties who entrust us with their sensitive information.

Inland's cybersecurity program includes physical, administrative and technical safeguards, as well as plans and procedures designed to help our sponsor and Advisor to prevent and timely and effectively respond to cybersecurity threats and incidents, including threats or incidents that may impact us, our Advisor, and Dealer Manager. Inland's cybersecurity risk management process seeks to monitor cybersecurity vulnerabilities and potential attack vectors, evaluate the potential operational and financial effects of any threat and mitigate such threats. The assessment of cybersecurity risks, including those which may impact us, our Advisor, and Dealer Manager,

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is integrated into Inland's risk management program. In addition, Inland periodically engages with third-party consultants and key vendors to assist it in assessing, enhancing, implementing, and monitoring its cybersecurity risk management programs, including performing penetration testing of Inland's networks, and security assessments of the effectiveness of Inland's information technology environment to identify potential vulnerabilities.

Inland's cybersecurity risk management and awareness programs include periodic identification and testing of vulnerabilities as well as regular phishing simulations for all of the employees of the Advisor and its affiliates. Inland undertakes periodic internal security reviews of its information systems and related controls, including systems affecting personal data and the cybersecurity risks of our Advisor, and Dealer Manager, and our critical third-party vendors (including the transfer agent and our independent valuation advisor) and other partners.

Inland has established a Computer Security Incident Response Team ("Inland CSIRT"), which aims to manage and mitigate the impact of cybersecurity breach events, including those arising from or impacting our Advisor, Dealer Manager and service providers (including the transfer agent and our independent valuation advisor), tenants, and other business contacts. Members of the Inland CSIRT include Inland's VP Director of IT Infrastructure & Information Security, who has more than 24 years of experience in information technology security and leads Inland's cybersecurity program, and its Head of Technology Strategy, as well as members of the firm's legal, risk, and communications groups. Inland has established a notification decision framework to determine when the Inland CSIRT will provide notifications regarding certain cybersecurity incidents, with different severity thresholds triggering notifications to different recipient groups, including members of our Advisor's management, and our Board and Audit Committee, as appropriate.

**Oversight of Cybersecurity Risks**

The Board and our Audit Committee oversee our cybersecurity risk exposures and the steps taken by management to identify, monitor and mitigate cybersecurity risks to align our risk exposure with our strategic objectives. With respect to such cybersecurity risk oversight, our Board and/or our Audit Committee receive periodic reports and/or updates from management on the primary cybersecurity risks facing us and the Advisor, and the Dealer Manager and the measures we, the Advisor, and the Dealer Manager are taking to mitigate such risks. In addition to such reports and updates, our Board and/or our Audit Committee receive updates from management as to changes to our and the Advisor's and the Dealer Manager's cybersecurity risk profile or certain newly identified risks. In the event of an incident, we intend to follow Inland's incident response plan, which outlines the steps to be followed from incident identification, mitigation, recovery and notification to legal counsel, senior leadership and the Board or Audit Committee, as appropriate.

**Impact of Cybersecurity Risks**

As of the date of this filing, we have not experienced a material information security breach incident and the expenses we have incurred from information security breach incidents have been immaterial, and we are not aware of any cybersecurity risks that are reasonably likely to materially affect our business. However, we may not be successful in preventing or mitigating a cybersecurity incident that could have a material adverse effect on our business, financial condition, results of operations, or cash flows. See "Part I, Item 1A, Risk Factors, Risks Related to Our Organizational Structure" for more information regarding cybersecurity risks.

**Item 2. Properties**

Other than our investment in the Operating Partnership, we had neither engaged in any operations nor generated any revenues through December 31, 2025. Our entire activity from inception through December 31, 2025 primarily consists of investment in the Operating Partnership, allocation of income (loss) and receipt of distributions from the Operating Partnership and distributions paid to our common stockholders. We contribute proceeds from the sale of shares of our common stock in the Offerings to the Operating Partnership and receive OP Units that correspond to the classes of our shares sold. We account for the units acquired in the Operating Partnership as an equity method investment during any period our investment in the Operating Partnership is not considered significant to the Operating Partnership and will consolidate the Operating Partnership at such time our investment in the Operating Partnership is considered significant to the Operating Partnership (based on generally accepted accounting principles), and thereafter present the results of operations on a consolidated basis. We expect to invest our capital and all our proceeds from the Offerings in the Operating Partnership and hold no other assets other than OP Units. We therefore expect to eventually consolidate the Operating Partnership. We have included an overview of the Operating Partnership's portfolio below, as we believe a discussion of the Operating Partnership's portfolio would be meaningful to investors as our cash flows and operating results are driven by the Operating Partnership, and subsequent invested capital will be significant to the Company.

***Overview of the Operating Partnership's Portfolio*** (all dollar amounts in thousands, except per square foot amounts)

As of December 31, 2025, the Operating Partnership's real property portfolio consisted of 35 properties totaling approximately 746,601 square feet of medical outpatient properties, 250,755 square feet of self-storage properties and one student housing property with 406 student housing beds. These properties are located in 17 markets throughout the U.S.

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The following table summarizes certain operating metrics of the Operating Partnership's portfolio by segment and by market as of December 31, 2025:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Property** | **Number of Properties** | **Percentage of <br>Gross Asset Value** <sup>(1)</sup> | **Rentable Square Feet** | **Percentage of Rentable Square Feet** | **Percentage Leased**<sup>(2)</sup> |
| **Healthcare** |  |  |  |  |  |
| &nbsp;&nbsp;Austin MSA<sup>(3)</sup>, TX | 1 | 2.6% | 16388 | 2.2% | 100.0% |
| &nbsp;&nbsp;Chicago MSA, IL | 3 | 6.2% | 56173 | 7.5% | 100.0% |
| &nbsp;&nbsp;Connecticut | 2 | 4.9% | 112369 | 15.1% | 100.0% |
| &nbsp;&nbsp;Dallas, TX | 1 | 1.5% | 16050 | 2.1% | 100.0% |
| &nbsp;&nbsp;Garden City, NY | 1 | 2.3% | 16920 | 2.3% | 100.0% |
| &nbsp;&nbsp;Greendale, IN | 1 | 2.1% | 24722 | 3.3% | 100.0% |
| &nbsp;&nbsp;Houston, TX | 2 | 12.5% | 88450 | 11.8% | 100.0% |
| &nbsp;&nbsp;Indianapolis, IN | 1 | 2.7% | 42187 | 5.7% | 100.0% |
| &nbsp;&nbsp;Oklahoma City, OK <sup>(4)</sup> | 1 | 3.2% | 33500 | 4.5% | 100.0% |
| &nbsp;&nbsp;Phoenix MSA, AZ | 10 | 26.4% | 199958 | 26.8% | 100.0% |
| &nbsp;&nbsp;Raleigh, NC | 1 | 1.6% | 13131 | 1.8% | 100.0% |
| &nbsp;&nbsp;San Antonio MSA, TX | 4 | 7.1% | 71995 | 9.6% | 75.8% |
| &nbsp;&nbsp;Salt Lake City MSA, UT | 2 | 6.4% | 54758 | 7.3% | 100.0% |
| **Healthcare Total** | 30 | 79.5% | 746601 | 100.0% |  |
| **Self-Storage** |  |  |  |  |  |
| &nbsp;&nbsp;Decatur, GA | 1 | 1.2% | 37650 | 15.0% | 72.7% |
| &nbsp;&nbsp;Marietta, GA | 1 | 1.8% | 59250 | 23.6% | 82.0% |
| &nbsp;&nbsp;Montgomery, AL | 2 | 6.7% | 153855 | 61.4% | 84.2% |
| **Self-Storage Total** | 4 | 9.7% | 250755 | 100.0% |  |
| **Education** |  |  | **Beds** | **Percentage of Beds** |  |
| &nbsp;&nbsp;St. Louis, MO | 1 | 10.8% | 406 | 100.0% | 88.4% |
| **Portfolio Total** | 35 | 100% |  |  |  |

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<sup>(1)</sup> Based on fair value as of December 31, 2025.

<sup>(2)</sup> For the Operating Partnership's student housing property, this percentage was calculated as the number of leased beds divided by the total beds as of December 31, 2025.

<sup>(3)</sup> "MSA" refers to metropolitan statistical area.

<sup>(4)</sup> Sole tenant on the property has been on cash basis since September 30, 2022.

As of December 31, 2025, all of the properties listed in the table were owned in fee simple, with the exception of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The Operating Partnership owns a leasehold interest in the medical outpatient property located in Greendale, Indiana, as well as a fee simple interest in the improvements located thereon. The ground lessor is Saint Elizabeth Medical Center, Inc. The ground lease has a term of approximately 60 years, expiring on December 31, 2077, with two 15-year renewal options. The Operating Partnership is required to pay the ground landlord base rent of $9 per month until December 31, 2026. On January 1, 2027 and every 10 years thereafter throughout the term, the base rent will be increased by an amount equal to 15% of the base rent for the immediately preceding 10-year period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The Operating Partnership owns a leasehold interest in a medical outpatient property located in Phoenix, Arizona, as well as a fee simple interest in the improvements located thereon. The ground lessor is the State of Arizona, as Trustee through the State Land Commissioner. The ground lease has a term of 99 years, expiring on July 6, 2092. The Operating Partnership is required to pay the ground landlord a current annual base rent of $67, which increases by an annual amount of $6 every five years starting on July 7, 2028 through maturity. The original calculation of the base rent was based on a percentage of the appraised value of the land but is fixed going forward, adjusted for the increases every five years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The Operating Partnership owns a leasehold interest in a medical outpatient property located in West Jordan, Utah, as well as a fee simple interest in the improvements located thereon. The ground lessor is Jordan Valley Medical Center, L.P. The ground lease has a term of 99 years, expiring on October 7, 2114, with three 15-year renewal options. Base rent over the

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first 15 years of the ground lease term is $360; however, the entirety of this amount has been paid. Total base rent after the first 15 years, i.e., from October 2030 through the remainder of the term, is $1.

***Average Effective Annual Base Rents***

The following table provides a summary of the average effective annual base rents across the Operating Partnership's portfolio as of December 31, 2025:

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| | |
|:---|:---|
| **Property Type** | **Average Effective Annual <br>Base Rent per Leased <br>Square Foot / Beds**<sup>(1)</sup> |
| Healthcare | $28.05 |
| Self-Storage | $16.02 |
| Education | $11665 |

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<sup>(1)</sup> For healthcare and self-storage properties, average effective annual base rent represents the base rent per leased square foot for the year ended December 31, 2025. For the education property, average effective annual base rent represents the base rent per leased bed for the year ended December 31, 2025. The average effective annual base rent includes the effects of rent concessions, abatements and rent collected from cash basis tenants, and excludes tenant recoveries, straight-line rent, and above-market and below-market lease amortization.

***Lease Terms***

Medical outpatient lease terms typically range from 5 to 15 years, and often include renewal options. Most of the Operating Partnership's medical outpatient leases include fixed rental increases or Consumer Price Index-based rental increases and are not based on the income or profits of any person. The majority of the Operating Partnership's self-storage leases and student housing residential leases expire within 12 months.

***Lease Expirations***

As of December 31, 2025, the weighted-average remaining term of the Operating Partnership's total leased healthcare portfolio was approximately 6.2 years based on annualized base rent and 6.3 years based on leased square footage, excluding renewal options. The following table summarizes the lease expirations at the Operating Partnership's medical outpatient properties for leases in place as of December 31, 2025, without giving effect to the exercise of renewal or termination rights, if any. The table excludes ground leases described above as well as the self-storage and student housing properties, as substantially all leases at such properties expire within 12 months.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Year Ending December 31** | **Number of<br>Expiring<br>Leases**<sup>(2)</sup> | **Rentable Square Feet** | **Percentage of Total Leased Square Feet** | **Annualized Base Rent ($)**<sup>(1)</sup> | **Percentage of Total Annualized Base Rent** |
| 2026 |  |  |  | $— |  |
| 2027 |  |  |  |  |  |
| 2028 | 2 | 58575 | 8.0% | 1595 | 7.6% |
| 2029 | 2 | 42442 | 5.8% | 1365 | 6.5% |
| 2030 | 2 | 71851 | 9.9% | 1902 | 9.1% |
| 2031 | 5 | 98935 | 13.6% | 3257 | 15.5% |
| 2032 | 8 | 252171 | 34.6% | 6373 | 30.4% |
| 2033 | 9 | 164457 | 22.5% | 5530 | 26.4% |
| 2034 |  |  |  |  |  |
| 2035 | 2 | 16050 | 2.2% | 428 | 2.0% |
| Thereafter | 1 | 24722 | 3.4% | 516 | 2.5% |
| **Total** | **31** | **729203** | **100.0%** | $**20966** | **100.0%** |

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<sup>(1)</sup> Annualized base rent is calculated as monthly base rent excluding the impact of any contractual tenant concessions per the terms of the lease as of December 31, 2025, multiplied by 12.

<sup>(2)</sup> None of the Operating Partnership's medical outpatient properties have early termination provisions.

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***Tenant Diversification***

The Operating Partnership believes that the tenants that occupy the Operating Partnership's real estate portfolio are generally well-diversified. As of December 31, 2025, there were three tenants that represented more than 10.0% of the Operating Partnership's healthcare portfolio's total annualized base rent or more than 10.0% of the Operating Partnership's healthcare portfolio's total leased square feet.

The following table reflects the Operating Partnership's ten largest healthcare tenants, based on annualized base rent, as of December 31, 2025.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Tenant Name** | **Number<br>of<br>Leases** | **Rentable Square Feet** | **Percentage of Rentable Square Feet** | **Total Annualized Base Rent** | **Percentage of Healthcare Portfolio Annualized Base Rent** | **Annualized Base Rent Per Square Foot** |
| Ironwood Cancer & Research Centers | 8 | 146245 | 19.6% | $5040 | 24.1% | $34.46 |
| Memorial Hermann Health System | 2 | 88450 | 11.8% | 3207 | 15.3% | 36.26 |
| Dermatology Associates of San Antonio | 2 | 36385 | 4.9% | 1304 | 6.2% | 35.85 |
| Starling Physicians, P.C. | 2 | 112369 | 15.0% | 1291 | 6.2% | 11.49 |
| Surgical Hospital of Oklahoma <sup>(1)</sup> | 1 | 33500 | 4.5% | 1099 | 5.2% | 32.79 |
| Banner Health | 1 | 29350 | 3.9% | 953 | 4.5% | 32.46 |
| Jordan Valley Medical Center LP | 1 | 25056 | 3.4% | 901 | 4.3% | 35.95 |
| Community Hospitals of Indiana | 1 | 42187 | 5.6% | 863 | 4.1% | 20.46 |
| NYU School of Medicine | 1 | 16920 | 2.3% | 767 | 3.7% | 45.35 |
| Emerus Community Hospital | 1 | 16388 | 2.2% | 731 | 3.5% | 44.62 |
| **Total** | **20** | **546850** | **73.2%** | $**16156** | **77.1%** | $**29.54** |

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<sup>(1)</sup> Tenant has been on cash basis since September 30, 2022.

**Item 3. Legal Proceedings**

Neither we nor the Operating Partnership is a party to, and none of the Operating Partnership's properties are subject to, any material pending legal proceedings.

**Item 4. Mine Safety Disclosures**

Not Applicable.

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**Part II**

**Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities**

**Offering of Common Stock**

The Offerings consist of six classes of shares of our common stock, Class T shares, Class S shares, Class D shares, Class I shares, Class X-1 shares and Class X-2 shares. The share classes have different upfront selling commissions and dealer manager fees, and different ongoing distribution fees. Shares of our common stock are not listed for trading on a stock exchange or other securities market and there is currently no established public trading market for our common stock. As of March 17, 2026, there were 55 holders of record of our Class T common stock, 0 holders of record of our Class S common stock, 13 holders of record of our Class D common stock, 172 holders of record of our Class I common stock, 2 holders of record of our Class X-1 common stock and 0 holders of record of our Class X-2 common stock. The following table details the selling commissions, dealer manager fees, and distribution fees for each applicable share class as of December 31, 2025:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Class T** <sup>(1)</sup> **Shares** | **Class S Shares** | **Class D Shares** | **Class I Shares** | **Class X-1 Shares** | **Class X-2 Shares** |
| Selling commissions and dealer manager fees (% of transaction price) | up to 3.5% | up to 3.5% | up to 1.5% |  |  |  |
| Distribution fee (% of NAV) | 0.85% | 0.85% | 0.25% |  |  |  |

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<sup>(1)</sup> For Class T shares sold in the Offerings (other than as part of the DRP), investors will pay upfront selling commissions of up to 3.0% of the transaction price and upfront dealer manager fees of 0.5% of the transaction price, however such amounts may vary at certain participating broker-dealers, provided that the sum will not exceed 3.5% of the transaction price. For Class T shares the distribution fee includes a representative distribution fee of 0.65% per annum, and a dealer distribution fee of 0.20% per annum, of the aggregate NAV for the Class T shares, however, with respect to Class T shares sold through certain participating broker-dealers, the representative distribution fee and the dealer distribution fee may be other amounts, provided that the sum of such fees will always equal 0.85% per annum of the NAV of such shares.

The purchase price per share for each class of our common stock will generally equal our prior month's NAV per share, as determined monthly, plus applicable selling commissions and dealer manager fees. Our NAV for each class of shares is based on the value of our investments (including real estate debt and other securities), the addition of any other assets (such as cash on hand) and the deduction of any liabilities, including the allocation/accrual of any performance participation to the Special Limited Partner (which is a class-specific accrual), and also includes the deduction of any management fees and distribution fees specifically applicable to such class of shares. Please refer to Exhibit 4.3 to this Annual Report on Form 10-K for further details on how our NAV is determined.

We are not offering Class A shares in the Offerings, and we currently have no Class A shares outstanding. However, pursuant to our Operating Partnership's partnership agreement, Class A units of the Operating Partnership may be redeemed for our common stock and/or cash, at the sole election of our Company. If we were to issue shares in exchange for Class A units of the Operating Partnership, we would expect to issue Class A shares with economic features that mirror those of Class A units of the Operating Partnership, including class-specific allocations for the management fee to our Advisor and the performance participation allocation to the Special Limited Partner.

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The following table presents our monthly NAV per share/unit for each of the seven classes of shares and units from August 31, 2023 through December 31, 2025:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Class T Shares** | **Class S Shares** <sup>(1)</sup> | **Class D Shares** | **Class I Shares** | **Class X-1 Shares** | **Class X-2 Shares** <sup>(1)</sup> | **Class A Units** |
| August 31, 2023 |  |  |  | $24.8858 |  |  | $24.9014 |
| September 30, 2023 |  |  |  | $25.1205 |  |  | $25.1527 |
| October 31, 2023 |  |  |  | $25.0919 |  |  | $25.1634 |
| November 30, 2023 |  |  |  | $24.8915 |  |  | $24.9781 |
| December 31, 2023 |  |  |  | $24.7558 |  |  | $24.6751 |
| January 31, 2024 |  |  |  | $24.7801 |  |  | $24.7122 |
| February 29, 2024 |  |  |  | $25.0134 |  |  | $24.9546 |
| March 31, 2024 |  |  |  | $25.0162 |  |  | $24.9413 |
| April 30, 2024 |  |  |  | $25.1950 |  |  | $24.1496 |
| May 31, 2024 | $24.9597 |  |  | $25.0439 |  |  | $25.0075 |
| June 30, 2024 | $24.7737 |  |  | $24.8908 |  |  | $24.9031 |
| July 31, 2024 | $24.1963 |  |  | $24.3043 |  |  | $24.3306 |
| August 31, 2024 | $23.9421 |  |  | $24.0584 |  |  | $24.0913 |
| September 30, 2024 | $23.9205 |  |  | $24.0496 |  |  | $24.0823 |
| October 31, 2024 | $24.1400 |  |  | $24.2688 |  |  | $24.3158 |
| November 30, 2024 | $24.1347 |  |  | $24.3083 |  |  | $24.3707 |
| December 31, 2024 | $24.2331 |  | $24.3655 | $24.4042 |  |  | $24.4827 |
| January 31, 2025 | $24.1636 |  | $24.2690 | $24.3332 |  |  | $24.4282 |
| February 28, 2025 | $23.9299 |  | $24.0335 | $24.0970 |  |  | $24.2065 |
| March 31, 2025 | $23.9082 |  | $24.9501 | $23.9901 |  |  | $24.1002 |
| April 30, 2025 | $23.7363 |  | $23.7928 | $23.8155 |  |  | $23.9371 |
| May 31, 2025 | $23.7166 |  | $23.8595 | $23.8064 |  |  | $23.9326 |
| June 30, 2025 | $23.3105 |  | $23.4274 | $23.3945 |  |  | $23.5336 |
| July 31, 2025 | $23.4882 |  | $23.4410 | $23.4187 |  |  | $23.5612 |
| August 31, 2025 | $23.3219 |  | $23.2822 | $23.2592 |  |  | $23.4165 |
| September 30, 2025 | $23.2551 |  | $23.2128 | $23.1978 |  |  | $23.3605 |
| October 31, 2025 | $23.3211 |  | $23.2781 | $23.2647 |  |  | $23.4398 |
| November 30, 2025 | $23.2084 |  | $23.1665 | $23.1520 |  |  | $23.3424 |
| December 31, 2025 | $23.1533 |  | $23.0984 | $23.0883 | $23.1998 |  | $23.2873 |

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<sup>(1)</sup> As of December 31, 2025, we had not sold any Class S or Class X-2 shares. Until we sell shares of Class S and Class X-2 common stock, the transaction price for these classes is based on NAV per share of our Class I shares as of each respective month. We will separately compute the NAV per share of each one of these new classes once we have shares of that class outstanding.

**Net Asset Value**

We calculate our NAV each month in accordance with valuation guidelines approved by our board of directors. NAV is not a measure used under GAAP and the valuations of and certain adjustments made to our assets and liabilities used in the determination of NAV will differ from GAAP. Stockholders should not consider NAV to be equivalent to stockholders' equity or any other GAAP measure. Please refer to Exhibit 4.3 to this Annual Report on Form 10-K for further details on how our NAV is determined.

Our total NAV presented in the following tables shows the Company and the Operating Partnership on a combined basis and includes the NAV of the Company's common stockholders, as well as partnership interests of the Operating Partnership held by parties other than us.

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The following table provides a breakdown of the major components of our NAV as of December 31, 2025 (dollars and shares/units in thousands):

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| | |
|:---|:---|
| **Components of NAV** | **As of<br>December 31, 2025** |
| Investments in real estate | $413590 |
| Cash and cash equivalents | 8753 |
| Restricted cash | 413 |
| Other assets | 5215 |
| Debt | (273378) |
| Other liabilities <sup>(1)</sup> | (14372) |
| Net asset value | $140221 |
| Total shares/units outstanding | 6026 |

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<sup>(1)</sup> Includes accrued distribution fees. Distribution fees apply only to Class T shares and units, Class S shares and units and Class D shares and units. For purposes of calculating NAV, we recognize the distribution fee as a reduction of NAV on a monthly basis as such fee is paid. Under GAAP, we accrue the full cost of the distribution fee as an offering cost at the time we sell Class T shares and units, Class S shares and units, and Class D shares and units. As of December 31, 2025, we had accrued under GAAP $279 of distribution fees payable to the Dealer Manager related to the Class T shares and units and Class D shares and units. As of December 31, 2025, we had not sold or issued any Class S shares or units, therefore, we had not accrued any distribution fees payable to the Dealer Manager related to such shares or units. The Dealer Manager does not retain any of these fees, all of which are retained by, or reallowed (paid) to, participating broker-dealers and servicing broker-dealers for ongoing stockholder services performed by such broker-dealers.

The following table sets forth our NAV and NAV per share/unit by class as of December 31, 2025 (dollars and shares/units in thousands except per share/unit data):

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **NAV Per Share/Unit** | **Class T<br>Shares/Units** | **Class D<br>Shares/Units** | **Class I<br>Shares/Units** | **Class X-1 <br>Shares/Units** | **Class A Units** | **Total** |
| Net asset value | $4177 | $566 | $10146 | $100 | $125232 | $140221 |
| Number of outstanding shares/units | 180 | 25 | 439 | 4 | 5378 | 6026 |
| NAV per share/unit as of December 31, 2025 | $23.1533 | $23.0984 | $23.0883 | $23.1998 | $23.2873 |  |

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Set forth below are the weighted averages of the key assumptions used by our independent valuation advisor in the discounted cash flow analysis used for the December 31, 2025 valuations, based on property types:

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| | | |
|:---|:---|:---|
| **Property Type** | **Discount Rate** | **Exit Capitalization Rate** |
| Healthcare | 7.54% | 6.33% |
| Self-Storage | 8.17% | 6.42% |
| Education | 8.50% | 6.75% |

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A change in these key assumptions would impact the calculation of the value of our property investments. For example, assuming all other factors remain unchanged, the changes listed below would result in the following effects on our property investment values:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Property Type** | **Hypothetical Change** | **Healthcare** | **Self-Storage** | **Education** |
| Discount rate (weighted average) | 0.25% decrease | 1.83% | 1.90% | 1.79% |
|  | 0.25% increase | (1.83)% | (1.65)% | (1.79)% |
| Exit capitalization rate (weighted average) | 0.25% decrease | 2.38% | 2.40% | 2.01% |
|  | 0.25% increase | (2.12)% | (2.08)% | (2.01)% |

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The following table reconciles equity under GAAP per our combined balance sheets to our NAV (dollars in thousands):

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| | |
|:---|:---|
| **Reconciliation of Equity to NAV** | **As of<br>December 31, 2025** |
| Equity per GAAP | $114214 |
| Adjustments: |  |
| &nbsp;&nbsp;Accumulated depreciation and amortization | 70500 |
| &nbsp;&nbsp;Unrealized net real estate and debt appreciation (depreciation) | (39566) |
| &nbsp;&nbsp;Straight-line rent adjustment | (5221) |
| &nbsp;&nbsp;Unamortized equity-based compensation | 48 |
| &nbsp;&nbsp;Other liabilities | 246 |
| Net asset value | $140221 |

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**Distributions by the Company**

The table below presents the aggregate monthly gross distributions declared by the Company by record date for all classes of shares of common stock outstanding since June 12, 2023.

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| | |
|:---|:---|
| **Record Date** | **Aggregate monthly gross distribution declared per share**<sup>(1)</sup> |
| August 31, 2023 | $0.0885 |
| September 30, 2023 | $0.0885 |
| October 31, 2023 | $0.0885 |
| November 30, 2023 | $0.0885 |
| December 31, 2023 | $0.0885 |
| January 31, 2024 | $0.0885 |
| February 29, 2024 | $0.0885 |
| March 31, 2024 | $0.0885 |
| April 30, 2024 | $0.0885 |
| May 31, 2024 | $0.0885 |
| June 30, 2024 | $0.0885 |
| July 31, 2024 | $0.0885 |
| August 31, 2024 | $0.0885 |
| September 30, 2024 | $0.0885 |
| October 31, 2024 | $0.0885 |
| November 30, 2024 | $0.0885 |
| December 31, 2024 | $0.0885 |
| January 31, 2025 | $0.1042 |
| February 28, 2025 | $0.1042 |
| March 31, 2025 | $0.1042 |
| April 30, 2025 | $0.1042 |
| May 31, 2025 | $0.1042 |
| June 30, 2025 | $0.1042 |
| July 31, 2025 | $0.1042 |
| August 31, 2025 | $0.1042 |
| September 30, 2025 | $0.1042 |
| October 31, 2025 | $0.1042 |
| November 30, 2025 | $0.1042 |
| December 31, 2025 | $0.1042 |

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<sup>(1)</sup> For Class I and Class X-1 common stock, these gross distributions declared also represent their net distributions declared.

The gross distribution declared was reduced each month for Class T and Class D shares of the Company's common stock for applicable class-specific distribution fees to arrive at a lower net distribution amount paid to such class. For a description of the distribution fees applicable to Class D, Class S and Class T shares of the Company's stock, please see Note 6 to our Financial Statements, "Transactions with Related Parties," which is included in this Annual Report on Form 10-K. As of December 31, 2025, the Company had not issued any shares of Class S or Class X-2 common stock.

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The following table shows the monthly net distribution per share for shares of Class T and Class D common stock outstanding since May 1, 2024 and December 1, 2024, respectively, the first day such shares became outstanding.

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| | | |
|:---|:---|:---|
| **Record Date** | **Monthly net distribution declared per share of Class T common stock** | **Monthly net distribution declared per share of Class D common stock** |
| May 31, 2024 | $0.0704 | $— |
| June 30, 2024 | $0.0711 | $— |
| July 31, 2024 | $0.0707 | $— |
| August 31, 2024 | $0.0711 | $— |
| September 30, 2024 | $0.0718 | $— |
| October 31, 2024 | $0.0713 | $— |
| November 30, 2024 | $0.0717 | $— |
| December 31, 2024 | $0.0711 | $0.0834 |
| January 31, 2025 | $0.0867 | $0.0990 |
| February 28, 2025 | $0.0884 | $0.0995 |
| March 31, 2025 | $0.0869 | $0.0991 |
| April 30, 2025 | $0.0875 | $0.0992 |
| May 31, 2025 | $0.0870 | $0.0991 |
| June 30, 2025 | $0.0876 | $0.0993 |
| July 31, 2025 | $0.0873 | $0.0992 |
| August 31, 2025 | $0.0872 | $0.0992 |
| September 30, 2025 | $0.0879 | $0.0994 |
| October 31, 2025 | $0.0874 | $0.0992 |
| November 30, 2025 | $0.0879 | $0.0994 |
| December 31, 2025 | $0.0874 | $0.0992 |

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The following table outlines the tax character of distributions on shares of the Company's common stock paid in 2025 and 2024 as a percentage of total distributions:

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| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Ordinary income |  |  |
| Capital gain |  |  |
| Return of capital | 100% | 100% |

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*Sources of Distributions to Common Stockholders*

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **For the period from June 12, 2023 (date of initial capitalization) through December 31, 2023** |
|  | **2025** | **2024** |  |
| **Distributions to Holders of Common Stock** |  |  |  |
| &nbsp;&nbsp;Paid in cash | $273 | $131 | $3 |
| &nbsp;&nbsp;Reinvested in shares | 143 | 8 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total distributions | $416 | $139 | $3 |
| &nbsp;&nbsp;Cash flows from operating activities | $— | $— | $— |

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During both the years ended December 31, 2025 and 2024 and the period from June 12, 2023 (date of initial capitalization) through December 31, 2023, 100% of our distributions were funded by the Operating Partnership, which used its cash flows generated from operations to fund these distributions.

**Share Repurchase Plan**

We adopted the SRP, whereby on a monthly basis, stockholders may request that we repurchase all or any portion of their shares. We may choose to repurchase all, some or none of the shares that have been requested to be repurchased at the end of any particular month,

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in our discretion, subject to any limitations in the SRP. The total amount of aggregate repurchases of Class T, Class S, Class D, Class I, Class X-1 and Class X-2 shares will be limited to 2% of the aggregate NAV per month and 5% of the aggregate NAV per calendar quarter. Shares will be repurchased at the Transaction Price on the applicable repurchase date, subject to any early repurchase deduction. Shares that have not been outstanding for at least one year will be repurchased at 95% of the Transaction Price. Stockholders who have received shares of our common stock in exchange for OP Units may include the period of time such stockholder held such OP Units for purposes of calculating the holding period for such shares of our common stock. In the event that we, at our sole discretion, elect to issue Class A shares to holders of OP Units seeking redemption, we expect to amend the SRP to address the repurchase of Class A shares on the same terms that are applicable to the Class T, Class S, Class D, Class I, Class X-1 and Class X-2 shares. Due to the illiquid nature of investments in real estate, we may not have sufficient liquid resources to fund repurchase requests and have established limitations on the amount of funds we may use for repurchases during any calendar month and quarter. Further, our board of directors may modify or suspend the SRP if in its reasonable judgment it deems such action to be in our best interest. We began the SRP in January 2024, the first month of the first full calendar quarter following the conclusion of our escrow period.

The table below sets forth the number of shares we repurchased pursuant to our SRP during the year ended December 31, 2025.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Period** | **Total Number<br>of Shares<br>Repurchased** | **Average<br>Price Paid<br>per Share** | **Total Number<br>of Shares<br>Repurchased<br>as Part of<br>Publicly<br>Announced<br>Plans or<br>Programs** <sup>(1)</sup> | **Maximum Number of Shares <br>that May Yet be<br>Purchased Under<br>the Plans<br>or Programs** <sup>(2)</sup> |
| January 2025 |  | $— |  |  |
| February 2025 |  |  |  |  |
| March 2025 |  |  |  |  |
| April 2025 |  |  |  |  |
| May 2025 |  |  |  |  |
| June 2025 |  |  |  |  |
| July 2025 |  |  |  |  |
| August 2025 | 1092 | 23.37 | 1092 |  |
| September 2025 |  |  |  |  |
| October 2025 |  |  |  |  |
| November 2025 | 6758 | 23.23 | 6758 |  |
| December 2025 |  |  |  |  |
|  | 7850 | $23.25 | 7850 |  |

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<sup>(1)</sup> All repurchase requests under our SRP were satisfied.

<sup>(2)</sup> Repurchases are limited as described above

**Equity Compensation Plan**

Our director compensation plan ("DCP") offers our independent directors and certain non-independent directors who are designated as participants by the board of directors an opportunity to participate in our growth through awards in the form of, or based on, our common stock. The DCP authorizes the granting of restricted stock to independent directors and certain non-independent directors who are designated as participants by the board of directors for participation in the plan. The board of directors designated Ella S. Neyland as such a participant with respect to the unvested award granted to her on August 1, 2025 in connection with her re-election to the board and confirmed that her existing unvested awards were not terminated by her no longer qualifying as an independent director of the Company.

Under the DCP and subject to such plan's conditions and restrictions, each of our independent directors will receive restricted Class I shares. Such restricted shares will vest on the first anniversary of the grant date if the recipient remains a participant under the DCP through such date; provided, however, that restricted stock will become fully vested on the earlier occurrence of: (i) the termination of the independent director's service as a director due to his or her death or disability; or (ii) a change in control. These restricted shares are issued pursuant to an exemption from registration under Section 4(a)(2) of the Securities Act.

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The table below summarizes total stock grants we made at each grant date as of December 31, 2025 ($ in thousands except for per share data).

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Grant Date** | **Class of common stock granted** | **Total number of shares granted** | **Grant Date Fair Value Per Share** | **Total Fair Value of Grant** | **Vesting Date** |
| 10/2/2023 | Class I | 935 | $24.89 | $23 | 10/2/2024 |
| 3/19/2024 | Class I | 2387 | $25.01 | $60 | 3/19/2025 |
| 8/1/2024 | Class I | 3335 | $24.89 | $83 | 8/1/2025 |
| 8/1/2025 | Class I | 3548 | $23.39 | $83 | 8/1/2026 |

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As of December 31, 2025, we have granted 10,205 restricted shares of which 6,657 have vested and none were forfeited.

**Securities Authorized for Issuance under the Equity Compensation Plans**

For information regarding the securities authorized for issuance under our DCP, see Item 12, "Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters" of this Annual Report on Form 10-K.

**Unregistered Sales of Equity Securities**

All sales of unregistered securities during the year ended December 31, 2025 were previously reported in a Current Report on Form 8-K.

**Use of Proceeds**

We have registered with the SEC the Public Offering of up to $1.25 billion in shares of common stock, consisting of up to $1 billion in shares in our primary offering and up to $250 million in shares pursuant to the DRP. On September 28, 2023, our Registration Statement on Form S-11 (File No. 333-272750) with respect to our Public Offering was declared effective by the SEC. Inland Securities Corporation, an affiliate of our sponsor, is the Dealer Manager for the Public Offering. We are offering to sell any combination of four classes of shares of our common stock in the Public Offering: Class T shares, Class S shares, Class D shares and Class I shares, with a dollar value up to the maximum offering amount. The share classes have different upfront selling commissions and dealer manager fees, and different ongoing distribution fees. The purchase price per share for each class of common stock will vary and will generally equal our prior month's NAV per share, as determined monthly, plus applicable upfront selling commissions and dealer manager fees.

The following table presents information about the Public Offering and use of proceeds therefrom as of December 31, 2025 ($ in thousands except for share data):

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Class T<br>Shares** | **Class S<br>Shares** | **Class D<br>Shares** | **Class I<br>Shares** | **Total** |
| Public Offering shares sold | 176028 |  | 24491 | 337405 | 537924 |
| Gross proceeds from primary offering | $4249 | $— | $574 | $8080 | $12903 |
| Reinvestments of distributions | 49 |  | 12 | 90 | 151 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total gross proceeds | 4298 |  | 586 | 8170 | 13054 |
| Selling commissions and dealer manager fees | 114 |  |  |  | 114 |
| Other expenses |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 114 |  |  |  | 114 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Public Offering proceeds <sup>(1)</sup> | $4184 | $— | $586 | $8170 | $12940 |

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<sup>(1)</sup> Excludes Public Offering costs of $5,473 incurred by the Operating Partnership.

We also pay our Dealer Manager distribution fees with respect to Class T, Class S and Class D shares sold in the Public Offering, but such fees are funded by the Operating Partnership from its operations rather than the Public Offering proceeds.

We intend to use the net proceeds from such sales to acquire a diversified portfolio of stabilized, income-generating commercial real estate across alternative property types, with a non-exclusive focus on self-storage facilities, student housing properties and healthcare-related properties.

We contributed the net proceeds from the Offerings to the Operating Partnership and received OP Units that correspond to the classes of the shares sold. The Operating Partnership primarily used the proceeds for general corporate expenses, repayment of borrowings made from the Credit Facility (as hereinafter defined) and redemptions.

**Item 6. Reserved**

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**Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations**

*Certain statements in this "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in this Annual Report on Form 10-K constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act, and Section 21E of the Exchange Act. Words such as "may," "could," "should," "expect," "intend," "plan," "goal," "seek," "anticipate," "believe," "estimate," "predict," "variables," "potential," "continue," "expand," "maintain," "create," "strategies," "likely," "will," "would" and variations of these terms and similar expressions, or the negative of these terms or similar expressions, are intended to identify forward-looking statements.*

*These forward-looking statements are not historical facts but reflect the intent, belief or current expectations of our management based on their knowledge and understanding of the business and industry, the economy and other future conditions. These statements are not guarantees of future performance, and we caution stockholders not to place undue reliance on forward-looking statements. Actual results may differ materially from those expressed or forecasted in the forward-looking statements due to a variety of risks, uncertainties and other factors, including but not limited to the factors listed and described under "Risk Factors" in this Annual Report on Form 10-K.*

We routinely post important information about us and our business, including financial and other information for investors, on our website. We encourage investors to visit our website at ipcaltreit.com from time to time, as information is updated and new information is posted.

**Overview**

We are a Maryland corporation that intends to invest in a diversified portfolio of stabilized, income-generating commercial real estate across alternative property types, with a non-exclusive focus on self-storage facilities, student housing properties and healthcare-related properties. Healthcare-related assets may include medical outpatient buildings, ambulatory surgery centers, senior living communities and life science and laboratory facilities. We may also invest in value-add or other development projects in these asset classes, potentially through a variety of ownership structures including but not limited to direct ownership, joint ventures, co-investment opportunities, preferred equity positions and others. We were originally formed on June 17, 2021, as a Delaware limited liability company named "Inland Private Capital Alternative Assets Fund, LLC." We converted to a Maryland corporation on June 12, 2023 and elected to be taxed as a REIT for U.S. federal income tax purposes commencing with our taxable year ended December 31, 2024. Until that time, we were subject to taxation at regular corporate rates under the Internal Revenue Code of 1986, as amended (the "Code"). We had little or no taxable income for the taxable year ended December 31, 2023. We are the sole general partner of IPC Alternative Real Estate Operating Partnership, LP (formerly known as IPC Alternative Assets Operating Partnership, LP), our Operating Partnership.

On September 28, 2023, the SEC declared our Registration Statement on Form S-11 (File No. 333-272750) for our Public Offering of common stock effective. We have registered a public offering of up to $1.25 billion in shares of common stock, consisting of up to $1.0 billion in shares in our primary offering and up to $250 million shares pursuant to our distribution reinvestment plan (the "Public Offering"). We are offering to sell any combination of four classes of shares of our common stock, Class T shares, Class S shares, Class D shares and Class I shares, with a dollar value up to the maximum offering amount. The share classes have different upfront selling commissions and dealer manager fees, and different ongoing distribution fees. The purchase price per share for each class of common stock will vary and will generally equal our prior month's NAV per share, as determined monthly, plus applicable upfront selling commissions and dealer manager fees.

As of December 1, 2023, we had satisfied the minimum offering requirement in all states, except the State of Pennsylvania, and authorized the release of proceeds from escrow. Subscriptions from Pennsylvania residents will not be released from escrow until (i) we have received, prior to the termination of our primary offering, purchase orders from all sources for at least $62.5 million (including subscription orders by residents of other jurisdictions and by The Inland Real Estate Group of Companies, Inc. (together with its subsidiaries and affiliates, "Inland"), its affiliates and our directors and officers) of shares of our common stock in any combination of purchases of Class T shares, Class S shares, Class D shares and Class I shares and/or (ii) we obtain, prior to the termination of our primary offering, $62.5 million in assets (including by consolidating the Operating Partnership in our financial statements under accounting principles generally accepted in the United States of America ("GAAP")).

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On August 28, 2025, we commenced a private offering of up to $500 million of our Class I shares, Class X-1 shares and Class X-2 shares of common stock to "accredited investors" as defined in Regulation D promulgated under the Securities Act (the "Private Offering"). The purchase price per share for each class of common stock in the Private Offering will vary and will generally be the prior month's NAV per share for such class. No upfront selling commissions, dealer manager fees or ongoing distribution fees will be paid with respect to purchases of Class I shares, Class X-1 shares and Class X-2 shares sold in the Private Offering. The Private Offering is being conducted pursuant to Rule 506(c) of Regulation D and other applicable exemptions. Class I shares, Class X-1 shares and Class X-2 shares in the Private Offering are only available through distribution participants selected by Inland Securities Corporation (the "Dealer Manager") as being eligible based on the amount of offering proceeds anticipated to be raised through such distribution participants, as well as other factors, in the Dealer Manager's discretion. Distribution participants that are initially eligible only to sell Class I or Class X-1 shares in the Private Offering, may become eligible to sell Class X-1 and/or Class X-2 shares in the Private Offering if the gross proceeds in the Private Offering raised by such distribution participants reach the target specified by the Dealer Manager. We may also offer investors who have purchased Class I shares in the Public Offering and have held such shares for at least one year the option to exchange such shares for Class X-1 or Class X-2 shares at an exchange rate based on the NAV per share of each class involved in the exchange as of the exchange date if such investor's financial intermediary has reached the requisite gross proceeds raised threshold in the Private Offering as specified by the Dealer Manager. All Class I shares sold in the Private Offering will be exchanged for Class X-1 or Class X-2 shares at an exchange rate based on the NAV per share of each class involved in the exchange as of the exchange date regardless of hold period if the gross proceeds in the Private Offering raised by the applicable distribution participant reach the target specified by the Dealer Manager. Similarly, Class X-1 shares sold in the Private Offering will be exchanged for Class X-2 shares at an exchange rate based on the NAV per share of each class as of the exchange date if the gross proceeds in the Private Offering raised by the applicable distribution participant reach the target specified by the Dealer Manager.

As of March 17, 2026, we have issued 189,090 shares of Class T common stock, 24,711 shares of Class D common stock, 365,029 shares of Class I common stock and 10,770 shares of Class X-1 common stock, including shares purchased under the DRP, in the Offerings (defined below).

Other than our investment in the Operating Partnership as described below, we had neither engaged in any operations nor generated any revenues through December 31, 2025. Our entire activity from inception through December 31, 2025 primarily consists of investment in the Operating Partnership, allocation of income (loss) and receipt of distributions from the Operating Partnership and distributions paid to our common stockholders. When we receive proceeds from the sale of shares of our common stock in the Public Offering and Private Offering (collectively, the "Offerings"), we contribute such proceeds to the Operating Partnership and receive Operating Partnership units ("OP Units") that correspond to the classes of our shares sold. As of December 31, 2025, we hold 176,028 Class T OP Units, 24,491 Class D OP Units, 347,759 Class I OP Units and 4,298 Class X-1 OP Units, representing a total 9.2% interest in the Operating Partnership. We account for the units acquired in the Operating Partnership as an equity method investment during any period our investment in the Operating Partnership is not considered significant to the Operating Partnership and will consolidate the Operating Partnership at such time our investment in the Operating Partnership is considered significant to the Operating Partnership (based on GAAP), and thereafter present the results of operations on a consolidated basis. We expect to invest our capital and all our proceeds from the Offerings in the Operating Partnership and hold no other assets other than OP Units. We therefore expect to eventually consolidate the Operating Partnership, and we have included financial statements of the Operating Partnership in Part IV Item 15 in this Annual Report on Form 10-K, as we believe a discussion of the performance and results of operations of the Operating Partnership would be meaningful to investors as our cash flows and operating results are driven by the Operating Partnership, and subsequent invested capital will be significant to the Company.

***The Operating Partnership***

The Operating Partnership was originally formed on June 21, 2021 as a Delaware limited partnership. As of December 31, 2025 and 2024, the Operating Partnership had total assets of $431.7 million and $453.0 million, respectively. As of both December 31, 2025 and 2024, the Operating Partnership owned 30 medical outpatient properties totaling 746,601 square feet, four self-storage properties totaling 250,755 square feet and one student housing property with 406 student housing beds. The properties owned as of both December 31, 2025 and 2024 are located in 12 states. A majority of the Operating Partnership's medical outpatient properties are single-tenant medical outpatient buildings. For the year ended December 31, 2025, medical outpatient properties, self-storage properties and the student housing property represented 73.7%, 10.7% and 15.6%, respectively, of the Operating Partnership's total revenues. For the year ended December 31, 2024, medical outpatient properties, self-storage properties and the student housing property represented 76.9%, 8.0% and 15.1%, respectively, of the Operating Partnership's total revenues. As of December 31, 2025, medical outpatient buildings, self-storage properties and the student housing property were 97.7%, 81.9% and 88.4% leased, respectively. As of December 31, 2024, medical outpatient buildings, self-storage properties and the student housing property were 100%, 81.2% and 99% leased, respectively.

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The Operating Partnership acquired its 30 medical outpatient properties on September 2, 2021 through a "roll-up" transaction with eight separate programs sponsored by an affiliate of the Company's sponsor. In exchange for the properties, the Operating Partnership issued 373,033 OP Units (prior to the unit split as described below) to the Delaware statutory trusts that owned the properties, which were subsequently distributed to the investors in those trusts. The Operating Partnership acquired its sole student housing property, City Lofts on Laclede Student Housing ("University Lofts") in St. Louis, MO, on December 1, 2022, for a purchase price of $39.1 million, including the assumed Parkway UL Mortgage Loan (as defined below) of $22 million, which was the original principal amount of the loan, in connection with the acquisition. Effective July 31, 2023, the Operating Partnership effected a unit split for each OP Unit resulting in 5,815,959 Class A OP Units outstanding. The Operating Partnership has no employees.

On April 5, 2024, the Operating Partnership acquired four self-storage properties (the "Storage Properties") from an affiliate of the Company, for a total purchase price of $43.8 million, including $17.6 million of assumed loans and corresponding swaps with First Merchants Bank. The Storage Properties are comprised of 2,275 storage units, including 1,810 climate-controlled units. The Storage Properties are encumbered by a loan in the aggregate principal amount of $28 million.

The Company, the Operating Partnership and our advisor, IPC Alternative Real Estate Advisor, LLC (the "Advisor") are parties to an amended and restated advisory agreement (as may be amended or restated from time to time, the "Advisory Agreement"), which has been effective since August 28, 2025. Pursuant to the Advisory Agreement, the Advisor is responsible for sourcing, evaluating and monitoring the Company's and the Operating Partnership's investment opportunities and making decisions related to the acquisition, management, financing and disposition of the Company's and Operating Partnership's assets, in accordance with the Company's investment objectives, guidelines, policies and limitations, subject to oversight by the Company's board of directors. The Advisory Agreement provides that the Operating Partnership or the Company will pay the Advisor a management fee equal to (i) 1.25% of aggregate NAV of the Operating Partnership attributable to outstanding Class T OP Units, Class S OP Units, Class D OP Units and Class I OP Units of the Operating Partnership, (ii) 1.00% of the aggregate NAV of the Operating Partnership attributable to outstanding Class X-1 OP Units, (iii) 0.75% of the aggregate NAV of the Operating Partnership attributable to outstanding Class X-2 OP Units and (iv) 0.50% of the aggregate NAV of the Operating Partnership attributable to outstanding Class A OP Units, in each case per annum payable monthly in arrears. The management fee may be paid, at the Advisor's election, in cash, Class I shares of the Company or Class I OP Units of the Operating Partnership.

The Operating Partnership is governed by the Fourth Amended and Restated Limited Partnership Agreement of the Operating Partnership, dated August 28, 2025 (as may be amended or restated from time to time, the "Amended and Restated Limited Partnership Agreement"). On August 24, 2023, IPC REIT Special Limited Partner, LP (the "Special Limited Partner"), an affiliate, was admitted as a limited partner of the Operating Partnership and the Special Limited Partner contributed $10,000 for a performance participation interest in the Operating Partnership. The Special Limited Partner's performance participation interest in the Operating Partnership entitles it to receive an allocation of "Total Return," "Class X-1 Total Return" and "Class A Total Return."

"Total Return" is defined as distributions paid or accrued on OP Units (excluding Class X-1 OP Units, Class X-2 OP Units and Class A OP Units) plus the change in the NAV of such OP Units (excluding Class X-1 OP Units, Class X-2 OP Units and Class A OP Units), adjusted for subscriptions and repurchases. Under the Amended and Restated Limited Partnership Agreement, the annual Total Return will be allocated solely to the Special Limited Partner only after the Class T OP Unit, Class S OP Unit, Class D OP Unit and Class I OP Unit holders have received a total return of 5% (after recouping any loss carryforward amount) and such allocation will continue until the allocation between the Special Limited Partner and all other such OP Unit holders is equal to 12.5% and 87.5%, respectively. Thereafter, the Special Limited Partner will receive an allocation of 12.5% of the annual Total Return.

"Class X-1 Total Return" is defined as distributions paid or accrued on Class X-1 OP Units plus the change in NAV of such Class X-1 OP Units, adjusted for subscriptions and repurchases. Under the Amended and Restated Limited Partnership Agreement, the annual Class X-1 Total Return will be allocated solely to the Special Limited Partner only after the Class X-1 OP Unit holders have received a total return of 5% (after recouping any loss carryforward amount) and such allocation will continue until the allocation between the Special Limited Partner and all other such Class X-1 OP Unit holders is equal to 10.0% and 90.0%, respectively. Thereafter, the Special Limited Partner will receive an allocation of 10.0% of the annual Class X-1 Total Return.

"Class A Total Return" is defined as distributions paid or accrued on Class A OP Units plus the change in the NAV of such Class A OP Units, adjusted for subscriptions and repurchases. Under the Amended and Restated Limited Partnership Agreement, the annual Class A Total Return will be allocated solely to the Special Limited Partner only after the Class A OP Unit holders have received a total return of 5% (after recouping any loss carryforward amount) and such allocation will continue until the allocation between the Special Limited Partner and all other such Class A OP Unit holders is equal to 12.5% and 87.5%, respectively. Thereafter, the Special Limited Partner will receive an allocation of 12.5% of the annual Class A Total Return.

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The Special Limited Partner is not entitled to a performance participation allocation with respect to Class X-2 OP Units.

The Operating Partnership is primarily focused on investing in a diversified portfolio of stabilized, income-generating commercial real estate across alternative property types, with a non-exclusive focus on self-storage facilities, student housing properties and healthcare-related properties. Healthcare-related assets may include medical outpatient buildings, ambulatory surgery centers, senior living communities and life science and laboratory facilities. The Operating Partnership may also invest in value-add or other development projects in these asset classes, potentially through a variety of ownership structures including but not limited to direct ownership, joint ventures, co-investment opportunities, preferred equity positions and others. In the initial stages of our capital raise pursuant to the Offerings, a primary source of proposed real estate investments will consist of DST or other private investment programs sponsored by IPC, an affiliate of our sponsor. These investments are expected to take the form of a transaction structured as a tax-deferred contribution of the property owned by the DST or other IPC-sponsored investment program to the Operating Partnership in exchange for OP Units under Section 721 of the Code. As part of this strategy, IPC has the DST Program, which commenced on June 27, 2024, through which IPC sponsors a series of private placements exempt from registration pursuant to Rule 506(b) of Regulation D under the Securities Act of beneficial interests in specific DSTs owning one or more real properties. In connection with the DST Program, the Operating Partnership receives a fair market value purchase option with respect to each DST, giving the Operating Partnership the option, but not the obligation, exercisable in the Operating Partnership's sole and absolute discretion, to require DST investors to exchange their DST interests for Class T OP Units, Class S OP Units, Class D OP Units, Class I OP Units, or, in limited circumstances at the discretion of the Operating Partnership, cash, which option may be exercised during the three, three-month periods that begin on the 24-month, 36-month and 48-month anniversary of the final closing of the sale of DST interests pursuant to each private placement.

The following discussion and analysis is based on the consolidated financial statements for the years ended December 31, 2025, 2024 and 2023 for the Operating Partnership. Our stockholders should read the following discussion and analysis along with the consolidated financial statements of the Operating Partnership and the related notes thereto included in Part IV Item 15 in this Annual Report on Form 10-K.

As of December 31, 2025 and 2024, the Operating Partnership operates in three reportable segments: Healthcare, Self-Storage and Education. As of December 31, 2023, the Operating Partnership operated in two reportable segments: Healthcare and Education. During the second quarter of 2023, the Operating Partnership retitled the segment Student Housing to Education. The Operating Partnership assesses performance and makes operational decisions based on the performance of each segment individually.

**Liquidity and Capital Resources – Operating Partnership**

**General**

The Operating Partnership's primary uses and sources of cash are as follows:

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| | | | |
|:---|:---|:---|:---|
| **Uses** | **Uses** | **Sources** | **Sources** |
| •  | Interest and principal payments on mortgage loans or lines of credit | •  | Cash receipts from tenants |
| •  | Property operating expenses | •  | Proceeds from new or refinanced mortgage loans |
| •  | General and administrative expenses | •  | Capital contribution from General Partner |
| •  | Organization and offering expenses | •  | Proceeds from issuance of securities |
| •  | Distributions to unitholders | •  | Proceeds from related party line of credit |
| •  | Payments for redemptions of OP Units | •  | Proceeds from sales of real estate (if any) |
| •  | Fees payable to the Advisor and property managers |  |  |
| •  | Capital expenditures, tenant improvements and leasing commissions |  |  |
| •  | Acquisitions of real estate directly or indirectly through the purchase of equity interests in a DST, or through joint ventures |  |  |

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As of December 31, 2025, the Operating Partnership was not actively marketing for sale any properties.

As of December 31, 2025 and 2024, the Operating Partnership had total debt outstanding of $273.4 million and $273.4 million, respectively, excluding the discount on assumed mortgage loan and unamortized debt issuance costs, and bore interest at a weighted average interest rate of 4.92% and 4.03% per annum, respectively. The debt consists of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)a secured term loan in an original maximum total principal commitment amount of $105.9 million (the "CONA Mortgage Loan") with Capital One, National Association, individually and as administrative agent, and other lenders from time to time. On October 30, 2025, the Operating Partnership amended and restated the CONA Mortgage Loan. The amendment reduced the maximum total principal commitment amount to $96.5 million, extended the maturity date to October 29, 2027, and added three one-year extension options subject to the payment of certain fees and expenses and certain other conditions. The CONA Mortgage Loan had an outstanding balance of $95 million as of December 31, 2025.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)a secured term loan in an original principal amount of $122.7 million (the "BMO Mortgage Loan") with BMO Harris Bank N.A., individually and as administrative agent, and other lenders from time to time. The BMO Mortgage Loan had an outstanding balance of $122.7 million as of December 31, 2025. On January 26, 2026, the Operating Partnership amended the BMO Mortgage Loan. The amendment extended the maturity date from September 30, 2026 to September 30, 2028 and removed any further extension options,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)a secured term loan in the original principal amount of $22 million (the "Parkway UL Mortgage Loan") with Parkway Bank and Trust Company ("Parkway"). On March 28, 2024, the Operating Partnership entered into an amendment that increased the principal amount of the Parkway UL Mortgage Loan to $27.8 million. The Parkway UL Mortgage Loan had an outstanding balance of $27.8 million as of December 31, 2025. As extended pursuant to the amendment to the Parkway UL Mortgage Loan, the maturity date of the Parkway UL Mortgage Loan is March 28, 2026, and the Operating Partnership has the option to extend the maturity date for an additional three-year period subject to the payment of an extension fee, certain costs and expenses and certain other conditions, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)a secured term loan in an original principal amount of $28 million (the "Parkway Storage Mortgage Loan") with Parkway. The Parkway Storage Mortgage Loan had an outstanding balance of $28 million as of December 31, 2025, matures on April 25, 2026, and the Operating Partnership has the option to extend the maturity date for an additional three-year period subject to the payment of an extension fee, certain costs and expenses and certain other conditions.

The Operating Partnership is in discussions with Parkway to extend the Parkway UL Mortgage Loan and the Parkway Storage Mortgage Loan.

As of December 31, 2025 and 2024, the Operating Partnership had an outstanding balance of $8 million and $10 million, respectively, on the revolving credit facility loan agreement and revolving promissory note entered into by the Operating Partnership with IPC, as lender (the "Credit Facility"). The Credit Facility provides for loan advances in an aggregate amount not to exceed $22.5 million. The current maturity date of the Credit Facility is November 30, 2026. The daily balance of the loan under the Credit Facility bears interest at a rate of 4.25% per annum, however in connection with the occurrence and continuance of certain events of default (and at IPC's option for all other events of default), the interest rate will increase to 9.25% per annum. The Operating Partnership has the right to prepay all or any part of the loan at any time upon five days' notice to IPC. The Credit Facility acts in the manner of a revolving credit facility wherein prepayments from the Operating Partnership shall be available for funding future advances to the Operating Partnership.

As of December 31, 2025 and 2024, the Operating Partnership's cash and cash equivalents balance was $8.8 million and $7.8 million, respectively.

As of December 31, 2025 and 2024, the Operating Partnership had paid all interest amounts when due, and was in compliance with all financial covenants under the mortgage loans as amended.

**Cash Flow Analysis – Operating Partnership**

***Comparison of the years ended December 31, 2025 and December 31, 2024***

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| | | | |
|:---|:---|:---|:---|
| **$ in thousands** | **For the year ended December 31,** | **For the year ended December 31,** | **Change** |
|  | **2025** | **2024** | **2025 vs. 2024** |
| Net cash flows provided by operating activities | $8428 | $8489 | $(61) |
| Net cash flows used in investing activities | $(295) | $(23335) | $23040 |
| Net cash flows (used in) provided by financing activities | $(7141) | $16055 | $(23196) |

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*Operating activities*

The decrease in cash from operating activities during the year ended December 31, 2025 compared to the year ended December 31, 2024 was primarily due to an increase in interest expense.

*Investing activities*

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| | | | |
|:---|:---|:---|:---|
| **$ in thousands** | **For the year ended December 31,** | **For the year ended December 31,** | **Change** |
|  | **2025** | **2024** | **2025 vs. 2024** |
| Purchase of investment properties | $— | $(22642) | $22642 |
| Capital expenditures and tenant improvements | (295) | (718) | 423 |
| Other investing activities |  | 25 | (25) |
| Net cash used in investing activities | $(295) | $(23335) | $23040 |

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The decrease in cash used in investing activities during the year end December 31, 2025 compared to the year ended December 31, 2024 was primarily due to the acquisition of the Storage Properties that occurred during the second quarter of 2024 with no comparable activity during 2025.

*Financing activities*

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| | | | |
|:---|:---|:---|:---|
| **$ in thousands** | **For the year ended December 31,** | **For the year ended December 31,** | **Change** |
|  | **2025** | **2024** | **2025 vs. 2024** |
| Contributions | $7985 | $2412 | $5573 |
| Total net changes related to debt | (2678) | 25080 | (27758) |
| Payment of offering costs | (1039) | (644) | (395) |
| Redemptions of OP Units | (4306) | (4782) | 476 |
| Distributions paid | (7103) | (6196) | (907) |
| Early termination of interest rate swaps |  | 1189 | (1189) |
| Acquired interest rate swaps |  | (1004) | 1004 |
| Net cash (used in) provided by financing activities | $(7141) | $16055 | $(23196) |

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The decrease in cash provided by financing activities during the year ended December 31, 2025 compared to the year ended December 31, 2024 was primarily due to net inflows from debt in 2024 related to the acquisition of the Storage Properties with no comparable activity during 2025, partially offset by an increase in contributions.

***Comparison of the years ended December 31, 2024 and December 31, 2023***

See "[<u>Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations</u>](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001959961/000095017025041898/ck0001959961-20241231.htm#item_7_mda_and_results_of_ops)" of our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 19, 2025, which is incorporated herein by reference, for a comparison of the Operating Partnership's cash flows for the years ended December 31, 2024 and December 31, 2023.

**Distributions – Operating Partnership**

A summary of the distributions accrued to unitholders, distributions paid to unitholders and cash flows provided by operations for the years ended December 31, 2025, 2024 and 2023 is as follows:

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| | | | |
|:---|:---|:---|:---|
| **$ in thousands** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** | **2023** |
| Distributions accrued | $7360 | $6188 | $9097 |
| Distributions paid | $7103 | $6196 | $9590 |
| Cash flows from operations | $8428 | $8489 | $10351 |

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For the years ended December 31, 2025, 2024 and 2023, 100% of the Operating Partnership's distributions were funded by cash flows from operations generated during the period.

**Results of Operations – Operating Partnership**

The Operating Partnership generates primarily all of its net operating income from property operations. In order to evaluate the overall portfolio, the Operating Partnership's management analyzes the net operating income of properties that the Operating Partnership owns and operates. Net operating income is a supplemental non-GAAP performance measure that the Operating Partnership believes is useful to investors in measuring the operating performance of the Operating Partnership's property portfolio because the Operating Partnership's primary business is the ownership of real estate, and net operating income excludes various items included in GAAP net income that do not relate to, or are not indicative of, the Operating Partnership's property operating performance, such as depreciation and amortization and parent-level corporate expenses (including general and administrative expenses).

The Operating Partnership considers property net operating income an important supplemental non-GAAP financial measure because it reflects only those income and expense items that are incurred at the property level, and when compared across periods, reflects the impact on operations from trends in occupancy rates, rental rates and operating expenses. Although property net operating income is a widely used measure among REITs, there can be no assurance that property net operating income presented by the Operating Partnership is comparable to similarly titled metrics used by other REITs.

The Operating Partnership calculates property net operating income using net income and excluding general and administrative expenses, advisor management fee, depreciation and amortization, interest expense, and interest or other income.

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***Comparison of the years ended December 31, 2025 and December 31, 2024***

A total of 30 medical outpatient properties with 32 operating leases and one student housing property that were acquired before January 1, 2024 represent "same store" in the table below. "Non-same store," as reflected in the table below, consists of properties acquired after January 1, 2024. The Storage Properties were acquired on April 5, 2024 and are included as non-same store properties.

The following table presents the property net operating income broken out between same store and non-same store for the years ended December 31, 2025 and 2024, prior to general and administrative expenses, advisor management fee, depreciation and amortization, and interest, along with a reconciliation to net (loss) income, calculated in accordance with GAAP.

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **$ in thousands** | **Total** | **Total** | **Total** | **Same Store** | **Same Store** | **Same Store** | **Non-Same Store** | **Non-Same Store** | **Non-Same Store** |
|  | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** |
|  | **2025** | **2024** | **Change** | **2025** | **2024** | **Change** | **2025** | **2024** | **Change** |
| Rental revenue | $34165 | $33406 | $759 | $30798 | $30838 | $(40) | $3367 | $2568 | $799 |
| Other property revenue | 339 | 244 | 95 | 3 | 121 | (118) | 336 | 123 | 213 |
| Total revenues | 34504 | 33650 | 854 | 30801 | 30959 | (158) | 3703 | 2691 | 1012 |
| Property operating expenses | 5620 | 5112 | 508 | 4443 | 4215 | 228 | 1177 | 897 | 280 |
| Real estate tax expense | 1824 | 1485 | 339 | 1505 | 1259 | 246 | 319 | 226 | 93 |
| Total property operating expenses | 7444 | 6597 | 847 | 5948 | 5474 | 474 | 1496 | 1123 | 373 |
| Property net operating income | $27060 | $27053 | $7 | $24853 | $25485 | $(632) | $2207 | $1568 | $639 |
| General and administrative expenses | (4163) | (4419) | 256 |  |  |  |  |  |  |
| Advisor management fee | (787) | (759) | (28) |  |  |  |  |  |  |
| Depreciation and amortization | (17978) | (19219) | 1241 |  |  |  |  |  |  |
| Interest expense | (15335) | (14577) | (758) |  |  |  |  |  |  |
| Interest and other income | 4 | 210 | (206) |  |  |  |  |  |  |
| Net loss | $(11199) | $(11711) | $512 |  |  |  |  |  |  |

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**Property net operating income.** On a same store basis, comparing the results of operations of properties owned during the year ended December 31, 2025 with the results of the same properties owned during the year ended December 31, 2024, property net operating income decreased $632, total property revenues decreased $158, and total property operating expenses including real estate tax expense increased $474.

The decrease in same store total property revenues is primarily due to the move-out of one medical outpatient tenant and a decrease in rental income at our student housing property due to a decrease in occupancy.

The increase in same store total property operating expenses is primarily due to an increase in utilities and insurance expense and an increase in real estate tax expense.

Non-same store total property net operating income increased $639 during the year ended December 31, 2025 as compared to 2024. The increase is a result of acquiring the Storage Properties on April 5, 2024. On a non-same store basis, total property revenues increased $1,012 and total property operating expenses including real estate tax expense increased $373 during the year ended December 31, 2025 as compared to 2024 as a result of this acquisition.

**General and administrative expenses.** General and administrative expenses decreased $256 in 2025 compared to 2024. The decrease is primarily due to a decrease in professional fees.

**Advisor management fee.** Advisor management fees increased $28 in 2025 compared to 2024. The increase is primarily due to changes in NAV by share class.

**Depreciation and amortization.** Depreciation and amortization decreased $1,241 in 2025 compared to 2024. The decrease is primarily due to fully amortized assets in 2025.

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**Interest expense.** Interest expense increased $758 in 2025 compared to 2024. The increase is primarily due to an increase in debt outstanding as a result of acquiring the Storage Properties on April 5, 2024.

**Interest and other income.** Interest and other income decreased $206 in 2025 compared to 2024. The decrease is primarily due to the realized gain on termination of swaps that were acquired with the Storage Properties in 2024 with no comparable activity in 2025.

***Comparison of the years ended December 31, 2024 and December 31, 2023***

See "[<u>Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations</u>](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001959961/000095017025041898/ck0001959961-20241231.htm#item_7_mda_and_results_of_ops)" of our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 19, 2025, which is incorporated herein by reference, for a comparison of the Operating Partnership's results of operations for the years ended December 31, 2024 and December 31, 2023.

**Non-GAAP Financial Measures – Operating Partnership**

Accounting for real estate assets in accordance with GAAP assumes the value of real estate assets is reduced over time due primarily to non-cash depreciation and amortization expense. Because real estate values may rise and fall with market conditions, operating results from real estate companies that use GAAP accounting may not present a complete view of their performance. The Operating Partnership uses Funds from Operations, or "FFO", a non-GAAP metric to evaluate its performance. FFO provides a supplemental measure to compare the Operating Partnership's performance and operations to other REITs. Due to certain unique operating characteristics of real estate companies, the National Association of Real Estate Investment Trusts, or "NAREIT", has promulgated a standard known as FFO, which the Operating Partnership believes more accurately reflects the operating performance of a REIT. FFO, as defined by NAREIT and presented below, is net income (loss) computed in accordance with GAAP, excluding depreciation and amortization related to real estate, excluding gains (or losses) from sales of certain real estate assets, excluding impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate and excluding gains and losses from change in control.

The Operating Partnership also believes that adjusted FFO ("AFFO") is an additional meaningful non-GAAP supplemental measure of its operating results. AFFO further adjusts FFO to reflect the performance of the Operating Partnership's portfolio by adjusting for items the Operating Partnership believes are not directly attributable to its operations. The Operating Partnership's adjustments to FFO to arrive at AFFO include removing the impact of (i) amortization of above- and below-market lease intangibles, (ii) straight-line income and expense, (iii) amortization of deferred financing costs, (iv) amortization of mortgage premium/discount, and (v) amortization of derivatives costs.

The Operating Partnership's presentation of FFO and AFFO may not be comparable to other similarly titled measures presented by other REITs. The Operating Partnership believes that the use of FFO and AFFO provides a more complete understanding of its operating performance to unitholders, investors and to management, and when compared year over year, reflects the impact on its operations from trends in occupancy rates, rental rates, operating costs, general and administrative expenses, and interest costs. Neither FFO nor AFFO is intended to be an alternative to "net income" or to "cash flows from operating activities" as determined by GAAP as a measure of the Operating Partnership's capacity to pay distributions. Management uses FFO and AFFO to compare the Operating Partnership's operating performance to that of other REITs and to assess its operating performance.

FFO and AFFO for the years ended December 31, 2025, 2024 and 2023 are calculated as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **$ in thousands** | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** |
|  |  | **2025** | **2024** | **2023** |
|  | Net loss | $(11199) | $(11711) | $(7324) |
| Add: | Depreciation and amortization related to investment properties | 17978 | 19219 | 17516 |
|  | Funds from operations (FFO) | 6779 | 7508 | 10192 |
| Less: | Above- and below-market rent intangible lease amortization, net | (1364) | (1389) | (1389) |
|  | Straight-line income, net | (418) | (819) | (1145) |
|  | Realized gain on termination of interest rate swaps |  | (185) |  |
| Add: | Amortization of deferred financing costs | 1651 | 1588 | 1313 |
|  | Amortization of mortgage premium/discount | 40 | 121 | 352 |
|  | Amortization of derivatives costs | 727 | 1982 | 1174 |
|  | Adjusted funds from operations (AFFO) | $7415 | $8806 | $10497 |

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**Critical Accounting Estimates and Policies**

The Company's and the Operating Partnership's accounting policies have been established to conform with GAAP. The preparation of financial statements in conformity with GAAP requires management to use judgment in the application of accounting policies, including making estimates and assumptions. The Company's significant accounting policies are described in Note 2 – "Summary of Significant Accounting Policies" which is included in our December 31, 2025 Notes to Financial Statements in Part IV Item 15 in this Annual Report on Form 10-K. The Operating Partnership's significant accounting policies are described in Note 2 – "Summary of Significant Accounting Policies" which is included in the Operating Partnership's December 31, 2025 Notes to Consolidated Financial Statements included in Part IV Item 15 in this Annual Report on Form 10-K. The Company has identified *Impairment of Investments in Unconsolidated Entities* and the Operating Partnership has identified *Purchase Price Allocation of Acquired Real Estate* and *Impairment of Investment Properties* as critical accounting policies.

The Company and the Operating Partnership consider these policies to be critical because they require the Company's and the Operating Partnership's management to use judgment in the application of the accounting policy, including making estimates and assumptions. These judgments affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. If management's judgment or interpretation of the facts and circumstances relating to various transactions had been different, it is possible that different accounting policies would have been applied, thus resulting in a different presentation of the financial statements. Additionally, other companies may utilize different estimates that may impact comparability of the Company's and the Operating Partnership's results of operations to those of companies in similar businesses.

**The Company**

*Impairment of Investments in Unconsolidated Entities*

The Company's investments in unconsolidated entities are periodically assessed for impairment and an impairment loss is recorded when the fair value of the investment falls below the carrying value and such decline is determined to be other-than-temporary. The evaluation of an investment in an unconsolidated entity for potential impairment can require the Company to exercise significant judgment.

Refer to Exhibit 4.3 to this Annual Report on Form 10-K for further details on the assumptions and estimates used in determination of fair value of the Company's investment in the Operating Partnership.

**The Operating Partnership**

*Purchase Price Allocation of Acquired Real Estate*

The Operating Partnership generally accounts for the acquisition of real estate as an asset acquisition which requires that the Operating Partnership assess the fair value of acquired tangible and intangible assets and liabilities (including land, buildings, tenant improvements, above-market and below-market leases, acquired in-place leases, other identified intangible assets and assumed liabilities) and allocate the purchase price to the acquired assets and assumed liabilities. The cost of the acquisition is then allocated to the assets acquired and liabilities assumed based on their relative estimated fair values. The Operating Partnership assesses relative fair value based on estimated cash flow projections that utilize discount and/or capitalization rates that the Operating Partnership deems appropriate, as well as other available market information. The Operating Partnership estimates future cash flows based on a number of factors including historical operating results, known and anticipated trends, and market and economic conditions. Valuation is highly subjective and is based in part on assumptions, such as comparable sales values, discount rates, capitalization rates, revenue and expense growth rates and lease-up assumptions, at a particular point in time.

The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant. The Operating Partnership also considers an allocation of purchase price to acquired intangibles, including acquired in-place leases that may have a customer relationship intangible value, including but not limited to the nature and extent of the existing relationship with the tenants, the tenants' credit quality and expectations of lease renewals.

The Operating Partnership records acquired above-market and below-market leases at their fair values (using a discount rate that reflects the risks associated with the leases acquired) equal to the difference between (1) the contractual amounts to be paid under each in-place lease and (2) management's estimate of fair market lease rates for each corresponding in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the term of any below-market fixed rate renewal options for below-market leases. Other intangible assets acquired include amounts for in-place lease values that are based on the Operating Partnership's evaluation of the specific characteristics of each tenant's lease. Factors to be considered include estimates of carrying costs during hypothetical expected lease-up periods considering current market conditions, and costs to execute similar leases. When estimating carrying costs, the Operating Partnership includes real estate taxes, insurance and other operating expenses and estimates of

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lost rentals at market rates during the expected lease-up periods, depending on local market conditions. When estimating costs to execute similar leases, the Operating Partnership considers leasing commissions, legal and other related expenses.

*Impairment of Investment Properties*

The Operating Partnership assesses the carrying values of long-lived assets each quarter or whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable. The evaluation of anticipated future cash flows is highly subjective and is based in part on assumptions regarding the economic condition of the property at a particular point in time, future occupancy, rental rates and capital requirements that could differ materially from actual results. If it is determined that the carrying value is not recoverable because the undiscounted cash flows do not exceed the carrying value, the Operating Partnership will be required to record an impairment loss to the extent that the carrying value exceeds fair value.

**Recent Accounting Pronouncements**

For information related to the Company's recently issued accounting pronouncements, reference is made to Note 2 – "Summary of Significant Accounting Policies" which is included in our December 31, 2025 Notes to Financial Statements in Part IV Item 15 in this Annual Report on Form 10-K. For information related to the Operating Partnership's recently issued accounting pronouncements, reference is made to Note 2 – "Summary of Significant Accounting Policies" which is included in the Operating Partnership's December 31, 2025 Notes to Consolidated Financial Statements included in Part IV Item 15 in this Annual Report on Form 10-K.

**Off-Balance Sheet Arrangements**

As of December 31, 2025, the Company and the Operating Partnership had no off-balance sheet arrangements that are reasonably likely to have a material current or future effect on their financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources. The Company does not consolidate the Operating Partnership.

**Item 7A. Quantitative and Qualitative Disclosures About Market Risk**

**Market Risk**

The Company, through its investment in the Operating Partnership, is exposed to various market risks, including those caused by changes in interest rates and commodity prices. Market risk is the potential loss arising from adverse changes in market rates and prices, such as interest rates and commodity prices. The Operating Partnership does not enter into derivatives or other financial instruments for trading or speculative purposes. The Operating Partnership has entered into, and may continue to enter into, financial instruments to manage and reduce the impact of changes in interest rates. The counterparties are, and are expected to continue to be, major financial institutions.

**Interest Rate Risk**

The Company, through its investment in the Operating Partnership, is exposed to interest rate changes primarily as a result of long-term debt used to purchase properties or other real estate assets and to fund capital expenditures.

As of December 31, 2025 and 2024, the Operating Partnership had outstanding debt of $273.4 million and $273.4 million, respectively, excluding the discount on assumed mortgage loan and unamortized debt issuance costs, bearing rates ranging from 2.97% to 5.97% per annum and 2.97% to 5.80% per annum, respectively. The weighted average interest rate as of December 31, 2025 and 2024 was 4.92% per annum and 4.03% per annum, respectively, which includes the effect of interest rate swaps and interest rate caps. As of December 31, 2025 and 2024, the weighted average years to maturity for the mortgages was 1 year and 1.6 years, respectively.

The following table sets forth the summary of the Operating Partnership's debt, excluding unamortized debt issuance costs and discount on assumed mortgage loan (as applicable), as of December 31, 2025 and 2024:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Type of Debt** | **Principal<br>Amount** | **Percent of Total Principal Amount** | **Weighted Average<br> Interest Rate** | **Principal<br>Amount** | **Percent of Total Principal Amount** | **Weighted Average<br> Interest Rate** |
| **$ in thousands** |  |  |  |  |  |  |
| Fixed rate | $55759 | 20.4% | 5.80% | $55759 | 20.4% | 5.80% |
| Variable rate with swap agreements | 156500 | 57.2% | 4.19% | 88000 | 32.2% | 2.99% |
| Variable rate | 61155 | 22.4% | 5.97% |  |  |  |
| Variable rate with cap agreements |  |  |  | 129594 | 47.4% | 3.98% |
| Total | $273414 | 100.0% |  | $273353 | 100.0% |  |

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If interest rates on all debt which bears interest at variable rates as of December 31, 2025 increased by 1% (100 basis points), the increase in interest expense would decrease earnings and cash flows by $0.6 million annually. If interest rates on all debt which bears interest at variable rates as of December 31, 2025 decreased by 1% (100 basis points), the decrease in interest expense would increase earnings and cash flows by $0.6 million annually. For the variable rate debt with swap agreements, there would be no impact to the earnings and cash flows as the 1% increase or 1% decrease in interest expense on such debt would be fully offset by the corresponding increase or reduction in payments from the interest rate swaps.

If interest rates on all debt which bears interest at variable rates as of December 31, 2024 increased by 1% (100 basis points) or decreased by 1% (100 basis points), there would be no impact to the earnings and cash flows as the 1% increase or 1% decrease in interest expense on the debt would be fully offset by the corresponding increase or reduction in payments from the interest rate swaps and interest rate caps.

With regard to variable rate financing, the Advisor assesses the Operating Partnership's interest rate cash flow risk by continually identifying and monitoring changes in interest rate exposures that may adversely impact expected future cash flows and by evaluating hedging opportunities. The Advisor maintains risk management control systems to monitor interest rate cash flow risk attributable to both of the outstanding or forecasted debt obligations as well as the potential offsetting hedge positions of the Operating Partnership.

The Operating Partnership uses derivative financial instruments to hedge exposures to changes in interest rates on loans secured by the Operating Partnership's assets. Derivative instruments may include interest rate swap contracts, interest rate cap or floor contracts, futures or forward contracts, options or repurchase agreements. The Operating Partnership's actual hedging decisions are determined in light of the facts and circumstances existing at the time of the hedge. The Operating Partnership has used derivative financial instruments, specifically interest rate swap contracts and interest rate cap contracts, to hedge against interest rate fluctuations on variable rate debt, which exposes the Operating Partnership to both credit risk and market risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. If the fair value of a derivative contract is positive, the counterparty will owe the Operating Partnership, which creates credit risk for the Operating Partnership because the counterparty may not perform. Market risk is the adverse effect on the value of a financial instrument that results from a change in interest rates. The Operating Partnership seeks to manage the market risk associated with interest-rate contracts by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken. There is no assurance the Operating Partnership will be successful.

**Derivatives**

For information related to derivatives, reference is made to Note 5 – "Debt and Derivative Instruments" which is included in the Operating Partnership's December 31, 2025 Notes to Consolidated Financial Statements included in Part IV Item 15 in this Annual Report on Form 10-K.

**Item 8. Financial Statements and Supplementary Data**

Our financial statements and the accompanying notes to our financial statements are included under Item 15 of this Annual Report on Form 10-K.

**Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure**

None.

**Item 9A. Controls and Procedures**

**Evaluation of Disclosure Controls and Procedures**

Our management has evaluated, with the participation of our principal executive and principal financial officers, the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report. Based on that evaluation, the principal executive and principal financial officers have concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report.

**Management's Report on Internal Control Over Financial Reporting**

Our management is responsible for establishing and maintaining adequate control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on our evaluation under the framework in Internal Control - Integrated Framework (2013) issued by the COSO, our management concluded that our internal control over financial reporting was effective as of December 31, 2025.

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This Annual Report does not include an attestation report of the Company's independent registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by the Company's independent registered public accounting firm pursuant to permanent rules adopted by the SEC, permitting the Company to provide only management's report in this Annual Report.

**Changes in Internal Control over Financial Reporting**

There were no changes in our internal control over financial reporting (as such term is defined in Rules 13a–15(f) and 15d–15(f) under the Exchange Act) that occurred during the fourth quarter of 2025, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**Item 9B. Other Information**

*Trading Arrangements*

During the quarter ended December 31, 2025, none of the Company's directors or executive officers adopted or terminated any contract, instruction or written plan for the purchase or sale of the Company's securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any "non-Rule 10b5-1 trading arrangement."

**Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections**

Not applicable.

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**Part III**

**Item 10. Directors, Executive Officers and Corporate Governance**

Our directors and executive officers and their positions and ages are as follows:

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| | | |
|:---|:---|:---|
| **Name** | **Age\*** | **Position** |
| Ella S. Neyland | 71 | Director, Chair of the Board |
| Anthony Chereso\*\* | 63 | Director |
| Michael W. Reid | 72 | Independent Director |
| Daniel Rigby | 64 | Independent Director |
| Alan Feldman\*\* | 62 | Independent Director |
| Denise C. Kramer | 47 | Chief Executive Officer |
| Jerry Kyriazis | 57 | Chief Financial Officer |
| Joseph E. Binder | 43 | Chief Capital Officer |
| Kristin A. Orlando | 48 | Secretary |

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\* As of January 1, 2026

\*\* Appointed effective January 6, 2026

***Ella S. Neyland*** has served as one of our directors since August 2023. In October 2025, Ms. Neyland accepted the role of interim President and Chief Executive Officer of IREIC and its subsidiary, IPC, which roles she held until February 2026. As result of Ms. Neyland's acceptance of an officer position with IREIC, she no longer qualifies as an independent director of the Company. Ms. Neyland has been appointed as Chair of the Board of the Company, effective as of October 20, 2025. Ms. Neyland most recently served as Chief Operating Officer and a member of the board of directors of Independence Realty Trust, positions she held from December 2021 through December 2022. Until its merger with Independence Realty Trust, Ms. Neyland served in various roles at Steadfast Apartment REIT, Inc., including President from September 2013 to December 2021, Chief Financial Officer and Treasurer from June 2020 to December 2021 and as an affiliated director from August 2013 to December 2021. Ms. Neyland also served as President and affiliated director of Steadfast Income REIT, Inc., positions she held from October 2012 through March 2020. Prior to joining the Steadfast Apartment REIT, Ms. Neyland served in various roles as advisor and founder of several privately owned medical services related companies from 2004 to 2011. From 2001 to 2004, Ms. Neyland was the Executive Vice President, Treasurer and head of Investor Relations for UDR. Prior to 2001, Ms. Neyland worked for various banks including CIBC and Frost Bank and also worked for Lincoln Property Company initially in charge of their debt restructuring and then lead their multi-family finance group. For six years she served on the board of the IPA (the Institute for Portfolio Alternatives) and in 2019 was elected as the first female chair in its 33 year history. She has served on the board of directors of Westwood Financial since September 2022. She is a member of the ULI Silver Multi-family council and has served as the Co-Chair. She has also served on the Board of Directors of NMHC, the National Multi-family Housing Council. Ms. Neyland received her B.S. in Finance from Trinity University. We believe that Ms. Neyland's experience in the commercial real estate industry, including through her leadership positions at other REITs, make her well qualified to serve as a member of our board of directors.

***Anthony Chereso*** has served as one of our directors since January 2026. Mr. Chereso is also the chief executive officer and president of The Inland Real Estate Companies, LLC, which is part of Inland, a position in which he has served since January 2024. Mr. Chereso joined Inland in July 2022 as the chief financial officer and has over 30 years of experience in finance, tax, audit, commercial real estate, capital markets and the alternative investment industry. Mr. Chereso served as one of our directors from January 2024 to October 2025 and has served on the board of managers of our Advisor since August 2023. Mr. Chereso also serves on the boards of directors of numerous Inland entities, including Inland Real Estate Income Trust, Inc. ("IREIT") (since November 2025) and its business manager (since May 2025), IREIC (since February 2024), IPC (since February 2024), our Dealer Manager (since May 2025), and Inland Real Estate Acquisitions, LLC (since February 2023 and as Chairman since January 2025). Prior to joining Inland, Mr. Chereso worked as president and chief executive officer of the Institute for Portfolio Alternatives from 2015 to 2022. Previously, he was a director at United Development Funding from 2013 to 2015, the president and chief executive officer of FactRight, a third-party independent securities due diligence and research firm, from 2007 to 2013, and has held roles in capital markets at various real estate investment companies. Additionally, he worked in corporate finance, tax, and audit with Verizon Communications (formerly GTE) from 1985 to 2000. Mr. Chereso is a graduate of the DePaul University School of Business. We believe that Mr. Chereso's extensive experience in finance, tax, audit, commercial real estate, capital markets, the alternative investment industry and natural leadership ability make him well qualified to serve as a member of our board of directors.

***Michael W. Reid*** has served as one of our independent directors since August 2023. Mr. Reid is a Partner of Resolution Real Estate Partners, a position he has held since 2024. Prior to his current role, Mr. Reid was Co-Founder and Managing Partner of Resolution Real Estate Partners and its predecessor from 2009 to 2024, where he was responsible for strategic planning, finance and reporting, acquisitions and dispositions, debt financings, and structuring joint ventures. Since the formation of Resolution Real Estate, Mr. Reid has worked on the highly successful purchase and sale of 1372 Broadway with Starwood Capital and the purchase, redevelopment and

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sale of 142 West 36th Street and 234 West 39th Street with The Davis Companies. He also worked on notable asset management assignments including the Lipstick Building, the McGraw Hill Building, 292 Madison Avenue and 24-32 Union Square. He formerly served as Chief Operating Officer of SL Green from 2002 to 2004 where his responsibilities included strategic planning, corporate and real estate operations, finance and reporting, and capital raising in the public and private debt and equity markets and risk management. In this capacity, he worked on over $2 billion of acquisitions and dispositions. He took SL Green public in 1998. Prior to SL Green, Mr. Reid was a Managing Director of Lehman Brothers responsible for the REIT Equity practice and managed over $7 billion in primary and secondary equity offerings. Mr. Reid worked at Lehman Brothers for fourteen years in sales and trading and real estate investment banking. Prior to joining Lehman, Mr. Reid worked in the real estate banking and acquisition department of The First Boston Corporation. He currently serves on the Board and member of the audit committee of The Osborn, a senior living community located on 56 acres in Rye, New York. Mr. Reid also served as a director and as the Chairman of the Audit Committee for Inland Residential Properties Trust, Inc. from its inception in September 2014 until October 2019. He also previously served as Chairman of the Board of Sonida Senior Living, Inc., from May 2016 until November 2021 and as Head of the Audit Committee of Sonida in 2015 and 2016. Mr. Reid holds a B.A. and Master of Divinity Degree from Yale University. We believe that Mr. Reid's commercial real estate and finance experience make him well qualified to serve as a member of our board of directors.

***Daniel Rigby*** has served as one of our independent directors since January 2024. Mr. Rigby has served as the Owner and President of Fox Title Company since October 2010, where he is responsible for all operations of the organization. Since December 2020, Mr. Rigby has also served as a Partner of Knight Rigby, LLC, an employee benefit and government grant consulting company. Prior to his current roles, Mr. Rigby acted as President and Founder of Human Resource Management Systems ("HRMS") from 1989 through 2012 when HRMS was acquired by Arthur J. Gallagher & Co. Following the acquisition, Mr. Rigby served as a Area Senior Vice President of Arthur J. Gallagher & Co. through March 2020. In addition to his current roles, Mr. Rigby is past Chair and currently serves on the board of Benedictine University, a position he has held since 2001. We believe that Mr. Rigby's commercial real estate and mission-driven dedication make him well qualified to serve as a member of our board of directors.

***Alan Feldman*** has served as one of our independent directors since January 2026. Mr. Feldman currently serves as a senior fellow of the Zell-Lurie Real Estate Center at The Wharton School, University of Pennsylvania, where he has also taught since 2013. Mr. Feldman has served as an independent director of EQT Exeter Real Estate Income Trust, Inc. since June 2023 and an independent director of IREIT since January 2026. Mr. Feldman served as the chief executive officer and chairman of the board of directors of Resource REIT from October 2012 to May 2022, and as Resource REIT's president from September 2020 to May 2022. Resource REIT was a non-listed REIT which was acquired by Blackstone Real Estate Income Trust, Inc. in May 2022. At Resource REIT, Mr. Feldman was responsible for overseeing the strategy for the company and its real estate investment strategy. Prior to Resource REIT's mergers with Resource Real Estate Opportunity REIT, Inc. ("REIT I") and Resource Apartment REIT III, Inc. ("REIT III") in January 2021, he was also chief executive officer and chairman of the board of REIT I from June 2009 and REIT III from June 2017. He also served as the president of REIT I and REIT III from September 2020 until the mergers. Mr. Feldman served as a senior vice president of Resource America from August 2002 to September 2020 and as chief executive officer of its wholly owned subsidiary, Resource Real Estate (Resource REIT's founding sponsor) from May 2004 to September 2020. From 1998 to 2002, Mr. Feldman was a vice president at Lazard Freres & Co., an investment banking firm specializing in real estate matters. From 1992 through 1998, Mr. Feldman was an executive vice president of the Pennsylvania Real Estate Investment Trust and its predecessor, The Rubin Organization. From 1990 to 1992, Mr. Feldman was a director at Strouse, Greenberg & Co., a regional full-service real estate company. From 1986 through 1988, Mr. Feldman was an engineer at Bristol-Myers Squibb Corporation. Mr. Feldman received Bachelor of Science and Master of Science degrees in chemical engineering from Tufts University, and a Master of Business Administration degree from The Wharton School, University of Pennsylvania. We believe that Mr. Feldman's experience as a director of numerous other non-traded REITs makes him well qualified to serve as a member of our board of directors.

***Denise C. Kramer*** has served as our Chief Executive Officer and as Chief Executive Officer of the Advisor, roles she has held since October 2025. Prior to her appointment as Chief Executive Officer, Ms. Kramer served as our Chief Operating Officer, Lead Portfolio Manager from June 2023 to October 2025. Ms. Kramer also serves as the Chief Executive Officer and a director of InPoint Commercial Real Estate Income, Inc. ("InPoint"), positions she has held since December 2024, and as the President of InPoint's advisor, Inland InPoint Advisor, LLC, a position she has held since January 2022. Ms. Kramer also serves as Senior Vice President, Investment Product Management of IREIC, a position she has held since December 2022. Ms. Kramer began her career with Inland in 2016, serving as Senior Vice President, Investment Product Research for Inland Securities Corporation, Inland's managing broker dealer. Prior to joining Inland, Ms. Kramer served as Director of Investment Research at Advisor Group from January 2010 to August 2016 where she was responsible for the oversight of due diligence on all packaged products made available on Advisor Group's platforms including real estate private placements, REITs and interval funds. Ms. Kramer has a B.A. in accounting from the University of Maine and a Master's degree in finance from Northeastern University, she holds Series 7 and 66 licenses with FINRA, and is a CFA Charterholder.

***Jerry Kyriazis*** has served as our Chief Financial Officer since June 2023, and as the Chief Financial Officer of our Advisor since October 2022. Mr. Kyriazis also has served as the Chief Financial Officer and Treasurer of IREIT since May 2025, as the Chief Financial Officer and Treasurer of the MH Ventures Fund III, LLC and its business manager since their inception in September 2022, and as the Chief Financial Officer and Treasurer of MH Ventures Fund II, Inc. and its business manager since their inception in September 2020. Mr.

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Kyriazis joined Inland in 2018 as a Senior Vice President, Director of Portfolio Finance for IREIC serving several Inland entities, including, InPoint and MH Ventures 2019-1, LLC. Prior to joining Inland, Mr. Kyriazis served as Director of Financial Reporting and Accounting Policy for Citadel LLC (a global hedge fund manager) from 2007 to 2018. He served as Vice President, Finance and Chief Accounting Officer for Trizec Properties, Inc. (a public office real estate investment trust) from 2002 to 2007. He also served as Vice President, Controller for LaSalle Hotel Properties (a public hotel real estate investment trust) from 1998 to 2000. Mr. Kyriazis worked for PricewaterhouseCoopers LLP from 1990 to 1998. Mr. Kyriazis received his MBA from the J.L. Kellogg Graduate School of Management at Northwestern University. Mr. Kyriazis received his B.A. in accounting from Northern Illinois University. Mr. Kyriazis is a certified public accountant and a member of the American Institute of Certified Public Accountants and the Illinois CPA Society.

***Joseph E. Binder*** has served as our Chief Capital Officer since June 2023. Mr. Binder also serves as the Chief Investment Officer of The Inland Real Estate Group, LLC, a position he assumed in December of 2024. As Chief Investment Officer of The Inland Real Estate Group, LLC, Mr. Binder is responsible for managing and executing Inland's investment strategies and capital markets activities and related strategic transactions.

Mr. Binder joined Inland in 2008 and has served as a senior member of IPC's management team leading the underwriting, due diligence, and structuring of its acquisitions, along with all debt capital market transactions and corporate lines of credit. In his time with IPC, Mr. Binder has overseen transactions in excess of $14 billion in investment real estate across nearly all asset types and a variety of investment structures and joint ventures. Mr. Binder serves as IPC's Executive Vice President of Acquisition Structure and Finance, a position he has held since January 2019, and manages a 10-person team that supports the entire Inland enterprise.

Mr. Binder received a B.A. in finance from the University of Wisconsin at Whitewater and began his career in 2004 working in commercial real estate brokerage, followed by work in the commercial mortgage-backed securities industry. Mr. Binder holds an Illinois Real Estate Broker's license.

***Kristin A. Orlando*** serves as our Secretary and as Secretary of our Advisor, positions she has held since June 2023 and October 2022, respectively. Ms. Orlando joined the law department of The Inland Real Estate Group, LLC in October 2012, and is currently Associate General Counsel and Senior Vice President, positions she has held since October 2025 and June 2024, respectively. In her capacity as Associate General Counsel, Ms. Orlando represents funds sponsored by Inland Real Estate Investment Corporation and its affiliates on corporate, securities and regulatory matters. She also represents other entities within The Inland Real Estate Group of Companies that are in the business of real estate securities. Ms. Orlando serves as the corporate secretary of IPC (since May 2017), as the corporate secretary of the advisor to InPoint (since January 2025) and of the business manager to IREIT (since January 2025), and as the corporate secretary of Inland Venture Partners, LLC and certain of its subsidiaries (since December 2024). Prior to joining Inland, Ms. Orlando had been employed by the law firm Shefsky & Froelich (now Taft Stettinius & Hollister LLP) in Chicago, Illinois, in the Corporate and Securities practice group, since 2004. She is admitted to practice law in the State of Illinois. Ms. Orlando received her B.A. from Northwestern University and her J.D. from Chicago-Kent College of Law.

**Committees of our Board of Directors**

***Audit Committee and Audit Committee Financial Expert*** Our board of directors has established an audit committee, which consists of Messrs. Reid, Rigby and Feldman, each of whom is an independent director. Mr. Reid serves as the chairperson of the audit committee and qualifies as an "audit committee financial expert" as that term is defined by the SEC. The SEC has determined that the audit committee financial expert designation does not impose on a person with that designation any duties, obligations or liability that are greater than the duties, obligations or liability imposed on such person as a member of the audit committee of the board of directors in the absence of such designation. The audit committee assists the board of directors in overseeing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our accounting and financial reporting processes,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the integrity and audits of our financial statements,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our compliance with legal and regulatory requirements,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the qualifications and independence of our independent auditors and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the performance of our internal and independent auditors.

In addition, the audit committee selects the independent auditors to audit our annual financial statements and reviews with the independent auditors the plans and results of the audit engagement. The audit committee also approves the audit and non-audit services provided by the independent public accountants and the fees we pay for these services.

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The audit committee has adopted procedures for the processing of complaints relating to accounting, internal control and auditing matters. The audit committee oversees the review and handling of any complaints submitted pursuant to the forgoing procedures and of any whistleblower complaints subject to Section 21F of the Exchange Act.

***Affiliate Transaction Committee.*** The affiliate transaction committee is currently comprised of Messrs. Reid, Rigby and Feldman, each of whom is an independent director. Mr. Feldman serves as the chairperson of the affiliate transaction committee. The primary purpose of the affiliate transaction committee is to review transactions between us and Inland or its affiliates (including our Advisor) or with related persons and to determine if the resolution of the conflict of interest is fair and reasonable to us and our stockholders. However, we cannot assure you that this committee will successfully mitigate the risks related to conflicts of interest between us and Inland.

The affiliate transaction committee is responsible for ensuring the fair application of any reasonable method for the allocation of the acquisition of properties by two or more programs of Inland seeking to acquire similar types of assets. The affiliate transaction committee is also responsible for reviewing and approving the terms of all transactions between us and Inland or its affiliates (including our Advisor) or any member of our board of directors, including (when applicable) the economic, structural and other terms of all acquisitions and dispositions. In addition, the affiliate transaction committee is responsible for reviewing our Advisor's performance and the fees and expenses paid by us to our Advisor and any of its affiliates.

***Nominating and Corporate Governance Committee.*** The nominating and corporate governance committee is currently comprised of Messrs. Reid, Rigby and Feldman, each of whom is an independent director. Mr. Rigby serves as the chairperson of the nominating and corporate governance committee. The nominating and corporate governance committee is responsible for, among other things: (1) identifying individuals qualified to serve on the board and the nominating and corporate governance committee and recommending to the board a slate of director nominees for election by the stockholders at the annual meeting; (2) periodically reevaluating any corporate governance policies and principles adopted by the board, including recommending any amendments thereto if appropriate; and (3) overseeing an annual evaluation of the board. The nominating and corporate governance committee is also responsible for considering director nominees submitted by stockholders.

The committee considers all qualified candidates identified by members of the committee, by other members of the board of directors, by the Advisor and by stockholders. In recommending candidates for director positions, the committee takes into account many factors and evaluates each director candidate in light of, among other things, the candidate's knowledge, experience, judgment and skills such as an understanding of the real estate industry or financial industry or accounting or financial management expertise. Other considerations include the candidate's independence from conflict with the Company, the Advisor and the sponsor and the ability of the candidate to devote an appropriate amount of effort to board duties. The committee also focuses on persons who are actively engaged in their occupations or professions or are otherwise regularly involved in the business, professional or academic community. The committee considers diversity in its broadest sense, including persons diverse in geography, gender and ethnicity as well as representing diverse experiences, skills and backgrounds. The committee evaluates each individual candidate by considering all of these factors as a whole, favoring active deliberation rather than the use of rigid formulas to assign relative weights to these factors.

As mentioned above, as a result of Ms. Neyland's acceptance of an officer position with IREIC, she no longer qualifies as an independent director of the Company. Accordingly, effective as of October 20, 2025, Ms. Neyland stepped down from the audit committee, affiliate transaction committee and nominating and corporate governance committee.

**Corporate Governance**

***Code of Business Conduct and Ethics.*** We have adopted a Code of Business Conduct and Ethics that applies to all of our directors, officers and employees (if any). Our Code of Business Conduct and Ethics, as it relates to those also covered by Inland's code of conduct, operates in conjunction with, and in addition to, Inland's code of conduct. Our Code of Business Conduct and Ethics is designed to comply with SEC regulations relating to codes of conduct and ethics. Our Code of Business Conduct and Ethics is available on our website, www.ipcaltreit.com.

***Corporate Governance Guidelines.*** We have also adopted corporate governance guidelines to advance the functioning of our board of directors and its committees and to set forth our board of directors' expectations as to how it and they should perform its and their respective functions.

**Insider Trading Policy**

We have adopted an insider trading policy governing the purchase, sale and/or other dispositions of our shares by our directors, officers, employees (if any), agents or representatives that are reasonably designed to promote compliance with insider trading laws, rules and regulations and any applicable listing standards. Our insider trading policy is filed herewith as Exhibit 19.1.

We currently do not grant stock options and as such we have not adopted a policy regarding the timing of awards of options.

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**Item 11. Executive Compensation**

**Compensation of Executive Officers**

We are externally managed and currently have no employees. Our executive officers serve as officers of our Advisor and are employees of our Advisor or one or more of its affiliates. Additionally, certain of our executive officers have ownership interests in our Advisor and in the Special Limited Partner. Our Advisory Agreement provides that our Advisor is responsible for managing our investment activities, as such our executive officers do not receive any cash compensation from us or any of our subsidiaries for serving as our executive officers but, instead, receive compensation from our Advisor. In addition, we do not reimburse our Advisor for compensation it pays to our executive officers. The Advisory Agreement does not require our executive officers to dedicate a specific amount of time to fulfilling our Advisor's obligations to us under the Advisory Agreement. Accordingly, our Advisor has informed us that it cannot identify the portion of the compensation it awards to our executive officers that relates solely to such executives' services to us, as our Advisor does not compensate its employees specifically for such services. Furthermore, we do not have employment agreements with our executive officers, we do not provide pension or retirement benefits, perquisites or other personal benefits to our executive officers, our executive officers have not received any nonqualified deferred compensation and we do not have arrangements to make payments to our executive officers upon their termination or in the event of a change in control of us.

**Independent Director Compensation**

The following table summarizes compensation earned by the independent directors for the year ended December 31, 2025 (Dollar amounts in thousands):

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Name | **Fees Earned<br>or Paid in<br>Cash** | **Stock<br>Awards**<sup>(1)</sup> | **Options<br>Awards** | **Non-Equity<br>Incentive Plan<br>Compensation** | **Change in Pension Value and Nonqualified Deferred Compensation Earnings** | **All Other<br>Compensation**<sup>(2)</sup> | **Total<br>Compensation** |
| Ella S. Neyland <sup>(3)</sup> | $65 | $27 | $— | $— | $— | $3 | $95 |
| Michael W. Reid | $86 | $29 | $— | $— | $— | $4 | $119 |
| Daniel Rigby | $81 | $27 | $— | $— | $— | $3 | $111 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Represents 1,159 restricted shares of Class I common stock granted to Ella S. Neyland, 1,229 restricted shares of Class I common stock granted to Michael W. Reid and 1,159 restricted shares of Class I common stock granted to Daniel Rigby on August 1, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)Represents the value of distributions received during the year ended December 31, 2025 on all stock awards received through December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)The board of directors designated Ella S. Neyland as a participant with respect to the unvested award granted to her on August 1, 2025, and confirmed that her existing unvested awards were not terminated by her no longer qualifying as an independent director of the Company.

We pay our independent directors an annual retainer of $100,000, consisting of $75,000 in cash, payable on a quarterly basis, and a $25,000 grant of restricted stock, plus an additional retainer of $15,000 to the chairperson of the audit committee, $8,500 to the chairperson of the affiliate transaction committee and $8,500 to the chairperson of the nominating and corporate governance committee. Each director may elect to receive all or a portion of the amounts otherwise payable in cash in the form of restricted stock, pursuant to our director compensation plan (as amended and restated in November 2025, the "DCP"). The annual grant of restricted stock will be based on the then-current per share transaction price of our Class I shares at the time of grant. We do not intend to pay our directors additional fees for attending board meetings, but we intend to reimburse each of our directors for reasonable out-of-pocket expenses incurred in attending board and committee meetings (including, but not limited to, airfare, hotel and food). Other than certain non-independent directors who are designated as participants by the board of directors, our directors who are affiliated with our Advisor or Inland will not receive additional compensation for serving on the board of directors or committees thereof.

The DCP provides us with the ability to grant awards of restricted stock to our independent directors and certain non-independent directors who are designated as participants by the board of directors. Restricted stock issued will generally vest one year from the date of grant and become fully vested earlier upon a liquidity event or upon the termination of a director by reason of his or her death or disability. The total number of common shares granted under the DCP may not exceed 500,000 at any time (as such number may be adjusted to reflect any increase or decrease in the number of outstanding shares resulting from a reorganization, merger, consolidation, recapitalization, liquidation, reclassification, stock dividend, stock split, combination of shares, rights offering, extraordinary dividend, or divestiture (including a spin-off) or any other change in the corporate structure or shares of the Company.

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Refer to "Equity Compensation Plan" in Part I Item 5 in this Annual Report on Form 10-K for a summary of stock grants we made at each grant date as of December 31, 2025.

**Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters**

***Stock Owned by Certain Beneficial Owners and Management***

The following table sets forth, as of March 17, 2026, information regarding the number and percentage of shares of our common stock owned by each director, each executive officer, all directors and executive officers as a group, and any person known to us to be the beneficial owner of more than 5% of outstanding shares of our common stock. As of March 17, 2026, we had 242 stockholders. Beneficial ownership is determined in accordance with the rules of the SEC and includes securities that a person has the right to acquire within 60 days. The address for each of the persons named below is in care of our principal executive offices at 2901 Butterfield Road, Oak Brook, Illinois 60523.

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| | | |
|:---|:---|:---|
| **Name of Beneficial Owner** | **Number of Shares Beneficially Owned\*\*** | **Percent of Applicable Class** |
| **Directors and Officers** |  |  |
| &nbsp;&nbsp;Ella S. Neyland | 3336 | \* |
| &nbsp;&nbsp;Anthony Chereso\*\*\* | 44 | \* |
| &nbsp;&nbsp;Michael W. Reid | 3790 | 1.0% |
| &nbsp;&nbsp;Daniel Rigby | 3572 | \* |
| &nbsp;&nbsp;Alan Feldman\*\*\*\* | 1182 | \* |
| &nbsp;&nbsp;Denise C. Kramer | 888 | \* |
| &nbsp;&nbsp;Jerry Kyriazis | 2165 | \* |
| &nbsp;&nbsp;Joseph E. Binder | 2442 | \* |
| &nbsp;&nbsp;Kristin A. Orlando | 110 | \* |
| All officers and directors as a group (9 persons) | 17529 | 4.7% |
| **5% Stockholders** |  |  |
| &nbsp;&nbsp;Inland Private Capital Corporation | 99634 | 26.5% |

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\* Less than 1%.

\*\* All shares listed in the table are Class I shares.

\*\*\* Resigned effective October 20, 2025. Reappointed effective January 6, 2026.

\*\*\*\* Appointed effective January 6, 2026.

***Securities Authorized for Issuance under the DCP***

The following table sets forth information regarding securities authorized for issuance under the DCP as of December 31, 2025:

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| | | | |
|:---|:---|:---|:---|
| Plan Category | **Number of Securities to<br>be Issued Upon Exercise<br>of Outstanding<br>Options, Warrants<br>and Rights** | **Weighted Average<br>Exercise Price of<br>Outstanding<br>Options, Warrants<br>and Rights** | **Number of Securities Remaining Available<br>for Future Issuance Under Equity<br>Compensation Plans (Excluding Securities<br>Reflected in Column (a))** |
|  | (a) | (b) | (c) |
| Equity Compensation Plans approved<br> by security holders |  |  |  |
| Equity Compensation Plans not<br> approved by security holders |  |  | 489795 |
| Total |  |  | 489795 |

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**Item 13. Certain Relationships and Related Transactions, and Director Independence**

We are subject to various conflicts of interest arising out of our relationship with our Advisor and its affiliates, some of whom serve as our executive officers and our directors. We believe our directors, officers and Advisor's personnel will devote a sufficient amount of time to our business to fulfill their responsibilities to us. We discuss these conflicts below and conclude this section with a discussion of the corporate governance measures we have adopted to ameliorate some of the risks posed by these conflicts.

For more information on the related party transactions, including the fees, expenses and distributions paid or accrued with respect to related parties, see "Note 6 – Transactions with Related Parties" in our notes to financial statements included in Part IV Item 15 in this Annual Report on Form 10-K and "Note 10 – Transactions with Related Parties" in the Operating Partnership's notes to consolidated financial statements included in Part IV Item 15 in this Annual Report on Form 10-K.

**Our Advisor and Inland**

We are externally managed by our Advisor. Our Advisor is an affiliate of IREIC, our sponsor.

Together with its affiliates, Inland is a fully integrated group of legally and financially separate companies that is involved in every aspect of real estate, including property management, leasing, marketing, acquisition, disposition, development, redevelopment, renovation, construction, finance, investment products and other related services. Since its founding in 1968, through December 31, 2025, Inland has sponsored 851 programs and raised more than $31 billion in capital from more than 490,000 investors. IREIC, our sponsor, is a member company of Inland.

Pursuant to the Advisory Agreement, our Advisor has contractual and fiduciary responsibilities to us and our stockholders and is responsible for sourcing, evaluating and monitoring our investment opportunities and making decisions related to the acquisition, management, financing and disposition of our assets in accordance with our investment objectives, guidelines, policies and limitations, subject to oversight by our board of directors. Our Advisor will also oversee our other service providers. We or our Advisor may retain other service providers in connection with our operations, including, without limitation, administration, legal and accounting support. All of our officers and directors, other than the independent directors, are employees of the Advisor or its affiliates. We have and will continue to have certain relationships with the Advisor and its affiliates, including the Dealer Manager. Additionally, certain of our executive officers have ownership interests in our Advisor and in the Special Limited Partner.

**The Advisory Agreement**

Our board of directors will at all times have oversight and policy-making authority, including responsibility for governance, financial controls, compliance and disclosure with respect to our company and our Operating Partnership. Pursuant to the Advisory Agreement, our board of directors has delegated to our Advisor the authority to source, evaluate and monitor our investment opportunities and make decisions related to the acquisition, management, financing and disposition of our assets, in accordance with our investment objectives, guidelines, policies and limitations, subject to oversight by our board of directors. We believe that our Advisor currently has sufficient staff and resources so as to be capable of fulfilling the duties set forth in the Advisory Agreement.

***Services***

Pursuant to the terms of the Advisory Agreement, our Advisor is responsible for, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•serving as an advisor to us and the Operating Partnership with respect to the establishment and periodic review of our investment guidelines and our and the Operating Partnership's investments, financing activities and operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•sourcing, evaluating and monitoring our and the Operating Partnership's investment opportunities and executing the acquisition, management, financing and disposition of our and the Operating Partnership's assets, in accordance with our investment guidelines, policies and objectives and limitations, subject to oversight by our board of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•with respect to prospective acquisitions, purchases, sales, exchanges or other dispositions of investments, conducting negotiations on our and the Operating Partnership's behalf with sellers, purchasers, and other counterparties and, if applicable, their respective agents, advisors and representatives, and determining the structure and terms of such transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•providing us with portfolio management and other related services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•serving as our advisor with respect to decisions regarding any of our financings, hedging activities or borrowings; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•engaging and supervising, on our and the Operating Partnership's behalf and at our and the Operating Partnership's expense, various service providers.

The above summary is provided to illustrate the material functions that our Advisor will perform for us, and it is not intended to include all of the services that may be provided to us by our Advisor or third parties.

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***Term and Termination Rights***

Our Advisory Agreement, as amended and restated, is dated effective as of August 28, 2025, and has an initial term ending August 30, 2026, subject to successive one-year renewals upon the mutual consent of the parties. Our independent directors evaluate the performance of our Advisor each year before renewing the Advisory Agreement. The Advisory Agreement may be terminated:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•immediately by us for "cause," upon the bankruptcy of our Advisor or upon a material breach of the Advisory Agreement by our Advisor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•upon 60 days' written notice by us without cause or penalty upon the vote of a majority of our independent directors; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•upon 60 days' written notice by our Advisor.

"Cause" is defined in the Advisory Agreement to mean fraud, criminal conduct, willful misconduct or willful or negligent breach of fiduciary duty by our Advisor under the Advisory Agreement.

In the event the Advisory Agreement is terminated, our Advisor will be entitled to receive its prorated management fee through the date of termination. In addition, upon the termination or expiration of the Advisory Agreement, our Advisor will cooperate with us and take all reasonable steps requested to assist our board of directors in making an orderly transition of the advisory function.

***Management Fee, Performance Participation and Expense Reimbursements***

*Management Fee.* Subject to the limitations described below under "Reimbursement by our Advisor," as compensation for its services provided pursuant to the Advisory Agreement, we pay our Advisor a management fee of (i) 1.25% of the aggregate NAV of the Operating Partnership attributable to outstanding Class T OP Units, Class S OP Units, Class D OP Units and Class I OP Units of the Operating Partnership, (ii) 1.00% of the aggregate NAV of the Operating Partnership attributable to outstanding Class X-1 OP Units, (iii) 0.75% of the aggregate NAV of the Operating Partnership attributable to outstanding Class X-2 OP Units and (iv) 0.50% of the aggregate NAV of the Operating Partnership attributable to outstanding Class A OP Units, in each case per annum payable monthly in arrears. In calculating the management fee, we will use the NAV of the outstanding OP Units before giving effect to monthly accruals for the management fee, the performance participation allocations, distribution fees or distributions payable on our shares or OP Units. The different management fees applicable to our Operating Partnership's Class X-1, Class X-2 and Class A OP Units are class-specific accruals that will be allocated to the Class X-1, Class X-2 and Class A unitholders specifically. This means Class X-1, Class X-2 and Class A OP Units may receive greater distributions or have a higher NAV per unit or share compared to our other classes of units or shares.

The management fee may be paid, at our Advisor's election, in cash, Class I shares or Class I OP Units of our Operating Partnership. An election by our Advisor to receive Class I shares of our common stock or Class I OP Units of our Operating Partnership may benefit us for cash management purposes and would further align our Advisor's interests with our stockholders. Any repurchase requests by our Advisor will be consistent with our Advisor's fiduciary duties to us and our stockholders. Notwithstanding the foregoing, we have adopted a policy that requires the affiliate transaction committee to approve any repurchase request of the Advisor for Class I shares received as payment for the management fee that, when combined with any stockholder repurchase requests submitted through the SRP, would cause us to exceed the 2% monthly or 5% quarterly repurchase limitations of the SRP. Such approval must find that the repurchase will not impair our capital or operations and is consistent with the fiduciary duties of our independent directors.

*Performance Participation.* So long as the Advisory Agreement has not been terminated (including by means of non-renewal), the Special Limited Partner will hold a performance participation interest in the Operating Partnership that entitles it to receive an allocation from our Operating Partnership equal to (a) with respect to Class T, Class S, Class D and Class I OP Units, 12.5% of the Total Return, subject to a 5% Hurdle Amount and a High-Water Mark, with a Catch-Up (each term as defined below) (the "Performance Allocation"), (b) with respect to Class X-1 OP Units, 10.0% of the Class X-1 Total Return, subject to a 5% Hurdle Amount and a High-Water Mark, with a Class X-1 Catch-Up (each term as defined below) (the "Class X-1 Performance Allocation") and (c) with respect to Class A OP Units, 12.5% of the Class A Total Return, subject to a 5% Class A Hurdle Amount and a Class A High-Water Mark, with a Class A Catch-Up (each term as defined below) (the "Class A Performance Allocation"). Such allocations will be made annually and accrue monthly. The performance participation allocations are a class-specific accrual. No performance allocation is made with respect to Class X-2 OP Units.

Specifically, with respect to Class T, Class S, Class D and Class I OP Units, the Special Limited Partner will be allocated a Performance Allocation in an amount equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•First, if the Total Return for the applicable period exceeds the sum of (i) the Hurdle Amount for that period and (ii) the Loss Carryforward Amount (any such excess, "Excess Profits"), 100% of such annual Excess Profits until the total amount allocated to the Special Limited Partner equals 12.5% of the sum of (x) the Hurdle Amount for that period and (y) any amount allocated to the Special Limited Partner pursuant to this clause (this is commonly referred to as a "Catch-Up"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Second, to the extent there are remaining Excess Profits, 12.5% of such remaining Excess Profits.

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"Total Return" for any period since the end of the prior calendar year shall equal the sum of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)all distributions accrued or paid (without duplication) on the OP Units (excluding Class X-1, Class X-2 and Class A OP Units) outstanding at the end of such period since the beginning of the then-current calendar year plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)the change in aggregate NAV of such units (excluding Class X-1, Class X-2 and Class A OP Units) since the beginning of the year, before giving effect to (x) changes resulting solely from the proceeds of issuances of Operating Partnership (excluding Class X-1, Class X-2 and Class A OP Units), (y) any allocation/accrual to the Performance Allocation and (z) applicable distribution fee expenses (including any payments made to us for payment of such expenses).

For the avoidance of doubt, the calculation of Total Return will (i) include any appreciation or depreciation in the NAV of OP Units (excluding Class X-1, Class X-2 and Class A OP Units) issued during the then-current calendar year but (ii) exclude the proceeds from the initial issuance of such OP Units and any upfront selling commissions and dealer manager fees.

"Hurdle Amount" for any period during a calendar year means that amount that results in a 5% annualized internal rate of return on the NAV of the OP Units (excluding Class X-1, Class X-2 and Class A OP Units) outstanding at the beginning of the then-current calendar year and all OP Units (excluding Class X-1, Class X-2 and Class A OP Units) issued since the beginning of the then-current calendar year, taking into account the timing and amount of all distributions accrued or paid (without duplication) on all such units and all issuances of OP Units (excluding Class X-1, Class X-2 and Class A OP Units) over the period and calculated in accordance with recognized industry practices. The ending NAV of the OP Units (excluding Class X-1, Class X-2 and Class A OP Units) used in calculating the internal rate of return will be calculated before giving effect to any allocation/accrual to the Performance Allocation and applicable distribution fee expenses. For the avoidance of doubt, the calculation of the Hurdle Amount for any period will exclude any Class T, Class S, Class D and Class I OP Units repurchased during such period, which units will be subject to the Performance Allocation upon repurchase as described below.

Except as described in Loss Carryforward below, any amount by which Total Return falls below the Hurdle Amount will not be carried forward to subsequent periods.

"Loss Carryforward Amount" shall initially equal zero and shall cumulatively increase by the absolute value of any negative annual Total Return and decrease by any positive annual Total Return, provided that the Loss Carryforward Amount shall at no time be less than zero and provided further that the calculation of the Loss Carryforward Amount will exclude the Total Return related to any Class T, Class S, Class D or Class I OP Units repurchased during such year, which units will be subject to the Performance Allocation upon repurchase as described below. The effect of the Loss Carryforward Amount is that the recoupment of past annual Total Return losses will offset the positive annual Total Return for purposes of the calculation of the Special Limited Partner's Performance Allocation. This is referred to as a "High-Water Mark."

With respect to Class X-1 OP Units only, the Special Limited Partner will be allocated a Class X-1 Performance Allocation in an amount equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•First, if the Class X-1 Total Return for the applicable period exceeds the sum of (i) the Class X-1 Hurdle Amount for that period and (ii) the Class X-1 Loss Carryforward Amount (any such excess, "Class X-1 Excess Profits"), 100% of such annual Excess Profits until the total amount allocated to the Special Limited Partner equals 10.0% of the sum of (x) the Class X-1 Hurdle Amount for that period and (y) any amount allocated to the Special Limited Partner pursuant to this clause (this is referred to as a "Class X-1 Catch-Up"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Second, to the extent there are remaining Class X-1 Excess Profits, 10.0% of such remaining Class X-1 Excess Profits.

"Class X-1 Total Return" for any period since the end of the prior calendar year shall equal the sum of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)all distributions accrued or paid (without duplication) on the Class X-1 OP Units outstanding at the end of such period since the beginning of the then-current calendar year plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)the change in aggregate NAV of such Class X-1 OP Units since the beginning of the year, before giving effect to (x) changes resulting solely from the proceeds of issuances of Class X-1 OP Units and (y) any allocation/accrual to the Class X-1 Performance Allocation.

For the avoidance of doubt, the calculation of Class X-1 Total Return will (i) include any appreciation or depreciation in the NAV of Class X-1 OP Units issued during the then-current calendar year but (ii) exclude the proceeds from the initial issuance of such Class X-1 OP Units.

"Class X-1 Hurdle Amount" for any period during a calendar year means that amount that results in a 5% annualized internal rate of return on the NAV of the Class X-1 OP Units outstanding at the beginning of the then-current calendar year and all Class X-1 OP Units issued since the beginning of the then-current calendar year, taking into account the timing and amount of all distributions accrued or paid (without duplication) on all such units and all issuances of Class X-1 OP Units over the period and calculated in accordance with

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recognized industry practices. The ending NAV of the Class X-1 OP Units used in calculating the internal rate of return will be calculated before giving effect to any allocation/accrual to the Class X-1 Performance Allocation and applicable distribution fee expenses. For the avoidance of doubt, the calculation of the Class X-1 Hurdle Amount for any period will exclude any Class X-1 OP Units repurchased during such period, which units will be subject to the Class X-1 Performance Allocation upon repurchase as described below.

Except as described in Class X-1 Loss Carryforward below, any amount by which Class X-1 Total Return falls below the Class X-1 Hurdle Amount will not be carried forward to subsequent periods.

"Class X-1 Loss Carryforward Amount" shall initially equal zero and shall cumulatively increase by the absolute value of any negative annual Class X-1 Total Return and decrease by any positive annual Class X-1 Total Return, provided that the Class X-1 Loss Carryforward Amount shall at no time be less than zero and provided further that the calculation of the Class X-1 Loss Carryforward Amount will exclude the Class X-1 Total Return related to any Class X-1 OP Units repurchased during such year, which units will be subject to the Class X-1 Performance Allocation upon repurchase as described below. The effect of the Class X-1 Loss Carryforward Amount is that the recoupment of past annual Class X-1 Total Return losses will offset the positive annual Class X-1 Total Return for purposes of the calculation of the Class X-1 Performance Allocation. This is referred to as a "Class X-1 High-Water Mark."

With respect to Class A OP Units only, the Special Limited Partner will be allocated a Class A Performance Allocation in an amount equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•First, if the Class A Total Return for the applicable period exceeds the sum of (i) the Class A Hurdle Amount for that period and (ii) the Class A Loss Carryforward Amount (any such excess, "Class A Excess Profits"), 100% of such annual Excess Profits until the total amount allocated to the Special Limited Partner equals 12.5% of the sum of (x) the Class A Hurdle Amount for that period and (y) any amount allocated to the Special Limited Partner pursuant to this clause (this is commonly referred to as a "Class A Catch-Up"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Second, to the extent there are remaining Class A Excess Profits, 12.5% of such remaining Class A Excess Profits.

"Class A Total Return" for any period since the end of the prior calendar year shall equal the sum of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)all distributions accrued or paid (without duplication) on the Class A OP Units outstanding at the end of such period since the beginning of the then-current calendar year plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)the change in aggregate NAV of such Class A OP Units since the beginning of the year, before giving effect to (x) changes resulting solely from the proceeds of issuances of Class A OP Units and (y) any allocation/accrual to the Class A Performance Allocation.

For the avoidance of doubt, the calculation of Class A Total Return will (i) include any appreciation or depreciation in the NAV of Class A OP Units issued during the then-current calendar year but (ii) exclude the proceeds from the initial issuance of such Class A OP Units.

"Class A Hurdle Amount" for any period during a calendar year means that amount that results in a 5% annualized internal rate of return on the NAV of the Class A OP Units outstanding at the beginning of the then-current calendar year and all Class A OP Units issued since the beginning of the then-current calendar year, taking into account the timing and amount of all distributions accrued or paid (without duplication) on all such units and all issuances of Class A OP Units over the period and calculated in accordance with recognized industry practices. The ending NAV of the Class A OP Units used in calculating the internal rate of return will be calculated before giving effect to any allocation/accrual to the Class A Performance Allocation and applicable distribution fee expenses. For the avoidance of doubt, the calculation of the Class A Hurdle Amount for any period will exclude any Class A OP Units repurchased during such period, which units will be subject to the Class A Performance Allocation upon repurchase as described below.

Except as described in Class A Loss Carryforward below, any amount by which Class A Total Return falls below the Class A Hurdle Amount will not be carried forward to subsequent periods.

"Class A Loss Carryforward Amount" shall initially equal zero and shall cumulatively increase by the absolute value of any negative annual Class A Total Return and decrease by any positive annual Class A Total Return, provided that the Class A Loss Carryforward Amount shall at no time be less than zero and provided further that the calculation of the Class A Loss Carryforward Amount will exclude the Class A Total Return related to any Class A OP Units repurchased during such year, which units will be subject to the Class A Performance Allocation upon repurchase as described below. The effect of the Class A Loss Carryforward Amount is that the recoupment of past annual Class A Total Return losses will offset the positive annual Class A Total Return for purposes of the calculation of the Class A Performance Allocation. This is referred to as a "Class A High-Water Mark."

The Special Limited Partner will also be allocated a Performance Allocation, Class X-1 Performance Allocation and Class A Performance Allocation, as applicable, with respect to all OP Units that are repurchased at the end of any month (in connection with repurchases of our shares in the SRP) in an amount calculated as described above with the relevant period being the portion of the year

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for which such unit was outstanding, and proceeds for any such unit repurchase will be reduced by the amount of any such Performance Allocation, Class X-1 Performance Allocation or Class A Performance Allocation.

Distributions on the Performance Allocation, Class X-1 Performance Allocation or Class A Performance Allocation may be distributable in cash or Class I OP Units at the election of the Special Limited Partner. If the Special Limited Partner elects to receive such distributions in OP Units, the Special Limited Partner may request the Operating Partnership to repurchase such OP Units from the Special Limited Partner at a later date. Any such repurchase requests will not be subject to the Early Repurchase Deduction but will be subject to similar repurchase limits that exist under the SRP.

For the avoidance of doubt, the Special Limited Partner will not be entitled to a special allocation with respect to the Class X-2 OP Units.

*Expense Reimbursement*. Subject to the limitations described below under "Reimbursement by our Advisor," we will reimburse the Advisor and its affiliates for all expenses attributable to us paid or incurred by the Advisor or its affiliates in providing serves to us, including all expenses and costs of salaries and benefits of persons employed by the Advisor and its affiliates and performing services for us, except for the salaries and benefits of persons who also serve as one of our executive officers or an executive officer of the Advisor or its affiliates. Without limiting the generality of the foregoing, costs eligible for reimbursement include out-of-pocket costs and expenses our Advisor incurs in connection with the services it provides to us related to (1) legal, accounting, printing, mailing and subscription processing fees and other expenses attributable to our organization, preparation of the registration statement, registration and qualification of our common stock for sale with the SEC and in the various states and filing fees incurred by our Advisor (as described further below), (2) the actual cost of goods and services used by us and obtained from third parties, including fees paid to administrators, consultants, attorneys, technology providers and other services providers, and brokerage fees paid in connection with the purchase and sale of investments and securities, (3) expenses of managing and operating our properties, whether payable to an affiliate or a non-affiliated person, and (4) out-of-pocket expenses in connection with the selection and acquisition of properties and real estate-related investments, whether or not such investments are acquired. We may change our expense reimbursement arrangements with our Advisor in the future.

Our Advisor may require us to reimburse it for any organization and offering expenses associated with the Offerings that it incurs on our behalf (including legal, accounting, printing, mailing, subscription processing and filing fees and expenses, reasonable bona fide due diligence expenses of participating broker-dealers supported by detailed and itemized invoices, costs in connection with preparing sales materials, design and website expenses, fees and expenses of our escrow agent and transfer agent, expense reimbursements for wholesaler compensation expenses and actual costs incurred by employees of the Dealer Manager in the performance of wholesaling activities and expense reimbursements for retail expenses, but excluding upfront selling commissions, dealer manager fees and distribution fees) as and when incurred. After the termination of the primary offering and again after termination of the offering under the DRP, our Advisor has agreed to reimburse us to the extent that the organization and offering expenses that we incur exceed 15% of our gross proceeds from the applicable offering.

*Reimbursement by our Advisor*. Our Advisor will reimburse us for any expenses that cause our Total Operating Expenses (as defined below) in any four consecutive fiscal quarters to exceed the greater of: (1) 2% of our Average Invested Assets (as defined below) or (2) 25% of our Net Income (as defined below).

Notwithstanding the foregoing, to the extent that our Total Operating Expenses exceed these limits and the independent directors determine that the excess expenses were justified based on unusual and nonrecurring factors that they deem sufficient, our Advisor would not be required to reimburse us. Within 60 days after the end of any fiscal quarter for which our Total Operating Expenses for the four consecutive fiscal quarters then ended exceed these limits and our independent directors approve such excess amount, we will send our stockholders a written disclosure of such fact, or will include such information in our next quarterly report on Form 10-Q or in a current report on Form 8-K filed with the SEC, together with an explanation of the factors our independent directors considered in arriving at the conclusion that such excess expenses were justified. In addition, our independent directors will review at least annually the total fees, performance allocations and expense reimbursements for operating expenses paid to our Advisor and the Special Limited Partner to determine if they are reasonable in light of our performance, our net assets and our net income and the fees and expenses of other comparable unaffiliated REITs. Each such determination will be recorded in the minutes of a meeting of the independent directors. For the year ended December 31, 2025, the Company had Total Operating Expenses of approximately $4.9 million, Average Invested Assets of approximately $452.6 million, and Net Income of approximately $6.3 million. Total Operating Expenses represented 1.1% of Average Invested Assets and 78.4% of Net Income.

As used herein, "Total Operating Expenses" are all costs and expenses paid or incurred by us, as determined under generally accepted accounting principles, including the management fee and the performance participation, but excluding: (i) the expenses of raising capital such as organization and offering expenses, legal, audit, accounting, underwriting, brokerage, listing, registration and other fees, printing, and other such expenses and taxes incurred in connection with the issuance, distribution, transfer, registration and listing of our capital stock, (ii) interest payments, (iii) taxes, (iv) non-cash expenditures such as depreciation, amortization and bad debt reserves,

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(v) incentive fees paid in compliance with our charter, (vi) acquisition fees and acquisition expenses related to the selection and acquisition of assets, whether or not a property is actually acquired, (vii) real estate commissions on the sale of property and (viii) other fees and expenses connected with the acquisition, disposition and ownership of real estate interests, mortgage loans or other property (including the costs of foreclosure, insurance premiums, legal services, maintenance, repair and improvement of property).

As used herein, "Average Invested Assets" means, for any period, the average of the aggregate book value of our assets, invested, directly or indirectly, in equity interests in and loans secured by real estate, including all properties, mortgages and real estate-related securities and consolidated and unconsolidated joint ventures or other partnerships, before deducting depreciation, amortization, impairments, bad debt reserves or other non-cash reserves, computed by taking the average of such values at the end of each month during such period.

As used herein, "Net Income" means, for any period, total revenues applicable to such period, less the total expenses applicable to such period other than additions to, or allowances for, non-cash charges such as depreciation, amortization, impairments and reserves for bad debt or other similar non-cash reserves.

*Independent Directors' Review of Compensation.* Our independent directors evaluate at least annually whether the compensation that we contract to pay to our Advisor is reasonable in relation to the nature and quality of services performed and that such compensation is within the limits prescribed by our charter. Our independent directors supervise the performance of our Advisor and the compensation we pay to it to determine that the provisions of the Advisory Agreement are being carried out. This evaluation is based on the factors set forth below, as well as any other factors deemed relevant by the independent directors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the amount of fees paid to our Advisor in relation to the size, composition and performance of our investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the success of our Advisor in generating investments that meet our investment objectives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•rates charged to other externally advised REITs and other similar investment entities by advisors performing similar services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•additional revenues realized by our Advisor and its affiliates through their advisory relationship with us (including the performance participation allocations paid to the Special Limited Partner);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the quality and extent of the services and advice furnished by our Advisor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the performance of the assets, including income, conservation or appreciation of capital, frequency of problem investments and competence in dealing with distress situations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the quality of our portfolio in relationship to the investments generated by our Advisor for its own account.

In addition to the management fee, performance participation and expense reimbursements, we have agreed to indemnify and hold harmless our Advisor and its affiliates performing services for us from specific claims and liabilities arising out of the performance of their obligations under the Advisory Agreement, subject to certain limitations.

**The Dealer Manager Agreements**

We have entered into agreements with the Dealer Manager, pursuant to which the Dealer Manager agreed to, among other things, manage our relationships with third-party broker-dealers engaged by the Dealer Manager to participate in the distribution of shares of our common stock in the Offerings, which we refer to as "participating broker-dealers," and financial advisors. The Dealer Manager also coordinates our marketing and distribution efforts with participating broker-dealers and their registered representatives with respect to communications related to the terms of the Offerings, our investment strategies, material aspects of our operations and subscription procedures. We will not pay referral or similar fees to any accountants, attorneys or other persons in connection with the distribution of our shares. The Dealer Manager is a registered broker-dealer affiliated with the Advisor.

***Public Offering: Upfront Selling Commissions and Dealer Manager Fees***

In connection with the Public Offering only, subject to any discounts, the Dealer Manager is entitled to receive upfront selling commissions of up to 3.0%, and upfront dealer manager fees of 0.5%, of the transaction price of each Class T share sold in the primary offering, however such amounts may vary at certain participating broker-dealers provided that the sum will not exceed 3.5% of the transaction price. Subject to any discounts, the Dealer Manager is entitled to receive upfront selling commissions of up to 3.5% of the transaction price of each Class S share sold in the primary offering. Subject to any discounts, the Dealer Manager may be entitled to receive upfront selling commissions of up to 1.5% of the transaction price of each Class D share sold in the primary offering. The Dealer Manager anticipates that all or a portion of the upfront selling commissions and dealer manager fees will be retained by, or reallowed (paid) to, participating broker-dealers.

***Public Offering: Distribution Fees***

In connection with the Public Offering only, subject to FINRA limitations on underwriting compensation and certain other limitations described below, we pay the Dealer Manager selling commissions over time as distribution fees (i) with respect to our outstanding Class

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T shares equal to 0.85% per annum of the aggregate NAV of our outstanding Class T shares, consisting of a representative distribution fee of 0.65% per annum, and a dealer distribution fee of 0.20% per annum, of the aggregate NAV of our outstanding Class T shares, however, with respect to Class T shares sold through certain participating broker-dealers, the representative distribution fee and the dealer distribution fee may be other amounts, provided that the sum of such fees will always equal 0.85% per annum of the NAV of such shares; (ii) with respect to our outstanding Class S shares equal to 0.85% per annum of the aggregate NAV of our outstanding Class S shares; and (iii) with respect to our outstanding Class D shares equal to 0.25% per annum of the aggregate NAV of our outstanding Class D shares. We do not pay a distribution fee with respect to our outstanding Class I, Class X-1 or Class X-2 shares.

The distribution fees is paid monthly in arrears. The Dealer Manager reallows (pays) all or a portion of the distribution fees to participating broker-dealers and servicing broker-dealers, and will waive distribution fees to us to the extent a broker-dealer is not eligible to receive them.

The ongoing distribution fees listed above are allocated on a class-specific basis and borne by all holders of the applicable class. These class-specific fees may differ for each class, even when the NAV per share of each class is the same. We normally expect that the allocation of ongoing distribution fees on a class-specific basis will result in different amounts of distributions being paid with respect to each class of shares. In other words, the per share amount of distributions on Class T, Class S, Class D, Class I, Class X-1 and Class X-2 shares generally differs because of different class-specific distribution fees that are deducted from the gross distributions for each share class. However, if no distributions are authorized for a certain period, or if they are authorized in an amount less than the allocation of class-specific fees with respect to such period, then pursuant to our valuation procedures, the class-specific fee allocations may lower the NAV per share of a share class. Therefore, as a result of the different ongoing distribution fees allocable to each share class, each share class could have a different NAV per share. If the NAV per share of our classes are different, then changes to our assets and liabilities that are allocable based on NAV may also be different for each class.

We will cease paying the distribution fee with respect to any Class T share, Class S share or Class D share held in a stockholder's account at the end of the month in which the Dealer Manager in conjunction with the transfer agent determines that total upfront selling commissions, dealer manager fees and distribution fees paid with respect to the shares held by such stockholder within such account would equal or exceed, in the aggregate, the Fee Limit. At the end of such month, each such Class T share, Class S share or Class D share in such account (including shares in such account purchased through the DRP or received as a stock dividend) will convert into a number of Class I shares (including any fractional shares) with an equivalent aggregate NAV as such share. Although we cannot predict the length of time over which the distribution fee will be paid due to potential changes in the NAV of our shares, in the case of a limit of 8.75% of gross proceeds, this fee would be paid with respect to a Class T share or Class S share over approximately 7 years from the date of purchase and with respect to a Class D share over approximately 30 years from the date of purchase, assuming payment of the full upfront selling commissions and dealer manager fees, opting out of the DRP and a constant NAV per share. Under these assumptions and assuming a constant NAV per share of $25.00, if a stockholder holds his or her shares for these time periods, this fee with respect to a Class T share or Class S share would total approximately $1.34 and with respect to a Class D share would total approximately $1.82.

In addition, after termination of a primary offering registered under the Securities Act, we will cease paying the distribution fees with respect to each Class T, Class S or Class D share sold in that primary offering, each Class T, Class S or Class D share sold under the DRP pursuant to the same registration statement that was used for that primary offering, and each Class T, Class S or Class D share received as a stock dividend with respect to such shares sold in such primary offering or the DRP, on the date when, we, with the assistance of the Dealer Manager, determine that all underwriting compensation paid or incurred with respect to the offerings covered by that registration statement from all sources, determined pursuant to the rules and guidance of FINRA, would equal or exceed 10% of the aggregate purchase price of all shares sold for our account through that primary offering.

During the year ended December 31, 2025, the total equity capital raised was approximately $8.1 million and the total costs of raising capital, which include all upfront selling commissions, dealer manager fees, and distribution fees and other offering expenses, were approximately $1.3 million, which represented approximately 17% of the total capital raised.

***Private Offering: No Fees or Compensation***

No fees or other compensation (other than the customary reimbursement of expenses and indemnification) are payable to the Dealer Manager in connection with the Private Offering.

**The Property Management Agreements**

We may rely on the Inland Commercial Real Estate Services LLC, an affiliate of our Advisor ("Inland Commercial") or Inland Devon Self Storage Holdings LLC, an affiliate of our Sponsor ("Devon"), to perform property management, construction management and leasing services for certain of the properties we acquire. Any fees paid to our Advisor's affiliates for any such services will not reduce the management fee payable to our Advisor or the performance participation allocations. Any such arrangements will be at or below market rates.

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Inland Commercial manages our Operating Partnership's current portfolio of healthcare properties and Devon manages our Operating Partnership's portfolio of self-storage properties. Our Operating Partnership's student housing property is managed by a third-party manager. The terms of the property management agreements with Inland Commercial and Devon for the Operating Partnership's portfolio, referred to as "Property Management Agreements," are summarized below.

***Services***

Pursuant to each Property Management Agreement, Inland Commercial or Devon is responsible for managing, operating and maintaining the property, which includes, among other things: collecting all rents and assessments from the property; paying all expenses of the property from a custodial account established for the property; preparing an annual budget; hiring and supervising employees, including, but not limited to managers, assistant managers, leasing consultants, engineers, janitors and maintenance supervisors; rendering reports for the property; making or causing to be made all ordinary or emergency repairs and replacements necessary to preserve the property; leasing the property; creating a marketing program for the property, upon request; exploring strategic alternatives for the property; and overseeing construction management, upon request.

***Term and Termination***

Each Property Management Agreement with Inland Commercial and Devon has an initial term of one year, and will automatically renew for successive one-year periods thereafter. A Property Management Agreement with Inland Commercial may be terminated: (1) at any time upon the mutual consent of both parties; (2) by either party upon 60 days' notice prior to the expiration of the then-current term; (3) in the event the property is sold to a third party; (4) by the applicable owner if the property manager violates the Property Management Agreement and fails to cure after notice, as set forth in the Property Management Agreement, or the property manager experiences a bankruptcy event, as described in the Property Management Agreement; or (5) by the property manager in the event that the owner experiences a "change of control," as defined in the Property Management Agreement. A Property Management Agreement with Devon may be terminated: (a) by either party without cause upon 60 days' prior written notice; (b) by either party if the other party has defaulted in the performance of any term of the agreement of the property and such default has not been cured; (c) by either party if the other party experiences a bankruptcy event, as described in the Property Management Agreement; or (d) by the owner in the event of a sale or the condemnation or destruction of all or substantially all of a property.

***Compensation***

For the portfolio managed by Inland Commercial, the Operating Partnership pays Inland Commercial a monthly management fee of up to 5.0% of the gross income from any property managed directly by Inland Commercial or its affiliates. Inland Commercial may reduce, in its sole discretion, the amount of the management fee payable in connection with a particular property, subject to these limits. For certain properties, the Operating Partnership may also pay monthly administrative fee, in an amount equal to 15% of the common area maintenance costs (if any) for the month in which the administrative fee is paid to Inland Commercial.

The Operating Partnership may also pay, if applicable, a leasing services fee for any leasing services performed by Inland Commercial, which fee will be based upon the prevailing market rates applicable to the geographic market of the Property, as mutually agreed upon by the Operating Partnership and Inland Commercial. Additionally, the Operating Partnership may pay, if applicable, a construction management fee for any construction management oversight performed by Inland Commercial pursuant to the Property Management Agreement, which will be based upon the prevailing market rates applicable to the Property's geographic market, as mutually agreed upon by the Operating Partnership and Inland Commercial. The construction management fee will be calculated on the total project cost as budgeted at the start of the construction project.

The Operating Partnership also reimburses Inland Commercial and its affiliates for property-level expenses that they pay or incur on its behalf in connection with the portfolio it manages, including the salaries and performing services for Inland Commercial and its affiliates (excluding the executive officers of Inland Commercial, the Operating Partnership or the Company). Further, in the case of personnel who also provide services for other entities sponsored by, or affiliated with, our sponsor, the Operating Partnership reimburses only a pro rata portion of the salary and benefits of these persons based on the amount of time spent by such persons on our matters compared to the time spent by such persons on all other matters. Additionally, with respect to any lease in the current portfolio that is structured as a single-tenant "net lease," the Operating Partnership has no obligation to reimburse Inland Commercial for the costs of salaries and benefits of persons employed by Inland Commercial or its affiliates and performing services for us.

For the portfolio managed by Devon, the Operating Partnership pays Devon a monthly management fee in an amount equivalent to the greater 5.0% of the "gross revenue," as defined in the Property Management Agreement, generated on an aggregate basis from the property during the preceding calendar month or $2,500 on an aggregate basis, whichever is greater. If Devon supervises any capital improvement project for the property owner, the Operating Partnership will also pay Devon a development supervision fee, in an amount equal to 10% of the cost of the project if the project is completed by Devon or in an amount equal to 7% if the project is completed by a third party. Additionally, Devon will issue the Operating Partnership a monthly credit equal to any monthly administrative fee collected by Devon in connection with the insurance premiums collected at the property.

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**Limited Liability and Indemnification of Directors, Officers, our Advisor and Other Agents**

Our organizational documents generally limit the personal liability of our stockholders, directors and officers for monetary damages and require us to indemnify and advance expenses to our directors, officers and our Advisor and any of its affiliates acting as our agents subject to the limitations of the NASAA REIT Guidelines and Maryland law. Maryland law permits a corporation to include in its charter a provision limiting the liability of directors and officers to the corporation and its stockholders for money damages, except for liability resulting from actual receipt of an improper benefit or profit in money, property or services or active and deliberate dishonesty established by a final judgment and which is material to the cause of action. The MGCL requires a corporation (unless its charter provides otherwise, which our charter does not) to indemnify a director or officer who has been successful, on the merits or otherwise, in the defense of any proceeding to which he or she is made or threatened to be made a party by reason of his or her service in that capacity. The MGCL allows directors and officers to be indemnified against judgments, penalties, fines, settlements and reasonable expenses actually incurred in connection with a proceeding unless the following can be established:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•an act or omission of the director or officer was material to the cause of action adjudicated in the proceeding, and was committed in bad faith or was the result of active and deliberate dishonesty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the director or officer actually received an improper personal benefit in money, property or services; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•with respect to any criminal proceeding, the director or officer had reasonable cause to believe his or her act or omission was unlawful.

A court may order indemnification if it determines that the director or officer is fairly and reasonably entitled to indemnification, even though the director or officer did not meet the prescribed standard of conduct or was adjudged liable on the basis that personal benefit was improperly received. However, indemnification for an adverse judgment in a suit by the corporation or in its right, or for a judgment of liability on the basis that personal benefit was improperly received, is limited to expenses. The MGCL permits a corporation to advance reasonable expenses to a director or officer upon receipt of a written affirmation by the director or officer of his or her good faith belief that he or she has met the standard of conduct necessary for indemnification and a written undertaking by him or her or on his or her behalf to repay the amount paid or reimbursed if it is ultimately determined that the standard of conduct was not met.

In addition to the above limitations of the MGCL, our charter provides that our directors, our Advisor and its affiliates may be indemnified for losses or liability suffered by them or held harmless for losses or liability suffered by us only if all of the following conditions are met:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the indemnitee determined, in good faith, that the course of conduct which caused the loss or liability was in our best interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the indemnitee was acting on our behalf or performing services for us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•in the case of affiliated directors, our Advisor or its affiliates, the liability or loss was not the result of negligence or misconduct by the party seeking indemnification; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•in the case of our independent directors, the liability or loss was not the result of gross negligence or willful misconduct by the party seeking indemnification.

In addition, any indemnification or any agreement to hold harmless is recoverable only out of our net assets and not from our stockholders.

Our charter also provides that we may not provide indemnification to a director, our Advisor or any affiliate or any person acting as a broker-dealer for any loss, liability or expense arising from or out of an alleged violation of federal or state securities laws by such party unless one or more of the following conditions are met:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•there has been a successful adjudication on the merits of each count involving alleged securities law violations as to the party seeking indemnification;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•such claims have been dismissed with prejudice on the merits by a court of competent jurisdiction as to such party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a court of competent jurisdiction approves a settlement of the claims against such party and finds that indemnification of the settlement and the related costs should be made, and the court considering the request for indemnification has been advised of the position of the SEC and of the published position of any state securities regulatory authority in which our securities were offered or sold as to indemnification for violations of securities laws.

Finally, our charter provides that we may pay or reimburse reasonable legal expenses and other costs incurred by our directors, our Advisor and its affiliates in advance of final disposition of a proceeding only if all of the following are satisfied:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the proceeding relates to acts or omissions with respect to the performance of duties or services on our behalf;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the indemnitee provides us with written affirmation of his or her good faith belief that he or she has met the standard of conduct necessary for indemnification;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the legal proceeding was initiated by a third party who is not a stockholder or, if by a stockholder acting in his or her capacity as such, a court of competent jurisdiction approves such advancement; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the indemnitee provides us with a written agreement to repay the amount paid or reimbursed, together with the applicable legal rate of interest thereon, if it is ultimately determined that he or she did not comply with the requisite standard of conduct and is not entitled to indemnification.

We have entered into indemnification agreements with each of our directors and executive officers. Pursuant to the terms of these indemnification agreements, we would indemnify and advance expenses and costs incurred by our directors and executive officers in connection with any claims, suits or proceedings brought against such directors and executive officers as a result of his or her service. However, our indemnification obligation is subject to the limitations set forth in the indemnification agreements and in our charter. We also maintain a directors and officers insurance policy.

The general effect to investors of any arrangement under which any of our controlling persons, directors or officers are insured or indemnified against liability is a potential reduction in distributions resulting from our payment of premiums, deductibles and other costs associated with such insurance or, to the extent any such loss is not covered by insurance, our payment of indemnified losses. In addition, indemnification could reduce the legal remedies available to us and our stockholders against the indemnified individuals; however, this provision does not reduce the exposure of our directors and officers to liability under federal or state securities laws, nor does it limit our stockholder's ability to obtain injunctive relief or other equitable remedies for a violation of a director's or an officer's duties to us or our stockholders, although the equitable remedies may not be an effective remedy in some circumstances.

The SEC and certain state securities regulators take the position that indemnification against liabilities arising under the Securities Act and state securities laws is against public policy and unenforceable.

To the extent consistent with the limitations in our charter, our Operating Partnership must also indemnify us, our directors, our officers, the Advisor and other persons we may designate against losses of any nature that relate to the operations of the Partnership and must also advance expenses relating to the foregoing.

**Other Related Party Transactions**

*Credit Facility*

On October 27, 2023, the Operating Partnership, as borrower, entered into a revolving credit facility loan agreement (the "Credit Agreement") and a revolving promissory note (the "Promissory Note, and together with the Credit Agreement, as modified, the "Credit Facility") with IPC, as lender. The Credit Facility provides for loan advances in an aggregate amount not to exceed $22.5 million, with an initial maturity date of November 30, 2024 (as may be amended, modified, extended or renewed, but not accelerated, in IPC's sole discretion) or the date IPC declares obligations under the Credit Facility, or the obligations become, due and payable after the occurrence of an event of default (the "Loan"). The current maturity date of the Credit Facility, as extended, is November 30, 2026. The daily balance of the Loan under the Credit Facility bears interest at rate of 4.25% per annum, however in connection with the occurrence and continuance of certain events of default (and at IPC's option for all other events of default), the interest rate will increase to 9.25% per annum. The Operating Partnership will begin making monthly payments of all accrued and unpaid interest on the Loan in the month subsequent to the first borrowing made by the Operating Partnership on the Loan. The Operating Partnership has the right to prepay all or any part of the Loan at any time upon five days' notice to IPC. The Credit Facility acts in the manner of a revolving credit facility wherein prepayments from the Operating Partnership shall be available for funding future advances to the Operating Partnership.

The Credit Facility contains representations and warranties, covenants, conditions precedent, events of default and acceleration and indemnities that are customary for agreements of this type, including that in connection with certain events of default (and at IPC's option for all other events of default) all obligations of the Operating Partnership under the Credit Facility become immediately due and payable to IPC.

During the fiscal year ended December 31, 2025, the Operating Partnership repaid $2 million on the Credit Facility. During the fiscal year ended December 31, 2024, the Operating Partnership borrowed $19 million under the Credit Facility and repaid $9 million on the Credit Facility. As of December 31, 2025 and 2024, the Operating Partnership had an outstanding balance of $8 million and $10 million, respectively, on the Credit Facility. During the years ended December 31, 2025 and 2024, the Operating Partnership accrued $0.4 million and $0.3 million, respectively, of interest expense on the Credit Facility.

*Acquisition of the Storage Properties*

On April 5, 2024 (the "Storage Closing Date"), the Operating Partnership acquired the Storage Properties for a total purchase price of $43.8 million (paid in cash and Class T and Class I OP Units), including $17.6 million of assumed loans and corresponding swaps with First Merchants Bank. The purchase price was determined based on appraisal performed by an independent third-party appraiser. On April 26, 2024, the Operating Partnership entered into a loan agreement with Parkway for an aggregate principal amount of $28 million, which was used to repay the assumed loans and settle the corresponding swaps with First Merchants Bank.

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The acquisition resulted from a tender offer initiated by our Operating Partnership, in which the Operating Partnership sought to acquire all of the beneficial interests in a Delaware statutory trust then managed by an affiliate of the Advisor, from investors in such Delaware statutory trust in exchange for cash, Class T OP Units, Class S OP Units, Class D OP Units, or Class I OP Units (the "Storage Transaction"). The Class T and Class I OP Units offered in connection with the Storage Transaction were offered by the Operating Partnership pursuant to a private offering exempt from registration under the Securities Act.

In connection with the Storage Transaction, on February 13, 2024, the Operating Partnership, we, and the Dealer Manager, entered into a dealer manager agreement (the "DST Dealer Manager Agreement") under which the OP Units were sold through the Dealer Manager to the investors electing to receive OP Units. Under the DST Dealer Manager Agreement, the Operating Partnership will pay the Dealer Manager (a) a distribution fee with respect to outstanding Class T OP Units sold pursuant to the DST Dealer Manager Agreement that is paid monthly in an amount equal to 0.85% per annum of the aggregate NAV (as determined in accordance with our valuation guidelines) of such outstanding Class T OP Units, consisting of a representative distribution fee of 0.65% per annum, and a dealer distribution fee of 0.20% per annum, of the aggregate NAV of the outstanding Class T OP Units; provided, however, with respect to Class T OP Units sold through certain selected broker-dealers and registered investment advisors engaged by the Dealer Manager (collectively, "Transaction Offering Participants"), the representative distribution fee and the dealer distribution fee may be other amounts, provided that the sum of such fees may not exceed 0.85% per annum of the aggregate NAV of such Class T OP Units; (b) a distribution fee with respect to outstanding Class S OP Units sold pursuant to the DST Dealer Manager Agreement that is paid monthly in an amount equal to 0.85% per annum of the aggregate NAV of such outstanding Class S OP Units; and (c) a distribution fee with respect to outstanding Class D OP Units sold pursuant to the DST Dealer Manager Agreement that is paid monthly in an amount equal to 0.25% per annum of the aggregate NAV of such outstanding Class D OP Units. The Operating Partnership will not pay a distribution fee with respect to Class I OP Units sold pursuant to the DST Dealer Manager Agreement. During the years ended December 31, 2025 and 2024, the Operating Partnership paid $883 and $609, respectively, of distribution fees pursuant to this agreement.

If, subsequently, the Operating Partnership delivers Class T shares pursuant to the terms of the limited partnership agreement of the Operating Partnership in exchange for Class T OP Units sold pursuant to the DST Dealer Manager Agreement ("Resulting Class T Shares"), Class S shares in exchange for Class S OP Units sold pursuant to the DST Dealer Manager Agreement ("Resulting Class S Shares"), or Class D shares in exchange for Class D OP Units sold pursuant to the DST Dealer Manager Agreement ("Resulting Class D Shares"), in each case pursuant to the terms of the limited partnership agreement of the Operating Partnership, we will pay to the Dealer Manager (a) a distribution fee with respect to outstanding Resulting Class T Shares that is paid monthly in an amount equal to 0.85% per annum of the aggregate NAV (as determined in accordance with our valuation guidelines) of such outstanding Resulting Class T Shares, consisting of a representative distribution fee of 0.65% per annum, and a dealer distribution fee of 0.20% per annum, of the aggregate NAV of the outstanding Resulting Class T Shares; provided, however, with respect to Resulting Class T Shares for which the prior OP Units were sold through certain Transaction Offering Participants, the representative distribution fee and the dealer distribution fee may be other amounts, provided that the sum of such fees may not exceed 0.85% per annum of the aggregate NAV of such shares; (b) a distribution fee with respect to outstanding Resulting Class S Shares that is paid monthly in an amount equal to 0.85% per annum of the aggregate NAV of such outstanding Resulting Class S Shares; and (c) a distribution fee with respect to outstanding Resulting Class D Shares that is paid monthly in an amount equal to 0.25% per annum of the aggregate NAV of such outstanding Resulting Class D Shares. We will not pay a distribution fee with respect to Class I shares.

The Operating Partnership will cease paying the distribution fees with respect to any Class T OP Unit, Class S OP Unit or Class D OP Unit held in a limited partner's account at the end of the month in which the Dealer Manager, in conjunction with the transfer agent, determines that total distribution fees paid with respect to the OP Units held by such limited partner within such account would exceed, in the aggregate, 8.75% (or a lower limit as set forth in any applicable agreement between the Dealer Manager and the Transaction Offering Participant who sold such OP Units at the time such OP Units were issued) of the value of the limited partner's OP Units received by the limited partner at the closing of the Storage Transaction, as recorded on the Operating Partnership's books and records. At the end of such month, pursuant to the terms of the limited partnership agreement of the Operating Partnership, each such Class T OP Unit, Class S OP Unit and Class D OP Unit shall automatically and without any action on the part of the holder thereof convert into a number of Class I OP Units (including any fractional OP Units), each with an equivalent aggregate NAV as such Class T OP Unit, Class S OP Unit or Class D OP Unit. The foregoing limitations on distribution fees shall continue to apply if any OP Units are exchanged for shares pursuant to the limited partnership agreement of the Operating Partnership. The Dealer Manager and the Operating Partnership have also agreed to provide indemnification as set forth in the Dealer Manager Agreement. Any party may terminate the Dealer Manager Agreement upon 30 days' written notice.

We and the Operating Partnership offered to those Storage Investors that elect to receive OP Units the opportunity to enter into a tax protection agreement (a "Storage Tax Protection Agreement"). The Storage Tax Protection Agreement provides that: (a) during the five-year period starting on the closing of the Storage Transaction, the Operating Partnership will not dispose of the Storage Properties in a taxable transaction, other than in certain enumerated situations and will indemnify the Storage Investors that receive OP Units for taxes arising to them in the event of a breach of such agreement by the Operating Partnership; and (b) during the 10-year period starting on the closing of the Storage Transaction, the Operating Partnership will provide OP Unit holders with opportunities to ensure that they are allocated sufficient liabilities (including, as applicable, through a guarantee by such holders of indebtedness of the Operating

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Partnership) to prevent gain from being recognized to them as a result of any deemed distributions that would otherwise arise from a decrease in such OP Unit holder's share of liabilities of the Operating Partnership.

*DST Program*

On June 27, 2024, IPC commenced the DST Program, through which it sponsors a series of private placements exempt from registration pursuant to Rule 506(b) of Regulation D under the Securities Act of beneficial interests in specific DSTs owning one or more real properties. The DST Program is designed for, but not limited to, prospective investors seeking to defer the recognition of gain on the sale of other real property under Section 1031 of the Code. In connection with the DST Program, the Operating Partnership, each DST, and each DST investor enter into an option agreement pursuant to which the Operating Partnership will be granted the option (the "FMV Option"), but not the obligation, exercisable in the Operating Partnership's sole and absolute discretion, to require such DST investor to exchange his, her or its DST interest for Class T OP Units, Class S OP Units, Class D OP Units, Class I OP Units, or, in limited circumstances at the discretion of the Operating Partnership, cash, which option may be exercised during the three, three-month periods that begin on the 24-month, 36-month and 48-month anniversary of the final closing of the sale of DST interests pursuant to each private placement.

In connection with each private placement, each DST, the Company, the Operating Partnership and the Dealer Manager enter into a placement agent agreement pursuant to which the Dealer Manager, as placement agent, will offer and sell beneficial interest in the applicable DST. The General Partner and the Operating Partnership are only party to such placement agent agreement for the limited purpose of paying the distribution fees that may be payable to the Dealer Manager in connection with an exercise of the FMV Option, which fees will be calculated in manner identical to those described in connection with the DST Dealer Manager Agreement above.

In connection with the DST Program, IPC, the General Partner and the Operating Partnership entered into a letter agreement (the "IPC Indemnification Agreement") on June 27, 2024 pursuant to which parties provide mutual indemnification obligations with respect to the private placements sponsored by IPC. Under the IPC Indemnification Agreement, the General Partner and the Operating Partnership have agreed to indemnify IPC, its officer and directors, and each person, if any, who controls IPC within the meaning of the Securities Act, against any and all Loss (as defined in the IPC Indemnification Agreement) caused by or based on: (i) any untrue statement or alleged untrue statement of a material fact relating to the General Partner or the Operating Partnership which was furnished or approved by the General Partner or the Operating Partnership specifically for inclusion in, and actually contained in the offering materials related to the private placements but specifically excluding any tax consequences related to the OP Units (collectively, the "General Partner Information") and (ii) the omission or alleged omission therefrom of a material fact regarding the General Partner or the Operating Partnership required to be stated in the General Partner Information (excluding any tax consequences related to the OP Units) or necessary to make the statements in the General Partner Information, in light of the circumstances under which they were made, not misleading.

*Affiliate Investment*

On December 1, 2023, IPC, an affiliate of the Advisor, purchased 99,634 Class I shares for a purchase price of $2.5 million in the Company's Public Offering.

**Certain Conflict Resolution Policies**

Our board of directors has established an affiliate transaction committee comprised of our independent directors. The primary purpose of the affiliate transaction committee is to review transactions between us and Inland or its affiliates (including the Advisor) or with related persons and to determine if the resolution of the conflict of interest is fair and reasonable to us and our stockholders. However, we cannot assure you that this committee will successfully mitigate the risks related to conflicts of interest between us and Inland.

The affiliate transaction committee is responsible for ensuring the fair application of any reasonable method for the allocation of the acquisition of properties by two or more programs of Inland seeking to acquire similar types of assets. The affiliate transaction committee is also responsible for reviewing and approving the terms of all transactions between us and Inland or its affiliates (including the Advisor) or any member of our board of directors, including (when applicable) the economic, structural and other terms of all acquisitions and dispositions. In addition, the affiliate transaction committee is responsible for reviewing the Advisor's performance and the fees and expenses paid by us to the Advisor and any of its affiliates.

**Director Independence**

Our charter provides that a majority of our directors must be independent directors. Further, each of the charters for the audit committee, nominating and corporate governance committee and affiliate transaction committee requires that all members of each such committee are independent. Our charter defines an independent director as a director who is not and has not for the last two years been associated, directly or indirectly, with Inland or our Advisor. Pursuant to our charter, a director is deemed to be associated with Inland or our Advisor if he or she owns any interest in, is employed by, is an officer or director of, or has any material business or professional

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relationship with Inland, our Advisor or any of their affiliates, performs services (other than as a director) for us, or serves as a director or trustee for more than three REITs sponsored by Inland or advised by our Advisor. A business or professional relationship will be deemed material per se if the gross income derived by the director from Inland, our Advisor or any of their affiliates during either of the last two years exceeds 5% of (1) the director's annual gross income derived from all sources or (2) the director's net worth on a fair market value basis. An indirect association is defined to include circumstances in which the director's spouse, parents, children, siblings, mothers- or fathers-in-law, sons- or daughters-in-law or brothers- or sisters-in-law is or has been associated with us, Inland, our Advisor or any of their affiliates. Our charter requires that a director have at least three years of relevant experience demonstrating the knowledge required to successfully acquire and manage the type of assets that we intend to acquire. Our charter also requires that at all times at least one of our independent directors must have at least three years of relevant real estate experience.

Based upon its review, our board of directors and the nominating and corporate governance committee have affirmatively determined that each of Messrs. Feldman, Reid and Rigby has no direct or indirect material relationship with the Company, meets all of the bright-line independence tests set forth under Section 303A.02 of the New York Stock Exchange Listed Company Manual, meets the independence criteria set forth in Rule 10A-3 under the Exchange Act, and meets the definition of an independent director within the Company's Articles of Amendment and Restatement, as amended.

For more information relating to our independent directors, see Item 10, "Directors, Executive Officers and Corporate Governance" of this Annual Report on Form 10-K.

**Report of the Affiliate Transaction Committee**

The affiliate transaction committee has examined the fairness of the transactions described above, and has determined that all such transactions are fair and reasonable to us. The affiliate transaction committee has reviewed our policies described above and in our registration statement related to our ongoing public offering, as well as other policies previously reviewed and approved by our board of directors, and determined that they are in the best interests of our stockholders because it believes such policies are consistent with achieving our investment objectives while appropriately addressing conflicts of interest that may arise.

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| |
|:---|
| The Affiliate Transaction Committee of the Board of Directors: |
| Alan Feldman |
| Michael W. Reid |
| Daniel Rigby |

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**Item 14. Principal Accountant Fees and Services**

The following table presents fees for professional services and audit-related services rendered by PricewaterhouseCoopers LLP ("PwC") for the years ended December 31, 2025 and 2024, together with fees for audit-related services and tax services rendered by PwC ($ in thousands).

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| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Audit fees<sup>(1)</sup> | $475 | $517 |
| Audit-related fees |  |  |
| Tax fees<sup>(2)</sup> | 460 | 90 |
| All other fees |  |  |
| Total | $935 | $607 |
| ____________ |  |  |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Audit fees consist of fees incurred for the audit of our financial statements for years ended December 31, 2025 and 2024 and the review of our financial statements included in our quarterly reports on Form 10-Q, fees relating to the audits of the financial statements of the Operating Partnership for the years ended December 31, 2025 and 2024, as well as fees relating to registration statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)Tax fees are comprised of tax compliance and tax consulting fees incurred and billed during the respective years.

***Approval of Services and Fees***

Our audit committee has reviewed and approved all of the fees charged by PwC and actively monitors the relationship between audit and non-audit services provided by PwC. The audit committee concluded that all services rendered by PwC were consistent with maintaining PwC's independence. Accordingly, the audit committee has approved all of the services provided by PwC. As a matter of policy, we will not engage our primary independent registered public accounting firm for non-audit services other than "audit-related services," as defined by the SEC, certain tax services and other permissible non-audit services except as specifically approved by the

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chairperson of the audit committee and presented to the full committee at its next regular meeting. We also follow limits on hiring partners of, and other professionals employed by, PwC to ensure that the SEC's auditor independence rules are satisfied.

The audit committee must pre-approve any engagements to render services provided by our independent registered public accounting firm and the fees charges for these services including an annual review of audit fees, audit-related fees, tax fees and other fees with specific dollar value limits for each category of service. During the year, the chairperson of the audit committee will monitor the levels of fees charged by PwC and compare these fees to the amounts previously approved. The chairperson periodically will report the results of such monitoring to the audit committee. The audit committee also will consider on a case-by-case basis, and if appropriate, approve specific engagements that are not otherwise pre-approved. Any proposed engagement that does not fit within the definition of a pre-approved service may be presented to the chairperson of the audit committee for approval.

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**Part IV**

**Item 15. Exhibits and Financial Statement Schedules**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)List of documents filed as part of this report:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Financial Statements:

The financial statements of the Company are contained herein on pages 110 - 124 of this Annual Report on Form 10-K.

The consolidated financial statements of the Operating Partnership are contained herein on pages 127 - 155 of this Annual Report on Form 10-K.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)Financial Statement Schedules:

Schedules for which provision is made in the applicable accounting regulations of the SEC are not required under the related instructions or are not applicable to the Company or the Operating Partnership, and therefore have been omitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)Exhibits:

The list of exhibits filed as part of this Annual Report is set forth on the Exhibit Index attached hereto.

**Item 16. Form 10-K Summary**

None.

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**EXHIBIT INDEX**

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| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 1.1 | [<u>Dealer Manager Agreement (incorporated by reference to Exhibit 1.1 to the Company's Quarterly Report on Form 10-Q, as filed by the Company with the Securities and Exchange Commission on November 14, 2023)</u>](https://www.sec.gov/Archives/edgar/data/1959961/000095017023063580/ck0001959961-ex1_1.htm) |
| 1.2 | [<u>Form of Participating Broker-Dealer Agreement (incorporated by reference to Exhibit 1.2 to the Company's Registration Statement on Form S-11 (File No. 333-272750) filed June 16, 2023)</u>](https://www.sec.gov/Archives/edgar/data/1959961/000119312523169131/d15907dex12.htm) |
| 1.3 | [<u>Form of Selected RIA Agreement (incorporated by reference to Exhibit 1.3 to the Company's Registration Statement on Form S-11 (File No. 333-272750) filed June 16, 2023)</u>](https://www.sec.gov/Archives/edgar/data/1959961/000119312523169131/d15907dex13.htm) |
| 1.4 | [<u>Dealer Manager Agreement - Private Offering, dated August 28, 2025, by and between the Company and the Dealer Manager (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K, as filed by the Company with the Securities and Exchange Commission on September 3, 2025)</u>](https://www.sec.gov/Archives/edgar/data/1959961/000195996125000013/ck0001959961-ex10_1.htm) |
| 1.5 | [<u>Form of Selected Dealer Agreement - Private Offering (included as Exhibit A to the Dealer Manager Agreement - Private Offering filed as Exhibit 1.4 hereto) (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K, as filed by the Company with the Securities and Exchange Commission on September 3, 2025)</u>](https://www.sec.gov/Archives/edgar/data/1959961/000195996125000013/ck0001959961-ex10_1.htm) |
| 1.6 | [<u>Form of Selected RIA Agreement - Private Offering (included as Exhibit B to the Dealer Manager Agreement - Private Offering filed as Exhibit 1.4 hereto) (incorporated by reference to Exhibit 10.3 to the Company's Current Report on Form 8-K, as filed by the Company with the Securities and Exchange Commission on September 3, 2025)</u>](https://www.sec.gov/Archives/edgar/data/1959961/000195996125000013/ck0001959961-ex10_1.htm) |
| 3.1 | [<u>Articles of Amendment and Restatement (incorporated by reference to Exhibit 3.1 to the Company's Registration Statement on Form S-11 (File. No. 333-272750) filed September 22, 2023)</u>](https://www.sec.gov/Archives/edgar/data/1959961/000119312523240428/d15907dex31.htm) |
| 3.2 | [<u>Amended and Restated Bylaws (incorporated by reference to Exhibit 3.2 to the Company's Registration Statement on Form S-11 (File No. 333-272750) filed September 22, 2023)</u>](https://www.sec.gov/Archives/edgar/data/1959961/000119312523240428/d15907dex32.htm) |
| 3.3 | [<u>Articles of Amendment, filed August 28, 2025 (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K, as filed by the Company with the Securities and Exchange Commission on September 3, 2025)</u>](https://www.sec.gov/Archives/edgar/data/1959961/000195996125000013/ck0001959961-ex3_1.htm) |
| 3.4 | [<u>Articles Supplementary, filed August 28, 2025 (incorporated by reference to Exhibit 3.2 to the Company's Current Report on Form 8-K, as filed by the Company with the Securities and Exchange Commission on September 3, 2025)</u>](https://www.sec.gov/Archives/edgar/data/1959961/000195996125000013/ck0001959961-ex3_2.htm) |
| 4.1 | [<u>Amended and Restated Distribution Reinvestment Plan (incorporated by reference to Exhibit 99.2 to the Company's Current Report on Form 8-K, as filed by the Company with the Securities and Exchange Commission on September 3, 2025)</u>](https://www.sec.gov/Archives/edgar/data/1959961/000195996125000013/ck0001959961-ex99_2.htm) |
| 4.2 | [<u>Amended and Restated Share Repurchase Plan (incorporated by reference to Exhibit 99.1 to the Company's Current Report on Form 8-K, as filed by the Company with the Securities and Exchange Commission on September 3, 2025)</u>](https://www.sec.gov/Archives/edgar/data/1959961/000195996125000013/ck0001959961-ex99_1.htm) |
| 4.3 | [<u>Net Asset Value Calculation and Valuation Guidelines (incorporated by reference to Exhibit 4.3 to the Company's Annual Report on Form 10-K for the year ended December 31, 2023 filed March 20, 2024)</u>](https://www.sec.gov/Archives/edgar/data/1959961/000095017024034216/ck0001959961-ex4_3.htm) |
| 10.1 | [<u>Amended and Restated Advisory Agreement, dated August 28, 2025, by and among the Company, the Operating Partnership and the Advisor (incorporated by reference to Exhibit 10.4 to the Company's Current Report on Form 8-K, as filed by the Company with the Securities and Exchange Commission on September 3, 2025)</u>](https://www.sec.gov/Archives/edgar/data/1959961/000195996125000013/ck0001959961-ex10_4.htm) |
| 10.2 | [<u>Fourth Amended and Restated Limited Partnership Agreement of the Operating Partnership, dated August 28, 2025 (incorporated by reference to Exhibit 10.5 to the Company's Current Report on Form 8-K, as filed by the Company with the Securities and Exchange Commission on September 3, 2025)</u>](https://www.sec.gov/Archives/edgar/data/1959961/000195996125000013/ck0001959961-ex10_5.htm) |
| 10.3 | [<u>Form of Indemnification Agreement (incorporated by reference to Exhibit 10.4 to the Company's Registration Statement on Form S-11 (File No. 333-272750) filed June 16, 2023)</u>](https://www.sec.gov/Archives/edgar/data/1959961/000119312523169131/d15907dex104.htm) |
| 10.4 | [<u>Trademark License Agreement, dated June 12, 2023, by and between IPC Alternative Real Estate Income Trust, Inc. and The Inland Real Estate Group, LLC (incorporated by reference to Exhibit 10.3 to the Company's Registration Statement on Form S-11 (File No. 333-272750) filed June 16, 2023)</u>](https://www.sec.gov/Archives/edgar/data/1959961/000119312523240428/d15907dex103.htm) |
| 10.5 | [<u>Director Compensation Plan (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q filed November 12, 2025)</u>](https://www.sec.gov/Archives/edgar/data/1959961/000119312525277150/ck0001959961-ex10_1.htm) |
| 10.6 | [<u>Form of Restricted Stock Award Agreement (incorporated by reference to Exhibit 10.7 to the Company's Registration Statement on Form S-11 (File No. 333-272750) filed September 22, 2023)</u>](https://www.sec.gov/Archives/edgar/data/1959961/000119312523240428/d15907dex107.htm) |

---

------

---

| | |
|:---|:---|
| 10.7 | [<u>Revolving Credit Facility Loan Agreement, dated October 27, 2023, by and between IPC Alternative Real Estate Operating Partnership, LP and Inland Private Capital Corporation (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed October 30, 2023)</u>](https://www.sec.gov/Archives/edgar/data/1959961/000095017023056373/ck0001959961-ex10_1.htm) |
| 10.8 | [<u>Revolving Promissory Note, dated October 27, 2023, by IPC Alternative Real Estate Operating Partnership, LP (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed October 30, 2023)</u>](https://www.sec.gov/Archives/edgar/data/1959961/000095017023056373/ck0001959961-ex10_2.htm) |
| 10.9 | [<u>Dealer Manager Agreement, dated February 13, 2024, by and among IPC Alternative Real Estate Operating Partnership, LP, IPC Alternative Real Estate Income Trust, Inc. (for purposes of Section 4(a)) and Inland Securities Corporation (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed February 15, 2024)</u>](https://www.sec.gov/Archives/edgar/data/1959961/000095017024015864/ck0001959961-ex10_1.htm) |
| 10.10 | [<u>Form of Selected Dealer Agreement to be entered into by Inland Securities Corporation (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed February 15, 2024)</u>](https://www.sec.gov/Archives/edgar/data/1959961/000095017024015864/ck0001959961-ex10_2.htm) |
| 10.11 | [<u>Form of Selected RIA Agreement to be entered into by Inland Securities Corporation (incorporated by reference to Exhibit 10.3 to the Company's Current Report on Form 8-K filed February 15, 2024)</u>](https://www.sec.gov/Archives/edgar/data/1959961/000095017024015864/ck0001959961-ex10_3.htm) |
| 10.12 | [<u>Purchase Obligation Agreement, dated February 13, 2024, by and among IPC Alternative Real Estate Operating Partnership, LP and Self-Storage Portfolio V Exchange, L.L.C., in its capacity as signatory trustee of Self-Storage Portfolio V DST, Self-Storage Portfolio V DST, AL Self-Storage DST, and GA Self-Storage DST, and Inland Private Capital Corporation as a joinder party (incorporated by reference to Exhibit 10.4 to the Company's Current Report on Form 8-K filed February 15, 2024)</u>](https://www.sec.gov/Archives/edgar/data/1959961/000095017024015864/ck0001959961-ex10_4.htm) |
| 10.13 | [<u>Form of Property Management Agreement (incorporated by reference to Exhibit 10.8 to the Company's Registration Statement on Form S-11 (File No. 333-272750) filed September 22, 2023)</u>](https://www.sec.gov/Archives/edgar/data/1959961/000119312523240428/d15907dex108.htm) |
| 10.14 | [<u>Form of Placement Agent Agreement for DST Program (incorporated by reference to Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q filed August 14, 2024)</u>](https://www.sec.gov/Archives/edgar/data/1959961/000095017024096904/ck0001959961-ex10_2.htm) |
| 10.15 | [<u>Form of Option Agreement (incorporated by reference to Exhibit 10.3 to the Company's Quarterly Report on Form 10-Q filed August 14, 2024)</u>](https://www.sec.gov/Archives/edgar/data/1959961/000095017024096904/ck0001959961-ex10_3.htm) |
| 10.16 | [<u>Form of Tax Protection Agreement (incorporated by reference to Exhibit 10.4 to the Company's Quarterly Report on Form 10-Q filed August 14, 2024)</u>](https://www.sec.gov/Archives/edgar/data/1959961/000095017024096904/ck0001959961-ex10_4.htm) |
| 10.17 | [<u>Indemnification Agreement by and between Inland Private Capital Corporation, the Company and IPC Alternative Real Estate Operating Partnership, LP, dated June 27, 2024 (incorporated by reference to Exhibit 10.5 to the Company's Quarterly Report on Form 10-Q filed August 14, 2024)</u>](https://www.sec.gov/Archives/edgar/data/1959961/000095017024096904/ck0001959961-ex10_5.htm) |
| 10.18 | [<u>Second Modification to Loan Documents Agreement, dated November 19, 2025, by and between IPC Alternative Real Estate Operating Partnership, LP and Inland Private Capital Corporation (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed November 24, 2025)</u>](https://www.sec.gov/Archives/edgar/data/1959961/000119312525293580/ck0001959961-ex10_1.htm) |
| 10.19\* | [<u>Loan Agreement, dated September 30, 2021, by and among BMO Harris Bank N.A., as administrative agent and lender, and certain subsidiaries of the Operating Partnership (MOB Cedar Park, L.L.C., MOB 5255 San Antonio, L.L.C., MOB 9157 San Antonio, L.L.C., MOB Raleigh, L.L.C., MOB 1431 Houston, L.L.C., MOB 1 New Britain, L.L.C., MOB 300 New Britain, L.L.C., MOB Oklahoma City, L.L.C., MOB Peoria, L.L.C., MOB Phoenix, L.L.C., MOB 3855 Gilbert, L.L.C., MOB 700 Chandler, L.L.C., MOB 3686 Gilbert, L.L.C., MOB Kingwood, L.L.C., MOB Garden City, L.L.C., and IPCAAF MOB Portfolio II, L.L.C.) as borrowers</u>](ck0001959961-ex10_19.htm) |
| 10.20\* | [<u>First Amendment to Loan Agreement, dated August 1, 2022, by and among BMO Harris Bank N.A., as administrative agent and lender, and certain subsidiaries of the Operating Partnership (MOB Cedar Park, L.L.C., MOB 5255 San Antonio, L.L.C., MOB 9157 San Antonio, L.L.C., MOB Raleigh, L.L.C., MOB 1431 Houston, L.L.C., MOB 1 New Britain, L.L.C., MOB 300 New Britain, L.L.C., MOB Oklahoma City, L.L.C., MOB Peoria, L.L.C., MOB Phoenix, L.L.C., MOB 3855 Gilbert, L.L.C., MOB 700 Chandler, L.L.C., MOB 3686 Gilbert, L.L.C., MOB Kingwood, L.L.C., MOB Garden City, L.L.C., and IPCAAF MOB Portfolio II, L.L.C.) as borrowers</u>](ck0001959961-ex10_20.htm) |
| 10.21\* | [<u>Second Amendment to Loan Agreement, dated October 24, 2023, by and among BMO Bank N.A., as administrative agent and lender, and certain subsidiaries of the Operating Partnership (MOB Cedar Park, L.L.C., MOB 5255 San Antonio, L.L.C., MOB 9157 San Antonio, L.L.C., MOB Raleigh, L.L.C., MOB 1431 Houston, L.L.C., MOB 1 New Britain, L.L.C., MOB 300 New Britain, L.L.C., MOB Oklahoma City, L.L.C., MOB Peoria, L.L.C., MOB Phoenix, L.L.C., MOB 3855 Gilbert, L.L.C., MOB 700 Chandler, L.L.C., MOB 3686 Gilbert, L.L.C., MOB Kingwood, L.L.C., MOB Garden City, L.L.C., and IPCAAF MOB Portfolio II, L.L.C.) as borrowers</u>](ck0001959961-ex10_21.htm) |

---

------

---

| | |
|:---|:---|
| 10.22\* | [<u>Joinder Agreement and Third Amendment to Loan Agreement, dated February 23, 2024, by and among BMO Bank N.A., as administrative agent and lender, MOB West Jordan, L.L.C., a subsidiary of the Operating Partnership and certain other subsidiaries of the Operating Partnership (entities listed in Exhibit A attached thereto) as borrowers</u>](ck0001959961-ex10_22.htm) |
| 10.23 | [<u>Fourth Amendment to Loan Agreement, dated January 26, 2026, by and among BMO Bank N.A., as administrative agent and lender, and certain subsidiaries of the Operating Partnership (MOB Cedar Park, L.L.C., MOB 5255 San Antonio, L.L.C., MOB 9157 San Antonio, L.L.C., MOB Raleigh, L.L.C., MOB 1431 Houston, L.L.C., MOB 1 New Britain, L.L.C., MOB 300 New Britain, L.L.C., MOB Oklahoma City, L.L.C., MOB Peoria, L.L.C., MOB Phoenix, L.L.C., MOB 3855 Gilbert, L.L.C., MOB 700 Chandler, L.L.C., MOB 3686 Gilbert, L.L.C., MOB Kingwood, L.L.C., MOB Garden City, L.L.C., MOB West Jordan, L.L.C., and IPCAAF MOB Portfolio II, L.L.C.) as borrowers (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed January 29, 2026)</u>](https://www.sec.gov/Archives/edgar/data/1959961/000119312526029136/ck0001959961-ex10_1.htm) |
| 10.24 | [<u>Amended and Restated Loan Agreement, dated October 30, 2025, by and among Capital One, National Association, as administrative agent and collateral agent for the Lenders (as defined therein) the parties who are or thereafter become parties to the agreement as Lenders, and certain subsidiaries of the Operating Partnership (parties listed on Exhibit B attached thereto) as borrowers (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed November 5, 2025)</u>](https://www.sec.gov/Archives/edgar/data/1959961/000119312525266807/ck0001959961-ex10_1.htm) |
| 19.1 | [<u>IPC Alternative Real Estate Income Trust, Inc. Insider Trading Policy (incorporated by reference to Exhibit 19.1 to the Company's Annual Report on Form 10-K filed on March 19, 2025)</u>](https://www.sec.gov/Archives/edgar/data/1959961/000095017025041898/ck0001959961-ex19_1.htm) |
| 21.1 | [<u>Subsidiaries of the Registrant (incorporated by reference to Exhibit 21.1 to Post-Effective Amendment No. 4 to the Company's Registration Statement on Form S-11 (File. No. 333-272750) filed April 4, 2025)</u>](https://www.sec.gov/Archives/edgar/data/1959961/000095017025051028/ck0001959961-ex21_1.htm) |
| 31.1\* | [<u>Certification by Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</u>](ck0001959961-ex31_1.htm) |
| 31.2\* | [<u>Certification by Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</u>](ck0001959961-ex31_2.htm) |
| 32.1\* | [<u>Certification by Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002</u>](ck0001959961-ex32_1.htm) |
| 32.2\* | [<u>Certification by Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002</u>](ck0001959961-ex32_2.htm) |
| 101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document. |
| 101.SCH | Inline XBRL Taxonomy Extension Schema with Embedded Linkbases Document |
| 104 | Inline XBRL Taxonomy Extension Schema Document |
|  | \* Filed as part of this Annual Report on Form 10-K. |

---

------

**SIGNATURES**

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
| **IPC Alternative Real Estate Income Trust, Inc.** | **IPC Alternative Real Estate Income Trust, Inc.** | **IPC Alternative Real Estate Income Trust, Inc.** |  |
| By: | /s/ Denise C. Kramer |  |  |
| Name: | Denise C. Kramer |  |  |
|  | Chief Executive Officer<br>(principal executive officer) | Chief Executive Officer<br>(principal executive officer) |  |
| Date: | March 18, 2026 |  |  |
| Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated: | Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated: | Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated: | Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated: |
| By: | /s/ Ella S. Neyland | Director and Chair of the Board | March 18, 2026 |
| Name: | Ella S. Neyland |  |  |
| By: | /s/ Jerry Kyriazis | Chief Financial Officer | March 18, 2026 |
| Name:  | Jerry Kyriazis | (principal financial officer and principal accounting officer) |  |
| By: | /s/ Michael W. Reid | Independent Director | March 18, 2026 |
| Name: | Michael W. Reid |  |  |
| By: | /s/ Daniel Rigby | Independent Director | March 18, 2026 |
| Name: | Daniel Rigby |  |  |
| By: | /s/ Alan Feldman | Independent Director | March 18, 2026 |
| Name: | Alan Feldman |  |  |
| By: | /s/ Anthony Chereso | Director | March 18, 2026 |
| Name: | Anthony Chereso |  |  |

---

------

**INDEX TO FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
|  | Page |
| **IPC Alternative Real Estate Income Trust, Inc.** |  |
| [<u>Report of Independent Registered Public Accounting Firm</u>](#report_of_independent_accounting_firm) | 109 |
| Financial Statements: |  |
| [<u>Balance Sheets as of December 31, 2025 and 2024</u>](#reit_balance_sheet) | 110 |
| [<u>Statements of Operations and Comprehensive Loss for the years ended December 31, 2025 and 2024 and for the period from June 12, 2023 (date of initial capitalization) through December 31, 2023</u>](#reit_stmt_ops_comp_income) | 111 |
| [<u>Statements of Equity for the years ended December 31, 2025 and 2024 and for the period from June 12, 2023 (date of initial capitalization) through December 31, 2023</u>](#reit_stmt_equity) | 112 |
| [<u>Statements of Cash Flows for the years ended December 31, 2025 and 2024 and for the period from June 12, 2023 (date of initial capitalization) through December 31, 2023</u>](#reit_stmt_cash_flows) | 113 |
| [<u>Notes to Financial Statements</u>](#reit_notes_to_financials) | 114 |
| **IPC Alternative Real Estate Operating Partnership, LP (formerly known as IPC Alternative Assets Operating Partnership, LP)** |  |
| [<u>Report of Independent Registered Public Accounting Firm</u>](#audit_opinion_op_successor) | 126 |
| Financial Statements: |  |
| [<u>Consolidated Balance Sheets as of December 31, 2025 and 2024</u>](#op_balance_sheet) | 127 |
| [<u>Consolidated Statements of Operations and Comprehensive Loss for the years ended December 31, 2025, 2024 and 2023</u>](#op_income_statement) | 128 |
| [<u>Consolidated Statements of Partners' Capital for the years ended December 31, 2025, 2024 and 2023</u>](#op_statements_of_equity) | 129 |
| [<u>Consolidated Statements of Cash Flows for the years ended December 31, 2025, 2024 and 2023</u>](#op_statements_of_cash_flows) | 130 |
| [<u>Notes to Consolidated Financial Statements</u>](#op_notes_to_financials) | 132 |

---

------

**Report of Independent Registered Public Accounting Firm**

To the Board of Directors and Stockholders of IPC Alternative Real Estate Income Trust, Inc.

***Opinion on the Financial Statements***

We have audited the accompanying balance sheets of IPC Alternative Real Estate Income Trust, Inc. (the "Company") as of December 31, 2025 and 2024, and the related statements of operations and comprehensive loss, of equity and of cash flows for the years ended December 31, 2025 and 2024, and for the period from June 12, 2023 (date of initial capitalization) to December 31, 2023, including the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for the years ended December 31, 2025 and 2024, and for the period from June 12, 2023 (date of initial capitalization) to December 31, 2023 in conformity with accounting principles generally accepted in the United States of America.

***Basis for Opinion***

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

Chicago, Illinois

March 18, 2026

We have served as the Company's auditor since 2023.

------

**IPC ALTERNATIVE REAL ESTATE INCOME TRUST, INC.**

**BALANCE SHEETS**

(Dollar amounts in thousands, except per share amounts)

---

| | | |
|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2024** |
| **<u>ASSETS</u>** |  |  |
| **Assets:** |  |  |
| Investment in Operating Partnership | $11021 | $4678 |
| Distributions receivable from Operating Partnership | 55 | 19 |
| Receivable from Operating Partnership | 250 | 32 |
| &nbsp;&nbsp;Total assets | $11326 | $4729 |
| **<u>LIABILITIES AND EQUITY</u>** |  |  |
| **Liabilities:** |  |  |
| Distributions payable | $55 | $19 |
| Due to related party | 250 | 32 |
| &nbsp;&nbsp;Total liabilities | 305 | 51 |
| Commitments and contingencies (Note 8) |  |  |
| **Equity:** |  |  |
| Preferred stock, $0.01 par value per share, 100,000,000 shares authorized, 0 shares issued and <br>&nbsp;&nbsp;&nbsp;&nbsp; outstanding as of December 31, 2025 and 2024 |  |  |
| Common stock, Class T shares, $0.01 par value per share, 400,000,000 and 500,000,000 <br>&nbsp;&nbsp;&nbsp;&nbsp; shares authorized as of December 31, 2025 and 2024, respectively, 176,028 and 21,175 <br>&nbsp;&nbsp;&nbsp;&nbsp; shares issued and outstanding as of December 31, 2025 and 2024, respectively | 2 |  |
| Common stock, Class S shares, $0.01 par value per share, 400,000,000 and 500,000,000 <br>&nbsp;&nbsp;&nbsp;&nbsp; shares authorized as of December 31, 2025 and 2024, respectively, 0 shares issued and <br>&nbsp;&nbsp;&nbsp;&nbsp; outstanding as of December 31, 2025 and 2024 |  |  |
| Common stock, Class D shares, $0.01 par value per share, 400,000,000, and 500,000,000 <br>&nbsp;&nbsp;&nbsp;&nbsp; shares authorized as of December 31, 2025 and 2024, respectively, 24,491 and 2,266 <br>&nbsp;&nbsp;&nbsp;&nbsp; shares issued and outstanding as of December 31, 2025 and 2024, respectively |  |  |
| Common stock, Class I shares, $0.01 par value per share, 400,000,000 and 500,000,000 <br>&nbsp;&nbsp;&nbsp;&nbsp; shares authorized as of December 31, 2025 and 2024, respectively, 347,759 and 190,266 <br>&nbsp;&nbsp;&nbsp;&nbsp; shares issued and outstanding as of December 31, 2025 and 2024, respectively | 3 | 2 |
| Common stock, Class X-1 shares, $0.01 par value per share, 200,000,000 and 0 shares <br>&nbsp;&nbsp;&nbsp;&nbsp; authorized as of December 31, 2025 and 2024, respectively, 4,298 and 0 shares issued and <br>&nbsp;&nbsp;&nbsp;&nbsp; outstanding as of December 31, 2025 and 2024, respectively |  |  |
| Common stock, Class X-2 shares, $0.01 par value per share, 200,000,000 and 0 shares <br>&nbsp;&nbsp;&nbsp;&nbsp; authorized as of December 31, 2025 and 2024, respectively, 0 shares issued and<br>&nbsp;&nbsp;&nbsp;&nbsp; outstanding as of December 31, 2025 and 2024 |  |  |
| Common stock, Class A shares, $0.01 par value per share, 100,000,000 shares authorized, <br>&nbsp;&nbsp;&nbsp;&nbsp; 0 shares issued and outstanding as of December 31, 2025 and 2024 |  |  |
| Additional paid-in capital | 13032 | 5242 |
| Accumulated deficit | (1685) | (464) |
| Accumulated other comprehensive loss | (331) | (102) |
| &nbsp;&nbsp;Total equity | 11021 | 4678 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and equity | $11326 | $4729 |

---

See accompanying notes to financial statements.

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**IPC ALTERNATIVE REAL ESTATE INCOME TRUST, INC.**

**STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS**

(Dollar amounts in thousands, except per share amounts)

---

| | | | |
|:---|:---|:---|:---|
|  | **For the year ended December 31,** | **For the year ended December 31,** | **For the period from June 12, 2023 (date of initial capitalization) through December 31,** |
|  | **2025** | **2024** | **2023** |
| **Other Income (Expenses):** |  |  |  |
| Loss from equity method investment in Operating Partnership | $(769) | $(287) | $(16) |
| Net loss | $(769) | $(287) | $(16) |
| Net loss per common share, basic and diluted <sup>(1)</sup> | $(2.05) | $(2.11) | $(0.70) |
| Weighted average number of common shares outstanding, basic and diluted <sup>(1)</sup> | 375495 | 136210 | 23215 |
| Comprehensive loss: |  |  |  |
| &nbsp;&nbsp;Net loss | $(769) | $(287) | $(16) |
| &nbsp;&nbsp;Comprehensive loss from Operating Partnership | (229) | (59) | (43) |
| Comprehensive loss | $(998) | $(346) | $(59) |

---

<sup>(1)</sup> The information for the period from June 12, 2023 (date of initial capitalization) through December 31, 2023 has been retroactively restated to reflect the stock split effected in the form of a stock dividend. See Note 4 for further information.

See accompanying notes to financial statements.

------

**IPC ALTERNATIVE REAL ESTATE INCOME TRUST, INC.**

**STATEMENTS OF EQUITY**

(Dollar amounts in thousands)

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Par value** | **Par value** | **Par value** | **Par value** | **Par value** | **Par value** | **Par value** | **Par value** | **Par value** |  |  |  |  |
|  | **Preferred Stock** | **Common Stock**<sup>(1)</sup> | **Common Stock<br>Class T** | **Common Stock<br>Class S** | **Common Stock<br>Class D** | **Common Stock<br>Class I**<sup>(1)</sup> | **Common Stock Class X-1** | **Common Stock Class X-2** | **Common Stock<br>Class A** | **Additional Paid-in<br>Capital** | **Accumulated Deficit** | **Accumulated Other <br>Comprehensive Loss** | **Total Equity** |
| Balance at June 12, 2023 (date of initial capitalization) | $— | $— | $— | $— | $— | $— | $— | $— | $— | $— | $— | $— | $— |
| Proceeds from issuance of common stock |  |  |  |  |  | 1 |  |  |  | 2699 |  |  | 2700 |
| Common stock distributions declared |  |  |  |  |  |  |  |  |  |  | (13) |  | (13) |
| Equity-based compensation |  |  |  |  |  |  |  |  |  | 23 |  |  | 23 |
| Net loss |  |  |  |  |  |  |  |  |  |  | (16) |  | (16) |
| Comprehensive loss from Operating Partnership |  |  |  |  |  |  |  |  |  |  |  | (43) | (43) |
| Balance at December 31, 2023 |  |  |  |  |  | 1 |  |  |  | 2722 | (29) | (43) | 2651 |
| Proceeds from issuance of common stock |  |  |  |  |  | 1 |  |  |  | 2420 |  |  | 2421 |
| Offering costs |  |  |  |  |  |  |  |  |  | (51) |  |  | (51) |
| Proceeds from distribution reinvestment plan |  |  |  |  |  |  |  |  |  | 8 |  |  | 8 |
| Common stock distributions declared |  |  |  |  |  |  |  |  |  |  | (148) |  | (148) |
| Equity-based compensation |  |  |  |  |  |  |  |  |  | 143 |  |  | 143 |
| Net loss |  |  |  |  |  |  |  |  |  |  | (287) |  | (287) |
| Comprehensive loss from Operating Partnership |  |  |  |  |  |  |  |  |  |  |  | (59) | (59) |
| Balance at December 31, 2024 |  |  |  |  |  | 2 |  |  |  | 5242 | (464) | (102) | 4678 |
| Proceeds from issuance of common stock |  |  | 2 |  |  | 1 |  |  |  | 8078 |  |  | 8081 |
| Offering costs |  |  |  |  |  |  |  |  |  | (332) |  |  | (332) |
| Proceeds from distribution investment plan |  |  |  |  |  |  |  |  |  | 143 |  |  | 143 |
| Shares repurchased |  |  |  |  |  |  |  |  |  | (182) |  |  | (182) |
| Common stock distributions declared |  |  |  |  |  |  |  |  |  |  | (452) |  | (452) |
| Equity-based compensation |  |  |  |  |  |  |  |  |  | 83 |  |  | 83 |
| Net loss |  |  |  |  |  |  |  |  |  |  | (769) |  | (769) |
| Comprehensive loss from Operating Partnership |  |  |  |  |  |  |  |  |  |  |  | (229) | (229) |
| Balance at December 31, 2025 | $— | $— | $2 | $— | $— | $3 | $— | $— | $— | $13032 | $(1685) | $(331) | $11021 |

---

<sup>(1)</sup> Refer to Note 4 regarding the conversion of common stock and stock split effected in the form of a stock dividend for Class I shares.

See accompanying notes to financial statements.

------

**IPC ALTERNATIVE REAL ESTATE INCOME TRUST, INC.**

**STATEMENTS OF CASH FLOWS**

(Dollar amounts in thousands)

---

| | | | |
|:---|:---|:---|:---|
|  | **For the year ended December 31,** | **For the year ended December 31,** | **For the period from June 12, 2023 (date of initial capitalization) through December 31,** |
|  | **2025** | **2024** | **2023** |
| Cash flows from operating activities: |  |  |  |
| Net loss | $(769) | $(287) | $(16) |
| Adjustments to reconcile net loss to net cash provided by operating <br> activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss from equity method investment in Operating Partnership | 769 | 287 | 16 |
| Net cash flows provided by operating activities |  |  |  |
| Cash flows from investing activities: |  |  |  |
| Investment in Operating Partnership | (7985) | (2412) | (2700) |
| Proceeds from redemptions from Operating Partnership | 182 |  |  |
| Distributions from investment in Operating Partnership | 273 | 139 | 3 |
| Distributions from Operating Partnership for offering costs | 18 | 1 |  |
| Net cash flows used in investing activities | (7512) | (2272) | (2697) |
| Cash flows from financing activities: |  |  |  |
| Proceeds from issuance of common stock | 7985 | 2404 | 2700 |
| Proceeds from distribution reinvestment plan |  | 8 |  |
| Shares repurchased | (182) |  |  |
| Payment of offering costs | (18) | (1) |  |
| Distributions paid to common stockholders | (273) | (139) | (3) |
| Net cash flows provided by financing activities | 7512 | 2272 | 2697 |
| Net change in cash and cash equivalents |  |  |  |
| Cash and cash equivalents, at beginning of the period |  |  |  |
| Cash and cash equivalents, at end of the period | $— | $— | $— |
| Supplemental schedule of non-cash investing and financing activities: |  |  |  |
| Distributions payable | $55 | $19 | $10 |
| Distribution reinvestment and investment in Operating Partnership | $143 | $— | $— |
| Equity-based compensation - Restricted stock issued and investment in Operating Partnership | $83 | $143 | $23 |
| Accrued distribution fee due to related party | $250 | $32 | $— |

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See accompanying notes to financial statements.

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**IPC ALTERNATIVE REAL ESTATE INCOME TRUST, INC.**

**NOTES TO FINANCIAL STATEMENTS**

(Dollar amounts in thousands, except share data and per share amounts)

**NOTE 1 – ORGANIZATION**

IPC Alternative Real Estate Income Trust, Inc. (the "Company") was incorporated on June 12, 2023 as a Maryland corporation and elected to be treated as a real estate investment trust ("REIT") for U.S. federal income tax purposes commencing with the taxable year ended December 31, 2024. Until that time, the Company was subject to taxation at regular corporate rates under the Internal Revenue Code of 1986, as amended (the "Code"). The Company was originally formed on June 17, 2021 as a Delaware limited liability company named Inland Private Capital Alternative Assets Fund, LLC and converted to a Maryland corporation on June 12, 2023. The Company is the sole general partner of IPC Alternative Real Estate Operating Partnership, LP, a Delaware limited partnership (the "Operating Partnership") (originally formed under the name IPC Alternative Assets Operating Partnership, LP). The Company has no employees.

The Company is externally managed by IPC Alternative Real Estate Advisor, LLC (the "Advisor"), a Delaware limited liability company, an affiliate of Inland Real Estate Investment Corporation, a Delaware corporation ("IREIC"), pursuant to an amended and restated advisory agreement dated and effective as of August 28, 2025, among the Company, the Operating Partnership and the Advisor (as may be amended or restated from time to time, the "Advisory Agreement").

The Company conducts substantially all of its business and owns, indirectly, substantially all of its assets through the Operating Partnership. The Company, through the Operating Partnership, will invest in stabilized, income-generating commercial real estate across alternative property types, with a non-exclusive focus on self-storage facilities, student housing properties and healthcare-related properties. Healthcare-related assets may include medical outpatient buildings, ambulatory surgery centers, senior living communities and life science and laboratory facilities. The Company, through the Operating Partnership, may also invest in value-add or other development projects in these asset classes, potentially through a variety of ownership structures including but not limited to direct ownership, joint ventures, co-investment opportunities, preferred equity positions and others.

On September 28, 2023, the Company's Registration Statement on Form S-11 (File No. 333-272750) with respect to the Company's public offering was declared effective by the Securities and Exchange Commission ("SEC"). The Company has registered an offering of up to $1,250,000 in shares of common stock with the SEC, consisting of up to $1,000,000 in shares in its primary offering and up to $250,000 in shares pursuant to its distribution reinvestment plan (the "Public Offering"). The Company is offering to sell any combination of four classes of shares of its common stock: Class T shares, Class S shares, Class D shares and Class I shares, with a dollar value up to the maximum offering amount. The share classes have different upfront selling commissions and dealer manager fees, and different ongoing distribution fees. The purchase price per share for each class of common stock will vary and will generally equal the Company's prior month's net asset value ("NAV") per share, as determined monthly, plus applicable upfront selling commissions and dealer manager fees.

On December 1, 2023, the Company had satisfied the minimum offering requirement in all states, except the State of Pennsylvania, in the Public Offering and authorized the release of proceeds from escrow, resulting in the release of approximately $2,500 to the Company as payment for such shares.

On August 28, 2025, the Company commenced a private offering of up to $500,000 of its Class I shares, Class X-1 shares and Class X-2 shares of common stock to "accredited investors" as defined in Regulation D promulgated under the Securities Act of 1933, as amended (the "Private Offering"). The purchase price per share for each class of common stock in the Private Offering will vary and will generally be the prior month's NAV per share for such class. No upfront selling commissions, dealer manager fees or ongoing distribution fees will be paid with respect to purchases of Class I shares, Class X-1 shares and Class X-2 shares sold in the Private Offering. The Private Offering is being conducted pursuant to Rule 506(c) of Regulation D and other applicable exemptions. See *Note 4 - "Equity"* for further information.

When the Company receives proceeds from the Public Offering and the Private Offering (collectively, the "Offerings"), the Company contributes such proceeds to the Operating Partnership and receives Operating Partnership units ("OP Units") that correspond to the classes of the shares sold. The Company accounts for the units acquired in the Operating Partnership as an equity method investment during any period that the Company's investment in the Operating Partnership is not considered significant to the Operating Partnership and expects to consolidate the Operating Partnership at such time that the Company's investment in the Operating Partnership is considered significant to the Operating Partnership, and thereafter present the results of operations on a consolidated basis.

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As of December 31, 2025, the Company holds 176,028 Class T OP Units, 24,491 Class D OP Units, 347,759 Class I OP Units and 4,298 Class X-1 OP Units in the Operating Partnership accounted for as an equity method investment. See *Note 3 - "Investment in Operating Partnership"* for further information.

**NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**Basis of Presentation**

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates.

**Equity Method Accounting**

The Company accounts for an investment under equity method of accounting when the requirements for consolidation are not met and the Company has significant influence over the operations of the entity. Investments under equity method of accounting are initially recorded at cost and subsequently adjusted for the Company's pro-rata share of net income, contributions, redemptions and distributions. The Company's investments in unconsolidated entities are periodically assessed for impairment and an impairment loss is recorded when the fair value of the investment falls below the carrying value and such decline is determined to be other-than-temporary.

Distributions received from equity method investments are classified in the statement of cash flows as either operating or investing activities based on the cumulative earnings approach. Under the cumulative earnings approach, the Company compares distributions received to cumulative equity method earnings since inception. Any distributions received up to the amount of cumulative equity earnings are considered a return on investment and classified in operating activities. Any excess distributions are considered a return of investment and classified in investing activities.

**Cash and Cash Equivalents**

The Company considers all demand deposits, money market accounts and all short-term investments with a maturity of three months or less, at the date of purchase, to be cash equivalents. The account balance may exceed the Federal Deposit Insurance Corporation ("FDIC") insurance coverage and, as a result, there could be a concentration of credit risk related to amounts on deposit in excess of FDIC insurance coverage. The Company believes that the risk will not be significant, as the Company seeks to mitigate this risk by depositing funds only with major financial institutions.

**Income Taxes**

The Company has elected to be taxed as a real estate investment trust ("REIT") under Sections 856 through 860 of the Code commencing with its taxable year ended December 31, 2024. Until that time, the Company was subject to taxation at regular corporate rates under the Code. The Company generally will not be subject to federal income tax on taxable income that is distributed to stockholders. A REIT is subject to a number of organizational and operational requirements, including a requirement that it currently distributes at least 90% of its REIT taxable income (subject to certain adjustments and excluding any net capital gain) to its stockholders. The Company will monitor the business and transactions that may potentially impact its REIT status. If the Company fails to qualify as a REIT in any taxable year, without the benefit of certain statutory relief provisions, the Company will be subject to tax as a "C corporation." Even if the Company qualifies for taxation as a REIT, the Company may be subject to certain state and local taxes on its income, property or net worth and federal income and excise taxes. Any taxable REIT subsidiaries generally will be subject to federal income tax applicable to "C corporations."

The Company had no uncertain tax positions as of December 31, 2025 or 2024. The Company had no interest or penalties relating to income taxes recognized on the statements of operations and comprehensive loss for the years ended December 31, 2025 or 2024 or for the period from June 12, 2023 (date of initial capitalization) through December 31, 2023. As of December 31, 2025, returns for the calendar years 2023 and 2024 remain subject to examination by U.S. and various state and local tax jurisdictions.

**Organization and Offering Expenses**

The Operating Partnership is responsible for all the organization and offering expenses, other than upfront selling commissions, dealer manager fees and distribution fees, for the Operating Partnership as well as the Company. Upfront selling commissions, dealer manager fees and distribution fees will begin to be paid once the Company receives purchase orders for the minimum offering amount. When recorded by the Operating Partnership, organization expenses will be expensed as incurred, and offering expenses will be charged to equity as incurred.

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**Equity-Based Compensation**

In accordance with the Company's Director Compensation Plan (as amended and restated, the "DCP"), restricted shares are issued to independent directors and certain non-independent directors who are designated as participants by the board of directors as compensation. Because the compensation expense for the restricted shares is recognized at the Operating Partnership, the Operating Partnership issues an equivalent number of units to the Company. The Company recognizes the issuance of such units as an investment in Operating Partnership. The Operating Partnership recognizes expense related to the fair value of equity-based compensation awards as an operating expense in its statement of operations and comprehensive loss. The Operating Partnership recognizes expense based on the fair value at the grant date on a straight-line basis over the vesting period representing the requisite service period. See Note 7 – "Equity-Based Compensation" for further information.

**Accounting Pronouncements Recently Adopted**

In December 2023, the Financial Accounting Standards Board (the "FASB") issued ASU 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures*. ASU 2023-09 improves the transparency of income tax disclosures related to rate reconciliation and income taxes. ASU 2023-09 became effective for annual periods that began after December 15, 2024. The amendments should be applied prospectively, however retrospective application was permitted. The Company has adopted ASU 2023-09 and updated its disclosure in *Note 2 – "Summary of Significant Accounting Policies – Income Taxes"*. The adoption did not have any impact on the Company's financial position, results of operations, or cash flows.

**Accounting Pronouncements Recently Issued but Not Yet Effective**

In November 2024, the FASB issued ASU 2024-03, *Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses*. Additionally, in January 2025, the FASB issued ASU 2025-01, *Clarifying the Effective Date*, which revised the effective date of ASU 2024-03 for interim periods. ASU 2024-03 requires disclosures in the notes to the financial statements on specified information about certain costs and expenses that are included on the face of the income statement for each interim and annual reporting period. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026 and interim periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted, and may be applied either prospectively or retrospectively. The Company is currently evaluating the impact of ASU 2024-03 on the Company's financial statements.

In December 2025, the FASB issued ASU 2025-11, *Interim Reporting (Topic 270): Narrow-Scope Improvements*, which clarifies interim reporting guidance, defines applicability to entities presenting full GAAP interim financial statements, provides form and content requirements for condensed statements, and introduces a principle requiring disclosure of material events occurring after the prior annual period. ASU 2025-11 does not change existing disclosure requirements. ASU 2025-11 is effective for interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of ASU 2025-11 on the Company's interim reporting.

**NOTE 3 – INVESTMENT IN OPERATING PARTNERSHIP**

The following table details the Company's contributions to the Operating Partnership during the years ended December 31, 2025 and 2024 and during the period from June 12, 2023 (date of initial capitalization) through December 31, 2023:

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **For the period from June 12, 2023 (date of initial capitalization) through December 31,** |
|  | **2025** <sup>(1)</sup> | **2024** <sup>(2)</sup> | **2023** <sup>(3)</sup> |
| Amount contributed | $8211 | $2555 | $2723 |
| Units received: |  |  |  |
| &nbsp;&nbsp;Class T | 154853 | 21175 |  |
| &nbsp;&nbsp;Class D | 22225 | 2266 |  |
| &nbsp;&nbsp;Class I | 165343 | 81698 | 108569 |
| &nbsp;&nbsp;Class X-1 | 4298 |  |  |

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<sup>(1)</sup> Includes $83 for the issuance of Class I OP Units corresponding to the restricted share grants by the Company to its independent directors during the year ended December 31, 2025.

<sup>(2)</sup> Includes $143 for the issuance of Class I OP Units corresponding to the restricted share grants by the Company to its independent directors during the year ended December 31, 2024.

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<sup>(3)</sup> Includes $23 for the issuance of Class I OP Units corresponding to the restricted share grants by the Company to its independent directors during the period from June 12, 2023 (date of initial capitalization) through December 31, 2023.

In determining whether the Company has a controlling financial interest in the Operating Partnership, the Company considered whether the Operating Partnership is a variable interest entity and whether the Company is the primary beneficiary. Even though the Company has the power to direct the most significant activities impacting the economic performance of the Operating Partnership, the Company lacks the obligation to absorb losses or the right to receive benefits of the Operating Partnership that could potentially be significant to the Operating Partnership. As such, the Company's investment in the Operating Partnership is accounted for using the equity method of accounting. Management evaluates reconsideration events as they occur. Reconsideration events include, among other criteria, changes in the capital balances of the Operating Partnership.

As of both December 31, 2025 and 2024, the Operating Partnership owned 30 medical outpatient properties totaling 746,601 square feet (unaudited), four self-storage properties totaling 250,755 square feet (unaudited) and one student housing property with 406 student housing beds (unaudited). The properties owned as of both December 31, 2025 and 2024 are located in 12 states. The Operating Partnership has no employees.

The Company's investment in the Operating Partnership as of December 31, 2025 was as follows:

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| | | |
|:---|:---|:---|
|  |  | **Carrying Amount** |
|  | **Ownership Percentage** <sup>(1)</sup> | **December 31, 2025** <sup>(2)</sup> |
| Class T OP Units | 2.9% | $3587 |
| Class D OP Units | 0.4% | 472 |
| Class I OP Units | 5.8% | 6863 |
| Class X-1 OP Units | 0.1% | 99 |
| Total | 9.2% | $11021 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Represents OP Units held by the Company as a percentage of total OP Units outstanding at the Operating Partnership. As of December 31, 2025, the Operating Partnership had issued Class A OP Units, Class T OP Units, Class D OP Units, Class I OP Units and Class X-1 OP Units, and 97.6% of the Class T OP Units, 100.0% of the Class D OP Units, 79.1% of the Class I OP Units and 100.0% of the Class X-1 OP Units were held by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)Excludes $1,022 of net basis difference. The basis difference originated from the difference between the contributions the Company made for its ownership interest in the Operating Partnership, which were based on fair value, and the book value of the Company's share of the underlying total partners' capital of the Operating Partnership. The Company amortizes/accretes the basis difference on a straight-line basis consistent with the lives of the underlying assets. The net amortization of the basis difference was $11 for the year ended December 31, 2025 and is included within loss from equity method investment in Operating Partnership in the accompanying statements of operations and comprehensive loss.

The Company's investment in the Operating Partnership as of December 31, 2024 was as follows:

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| | | |
|:---|:---|:---|
|  |  | **Carrying Amount** |
|  | **Ownership Percentage** <sup>(1)</sup> | **December 31, 2024** <sup>(2)</sup> |
| Class T OP Units | 0.4% | $469 |
| Class D OP Units | 0.0% | 50 |
| Class I OP Units | 3.3% | 4159 |
| Total | 3.7% | $4678 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Represents OP Units held by the Company as a percentage of total OP Units outstanding at the Operating Partnership. As of December 31, 2024, the Operating Partnership had issued Class A OP Units, Class T OP Units, Class D OP Units and Class I OP Units, and 82.9% of the Class T OP Units, 100% of the Class D OP Units and 67.5% of the Class I OP Units were held by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)Excludes $98 of net basis difference. The basis difference originated from the difference between the contributions the Company made for its ownership interest in the Operating Partnership, which were based on fair value, and the book value of the Company's share of the underlying total partners' capital of the Operating Partnership. The Company amortizes/accretes the basis difference on a straight-line basis consistent with the lives of the underlying assets. The net accretion of the basis difference was $5 for the year ended December 31, 2024 and is included within loss from equity method investment in Operating Partnership in the accompanying statements of operations and comprehensive loss.

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Profits and losses of the Operating Partnership are allocated to its unitholders in proportion to their ownership of the OP Units. The Company's share of the Operating Partnership's loss for the years ended December 31, 2025 and 2024 and from August 21, 2023, which is the date of the Company's initial contribution to the Operating Partnership, through December 31, 2023 was as follows:

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Period Ended** |
|  | **2025** | **2024** | **December 31, 2023** |
| IPC Alternative Real Estate Operating Partnership, LP | $(769) | $(287) | (16) |

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The amounts reflected in the following tables reflect the financial information of the Operating Partnership.

The following table provides the summarized balance sheet of the Operating Partnership as of December 31, 2025 and 2024:

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| | | |
|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2024** |
| Total assets | $431720 | $452955 |
| Total liabilities | $317506 | $320238 |
| Total partners' capital | $114214 | $132717 |

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The following table provides the summarized income statement of the Operating Partnership for the years ended December 31, 2025, 2024 and 2023:

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** | **2023** |
| Total revenues | $34504 | $33650 | $30021 |
| Net loss | $(11199) | $(11711) | $(7324) |

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**NOTE 4 – EQUITY**

As of December 31, 2025, the Company is authorized to issue a total of 2,200,000,000 shares of capital stock. Of the total shares of stock authorized, 2,100,000,000 shares are classified as common stock with a par value of $0.01 per share, 400,000,000 of which are classified as Class T shares, 400,000,000 of which are classified as Class S shares, 400,000,000 of which are classified as Class D shares, 400,000,000 of which are classified as Class I shares, 200,000,000 of which are classified as Class X-1 shares, 200,000,000 of which are classified as Class X-2 shares and 100,000,000 of which are classified as Class A shares, and 100,000,000 shares are classified as preferred stock with a par value of $0.01 per share.

On June 12, 2023, the Company was capitalized with a $200 investment by IREIC, as the sponsor, in exchange for 200 shares of the Company's common stock. On August 10, 2023, the Company filed Articles of Amendment and Restatement with the State Department of Taxation and Assessments of Maryland amending and restating its charter and converting each share of its issued and outstanding common stock to one issued and outstanding share of Class I common stock. On August 22, 2023, the Company effected a stock split in the form of a stock dividend of 39 shares for each of its issued and outstanding shares of common stock resulting in 8,000 Class I shares issued and outstanding.

On December 1, 2023, the Company had satisfied the minimum offering requirement in all states, except the State of Pennsylvania, in the Public Offering and authorized the release of proceeds from escrow, resulting in the release of net proceeds of approximately $2,500 to the Company as payment for such shares.

The Company is not offering Class A shares in the Offerings, and the Company had no Class A shares outstanding as of December 31, 2025. However, pursuant to the Operating Partnership's partnership agreement, after holding OP Units for at least two years (or such shorter period as consented to by the Company), OP Unit holders have the right to require the Operating Partnership to redeem all or a portion of such OP Units for, at the Company's discretion, cash or common stock. If the Company were to issue shares in exchange for Class A OP Units, the Company would expect to issue Class A shares with economic features that mirror those of Class A OP Units, including class-specific allocations for the management fee to the Company's Advisor and the performance participation allocation to IPC REIT Special Limited Partner, LP (the "Special Limited Partner"). See *Note 6 – "Transactions with Related Parties"* for further information.

Class I shares, Class X-1 shares and Class X-2 shares in the Private Offering are only available through distribution participants selected by Inland Securities Corporation (the "Dealer Manager") as being eligible based on the amount of offering proceeds anticipated to be raised through such distribution participants, as well as other factors, in the Dealer Manager's discretion. Distribution participants that are initially eligible only to sell Class I or Class X-1 shares in the Private Offering, may become eligible to sell Class X-1 and/or Class X-2 shares in the Private Offering if the gross proceeds in the Private Offering raised by such distribution participants reach the target

------

specified by the Dealer Manager. The Company may also offer investors who have purchased Class I shares in the Public Offering and have held such shares for at least one year the option to exchange such shares for Class X-1 or Class X-2 shares at an exchange rate based on the NAV per share of each class involved in the exchange as of the exchange date if such investor's financial intermediary has reached the requisite gross proceeds raised threshold in the Private Offering as specified by the Dealer Manager. All Class I shares sold in the Private Offering will be exchanged for Class X-1 or Class X-2 shares at an exchange rate based on the NAV per share of each class involved in the exchange as of the exchange date regardless of hold period if the gross proceeds in the Private Offering raised by the applicable distribution participant reach the target specified by the Dealer Manager. Similarly, Class X-1 shares sold in the Private Offering will be exchanged for Class X-2 shares at an exchange rate based on the NAV per share of each class as of the exchange date if the gross proceeds in the Private Offering raised by the applicable distribution participant reach the target specified by the Dealer Manager.

**Distribution Reinvestment Plan**

The Company has adopted a distribution reinvestment plan (as amended, the "DRP") whereby stockholders who elect to participate in the DRP or who are automatically enrolled in the DRP pursuant to the terms of a subscription for shares of common stock will have their cash distributions automatically reinvested in additional shares of the Company's common stock. Stockholders that do not participate in the DRP will automatically receive their distributions in cash. The purchase price for shares purchased under the DRP will be equal to the transaction price for such shares at the time the distribution is payable, which will generally be equal to the Company's prior month's NAV per share for that share class. Stockholders will not pay upfront selling commissions or dealer manager fees when purchasing shares under the DRP; however, all outstanding Class T, Class S and Class D shares, including those purchased under the DRP, will be subject to ongoing distribution fees. The distribution fees with respect to shares of the Company's Class T shares, Class S shares and Class D shares are calculated based on the Company's NAV for those shares and may reduce the NAV or, alternatively, the distributions payable with respect to shares of each such class, including shares issued in respect of distributions on such shares under the DRP.

There were $143 and $8 of distributions reinvested through the DRP during the years ended December 31, 2025 and 2024, respectively. There were no distributions reinvested through the DRP during the period from June 12, 2023 (date of initial capitalization) through December 31, 2023

**Share Repurchase Plan**

The Company has adopted a share repurchase plan (as amended, the "SRP"), whereby on a monthly basis, stockholders may request that the Company repurchase all or any portion of their shares. The Company may choose to repurchase all, some or none of the shares that have been requested to be repurchased at the end of any particular month, in its discretion, subject to any limitations in the SRP. The total amount of aggregate repurchases of Class T, Class S, Class D, Class I, Class X-1 and Class X-2 shares will be limited to 2% of the aggregate NAV per month and 5% of the aggregate NAV per calendar quarter. Shares would be repurchased at a price equal to the transaction price on the applicable repurchase date, subject to any early repurchase deduction. Shares that have not been outstanding for at least one year would be repurchased at 95% of the transaction price. In the event that the Company, in its sole discretion, elects to issue Class A shares to holders of OP Units seeking redemption, the Company expects to amend the SRP to address the repurchase of Class A shares on the same terms that are applicable to the Class T, Class S, Class D, Class I, Class X-1 and Class X-2 shares. Due to the illiquid nature of investments in real estate, the Company may not have sufficient liquid resources to fund repurchase requests and has established limitations on the amount of funds the Company may use for repurchases during any calendar month and quarter. Further, the board of directors of the Company may modify or suspend the SRP if in its reasonable judgment it deems such action to be in the Company's best interest.

There were $182 repurchases through the SRP during the year ended December 31, 2025. There were no repurchases through the SRP during the year ended December 31, 2024 or during the period from June 12, 2023 (date of initial capitalization) through December 31, 2023.

**Share Activity for Common Stock and Preferred Stock**

The following tables detail the change in the Company's outstanding shares of all classes of common and preferred stock:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **For the year ended December 31, 2025** | **Preferred Stock** | **Common Stock<br>Class T** | **Common Stock<br>Class S** | **Common Stock<br>Class D** | **Common Stock<br>Class I** | **Common Stock <br>Class X-1** | **Common Stock <br>Class X-2** | **Common Stock<br>Class A** |
| Beginning balance |  | 21175 |  | 2266 | 190266 |  |  |  |
| Issuance of shares |  | 152790 |  | 21701 | 158321 | 4298 |  |  |
| Distribution reinvestment |  | 2063 |  | 524 | 3474 |  |  |  |
| Issuance of restricted shares (Note 7) |  |  |  |  | 3548 |  |  |  |
| Shares repurchased |  |  |  |  | (7850) |  |  |  |
| Ending balance |  | 176028 |  | 24491 | 347759 | 4298 |  |  |

---

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---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **For the year ended December 31, 2024** | **Preferred Stock** | **Common Stock<br>Class T** | **Common Stock<br>Class S** | **Common Stock<br>Class D** | **Common Stock<br>Class I** | **Common Stock<br>Class A** |
| Beginning balance |  |  |  |  | 108569 |  |
| Issuance of shares |  | 21154 |  | 2266 | 75639 |  |
| Distribution reinvestment |  | 21 |  |  | 336 |  |
| Issuance of restricted shares (Note 7) |  |  |  |  | 5722 |  |
| Ending balance |  | 21175 |  | 2266 | 190266 |  |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **For the period from June 12, 2023 (date of initial <br>capitalization) through December 31, 2023** | **Preferred Stock** | **Common Stock** | **Common Stock<br>Class T** | **Common Stock<br>Class S** | **Common Stock<br>Class D** | **Common Stock<br>Class I** | **Common Stock<br>Class A** |
| Beginning balance |  |  |  |  |  |  |  |
| Issuance of shares |  | 200 |  |  |  | 99634 |  |
| Conversion of shares |  | (200) |  |  |  | 200 |  |
| Stock split |  |  |  |  |  | 7800 |  |
| Issuance of restricted shares (Note 7) |  |  |  |  |  | 935 |  |
| Ending balance |  |  |  |  |  | 108569 |  |

---

**Distributions**

The table below presents the aggregate gross and net distributions declared per share for each applicable class of common stock during the year ended December 31, 2025. The gross distribution was reduced each month for Class T shares and Class D shares of the Company's common stock for applicable class-specific distribution fees to arrive at a lower net distribution amount paid to such class. For a description of the distribution fees applicable to Class D, Class S and Class T shares of the Company's common stock, please see "Note 6 - Transactions with Related Parties" below. As of December 31, 2025, the Company had not issued any shares of Class S or Class X-2 common stock. The table excludes distributions for any month for a class of shares of common stock when there were no shares of that class outstanding on the applicable record date.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Class T Shares** | **Class D Shares** | **Class I Shares** | **Class X-1 Shares** |
| Aggregate gross distributions declared per share | $1.2500 | $1.2500 | $1.2500 | $0.1042 |
| Distribution fee per share | 0.2008 | 0.0592 | N/A | N/A |
| Net distributions declared per share | $1.0492 | $1.1908 | $1.2500 | $0.1042 |

---

The table below presents the aggregate gross and net distributions declared per share for each applicable class of common stock during the year ended December 31, 2024. The gross distribution was reduced each month for Class T shares and Class D shares of the Company's common stock for applicable class-specific distribution fees to arrive at a lower net distribution amount paid to such class. As of December 31, 2024, the Company had not issued any shares of Class S common stock. The table excludes distributions for any month for a class of shares of common stock when there were no shares of that class outstanding on the applicable record date.

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| | | | |
|:---|:---|:---|:---|
|  | **Class T Shares** | **Class D Shares** | **Class I Shares** |
| Aggregate distributions declared per share | $0.7080 | $0.0885 | $1.0620 |
| Distribution fee per share | 0.1388 | 0.0051 | N/A |
| Net distributions declared per share | $0.5692 | $0.0834 | $1.0620 |

---

The table below presents the aggregate distributions declared per share for each applicable class of common stock during the period from June 12, 2023 (date of initial capitalization) through December 31, 2023. As of December 31, 2023, the Company had not issued any shares of Class D, Class S or Class T common stock. The table excludes distributions for any month for a class of shares of common stock when there were no shares of that class outstanding on the applicable record date.

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| | |
|:---|:---|
|  | **Class I Shares** |
| Aggregate distributions declared per share | $0.4425 |

---

For federal income tax purposes, REIT distributions may consist of ordinary dividend income, qualified dividend income, non-taxable return of capital, capital gains or a combination thereof. Distributions to the extent of the Company's current and accumulated earnings and profits for federal income tax purposes are taxable to the recipient as either ordinary income or, if so declared by the Company, qualified dividend income or capital gains dividends. Distributions in excess of these earnings and profits (calculated for income tax

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purposes) constitute a non-taxable return of capital rather than ordinary dividend income or a capital gain divided and reduce the recipient's tax basis in the shares to the extent thereof. Distributions in excess of earnings and profits that reduce a recipient's tax basis in the shares have the effect of deferring taxation of the amount of the distribution until the sale of the stockholder's shares. If the recipient's tax basis is reduced to zero, distributions in excess of the aforementioned earnings and profits (calculated for income tax purposes) constitute taxable gain.

The following table outlines the tax character of distributions on shares of the Company's common stock paid in 2025 and 2024 as a percentage of total distributions:

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| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Ordinary income |  |  |
| Capital gain |  |  |
| Return of capital | 100% | 100% |

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**NOTE 5 – EARNINGS PER SHARE**

Basic earnings per share ("EPS") is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period (the "common shares"). Diluted EPS is computed by dividing net income by the common shares plus common share equivalents ("Diluted EPS"). The Company's common share equivalents are unvested restricted shares. The Company excludes antidilutive restricted shares from the calculation of weighted-average shares for Diluted EPS. As a result of a net loss for both the years ended December 31, 2025 and 2024 and the period from June 12, 2023 (date of initial capitalization) through December 31, 2023, no additional shares related to restricted shares were included in the computation of Diluted EPS.

**NOTE 6 – TRANSACTIONS WITH RELATED PARTIES**

Pursuant to the Advisory Agreement between the Company, the Operating Partnership and the Advisor, the Advisor is responsible for sourcing, evaluating and monitoring the Company's and the Operating Partnership's investment opportunities and making decisions related to the acquisition, management, financing and disposition of the Company's and the Operating Partnership's assets, in accordance with the Company's investment objectives, guidelines, policies and limitations, subject to oversight by the Company's board of directors.

The Company or the Operating Partnership pay all of their costs and expenses directly or reimburse the Advisor or its affiliates for costs and expenses of the Advisor and its affiliates incurred on behalf of the Company. In addition, the Operating Partnership will reimburse the Company for all administrative expenses incurred by the Company on behalf of the Operating Partnership.

Certain affiliates of the Company, including the Advisor, will receive fees and compensation in connection with the Offerings and ongoing management of the assets of the Company and the Operating Partnership. As compensation for its services provided pursuant to the Advisory Agreement, the Company or the Operating Partnership pays the Advisor a management fee equal to (i) 1.25% of aggregate NAV of the Operating Partnership attributable to outstanding Class T OP Units, Class S OP Units, Class D OP Units and Class I OP Units of the Operating Partnership, (ii) 1.00% of the aggregate NAV of the Operating Partnership attributable to outstanding Class X-1 OP Units, (iii) 0.75% of the aggregate NAV of the Operating Partnership attributable to outstanding Class X-2 OP Units and (iv) 0.50% of the aggregate NAV of the Operating Partnership attributable to outstanding Class A OP Units, in each case per annum payable monthly in arrears. The management fee may be paid, at the Advisor's election, in cash, Class I shares of the Company or Class I OP Units of the Operating Partnership.

The Special Limited Partner holds a performance participation interest in the Operating Partnership that entitles the Special Limited Partner to receive an allocation of "Total Return," "Class X-1 Total Return" and "Class A Total Return."

"Total Return" is defined as distributions paid or accrued on OP Units (excluding Class X-1, Class X-2 and Class A OP Units) plus the change in the NAV of such OP Units (excluding Class X-1, Class X-2 and Class A OP Units), adjusted for subscriptions and repurchases. Under the Fourth Amended and Restated Limited Partnership Agreement of the Operating Partnership, dated August 28, 2025 (as may be amended or restated from time to time, the "Amended and Restated Limited Partnership Agreement"), the annual Total Return will be allocated solely to the Special Limited Partner only after the Class T OP Unit, Class S OP Unit, Class D OP Unit and Class I OP Unit holders have received a total return of 5% (after recouping any loss carryforward amount) and such allocation will continue until the allocation between the Special Limited Partner and all other such OP Unit holders is equal to 12.5% and 87.5%, respectively. Thereafter, the Special Limited Partner will receive an allocation of 12.5% of the annual Total Return.

"Class X-1 Total Return" is defined as distributions paid or accrued on Class X-1 OP Units plus the change in NAV of such Class X-1 OP Units, adjusted for subscriptions and repurchases. Under the Amended and Restated Limited Partnership

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Agreement, the annual Class X-1 Total Return will be allocated solely to the Special Limited Partner only after the Class X-1 OP Unit holders have received a total return of 5% (after recouping any loss carryforward amount) and such allocation will continue until the allocation between the Special Limited Partner and all other such Class X-1 OP Unit holders is equal to 10.0% and 90.0%, respectively. Thereafter, the Special Limited Partner will receive an allocation of 10.0% of the annual Class X-1 Total Return.

"Class A Total Return" is defined as distributions paid or accrued on Class A OP Units plus the change in the NAV of such Class A OP Units, adjusted for subscriptions and repurchases. Under the Amended and Restated Limited Partnership Agreement, the annual Class A Total Return will be allocated solely to the Special Limited Partner only after the Class A OP Unit holders have received a total return of 5% (after recouping any loss carryforward amount) and such allocation will continue until the allocation between the Special Limited Partner and all other such Class A OP Unit holders is equal to 12.5% and 87.5%, respectively. Thereafter, the Special Limited Partner will receive an allocation of 12.5% of the annual Class A Total Return.

The performance participation allocations are subject to a loss carryforward which initially equaled zero and is cumulatively increased by the absolute value of any negative annual Total Return, Class X-1 Total Return or Class A Total Return (as applicable) and decreased by any positive annual Total Return, Class X-1 Total Return or Class A Total Return (as applicable), provided that the loss carryforward amount shall at no time be less than zero and provided further that the calculation of the loss carryforward amount will exclude the Total Return, Class X-1 Total Return or Class A Total Return (as applicable) related to any OP Units redeemed during the year, which are subject to the performance participation allocation upon redemption. Such allocations to the Special Limited Partner will accrue monthly and will be paid annually in cash or Class I OP Units at the election of the Special Limited Partner. The performance participation allocations are a class-specific accrual. The Special Limited Partner is not entitled to a performance participation allocation with respect to Class X-2 OP Units.

The Company and the Operating Partnership may retain certain of the Advisor's affiliates, from time to time, for services relating to the Company's and the Operating Partnership's investments or their operations, which may include accounting and audit services, account management services, corporate secretarial services, data management services, directorship services, information technology services, finance/budget services, human resources, judicial processes, legal services, operational services, risk management services, tax services, treasury services, loan management services, construction management services, property management services, leasing services, loan origination services, debt servicing, brokerage services, transaction support services (which may consist of assembling relevant information with respect to investment acquisitions and dispositions, conducting financial and market analyses, coordinating closing and post-closing procedures, coordinating of design and development works, coordinating with brokers, lawyers, accountants and other advisors, assisting with due diligence, site visits and other services), transaction consulting services and other similar operational matters. Any fees paid to the Advisor's affiliates for any such services will not reduce the management fee payable to the Advisor or the performance participation allocations.

The Dealer Manager serves as the dealer manager for the Offerings. The Dealer Manager is a registered broker-dealer affiliated with the Advisor. The Company entered into an agreement dated September 28, 2023 (the "Dealer Manager Agreement") with the Dealer Manager in connection with the Public Offering and dated August 28, 2025 in connection with the Private Offering. The Company's obligations under the Dealer Manager Agreement to pay the distribution fees with respect to the Class T, Class S and Class D shares distributed in the Public Offering will survive until such shares are no longer outstanding (including such shares that have been converted into Class I shares).

In connection with the Public Offering only, the Dealer Manager is entitled to receive upfront selling commissions of up to 3.0%, and upfront dealer manager fees of 0.5%, of the transaction price of each Class T share sold in the primary offering; however such amounts may vary at certain participating broker-dealers provided that the sum will not exceed 3.5% of the transaction price. The Dealer Manager is entitled to receive upfront selling commissions of up to 3.5% of the transaction price of each Class S share sold in the primary offering. The Dealer Manager may be entitled to receive upfront selling commissions of up to 1.5% of the transaction price of each Class D share sold in the primary offering. The Dealer Manager anticipates that all or a portion of the upfront selling commissions and dealer manager fees will be retained by, or reallowed (paid) to, participating broker-dealers. No upfront selling commissions or dealer manager fees are paid with respect to purchases of Class I shares or shares of any class sold pursuant to the DRP. The Dealer Manager will also receive selling commissions over time as distribution fees of 0.85%, 0.85% and 0.25% per annum of the aggregate NAV of the Company's outstanding Class T, Class S and Class D shares, respectively. The Company will cease paying the distribution fee with respect to any Class T share, Class S share or Class D share sold in the primary offering at the end of the month in which the total upfront selling commissions, dealer manager fees and distribution fees paid with respect to such share would equal or exceed, in the aggregate, 8.75% (or a lower limit as set forth in the applicable agreement between the Dealer Manager and a participating broker-dealer at the time such shares were issued) of the gross proceeds from the sale of such shares and purchased in a primary offering (i.e., an offering other than a distribution reinvestment plan). The Company will accrue the cost of the distribution fee as an offering cost at the time each Class T, Class S and Class D share is sold during the primary offering. There will not be a distribution fee with respect to Class I shares. No fees or other compensation will be paid to the Dealer Manager with respect to purchases of Class I shares, Class X-1 shares or Class X-2

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shares. The Dealer Manager will reallow (pay) all or a portion of the distribution fees to participating broker-dealers and servicing broker-dealers, and will waive distribution fees to the Company to the extent a broker-dealer is not eligible to receive them.

No fees or other compensation (other than the customary reimbursement of expenses and indemnification) are payable to the Dealer Manager in connection with the Private Offering.

As of December 31, 2025 and 2024, $250 and $32 of distribution fees payable to the Dealer Manager and the corresponding receivable from the Operating Partnership have been reflected as due to related party and receivable from Operating Partnership, respectively, on the accompanying balance sheets.

**Related Party Share Ownership**

As of both December 31, 2025 and 2024, IREIC and its affiliates held 107,634 Class I shares in the Company.

**NOTE 7 – EQUITY-BASED COMPENSATION**

The table below summarizes total stock grants made at each grant date as of December 31, 2025.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Grant Date** | **Class of common stock granted** | **Total number of shares granted** | **Grant Date Fair Value Per Share** | **Total Fair Value of Grant** | **Vesting Date** |
| 10/2/2023 | Class I | 935 | $24.89 | $23 | 10/2/2024 |
| 3/19/2024 | Class I | 2387 | $25.01 | $60 | 3/19/2025 |
| 8/1/2024 | Class I | 3335 | $24.89 | $83 | 8/1/2025 |
| 8/1/2025 | Class I | 3548 | $23.39 | $83 | 8/1/2026 |

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Under the DCP, restricted shares generally vest over a one-year period from the date of the grant, subject to the specific terms of the grant. Restricted shares are included in common stock outstanding on the date of grant. Compensation expense, which is equal to the grant-date value of the restricted shares, is amortized by the Operating Partnership over the vesting period representing the requisite service period. The total fair value at the vesting date for restricted shares that vested during the years ended December 31, 2025 and 2024 was $136 and $22, respectively. There were no restricted shares that vested during the period from June 12, 2023 (date of initial capitalization) through December 31, 2023.

A summary of the status of the restricted shares granted under the DCP is presented below:

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| | |
|:---|:---|
|  | **Restricted<br>Shares** |
| Outstanding at June 12, 2023 |  |
| Granted (at grant date fair value of $24.89 per share) | 935 |
| Vested |  |
| Outstanding at December 31, 2023 | 935 |
| Granted (at weighted average grant date fair value of $24.94 per share) | 5722 |
| Vested | (935) |
| Outstanding at December 31, 2024 | 5722 |
| Granted (at weighted average grant date fair value of $23.39 per share) | 3548 |
| Vested | (5722) |
| Outstanding at December 31, 2025 | 3548 |

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**NOTE 8 – COMMITMENTS AND CONTINGENCIES**

The Company may be subject, from time to time, to various legal proceedings and claims that arise in the ordinary course of business. As of December 31, 2025 and 2024, the Company was not subject to any material litigation or aware of any pending or threatened material litigation.

**NOTE 9 – SUBSEQUENT EVENTS**

In connection with the preparation of its financial statements, the Company has evaluated events that occurred through the issuance of these financial statements to determine whether any of these events required disclosure in the financial statements.

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***Share Issuances in the Public Offering***

Subsequent to December 31, 2025, the Company issued and sold in the Public Offering (i) 11,886 shares of Class T common stock and 26,090 shares of Class I common stock in the primary offering for total proceeds of $888 and (ii) 1,176 shares of Class T common stock, 220 shares of Class D common stock and 1,534 shares of Class I common stock pursuant to the DRP for a total value of $68.

***Share Issuances in the Private Offering***

Subsequent to December 31, 2025, the Company issued and sold in the Private Offering 6,471 shares of Class X-1 common stock for total proceeds of $150.

***Mortgage Loans – Operating Partnership***

On January 26, 2026, the Operating Partnership amended its loan agreement with BMO Bank N.A., a national banking association (as successor to BMO Harris Bank N.A.), as administrative agent and lender. For further information on the amendment, refer to Note 14 – "Subsequent Events" which is included in the Operating Partnership's December 31, 2025 Notes to Consolidated Financial Statements included in Part IV Item 15 in this Annual Report on Form 10-K.

***Distributions***

On January 29, 2026, the Company announced that the board of directors authorized a distribution to stockholders of record as of January 31, 2026, that the Company paid on or about February 4, 2026, for each class of its common stock in the amount per share set forth below:

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| | | | |
|:---|:---|:---|:---|
|  | **Gross<br>Distribution** | **Distribution Fee** | **Net<br>Distribution** |
| Class T Common Stock | $0.1042 | $0.0167 | $0.0875 |
| Class D Common Stock | $0.1042 | $0.0049 | $0.0993 |
| Class I Common Stock | $0.1042 | N/A | $0.1042 |
| Class X-1 Common Stock | $0.1042 | N/A | $0.1042 |

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On February 26, 2026, the Company announced that the board of directors authorized a distribution to stockholders of record as of February 28, 2026, that the Company paid on or about March 4, 2026, for each class of its common stock in the amount per share set forth below:

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| | | | |
|:---|:---|:---|:---|
|  | **Gross<br>Distribution** | **Distribution Fee** | **Net<br>Distribution** |
| Class T Common Stock | $0.1042 | $0.0151 | $0.0891 |
| Class D Common Stock | $0.1042 | $0.0045 | $0.0997 |
| Class I Common Stock | $0.1042 | N/A | $0.1042 |
| Class X-1 Common Stock | $0.1042 | N/A | $0.1042 |

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**Financial Statements of the Operating Partnership**

We account for the units acquired in the Operating Partnership as an equity method investment during any period our investment in the Operating Partnership is not considered significant to the Operating Partnership and will consolidate the Operating Partnership at such time our investment in the Operating Partnership is considered significant to the Operating Partnership (based on generally accepted accounting principles), and thereafter present the results of operations on a consolidated basis. We expect to invest our capital and all our proceeds from the Offerings in the Operating Partnership and hold no other assets other than OP Units. We therefore expect to eventually consolidate the Operating Partnership. As such, we have included audited consolidated financial statements of the Operating Partnership as of December 31, 2025 and 2024 and for the years ended December 31, 2025, 2024 and 2023, as we believe these financial statements would be meaningful to investors, and subsequent invested capital will be significant to us.

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**Report of Independent Registered Public Accounting Firm**

To the General Partner and unitholders of IPC Alternative Real Estate Operating Partnership, LP

***Opinion on the Financial Statements***

We have audited the accompanying consolidated balance sheets of IPC Alternative Real Estate Operating Partnership, LP (formerly known as IPC Alternative Assets Operating Partnership, LP) and its subsidiaries (the "Company") as of December 31, 2025 and 2024, and the related consolidated statements of operations and comprehensive loss, of partners' capital and of cash flows for each of the three years in the period ended December 31, 2025, including the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America.

***Basis for Opinion***

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB and in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

Chicago, Illinois

March 18, 2026

We have served as the Company's auditor since 2022.

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**IPC ALTERNATIVE REAL ESTATE OPERATING PARTNERSHIP, LP**

**(FORMERLY KNOWN AS IPC ALTERNATIVE ASSETS OPERATING PARTNERSHIP, LP)**

**CONSOLIDATED BALANCE SHEETS**

**(**Dollar amounts in thousands)

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| | | |
|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2024** |
| **<u>ASSETS</u>** |  |  |
| **Assets:** |  |  |
| Investment properties held and used: |  |  |
| &nbsp;&nbsp;Land | $56953 | $56953 |
| &nbsp;&nbsp;Building and other improvements | 381726 | 381450 |
| &nbsp;&nbsp;Total | 438679 | 438403 |
| &nbsp;&nbsp;Less: accumulated depreciation | (55596) | (41542) |
| Net investment properties held and used | 383083 | 396861 |
| Cash and cash equivalents | 8753 | 7825 |
| Restricted cash | 413 | 349 |
| Accounts and rent receivable | 5462 | 5030 |
| Acquired lease intangible assets, net | 26121 | 30394 |
| Finance lease right-of-use asset, net | 1995 | 2047 |
| Operating lease right-of-use assets, net | 3334 | 3371 |
| Other assets | 2559 | 7078 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $431720 | $452955 |
| **<u>LIABILITIES AND PARTNERS' CAPITAL</u>** |  |  |
| **Liabilities:** |  |  |
| Mortgage loans payable, net | $270872 | $269859 |
| Credit facility payable (Note 10) | 8000 | 10000 |
| Accounts payable and accrued expenses | 3005 | 2543 |
| Finance lease liability | 2890 | 2850 |
| Operating lease liability | 1762 | 1746 |
| Distributions payable | 624 | 510 |
| Redemptions payable | 459 | 1665 |
| Acquired lease intangible liabilities, net | 27316 | 29029 |
| Due to related parties (Note 10) | 505 | 251 |
| Other liabilities | 2073 | 1785 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 317506 | 320238 |
| Commitments and contingencies (Note 9) |  |  |
| **Partners' Capital:** |  |  |
| General Partner |  |  |
| Limited Partners | 112109 | 126805 |
| Accumulated other comprehensive income | 2105 | 5912 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total partners' capital | 114214 | 132717 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and partners' capital | $431720 | $452955 |

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See accompanying notes to consolidated financial statements.

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**IPC ALTERNATIVE REAL ESTATE OPERATING PARTNERSHIP, LP**

**(FORMERLY KNOWN AS IPC ALTERNATIVE ASSETS OPERATING PARTNERSHIP, LP)**

**CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS**

(Dollar amounts in thousands)

For the years ended December 31, 2025, 2024 and 2023

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| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2024** | **2023** |
| **Revenues:** |  |  |  |
| Rental revenue | $34165 | $33406 | $29913 |
| Other property revenue | 339 | 244 | 108 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 34504 | 33650 | 30021 |
| **Expenses:** |  |  |  |
| Property operating expenses | 5620 | 5112 | 3724 |
| Real estate tax expense | 1824 | 1485 | 1380 |
| General and administrative expenses | 4163 | 4419 | 2286 |
| Advisor management fee (Note 10) | 787 | 759 | 900 |
| Depreciation and amortization | 17978 | 19219 | 17516 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total expenses | 30372 | 30994 | 25806 |
| **Other Income (Expense):** |  |  |  |
| Interest expense | (15335) | (14577) | (11577) |
| Interest and other income | 4 | 210 | 38 |
| Net loss | $(11199) | $(11711) | $(7324) |
| Comprehensive income (loss): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(11199) | $(11711) | $(7324) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain on derivatives | 177 | 3620 | 2199 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclassification adjustment for amounts included in net loss | (3984) | (6366) | (6601) |
| Comprehensive loss | $(15006) | $(14457) | $(11726) |

---

See accompanying notes to consolidated financial statements.

------

**IPC ALTERNATIVE REAL ESTATE OPERATING PARTNERSHIP, LP**

**(FORMERLY KNOWN AS IPC ALTERNATIVE ASSETS OPERATING PARTNERSHIP, LP)**

**CONSOLIDATED STATEMENTS OF PARTNERS' CAPITAL**

(Dollar amounts in thousands)

For the years ended December 31, 2025, 2024 and 2023

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Consolidated Statements of Partners' Capital** | **General Partner's Capital** | **Limited Partners' Capital** | **Accumulated<br>Other Comprehensive<br>Income** | **Total<br>Partners' Capital** |
| Balance at December 31, 2022 | $— | $165855 | $13060 | $178915 |
| Contributions |  | 2710 |  | 2710 |
| Redemptions of OP Units |  | (1623) |  | (1623) |
| Distributions |  | (9097) |  | (9097) |
| Equity-based compensation |  | 6 |  | 6 |
| Offering costs |  | (3818) |  | (3818) |
| Unrealized gain on derivatives |  |  | 2199 | 2199 |
| Reclassification adjustment for amounts <br> included in net loss |  |  | (6601) | (6601) |
| Net loss |  | (7324) |  | (7324) |
| Balance at December 31, 2023 |  | 146709 | 8658 | 155367 |
| Contributions |  | 4815 |  | 4815 |
| Redemptions of OP Units |  | (6242) |  | (6242) |
| Distributions |  | (6188) |  | (6188) |
| Equity-based compensation |  | 102 |  | 102 |
| Offering costs |  | (680) |  | (680) |
| Unrealized gain on derivatives |  |  | 3620 | 3620 |
| Reclassification adjustment for amounts <br> included in net loss |  |  | (6366) | (6366) |
| Net loss |  | (11711) |  | (11711) |
| Balance at December 31, 2024 |  | 126805 | 5912 | 132717 |
| Contributions |  | 8128 |  | 8128 |
| Redemptions of OP Units |  | (3100) |  | (3100) |
| Distributions |  | (7360) |  | (7360) |
| Equity-based compensation |  | 93 |  | 93 |
| Offering costs |  | (1258) |  | (1258) |
| Unrealized gain on derivatives |  |  | 177 | 177 |
| Reclassification adjustment for amounts <br> included in net loss |  |  | (3984) | (3984) |
| Net loss |  | (11199) |  | (11199) |
| Balance at December 31, 2025 | $— | $112109 | $2105 | $114214 |

---

See accompanying notes to consolidated financial statements.

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**IPC ALTERNATIVE REAL ESTATE OPERATING PARTNERSHIP, LP**

**(FORMERLY KNOWN AS IPC ALTERNATIVE ASSETS OPERATING PARTNERSHIP, LP)**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(**Dollar amounts in thousands)

For the years ended December 31, 2025, 2024 and 2023

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| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2024** | **2023** |
| Cash flows from operating activities: |  |  |  |
| Net loss | $(11199) | $(11711) | $(7324) |
| Adjustments to reconcile net loss to net cash provided by operating <br> activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 17978 | 19219 | 17516 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt issuance costs and premium/discount | 1691 | 1708 | 1665 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquired above- and below-market leases, net | (1364) | (1389) | (1389) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of equity-based compensation | 93 | 102 | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of finance lease right-of-use asset | 52 | 54 | 55 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of operating lease right-of-use assets | 37 | 38 | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized gain on termination of interest rate swaps |  | (185) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Straight-line income | (563) | (964) | (1293) |
| Changes in assets and liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts and rent receivable | 131 | 32 | 104 |
| &nbsp;&nbsp;&nbsp;&nbsp;Due from related parties |  | 166 | (166) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets | (34) | (157) | (388) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 502 | (405) | 569 |
| &nbsp;&nbsp;&nbsp;&nbsp;Due to related parties | 45 | (122) | (280) |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liability | 16 | 15 | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | 1043 | 2088 | 1219 |
| Net cash flows provided by operating activities | 8428 | 8489 | 10351 |
| Cash flows from investing activities: |  |  |  |
| Cash used to purchase investment properties |  | (22642) |  |
| Capital expenditures and tenant improvements | (295) | (718) | (1007) |
| Other investing activities |  | 25 | (45) |
| Net cash flows used in investing activities | (295) | (23335) | (1052) |
| Cash flows from financing activities: |  |  |  |
| Contributions | 7985 | 2412 | 2710 |
| Proceeds from mortgage loans | 61 | 34122 |  |
| Payment of mortgage loans |  | (17735) | (262) |
| Proceeds from credit facility |  | 19000 |  |
| Payment of credit facility | (2000) | (9000) |  |
| Redemptions of OP Units | (4306) | (4782) | (1418) |
| Payment of offering costs | (1039) | (644) | (3467) |
| Distributions paid | (7103) | (6196) | (9590) |
| Payment of debt issuance costs | (739) | (1307) |  |
| Cash paid for interest rate caps |  |  | (965) |
| Acquired interest rate swaps |  | (1004) |  |
| Early termination of interest rate swaps |  | 1189 |  |
| Net cash flows (used in) provided by financing activities | (7141) | 16055 | (12992) |
| Net increase (decrease) in cash, cash equivalents and restricted cash | 992 | 1209 | (3693) |
| Cash, cash equivalents and restricted cash, at beginning of the period | 8174 | 6965 | 10658 |
| Cash, cash equivalents and restricted cash, at end of the period | $9166 | $8174 | $6965 |

---

See accompanying notes to consolidated financial statements.

------

**IPC ALTERNATIVE REAL ESTATE OPERATING PARTNERSHIP, LP**

**(FORMERLY KNOWN AS IPC ALTERNATIVE ASSETS OPERATING PARTNERSHIP, LP)**

**CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)**

**(**Dollar amounts in thousands)

For the years ended December 31, 2025, 2024 and 2023

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| | | | |
|:---|:---|:---|:---|
| **Supplemental disclosure of cash flow information:** | **2025** | **2024** | **2023** |
| Cash paid for interest | $12717 | $10816 | $8931 |
| **Supplemental schedule of non-cash investing and financing <br> activities:** |  |  |  |
| Distributions payable | $624 | $510 | $518 |
| Distributions reinvested | $143 | $— | $— |
| Redemptions payable | $459 | $1665 | $205 |
| Accrued capital expenditures | $43 | $62 | $— |
| Issuance of Class I OP Units for restricted share grants (Note 11) | $83 | $143 | $— |
| In conjunction with the purchase of investment properties, the Operating <br> Partnership acquired assets and assumed liabilities as follows: |  |  |  |
| &nbsp;&nbsp;Land | $— | $9885 | $— |
| &nbsp;&nbsp;Building and improvements |  | 31006 |  |
| &nbsp;&nbsp;Acquired in-place lease intangibles |  | 1934 |  |
| &nbsp;&nbsp;Assumed mortgage loans |  | (17634) |  |
| &nbsp;&nbsp;Discount on assumed mortgage loan |  |  |  |
| &nbsp;&nbsp;Other assumed liabilities, net |  | (145) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total consideration to purchase investment properties |  | 25046 |  |
| &nbsp;&nbsp;Issuance of Class I OP Units as consideration for the acquisition of real estate |  | (2294) |  |
| &nbsp;&nbsp;Issuance of Class T OP Units as consideration for the acquisition of real estate |  | (110) |  |
| Cash used to purchase investment properties | $— | $22642 | $— |

---

See accompanying notes to consolidated financial statements.

------

**IPC ALTERNATIVE REAL ESTATE OPERATING PARTNERSHIP, LP**

**(FORMERLY KNOWN AS IPC ALTERNATIVE ASSETS OPERATING PARTNERSHIP, LP)**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

(Dollar amounts in thousands)

**NOTE 1 – ORGANIZATION**

IPC Alternative Real Estate Operating Partnership, LP (formerly known as IPC Alternative Assets Operating Partnership, LP) (the "Operating Partnership"), a Delaware limited partnership, was formed on June 21, 2021 and commenced operations on September 2, 2021. On June 12, 2023, the Operating Partnership changed its name from IPC Alternative Assets Operating Partnership, LP to IPC Alternative Real Estate Operating Partnership, LP. IPC Alternative Real Estate Income Trust, Inc. (the "General Partner"), formerly known as Inland Private Capital Alternative Assets Fund, LLC, is the sole general partner of the Operating Partnership. The General Partner converted to a Maryland corporation effective June 12, 2023. The General Partner elected to be treated as a real estate investment trust ("REIT") for U.S. federal income tax purposes commencing with the taxable year ended December 31, 2024. Until that time, the General Partner was subject to taxation at regular corporate rates under the Internal Revenue Code of 1986, as amended (the "Code"). As of December 31, 2025, the Operating Partnership owned 30 medical outpatient properties totaling 746,601 square feet (unaudited), four self-storage properties totaling 250,755 square feet (unaudited) and one student housing property with 406 student housing beds (unaudited). The properties are located in 12 states. The Operating Partnership has no employees.

The Operating Partnership is externally managed by IPC Alternative Real Estate Advisor, LLC, a Delaware limited liability company ("the Advisor"), an affiliate of Inland Real Estate Investment Corporation, a Delaware corporation ("IREIC"), pursuant to an amended and restated advisory agreement dated and effective as of August 28, 2025, among the Operating Partnership, the General Partner and IPC Alternative Real Estate Advisor, LLC (as may be amended or restated from time to time, the "Advisory Agreement"). Pursuant to the Advisory Agreement, the Advisor is responsible for sourcing, evaluating and monitoring the General Partner's and the Operating Partnership's investment opportunities and making decisions related to the acquisition, management, financing and disposition of the General Partner's and Operating Partnership's assets, in accordance with the General Partner's investment objectives, guidelines, policies and limitations, subject to oversight by the General Partner's board of directors.

On September 28, 2023, the General Partner's registration statement (the "Registration Statement") on Form S-11 to register up to $1,250,000 in shares of common stock under a blind pool offering was declared effective by the Securities and Exchange Commission (the "SEC"). On August 28, 2025, the General Partner commenced a private offering for up to $500,000 in certain shares of common stock. The General Partner contributes the proceeds from the offerings to the Operating Partnership. As of December 31, 2025, the Operating Partnership had 6,026,368 Operating Partnership Units ("OP Units") outstanding, comprised of 180,409 Class T OP Units, 24,491 Class D OP Units, 5,377,699 Class A OP Units, 439,471 Class I OP Units and 4,298 Class X-1 OP Units. The General Partner held 176,028 of the Class T OP Units, 24,491 of the Class D OP Units, 347,759 of the Class I OP Units and 4,298 of the Class X-1 OP Units, representing a total 9.2% interest in the Operating Partnership as of December 31, 2025. See *Note 6 – "Equity"* and *Note 10 – "Transactions with Related Parties"* for further information. The Operating Partnership and the General Partner anticipate that the contribution of offering proceeds from the General Partner to the Operating Partnership will ultimately result in consolidation of the Operating Partnership by the General Partner.

The Operating Partnership has invested and intends to invest, through anticipated follow-on investment activity, in stabilized, income-generating commercial real estate across alternative property types, with a non-exclusive focus on self-storage facilities, student housing properties and healthcare-related properties. Healthcare-related assets may include medical outpatient buildings, ambulatory surgery centers, senior living communities and life science and laboratory facilities. The Operating Partnership may also invest in value-add or other development projects in these asset classes, potentially through a variety of ownership structures including but not limited to direct ownership, joint ventures, co-investment opportunities, preferred equity positions and others.

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**NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**Basis of Presentation**

The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Information with respect to square footage and occupancy is unaudited.

**Acquisitions**

Upon acquisition of real estate investment properties, the total purchase price of each property that is accounted for as an asset acquisition is allocated based on the relative fair value of the tangible and intangible assets acquired and liabilities assumed based on Level 3 inputs, such as comparable sales values, discount rates, capitalization rates, revenue and expense growth rates and lease-up assumptions. The acquisition date is the date on which control of the real estate investment property is obtained and transaction costs are capitalized.

Assets and liabilities acquired typically include land, building and site improvements and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases and the value of in-place leases. The portion of the purchase price allocated to above-market lease values is included in acquired lease intangible assets, net and is amortized on a straight-line basis over the term of the related lease as a reduction to rental revenue. The portion allocated to below-market lease values is included in acquired intangible liabilities, net and is amortized as an increase to rental revenue over the term of the lease including any bargain renewal periods included in the measurement. The portion of the purchase price allocated to acquired in-place lease value is included in acquired lease intangible assets, net and is amortized on a straight-line basis over the acquired leases' weighted average remaining term. The amortization of acquired in-place lease value is included in depreciation and amortization in the consolidated statements of operations and comprehensive loss. Subsequent to the acquisition, if a tenant modifies its lease, the unamortized portion of identified intangibles are assessed to determine whether their useful lives need to be amended (generally accelerated).

The fair value of the tangible assets consisting of land and buildings is determined by valuing the property as if it were vacant, and the "as-if-vacant" value is then allocated to land and buildings. If debt is assumed in an acquisition, the fair value of assumed debt is calculated based on the net present value of the mortgage payments using interest rates for debt with similar terms and maturities. Differences between the fair value and the stated value is recorded as a discount or premium and amortized over the remaining term using the effective interest method.

**Impairment of Long-Lived Assets**

Carrying values of long-lived assets are assessed whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. Recoverability is assessed by comparison of the carrying amount of the asset to the estimated future undiscounted cash flows based on current market conditions, as well as intent with respect to holding or disposing of the asset. If the recoverability assessment indicates that the carrying value of the long-lived asset is not recoverable on an undiscounted cash flow basis, an impairment charge is recognized for the amount by which the carrying value exceeds the current estimated fair value. Fair value is determined through various valuation techniques, including discounted cash flow models and quoted market values.

Projected cash flows in an impairment assessment are based on management's intent and judgment. Long-lived assets expected to be held long-term are assessed on estimated future cash flows during the estimated hold period which may include estimates for operating income and termination value. Long-lived assets expected to be sold are assessed on the asset's fair value less estimated cost to sell.

The use of projected future cash flows is based on assumptions that are consistent with the Operating Partnership's estimates of future expectations and the strategic plan used to manage the underlying business. However, assumptions and estimates about future cash flows are complex and subjective, including comparable sales values, discount rates, capitalization rates, and market rental rates. Changes in economic and operating conditions that occur subsequent to the impairment analysis could impact these assumptions and result in future impairment charges of long-lived assets.

For the years ended December 31, 2025, 2024 and 2023, there were no impairment charges.

**Cash and Cash Equivalents**

The Operating Partnership considers all demand deposits, money market accounts and all short-term investments with a maturity of three months or less, at the date of purchase, to be cash equivalents. The account balance may exceed the Federal Deposit Insurance

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Corporation ("FDIC") insurance coverage and, as a result, there could be a concentration of credit risk related to amounts on deposit in excess of FDIC insurance coverage. The Operating Partnership believes that the risk will not be significant, as the Operating Partnership seeks to mitigate this risk by depositing funds only with major financial institutions.

**Restricted Cash**

Amounts included in restricted cash represent those required to be set aside by lenders for real estate taxes, insurance, capital expenditures and tenant improvements on the Operating Partnership's existing properties. These amounts also include post close escrows for tenant improvements, leasing commissions, master lease, tenant security deposits, general repairs and maintenance, and are classified as restricted cash on the Operating Partnership's consolidated balance sheets.

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on the Operating Partnership's consolidated balance sheets to such amounts shown on the Operating Partnership's consolidated statements of cash flows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| Cash and cash equivalents | $8753 | $7825 |
| Restricted cash | 413 | 349 |
| Total cash, cash equivalents, and restricted cash | $9166 | $8174 |

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**Accounts and Rents Receivable**

Consideration of the collectability of receivables includes certain factors that require judgment, including amounts outstanding and payment history of the tenant. Billed and accrued charges are considered in the evaluation of the collectability of a tenant's receivable balance. For tenants where collectability of accounts receivable is not reasonably assured, revenue is recorded on a cash basis.

**Investment Properties**

Real estate properties held and used are recorded at cost less accumulated depreciation. Real estate properties held for sale are recorded at the lesser of their carrying value or fair value less selling costs. Improvement and betterment costs are capitalized, and ordinary repairs and maintenance are expensed as incurred.

Real estate properties are classified as held for sale when the management concludes that a sale is likely. Criteria that may be considered in this determination include obtaining a signed purchase and sale agreement, the completion or waiving of due diligence by the seller, and the receipt of non-refundable earnest money from the seller.

Cost capitalization and the estimate of useful lives require judgment and include significant estimates that can and do change. Depreciation expense is computed using the straight-line method. Estimated useful lives of assets, by class of asset, are generally as follows:

---

| | |
|:---|:---|
| Building and other improvements | 30 years |
| Site improvements | 5-15 years |
| Furniture, fixtures and equipment | 5-15 years |
| Tenant improvements | Shorter of the life of the asset or the term of the related lease |
| Leasing fees | Term of the related lease |

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Depreciation expense was $14,054, $13,685 and $12,763 for the years ended December 31, 2025, 2024 and 2023, respectively.

**Debt Issuance Costs**

Debt issuance costs are amortized as a component of interest expense. These costs are reported as a direct deduction to the Operating Partnership's outstanding mortgage loans payable.

**Offering Costs**

Offering costs for the Public Offering include, but are not limited to, legal, accounting, printing and mailing fees, filing fees and certain personnel costs of the Advisor and affiliates of the Operating Partnership attributable to the preparation of the Registration Statement and registration and qualification of the General Partner's common stock under federal and state laws.

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**Fair Value Measurements**

The Operating Partnership has estimated fair value using available market information and valuation methodologies the Operating Partnership believes to be appropriate for these purposes. Considerable judgment and a high degree of subjectivity are involved in developing these estimates and, accordingly, they are not necessarily indicative of amounts that would be realized upon disposition.

The Operating Partnership defines fair value based on the price that it believes would be received upon sale of an asset or the exit price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Operating Partnership establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value. The fair value hierarchy consists of three broad levels, which are described below:

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| | |
|:---|:---|
| Level 1 — | Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. |
| Level 2 — | Observable inputs, other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. |
| Level 3 — | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. |

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The Operating Partnership's cash equivalents, accounts receivable and payables and accrued expenses all approximate fair value due to the short term nature of these financial instruments. The Operating Partnership's financial instruments measured on a recurring basis include derivative interest rate instruments. See *Note 12 – "Fair Value Measurements"* for further information.

**Derivatives**

The Operating Partnership uses derivative instruments, such as interest rate swaps and interest rate caps, primarily to manage exposure to interest rate risks inherent in variable rate debt. The Operating Partnership may also enter into interest rate floor contracts, futures or forward contracts and options. The Operating Partnership's interest rate swaps involve the receipt of variable-rate amounts from a counterparty in exchange for the Operating Partnership making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The Operating Partnership's interest rate caps involve the receipt of variable-rate amounts from a counterparty to the extent the cap index rate exceeds the strike rate specified in the respective interest rate cap agreement.

The Operating Partnership records each derivative instrument either as an asset or a liability measured at its fair value at each reporting period. The Operating Partnership does not use derivatives for trading or speculative purposes and currently does not have any derivatives that are not designated as hedging instruments under the accounting requirements for derivatives and hedging. When hedge accounting is applied, the change in the fair value of derivatives designated and that qualify as cash flow hedges is (i) recorded in accumulated other comprehensive income (loss) and (ii) subsequently reclassified into earnings in the period in which the hedged forecasted transactions affect earnings. If specific hedge accounting criteria are not met, changes in the Operating Partnership's derivative instruments' fair value are recognized as an adjustment to net income.

The Operating Partnership has elected to apply the hedge accounting expedients in FASB ASU 2020-04, Reference Rate Reform (Topic 848) related to probability and the assessments of the effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation.

The Operating Partnership has elected to not offset derivative assets and liabilities in its consolidated balance sheets, even when an enforceable master netting agreement is in place that provides the Operating Partnership, in the event of counterparty default, the right to offset a counterparty's rights and obligations. Derivative instruments are recorded as a component of either other assets or other liabilities on the Operating Partnership's consolidated balance sheets at fair value.

**Revenue Recognition**

Rental revenue is recognized based on a number of factors, including the initial determination that the contract is or contains a lease. Generally, all of the Operating Partnership's contracts are, or contain leases, and therefore revenue is recognized on the lease commencement date when the leased asset has been made available for use by the lessee. At the commencement of a new lease, including new leases that arise from amendments, the Operating Partnership assesses the terms and conditions of the lease to determine the appropriate lease classification under ASC 842. Generally, leases with tenants are accounted for as operating leases.

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The determination of who is the owner of the tenant improvements determines the nature of the leased asset. If the Operating Partnership is the owner of the tenant improvements, then the tenant improvements are capitalized and depreciated over the lesser of the life of the lease or the useful life of the tenant improvement. If the Operating Partnership concludes it is not the owner of the tenant improvements (the lessee is the owner), then the tenant improvement allowances funded by the Operating Partnership under the lease are treated as lease incentives which reduce revenue recognized over the term of the lease. The Operating Partnership considers a number of different factors to evaluate whether it or the lessee is the owner of the tenant improvements for accounting purposes.

Rental revenue is recognized on a straight-line basis over the term of each lease. The difference between rental revenue earned on a straight-line basis and the cash rent due under the provisions of the lease agreements is recorded as deferred rent receivable and is included as a component of accounts and rent receivable on the consolidated balance sheets.

Reimbursements from tenants for recoverable expenses such as real estate tax, utilities and other operating expenses are accrued as revenue in the period the applicable expenses are incurred. Certain assumptions and judgments are made by management in estimating the reimbursements at the end of each reporting period. Management does not expect the actual results to materially differ from the estimated reimbursement. Management made the election for these reimbursements, which are non-lease components, to be combined with rental revenue.

Lease termination income is recorded if there is a signed termination agreement, all of the conditions of the agreement have been met and amounts due are considered collectible. Such termination fees are recognized on a straight-line basis over the remaining lease term in rental revenue.

As a lessor, the recognition of contingent rental revenue, such as percentage rent, is deferred until the specified target that triggered the contingent rental revenue is achieved.

**Ground Leases**

The Operating Partnership is the lessee under long-term ground leases classified as operating or financing leases. The Operating Partnership makes significant assumptions and judgments when determining the discount rate for the lease to calculate the present value of the lease payments. As the rate implicit in the lease is not readily determinable, the Operating Partnership estimates the incremental borrowing rate ("IBR") that it would need to pay to borrow, on a collateralized basis, in a similar economic environment, over a similar lease term. The Operating Partnership utilizes a market-based approach to estimate the IBR for each individual lease.

The present value of lease payments calculated using the IBR is recorded as a lease liability and a corresponding right-of-use asset. When an acquired property is subject to a ground lease, above- and below-market terms on such ground leases are recorded as a component of the right-of-use asset.

**Income Taxes**

The Operating Partnership is not subject to federal income taxes as it is treated as a flow-through entity for U.S. federal income tax purposes. The allocable share of the Operating Partnership's income and loss is reported on the Operating Partnership's partners' respective tax returns. Further, the Operating Partnership holds its interest in the investment properties through LLCs or similar entities. Generally, an LLC is treated as either a partnership or a disregarded entity for U.S. federal income tax purposes. As a result, LLCs are generally not subject to federal income taxes as the respective members/partners are taxed on their allocable share of the entity's taxable income. Therefore, no provision or liability for federal income taxes has been included in the accompanying consolidated financial statements.

The Operating Partnership may elect to treat certain of its corporate subsidiaries as taxable REIT subsidiaries ("TRSs"). In general, a TRS may perform additional services for the Operating Partnership's tenants and generally may engage in any real estate or non-real estate-related business. A TRS is subject to federal, state and local corporate income tax, as applicable. The Operating Partnership will account for applicable income taxes by utilizing the asset and liability method. As such, the Operating Partnership will record deferred tax assets and liabilities for the future tax consequences resulting from the difference between the carrying value of existing assets and liabilities and their respective tax basis. A valuation allowance for deferred tax assets will be provided if the Operating Partnership believes all or some portion of the deferred tax asset may not be realized. During the year ended December 31, 2023, the Operating Partnership did not conduct any operations through a TRS.

The Operating Partnership had no uncertain tax positions as of December 31, 2025, 2024 or 2023. The Operating Partnership had no interest or penalties relating to income taxes recognized on the consolidated statements of operations and comprehensive loss for the years ended December 31, 2025, 2024 or 2023. As of December 31, 2025, returns for the calendar years 2022, 2023 and 2024 remain subject to examination by U.S. and various state and local tax jurisdictions.

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**Equity-Based Compensation**

In accordance with the General Partner's Director Compensation Plan (as amended and restated, the "DCP"), restricted shares are issued by the General Partner to its independent directors and certain non-independent directors who are designated as participants by the board of directors as compensation. Because the compensation expense for the restricted shares is recognized at the Operating Partnership, the Operating Partnership issues an equivalent number of units to the General Partner. The Operating Partnership recognizes expense related to the fair value of equity-based compensation awards as an operating expense in its consolidated statement of operations and comprehensive loss. The Operating Partnership recognizes expense based on the fair value at the grant date on a straight-line basis over the vesting period representing the requisite service period. See *Note 11 – "Equity-Based Compensation"* for further information.

**Accounting Pronouncements Recently Adopted**

In December 2023, the Financial Accounting Standards Board (the "FASB") issued ASU 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures*. ASU 2023-09 improves the transparency of income tax disclosures related to rate reconciliation and income taxes. ASU 2023-09 became effective for annual periods that began after December 15, 2024. The amendments should be applied prospectively, however retrospective application was permitted. The Operating Partnership has adopted ASU 2023-09 and updated its disclosure in *Note 2 – "Summary of Significant Accounting Policies – Income Taxes"*. The adoption did not have any impact on the Operating Partnership's financial position, results of operations, or cash flows.

**Accounting Pronouncements Recently Issued but Not Yet Effective**

In November 2024, the FASB issued ASU 2024-03, *Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses*. Additionally, in January 2025, the FASB issued ASC 2025-01, *Clarifying the Effective Date,* which revised the effective date of ASU 2024-03 for interim periods. ASU 2024-03 requires disclosures in the notes to the financial statements on specified information about certain costs and expenses that are included on the face of the income statement for each interim and annual reporting period. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026 and interim periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted, and may be applied either prospectively or retrospectively. The Operating Partnership is currently evaluating the impact of ASU 2024-03 on the Operating Partnership's consolidated financial statements.

In November 2025, the FASB issued ASU 2025-09, *Derivatives and Hedging (Topic 815): Hedge Accounting Improvements*, which clarifies guidance for hedge accounting, including grouping forecasted transactions by similar risk, hedging choose-your-rate debt, expanding eligibility for nonfinancial components, eliminating certain net written option tests, and addressing dual hedges. ASU 2025-09 is effective for annual reporting periods beginning after December 15, 2026, and interim periods within those annual reporting periods, with early adoption permitted. The Operating Partnership is currently evaluating the impact of ASU 2025-09 on the Operating Partnership's consolidated financial statements.

In December 2025, the FASB issued ASU 2025-11, *Interim Reporting (Topic 270): Narrow-Scope Improvements*, which clarifies interim reporting guidance, defines applicability to entities presenting full GAAP interim financial statements, provides form and content requirements for condensed statements, and introduces a principle requiring disclosure of material events occurring after the prior annual period. ASU 2025-11 does not change existing disclosure requirements. ASU 2025-11 is effective for interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The Operating Partnership is currently evaluating the impact of ASU 2025-11 on the Operating Partnership's interim reporting.

**NOTE 3 – ACQUISITIONS**

***2025 Acquisitions***

The Operating Partnership did not acquire any properties during the year ended December 31, 2025.

***2024 Acquisitions***

On April 5, 2024, the Operating Partnership acquired four self-storage properties (the "Storage Properties") from an affiliate of IREIC, for a total purchase price of $43,869, including $17,634 of assumed loans (the "First Merchants Mortgage Loans") and corresponding swaps of $1,004 from First Merchants Bank. The purchase price was determined based on appraisal performed by an independent third party appraiser. See Note 5 – "Debt and Derivative Instruments" for further information on the First Merchants Mortgage Loans.

As part of the consideration, the Operating Partnership issued 4,381 Class T OP Units and 91,711 Class I OP Units. After holding the OP Units received in the acquisition for two years, the holders of such OP Units have the right to require the Operating Partnership to redeem all or a portion of the OP Units in exchange for shares of the General Partner's common stock or cash, as determined by the General Partner in its sole discretion.

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The following table provides further details of the properties acquired during the year ended December 31, 2024:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Date<br>Acquired** | **Property Name** | **Location** | **Property Type** | **Square Footage (unaudited)** | **Purchase<br>Price** |
| April 5, 2024 | Druid Hills Road | Decatur, GA | Self-Storage | 37650 | $5603 |
| April 5, 2024 | Cobb Parkway | Marietta, GA | Self-Storage | 59250 | 8220 |
| April 5, 2024 | Thorington Road | Montgomery, AL | Self-Storage | 41990 | 9461 |
| April 5, 2024 | Vaughn Road | Montgomery, AL | Self-Storage | 111865 | 19581 |
|  |  |  |  | 250755 | $42865 |

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The above acquisition was accounted for as an asset acquisition. For the year ended December 31, 2024, the Operating Partnership incurred $246 of total acquisition costs, which are capitalized in the accompanying consolidated balance sheet. These costs include third party due diligence costs such as appraisals, environmental studies and legal fees.

The following table presents certain additional information regarding the Operating Partnership's acquisition during the year ended December 31, 2024. The amounts recognized for major assets acquired and liabilities assumed as of the acquisition date are as follows:

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| | |
|:---|:---|
|  | **Year Ended<br>December 31, 2024** |
| Land | $9885 |
| Building and improvements | 31006 |
| Acquired in-place lease intangibles | 1934 |
| Assumed mortgage loans | (17634) |
| Other assumed liabilities, net | (145) |
| &nbsp;&nbsp;Total consideration to purchase investment properties | 25046 |
| Issuance of Class I OP Units as consideration for the acquisition of real estate | (2294) |
| Issuance of Class T OP Units as consideration for the acquisition of real estate | (110) |
| Cash used to purchase investment properties | $22642 |

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In connection with the acquisition of the Storage Properties, the General Partner and the Operating Partnership provided to those investors that elected to receive OP Units in connection with the transaction the opportunity to enter into a tax protection agreement. Pursuant to this agreement, the General Partner and the Operating Partnership agreed as follows: (a) during the five-year period starting on April 5, 2024, the Operating Partnership will not dispose of the storage properties in a taxable transaction, other than in certain enumerated situations and will indemnify such limited partners for taxes arising to them in the event of a breach of such agreement by the Operating Partnership; and (b) during the 10-year period starting on April 5, 2024, the Operating Partnership will provide such limited partners with opportunities to ensure that they are allocated sufficient liabilities (including, as applicable, through a guarantee by such holders of indebtedness of the Operating Partnership) to prevent gain from being recognized to them as a result of any deemed distributions that would otherwise arise from a decrease in their share of liabilities of the Operating Partnership. The Operating Partnership has not recorded a liability pursuant to the agreement, as it intends to hold these properties for the long term.

***2023 Acquisitions***

The Operating Partnership did not acquire any properties during the year ended December 31, 2023.

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**NOTE 4 – ACQUIRED INTANGIBLE ASSETS AND LIABILITIES**

The following table summarizes the Operating Partnership's identified intangible assets and liabilities as of December 31, 2025 and 2024:

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| | | |
|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2024** |
| Intangible assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquired in-place lease value | $44066 | $44066 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquired above-market lease value | 3204 | 3204 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated amortization | (21149) | (16876) |
| Acquired lease intangible assets, net | $26121 | $30394 |
| Intangible liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquired below-market lease value | $(34740) | $(34740) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated amortization | 7424 | 5711 |
| Acquired lease intangible liabilities, net | $(27316) | $(29029) |

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The portion of the purchase price allocated to acquired above-market lease value and acquired below-market lease value is amortized on a straight-line basis over the term of the related lease as an adjustment to rental revenue. For below-market lease values, the amortization period includes any renewal periods with below-market fixed rate renewals. The portion of the purchase price allocated to acquired in-place lease value is amortized on a straight-line basis over the acquired leases' weighted average remaining term.

The following table summarizes the Operating Partnership's ground lease intangibles as of December 31, 2025 and 2024:

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| | | |
|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2024** |
| Acquired below-market ground lease intangibles, operating leases | $1813 | $1813 |
| Accumulated amortization | (78) | (60) |
| Acquired below-market ground lease intangibles, net | $1735 | $1753 |
| Acquired above-market ground lease intangibles, finance lease | $(500) | $(500) |
| Accumulated amortization | 29 | 23 |
| Acquired above-market ground lease intangibles, net | $(471) | $(477) |

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Acquired below-market ground lease intangibles, net are included within operating lease right-of-use assets, net and acquired above-market ground lease intangibles, net are included within finance lease right-of-use asset, net in the consolidated balance sheets. The portion of the purchase price allocated to above- and below-market ground lease intangibles is amortized on a straight-line basis over the term of the related lease as an adjustment to property operating expenses.

Amortization pertaining to acquired in-place lease value, above-/below-market ground leases and, above-/below-market lease values is summarized below:

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| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2024** | **2023** |
| Amortization recorded as amortization expense: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquired in-place lease value | $3924 | $5534 | $4753 |
| Amortization recorded as a (reduction) increase to property operating <br> expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Above-market ground lease, finance lease | $(6) | $(6) | $(6) |
| &nbsp;&nbsp;&nbsp;&nbsp;Below-market ground leases, operating leases | 18 | 18 | 18 |
| Net property operating expense increase | $12 | $12 | $12 |
| Amortization recorded as a (reduction) increase to rental<br> revenue: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquired above-market leases | $349 | $324 | $324 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquired below-market leases | (1713) | (1713) | (1713) |
| Net rental revenue increase | $(1364) | $(1389) | $(1389) |

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Estimated amortization of the respective intangible lease assets and liabilities as of December 31, 2025 for each of the five succeeding years and thereafter is as follows:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Acquired<br>In-Place<br>Leases** | **Above-<br>Market<br>Leases** | **Below-<br>Market<br>Leases** | **Above- <br>Market Ground<br>Lease** | **Below- <br>Market Ground<br>Leases** |
| 2026 | $3465 | $314 | $(1713) | $(6) | $18 |
| 2027 | 3465 | 314 | (1713) | (6) | 18 |
| 2028 | 3362 | 312 | (1713) | (6) | 18 |
| 2029 | 3206 | 302 | (1713) | (6) | 18 |
| 2030 | 2849 | 257 | (1646) | (6) | 18 |
| Thereafter | 8001 | 274 | (18818) | (441) | 1645 |
| Total | $24348 | $1773 | $(27316) | $(471) | $1735 |

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**NOTE 5 – DEBT AND DERIVATIVE INSTRUMENTS**

As of December 31, 2025 and 2024, the Operating Partnership had the following mortgage loans payable:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
| **Type of Debt** | **Principal<br>Amount** | **Interest<br>Rate** | **Principal<br>Amount** | **Interest<br>Rate** |
| CONA Mortgage Loan (maturity date October 29, 2027) |  |  |  |  |
| &nbsp;&nbsp;Variable rate with swap agreements | $95000 | 4.99% | $26500 | 3.03% |
| &nbsp;&nbsp;Variable rate with cap agreements |  |  | 68439 | 4.10% |
| BMO Mortgage Loan (maturity date September 30, 2026) |  |  |  |  |
| &nbsp;&nbsp;Variable rate with swap agreements | 61500 | 2.97% | 61500 | 2.97% |
| &nbsp;&nbsp;Variable rate | 61155 | 5.97% |  |  |
| &nbsp;&nbsp;Variable rate with cap agreements |  |  | 61155 | 3.85% |
| Parkway UL Mortgage Loan (maturity date March 28, 2026) | 27759 | 5.80% | 27759 | 5.80% |
| Parkway Storage Mortgage Loan (maturity date April 25, 2026) | 28000 | 5.80% | 28000 | 5.80% |
| &nbsp;&nbsp;Total debt before discount and debt issuance costs including impact of interest rate swaps/caps | 273414 |  | 273353 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: Unamortized discount on assumed mortgage loan | (126) |  | (166) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: Unamortized debt issuance costs | (2416) |  | (3328) |  |
| Total mortgage loans payable, net | $270872 |  | $269859 |  |

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The Operating Partnership's indebtedness bore interest at a weighted average interest rate of 4.92% and 4.03% per annum as of December 31, 2025 and 2024, respectively, which includes the effects of interest rate swaps and interest rate caps. The Operating Partnership estimates the fair value of its total debt by discounting the future cash flows of each instrument at rates currently offered for similar debt instruments of comparable maturities by the Operating Partnership's lenders using Level 3 inputs. The carrying value of the Operating Partnership's debt excluding the discount on assumed mortgage loan and unamortized debt issuance costs was $273,414 and $273,353 as of December 31, 2025 and 2024, respectively, and its estimated fair value was $273,378 and $272,877 as of December 31, 2025 and 2024, respectively.

The discount on assumed mortgage loan is amortized over the remaining term of the underlying debt as a reduction to the interest expense.

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As of December 31, 2025, scheduled principal payments and maturities of the Operating Partnership's debt were as follows:

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| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **Scheduled Principal Payments and Maturities by Year:** | **Scheduled<br>Principal<br>Payments** | **Maturities of<br> Mortgage<br>Loans** | **Total** |
| 2026 | $— | $178414 | $178414 |
| 2027 |  | 95000 | 95000 |
| 2028 |  |  |  |
| 2029 |  |  |  |
| 2030 |  |  |  |
| Thereafter |  |  |  |
| Total | $— | $273414 | $273414 |

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**Mortgage Loans Payable**

*CONA Mortgage Loan*

On October 30, 2025, the Operating Partnership, through certain subsidiaries as borrowers (collectively, the "Borrower") entered into an amended and restated loan agreement (the "CONA Loan Agreement") with Capital One, National Association and Associated Bank, National Association, as lenders (collectively, the "CONA Lender") and Capital One, National Association as administrative agent, for an aggregate principal amount of $95,000 (the "CONA Mortgage Loan"). The CONA Loan Agreement amended and restated the prior loan agreement by and among the borrower, the CONA Lender and Capital One, National Association as administrative agent dated September 29, 2021, as amended by those certain amendments dated August 1, 2022 and October 31, 2023 (collectively, the "Prior CONA Loan Agreement").

The CONA Mortgage Loan is collateralized by all the respective real and personal property owned by the Operating Partnership under the CONA Loan Agreement.

As of December 31, 2025, the Operating Partnership had $95,000 outstanding under the CONA Mortgage Loan. Advances made under the CONA Mortgage Loan are interest only. Advances made under the CONA Mortgage Loan accrue interest at (i) the applicable one-month term secured overnight financing rate ("Term SOFR") plus (ii) 1.95%. The CONA Mortgage Loan matures on October 29, 2027, and the Operating Partnership has the option to extend the maturity date for three additional twelve month periods subject to the payment of certain fees and expenses and certain other conditions.

Inland Private Capital Corporation ("IPC") had guaranteed (1) any losses that the administrative agent and lenders may incur as a result of the occurrence of certain bad acts of the Operating Partnership and (2) the repayment of the CONA Mortgage Loan upon the occurrence of certain other significant events, including bankruptcy. Additionally, the Operating Partnership and IPC have agreed to indemnify the lenders against certain environmental liabilities. Pursuant to an amendment to the Prior CONA Loan Agreement, effective October 31, 2023, the CONA Mortgage Loan was amended to, among other things, (a) substitute IREIC, the General Partner's sponsor, as the guarantor of recourse obligations and to release IPC as guarantor for all guaranteed obligations from and after such date and (b) join IREIC as an additional indemnitor under the environmental indemnity agreement.

The CONA Mortgage Loan requires compliance with certain covenants, including a minimum project yield requirement and a guarantor's net worth requirement. It also contains customary default provisions including the failure to comply with the Operating Partnership's covenants and the failure to pay when amounts outstanding under the CONA Mortgage Loan become due. As of December 31, 2025, the Operating Partnership was in compliance with all financial covenants related to the CONA Mortgage Loan.

*BMO Mortgage Loan*

On September 30, 2021, the Operating Partnership entered into a loan agreement (the "BMO Loan Agreement") with BMO Harris Bank N.A. ("BMO"), individually and as administrative agent, and other lenders from time to time parties to the BMO Loan Agreement (the "BMO Mortgage Loan"). The BMO Loan Agreement was amended on January 26, 2026 (the "BMO Loan Amendment").

The BMO Mortgage Loan is collateralized by all the respective properties, rights, interests, and privileges from time to time subject to the liens granted to BMO for the benefit of the lenders, or any security trustee therefor, by the collateral documents.

As of December 31, 2025, the Operating Partnership had $122,655 outstanding under the BMO Mortgage Loan. Advances made under the BMO Mortgage Loan are interest only. Advances made under the BMO Mortgage Loan accrue interest at (i) the applicable Term SOFR plus (ii) 2.10%. The BMO Mortgage Loan matures on September 30, 2026, and the Operating Partnership has the option to extend the maturity date for two additional twelve month periods subject to the payment of an extension fee, certain costs and expenses and

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certain other conditions. The BMO Loan Amendment extended the maturity date of the BMO Mortgage Loan by 24 months from September 30, 2026 (subject to two one-year extensions) to September 30, 2028 and removed any further extension options.

IPC has guaranteed (1) any losses that the administrative agent and lenders may incur as a result of the occurrence of certain bad acts of the Operating Partnership and (2) the repayment of the BMO Mortgage Loan upon the occurrence of certain other significant events, including bankruptcy. Additionally, the Operating Partnership and IPC have agreed to indemnify the lenders against certain environmental liabilities.

The BMO Mortgage Loan requires compliance with certain covenants, including a minimum debt yield requirement, a distribution limitation, a limitation on the use of leverage and restrictions on indebtedness. It also contains customary default provisions including the failure to comply with the Operating Partnership's covenants and the failure to pay when amounts outstanding under the BMO Mortgage Loan become due. As of December 31, 2025, the Operating Partnership was in compliance with all financial covenants related to the BMO Mortgage Loan.

*Parkway UL Mortgage Loan*

On December 1, 2022, the Operating Partnership assumed the Parkway UL Mortgage Loan in the amount of $22,000, which was the original principal amount, from Parkway Bank and Trust Company ("Parkway") in connection with the acquisition of University Lofts. On March 28, 2024, the Operating Partnership entered into an amendment that increased the principal amount of the Parkway UL Mortgage Loan to $27,759.

As of December 31, 2025, the Operating Partnership had $27,759 outstanding under the Parkway UL Mortgage Loan. The Parkway UL Mortgage Loan bore interest at a fixed rate equal to 3.60% per annum until April 25, 2023 and at a fixed rate equal to 3.80% per annum thereafter. The Parkway UL Mortgage Loan required interest-only payments through April 26, 2023 and monthly payments of principal and interest thereafter. The initial maturity date of the Parkway UL Mortgage Loan was October 26, 2024. As extended pursuant to the amendment to the Parkway UL Mortgage Loan, the maturity date of the Parkway UL Mortgage Loan is March 28, 2026, and the Operating Partnership has the option to extend the maturity date for an additional three-year period subject to the payment of an extension fee, certain costs and expenses and certain other conditions. Pursuant to the amendment, the Parkway UL Mortgage Loan bears interest at a fixed rate equal to 5.80% per annum until March 28, 2026. Upon extension, the interest rate will be equal to the lesser of (a) 6.25% or (b) the 3-year U.S. Treasury Rate in effect on March 28, 2026 plus 2.00%. Beginning on April 28, 2024, the Parkway UL Mortgage Loan requires interest-only payments until the maturity date, at which point the outstanding principal and interest are due. The Operating Partnership is in discussions with Parkway to extend the Parkway UL Mortgage Loan.

The Parkway UL Mortgage Loan contains customary default provisions including the failure to pay when amounts outstanding under the Parkway UL Mortgage Loan become due. The Parkway UL Mortgage Loan is collateralized by the underlying property.

*First Merchants Mortgage Loans*

On April 5, 2024, the Operating Partnership assumed the First Merchants Mortgage Loans in the amount of $17,634 and the corresponding swaps from First Merchants Bank in connection with the acquisition of the Storage Properties. On April 26, 2024, the Operating Partnership used the proceeds of the Parkway Storage Mortgage Loan (defined below), to repay the assumed loans with First Merchants Bank. On April 26, 2024, the Operating Partnership also settled the corresponding swaps with First Merchants Bank.

*Parkway Storage Mortgage Loan*

On April 26, 2024, the Operating Partnership entered into a loan agreement with Parkway for an aggregate principal amount of $28,000 (the "Parkway Storage Mortgage Loan"). As of December 31, 2025, the Operating Partnership had $28,000 outstanding under the Parkway Storage Mortgage Loan. The Parkway Storage Mortgage Loan bears interest at a rate equal to 5.80% per annum. The Parkway Storage Mortgage Loan requires interest-only payments until the maturity date, at which point the outstanding principal and interest are due. The maturity date of the Parkway Storage Mortgage Loan is April 25, 2026, and the Operating Partnership has the option to extend the maturity date for an additional three-year period subject to the payment of an extension fee, certain costs and expenses and certain other conditions. Upon extension, the interest rate will be equal to the lesser of (a) 6.25% or (b) the 3-year U.S. Treasury Rate in effect on April 25, 2026 plus 2.00%. The Operating Partnership is in discussions with Parkway to extend the Parkway Storage Mortgage Loan.

The Parkway Storage Mortgage Loan contains customary default provisions including the failure to pay when amounts outstanding under the Parkway Storage Mortgage Loan become due. The Parkway Storage Mortgage Loan is collateralized by the Storage Properties.

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**Interest Rate Swap and Cap Agreements**

The Operating Partnership entered into interest rate swaps to fix a portion of its floating SOFR-based debt under variable rate loans to a fixed rate to manage its risk exposure to interest rate fluctuations. The Operating Partnership will generally match the maturity of the underlying variable rate debt with the maturity date on the interest rate swaps. See *Note 12 – "Fair Value Measurements"* for further information.

The Operating Partnership entered into interest rate caps to protect the Operating Partnership against adverse fluctuations in interest rates by reducing its exposure to variability in cash flows on a portion of the Operating Partnership's floating-rate debt. The Operating Partnership will generally match the maturity of the underlying variable rate debt with the maturity date on the interest rate caps. See *Note 12 – "Fair Value Measurements"* for further information.

All of the Operating Partnership's interest rate swap and cap contracts are accounted for as cash flow hedges for accounting purposes.

The following table summarizes the Operating Partnership's interest rate swap contracts outstanding as of December 31, 2025:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Date<br>Entered** | **Effective<br>Date** | **Maturity<br>Date** | **Receive Floating Rate Index (a)** | **Pay Fixed<br>Rate / Strike Price** | **Notional<br>Amount** | **Fair Value at<br>December 31,<br>2025<br>(b)** |
| **Assets** |  |  |  |  |  |  |  |
| *Interest rate swap agreements* |  |  |  |  |  |  |  |
| BMO Mortgage Loan swap | August 12, 2022 | August 1, 2022 | September 30, 2026 | 1-month Term SOFR | 0.87% | $61500 | 1188 |
| CONA Mortgage Loan swap | October 27, 2025 | November 3, 2025 | September 28, 2028 | 1-month Term SOFR | 3.04% | 95000 | 612 |
|  |  |  |  |  |  | $156500 | $1800 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)As of December 31, 2025, the 1-month Term SOFR was 3.69%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The fair value of interest rate swap agreements is included within other assets in the consolidated balance sheet.

The following table summarizes the Operating Partnership's interest rate swap and cap contracts outstanding as of December 31, 2024:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Date<br>Entered** | **Effective<br>Date** | **Maturity<br>Date** | **Receive Floating Rate Index (a)** | **Pay Fixed<br>Rate / Strike Price** | **Notional<br>Amount** | **Fair Value at<br>December 31,<br>2024<br>(b)** |
| **Assets** |  |  |  |  |  |  |  |
| *Interest rate swap agreements* |  |  |  |  |  |  |  |
| CONA Mortgage Loan swap | August 11, 2022 | August 1, 2022 | September 28, 2026 | 1-month Term SOFR | 0.93% | $26500 | $1388 |
| BMO Mortgage Loan swap | August 12, 2022 | August 1, 2022 | September 30, 2026 | 1-month Term SOFR | 0.87% | 61500 | 3301 |
| CONA Mortgage Loan swap | March 9, 2023 | January 2, 2025 | September 28, 2026 | 1-month Term SOFR | 3.48% | 26500 | 242 |
| *Interest rate cap agreements* |  |  |  |  |  |  |  |
| BMO Mortgage Loan cap | December 12, 2022 | December 1, 2022 | December 30, 2025 | 1-month Term SOFR | 1.75% | 61155 | 1418 |
| CONA Mortgage Loan cap | February 9, 2023 | February 1, 2023 | January 2, 2025 | 1-month Term SOFR | 2.00% | 68439 | 5 |
|  |  |  |  |  |  | $244094 | $6354 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)As of December 31, 2024, the 1-month Term SOFR was 4.33%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The fair value of interest rate swap agreements and interest rate cap agreements is included within other assets in the consolidated balance sheet.

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The table below presents the effect of the Operating Partnership's derivative financial instruments on the consolidated statements of operations and comprehensive loss for the years ended December 31, 2025, 2024 and 2023.

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| **Derivatives in Cash Flow Hedging Relationships:** | **2025** | **2024** | **2023** |
| Effective portion of derivatives | $177 | $3620 | $2199 |
| Reclassification adjustment for amounts included in net income or loss (effective portion) | $(3984) | $(6366) | $(6601) |

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The total amount of interest expense presented on the consolidated statements of operations and comprehensive loss was $15,335, $14,577 and $11,577 for the years ended December 31, 2025, 2024 and 2023, respectively. The net gain or loss reclassified into income from accumulated other comprehensive income is reported in interest expense on the consolidated statements of operations and comprehensive loss. The amount that is expected to be reclassified from accumulated other comprehensive income into income in the next 12 months is $2,181.

**NOTE 6 – EQUITY**

The Operating Partnership's capital includes general and limited partnership interests in the Operating Partnership referred to as General Partner's capital and Limited Partners' capital, respectively, in the accompanying consolidated statements of partners' capital. The General Partner and the Limited Partners are collectively referred to as Partners. Partnership interests in the Operating Partnership, other than the Special Limited Partner (as defined in Note 10) interest and General Partner interest, are currently divided into seven classes of units: (a) Class T OP Units; (b) Class S OP Units; (c) Class D OP Units; (d) Class I OP Units; (e) Class X-1 OP Units; (f) Class X-2 OP Units and (g) Class A OP Units. In general, the Class T OP Units, Class S OP Units, Class D OP Units, Class I OP Units, Class X-1 OP Units and Class X-2 OP Units issued to the General Partner are intended to correspond on a one-for-one basis with the General Partner's Class T shares, Class S shares, Class D shares, Class I shares, Class X-1 shares and Class X-2 shares. Similarly, Class A OP Units issued to the General Partner are intended to correspond on a one-for-one basis with the General Partner's Class A shares if the General Partner issues Class A shares in connection with a Class A OP Unit redemption request. When the General Partner receives proceeds from the sale of shares of its common stock, the General Partner contributes such proceeds to the Operating Partnership and receives OP Units that correspond to the classes of the shares sold in the offering. Additionally, the Operating Partnership may issue any of these classes of OP Units to its Limited Partners. See *Note 10 – "Transactions with Related Parties"* for further information on management fees and performance participation allocation for each of the classes of OP Units.

Effective July 31, 2023, in contemplation of the Registration Statement as discussed in Note 1, the Operating Partnership effected a unit split for each OP Unit resulting in 5,815,959 Class A OP Units outstanding.

As of December 31, 2025, there were 176,028 Class T OP Units, 24,491 Class D OP Units, 347,759 Class I OP Units and 4,298 Class X-1 OP Units issued to the General Partner. As of December 31, 2024, there were 21,175 Class T OP Units, 2,266 Class D OP Units and 190,266 Class I OP Units issued to the General Partner. As of both December 31, 2025 and 2024, there were no General Partner interests issued to the General Partner.

Pursuant to the Amended and Restated Limited Partnership Agreement, OP unitholders may request redemption of all or a portion of their units after holding those units for at least two years (or such shorter period as consented to by the General Partner in its sole discretion). The General Partner has discretion to accept or reject redemption requests and whether accepted redemptions will be redeemed for cash or shares in the General Partner.

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**Unit Activity**

The following tables detail the change in the Operating Partnership's units for the years ended December 31, 2025, 2024 and 2023:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Year ended December 31, 2025** | **General Partner Interests** | **Limited Partner Interests** | **Limited Partner Interests** | **Limited Partner Interests** | **Limited Partner Interests** | **Limited Partner Interests** |
|  |  | **Class A OP Units** | **Class T OP Units**<sup>(1)</sup> | **Class D OP Units**<sup>(1)</sup> | **Class I OP Units**<sup>(1)</sup> | **Class X-1 OP Units**<sup>(1)</sup> |
| Beginning balance |  | 5499623 | 25556 | 2266 | 281978 |  |
| Issuance of units |  |  | 154853 | 22225 | 161795 | 4298 |
| Issuance of units for restricted share grants (Note 11) |  |  |  |  | 3548 |  |
| Redemptions |  | (121924) |  |  | (7850) |  |
| Ending balance |  | 5377699 | 180409 | 24491 | 439471 | 4298 |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Year ended December 31, 2024** | **General Partner Interests** | **Limited Partner Interests** | **Limited Partner Interests** | **Limited Partner Interests** | **Limited Partner Interests** |
|  |  | **Class A OP Units** | **Class T OP Units**<sup>(2)</sup> | **Class D OP Units**<sup>(2)</sup> | **Class I OP Units**<sup>(2)</sup> |
| Beginning balance |  | 5751638 |  |  | 108569 |
| Issuance of units |  |  | 25556 | 2266 | 167687 |
| Issuance of units for restricted share grants (Note 11) |  |  |  |  | 5722 |
| Redemptions |  | (252015) |  |  |  |
| Ending balance |  | 5499623 | 25556 | 2266 | 281978 |

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| | | | |
|:---|:---|:---|:---|
| **Year ended December 31, 2023** | **General Partner Interests** | **Limited Partner Interests** | **Limited Partner Interests** |
|  |  | **Class A OP Units** | **Class I OP Units**<sup>(3)</sup> |
| Beginning balance |  | 373033 |  |
| Effect of unit split |  | 5442926 |  |
| Issuance of units |  |  | 107634 |
| Issuance of units for restricted share grants (Note 11) |  |  | 935 |
| Redemptions |  | (64321) |  |
| Ending balance |  | 5751638 | 108569 |

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<sup>(1)</sup> As of December 31, 2025, 97.6% of the Class T OP Units, 100.0% of the Class D OP Units, 79.1% of the Class I OP Units and 100.0% of the Class X-1 OP Units were held by the General Partner.

<sup>(2)</sup> As of December 31, 2024, 82.9% of the Class T OP Units, 100% of the Class D OP Units and 67.5% of the Class I OP Units were held by the General Partner.

<sup>(3)</sup> As of December 31, 2023, 100% of the Class I OP Units were held by the General Partner.

**NOTE 7 – DISTRIBUTIONS**

Partners are entitled, based on their respective partnership interests, to monthly cash distributions payable by the Operating Partnership. The General Partner, in its sole discretion, determines the timing and amount of any distributions to the Partners. Such cash flow, if available, will be distributed on a monthly basis.

The table below presents the distributions paid and accrued to Partners for the years ended December 31, 2025, 2024 and 2023.

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** | **2023** |
| Distributions paid | $7103 | $6196 | $9590 |
| Distributions accrued | $7360 | $6188 | $9097 |

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**NOTE 8 – LEASES**

***Rental Revenue as a Lessor***

The Operating Partnership leases its 30 medical outpatient properties, four self-storage properties and one student housing property under long-term and short-term operating leases. The remaining lease terms for the Operating Partnership's medical outpatient leases, as of December 31, 2025, range from 2.2 years to 12.2 years. The leases for self-storage units generally are on a month-to-month basis. The lease terms for the Operating Partnership's student housing leases generally approximate one year.

Medical outpatient leases require the tenant to pay fixed base rent paid monthly in advance, and to reimburse the Operating Partnership for the tenant's pro rata share of certain operating expenses including real estate taxes, special assessments, insurance, utilities, common area maintenance, management fees, and certain building repairs paid by the Operating Partnership and recoverable under the terms of the lease. Under these leases, the Operating Partnership pays all expenses and is reimbursed by the tenant for the tenant's pro rata share of recoverable expenses paid. Self-storage units are leased to individual tenants under lease agreements, which generally are on a month-to-month basis. Student housing properties are typically leased by the bed on an individual lease liability basis and require the tenant to pay fixed base rent paid monthly in advance, and to reimburse the Operating Partnership for certain costs, primarily the tenant's share of utilities expenses, incurred by the Operating Partnership. Under leases where all expenses are paid by the Operating Partnership, subject to reimbursement by the tenant, the expenses are included within property operating expenses. As per ASC 842, reimbursements for common area maintenance are considered non-lease components that are permitted to be combined with rental revenue. The combined lease component and reimbursements for insurance and taxes are reported as rental revenue on the consolidated statements of operations and comprehensive loss.

Certain other tenants are subject to net leases which provide that the tenant is responsible for fixed base rent as well as all costs and expenses associated with occupancy. Under net leases where all expenses are paid directly by the tenant rather than the landlord, such expenses are not included on the consolidated statements of operations and comprehensive loss.

Rental revenue related to the Operating Partnership's operating leases is comprised of the following:

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** | **2023** |
| Rental revenue - fixed payments | $29050 | $29231 | $25836 |
| Rental revenue - variable payments (a) | 3751 | 2786 | 2688 |
| Amortization of acquired above- and below-market leases, net | 1364 | 1389 | 1389 |
| Rental revenue | $34165 | $33406 | $29913 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Primarily includes tenant recovery income for real estate taxes, common area maintenance and insurance.

The table below presents future base rent payments, excluding variable lease payments, to be received under the Operating Partnership's operating leases as of December 31, 2025 for the years indicated, assuming no early terminations or expiring leases are renewed. Leases for the self-storage properties and the student housing property are generally 12 months or less and are therefore excluded from the table below.

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| | |
|:---|:---|
|  | **Lease<br>Payments** |
| 2026 | $20002 |
| 2027 | 20505 |
| 2028 | 20035 |
| 2029 | 19427 |
| 2030 | 17787 |
| Thereafter | 34814 |
| Total | $132570 |

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***Concentration of Credit Risk***

*Revenue Concentration*

The table below shows the Operating Partnership's revenue concentration from tenants as a percentage of the Operating Partnership's total revenues for the years ended December 31, 2025, 2024 and 2023:

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| **Tenant** | **2025** | **2024** | **2023** |
| Ironwood Physicians, P.C. | 16% | 16% | 18% |
| Memorial Hermann Health System | 11% | 11% | 12% |

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*Geographic Concentration*

As of both December 31, 2025 and 2024, Arizona, Texas and Connecticut represented approximately 27%, 26% and 15%, respectively, of the Operating Partnership's total rentable square feet of medical outpatient properties.

As of both December 31, 2025 and 2024, Alabama and Georgia represented approximately 61% and 39%, respectively, of the Operating Partnership's total rentable square feet of self-storage properties.

***Lease Expense as a Lessee***

The Operating Partnership is a lessee under three ground leases.

*Phoenix Property Ground Lease*

The Phoenix property ground lease, which commenced on July 7, 1993 and extends through July 6, 2092, was assumed as part of a property purchased by Arizona Healthcare DST ("Arizona DST") on June 6, 2018. When Arizona DST assumed the lease, Arizona DST considered the lease terms and lease classification and accounted for the ground lease as an operating lease with an established lease term and payment schedule. As of June 6, 2018, Arizona DST recorded an operating lease liability of $1,516 and an operating lease right-of-use asset of $2,168 on its balance sheet. The operating lease liability was based on the present value of the ground lease's future lease payments using an interest rate of 5.08% which the Arizona DST considered reasonable and within the range of the Arizona DST's incremental borrowing rate. The operating lease right-of-use asset included acquired below-market ground lease intangibles of $652.

On September 2, 2021, the date of the roll-up transaction whereby the Operating Partnership acquired 30 medical outpatient properties from eight separate programs sponsored by an affiliate of the General Partner's sponsor (the "Roll-up Transaction"), the Operating Partnership reconsidered the lease terms and lease classification and accounted for the ground lease as an operating lease with an established lease term and payment schedule. As of September 2, 2021, the Operating Partnership recorded an operating lease liability of $1,687 and an operating lease right-of-use asset of $2,395 on its consolidated balance sheet. The operating lease liability was based on the present value of the ground lease's future lease payments using an interest rate of 4.75% which the Operating Partnership considers reasonable and within the range of the Operating Partnership's incremental borrowing rate. The operating lease right-of-use asset included acquired below-market ground lease intangibles of $708.

The remaining lease term for the Phoenix property ground lease is 67 years as of December 31, 2025.

*Jordan Valley Medical Center Ground Lease*

The Jordan Valley Medical Center ground lease, which commenced on October 8, 2015 and extends through October 7, 2114 with three 15-year renewal options (which the Operating Partnership assumes will be exercised), was assumed as part of a property purchased by Healthcare Portfolio II DST ("Healthcare II DST") on January 23, 2017. When Healthcare II DST assumed the lease, Healthcare II DST considered the lease terms and lease classification and accounted for the ground lease as an operating lease. The entire rent for the ground lease has been paid before the lease was assumed. Therefore no lease liability has been recorded in the financial statements. As of January 23, 2017, Healthcare DST II recorded an operating lease right-of-use asset of $630, which represents the acquired below-market ground lease intangibles.

On September 2, 2021, the date of the Roll-up Transaction, the Operating Partnership reconsidered the lease terms and lease classification and recorded an operating lease right-of-use asset of $1,105, which represents the acquired below-market ground lease intangibles.

The remaining lease term, including extensions, for the Jordan Valley Medical Center ground lease is 134 years as of December 31, 2025.

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*Saint Elizabeth Medical Center Ground Lease*

The Saint Elizabeth Medical Center ground lease, which commenced on January 17, 2017 and extends through December 31, 2077 with two 15-year renewal options (which the Operating Partnership assumed will be exercised), was assumed as part of a property purchased by Healthcare Portfolio VII DST ("Healthcare VII DST") on December 20, 2018. When Healthcare VII DST assumed the lease, Healthcare VII DST considered the lease terms and lease classification and accounted for the ground lease as a finance lease with an established lease term and payment schedule. As of December 20, 2018, Healthcare VII DST recorded a finance lease liability of $2,554 and a finance lease right-of-use asset of $2,086 on its balance sheet. The finance lease liability was based on the present value of the ground lease's future lease payments using an interest rate of 5.21% which the Healthcare VII DST considered reasonable and within the range of the Healthcare VII DST's incremental borrowing rate. The finance lease right-of-use asset was recorded net of the acquired above-market ground lease intangibles of $468.

On September 2, 2021, the date of the Roll-up Transaction, the Operating Partnership reconsidered the lease terms and lease classification and accounted for the ground lease as a finance lease with an established lease term and payment schedule. As of September 2, 2021, the Operating Partnership recorded a finance lease liability of $2,730 and a finance lease right-of-use asset of $2,230 on its consolidated balance sheet. The finance lease liability was based on the present value of the ground lease's future lease payments using an interest rate of 5.06% which the Operating Partnership considers reasonable and within the range of the Operating Partnership's incremental borrowing rate. The finance lease right-of-use asset was recorded net of the acquired above-market ground lease intangibles of $500.

The remaining lease term, including extensions, for the Saint Elizabeth Medical Center ground lease is 82 years as of December 31, 2025.

For the years ended December 31, 2025, 2024 and 2023, total rent expense was $317, $317 and $318, respectively, recorded in property operating expenses on the consolidated statements of operations and comprehensive loss.

The table below shows the cash paid for amounts included in the measurement of lease liabilities for the years ended December 31, 2025, 2024 and 2023:

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** | **2023** |
| Operating cash flows - operating leases | $67 | $67 | $65 |
| Operating cash flows - finance leases | $105 | $105 | $105 |

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For the years ended December 31, 2025, 2024 and 2023, total finance lease cost was comprised as follows:

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** | **2023** |
| Amortization of finance lease right-of-use asset | $52 | $54 | $56 |
| Interest on finance lease liability | 145 | 143 | 141 |
| Total finance lease cost | $197 | $197 | $197 |

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The table below shows the Operating Partnership's finance lease right-of-use asset, net of amortization as of December 31, 2025 and 2024:

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| | | |
|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2024** |
| Finance lease right-of-use asset, gross | $2230 | $2230 |
| Accumulated amortization | (235) | (183) |
| Finance lease right-of-use asset, net of amortization | $1995 | $2047 |

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Lease payments for the ground leases as of December 31, 2025 for each of the five succeeding years and thereafter is as follows:

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| | | |
|:---|:---|:---|
|  | **Operating** | **Finance** |
| 2026 | $67 | $105 |
| 2027 | 67 | 121 |
| 2028 | 70 | 121 |
| 2029 | 73 | 121 |
| 2030 | 73 | 121 |
| Thereafter | 6611 | 16460 |
| Total undiscounted lease payments | $6961 | $17049 |
| Less: Amount representing interest | (5199) | (14159) |
| Present value of lease liability | $1762 | $2890 |

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**NOTE 9 – COMMITMENTS AND CONTINGENCIES**

The Operating Partnership may be subject, from time to time, to various legal proceedings and claims that arise in the ordinary course of business. As of both December 31, 2025 and 2024, the Operating Partnership was not subject to any material litigation or aware of any pending or threatened material litigation.

While the Operating Partnership currently has no intent to sell any of its properties, if the Operating Partnership were to sell properties in Texas, it has the potential to trigger Texas franchise tax for the Operating Partnership. The amount of tax, if any, will depend on several factors and any future sales of Texas properties meeting the requirements of the Code Section 1031 (like-kind exchanges), which are non-taxable, would result in no franchise tax being incurred. The Operating Partnership has not recorded a tax liability for Texas franchise tax as it is considered contingent upon events not currently expected to occur.

The Operating Partnership entered into tax protection agreements with certain partners that contributed property interests to the Operating Partnership. Such agreements indemnify the contributing partners from incurring any tax consequences triggered by a taxable sale of properties and expire between September 2028 and April 2029. The Operating Partnership has not recorded any tax liabilities in connection with tax protection agreements as they are considered contingent upon events that are not currently expected to occur.

**NOTE 10 – TRANSACTIONS WITH RELATED PARTIES**

The following table summarizes the related party transactions for the years ended December 31, 2025, 2024 and 2023. Certain compensation and fees payable to the Advisor for services provided to the Operating Partnership are limited to maximum amounts.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Unpaid amounts as of December 31,** | **Unpaid amounts as of December 31,** |
|  | **2025** | **2024** | **2023** | **2025** | **2024** |
| General and administrative reimbursements<br> (a) | $1000 | $1014 | $710 | $121 | $56 |
| Loan costs<br> (b) | $— | $6 | $— | $— | $— |
| Acquisition related costs | $— | $25 | $10 | $— | $— |
| Interest expense<br> (c) | $382 | $335 | $— | $29 | $37 |
| Offering costs<br> (d) | $104 | $82 | $207 | $264 | $45 |
| Property management fees | $744 | $641 | $557 | $20 | $15 |
| Property operating expenses | 452 | 360 | 37 | 3 | 24 |
| Construction management fees | 5 | 10 | 58 |  | 10 |
| Total property management related costs<br> (e) | $1201 | $1011 | $652 | $23 | $49 |
| Advisor management fee<br> (f) | $787 | $759 | $900 | $68 | $64 |

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(a)The Advisor and its related parties are entitled to reimbursement for certain general and administrative expenses incurred by the Advisor or its related parties relating to the Operating Partnership's administration. Such costs are included in general and administrative expenses in the consolidated statements of operations and comprehensive loss. Unpaid amounts are included in due to related parties on the consolidated balance sheets.

(b)The Advisor and its related parties are entitled to reimbursement for certain legal costs and financing fees related to securing financing for the Operating Partnership. Such costs are capitalized as debt issuance costs on the consolidated balance sheets and

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amortized into interest expense on the consolidated statements of operations and comprehensive loss over the term of the related financing. Unpaid amounts are included in due to related parties on the consolidated balance sheets.

(c)The Operating Partnership incurs interest expense on the amounts drawn under the Credit Facility (as defined below) with IPC. See "Related Party Line of Credit" below for further information on the Credit Facility.

(d)The Operating Partnership pays offering costs to certain related parties, for the Operating Partnership as well as the General Partner, attributable to the preparation of the Registration Statement and registration and qualification of the General Partner's common stock under federal and state laws. Unpaid amounts are included in due to related parties on the consolidated balance sheets.

Unpaid amounts include accrued distribution fees payable to Inland Securities Corporation (the "Dealer Manager"). In connection with the acquisition of the Storage Properties, on February 13, 2024, the Operating Partnership, the General Partner and the Dealer Manager entered into a dealer manager agreement (the "DST Dealer Manager Agreement") under which the OP Units were sold through the Dealer Manager to the investors electing to receive OP Units. Under the DST Dealer Manager Agreement, the Operating Partnership will pay the Dealer Manager (a) a distribution fee with respect to outstanding Class T OP Units sold pursuant to the DST Dealer Manager Agreement that is paid monthly in an amount equal to 0.85% per annum of the aggregate net asset value ("NAV") (as determined in accordance with the General Partner's valuation guidelines) of such outstanding Class T OP Units; (b) a distribution fee with respect to outstanding Class S OP Units sold pursuant to the DST Dealer Manager Agreement that is paid monthly in an amount equal to 0.85% per annum of the aggregate NAV of such outstanding Class S OP Units; and (c) a distribution fee with respect to outstanding Class D OP Units sold pursuant to the DST Dealer Manager Agreement that is paid monthly in an amount equal to 0.25% per annum of the aggregate NAV of such outstanding Class D units. The Operating Partnership will not pay a distribution fee with respect to Class I OP Units sold pursuant to the DST Dealer Manager Agreement. The Operating Partnership will cease paying the distribution fee with respect to any Class T, Class S or Class D OP Unit held in a unitholder's account upon the occurrence of certain events. The Operating Partnership accrues the full cost of the distribution fee as an offering cost at the time the Operating Partnership sells Class T, Class S, and Class D OP Units. The Dealer Manager does not retain any of these fees, all of which are retained by, or reallowed (paid) to, participating broker-dealers and servicing broker-dealers for ongoing stockholder services performed by such broker-dealers.

(e)For each property that is managed by Inland Commercial Real Estate Services LLC ("Inland Commercial"), the Operating Partnership pays a monthly property management fee of up to 1.9% of the gross income from any single-tenant, net-leased property, 5.0% of the base rent for one of the properties, and up to 3.9% of the gross income from any other property type. Inland Commercial may, in its sole discretion, waive fees with respect to a particular property. For each property that is managed directly by Inland Commercial or its affiliates, the Operating Partnership pays Inland Commercial a separate leasing fee, if applicable. Further, in the event that the Operating Partnership engages Inland Commercial to provide construction management services for a property, the Operating Partnership pays a separate construction management fee. Leasing fees are included in deferred costs, net and construction management fees are included in building and other improvements in the consolidated balance sheets. The Operating Partnership also reimburses Inland Commercial and its affiliates for property-level expenses that they pay or incur on the Operating Partnership's behalf, including the salaries, bonuses and benefits of persons performing services for Inland Commercial and its affiliates except for the salaries, bonuses and benefits of persons who also serve as an executive officer of Inland Commercial or the Operating Partnership.

For the properties managed by Inland Devon Self Storage Holdings LLC ("Devon"), an affiliate of IREIC, the Operating Partnership pays Devon a monthly management fee in an amount equivalent to the greater 5.0% of the "gross revenue," as defined in the agreement, generated on an aggregate basis from the property during the preceding calendar month or $3 on an aggregate basis, whichever is greater. If Devon supervises any capital improvement project for the property owner, the Operating Partnership will also pay Devon a development supervision fee, in an amount equal to 10% of the cost of the project if the project is completed by Devon or in an amount equal to 7% if the project is completed by a third party. Additionally, Devon will issue the Operating Partnership a monthly credit equal to any monthly administrative fee collected by Devon in connection with the insurance premiums collected at the property.

Property management fees and reimbursable expenses are included in property operating expenses in the consolidated statements of operations and comprehensive loss. Unpaid amounts are included in due to related parties on the consolidated balance sheets.

(f)Prior to August 1, 2023, the Operating Partnership paid the Advisor an annual business management fee equal to 0.25% of its "initial partnership assets", which was payable monthly in an amount equal to 0.0208% of its initial partnership assets as of the last day of the immediately preceding month. "Initial partnership assets" means, for any period, the average of the aggregate book value of the assets of the Operating Partnership, including all intangibles and goodwill, invested, directly or indirectly, in equity interest in, and loans secured by, real estate assets, and all consolidated and unconsolidated joint ventures or other partnerships, before non-cash charges such as depreciation, amortization, impairments and bad debt reserves, computed by taking the average of these values at the end of each month during the relevant calendar quarter. On August 24, 2023, the Business Management Agreement was terminated and the General Partner, the Operating Partnership and the Advisor entered into the Advisory

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Agreement, effective beginning August 1, 2023, which was amended and restated on August 28, 2025. Per the Advisory Agreement, as amended and restated, the Operating Partnership or the General Partner pays the Advisor a management fee equal to (i) 1.25% of aggregate NAV of the Operating Partnership attributable to outstanding Class T OP Units, Class S OP Units, Class D OP Units and Class I OP Units of the Operating Partnership, (ii) 1.00% of the aggregate NAV of the Operating Partnership attributable to outstanding Class X-1 OP Units, (iii) 0.75% of the aggregate NAV of the Operating Partnership attributable to outstanding Class X-2 OP Units and (iv) 0.50% of the aggregate NAV of the Operating Partnership attributable to outstanding Class A OP Units, in each case per annum payable monthly in arrears. The management fee may be paid, at the Advisor's election, in cash, Class I shares of the General Partner or Class I OP Units of the Operating Partnership. The business management fee and the management fee are included within Advisor management fee in the consolidated statements of operations and comprehensive loss. Unpaid amounts are included in due to related parties on the consolidated balance sheets.

**Performance Participation Allocation**

The Operating Partnership is governed by the Fourth Amended and Restated Limited Partnership Agreement of the Operating Partnership, dated August 28, 2025 (as may be amended or restated from time to time, the "Amended and Restated Limited Partnership Agreement").

On August 24, 2023, the General Partner admitted IPC REIT Special Limited Partner, LP (the "Special Limited Partner"), an affiliate, as a limited partner of the Operating Partnership and the Special Limited Partner contributed $10 for a performance participation interest in the Operating Partnership. The Special Limited Partner's performance participation interest in the Operating Partnership entitles the Special Limited Partner to receive an allocation of "Total Return," "Class X-1 Total Return" and "Class A Total Return."

"Total Return" is defined as distributions paid or accrued on OP Units (excluding Class X-1, Class X-2 and Class A OP Units) plus the change in the NAV of such OP Units (excluding Class X-1, Class X-2 and Class A OP Units), adjusted for subscriptions and repurchases. Under the Amended and Restated Limited Partnership Agreement, the annual Total Return will be allocated solely to the Special Limited Partner only after the Class T OP Unit, Class S OP Unit, Class D OP Unit and Class I OP Unit holders have received a total return of 5% (after recouping any loss carryforward amount) and such allocation will continue until the allocation between the Special Limited Partner and all other such OP Unit holders is equal to 12.5% and 87.5%, respectively. Thereafter, the Special Limited Partner will receive an allocation of 12.5% of the annual Total Return.

"Class X-1 Total Return" is defined as distributions paid or accrued on Class X-1 OP Units plus the change in NAV of such Class X-1 OP Units, adjusted for subscriptions and repurchases. Under the Amended and Restated Limited Partnership Agreement, the annual Class X-1 Total Return will be allocated solely to the Special Limited Partner only after the Class X-1 OP Unit holders have received a total return of 5% (after recouping any loss carryforward amount) and such allocation will continue until the allocation between the Special Limited Partner and all other such Class X-1 OP Unit holders is equal to 10.0% and 90.0%, respectively. Thereafter, the Special Limited Partner will receive an allocation of 10.0% of the annual Class X-1 Total Return.

"Class A Total Return" is defined as distributions paid or accrued on Class A OP Units plus the change in the NAV of such Class A OP Units, adjusted for subscriptions and repurchases. Under the Amended and Restated Limited Partnership Agreement, the annual Class A Total Return will be allocated solely to the Special Limited Partner only after the Class A OP Unit holders have received a total return of 5% (after recouping any loss carryforward amount) and such allocation will continue until the allocation between the Special Limited Partner and all other such Class A OP Unit holders is equal to 12.5% and 87.5%, respectively. Thereafter, the Special Limited Partner will receive an allocation of 12.5% of the annual Class A Total Return.

The Special Limited Partner is not entitled to a performance participation allocation with respect to Class X-2 OP Units. The performance participation allocations are subject to a loss carryforward which initially equaled zero and is cumulatively increased by the absolute value of any negative annual Total Return, Class X-1 Total Return or Class A Total Return (as applicable) and decreased by any positive annual Total Return, Class X-1 Total Return or Class A Total Return (as applicable), provided that the loss carryforward amount shall at no time be less than zero and provided further that the calculation of the loss carryforward amount will exclude the Total Return, Class X-1 Total Return or Class A Total Return (as applicable) related to any OP Units redeemed during the year, which are subject to the performance participation allocation upon redemption. As of December 31, 2025, there was a loss carryforward of $24. As of both December 31, 2025 and 2024, the Special Limited Partner had not accrued a performance participation allocation.

**Related Party Line of Credit**

On October 27, 2023, the Operating Partnership entered into a revolving credit facility loan agreement (the "Credit Agreement") and a revolving promissory note (the "Promissory Note, and together with the credit agreement, the "Credit Facility") with IPC, as lender.

The Credit Facility provides for loan advances in an aggregate amount not to exceed $22,500, with an original maturity date of November 30, 2024 (as may be amended, modified, extended or renewed, but not accelerated, in IPC's sole discretion) or the date IPC declares obligations under the Credit Facility, or the obligations become, due and payable after the occurrence of an event of default (the "Loan").

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On November 26, 2024, the Operating Partnership and IPC modified the Credit Facility to extend the maturity date of the Credit Facility to November 30, 2025. On November 19, 2025, the Operating Partnership and IPC further modified the Credit Facility to extend the maturity date of the Credit Facility to November 30, 2026. The daily balance of the Loan under the Credit Facility bears interest at a rate of 4.25% per annum, however in connection with the occurrence and continuance of certain events of default (and at IPC's option for all other events of default), the interest rate will increase to 9.25% per annum. The Operating Partnership has the right to prepay all or any part of the Loan at any time upon five days' notice to IPC. The Credit Facility acts in the manner of a revolving credit facility wherein prepayments from the Operating Partnership shall be available for funding future advances to the Operating Partnership.

As of December 31, 2025 and 2024, the Operating Partnership had an outstanding balance of $8,000 and $10,000, respectively, on the Credit Facility.

**Class A OP Units held by Affiliates**

As of both December 31, 2025 and December 31, 2024, 75,484 Class A OP Units, which represents 1.40% and 1.37%, respectively, of the total Class A OP Units, were held by IPC and its affiliates.

**Acquisitions**

On April 5, 2024, the Operating Partnership acquired the Storage Properties from an affiliate of the Operating Partnership. See *Note 3 - Acquisitions* for further information.

**DST Program**

IPC has a program, which commenced on June 27, 2024 (the "DST Program"), through which it sponsors a series of private placements exempt from registration pursuant to Rule 506(b) of Regulation D under the Securities Act of 1933, as amended (the "Securities Act") of beneficial interests in specific DSTs owning one or more real properties. The DST Program is designed for, but not limited to, prospective investors seeking to defer the recognition of gain on the sale of other real property under Section 1031 of the Code. In connection with the DST Program, the Operating Partnership, each DST, and each DST investor enter into an option agreement pursuant to which the Operating Partnership will be granted the option (the "FMV Option"), but not the obligation, exercisable in the Operating Partnership's sole and absolute discretion, to require such DST investor to exchange his, her or its DST interest for Class T OP Units, Class S OP Units, Class D OP Units, Class I OP Units, or, in limited circumstances at the discretion of the Operating Partnership, cash, which option may be exercised during the three, three-month periods that begin on the 24-month, 36-month and 48-month anniversary of the final closing of the sale of DST interests pursuant to each private placement.

In connection with each private placement, each DST, the General Partner, the Operating Partnership and the Dealer Manager enter into a placement agent agreement pursuant to which the Dealer Manager, as placement agent, will offer and sell beneficial interest in the applicable DST. The General Partner and the Operating Partnership are only party to such placement agent agreement for the limited purpose of paying the distribution fees that may be payable to the Dealer Manager in connection with an exercise of the FMV Option.

In connection with the DST Program, IPC, the General Partner and the Operating Partnership entered into a letter agreement (the "IPC Indemnification Agreement") on June 27, 2024 pursuant to which parties provide mutual indemnification obligations with respect to the private placements sponsored by IPC. Under the IPC Indemnification Agreement, the General Partner and the Operating Partnership have agreed to indemnify IPC, its officer and directors, and each person, if any, who controls IPC within the meaning of the Securities Act, against any and all Loss (as defined in the IPC Indemnification Agreement) caused by or based on: (i) any untrue statement or alleged untrue statement of a material fact relating to the General Partner or the Operating Partnership which was furnished or approved by the General Partner or the Operating Partnership specifically for inclusion in, and actually contained in the offering materials related to the private placements but specifically excluding any tax consequences related to the OP Units (collectively, the "General Partner Information") and (ii) the omission or alleged omission therefrom of a material fact regarding the General Partner or the Operating Partnership required to be stated in the General Partner Information (excluding any tax consequences related to the OP Units) or necessary to make the statements in the General Partner Information, in light of the circumstances under which they were made, not misleading.

**Other assets**

As of December 31, 2025 and 2024, other assets includes $1 and $12, respectively, of prepaid expenses to Devon.

**NOTE 11 – EQUITY-BASED COMPENSATION**

The following table details the Class I OP Units issued by the Operating Partnership to the General Partner as a result of the restricted share grants by the General Partner to its independent directors during the years ended December 31, 2025, 2024 and 2023:

------

---

| | | | |
|:---|:---|:---|:---|
| **Grant Date** | **Class of OP Units granted** | **Total number of units granted** | **Vesting Date** |
| 10/2/2023 | Class I | 935 | 10/2/2024 |
| 3/19/2024 | Class I | 2387 | 3/19/2025 |
| 8/1/2024 | Class I | 3335 | 8/1/2025 |
| 8/1/2025 | Class I | 3548 | 8/1/2026 |

---

Compensation expense associated with such units is recognized by the Operating Partnership over a one-year period from the date of the grant. Compensation expense associated with such units issued to the General Partner was $93, $102 and $6 for the years ended December 31, 2025, 2024 and 2023, respectively. As of December 31, 2025, the General Partner had $48 of unrecognized compensation expense related to such units, in the aggregate. The weighted average remaining period that unrecognized compensation expense related to such units will be recognized is 0.6 years.

**NOTE 12 – FAIR VALUE MEASUREMENTS**

The Operating Partnership has estimated the fair value of its financial and non-financial instruments using available market information and valuation methodologies the Operating Partnership believes to be appropriate for these purposes.

**Recurring Fair Value Measurements**

For assets and liabilities measured at fair value on a recurring basis the table below presents the fair value of the Operating Partnership's cash flow hedges as well as their classification on the consolidated balance sheets as of December 31, 2025 and 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair Value** | **Fair Value** | **Fair Value** | **Fair Value** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| **December 31, 2025** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate swap agreements - Other assets | $— | $1800 | $— | $1800 |
| **December 31, 2024** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate swap agreements - Other assets | $— | $4931 | $— | $4931 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate cap agreements - Other assets | $— | $1423 | $— | $1423 |

---

The fair value of derivative instruments was estimated based on data observed in the forward yield curve which is widely observed in the marketplace. The Operating Partnership also incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the counterparty's nonperformance risk in the fair value measurements which utilize Level 3 inputs, such as estimates of current credit spreads. The Operating Partnership has determined that the credit valuation adjustments are not significant to the overall valuation of its derivative interest rate swap and interest rate cap agreements and therefore has classified these in Level 2 of the hierarchy.

**NOTE 13 – SEGMENT REPORTING**

As of December 31, 2025, the Operating Partnership operates in three reportable segments: Healthcare, Self-Storage and Education. During the second quarter of 2023, the Operating Partnership retitled the Student Housing segment to Education. The Operating Partnership assesses performance and makes operational decisions based on the performance of each segment individually. Factors used to determine the Operating Partnership's reportable segments include the physical and economic characteristics of the properties and the related operating activities. The accounting policies of the segments are the same as those described in the summary of significant accounting policies for the Operating Partnership. The chief operating decision maker ("CODM") relies on segment net operating income to make decisions about allocating resources and assessing segment performance. Segment net operating income is the key performance metric that captures the unique operating characteristics of each segment. The Operating Partnership defines segment net operating income as total revenues less property operating expenses and real estate tax expense attributable to the segment. The significant segment expenses provided to the CODM are property operating expenses and the real estate tax expense, which are both disclosed in the tables below. The Operating Partnership's CODM is the Chief Executive Officer of the General Partner.

Prior to the acquisition of Storage Properties on April 5, 2024, the Operating Partnership managed its operations in two reportable segments: Healthcare and Education.

------

The following table details the total assets by reportable segment as of December 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| Healthcare | $350162 | $369939 |
| Self-Storage | 39132 | 40188 |
| Education | 33368 | 34705 |
| Corporate and other | 9058 | 8123 |
| Total assets | $431720 | $452955 |

---

The following table details the financial results by reportable segment for the year ended December 31, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Healthcare** | **Self-Storage** | **Education** | **Total** |
| **Revenues:** |  |  |  |  |
| Rental revenue | $25416 | $3367 | $5382 | $34165 |
| Other property revenue | 3 | 336 |  | 339 |
| &nbsp;&nbsp;Total revenues | 25419 | 3703 | 5382 | 34504 |
| **Expenses:** |  |  |  |  |
| Property operating expenses | 2174 | 1177 | 2269 | 5620 |
| Real estate tax expense | 1051 | 319 | 454 | 1824 |
| &nbsp;&nbsp;Total expenses | 3225 | 1496 | 2723 | 7444 |
| Segment net operating income | $22194 | $2207 | $2659 | $27060 |
| Depreciation and amortization | $(15273) | $(1222) | $(1483) | $(17978) |
| General and administrative expenses |  |  |  | $(4163) |
| Advisor management fee |  |  |  | (787) |
| Interest expense |  |  |  | (15335) |
| Interest and other income |  |  |  | 4 |
| Net loss |  |  |  | $(11199) |

---

The following table details the financial results by reportable segment for the year ended December 31, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Healthcare** | **Self-Storage** | **Education** | **Total** |
| **Revenues:** |  |  |  |  |
| Rental revenue | $25742 | $2568 | $5096 | $33406 |
| Other property revenue | 121 | 123 |  | 244 |
| &nbsp;&nbsp;Total revenues | 25863 | 2691 | 5096 | 33650 |
| **Expenses:** |  |  |  |  |
| Property operating expenses | 2220 | 897 | 1995 | 5112 |
| Real estate tax expense | 881 | 226 | 378 | 1485 |
| &nbsp;&nbsp;Total expenses | 3101 | 1123 | 2373 | 6597 |
| Segment net operating income | $22762 | $1568 | $2723 | $27053 |
| Depreciation and amortization | $(14942) | $(2827) | $(1450) | $(19219) |
| General and administrative expenses |  |  |  | $(4419) |
| Advisor management fee |  |  |  | (759) |
| Interest expense |  |  |  | (14577) |
| Interest and other income |  |  |  | 210 |
| Net loss |  |  |  | $(11711) |

---

------

The following table details the financial results by reportable segment for the year ended December 31, 2023:

---

| | | | |
|:---|:---|:---|:---|
|  | **Healthcare** | **Education** | **Total** |
| **Revenues:** |  |  |  |
| Rental revenue | $25312 | $4601 | $29913 |
| Other property revenue | 108 |  | 108 |
| &nbsp;&nbsp;Total revenues | 25420 | 4601 | 30021 |
| **Expenses:** |  |  |  |
| Property operating expenses | 1925 | 1799 | 3724 |
| Real estate tax expense | 1018 | 362 | 1380 |
| &nbsp;&nbsp;Total expenses | 2943 | 2161 | 5104 |
| Segment net operating income | $22477 | $2440 | $24917 |
| Depreciation and amortization | $(14927) | $(2589) | $(17516) |
| General and administrative expenses |  |  | $(2286) |
| Advisor management fee |  |  | (900) |
| Interest expense |  |  | (11577) |
| Interest and other income |  |  | 38 |
| Net loss |  |  | $(7324) |

---

**NOTE 14 – SUBSEQUENT EVENTS**

In connection with the preparation of its consolidated financial statements, the Operating Partnership has evaluated events that occurred through March 18, 2026, which is the date of issuance of these consolidated financial statements, to determine whether any of these events required disclosure in the consolidated financial statements.

***BMO Mortgage Loan Amendment***

On January 26, 2026, the Operating Partnership amended the BMO Loan Agreement. The amendment extended the maturity date to September 30, 2028 and removed any further extension options. There were no changes to the principal borrowed or the interest rate. In connection with the amendment, the BMO mortgage loan swap agreement listed in Note 5 – "Debt and Derivative Instruments" was terminated and the Operating Partnership entered into a new interest rate swap agreement with BMO on January 27, 2026, with an effective date of January 2, 2026. The new interest rate swap has a notional amount of $122,655, termination date of September 30, 2028, receive floating rate of 1-month Term SOFR, and a pay fixed rate of 2.85%.

------

## Exhibit 10.19

**Exhibit 10.19**

![img106812731_0.jpg](img106812731_0.jpg)

**LOAN AGREEMENT**<br>Dated as of September 30, 2021<br>Between<br>MOB Cedar Park, L.L.C.

MOB 5255 San Antonio, L.L.C.

MOB 9157 San Antonio, L.L.C.

MOB Raleigh, L.L.C.

MOB 1431 Houston, L.L.C.

MOB 1 New Britain, L.L.C.

MOB 300 New Britain, L.L.C.

MOB Oklahoma City, L.L.C.

MOB Peoria, L.L.C.

MOB Phoenix, L.L.C.

MOB 3855 Gilbert, L.L.C.

MOB 700 Chandler, L.L.C.

MOB 3686 Gilbert, L.L.C.

MOB Kingwood, L.L.C.

MOB Garden City, L.L.C., and

IPCAAF MOB Portfolio II, L.L.C.<br>collectively, as Borrowers, and <br>**BMO HARRIS BANK N.A.** <br> as Administrative Agent

And

the Lenders from time to time parties hereto

and

**BMO HARRIS BANK N.A.,**

as Sole Lead Arranger and Sole Lead Bookrunner

------

78580509.10 ------

**TABLE OF CONTENTS**

<u>Page</u>

---

| | | |
|:---|:---|:---|
| **I.** | **DEFINITIONS; PRINCIPLES OF CONSTRUCTION** | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 1.1.** | **Definitions** | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 1.2.** | **Principles of Construction** | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 1.3.** | **Index of Other Definitions** | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 1.4.** | **Administrative Agent's Discretion** | 24 |
| **II.** | **THE LOAN** | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 2.1.** | **The Loan** | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1.1.** | **Agreement to Borrow and Lend** | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1.2.** | **Amount of Loan** | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1.3.** | **The Note** | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1.4.** | **Use of Proceeds** | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 2.2.** | **Interest Rate** | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2.1.** | **Interest Rate** | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2.2.** | **Default Rate** | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2.3.** | **Interest Calculation** | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2.4.** | **Manner of Borrowing Loan** | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2.5.** | **Unavailability of Deposits, Inability to Ascertain or Inadequacy of LIBOR** | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2.6.** | **Effect of Benchmark Transition Event** | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 2.3.** | **Loan Payments** | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3.1.** | **Payment Before Maturity Date** | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3.2.** | **Payment on Maturity Date** | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3.3.** | **Extension of Maturity Date** | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3.4.** | **Place and Application of Payments** | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3.5.** | **Account Debit** | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3.6.** | **Taxes** | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3.7.** | **Funding Indemnity** | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3.8.** | **Increased Costs** | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 2.4.** | **Prepayments** | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 2.5.** | **Substitution of Lenders** | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 2.6.** | **Defaulting Lenders** | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 2.7.** | **Lending Offices** | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 2.8.** | **Release of Individual Properties** | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 2.9.** | **Substitution of Individual Properties** | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 2.10.** | **Interest Rate Protection Agreement** | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 2.11.** | **Replacement of Guarantor** | 41 |
| **III.** | **REPRESENTATIONS AND WARRANTIES** | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 3.1.** | **Borrower Representations** | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.1.** | **Organization** | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.2.** | **Validity of Loan Documents; Enforceability** | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.3.** | **No Conflicts** | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.4.** | **Litigation; Court Orders** | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.5.** | **Consents** | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.6.** | **Title** | 42 |

---

i

&nbsp;&nbsp;&nbsp;&nbsp;78580509.10 ------

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.7.** | **No Plan Assets** | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.8.** | **Compliance** | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.9.** | **Financial Information** | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.10.** | **Condemnation** | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.11.** | **Utilities and Public Access** | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.12.** | **Separate Lots** | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.13.** | **Assessments** | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.14.** | **Employees** | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.15.** | **Assignment of Leases** | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.16.** | **Licenses** | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.17.** | **Insurance** | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.18.** | **Flood Zone** | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.19.** | **Physical Condition** | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.20.** | **Hazardous Substances** | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.21.** | **Boundaries** | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.22.** | **Leases** | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.23.** | **Filing and Recording Taxes** | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.24.** | **Single Purpose** | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.25.** | **Taxes and Assessments** | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.26.** | **Solvency** | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.27.** | **Federal Reserve Regulations** | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.28.** | **Bank Holding Company** | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.29.** | **No Other Debt** | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.30.** | **Investment Company Act** | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.31.** | **Full and Accurate Disclosure** | 46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.32.** | **Reserved** | 46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.33.** | **Management Agreement** | 46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.34.** | **Material Agreements** | 46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.35.** | **Rate Management Agreements** | 46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.36.** | **Customer Identification – USA Patriot Act Notice; OFAC** | 46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.37.** | **Business Loan** | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.38.** | **Ground Lease** | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 3.2.** | **Survival of Representations** | 47 |
| **IV.** | **BORROWER COVENANTS** | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 4.1.** | **Borrower Affirmative Covenants** | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.1.** | **Existence; Compliance With Laws** | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.2.** | **Real Estate Taxes and Other Charges** | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.3.** | **Escrow Accounts** | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.4.** | **Litigation** | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.5.** | **Access to Property** | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.6.** | **Required Repairs** | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.7.** | **Further Assurances** | 49 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.8.** | **Financial Reporting** | 49 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.9.** | **Title to the Property** | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.10.** | **Estoppel Statements** | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.11.** | **Leases** | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.12.** | **Material Agreements** | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.13.** | **Intentionally Omitted** | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.14.** | **Furnishing Reports** | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.15.** | **Alterations** | 52 |

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.16.** | **Business and Operations** | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.17.** | **Condition of Premises** | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.18.** | **Appraisals** | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.19.** | **Bank Accounts** | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.20.** | **Invalidity of Loan Documents** | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.21.** | **Financial Covenants** | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.22.** | **Post Closing Requirements** | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 4.2.** | **Borrower Negative Covenants** | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2.1.** | **Due on Sale and Encumbrance; Transfers of Interests** | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2.2.** | **Liens** | 55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2.3.** | **Material Changes** | 55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2.4.** | **Additional Debt; Debt Cancellation** | 55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2.5.** | **Affiliate Transactions** | 55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2.6.** | **Zoning** | 55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2.7.** | **No Joint Assessment** | 56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2.8.** | **ERISA** | 56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2.9.** | **Distributions** | 56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2.10.** | **Material Agreements** | 57 |
| **V.** | **INSURANCE, CASUALTY AND CONDEMNATION** | 57 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 5.1.** | **Insurance** | 57 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1.1.** | **Insurance Policies** | 57 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1.2.** | **Insurance Company** | 58 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 5.2.** | **Casualty and Condemnation** | 58 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.2.1.** | **Property** | 58 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.2.2.** | **Condemnation** | 59 |
| **VI.** | **RESERVE FUNDS** | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 6.1.** | **Tax Funds** | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.1.1.** | **Deposits of Tax Funds** | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.1.2.** | **Release of Tax Funds** | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 6.2.** | **Insurance Funds** | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.2.1.** | **Deposits of Insurance Funds** | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.2.2.** | **Release of Insurance Funds** | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 6.3.** | **Leasing Reserve** | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 6.4.** | **Application of Reserve Funds** | 62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 6.5.** | **Security Interest in Reserve Funds** | 62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.5.1.** | **Grant of Security Interest** | 62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.5.2.** | **Income Taxes** | 62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.5.3.** | **Prohibition Against Further Encumbrance** | 62 |
| **VII.** | **MANAGEMENT AGREEMENT** | 62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 7.1.** | **The Management Arrangement** | 62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 7.2.** | **Prohibition Against Termination or Modification** | 63 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 7.3.** | **Replacement of Manager** | 63 |
| **VIII.** | **CASH MANAGEMENT** | 63 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 8.1.** | **Cash Management Arrangements** | 63 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 8.2.** | **Security Deposits** | 64 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 8.3.** | **Cash Collateral Subaccount** | 64 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 8.4.** | **Grant of Security Interest; Application of Funds** | 64 |

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|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 8.5.** | **Property Cash Flow Allocation** | 65 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 8.6.** | **Lease Termination Payments** | 65 |
| **IX.** | **SALE OF LOAN** | 66 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 9.1.** | **Participants** | 66 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 9.2.** | **Assignments** | 67 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 9.3.** | **Disclosure** | 68 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 9.4.** | **Cooperation** | 69 |
| **X.** | **DEFAULTS** | 69 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 10.1.** | **Events of Default** | 69 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 10.2.** | **Remedies** | 71 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 10.3.** | **Right to Cure Defaults** | 72 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 10.4.** | **Remedies Cumulative** | 72 |
| **XI.** | **THE ADMINISTRATIVE AGENT** | 73 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 11.1.** | **Appointment and Authorization of Administrative Agent** | 73 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 11.2.** | **Administrative Agent and its Affiliates** | 73 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 11.3.** | **Action by Administrative Agent** | 73 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 11.4.** | **Consultation with Experts** | 74 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 11.5.** | **Liability of Administrative Agent; Credit Decision** | 74 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 11.6.** | **Indemnity** | 74 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 11.7.** | **Resignation of Administrative Agent and Successor Administrative Agent** | 75 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 11.8.** | **Hedging Liability Arrangements** | 75 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 11.9.** | **Designation of Additional Agents** | 75 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 11.10.** | **Releases; Acquisition and Transfer of Collateral.** | 76 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 11.11.** | **Authorization to Enter into, and Enforcement of, the Collateral Documents** | 77 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 11.12.** | **Recovery of Erroneous Payments** | 77 |
| **XII.** | **MISCELLANEOUS** | 78 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 12.1.** | **Successors and Assigns** | 78 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 12.2.** | **Governing Law** | 78 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 12.3.** | **Jurisdiction, Venue and Consent of Process** | 78 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 12.4.** | **Amendments** | 79 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 12.5.** | **Delay Not a Waiver** | 79 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 12.6.** | **Notices** | 80 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 12.7.** | **Trial by Jury** | 81 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 12.8.** | **Headings** | 81 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 12.9.** | **Severability** | 82 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 12.10.** | **Preferences** | 82 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 12.11.** | **Waiver of Notice** | 82 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 12.12.** | **Expenses** | 82 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 12.13.** | **Indemnity** | 82 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 12.14.** | **Schedules and Exhibits Incorporated** | 83 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 12.15.** | **No Joint Venture or Partnership; No Third-Party Beneficiaries; Waiver of Consequential Damages.** | 83 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 12.16.** | **Publicity** | 83 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 12.17.** | **Waiver of Offsets/Defenses/Counterclaims** | 84 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 12.18.** | **Conflict; Construction of Documents; Reliance** | 84 |

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|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 12.19.** | **Brokers and Financial Advisors** | 84 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 12.20.** | **Recourse** | 84 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 12.21.** | **Prior Agreements** | 84 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 12.22.** | **Joint and Several Liability** | 85 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 12.23.** | **Time is of the Essence** | 85 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 12.24.** | **Set-Off; Sharing of Set-Off** | 85 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 12.25.** | **Records** | 85 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 12.26.** | **Execution in Counterparts** | 85 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 12.27.** | **Survival of Indemnities** | 85 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 12.28.** | **Acknowledgement and Consent to Bail-In of EEA Financial Institutions** | 85 |
| **XIII.** | **MULTIPLE BORROWERS** | 86 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 13.1.** | **Joint and Several Liability** | 86 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 13.2.** | **Waivers** | 87 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 13.3.** | **Full Knowledge** | 88 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 13.4.** | **Adequate Consideration** | 88 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 13.5.** | **Rights of Contribution; Subordination** | 88 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Section 13.6.** | **Lender's Disgorgement to Payments** | 88 |

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**EXHIBITS AND SCHEDULES**

Exhibit A Legal Description of Property

Exhibit B Assignment and Acceptance

Exhibit C Form of Note

Exhibit D Form of Compliance Certificate

Exhibit E Survey Requirements

Exhibit F Form of Request for Loan Extension

Exhibit G Form of Joinder Agreement

Schedule 1 Index of Other Definitions

Schedule 2 Schedule of Lenders

Schedule 2.1 Loan Opening Conditions and Property Substitution Conditions

Schedule 3.1.1 Organizational Chart

Schedule 3.1.22 Rent Rolls

Schedule 3.1.24 Definition of Special Purpose Entity

Schedule 4.1.6 Required Repairs

Schedule 4.1.22 Post-Closing Requirements

Schedule 5.1.1 Insurance

Schedule 6 Allocated Loan Amounts

Schedule 7 REAs

Schedule 8 List of Individual Properties and Owners

Schedule 9 Example of Calculation of Weighted Average Lease Term

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**LOAN AGREEMENT**

THIS LOAN AGREEMENT, dated as of September 30, 2021 (as amended, restated, replaced, supplemented or otherwise modified from time to time, this "**Agreement**"), by and among BMO HARRIS BANK N.A., a national banking association, having an address at 115 S. LaSalle Street, 19W, Chicago, Illinois 60603, as Administrative Agent as provided herein, the several financial institutions from time to time party to this Agreement, as Lenders, and MOB Cedar Park, L.L.C., MOB 5255 San Antonio, L.L.C., MOB 9157 San Antonio, L.L.C., MOB Raleigh, L.L.C., MOB 1431 Houston, L.L.C., MOB 1 New Britain, L.L.C., MOB 300 New Britain, L.L.C., MOB Oklahoma City, L.L.C., MOB Peoria, L.L.C., MOB Phoenix, L.L.C., MOB 3855 Gilbert, L.L.C., MOB 700 Chandler, L.L.C., MOB 3686 Gilbert, L.L.C., MOB Kingwood, L.L.C., MOB Garden City, L.L.C., and IPCAAF MOB Portfolio II, L.L.C., each a Delaware limited liability company (individually or collectively, as the context shall require, "**Borrower**" and collectively, the "**Borrowers**"), having an address at 2901 Butterfield Road, Oak Brook, Illinois 60523. All capitalized terms used herein shall have the respective meanings set forth in Article I hereof.

**RECITALS:**

A. Borrowers are the owners in fee simple (or with respect to the Ground Lease Property, the holder of a leasehold interest) of certain medical office properties as more particularly described in **Schedule 8** attached hereto.

B. Borrowers applied to Lenders for a loan in the original principal amount of up to One Hundred Twenty-Two Million Six Hundred Fifty-Five Thousand and 00/100 Dollars ($122,655,000.00) to recapitalize the Properties, and Lenders are willing to make the Loan on the terms and conditions hereinafter set forth.

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

I. DEFINITIONS; PRINCIPLES OF CONSTRUCTION

## <u>Section 1.1. Definitions</u>.
The following terms shall have the following meanings:

**<u>Accounting Rules</u>**: with respect to Borrower, Guarantor and the Property, when applicable, GAAP, or such other consistently applied accounting methods satisfactory to Administrative Agent in its discretion.

**<u>Accounts</u>**: collectively, the Central Account, the Security Deposit Account, and any other accounts pledged to Administrative Agent pursuant to this Agreement or any other Loan Document.

**<u>Adjusted LIBOR Rate</u>**: for any Interest Period, a rate per annum equal to the <u>quotient</u> of (i) the LIBOR Rate <u>divided</u> by (ii) one (1) <u>minus</u> the Reserve Percentage.

**<u>Administrative Agent</u>**: BMO Harris Bank N.A., in its capacity as administrative agent hereunder and under any of the Loan Documents, and any successor in such capacity pursuant to Section 11.7.

**<u>Administrative Questionnaire</u>**: an Administrative Questionnaire in a form supplied by the Administrative Agent.

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**<u>Affiliate</u>**: as to any Person, any other Person that, directly or indirectly, owns more than twenty percent (20%) of, is in Control of, is Controlled by or is under common ownership or Control with such Person or is a director or officer of such Person or of an Affiliate of such Person.

**<u>Aggregate Commitments</u>**: the Commitments of all Lenders.

**<u>Allocated Loan Amount</u>**: with respect to each Individual Property, the amount listed for such Individual Property on <u>Schedule 6</u> hereto.

**<u>ALTA</u>**: American Land Title Association, or any successor thereto.

**<u>Alternative Base Rate</u>**: as of any date of determination, a fluctuating rate per annum equal to the greater of (a) the rate of interest announced by Administrative Agent from time to time as its "prime commercial rate" as in effect on such day, with any change in the Alternative Base Rate resulting from a change in said prime commercial rate to be effective as of the date of the relevant change in said prime rate (it being acknowledged that such rate may not be Administrative Agent's best or lowest rate), and (b) the Federal Funds Rate plus one-half of one percent (0.50%).

**<u>Alternative Base Rate Loan</u>**: the Loan at any such time as interest on the Loan is calculated by reference to the Alternative Base Rate.

**<u>Annual Budget</u>**: an operating and capital budget for each Individual Property and collectively for the Properties, setting forth Borrower's good faith estimate of Gross Revenue, Operating Expenses, Net Operating Income and Capital Expenditures for the applicable Fiscal Year.

**<u>Anti-Money Laundering Laws</u>**: those laws, regulations and sanctions, state and federal, criminal and civil, that (a) limit the use of and/or seek the forfeiture of proceeds from illegal transactions; (b) limit commercial transactions with designated countries or individuals believed to be terrorists, narcotics dealers or otherwise engaged in activities contrary to the interests of the United States; (c) require identification and documentation of the parties with whom a Financial Institution conducts business; or (d) are designed to disrupt the flow of funds to terrorist organizations. Such laws, regulations and sanctions shall be deemed to include the Patriot Act, the Bank Secrecy Act, 31, U.S.C. Section 5311 <u>et</u> <u>seq</u>., the Trading with the Enemy Act, 50 U.S.C. App. Section 1 <u>et seq</u>., the International Emergency Economic Powers Act, 50 U.S.C. Section 1701 <u>et seq</u>., and the sanction regulations promulgated pursuant thereto by the OFAC, as well as laws relating to prevention and detection of money laundering in 18 U.S.C. Sections 1956, 1957 and 1960.

**<u>Applicable Margin</u>**: as of any date of determination, if the Loan is then (x) a LIBOR Rate Loan, two percent (2.0%), or (y) an Alternative Base Rate Loan, one percent (1.0%).

**<u>Appraisal</u>**: an MAI certified appraisal of the Property performed in accordance with The Financial Institutions Reform, Recovery and Enforcement Act of 1989, as amended from time to time and Administrative Agent's appraisal requirements by an appraiser selected and retained by Administrative Agent.

**<u>Approved Fund</u>**: any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.

**<u>Approved Leasing Costs</u>**: the actual out-of-pocket Tenant Costs incurred by Cedar Park Borrower and payable to third parties that are not Affiliates of Borrower or Guarantor in leasing space at the Cedar Park Property pursuant to a Qualified Lease, including brokerage commissions and tenant improvement costs, which expenses are (i) specifically approved by Administrative Agent in connection with approving

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the applicable Lease, or (ii) otherwise approved in writing by Administrative Agent, which approval shall not be unreasonably withheld or delayed. Approved Leasing Costs shall be substantiated by executed Lease documents and brokerage agreements,

**<u>Assignment and Acceptance</u>**: an assignment and acceptance entered into by a Lender and an Eligible Assignee (with the consent of any party whose consent is required by Section 9.2(a)), and accepted by the Administrative Agent, in substantially the form of Exhibit B or any other form approved by the Administrative Agent.

**<u>Assignment of Interest Rate Cap Agreement</u>**. that certain Assignment of Interest Rate Cap Agreement, dated as of the date hereof, by Borrower in favor of Administrative Agent, as assignee, for the benefit of the Lenders, and consented to by the Counterparty to the Interest Rate Cap Agreement, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.

**<u>Assignment of Leases</u>**: collectively with respect to each Individual Property, that certain first priority Assignment of Leases and Rents, each dated as of the date hereof, executed and delivered by each applicable Borrower, as assignor, to Administrative Agent, as assignee, for the benefit of the Lenders, as security for the Loan, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.

**<u>Assignment of Management Agreement</u>**: collectively with respect to each Individual Property, that certain Consent and Subordination of Management Agreement, dated as of the date hereof, from each Manager to Administrative Agent for the benefit of the Lenders, and consented to by Borrower, as the same may be amended, restated, modified or supplemented and in effect from time to time.

**<u>Available Cash</u>**: as of each Monthly Payment Date during the continuance of a Cash Management Period, the amount of Rents, if any, remaining in the Deposit Account after the application of all of the payments required under clauses (i) through (iv) of Section 8.5(a) hereof.

**<u>Available Tenor</u>**: as of any date of determination and with respect to the then-current Benchmark, as applicable, any tenor for such Benchmark or payment period for interest calculated with reference to such Benchmark, as applicable, that is or may be used for determining the length of an Interest Period pursuant to this Agreement as of such date and not including, for the avoidance of doubt, any tenor for such Benchmark that is then-removed from the definition of "Interest Period" pursuant to clause (e) of Section 2.2.6.

**<u>Bail-In Action</u>**: the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.

**<u>Bail-In Legislation</u>**: with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule.

**<u>Bankruptcy Code</u>**: Title 11 of the United States Code entitled "Bankruptcy" as amended from time to time, and any successor statute or statutes and all rules and regulations from time to time promulgated thereunder, and any comparable foreign laws relating to bankruptcy, insolvency or creditors' rights.

**<u>Benchmark</u>**: initially, the LIBOR Rate; provided that if replacement of the Benchmark has occurred pursuant to <u>Section 2.2.6</u>, then "Benchmark" means the applicable Benchmark Replacement to

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the extent that such Benchmark Replacement has replaced such prior benchmark rate. Any reference to "Benchmark" shall include, as applicable, the published component used in the calculation thereof.

**<u>Benchmark Replacement</u>**: for any Available Tenor, the first alternative set forth below that can be determined by the Administrative Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) For the purposes of Section 2.2.6(a):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the sum of: (a) Term SOFR and (b) 0.11448% (11.448 basis points) for an Available Tenor of one-month's duration; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the sum of: (a) Daily Simple SOFR and (b) 0.11448% (11.448 basis points).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) For the purposes of Section 2.2.6(b), the sum of: (a) the alternate benchmark rate and (b) an adjustment that may be positive, negative or zero in each case that has been selected by the Administrative Agent and the Borrower as the replacement for such Available Tenor of such Benchmark giving due consideration to any evolving or then-prevailing market convention including any applicable recommendation made by the Relevant Governmental Body, for U.S. dollar-denominated syndicated credit facilities at such time;

If the Benchmark Replacement as determined pursuant to clause (1) or (2) above would be less than the Floor, the Benchmark Replacement will be deemed to be the Floor for the purposes of this Agreement and the other Loan Documents.

**<u>Benchmark Replacement Conforming Changes</u>**: with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of "Alternative Base Rate," the definition of "Business Day," the definition of "Interest Period," the timing and frequency of determining rates and making payments of interest, the timing of borrowing requests or prepayment, conversion or continuation notices, the applicability and length of lookback periods, the applicability of breakage provisions, and other technical, administrative or operational matters) that the Administrative Agent decides may be appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent determines that no market practice for the administration of such Benchmark Replacement exists, in such other manner of administration as the Administrative Agent decides is reasonably necessary in connection with the administration of this Agreement and the other Loan Documents).

**<u>Benchmark Transition Event</u>**: with respect to any then-current Benchmark other than the LIBOR Rate, the occurrence of a public statement or publication of information by or on behalf of the administrator of the then-current Benchmark, the regulatory supervisor for the administrator of such Benchmark, the Board of Governors of the Federal Reserve System, the Federal Reserve Bank of New York, an insolvency official with jurisdiction over the administrator for such Benchmark, a resolution authority with jurisdiction over the administrator for such Benchmark or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark, announcing or stating that (a) such administrator has ceased or will cease on a specified date to provide all Available Tenors of such Benchmark, permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark or (b) all Available Tenors of such Benchmark are or will no longer be representative of the underlying market and economic reality that such Benchmark is intended to measure and that representativeness will not be restored.

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**<u>Beneficial Ownership Certification</u>**: a certification regarding beneficial ownership as required by the Beneficial Ownership Regulation, in form and substance satisfactory to Administrative Agent.

**<u>Beneficial Ownership Regulation</u>**: 31 C.F.R. § 1010.230.

**<u>Bona Fide Third Party Sale</u>**: the sale of an Individual Property or transfer of the entire membership interest in an individual Borrower to a third-party purchaser that is not an Affiliate of Borrowers or Guarantor.

**<u>Business Day</u>**: any day (other than a Saturday or Sunday) on which banks are not authorized or required to close in Chicago, Illinois.

**<u>Capital Expenditures</u>**: for any period shall mean amounts expended for replacements and alterations to the Property that are required to be capitalized according to GAAP.

**<u>Cash Management Cure Event</u>**: at such time that Administrative Agent has determined that the Properties have achieved a Debt Yield equal to 7.75% or greater for two (2) consecutive calendar quarters.

**<u>Cash Management Period</u>**: shall commence upon the occurrence of any of the following: (i) the Maturity Date, (ii) an Event of Default, or (iii) if, as of any Determination Date, the Debt Yield is less than 7.75%; and shall end upon Administrative Agent giving notice to the Deposit Bank that the sweeping of funds into the Deposit Account may cease, which notice Administrative Agent shall only be required to give if (1) the Loan and all other obligations under the Loan Documents have been repaid in full or (2) the Maturity Date has not occurred and (A) with respect to the matters described in clause (ii) above, such Event of Default has been cured and no other Event of Default has occurred and is continuing, or (B) with respect to the matter described in clause (iii) above, a Cash Management Cure Event has occurred.

**<u>Casualty</u>**: the occurrence of any casualty, damage or injury, by fire or otherwise, to the Property or any part thereof.

**<u>Cedar Park Borrower</u>**: MOB Cedar Park, L.L.C., a Delaware limited liability company.

**<u>Cedar Park Property</u>**: that certain Individual Property commonly known as "Baylor Scott & White Emergency", located at 900 East Whitestone Boulevard, Cedar Park, Texas, and owned by Cedar Park Borrower.

**<u>Cedar Park Replacement Lease</u>**: a Qualified Lease entered into by the Cedar Park Borrower for all of the rentable space at the Cedar Park Property and having a term of not less than five (5) years (exclusive of any early termination options except customary options in case of casualty or condemnation).

**<u>Change in Law</u>**: the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any Law, (b) any change in any Law or in the administration, interpretation, implementation or application thereof or (c) the making or issuance of any request, rule, guideline, interpretation, or directive by any Governmental Authority; provided that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a "Change in Law", regardless of the date enacted, adopted or issued.

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**<u>Closing Date</u>**: the date of this Agreement.

**<u>Code</u>**: the U.S. Internal Revenue Code of 1986, as amended, and as it may be further amended from time to time, any successor statutes thereto, and applicable U.S. Department of Treasury regulations issued pursuant thereto in temporary or final form.

**<u>Collateral</u>**: all properties, rights, interests, and privileges from time to time subject to the Liens granted to the Administrative Agent for the benefit of the Lenders, or any security trustee therefor, by the Collateral Documents.

**<u>Collateral Documents</u>**: the Security Instrument, the Assignment of Leases, the Environmental Indemnity, the Guaranty, the Assignment of Management Agreement, the Deposit Account Control Agreement, the Assignment of Interest Rate Cap Agreement, and all other mortgages, deeds of trust, security agreements, pledge agreements, assignments, financing statements and other documents as shall from time to time secure or relate to the Debt, the Rate Management Obligation, or any part thereof.

**<u>Commitment</u>**: as to each Lender, its obligations to advance its Percentage of the Loan in an aggregate principal amount not exceeding the amount set forth opposite such Lender's name on the Schedule of Lenders at any one time outstanding, as such amount may be adjusted from time to time in accordance with this Agreement.

**<u>Commodity Exchange Act</u>**: the Commodity Exchange Act (7 U.S.C. §1 et seq.), as amended from time to time, and any successor statute.

**<u>Compliance Certificate</u>**: a certificate delivered to Administrative Agent by Borrower which is signed by an authorized senior officer, general partner or managing member of Borrower, as applicable, in the form of Exhibit D.

**<u>Condemnation</u>**: 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.

**<u>Connection Income Taxes</u>**: Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.

**<u>Control</u>**: 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 or by contract rights with respect to such voting rights or otherwise.

**<u>Counterparty</u>**: the counterparty under any Rate Management Agreement, which counterparty shall be acceptable to Administrative Agent.

**<u>Daily Simple SOFR</u>**: for any day, SOFR, with the conventions for this rate (which will include a lookback) being established by the Administrative Agent in accordance with the conventions for this rate selected or recommended by the Relevant Governmental Body for determining "Daily Simple SOFR" for syndicated business loans; <u>provided</u>, that if the Administrative Agent decides that any such convention is not administratively feasible for the Administrative Agent, then the Administrative Agent may establish another convention in its reasonable discretion.

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**<u>Debt</u>**: the outstanding principal amount of the Loan together with all interest accrued and unpaid thereon and all other liabilities, obligations and sums due under the Note, this Agreement, the Security Instrument, the Environmental Indemnity, any other Loan Document or under any Rate Management Agreement for which a Lender or one of its Affiliates is a Counterparty.

**<u>Debtor Relief Law</u>**: the Bankruptcy Code of the United States of America, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect and affecting the rights of creditors generally.

**<u>Debt Yield</u>**: as of any date, the ratio, expressed as a percentage, of (a) Net Operating Income, to (b) the Principal Balance.

**<u>Default</u>**: 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.

**<u>Default Rate</u>**: with respect to the Loan, a rate per annum equal to the lesser of (i) the maximum rate permitted by applicable law, or (ii) five percent (5%) above the Interest Rate.

**<u>Defaulted Loan</u>**: has the meaning specified in the definition of "Defaulting Lender."

**<u>Defaulting Lender</u>**: any Lender that (a) has failed to (i) fund any portion of the Loan required to be funded by it hereunder (herein, a "**Defaulted Loan**") within two (2) Business Days of the date such advances were required to be funded by it hereunder unless such Lender notifies the Administrative Agent and Borrower in writing that such failure is the result of such Lender's determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has not been satisfied, or (ii) pay to Administrative Agent or any other Lender any other amount required to be paid by it hereunder within two (2) Business Days of the date when due, (b) has notified Borrower or the Administrative Agent in writing that it does not intend to comply with its funding obligations hereunder, or has made a public statement to that effect (unless such writing or public statement relates to such Lender's obligation to fund an advance hereunder and states that such position is based on such Lender's determination that a condition precedent to funding (which condition precedent, together with any applicable default, shall be specifically identified in such writing or public statement) cannot be satisfied), (c) has failed, within three (3) Business Days after written request by the Administrative Agent or the Borrower, to confirm in writing to the Administrative Agent and Borrower that it will comply with its prospective funding obligations hereunder (provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by the Administrative Agent and Borrower), or (d) has, or has a direct or indirect parent company that has (i) become the subject of a proceeding under any Debtor Relief Law, (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity, or (iii) become the subject of a Bail-In Action; provided that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any equity interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender. Any determination by the Administrative Agent that a Lender is a Defaulting Lender under clauses (a) through (d) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender upon delivery of written notice of such determination to Borrower and each Lender.

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**<u>Defaulting Lender Excess</u>**: with respect to any Defaulting Lender, the excess, if any, of such Defaulting Lender's Percentage of the aggregate outstanding principal amount of the Loan (calculated as if all Defaulting Lenders other than such Defaulting Lender had funded all of their respective Defaulted Loan) over the aggregate outstanding principal amount of the portion of the Loan of such Defaulting Lender.

**<u>Defaulting Lender Period</u>**: with respect to any Defaulting Lender, the period commencing on the date upon which such Lender first became a Defaulting Lender and ending on the earliest of the following dates: (i) the date on which all Commitments are cancelled or terminated and/or the Debt is declared or become immediately due and payable and (ii) the date on which (a) such Defaulting Lender is no longer insolvent, the subject of a bankruptcy or insolvency proceeding or, if applicable, under the direction of a receiver or conservator, (b) the Defaulting Lender Excess with respect to such Defaulting Lender shall have been reduced to zero (whether by the funding by such Defaulting Lender of any Defaulted Loans of such Defaulting Lender or otherwise), and (c) such Defaulting Lender shall have delivered to Borrower and Administrative Agent a written reaffirmation of its intention to honor its obligations hereunder with respect to its Commitment.

**<u>Deposit Account Control Agreement</u>**: that certain Deposit Account Control Agreement, dated as of the date hereof, executed by and among Holdings Borrower, Deposit Bank and Administrative Agent, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.

**<u>Deposit Bank</u>**: BMO Harris Bank N.A., a national banking association, in its capacity as agent under the Deposit Account Control Agreement and any successor Eligible Institution thereto.

**<u>Determination Date</u>**: the last day of each applicable calendar quarter.

**<u>Early Opt-in Election</u>**: the occurrence of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) a notification by the Administrative Agent to (or the request by the Borrower to the Administrative Agent to notify) each of the other parties hereto that at least five currently outstanding U.S. dollar-denominated syndicated credit facilities at such time contain (as a result of amendment or as originally executed) a SOFR-based rate (including SOFR, a term SOFR or any other rate based upon SOFR) as a benchmark rate (and such syndicated credit facilities are identified in such notice and are publicly available for review), and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the joint election by the Administrative Agent and the Borrower to trigger a fallback from the LIBOR Rate and the provision by the Administrative Agent of written notice of such election to the Lenders.

**<u>EEA Financial Institution</u>**: (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.

**<u>EEA Member Country</u>**: any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

**<u>EEA Resolution Authority</u>**: any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

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**<u>Eligible Account</u>**: a separate and identifiable account from all other funds held by the holding institution that is either (i) 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 (ii) 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 Fifty Million and 00/100 Dollars ($50,000,000) 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.

**<u>Eligible Assignee</u>**: (a) a Lender, (b) an Affiliate of a Lender, (c) an Approved Fund, and (d) any other Person (other than a natural person) approved by (i) the Administrative Agent, and (ii) unless a Default has occurred and is continuing, Borrower (each such approval not to be unreasonably withheld or delayed); provided that notwithstanding the foregoing, Eligible Assignee shall not include Borrower or any Guarantor or any of Borrower's or such Guarantor's Affiliates or subsidiaries.

**<u>Eligible Institution</u>**: a depository institution or trust company incorporated under the laws of the United States or any state thereof, insured by the Federal Deposit Insurance Corporation and subject to supervision and examination by federal or state banking authorities, so long as Administrative Agent shall have approved such depository institution or trust company, which approval shall not be unreasonably withheld, conditioned or delayed.

**<u>Environmental Indemnity</u>**: 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 Administrative Agent and Lenders, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.

**<u>EU Bail-In Legislation Schedule</u>**: the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.

**<u>Excluded Taxes</u>**: any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment to a Recipient, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in the Loan or a Commitment pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Loan or Commitment (other than pursuant to an assignment at the request of Borrower under Section 2.5) or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to Section 2.3.6, amounts with respect to such Taxes were payable either to such Lender's assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its lending office, (c) Taxes attributable to such Recipient's failure to comply with Section 2.3.6(e), (f) or (g), and (d) any U.S. federal withholding Taxes imposed under FATCA.

**<u>Extension Deposit</u>**: as of the date that Borrower delivers the extension notice pursuant to Section 2.3.3 hereof, the amount of additional funds that, when deposited with Administrative Agent and subtracted from the Principal Balance in the calculation of Debt Yield and LTV Ratio, as applicable, results in achievement of a Debt Yield and LTV Ratio satisfying the requirements of Section 2.3.3, at the commencement of the Extension Period. If approved by Administrative Agent in its sole discretion, the Extension Deposit may be in the form of a Qualified Letter of Credit delivered to Administrative Agent. If

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Borrower makes an Extension Deposit hereunder, such deposit shall also be deemed to be a "Covenant Deposit" for purposes of Section 4.1.21.

**<u>FATCA</u>**: Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any applicable agreements entered into pursuant to Section 1471(b)(1) of the Code, and any applicable intergovernmental agreements with respect to the implementation thereof.

**<u>Federal Funds Rate</u>**: for any day the rate determined by Administrative Agent to be the average (rounded upward, if necessary, to the next higher 1/100 of 1%) of the rates per annum quoted to Administrative Agent at approximately 10:00 a.m. (Chicago time) (or as soon thereafter as is practicable) on such day (or, if such day is not a Business Day, on the immediately preceding Business Day) by two or more federal funds brokers selected by Administrative Agent for sale to Administrative Agent at face value of federal funds in the secondary market in an amount equal or comparable to the principal amount for which such rate is being determined. If the Federal Funds Rate determined as provided above would be less than the Floor, the Federal Funds Rate shall be deemed to be the Floor.

**<u>Fee Letter</u>**: that certain letter agreement entitled "Fee Letter", dated as of the date hereof, between BMO Harris Bank N.A. and Borrower, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.

**<u>Financial Institution</u>**: a United States Financial Institution as defined in 31 U.S.C. Section 5312, as periodically amended.

**<u>Fiscal Year</u>**: each twelve (12)-month period commencing on January 1 and ending on December 31, during each year of the term of the Loan.

**<u>Floor</u>**: (i) with respect to any portion of the Loan that is not subject to a Swap Obligation, fifteen one-hundredths of one percent (0.15%), and (ii) with respect to any portion of the Loan that is subject to a Swap Obligation, zero percent (0.00%).

**<u>Fund</u>**: any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial real estate loans and similar extensions of credit in the ordinary course of its business.

**<u>GAAP</u>**: generally accepted accounting principles accepted in the United States as codified by the Financial Accounting Standards Board's Accounting Standards Codification.

**<u>Governmental Authority</u>**: any court, board, agency, commission, office or authority of any nature whatsoever or any governmental unit (federal, state, county, district, municipal, city or otherwise) whether now or hereafter in existence.

**<u>Gross Revenue</u>**: all revenue, derived from the ownership and operation of the Property from whatever source, including, but not limited to, Rents, but excluding (a) sales, use and occupancy or other taxes on receipts required to be accounted for by Borrower to any Governmental Authority, (b) non-recurring revenues as reasonably determined by Administrative Agent, including lease termination payments, (c) proceeds from the sale or refinancing of the Property, (d) security deposits (except to the extent determined by Administrative Agent to be properly utilized to offset a loss of Rents), (e) refunds and uncollectible accounts, (f) proceeds of property insurance and condemnation awards (other than business

&nbsp;&nbsp;&nbsp;&nbsp;78580509.10 ------

interruption or other loss of income insurance related to business interruption or loss of income for the period in question), and (g) any free rent, rent concessions or abatement.

**<u>Ground Lease</u>**:Collectively, that certain Arizona State Department Commercial Lease No. 03-109554-99 dated as of June 15, 2004, by and between The State of Arizona, as Trustee, through the State Land Commissioner, as landlord, and NPP1, LLC, an Arizona limited liability company, as tenant; as assigned to Ryan Desert Ridge, LLC, a Minnesota limited liability company pursuant to that certain Assignment and Assumption of Lease dated November 30, 2004, and recorded on November 30, 2004, as Instrument No. 2004-1399939 in the Official Records of Maricopa County ("**Official Records**"); as further assigned to Ryan Companies US, Inc., a Minnesota corporation pursuant to that certain Assignment and Assumption of Lease dated December 22, 2004, and recorded on December 22, 2004, as Instrument No. 2004-1507842 in the Official Records; as amended by that certain Amendment to Arizona State Department Commercial Lease No. 03-109554-99 dated December 3, 2007, and recorded on December 4, 2007, as Instrument No. 2007-1279677 in the Official Records; as further amended by that certain Amendment to Arizona State Land Department Commercial Lease No. 03-109554-99 dated April 16, 2014; as further assigned to 4425 East Irma Lane, LLC, a Delaware limited liability company pursuant to that certain Assignment and Assumption of Lease dated March 23, 2017, as further assigned to Arizona Healthcare DST, a Delaware statutory trust pursuant to that certain Assignment and Assumption of Lease dated June 6, 2018; and as further assigned to Borrower pursuant to that certain Assignment and Assumption of Lease dated on or about the date hereof ("**Borrower's Ground Lease Assumption**").

**<u>Ground Lease Estoppel</u>**: that certain Ground Lease Estoppel Certificate, dated as of September 2, 2021, by Ground Lease Lessor in favor of Ground Lease Tenant and Administrative Agent.

**<u>Ground Lease Lessor</u>**: State of Arizona, as Trustee, through the State Land Commissioner.

**<u>Ground Lease Property</u>**: The Individual Property leased by Ground Lease Tenant pursuant to the Ground Lease and located at 4375 E. Irma Lane, Phoenix, Arizona.

**<u>Ground Lease Tenant</u>**: MOB Phoenix, L.L.C., a Delaware limited liability company.

**<u>Guarantor</u>**: IPC, or if replaced pursuant to Section 2.11, the Inland Fund.

**<u>Guarantor Financial Covenants</u>**: the covenants of Guarantor set forth in Section 7 of the Guaranty.

**<u>Guaranty</u>**: that certain Guaranty, dated as of the date hereof, executed by Guarantor for the benefit of Lenders, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.

**<u>Hazardous Substance</u>**: has the meaning set forth in the Environmental Indemnity.

**<u>Healthcare Investigations</u>**: any inquiries, investigations, probes, audits or proceedings concerning the business affairs, practices, licensing or reimbursement entitlements of any Individual Property, any Borrower, Guarantor, any Tenant or the Manager (including, without limitation, inquiries, investigations, probes, audit or procedures concerning potential or actual violations of Healthcare Laws).

**<u>Healthcare Laws</u>**: all applicable Laws to which any Individual Property, any Borrower, Guarantor, Manager or any Tenant are subject with respect to healthcare regulatory matters, including, without limitation, (a) all federal and state fraud and abuse laws, including, without limitation, the federal Anti-Kickback Statute (42 U.S.C. §1320a-7b(6)), the Stark Law (42 U.S.C. §1395nn), the civil False

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Claims Act (31 U.S.C. §3729 et seq.), (b) TRICARE program pursuant to 10 U.S.C. Section 1071 et seq., Sections 1320a-7 and 1320a-7a of Title 42 of the United States Code and the regulations promulgated pursuant to such statutes, (c) HIPAA, (d) Medicare program pursuant to the terms of Title XVIII of the Social Security Act, codified at 42 U.S.C. 1395 et seq., (e) Medicaid program pursuant to the terms of Title XIX of the Social Security Act, codified at 42 U.S.C. 1396 et seq., (f) the Patient Protection and Affordable Care Act (P.L. 111-1468), (g) The Health Care and Education Reconciliation Act of 2010 (P.L. 111-152), (h) quality, safety and accreditation standards and requirements of all applicable state laws or regulatory bodies, (i) all laws, policies, procedures, requirements and regulations pursuant to which Healthcare Permits are issued, and (j) any and all other applicable health care laws, regulations, manual provisions, policies and administrative guidance, each of (a) through (j) as may be amended from time to time.

**<u>Healthcare Permit</u>**: with respect to any Individual Property or any of the Tenants, as the case may be, a permit to operate as a provider or supplier of health care and related services, including but not limited to a medical office, medical services, acute surgery center, long-term care center, hospital or other health care facility, as the case may be, and each government and/or third-party provider agreement, if applicable.

**<u>HIPAA</u>**: the Health Insurance Portability and Accountability Act of 1996, as the same may be amended, modified or supplemented from time to time, and any successor statute thereto, and any and all rules or regulations promulgated from time to time thereunder.

**<u>Holdings Borrower</u>**: IPCAAF MOB Portfolio II, L.L.C., a Delaware limited liability company.

**<u>Improvements</u>**: the buildings, any other structures, fixtures, additions, enlargements, extensions, modifications, repairs, replacements and improvements now or hereafter erected or located on the Land.

**<u>Indebtedness</u>**: for any Person, without duplication: (i) all indebtedness of such Person for borrowed money, for amounts drawn under a letter of credit, or for the deferred purchase price of property for which such Person or its assets are liable, (ii) all unfunded amounts under a loan agreement, letter of credit, or other credit facility for which such Person would be liable if such amounts were advanced thereunder, (iii) all amounts required to be paid by such Person as a guaranteed payment to partners or a preferred or special dividend, including any mandatory redemption of shares or interests, (iv) all indebtedness guaranteed by such Person, directly or indirectly, (v) all obligations under leases that constitute capital leases for which such Person is liable, and (vi) all obligations of such Person under interest rate swaps, caps, floors, collars and other interest hedge agreements, in each case whether such Person is liable contingently or otherwise, as obligor, guarantor or otherwise, or in respect of which obligations such Person otherwise assures a creditor against loss.

**<u>Indemnified Taxes</u>**: (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of Borrower or any Guarantor under any Loan Document, and (b) to the extent not otherwise described in (a), Other Taxes.

**<u>Individual Property</u>**: individually, each of the properties described in **Schedule 8** and <u>Exhibit A</u>, and with respect to each such individual property, all related facilities, amenities, fixtures, and personal property owned by the applicable Borrower and any Improvements now or hereafter located on the applicable Land, together with all rights of Borrower pertaining to such property and improvements, and all other property constituting the "Property" as described and defined in the granting clauses of the Security Instrument, but excluding any property that is subject to a Partial Release pursuant to <u>Section 2.8</u> from and after the date of such Partial Release, and including any property that is a Replacement Individual Property pursuant to <u>Section 2.9</u> from and after the date of such Partial Substitution.

**<u>Initial Maturity Date</u>**: September 30, 2026.

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**<u>Inland Fund</u>**: Inland Private Capital Alternative Assets Fund, LLC, a Delaware limited liability company, or its successor entity.

**<u>Interest Period</u>**: (i) the period from the Closing Date until (but not including) the first Business Day of the following calendar month, and (ii) each period thereafter from (and including) the first (1st) Business Day of each calendar month until (but not including) the first Business Day of the following calendar month; except that the Interest Period, if any, that would otherwise commence before and end after the Maturity Date shall end on the Maturity Date.

**<u>Interest Rate</u>**: subject to the provisions of Section 2.2.6, a variable rate per annum equal to the sum of (a) the Adjusted LIBOR Rate, or the Alternative Base Rate, as the case may be, plus (b) the Applicable Margin, increasing or decreasing with each increase or decrease in the Adjusted LIBOR Rate, or the Alternative Base Rate, as the case may be (if, as and when the Adjusted LIBOR Rate or the Alternative Base Rate change as described herein).

**<u>IPC</u>**: Inland Private Capital Corporation, a Delaware corporation.

**<u>IRS</u>**: the U.S. Internal Revenue Service, or any successor agency.

**<u>Land</u>**: collectively, the land described in Exhibit A.

**<u>Laws</u>** or **<u>Legal Requirements</u>**: all federal, state, county, municipal and other governmental statutes, laws, rules, orders, regulations, ordinances, judgments, decrees and injunctions of Governmental Authorities affecting Borrower or the Property or any part thereof or the construction, use, alteration or operation thereof, or any part thereof, whether now or hereafter enacted and in force, including, without limitation, the Americans with Disabilities Act of 1990 (as amended from time to time), Healthcare Laws, and all permits (including Healthcare Permits), licenses and authorizations and regulations relating thereto, and all covenants, agreements, restrictions and encumbrances contained in any instruments, either of record or known to Borrower, at any time in force affecting the Property or any part thereof, including, without limitation, any which may (i) require repairs, modifications or alterations in or to the Property or any part thereof, or (ii) in any way limit the use and enjoyment thereof.

**<u>Lease</u>**: any lease, sublease or subsublease, letting, license, concession or other agreement (whether written or oral and whether now or hereafter in effect) pursuant to which any Person is granted a possessory interest in, or right to use or occupy all or any portion of any space in the Property, and every modification, amendment or other agreement relating to such lease, sublease, subsublease, or other agreement entered into in connection with such lease, sublease, subsublease, or other agreement and every guarantee of the performance and observance of the covenants, conditions and agreements to be performed and observed by the other party thereto. The term "Lease" shall exclude the Ground Lease.

**<u>Lease Termination Payments</u>**: (i) all fees, penalties, commissions or other payments made to Borrower in connection with or relating to the rejection, buy-out, termination, surrender or cancellation of any Lease (including in connection with any bankruptcy proceeding), (ii) any security deposits or proceeds of letters of credit held by Borrower in lieu of cash security deposits, which Borrower is permitted to retain pursuant to the applicable provisions of any Lease and (iii) any payments made to Borrower relating to unamortized tenant improvements and leasing commissions under any Lease.

**<u>Lenders</u>**: includes BMO Harris Bank N.A. and the other financial institutions from time to time party to this Agreement, including each assignee Lender pursuant to Section 9.2.

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**<u>LIBOR Index Rate</u>**: for any Interest Period, the rate per annum (rounded upwards, if necessary, to the next higher 1/1000 of 1%) for deposits in U.S. Dollars for a period equal to such Interest Period, as reported on the applicable Bloomberg screen page (or such other commercially available source providing such quotations as may be designated by Administrative Agent from time to time) as of 11:00 a.m. (London, England time) on the day two (2) London Banking Days before the commencement of such Interest Period.

**<u>LIBOR Rate</u>**: for an Interest Period for a borrowing of a LIBOR Rate Loan, (a) the LIBOR Index Rate for such Interest Period, if such rate is available, and (b) if the LIBOR Index Rate cannot be determined, the arithmetic average of the rates of interest per annum (rounded upwards, if necessary, to the next higher 1/1000 of 1%) at which deposits in U.S. Dollars in immediately available funds are offered to Administrative Agent at 11:00 a.m. (London, England time) two (2) London Banking Days before the beginning of such Interest Period by three (3) or more major banks in the interbank Eurodollar market selected by Administrative Agent for delivery on the first day of and for a period equal to such Interest Period and in an amount equal or comparable to the principal amount of the LIBOR Rate Loan scheduled to be made as part of such borrowing. If the LIBOR Rate determined as provided above would be less than the Floor, the LIBOR Rate shall be deemed to be the Floor.

**<u>LIBOR Rate Loan</u>**: the Loan at any such time as interest on the Loan is calculated by reference to the Adjusted LIBOR Rate.

**<u>Lien</u>**: any mortgage, deed of trust, lien, pledge, hypothecation, assignment, security interest or any other encumbrance, charge or transfer of, on or affecting the Property or any portion thereof or Borrower, or any interest therein, including, without limitation, 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, materialman's and other similar liens and encumbrances.

**<u>Loan</u>**: the loan in the maximum aggregate principal amount not to exceed the Loan Amount made by Lenders to Borrower pursuant to this Agreement.

**<u>Loan Advance</u>**: a disbursement of all or any portion of the Loan.

**<u>Loan Amount</u>**: One Hundred Twenty-Two Million Six Hundred Fifty-Five Thousand and 00/100 Dollars ($122,655,000.00).

**<u>Loan Documents</u>**: collectively, this Agreement, the Note, the Security Instrument, the Assignment of Leases, the Assignment of Management Agreement, the Deposit Account Control Agreement, the Environmental Indemnity, the Guaranty, the Fee Letter, the Replacement Property Documents (if applicable), any other Collateral Documents, and all other documents now or hereafter executed and/or delivered in connection with the Loan, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.

**<u>London Banking Day</u>**: any day on which commercial banks are open for general business (including dealings in foreign exchange and foreign currency deposits) in London, England.

**<u>LTV Ratio</u>**: as of any given date, the ratio (expressed as a percentage) of the Loan Amount to the "as-is" appraised value of the Property.

**<u>Management Agreement</u>**: collectively, those certain Property Management Agreements, each dated as of the Closing Date, by and between Borrower and Manager, relating to each Individual Property, and any and all extensions, renewals, modifications, amendments, supplements and replacements thereto and therefor entered into in accordance with the terms of this Agreement.

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**<u>Manager</u>**: collectively, Inland Commercial Real Estate Services, LLC, and any replacement property manager of the Property approved by Administrative Agent.

**<u>Material Adverse Change</u>**: a material adverse change or material adverse effect on (a) Borrower's or Guarantor's ability to duly and punctually pay or perform their respective obligations under this Agreement or the other Loan Documents, (b) Administrative Agent's and Lenders' liens on any Individual Property or the priority or perfection of any such lien, or (c) the enforceability of Administrative Agent's and Lenders' rights and remedies under this Agreement and the Loan Documents; but with respect to subsection (a), excluding a vacancy at the Cedar Park Property.

**<u>Material Agreements</u>**: any of (i) the Permitted Encumbrances, (ii) the REAs, and (iii) each contract and agreement relating to the ownership, management, development, use, operation, leasing, maintenance, repair or improvement of any Individual Property, other than the Management Agreement and the Leases, under which there is an obligation of Borrower to pay more than $250,000 per annum.

**<u>Material Alteration</u>**: Any renovation or alteration to the Property (or series of related renovations, modifications or alterations) which (i) exceeds Two Hundred Fifty Thousand and 00/100 Dollars ($250,000) in total cost as to any Individual Property at any given time, (ii) hinders or impedes the operation or financial performance of the applicable Individual Property, (iii) is structural in nature in any material respect, or (iv) reduces the rentable square footage of the applicable Individual Property in any material respect.

**<u>Maturity Date</u>**: the Initial Maturity Date, subject to extension under Section 2.3.3, or such other date on which the final payment of principal of the Note becomes due and payable, whether at stated maturity date, by acceleration, or otherwise.

**<u>Monthly Excess Cash Flow</u>**: for any month, the amount by which Gross Revenues exceed the sum of (a) actual cash Operating Expenses plus an appropriate reserve for amounts payable in future periods, including but not limited to Real Estate Taxes and Insurance Premiums, and (b) actual debt service on the Loan.

**<u>Monthly Operating Expense Budgeted Amount</u>**: the monthly amount set forth in the Annual Budget incurred or to be incurred for or as of the calendar month in which such Monthly Payment Date occurs.

**<u>Monthly Payment Date</u>**: the first (1<sup>st</sup>) day of every calendar month occurring during the term of the Loan, provided if such day is not a Business Day, the Monthly Payment Date shall be the next Business Day.

**<u>Net Operating Income</u>**: for any period, Gross Revenues for such period <u>minus</u> Operating Expenses for such period, computed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Gross Revenues shall be projected for the twelve (12) month period following the Determination Date, based on the current Rent Rolls for the Properties, and shall specifically <u>exclude</u> Lease Termination Payments and Rents from any Tenant (v) that is not physically occupying its leased premises and such Tenant's Lease expires within twelve (12) months, (w) that is in default of its rental obligations, (x) under month-to-month tenancies, (y) who is the subject of any voluntary or involuntary bankruptcy, insolvency, liquidation, reorganization or similar proceeding, and (z) that is physically occupying its leased premises and such Tenant's Lease expires within three (3) months following the date of calculation; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Operating Expenses shall be determined for the twelve (12) month period trailing the Determination Date, and shall include (1) a capital expenditure reserve of $0.25 per square foot, and (2) a management fee equal to the greater of the Property's actual management fee or two percent (2.0%) of Gross Revenues, but excluding non-recurring capital items.

**<u>Non-Defaulting Lender</u>**: any Lender, as determined by Administrative Agent, that is not a Defaulting Lender.

**<u>OFAC List</u>**: the Specially Designated Nationals and Blocked Persons List maintained by the Office of Foreign Asset Control, U.S. Department of the Treasury.

**<u>Operating Expenses</u>**: all costs and expenses relating to the operation, maintenance and management of the Property, including, without limitation, utilities, repairs and maintenance, insurance, Real Estate Taxes (excluding state and federal income taxes), advertising expenses, payroll and related taxes, equipment lease payments, management fees, professional and legal fees, but excluding (i) actual Capital Expenditures, depreciation and amortization, (ii) interest or principal due on the Loan, and (iii) leasing commissions.

**<u>Operating Partnership</u>**: IPC Alternative Assets Operating Partnership, LP, a Delaware limited partnership.

**<u>Other Charges</u>**: all ground rents, maintenance charges, impositions other than Real Estate Taxes, and any other charges, including, without limitation, vault charges and license fees for the use of vaults, chutes and similar areas adjoining the Property, now or hereafter levied or assessed or imposed against the Property or any part thereof.

**<u>Other Connection Taxes</u>**: with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in the Loan or Loan Document).

**<u>Other Taxes</u>**: all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to Section 2.5).

**<u>Outstanding Commitment</u>**: the outstanding Principal Balance of the Loan, plus any remaining Unused Commitment that has not expired or terminated.

**<u>Partial Release Payment Amount</u>**: the sum of (a) (i) for the first three (3) Individual Properties subject to a Partial Release pursuant to Section 2.8, one hundred percent (100%) of the Allocated Loan Amount of such Individual Property, and (ii) thereafter, one hundred five percent (105%) of the Allocated Loan Amount of such Individual Property, (b) any Prepayment Fee due pursuant to Section 2.4 and (c) any amount due pursuant to Section 2.3.7.

**<u>Patriot Act</u>**: the USA Patriot Act (Pub. L. 107-56, signed into law October 26, 2001), as amended.

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**<u>Percentage</u>**: with respect to each Lender at any time, a fraction expressed as a percentage, the numerator of which is the amount of the Commitment of such Lender at such time and the denominator of which is the amount of the Aggregate Commitments at such time or, if the Aggregate Commitments have been terminated, a fraction (expressed as a percentage, carried out to the ninth (9<sup>th</sup>) decimal place), the numerator of which is the total outstanding amount of all Debt held by such Lender at such time and the denominator of which is the total outstanding amount of all Debt at such time. The initial Percentage of each Lender named on the signature pages hereto is set forth opposite the name of that Lender on the Schedule of Lenders.

**<u>Permitted Investments</u>**: any of the following, provided that at all times Administrative Agent has a perfected security interest in such investment, and Borrower has provided evidence of such, in form and substance satisfactory to Administrative Agent, and provided that none of the following have an "r" highlighter affixed to the applicable S&P rating (or if not rated by S&P, an analogous highlighter or reference by the applicable Rating Agency):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) demand and time deposits in, certificates of deposits of, or bankers' acceptances of, in each case maturing in not more than sixty (60) days from the date of purchase by any Eligible Institution, all of which are fully insured by the Federal Deposit Insurance Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) commercial paper having remaining maturities of not more than sixty (60) days of any corporation incorporated under the laws of the United States or any state thereof which on the date of acquisition has been rated not less than the higher of "A 1+" by S&P or "P 1" by Moody's; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) U.S. Government Obligations maturing not more than three (3) months from the date of acquisition; and repurchase agreements on U.S. Government Obligations maturing not more than three (3) months from the date of acquisition, provided that the unsecured obligations of the party agreeing to repurchase such obligations are at the time rated either not less than the higher of "A 1+" by S&P or "P 1" by Moody's.

**<u>Permitted Transfer</u>**: the following:

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Transfers of direct or indirect interests in Borrower for estate planning purposes to immediate family members (which shall be limited to a spouse, parent, child and grandchild (each an "**Immediate Family Member**")) of such party or to trusts or entities created for the benefit of Immediate Family Members provided that (i) there has been no change in Control or management rights of Borrower as a result of such Transfer, including, but not limited to, any sale, encumbrance, pledge, hypothecation, or transfer of any general partner or managing member interest in Borrower, (ii) such Transfer has no effect on the continuing status of Borrower as a validly existing entity in good standing and a Special Purpose Entity in compliance with the provisions of Section 3.1.24, and (iii) if such Transfer would cause the transferee, together with its Affiliates, to acquire or to increase its direct or indirect interest in Borrower to an amount which equals or exceeds twenty percent (20%), then (A) Borrower shall provide Administrative Agent with thirty (30) days prior written notice of any such Transfer, (B) Borrower shall reimburse

&nbsp;&nbsp;&nbsp;&nbsp;78580509.10 ------

Administrative Agent for all costs and expenses, including reasonable attorneys' fees incurred by Administrative Agent in connection with such permitted Transfer, (C) Borrower shall furnish Administrative Agent with copies of any documentation executed in connection with such permitted Transfer promptly after execution thereof, and (D) Administrative Agent shall have obtained prior to such Transfer, at Borrower's sole cost and expense, customary searches (OFAC, credit, judgment, lien, bankruptcy, UCC, litigation, etc.) with respect to the proposed transferee with the results of such searches acceptable to Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Transfers of direct and/or indirect interests in Borrower by operation of law or upon death by devise or descent, provided that the conditions set forth in clause (b) above are satisfied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) provided no Event of Default exists, a Transfer of less than forty-nine percent (49%) in the aggregate (which may be pursuant to one or more transactions during the term of the Loan) of the direct ownership interests (including beneficial interests) in Borrower by IPCAAF MOB Portfolio II, L.L.C., provided that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the conditions set forth in clauses (b)(i) and (ii) above are satisfied as to each such Transfer,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Borrower shall provide Administrative Agent with thirty (30) days prior written notice of any such Transfer,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Borrower shall reimburse Administrative Agent for all costs and expenses, including reasonable attorneys' fees incurred by Administrative Agent in connection with such permitted Transfer,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Borrower shall furnish Administrative Agent with copies of any documentation executed in connection with such permitted Transfer promptly after execution thereof,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) if such Transfer would cause the transferee, together with its Affiliates, to acquire or to increase its direct or indirect interest in Borrower to an amount which equals or exceeds twenty percent (20%), then Administrative Agent shall have obtained prior to such Transfer, at Borrower's sole cost and expense, customary searches (OFAC, credit, judgment, lien, bankruptcy, UCC, litigation, etc.) with respect to the proposed transferee with the results of such searches acceptable to Administrative Agent, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) with respect to any such Permitted Transfer, IPC shall continue to Control Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) a Bona Fide Third Party Sale in connection with a Partial Release, subject to the terms of and in accordance with Section 2.8.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any Transfer in respect of, or of a direct or indirect interest in, any Person listed on a nationally or internationally recognized stock exchange or stock quotation system.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any issuance or Transfer, in one or a series of transactions, of any limited partnership interests in the Operating Partnership, provided that the conditions set forth in clauses (b) above are satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any issuance or Transfer of non-managing limited liability company interests or capital stock in the Inland Fund pursuant to a public or private offering of securities, provided that:

&nbsp;&nbsp;&nbsp;&nbsp;78580509.10 ------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the conditions set forth in clause (b) above are satisfied; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) IPC shall directly or indirectly continue to Control the Inland Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any Transfer of non-managing limited liability company interests or common stock in the Inland Fund to limited partners in the Operating Partnership in exchange for the redemption of limited partnership interests in the Operating Partnership pursuant to Section 8.04 of the Agreement of Limited Partnership of IPC Alternative Assets Operating Partnership, LP, dated June 21, 2021, as may be amended or restated from time to time, provided that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the conditions set forth in clause (b) above are satisfied; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) IPC shall directly or indirectly continue to Control the Inland Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any merger or consolidation of the Operating Partnership, the Inland Fund, or IPC (between and among the Operating Partnership, the Inland Fund and/or IPC, but not with any third party); provided, however, any such merger or consolidation shall be subject to the following additional conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if such merger or consolidation involves IPC, then IPC shall be the surviving entity and shall continue to be the Guarantor, IPC shall continue to satisfy the Guarantor Financial Covenants immediately following such merger or consolidation, and shall provide reasonable evidence thereof to Administrative Agent, and if requested by Administrative Agent, IPC shall deliver to Administrative Agent a reaffirmation of the Guaranty and the Environmental Indemnity in form reasonably satisfactory to Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no such Transfer shall result in a change in Control of the transferor or change in control of any Borrower or any Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Borrower shall reimburse Administrative Agent for all costs and expenses, including reasonable attorneys' fees incurred by Administrative Agent in connection with such permitted Transfer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Borrower shall furnish Administrative Agent with copies of any documentation executed in connection with such permitted Transfer promptly after execution thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Administrative Agent shall receive not less than thirty (30) days prior written notice of such proposed merger or consolidation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) the reconstitution or conversion of the Inland Fund from one entity type to another entity type provided that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Administrative Agent shall receive not less than thirty (30) days prior written notice of any such proposed reconstitution or conversion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Borrower shall reimburse Administrative Agent for all costs and expenses, including reasonable attorneys' fees incurred by Administrative Agent in connection with such permitted Transfer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Borrower shall furnish Administrative Agent with copies of any documentation executed in connection with such permitted Transfer promptly after execution thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;78580509.10 ------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) such Transfer has no effect on the continuing status of Borrower as a validly existing entity in good standing and a Special Purpose Entity in compliance with the provisions of Section 3.1.24.

Notwithstanding anything to the contrary herein, no Transfer shall be a Permitted Transfer hereunder if the result thereof is to cause Borrower to breach any of the representations or covenants made in Section 3.1.36.

**<u>Person</u>**: any individual, corporation, partnership, limited liability company, joint venture, estate, trust, unincorporated association, any other entity, 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.

**<u>Prescribed Laws</u>**: collectively, (a) the Patriot Act, (b) Executive Order No. 13224 on Terrorist Financing, effective September 24, 2001, and relating to Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism, (c) the International Emergency Economic Power Act, 50 U.S.C. § 1701 <u>et</u> <u>seq</u>., (d) Anti-Money Laundering Laws, and (e) all other Laws relating to money laundering or terrorism.

**<u>Principal Balance</u>**: the unpaid principal balance of the Loan outstanding from time to time.

**<u>Property</u>**: individually or collectively, as the context requires, each Individual Property or the Individual Properties, comprised in the aggregate of fifteen (15) medical office buildings containing approximately 418,581 square feet of space, but excluding any Individual Property that is subject to a Partial Release pursuant to <u>Section 2.8</u> from and after the date of such Partial Release, and including any property that is a Replacement Individual Property pursuant to <u>Section 2.9</u> from and after the date of such Partial Substitution.

**<u>Qualified ECP Borrower</u>**: at any time, that Borrower has total assets exceeding $10,000,000 or that qualifies at such time as an "eligible contract participant" under the Commodity Exchange Act and can cause another Person to qualify as an "eligible contract participant" at such time under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

**<u>Qualified Lease</u>**: a Lease of all or a portion of an Individual Property which satisfy the conditions of Section 4.1.11 and/or are otherwise approved in writing by Administrative Agent.

**<u>Qualified Letter of Credit</u>**: an irrevocable and unconditional stand-by letter of credit in favor of Administrative Agent for the benefit of the Lenders (i) issued by (or confirmed by) an Eligible Institution having assets of more than $500,000,000 or by a bank otherwise reasonably approved by Administrative Agent, (ii) governed by the Uniform Standby Practices and in form and substance acceptable to Administrative Agent, (iii) payable upon presentation of Administrative Agent's sight draft only in Chicago, Illinois, (iv) allowing Administrative Agent to make partial or multiple draws thereunder up to the stated amount, as determined by Administrative Agent in its sole discretion, and (v) providing that Administrative Agent can freely transfer it, without charge to Administrative Agent (or if there are any transfer fees, Borrower shall pay such fees) and without recourse, and without having to obtain the consent of Borrower or the issuing financial institution. Any Qualified Letter of Credit shall either (i) expire on the date that is ninety (90) days after the Maturity Date (the "**LC Date**"), or (ii) be automatically self-renewing until the LC Date.

**<u>Rate Management Agreement</u>**: any agreement with respect to any swap, forward, future or derivative transaction or option or similar agreement involving, or settled by reference to, one or more rates,

&nbsp;&nbsp;&nbsp;&nbsp;78580509.10 ------

currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions; <u>provided</u> <u>that</u> no phantom stock or similar plan providing for payments only on account of services provided by current or former directors, officers, employees or consultants of the Borrower or its subsidiaries shall be a Rate Management Agreement.

**<u>Rate Management Obligations</u>**: the liability of Borrower to any of the Lenders, or any Affiliates of such Lenders in respect of any Rate Management Agreement as the Borrower may from time to time enter into with any one or more of the Lenders party to this Agreement or their Affiliates, whether absolute or contingent and howsoever and whensoever created, arising, evidenced or acquired (including all renewals, extensions and modifications thereof and substitutions therefor), including without limitation the Swap Obligations.

**<u>Rating Agency</u>**: each of S&P, Moody's and Fitch, or any other nationally-recognized statistical rating agency which has been designated by Administrative Agent.

**<u>REA</u>**: collectively, those certain agreements more particularly described on <u>Schedule 7</u> attached hereto and made a part hereof, as the same may be amended, restated, supplemented or otherwise modified from time to time in accordance with the terms of this Agreement.

**<u>Real Estate Taxes</u>**: all real estate and personal property taxes, assessments, water rates or sewer rents, now or hereafter levied, assessed or imposed against the Property or part thereof, together with all interest and penalties thereon.

**<u>Recipient</u>**: (a) the Administrative Agent, and (b) any Lender, as applicable.

**<u>Relevant Governmental Body</u>**: the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York, or any successor thereto.

**<u>Remaining Property</u>**: collectively, the Individual Properties that remain encumbered by the Lien of the Security Instrument and the other Loan Documents after a Partial Release.

**<u>Rents</u>**: all rents, including, without limitation, percentage rent and additional rent (including tenant tax and operating expense reimbursements), monies payable as damages or in lieu of rent, revenues, parking revenues, deposits (including, without limitation, security, utility and other deposits), accounts, cash, issues, profits, charges for services rendered, income, receipts, royalties, receivables, and termination payments, 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 the Leases and any and all other sources arising from or attributable to the Property.

**<u>Replacement Third Party Agreements</u>**: collectively, a new guaranty and environmental indemnity agreement, in each case in all material respects in the forms of the existing Guaranty and Environmental Indemnity executed on the Closing Date by the Guarantor being replaced, together with such compliance certificates, financial statements, organizational documents and legal opinions as are reasonably required by Administrative Agent.

**<u>Required Lenders</u>**: as of the date of determination thereof, Lenders whose outstanding portion of the Loan and Unused Commitments constitute more than sixty-six and two-thirds percent (66 2/3%) of the sum of the total outstanding Loan and Unused Commitments of the Lenders; provided, however, at all times when two or more Lenders are party to this Agreement the term "Required Lenders" shall in no event mean

&nbsp;&nbsp;&nbsp;&nbsp;78580509.10 ------

less than two Lenders (unless there is one Lender that is a Defaulting Lender in which case it may be one Lender).

**<u>Reserve Percentage</u>**: for purposes of computing the Adjusted LIBOR Rate, the maximum reserve percentage for the applicable Interest Period, expressed as a decimal, at which reserves (including, without limitation, any supplemental, marginal, special and emergency reserves) are imposed during such Interest Period by the Board of Governors of the Federal Reserve System (or any successor) on "Eurocurrency liabilities," as defined in such Board's Regulation D (or successor thereto), subject to any amendments of such reserve requirement by such Board or its successor, taking into account any transitional adjustments thereto. For purposes of this definition, all amounts bearing interest calculated based on an Adjusted LIBOR Rate shall be deemed to be "Eurocurrency liabilities" as defined in Regulation D without benefit or credit for any prorations, exemptions or offsets under Regulation D. The Reserve Percentage shall be adjusted automatically on and as of the effective date of any change in any such reserve percentage.

**<u>Schedule of Lenders</u>**: the schedule of Lenders party to this Agreement as set forth on <u>Schedule 2</u>, as it may be modified from time to time in accordance with this Agreement.

**<u>Secured Rate Management Agreement</u>**: any Rate Management Agreement between Borrower and a Secured Rate Management Provider.

**<u>Secured Rate Management Provider</u>**: Lender or an Affiliate of Lender (or a Person who was a Lender or an Affiliate of Lender at the time of execution and delivery of a Rate Management Agreement) who has entered into a Rate Management Agreement with Borrower.

**<u>Security Instrument</u>**: collectively with respect to each Individual Property, that certain first priority mortgage, deed of trust, or deed to secure debt, each dated the date hereof, executed and delivered by each applicable Borrower in favor of Administrative Agent for the benefit of the Lenders as security for the Loan and encumbering the Individual Property owned by such Borrower (or leased pursuant to the Ground Lease), as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.

**<u>SOFR</u>**:a rate per annum equal to the secured overnight financing rate for such Business Day published by the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate) on the website of the Federal Reserve Bank of New York, currently at http://www.newyorkfed.org (or any successor source for the secured overnight financing rate identified as such by the administrator of the secured overnight financing rate from time to time).

**<u>Special Purpose Entity</u>**: a limited partnership, limited liability company or corporation which, at all times until the Debt is paid and all obligations under the Loan Documents are satisfied, meets all of the requirements of <u>Section 3.1.24</u>.

**<u>State</u>**: the State or Commonwealth in which the applicable Individual Property is located.

**<u>Swap Obligation</u>**: with respect to Borrower, any obligation to pay or perform under any agreement, contract or transaction that constitutes a "swap" within the meaning of Section la(47) of the Commodity Exchange Act.

**<u>Taxes</u>**: all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

&nbsp;&nbsp;&nbsp;&nbsp;78580509.10 ------

**<u>Tenant</u>**: any Person obligated by contract or otherwise to pay monies (including a percentage of gross income, revenue or profits) under any Lease now or hereafter affecting all or any part of the Property.

**<u>Tenant Costs</u>**: expenses relating to new tenanting pursuant to a Qualified Lease or retention of existing tenants, including without limitation (a) tenant allowances, payments, contributions or reimbursements made by Borrower to a Tenant pursuant to the terms of a Qualified Lease for construction by or on behalf of such Tenant of tenant improvements, (b) hard and soft costs in connection with the construction by or on behalf of Borrower (but not any Tenant) of tenant improvements required pursuant to any Qualified Lease, and (c) leasing commissions and reasonable allowances for moving costs and architectural fees incurred in connection with any Qualified Lease.

**<u>Term SOFR</u>**:for the applicable corresponding tenor, the forward-looking term rate based on SOFR that has been selected or recommended by the Relevant Governmental Body.

**<u>Term SOFR Event</u>**: the determination by the Administrative Agent that (a) Term SOFR has been recommended for use by the Relevant Governmental Body, (b) the administration of Term SOFR is administratively feasible for the Administrative Agent and (c) LIBOR has already been replaced with a Benchmark Replacement in accordance with Section 2.2.6 that is not Term SOFR.

**<u>Term SOFR Notice</u>**: a notification by the Administrative Agent to the Lenders and the Borrower of the occurrence of a Term SOFR Event.

**<u>Title Company</u>**: Chicago Title Insurance Company.

**<u>Title Insurance Policy</u>**: collectively, the ALTA mortgagee title insurance policies in the aggregate amount of the Loan and in form acceptable to Administrative Agent, issued by the Title Company with respect to each Individual Property, naming Administrative Agent for the benefit of the Lenders as the insured and insuring the Security Instrument as a first priority lien on each Individual Property and Improvements.

**<u>Transfer</u>**: any voluntary or involuntary sale, conveyance, mortgage, grant, bargain, encumbrance, lease, alienation, pledge, assignment, hypothecation, transfer or other disposition of: (a) all or any part of the Property or any estate or interest therein, or any portion of any other security for the Loan, including, but not be limited to, (i) an installment sales agreement wherein Borrower agrees to sell the Property or any part thereof, or any portion of any other security for the Loan, for a price to be paid in installments, or (ii) 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; or (b) any interest in (i) Borrower or (ii) any indemnitor or guarantor of the Debt or (iii) any corporation, partnership, limited liability company, trust or other entity owning, directly or indirectly, any interest in, or directly or indirectly Controls, Borrower or any indemnitor or guarantor of the Debt. "Transfer" is specifically intended to include (i) any pledge or assignment, directly or indirectly, of a controlling interest in Borrower or its general partner, controlling limited partner or controlling member for purposes of securing so-called "mezzanine" indebtedness and (ii) the reorganization of Borrower by dividing Borrower into two or more business entities, adoption of a plan of division or filing of a certificate of division of Borrower and/or the allocation of all or any part of the Property or any estate, interest or right therein from Borrower to or among the resulting newly formed business entity and surviving business entity.

**<u>UCC</u>** or **<u>Uniform Commercial Code</u>**: the Uniform Commercial Code as in effect in the State, the State in which any of the Cash Management Accounts are located, or any other State applicable to any collateral for the Loan, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;78580509.10 ------

**<u>Unused Commitments</u>**: at any time, the Aggregate Commitments (as reduced from time to time pursuant to the provisions of this Agreement), less all disbursements of the Loan made prior to the date on which the amount of the Unused Commitments is being calculated.

**<u>Weighted Average Lease Term</u>** or **<u>WALT</u>**:

the sum of the product of (i) and (ii) for each Lease:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (x) the number of days from the date of calculation of the WALT until the expiration date of each respective in-place Lease at the Property (without taking into account any unexercised extension options, and if any Tenant has an early termination option (other than in connection with a casualty or condemnation), such calculation will deem the expiration date of such Lease to be as if the early termination option is exercised, until such option either expires by its terms or is waived in writing by the applicable Tenant), divided by (y) 365, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) (x) the rentable square footage of each respective in-place Lease, divided by (y) the total aggregate rentable square footage of the Properties.

An example of the calculation of WALT as of the Closing Date is set forth in <u>Schedule 9</u> attached hereto.

**<u>Withholding Agent</u>**: Borrower and the Administrative Agent.

**<u>Write-Down and Conversion Powers</u>**: with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule.

## <u>Section 1.2. Principles of Construction</u>. Unless otherwise specified, (i) all references to sections and schedules are to those in this Agreement, (ii) the words "hereof," "herein" and "hereunder" and words of similar import refer to this Agreement as a whole and not to any particular provision, (iii) all definitions are equally applicable to the singular and plural forms of the terms defined, (iv) the word "including" means "including but not limited to,".

## <u>Section 1.3. Index of Other Definitions</u>. An index of other terms which are defined in this Agreement or in other Loan Documents is set forth on Schedule 1.

## <u>Section 1.4. Administrative Agent's Discretion</u>. Whenever pursuant to this Agreement Administrative Agent exercises any right given to it to approve or disapprove, or any arrangement or term is to be satisfactory to Administrative Agent, the decision of Administrative Agent to approve or disapprove or to decide whether arrangements or terms are satisfactory or not satisfactory shall, except as is otherwise specifically provided herein, and provided no Default or Event of Default then exists, be in the reasonable discretion of Administrative Agent and shall be final and conclusive.
II. THE LOAN

## <u>Section 2.1. The Loan</u>.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1.1. <u>Agreement to Borrow and Lend</u>**. Subject to and upon the terms and conditions set forth in this Agreement, including, without limitation, Borrower's satisfaction of the conditions set forth in <u>Schedule 2.1</u>, each Lender agrees to advance its Percentage of the Loan to Borrower in an amount not to

&nbsp;&nbsp;&nbsp;&nbsp;78580509.10 ------

exceed the amount of its Commitment. The obligations of each Lender shall be several (and not joint and several); each Lender shall only be obligated to fund its Percentage of the Loan. No Lender shall be responsible for the failure of any other Lender to perform its obligation to advance its Percentage of the Loan hereunder, and the Commitment of any Lender shall not be increased or decreased as a result of the failure by any other Lender to perform its obligation to advance its Percentage of the Loan hereunder. The Loan is not a revolving credit loan, and Borrower is not entitled to any readvances of any portion of the Loan which it may (or is otherwise required to) prepay pursuant to the provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1.2. <u>Amount of Loan</u>**. The maximum amount of the Loan shall be the lesser of (i) $122,655,000.00, and (ii) sixty-five percent (65.0%) of the cumulative "As-Is" values of the Properties as determined pursuant to the Appraisals obtained by Administrative Agent prior to execution hereof. Borrower shall receive only one (1) disbursement hereunder in respect of the Loan and any amount borrowed and repaid hereunder in respect of the Loan may not be reborrowed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1.3. <u>The Note</u>**. The Loan shall be evidenced by a Promissory Note or Promissory Notes in the form of Exhibit C, in the aggregate Loan Amount, executed by Borrower and payable to the order of each Lender in the amount of its Commitment, in evidence of the Loan (as the same may hereafter be amended, supplemented, restated, increased, extended or consolidated from time to time, collectively, the "**Note**" or "**Notes**") and shall be repaid in accordance with the terms of this Agreement and the Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1.4. <u>Use of Proceeds</u>**. Borrower shall use proceeds of the Loan to (i) recapitalize the Property, including return of equity to investors, (ii) pay costs and expenses incurred in connection with the closing of the Loan, as approved by Administrative Agent, and (iii) retain the balance, if any.

## <u>Section 2.2. Interest Rate</u>.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2.1. <u>Interest Rate</u>**. Except as herein provided with respect to interest accruing at the Default Rate, interest on the principal balance of the Loan outstanding from time to time shall accrue at a variable rate per annum equal to the Interest Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2.2. <u>Default Rate</u>**. During the existence of an Event of Default, the outstanding principal balance of the Loan and, to the extent permitted by law, overdue interest in respect of the Loan, shall accrue interest at the Default Rate, calculated from the date the Default occurred which led to such an Event of Default without regard to any grace or cure periods contained herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2.3. <u>Interest Calculation</u>**. Interest on the outstanding principal balance of the Loan shall be calculated by multiplying (a) the actual number of days elapsed in the period for which the calculation is being made by (b) a daily rate based on a three hundred sixty (360) day year (that is, the Interest Rate or the Default Rate, as then applicable, expressed as an annual rate divided by 360) by (c) the outstanding principal balance. Borrower acknowledges this will result in a higher rate of interest than if interest were calculated based on a 365-366-day year and waives any right to object to said basis of calculation. The accrual period for calculating interest due on each Monthly Payment Date shall be the calendar month immediately prior to such Monthly Payment Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2.4. <u>Manner of Borrowing Loan</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Notice to Administrative Agent</u>. Borrower shall notify Administrative Agent by 10:00 a.m. (Chicago time) at least three (3) Business Days before the date on which Borrower requests that Administrative Agent make an advance of the Loan.

&nbsp;&nbsp;&nbsp;&nbsp;78580509.10 ------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Notice to the Lenders</u>. The Administrative Agent shall give prompt telephonic, telecopy or other telecommunication notice to each Lender of any notice from Borrower received pursuant to Section 2.2.4(a) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>LIBOR Loan</u>. Except as expressly provided in <u>Section 2.2.5</u> and <u>Section 2.2.6</u>, the Loan shall at all times be a LIBOR Rate Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2.5. <u>Unavailability of Deposits, Inability to Ascertain or Inadequacy of LIBOR</u>**. If on or prior to the first day of any Interest Period for any LIBOR Rate Loans, the conditions set forth in <u>Section 2.2.6(a)</u> have not occurred and:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Administrative Agent determines (which determination shall be conclusive and binding on Borrower) that deposits in U.S. Dollars (in the applicable amounts) are not being offered to it in the interbank Eurodollar market for such Interest Period, or that by reason of circumstances affecting the interbank Eurodollar market adequate and reasonable means do not exist for ascertaining the applicable LIBOR Rate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Administrative Agent determines (which determination shall be conclusive and binding on Borrower) that the introduction of or any change in or in the interpretation of any law, rule, regulation or guideline (whether or not having the force of law), makes it unlawful, or any central bank or other Governmental Authority asserts that it is unlawful, for Lenders to continue or maintain the Loan as a LIBOR Rate Loan, or to convert the Loan into a LIBOR Rate Loan of a certain duration; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Required Lenders advise the Administrative Agent that the LIBOR Rate as determined by the Administrative Agent will not adequately and fairly reflect the cost to such Lenders of funding their LIBOR Rate Loans for such Interest Period,

then the Administrative Agent shall forthwith give written notice thereof to Borrower and the Lenders, whereupon until the Administrative Agent notifies Borrower that the circumstances giving rise to such suspension no longer exist, the obligations of the Lenders to make LIBOR Rate Loans shall be suspended, and the Loan shall automatically convert into an Alternative Base Rate Loan as of the date set forth by the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2.6. <u>Effect of Benchmark Transition Event</u>**. Notwithstanding anything to the contrary herein or in any other Loan Document (and any Rate Management Agreement shall be deemed not to be a "Loan Document" for the purposes of this Section 2.2.6):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Replacing LIBOR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) On March 5, 2021, the Financial Conduct Authority ("**FCA**"), the regulatory supervisor of USD LIBOR's administrator ("**IBA**"), announced in a public statement the future cessation or loss of representativeness of overnight/Spot Next, 1-month, 3-month, 6-month and 12-month LIBOR Index Rate tenor settings. On the earlier of (i) the date that all Available Tenors of the LIBOR Index Rate have either permanently or indefinitely ceased to be provided by IBA or have been announced by the FCA pursuant to public statement or publication of information to be no longer representative and (ii) the Early Opt-in Effective Date, if the then-current Benchmark is the LIBOR Rate, the Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Loan Document in respect of any setting of such Benchmark on such day and all subsequent settings without any amendment to, or further action or consent of any other party to this Agreement or any other Loan Document. If the Benchmark Replacement is SOFR, all interest payments will be payable on a monthly basis.

&nbsp;&nbsp;&nbsp;&nbsp;78580509.10 ------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Subject to the proviso below in this paragraph, if a Term SOFR Event has occurred in respect to the then-current Benchmark, then the applicable Benchmark Replacement will replace the then-current Benchmark for all purposes hereunder or under any Loan Document in respect of such Benchmark setting and subsequent Benchmark settings, without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document; provided that, this clause (a)(ii) shall not be effective until 30 days after the Administrative Agent has delivered to the Lenders and the Borrower a Term SOFR Notice (or such later date as the Administrative Agent may select for effectiveness in the Term SOFR Notice). For the avoidance of doubt, the Administrative Agent shall not be required to deliver a Term SOFR Notice after a Term SOFR Event and may elect or not elect to do so in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Replacing Future Benchmarks</u>*.* Upon the occurrence of a Benchmark Transition Event, the Benchmark Replacement will replace the then-current Benchmark for all purposes hereunder and under any Loan Document in respect of any Benchmark setting at or after 5:00 p.m. on the fifth (5th) Business Day after the date notice of such Benchmark Replacement is provided to Borrower and the Lenders without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document so long as the Administrative Agent has not received, by such time, written notice of objection to such Benchmark Replacement from Lenders comprising the Required Lenders. At any time that the administrator of the then-current Benchmark has permanently or indefinitely ceased to provide such Benchmark or such Benchmark has been announced by the regulatory supervisor for the administrator of such Benchmark pursuant to public statement or publication of information to be no longer representative of the underlying market and economic reality that such Benchmark is intended to measure and that representativeness will not be restored, the Borrower may revoke any request for a borrowing of, conversion to or continuation of Loans to be made, converted or continued that would bear interest by reference to such Benchmark until the Borrower's receipt of written notice from the Administrative Agent that a Benchmark Replacement has replaced such Benchmark, and, failing that, the Borrower will be deemed to have converted any such request into a request for a borrowing of or conversion to Alternative Base Rate Loans. During the period referenced in the foregoing sentence, the component of the Alternative Base Rate based upon the Benchmark will not be used in any determination of the Alternative Base Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Benchmark Replacement Conforming Changes</u>*.* In connection with the implementation and administration of a Benchmark Replacement, the Administrative Agent will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Notice Standards for Decisions and Determination</u>*.* The Administrative Agent will promptly notify in writing the Borrower and the Lenders of (i) the implementation of any Benchmark Replacement, and (ii) the effectiveness of any Benchmark Replacement Conforming Changes. Any determination, decision or election that may be made by the Administrative Agent or, if applicable, any Lender (or group of Lenders) pursuant to this Section 2.2.6, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action or any selection, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party to this Agreement or any other Loan Document, except, in each case, as expressly required pursuant to this <u>Section 2.2.6</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Unavailability of Tenor of Benchmark</u>*.* At any time (including in connection with the implementation of a Benchmark Replacement), (i) if the then-current Benchmark is a term rate (including Term SOFR or LIBOR Rate), then the Administrative Agent may remove any tenor of such Benchmark

&nbsp;&nbsp;&nbsp;&nbsp;78580509.10 ------

that is unavailable or non-representative for Benchmark (including Benchmark Replacement) settings and (ii) the Administrative Agent may reinstate any such previously removed tenor for Benchmark (including Benchmark Replacement) settings.

## <u>Section 2.3. Loan Payments</u>.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3.1. <u>Payment Before Maturity Date</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Interest</u>. Commencing on the first Monthly Payment Date after the Closing Date, and on each Monthly Payment Date thereafter, Borrower shall pay to Administrative Agent, monthly in arrears, interest on the outstanding principal balance of the Loan at the Interest Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Intentionally Omitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Late Payment Charge</u>. If any principal, interest or any other sum due under the Loan Documents, other than the payment of principal due on the Maturity Date, is not paid by Borrower within five (5) days after the date on which it is due, Borrower shall pay to Administrative Agent for the benefit of the Lenders upon demand a late charge ("**Late Charge**") in an amount equal to the lesser of five percent (5%) of such unpaid sum or the maximum amount permitted by applicable law in order to defray the expense incurred by Lenders in handling and processing such delinquent payment and to compensate Lenders for the loss of the use of such delinquent payment. Any such amount shall be secured by the Security Instrument and the other Loan Documents. Such late fee is in addition to any other rights and remedies of Lenders hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3.2. <u>Payment on Maturity Date</u>**. Borrower shall pay to Administrative Agent on the Maturity Date the outstanding principal balance of the Loan, all accrued and unpaid interest and all other amounts due hereunder and under the Note, the Security Instrument and the other Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3.3. <u>Extension of Maturity Date</u>***.* Borrower shall have the right, at its option, to extend the Maturity Date to (i) September 30, 2027 (the "**First Extended Maturity Date**"), and (ii) September 30, 2028 (the "**Second Extended Maturity Date**"), by delivering a written request for consent to such extension to Administrative Agent in the form of Exhibit F attached hereto, at least thirty (30), but not more than one hundred twenty (120) days, prior to the Initial Maturity Date or First Extended Maturity Date, as applicable. Borrower's request to extend the Maturity Date until the First Extended Maturity Date or Second Extended Maturity Date (each such period, an "**Extension Period**") will be granted upon the satisfaction of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At the time of the request and on the Initial Maturity Date or First Extended Maturity Date, as applicable, there is no Default or Event of Default under this Agreement or any other Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon the earlier of (i) delivery of written notice by Administrative Agent to Borrower that all conditions for the extension of the Maturity Date as set forth in this Section 2.3.3 have been met (or waived) and (ii) the first day of the applicable Extension Period, Borrower pays to Administrative Agent (x) with respect to the extension until the First Extended Maturity Date, an extension fee in an amount equal to 0.10% of the Loan Amount, and (y) with respect to the extension until the Second Extended Maturity Date, an extension fee in an amount equal to 0.10% of the Loan Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) With respect to the extension of the Maturity Date to the First Extended Maturity Date and Second Extended Maturity Date, as applicable, on the Initial Maturity Date and the First Extended Maturity Date, as applicable, Borrower has demonstrated to the satisfaction of Administrative Agent that the Debt Yield is at least 8.5%, calculated as of the last day of the calendar month immediately preceding the date

&nbsp;&nbsp;&nbsp;&nbsp;78580509.10 ------

that Borrower delivers the subject extension notice. Borrower shall have the right to cause such test to be satisfied by either (i) paying down the outstanding principal balance of the Loan to the principal amount at which such Debt Yield test would be satisfied on or before the applicable Maturity Date, or (ii) if acceptable to Administrative Agent in its sole discretion, paying to Administrative Agent the Extension Deposit as additional collateral for the Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Borrower has demonstrated to the satisfaction of Administrative Agent that the LTV Ratio shall not be greater than 62% as of the first day of each such Extension Period (which, if elected by Administrative Agent, may be verified by Appraisals of the Property at Borrower's cost acceptable to Administrative Agent with respect to the exercise of the first extension option, and may be verified by the most recent Appraisals then available to Administrative Agent with respect to the exercise of the second extension option). Borrower shall have the right to cause such test to be satisfied by either (i) paying down the outstanding principal balance of the Loan to the principal amount at which such LTV Ratio test would be satisfied on or before the applicable Maturity Date, or (ii) if acceptable to Administrative Agent in its sole discretion, paying to Administrative Agent the Extension Deposit as additional collateral for the Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) At the time of the request for extension of the Maturity Date and as of the Initial Maturity Date, and the First Extended Maturity Date, as applicable, the WALT for all of the Properties (calculated in the aggregate) shall be four (4) years or greater, as reasonably determined by Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The extension of the Maturity Date shall have been documented to Administrative Agent's reasonable satisfaction by Borrower and Guarantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) If required by Administrative Agent with respect to the extension of the Maturity Date to the First Extended Maturity Date, Administrative Agent shall have received updated title reports, judgment and lien searches with respect to the Property and Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) If required by Administrative Agent, Administrative Agent shall have received certified authority documents of Borrower and Guarantor (or a certificate that no changes have occurred since Closing) and an authorizing resolution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Receipt and satisfactory review by Administrative Agent of evidence satisfactory to Administrative Agent demonstrating Guarantor's satisfaction of the Guarantor Financial Covenants as of the Initial Maturity Date and the First Extended Maturity Date, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Borrowers (or an individual Borrower designated by Borrowers), at their sole cost and expense, shall have entered into and will maintain in full force and effect a Rate Management Agreement or Rate Management Agreements (i) having a term for a period of not less than the Extension Period, (ii) in an aggregate notional amount equal to not less than seventy-five percent (75.0%) of the outstanding principal balance of the Loan, and (iii) otherwise satisfying the requirements of Section 2.10.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Borrower shall have paid all reasonable out-of-pocket costs and expenses incurred by Administrative Agent in connection with such extension of the Maturity Date, including Administrative Agent's reasonable attorneys' fees and costs.

Within thirty (30) days of receipt of any extension request and the certifications and other documents and information required for such extension, Administrative Agent shall notify Borrower in writing as to whether or not Borrower has met the conditions for the requested extension.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3.4. <u>Place and Application of Payments</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;78580509.10 ------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All payments of principal of and interest on the Loan, and of all other Debt payable by Borrower under this Agreement and the other Loan Documents, shall be made by Borrower to the Administrative Agent by no later than 1:00 p.m. (Chicago time) on the due date thereof at the office of the Administrative Agent in Chicago, Illinois (or such other location as the Administrative Agent may designate to Borrower), for the benefit of the Lender(s) entitled thereto. Any payments received after such time shall be deemed to have been received by the Administrative Agent on the next Business Day. All such payments shall be made in U.S. Dollars, in immediately available funds at the place of payment, in each case without set-off or counterclaim. The Administrative Agent will promptly thereafter cause to be distributed like funds relating to the payment of principal or interest on the Loan and like funds relating to the payment of any other amount payable to any Lender to such Lender, in each case to be applied in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Unless the Administrative Agent shall have received notice from Borrower prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders hereunder that Borrower will not make such payment, the Administrative Agent may assume that Borrower has made such payment on such date in accordance herewith and may (but shall not be required to) in reliance upon such assumption, distribute to the applicable Lenders the amount due. With respect to any payment that the Administrative Agent makes to any Lender or any counterparty to a Rate Management Agreement as to which Administrative Agent determines (in its sole and absolute discretion) that any of the following applies (such payment referred to as the "**Rescindable Amount**"): (1) Borrower has not in fact made the corresponding payment to the Administrative Agent; (2) the Administrative Agent has made a payment in excess of the amount(s) received by it from Borrower either individually or in the aggregate (whether or not then owed); or (3) the Administrative Agent has for any reason otherwise erroneously made such payment; then each Lender and counterparty to a Rate Management Agreement that received a Rescindable Amount severally agrees to repay to the Administrative Agent forthwith on demand the Rescindable Amount so distributed to such Person, in immediately available funds with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to Administrative Agent, at the greater of the Federal Funds Rate and a rate determined by Administrative Agent in accordance with banking industry rules on interbank compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If at any time insufficient funds are received by and available to Lenders to pay fully all amounts of principal, interest and fees then due hereunder, such funds shall be applied (i) first, towards payment of fees, indemnities and expense reimbursements then due hereunder, (ii) second, towards payment of interest and Late Charges then due hereunder, and (iii) third, towards payment of principal then due hereunder and Swap Obligations on a pari passu basis. Notwithstanding the foregoing, (x) during the existence of an Event of Default, Administrative Agent shall have the right to apply repayments and proceeds of collateral to the Debt in any order, in its sole discretion, and (y) funds from, and proceeds of Collateral owned by, any Person directly or indirectly liable for a Rate Management Obligation and that was not an "eligible contract participant" as defined in the Commodity Exchange Act at the time such Rate Management Obligation was incurred may not be used to satisfy such Rate Management Obligation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3.5. <u>Account Debit</u>**. During the existence of an Event of Default, Borrower hereby irrevocably authorizes Administrative Agent to charge any of Borrower's deposit accounts maintained with Administrative Agent for the amounts from time to time necessary to pay any then due Debt; provided that Borrower acknowledges and agrees that Administrative Agent shall not be under an obligation to do so and Administrative Agent shall not incur any liability to Borrower or any other Person for Administrative Agent's failure to do so.

&nbsp;&nbsp;&nbsp;&nbsp;78580509.10 ------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3.6. <u>Taxes</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Payments Free of Withholding</u>. Any and all payments by or on account of any obligation of Borrower under any Loan Document shall be made without deduction or withholding for any Taxes, except as required by applicable Law. If any applicable Law (as determined in the good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of any Tax from any such payment by a Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable Law and, if such Tax is an Indemnified Tax, then the sum payable by Borrower shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section 2.3.6) the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Indemnification by Borrower</u>. Borrower shall indemnify each Recipient, within ten (10) days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section 2.3.6) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to Borrower by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Indemnification by Lenders</u>. Each Lender shall severally indemnify the Administrative Agent, within ten (10) days after demand therefor, for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that Borrower has not already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of Borrower to do so), (ii) any Taxes attributable to such Lender's failure to comply with the provisions of Section 9.1 relating to the maintenance of a Participant Register, and (iii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this Section 2.3.6(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Evidence of Payments</u>. If Borrower pays any Taxes, it shall deliver to the Administrative Agent official tax receipts evidencing that payment or certified copies thereof, if any, or such other evidence of payment reasonably satisfactory to the Administrative Agent on or before the thirtieth day after payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>U.S. Withholding Tax Exemptions</u>. Each Lender that is not a United States person (as such term is defined in Section 7701(a)(30) of the Code) shall submit to Borrower and the Administrative Agent on or before the date the initial Loan Advance is made hereunder or, if later, the date such person becomes a Lender hereunder, two duly completed and signed copies of (i) either IRS Form W-8BEN, or any successor form (entitling such Lender to a complete exemption from withholding under the Code on all amounts to be received by such Lender, including fees, pursuant to the Loan Documents and the Debt) or IRS Form W-8ECI, or any successor form (relating to all amounts to be received by such Lender, including fees, pursuant to the Loan Documents and the Debt), or (ii) solely if such Lender is claiming exemption

&nbsp;&nbsp;&nbsp;&nbsp;78580509.10 ------

from U.S. withholding tax under Section 871(h) or 881(c) of the Code with respect to payments of "portfolio interest," an IRS Form W-8BEN, or any successor form, and a certificate representing that such Lender is not a bank for purposes of Section 881(c) of the Code, is not a ten (10) percent shareholder (within the meaning of Section 871(h)(3)(B) of the Code) of Borrower and is not a controlled foreign corporation related to Borrower (within the meaning of Section 864(d)(4) of the Code). Each Lender that is a United States person (as such term is defined in Section 7701(a)(30) of the Code) shall submit to Borrower and the Administrative Agent on or before the date the initial Loan Advance is made hereunder or, if later, the date such person becomes a Lender hereunder, two duly completed and signed originals of IRS Form W-9 certifying that such Lender is not subject to U.S. federal backup withholding tax. Thereafter and from time to time, each Lender shall submit to Borrower and the Administrative Agent such additional duly completed and signed copies of one or the other of such IRS Forms (or any successor forms) and such other certificates or documentation as may be (i) requested by Borrower in a written notice, directly or through the Administrative Agent, to such Lender and (ii) required or reasonably necessary establish an exemption or reduction of withholding taxes on payments in respect of all amounts to be received by such Lender, including fees, pursuant to the Loan Documents or the Debt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>FATCA Documentation</u>. If a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA, such Lender shall deliver to Borrower and the Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by Borrower or the Administrative Agent such documentation prescribed by applicable law and such additional documentation reasonably requested by Borrower or the Administrative Agent as may be necessary for Borrower and the Administrative Agent to comply with their obligations under FATCA and to determine the amount to deduct and withhold from such payment under FATCA, if any. Solely for purposes of this Section 2.3.6(f), "FATCA" shall include any amendments made to Sections 1471 through 1474 of the Code after the date of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Requirement to Update Forms</u>. Each Lender agrees that if any form, certification or documentation it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form, certification or documentation or promptly notify Borrower and the Administrative Agent in writing of its legal inability to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Payment of Other Taxes by the Borrower</u>. Borrower shall timely pay to the relevant Governmental Authority in accordance with applicable law, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Survival</u>. Each party's obligations under this Section shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under any Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3.7. <u>Funding Indemnity</u>**. Upon: (i) if the Loan is then a LIBOR Rate Loan, any prepayment of the Loan on any day that is not the last day of the relevant Interest Period (regardless of the source of such prepayment and whether voluntary, by acceleration or otherwise), (ii) any failure by Borrower to make any payment of principal on any LIBOR Rate Loan when due (whether by acceleration or otherwise), or (iii) any acceleration of the maturity of a LIBOR Rate Loan as a result of the occurrence of any Event of Default hereunder, Borrower shall pay an amount ("**LIBOR Breakage Fee**"), as calculated by any Lender, equal to the amount of any losses, expenses and liabilities (including, without limitation, any loss of margin and anticipated profits) that such Lender may sustain as a result of such default or payment. Borrower understands, agrees and acknowledges that: (A) such Lender does not have any obligation to purchase, sell and/or match funds in connection with the use of the LIBOR Rate as a basis for calculating the rate of

&nbsp;&nbsp;&nbsp;&nbsp;78580509.10 ------

interest at any such times as the Loan is a LIBOR Rate Loan, (B) the LIBOR Rate may be used merely as a reference in determining such rate, and (C) Borrower has accepted the LIBOR Rate as a reasonable and fair basis for calculating the LIBOR Breakage Fee and other funding losses incurred by such Lender. Borrower further agrees to pay the LIBOR Breakage Fee and other funding losses, if any, whether or not a Lender elects to purchase, sell and/or match funds. Borrower shall pay such Lender all LIBOR Breakage Fees within five (5) days following such Lender's request for payment of such fees. If any Lender makes such a claim for compensation, it shall provide to Borrower, with a copy to the Administrative Agent, a certificate setting forth the amount of such loss, cost or expense in reasonable detail (including an explanation of the basis for and the computation of such loss, cost or expense) and the amounts shown on such certificate shall be deemed prima facie correct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3.8. <u>Increased Costs</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Increased Costs Generally</u>. If any Change in Law shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or credit extended or participated in by, any Lender (except any reserve requirement reflected in the Adjusted LIBOR Rate);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) subject any Lender to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses (b) through (d) of the definition of Excluded Taxes, and (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) impose on any Lender or the London interbank market any other condition, cost or expense (other than Taxes) affecting this Agreement or the Loan made by such Lender or participation therein;

and the result of any of the foregoing shall be to increase the cost to such Lender of making, converting to, continuing or maintaining the Loan or of maintaining its obligation to make the Loan, or to reduce the amount of any sum received or receivable by such Lender hereunder (whether of principal, interest or otherwise), then, upon request of such Lender, Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender for such additional costs incurred or reduction suffered directly as a consequence of credit extended or participated in by such Lender in connection with this Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Capital Requirements</u>. If any Lender determines that any Change in Law affecting such Lender or any lending office of such Lender or such Lender's holding company, regarding capital or liquidity requirements, has or would have the effect of reducing the rate of return on such Lender's capital or on the capital of such Lender's holding company, if any, as a consequence of this Agreement, the credit extended in accordance with the Commitment of the Lender or the Loan to a level below that which such Lender or such Lender's holding company could have achieved but for such Change in Law (taking into consideration such Lender's policies and the policies of such Lender's holding company with respect to capital adequacy), then from time to time Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender or such Lender's holding company for any such reduction suffered; provided, however, no Lender shall assess Borrower for such amounts unless such Lender is so assessing its similarly-situated borrowers generally.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Certificates for Reimbursement</u>. A certificate of a Lender setting forth the amount or amounts necessary to compensate it or its holding company, as the case may be, as specified in paragraph (a) or (b) of this Section, and delivered to Borrower, shall be conclusive absent manifest error. Borrower

&nbsp;&nbsp;&nbsp;&nbsp;78580509.10 ------

shall pay such Lender the amount shown as due on any such certificate within ten (10) Business Days after receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Delays in Requests</u>. Failure or delay on the part of a Lender to demand compensation pursuant to this Section shall not constitute a waiver of such Lender's right to demand such compensation; <u>provided</u> that Borrower shall not be required to compensate a Lender pursuant to this Section for any increased costs incurred or reductions suffered more than six months prior to the date that such Lender notifies the Borrower of the Change in Law giving rise to such increased costs or reductions, and of such Lender's intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the six-month period referred to above shall be extended to include the period of retroactive effect thereof).

## <u>Section 2.4. Prepayments</u>. The Loan is pre-payable at par (in whole but not in part) at any time subject to three (3) Business Days' written notice to Administrative Agent provided that if Borrower prepays the Loan prior to the third (3 <sup>rd</sup>) anniversary of the Closing Date (whether by voluntary prepayment by Borrower, by reason of the occurrence of an Event of Default, acceleration of the Loan or otherwise), Borrower shall be required to pay (a) a prepayment premium (the " Prepayment Fee ") equal to (i) 1.0% of the amount prepaid if the prepayment is made prior to the first (1 <sup>st</sup>) anniversary of the Closing Date, (ii) 0.5% of the amount prepaid if the prepayment is made on or after the first (1 <sup>st</sup>) anniversary of Closing Date and before the second (2 <sup>nd</sup>) anniversary of the Closing Date, and (iii) 0.25% of the amount prepaid if the prepayment is made on or after the second anniversary of Closing Date and before the third (3 <sup>rd</sup>) anniversary of the Closing Date, and (b) all hedging products breakage costs; <u>provided</u> <u>that</u> with the exception of hedging products breakage costs, no prepayment premium shall be due with respect to any prepayment in whole or in part as a result of Administrative Agent's application of Net Property Proceeds or Net Condemnation Proceeds.

## <u>Section 2.5. Substitution of Lenders</u>. In the event (a) Borrower receives a claim from any Lender for compensation under Section 2.3.6 or Section 2.3.8, (b) any Lender is then a Defaulting Lender, or (c) a Lender fails to consent to an amendment or waiver requested under Section 12.4 at a time when the Required Lenders have approved such amendment or waiver (any such Lender referred to in clause (a), (b), or (c) above being hereinafter referred to as an " Affected Lender "), Borrower may, in addition to any other rights Borrower may have hereunder or under applicable law, require, at its expense, any such Affected Lender to assign, at par, without recourse, all of its interest, rights (other than its existing rights to payments pursuant to Section 2.3.6 or Section 2.3.8), and obligations hereunder (including all of its Commitments and the Loan and other amounts at any time owing to it hereunder and the other Loan Documents) to an Eligible Assignee specified by Borrower that shall assume such obligations, provided that (i) such assignment shall not conflict with or violate any law, rule or regulation or order of any court or other Governmental Authority, (ii) Borrower shall have paid to the Affected Lender all monies (together with amounts due such Affected Lender under Section 2.3.7 as if the portion of the Loan owing to it were prepaid rather than assigned) other than such principal owing to it hereunder, and the assignee Lender shall have paid to the Affected Lender the principal portion of the Loan owing to it hereunder; provided however, that in the case of Borrower's replacement of a Defaulting Lender for failure to fund its Percentage of the Loan hereunder, the assignee or Borrower, as the case may be, shall holdback from such amounts payable to such Defaulting Lender and pay directly to Administrative Agent, any payments due to Administrative Agent or the Non-Defaulting Lenders by Defaulting Lender under this Agreement, (iii) the assignment is entered into in accordance with, and subject to the consents required by, Section 9.2 (provided any assignment fees and reimbursable expenses due thereunder shall be paid by Borrower), and (iv) in the case of any such assignment resulting from a claim for payments required to be made pursuant to Section 2.3.6 or compensation under Section 2.3.8, such assignment will result in a reduction in such payments or compensation. A Lender shall not be required to make any such assignment and delegation if, prior thereto,

&nbsp;&nbsp;&nbsp;&nbsp;78580509.10 ------

## as a result of a waiver by such Lender or otherwise, the circumstances entitling Borrower to require such assignment and delegation cease to apply.

## <u>Section 2.6. Defaulting Lenders</u>. Anything contained herein to the contrary notwithstanding, in the event that any Lender at any time is a Defaulting Lender, then the following provisions shall apply for so long as the Defaulting Lender Period exists with respect to such Defaulting Lender:
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Voting Rights</u>. Such Defaulting Lender shall be deemed not to be a "Lender" for purposes of voting on any matters (including the granting of any consents or waivers) with respect to any of the Loan Documents and such Defaulting Lender's Commitments shall be excluded for purposes of determining "Required Lenders" (provided that the foregoing shall not permit an increase in such Lender's Commitments or an extension of the maturity date of such Lender's portion of the Loan or other Debt without such Lender's consent).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Loan Prepayments; Fees; Commitments</u>. (i) To the extent permitted by applicable law, until such time as the Defaulting Lender Excess with respect to such Defaulting Lender shall have been reduced to zero, any voluntary prepayment of the Loan shall, if the Administrative Agent so directs at the time of making such voluntary prepayment, be applied to the portion of the Loan of other Lenders as if such Defaulting Lender had no Loan outstanding; (ii) such Defaulting Lender's Commitments and outstanding portion of the Loan shall be excluded for purposes of calculating any commitment fee payable to Lenders in respect of any day during any Defaulting Lender Period with respect to such Defaulting Lender, and such Defaulting Lender shall not be entitled to receive any fee with respect to such Defaulting Lender's Commitment in respect of any Defaulting Lender Period with respect to such Defaulting Lender; and (iii) the utilization of Commitments as of any date of determination shall be calculated as if such Defaulting Lender had funded all portions of the Loan of such Defaulting Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Option to Fund Deficiency</u>. If a Lender fails to fund its portion of any Loan advance, in whole or in part, within three (3) Business Days after delivery of notice under Section 2.2.4(b), the Non-Defaulting Lenders shall have the right, but not the obligation, in their respective, sole and absolute discretion, to fund all or a portion of such deficiency (the amount so funded by any such Non-Defaulting Lenders being referred to herein as a "**Special Advance**") to Borrower. In such event the Defaulting Lender and Borrower severally agree to pay to Administrative Agent for payment to the Non-Defaulting Lenders making the Special Advance, forthwith on demand such amount with interest thereon, for each day from and including the date such amount is made available to Borrower to but excluding the date of payment to Administrative Agent, at (i) in the case of the Defaulting Lender, the greater of the Federal Funds Rate and a rate determined by Administrative Agent in accordance with banking industry rules on interbank compensation or (ii) in the case of Borrower, the interest rate applicable to a LIBOR Rate Loan with a one (1) month Interest Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No Increase in Commitments</u>. No Commitment of any Lender shall be increased or otherwise affected, and, except as otherwise expressly provided in this Section 2.6, performance by Borrower of its obligations hereunder and the other Loan Documents shall not be excused or otherwise modified as a result of the operation of this Section 2.6. The rights and remedies against a Defaulting Lender under this Section 2.6 are in addition to other rights and remedies which Borrower may have against such Defaulting Lender and which the Administrative Agent or any Lender may have against such Defaulting Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Option to Purchase Future Commitments</u>. The Non-Defaulting Lenders shall have the right, but not the obligation, in their respective, sole and absolute discretion, to acquire for no cash consideration (pro rata, based on the respective Commitments of those Lenders electing to exercise such right), Defaulting Lender's Commitment to fund future Loan Advances (the "**Future Commitment**").

&nbsp;&nbsp;&nbsp;&nbsp;78580509.10 ------

Upon any such purchase of the Defaulting Lender's Future Commitment, the Defaulting Lender's share in future Loan advances and its rights under the Loan Documents with respect thereto shall terminate on the date of purchase, and the Defaulting Lender shall promptly execute all documents reasonably requested to surrender and transfer such interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Replacement of Defaulting Lender By Required Lenders</u>. The Required Lenders may, upon notice to the Defaulting Lender and Administrative Agent, require the Defaulting Lender to assign and delegate, without recourse (in accordance with, and subject to the consents required by, Section 9.2) all its interests, rights and obligations hereunder (including all of its Commitments and the Loan and other amounts owing to it hereunder and the other Loan Documents) to an Eligible Assignee that shall assume such obligations; provided that (i) the Defaulting Lender shall have received payment of an amount equal to the outstanding principal portion of the Loan owing to it hereunder, accrued interest thereon, accrued fees and all other amounts payable to it hereunder from the assignee (to the extent of such outstanding principal and accrued interest and fees) or Borrower (in the case of all other amounts); and (ii) Administrative Agent shall have received payment of any amounts owing by such Defaulting Lender to the Administrative Agent or the other Non-Defaulting Lenders under this Agreement. The Defaulting Lender shall not be required to make any such assignment and delegation if, prior thereto, such Lender shall cease to be a Defaulting Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Cessation of Defaulting Lender Status</u>. A Lender shall cease to be a Defaulting Lender only upon (i) the payment of all amounts due and payable by such Defaulting Lender to Administrative Agent or any other Lender under this Agreement; (ii) the payment of any damages and out-of-pocket costs and expenses including reasonable attorneys' fees suffered by Borrower as a result of such Defaulting Lender's default hereunder (including, without limitation, interest at the Alternative Base Rate plus three percent (3.0%) per annum on any portion of draw requests funded by Borrower with equity); (iii) the confirmation by the Lender to Administrative Agent and Borrower in writing that the Lender will comply with all of its funding obligations under this Agreement; and (iv) the circumstances described in clause (d) of the definition of "Defaulting Lender" do not exist. An assignment by a Lender of its rights and obligations under this Agreement shall not in and of itself cause the Lender to cease to be a Defaulting Lender.

## <u>Section 2.7. Lending Offices</u>. Each Lender may, at its option, elect to make its portion of the Loan hereunder at the branch, office or affiliate specified on the appropriate signature page hereof (each a " Lending Office ") for each type of Loan available hereunder or at such other of its branches, offices or affiliates as it may from time to time elect and designate in a written notice to Borrower and the Administrative Agent. To the extent reasonably possible, a Lender shall designate an alternative branch or funding office with respect to its LIBOR Rate Loans to reduce any liability of Borrower to such Lender under Section 2.3.8 or to avoid the unavailability of LIBOR Rate Loans under Section 2.2.5, so long as such designation is not otherwise disadvantageous to the Lender.

## <u>Section 2.8. Release of Individual Properties</u>. Administrative Agent and Lenders will release of record (any such release, a " Partial Release ") an Individual Property from the Lien of the applicable Security Instrument and other Loan Documents in connection with a Bona Fide Third Party Sale of such Individual Property, upon Borrower's request and satisfaction of all the following conditions:
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Borrower's request for the Partial Release shall be given to Administrative Agent in writing no later than thirty (30) days preceding the date such Partial Release is anticipated to occur;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No Default or Event of Default shall exist; provided, however, the foregoing condition may be waived by Administrative Agent in its reasonable discretion if Administrative Agent determines that the Partial Release shall cure the applicable Default or Event of Default, and in such event, the Partial Release will not be required to be made in connection with a Bona Fide Third Party Sale;

&nbsp;&nbsp;&nbsp;&nbsp;78580509.10 ------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) After giving effect to the Partial Release, the Debt Yield shall not be less than the greater of (i) eight percent (8.0%), and (ii) the lesser of (x) the Debt Yield immediately prior to the Partial Release, and (y) nine percent (9.0%), in each case as evidenced by a Compliance Certificate delivered by Borrower and accepted by Administrative Agent and based on Net Operating Income as of the end of the calendar month immediately preceding the date of calculation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) After giving effect to the Partial Release, the ratio (expressed as a percentage) of the outstanding principal balance of the Loan to the "as-is" appraised value of the Remaining Properties, shall be less than or equal to sixty-five percent (65%), and if required by Administrative Agent in its sole discretion, based on new Appraisals obtained by Administrative Agent at Borrower's cost at the time of the Partial Release);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) After giving effect to the Partial Release, there shall be at least seven (7) Remaining Properties and the Principal Balance shall not be less than $50,000,000.00.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Borrower shall have paid to Administrative Agent an amount equal to the Partial Release Payment Amount, which amount will be applied to the Debt in accordance with <u>Section 2.3.4</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Borrower shall deliver an endorsement to the Title Insurance Policy, if available, at Borrower's expense insuring the priority of the applicable Security Instruments as a first Lien on the Remaining Property in accordance with all of the provisions of the Title Insurance Policy (and updating the Title Insurance Policy with no additional title matters other than those recorded in connection with the Partial Release);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Borrower shall have paid or reimbursed Administrative Agent for all actual expenses incurred by Administrative Agent in connection with the Partial Release (including title insurance costs, recording costs, and reasonable attorneys' fees);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Borrower shall submit partial release instruments, prepared at Borrower's expense, in form and substance satisfactory to Administrative Agent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Upon Administrative Agent's request, Borrower shall have provided (i) a true and complete copy of the purchase and sale agreement and settlement statement evidencing such sale, and (ii) evidence and documentation satisfactory to Administrative Agent that all required notices have been given and consents obtained in connection with the proposed Partial Release, including the consent of Guarantor.

If a Partial Release is requested by Borrower for reasons other than in connection with a Bona Fide Third Party Sale, which may include a request for a Partial Release in order to cure a Cash Management Period, such Partial Release shall be approved or disapproved by Administrative Agent in its reasonable discretion, and if approved, shall be subject to the satisfaction of the other conditions for a Partial Release set forth in this Section 2.8.

## <u>Section 2.9. Substitution of Individual Properties</u>. In connection with a Partial Release pursuant to and satisfying the conditions set forth in Section 2.8, Borrower may replace an Individual Property with a new medical office property (the " Replacement Individual Property ") as collateral for the Loan (the " Partial Substitution "), subject to the following conditions:
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Partial Substitution shall be subject to Lenders' credit approval process, and shall be subject to Administrative Agent's and each Lender's consent in their sole discretion;

&nbsp;&nbsp;&nbsp;&nbsp;78580509.10 ------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Partial Substitution shall occur simultaneously with the Partial Release of an Individual Property under Section 2.8;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Borrower's request for the Partial Substitution shall be given to Administrative Agent in writing no later than sixty (60) days preceding the date such Partial Substitution is anticipated to occur, and Borrower shall not request a Partial Substitution more than two (2) times during the term of the Loan or with respect to more than five (5) Individual Properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No Default or Event of Default shall exist (provided, however, the foregoing condition may be waived by Administrative Agent in its reasonable discretion if Administrative Agent determines that the Partial Substitution shall cure the applicable Default or Event of Default);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) After giving effect to the Partial Substitution, the Debt Yield shall not be less than the lesser of (x) the Debt Yield immediately prior to the Partial Substitution, and (y) nine percent (9.0%), in each case as evidenced by a Compliance Certificate delivered by Borrower and accepted by Administrative Agent and based on Net Operating Income as of the end of the calendar month immediately preceding the date of calculation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) After giving effect to the Partial Substitution, the WALT for all of the Properties (calculated in the aggregate) shall be not less than the WALT immediately prior to the Partial Substitution, as reasonably determined by Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) With respect to the owner of the Replacement Individual Property (the "**Replacement Borrower**") and the Replacement Individual Property, Borrowers' representations and warranties contained in this Agreement and in all other Loan Documents shall be true and correct in all material respects as of the date of the Partial Substitution (with any representations and warranties that were made as of the Closing Date being deemed made with respect to the Replacement Individual Property and the Replacement Borrower as of the date of the Partial Substitution);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Borrower shall have satisfied all of the requirements in Schedule 2.1(B).

## <u>Section 2.10. Interest Rate Protection Agreement</u>. Borrower shall, or shall cause the Holdings Borrower to, enter into a Swap Agreement and/or an Interest Rate Cap Agreement, either of which chosen by Borrower, in its sole discretion, in accordance with the terms and conditions set forth below as applicable.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Swap Agreement</u>. Within ten (10) days after the Closing Date, Borrower shall, or shall cause Holdings Borrower to, at its sole cost and expense, obtain and thereafter maintain an interest rate swap pursuant to one or more Rate Management Agreements upon such terms and subject to such conditions as shall be reasonably acceptable to Administrative Agent (i) having a term ending no earlier than the Maturity Date, and (ii) in an aggregate notional amount equal to not less than 75% of the Loan Amount (when combined with the notional amount of any Interest Rate Cap Agreement entered into pursuant to Section 2.10(b)). Any prepayment, acceleration, reduction, increase or any change in the term of the Loan will not alter the notional amount of the Rate Management Agreements, which will remain in full force and effect notwithstanding any such prepayment, acceleration, reduction, increase or change, subject to the terms of the Rate Management Agreements. The Rate Management Agreements shall be collaterally assigned to Administrative Agent for the benefit of the Lenders, and the counterparty thereto shall execute and deliver an acknowledgement to such assignment, which acknowledgement shall include such counterparty's agreement to pay directly to Administrative Agent all sums payable by such counterparty pursuant to such Rate Management Agreement. Any such Rate Management Agreement shall be provided by Administrative Agent (or an Affiliate of Administrative Agent) or a bank or other financial

&nbsp;&nbsp;&nbsp;&nbsp;78580509.10 ------

institution whose long-term debt rating is acceptable to Administrative Agent. Except in connection with a Secured Rate Management Agreement, the Property shall not be pledged or encumbered in any manner to secure any obligation under any Rate Management Agreement. Upon repayment in full of the Loan, the assignment of the Rate Management Agreement shall be released.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Interest Rate Cap Agreement</u>. Within ten (10) days after the Closing Date, Borrower shall, or shall cause Holdings Borrower to, enter into, make all payments required under, and satisfy all conditions precedent to the effectiveness of, an Interest Rate Cap Agreement that satisfies all of the following conditions (such Interest Rate Cap Agreement together with any extension or replacement thereof being referred to herein as the "**Interest Rate Cap Agreement**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Interest Rate Cap Agreement is with BMO Capital Markets or another bank or other financial institution approved in writing by Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Interest Rate Cap Agreement (x) has a term ending no earlier than the Maturity Date, (y) has a notional amount not less than 75% of the Loan Amount (when combined with the notional amount of any swap agreement entered into pursuant to Section 2.10(a)), and (z) shall have the effect of capping the LIBOR Rate at no greater than 3.0% per annum;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Interest Rate Cap Agreement provides that the only obligation of Borrower thereunder is the making of a single payment upon the execution and delivery thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Borrower's interest in such Interest Rate Cap Agreement shall be collaterally assigned to Administrative Agent for the benefit of the Lenders pursuant to documentation reasonably satisfactory to Administrative Agent in form and substance, and the counterparty to such Interest Rate Cap Agreement has executed and delivered to Administrative Agent an acknowledgment of such assignment, which acknowledgment shall be reasonably satisfactory to Administrative Agent in form and substance; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) In connection with each Interest Rate Cap Agreement entered into pursuant to this Section 2.10(b), Borrower shall use all commercially reasonable efforts to obtain and deliver to Administrative Agent an opinion of counsel from counsel for the counterparty (which counsel may be in-house counsel for the counterparty) which shall provide, in relevant part, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the counterparty is duly organized, validly existing, and in good standing under the laws of its jurisdiction of incorporation or organization and has the organizational power and authority to execute and deliver, and to perform its obligations under, the Interest Rate Cap Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the execution and delivery of the Interest Rate Cap Agreement by the counterparty, and any other agreement which the counterparty has executed and delivered pursuant thereto, and the performance of its obligations thereunder have been and remain duly authorized by all necessary action and do not contravene any provision of its certificate of incorporation or by-laws (or equivalent organizational documents) or any law, regulation or contractual restriction binding on or affecting it or its property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) all consents, authorizations and approvals required for the execution and delivery by the counterparty of the Interest Rate Cap Agreement, and any other agreement which the counterparty has executed and delivered pursuant thereto, and the performance of its obligations thereunder have been obtained and remain in full

&nbsp;&nbsp;&nbsp;&nbsp;78580509.10 ------

force and effect, all conditions thereof have been duly complied with, and no other action by, and no notice to or filing with any Governmental Authority or regulatory body is required for such execution, delivery or performance; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) the Interest Rate Cap Agreement, and any other agreement which the counterparty has executed and delivered pursuant thereto, has been duly executed and delivered by the counterparty and constitutes the legal, valid and binding obligation of the counterparty, enforceable against the counterparty in accordance with its terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors' rights generally, and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Execution of Documents</u>. Borrower shall promptly execute and deliver to the counterparty of the Interest Rate Cap Agreement such confirmations and agreements as may be requested by such counterparty in connection with such Interest Rate Cap Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Downgrade of Counterparty</u>. In the event of any downgrade, withdrawal or qualification of the rating of the issuer of the Interest Rate Cap Agreement or other Rate Management Agreement required hereunder, such that it ceases to qualify as an "Acceptable Counterparty", Borrower shall, or shall cause Holdings Borrower to, within thirty (30) days following receipt of written notice from Administrative Agent of such downgrade, withdrawal or qualification either (i) replace the Interest Rate Cap Agreement or such other Rate Management Agreement with a replacement Interest Rate Cap Agreement or Rate Management Agreement from an Acceptable Counterparty (with terms identical to the Interest Rate Cap Agreement or Rate Management Agreement being replaced, or otherwise approved by Administrative Agent in its reasonable discretion), or (ii) provide a guaranty in form reasonably satisfactory to Administrative Agent from a guarantor who is an Eligible Counterparty. For purposes hereof, an "Acceptable Counterparty" is a bank or other financial institution which has (a) a long-term unsecured debt rating of "A-" or higher by S&P; and (b) a long-term unsecured debt, issuer or counterparty rating of not less than "A3" by Moody's.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>No Other Rate Management Agreements</u>. Neither Borrower nor Holdings Borrower shall enter into any interest rate swap agreement, interest rate cap agreement, interest rate collar agreement or other similar agreement pertaining to fluctuations in interest rates, or any swaps, caps or collar agreements or similar arrangements providing for protection against fluctuations in currency exchange rates, either generally or under specific contingencies, other than the Rate Management Agreements contemplated by this Section 2.10, and not for speculative purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Obligation to Pay Interest on the Loan</u>. No Rate Management Agreement shall alter, impair, restrict, limit or modify in any respect the obligation of Borrower to pay interest on the Loan as and when the same becomes due and payable in accordance with the provisions of the Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>No Obligation of Administrative Agent or Lenders</u>. Borrower agrees that Administrative Agent and Lenders shall not have any obligation, duty or responsibility to Borrower or any other Person by reason of, or in connection with, any Rate Management Agreement (including any duty to provide or arrange any Rate Management Agreement, to consent to any mortgage or pledge of the Property or any portion thereof as security for Borrower's performance of its obligations under any Rate Management Agreement, or to provide any credit or financial support for the obligations of Borrower or any other Person thereunder or with respect thereto).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Receipts from Rate Management Agreements</u>. Borrower shall cause all payments made by the counterparty to any Rate Management Agreement to be deposited into the Central Account, to be applied in accordance with Article 8 of this Agreement.

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## <u>Section 2.11. Replacement of Guarantor</u>. Borrower's shall have the right to request a replacement of IPC with the Inland Fund as the "Guarantor" under the Guaranty and the Environmental Indemnity, which request shall be granted by Administrative Agent and Lenders subject to satisfaction of the following conditions: (i) no Default or Event of Default shall exist at the time of such request or the proposed effective date of such replacement, (ii) the Inland Fund shall satisfy the Guarantor Financial Covenants, as evidenced by a Compliance Certificate delivered to and approved by Administrative Agent, together with such additional supporting information requested by Administrative Agent to support such determination of compliance with the Guarantor Financial Covenants, and (iii) the Inland Fund, as Guarantor, shall execute and deliver to Administrative Agent for the benefit of the Lenders, the Replacement Third Party Agreements. Upon such replacement of IPC as Guarantor as set forth in this Section 2.11, Administrative Agent, on behalf of itself and the Lenders, shall execute and deliver to IPC a release in form reasonably acceptable to IPC and Administrative Agent, releasing IPC from all liabilities under the Guaranty and the Environmental Indemnity to the extent arising or accruing from and after the effective date of the Replacement Third Party Agreements executed and delivered by the Fund.
III. REPRESENTATIONS AND WARRANTIES

## <u>Section 3.1. Borrower Representations</u>. Borrower hereby represents and warrants to Administrative Agent and the Lenders as follows:
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.1. <u>Organization</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Borrower is a limited liability company duly formed and validly existing in the State of Delaware and in good standing under the laws of the State, with requisite power and authority to (i) incur the Debt, and (ii) execute, deliver and perform this Agreement and the other Loan Documents to which it is a party. Borrower is not a "foreign person" within the meaning of Section 1445(f)(3) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The organizational chart attached as <u>Schedule 3.1.1</u> hereto, relating to Borrower, Guarantor and certain Affiliates and other parties, is true, complete and correct on and as of the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.2. <u>Validity of Loan Documents; Enforceability</u>**. This Agreement and the other Loan Documents have been duly authorized, executed and delivered by Borrower and constitute the legal, valid and binding obligation of Borrower, enforceable against Borrower in accordance with their respective terms, except as such enforcement may be limited by Debtor Relief Laws, and by general principles of equity. The Loan Documents are not subject to any right of rescission, set-off, counterclaim or defense by Borrower, 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.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.4. <u>Litigation; Court Orders</u>**. No Borrower has received written notice of or knows of any action, suit, proceeding or investigation pending or, to Borrower's knowledge, threatened in writing against Borrower or the Property in any court or by or before any other Governmental Authority which, if adversely determined, could result in a Material Adverse Change. Borrower is not in default with respect to any order

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or decree of any court or any order, regulation or demand of any Governmental Authority, which default could result in a Material Adverse Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.5. <u>Consents</u>**. No consent, approval, authorization or order of any court or Governmental Authority is required for the execution, delivery and performance by Borrower of, or compliance by Borrower with, this Agreement, any other Loan Document, or the consummation of the transactions contemplated hereby, other than those which have been obtained by Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.6. <u>Title</u>**. Borrower has (i) good, marketable and insurable fee simple title to the real property comprising part of the Property (other than the Ground Lease Property) owned by it as described in <u>Schedule 8</u>, (ii) good, marketable and insurable leasehold title, subject to the Ground Lease, to the Ground Lease Property as described in <u>Schedule 8</u>, and (iii) good title to the balance of the Property owned by it, in each case free and clear of all Liens whatsoever except the Permitted Encumbrances. Borrower has all right, power and authority to transfer each item of Collateral upon which it purports to grant a Lien under the Security Instrument or any other Loan Document. The 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 first priority lien on the Property, subject only to Permitted Encumbrances, and (b) a perfected security interest in and to, and a perfected collateral assignment of, all personalty (including the Leases), all in accordance with the terms thereof, in each case subject only to any Permitted Encumbrances. To Borrower' s knowledge, there are no Liens or claims which have been filed for work, labor or materials affecting the Property which are or may be liens prior to, or equal or coordinate with, the lien of the Security Instrument. The Assignment of Leases creates a valid assignment of, or a valid security interest in, certain rights under the Leases, subject only to a license granted to Borrower to exercise certain rights and to perform certain obligations of the lessor under the Leases, including the right to operate the Property. None of the Permitted Encumbrances, individually or in the aggregate, materially and adversely interfere with the benefits of the security intended to be provided by the Security Instrument and this Agreement, materially and adversely affect the value of the Property, impair the use or operations of the Property or impair Borrower's ability to pay its obligations in a timely manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.7. <u>No Plan Assets</u>**. As of the date hereof and throughout the term of the Loan (a) Borrower is not and will not be an "employee benefit plan," as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended ("**ERISA**"), whether or not subject to Title I of ERISA, or a "plan" as defined in Section 4975(e)(1) of the Code, whether or not subject to Section 4975 of the Code, (b) none of the assets of Borrower constitutes or will constitute "plan assets" of one or more plans described in the foregoing clause (a) within the meaning of Section 3(42) of ERISA, as modified by U.S. Department of Labor Regulation 29 C.F.R. Section 2510.3-101 (the "**Plan Assets Regulation**"), and (c) transactions by or with Borrower are not and will not be subject to any state statute regulating investments of, or fiduciary obligations with respect to, governmental plans, as defined in Section 3(32) of ERISA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.8. <u>Compliance</u>**. Borrower and the Property and the use thereof comply in all material respects with all applicable Laws, including, without limitation, building and zoning ordinances and codes and Prescribed Laws. Borrower is not in default or violation of any order, writ, injunction, decree or demand of any Governmental Authority, the violation of which could result in a Material Adverse Change. Borrower has not committed any act which may give any Governmental Authority the right to cause Borrower to forfeit the Property or any part thereof or any monies paid in performance of Borrower's obligations under any of the Loan Documents. None of the Individual Properties, nor any Borrower, nor to Borrower's knowledge, Manager or any Tenant, is in violation of any Healthcare Laws or the subject of any Healthcare Investigation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.9. <u>Financial Information</u>**. All financial data, including, without limitation, the statements of cash flow and income and operating expense, balance sheets and net worth statements, that have been delivered to Administrative Agent in respect of the Property and Guarantor (i) are true, complete and correct in all material respects, (ii) accurately represent the financial condition of the Property or Guarantor, as applicable, as of the date of such reports, and (iii) have been prepared in accordance with the Accounting Rules throughout the periods covered, except as disclosed therein. Borrower does not have any contingent liabilities, liabilities for taxes, unusual forward or long-term commitments or unrealized or anticipated losses from any unfavorable commitments that are known to Borrower and reasonably likely to result in a Material Adverse Change. Since the date of the financial statements, there has been no Material Adverse Change in the financial condition, operations or business of Borrower or the Property from that set forth in said financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.10. <u>Condemnation</u>**. No Condemnation or other proceeding has been commenced or, to Borrower's knowledge, is contemplated with respect to all or any portion of the Property or for the relocation of roadways providing access to the Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.11. <u>Utilities and Public Access</u>**. The Property has rights of access to public ways and is served by water, sewer, sanitary sewer and storm drain facilities adequate to service the Property for its current and intended uses. All public utilities necessary to the continued use and enjoyment of the Property as presently used and enjoyed are located either in the public right of way abutting the Property (which are connected so as to serve the Property without passing over other property) or in recorded easements serving the Property and such easements are set forth in and insured by the Title Insurance Policy. All roads necessary for the full utilization of the Property for its current purpose have been completed and dedicated to public use and accepted by all governmental authorities or are the subject of access easements for the benefit of the Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.12. <u>Separate Lots</u>**. The Property is comprised of one (1) or more parcels which constitute separate tax lots and do not constitute a portion of any other tax lot not a part of the Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.13. <u>Assessments</u>**. To Borrower's knowledge, there are no pending or proposed special or other assessments for public improvements or otherwise affecting the Property, nor are there any contemplated improvements to the Property that may result in such special or other assessments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.14. <u>Employees</u>**. Borrower has no employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.15. <u>Assignment of Leases</u>**. The Assignment of Leases creates a valid assignment of, or a valid security interest in, Borrower's rights under the Leases, subject only to a license granted to Borrower to exercise certain rights and to perform certain obligations of the lessor under the Leases, including the right to operate the Property. No Person other than Administrative Agent for the benefit of the Lenders has any interest in or assignment of the Leases or any portion of the Rents due and payable or to become due and payable thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.16. <u>Licenses</u>**. To Borrower's knowledge, all permits and approvals, including, without limitation, certificates of occupancy and any Healthcare Permits required by any Governmental Authority for the use, occupancy and operation of the Property in the manner in which the Property is currently being used, occupied and operated have been obtained and are in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.17. <u>Insurance</u>**. Borrower has obtained and has delivered to Administrative Agent original or certified copies of all of the Policies, with all premiums prepaid thereunder, reflecting the insurance coverages, amounts and other requirements set forth in this Agreement. No claims have been made under

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any of the Policies by Borrower, and to Borrower's knowledge, no Person, including Borrower, has done, by act or omission, anything which would impair the coverage of any of the Policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.18. <u>Flood Zone</u>**. None of the Properties are located in an area identified by the Federal Emergency Management Agency as an area having special flood hazards, or, if any portion of the Property is, or will be, located within such area, Borrowers have obtained the insurance prescribed herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.19. <u>Physical Condition</u>**. Other than the Required Repairs described in Schedule 4.1.6, the Property, including, without limitation, all buildings, improvements, parking facilities, sidewalks, storm drainage systems, roofs, plumbing systems, HVAC systems, fire protection systems, electrical systems, equipment, elevators, exterior sidings and doors, landscaping, irrigation systems and all structural components, are in good condition, order and repair in all material respects; there exist no structural or other material defects or damages in the Property, whether latent or otherwise, and Borrower has not received notice from any insurance company or bonding company of any defects or inadequacies in the Property, or any part thereof, which would adversely affect the insurability of the same or cause the imposition of extraordinary premiums or charges thereon or of any termination or threatened termination of any policy of insurance or bond.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.20. <u>Hazardous Substances</u>**. Except as specifically set forth in the phase I environmental reports delivered to Administrative Agent prior to the Closing Date with respect to the Property: (a) the Property is in a clean and safe condition, and, except for materials used in the ordinary course of construction, maintenance and operation of the Property, is free of all Hazardous Substances and is in compliance with all applicable Laws; (b) neither Borrower nor, to the best knowledge of Borrower, any other Person, has ever caused or permitted any Hazardous Substance to be placed, held, located or disposed of on, under, at or in a manner to affect the Property, or any part thereof, and the Property has never been used (whether by Borrower or, to the best knowledge of Borrower, by any other Person) for any activities involving, directly or indirectly, the use, generation, treatment, storage, transportation, or disposal of any Hazardous Substance; (c) neither the Property nor Borrower is subject to any existing, pending, or, to Borrower's knowledge, threatened investigation or inquiry by any Governmental Authority, and the Property is not subject to any remedial obligations under any applicable Laws pertaining to health or the environment; and (d) there are no underground tanks, vessels, or similar facilities for the storage, containment or accumulation of any Hazardous Substance of any sort on, under or affecting the Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.21. <u>Boundaries</u>**. All of the improvements which were included in determining the appraised value of the Property lie wholly within the boundaries and building restriction lines of the Property, and no improvements on adjoining properties encroach upon the Property, and no easements or other encumbrances affecting the Property encroach upon any of the improvements, so as to affect the value or marketability of the Property except those which are insured against by title insurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.22. <u>Leases</u>**. Borrower represents and warrants to Administrative Agent and Lenders with respect to the Leases that: (a) the rent roll for each Individual Property attached hereto as <u>Schedule 3.1.22</u> is true, complete and correct and no Individual Property is subject to any Leases other than the Leases described in <u>Schedule 3.1.22</u>, (b) the Leases identified on <u>Schedule 3.1.22</u> are in full force and effect and there are no defaults thereunder by either party, (c) true, correct and complete copies of all Leases, as amended, have been delivered to Administrative Agent, and there are no oral agreements with respect thereto, (d) no Rent (including security deposits) has been paid more than one (1) month in advance of its due date, (e) all work to be performed by Borrower under each Lease has been performed as required and has been accepted by the applicable Tenant, and all leasing commissions owed by Borrower with respect to each Lease have been paid, (f) 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, and (g) all security deposits are being held in accordance with Laws.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.23. <u>Filing and Recording Taxes</u>**. All transfer taxes, deed stamps, intangible taxes or other amounts in the nature of transfer taxes required to be paid under applicable Laws in connection with the transfer of the Property to Borrower have been paid or are being paid simultaneously herewith. All mortgage, mortgage recording, stamp, intangible or other similar tax required to be paid under applicable Laws in connection with the execution, delivery, recordation, filing, registration, perfection or enforcement of any of the Loan Documents, including, without limitation, the Security Instrument, have been paid or are being paid simultaneously herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.24. <u>Single Purpose</u>**. Borrower is and shall at all times be a Special Purpose Entity. Borrower shall not directly or indirectly make any change, amendment or modification to its organizational documents, or otherwise take any action which could result in Borrower not being a Special Purpose Entity. A Special Purpose Entity shall have the meaning set forth on <u>Schedule 3.1.24</u> hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.25. <u>Taxes and Assessments</u>**. All taxes and governmental assessments due and owing in respect of the Property have been paid, or an escrow of funds in an amount sufficient to cover such payments has been established hereunder or are insured against by the title insurance policy to be issued in connection with the Security Instrument. Borrower has filed (or has obtained effective extensions for filing) all federal, state and local tax returns required to be filed and has paid or made adequate provision for the payment of all federal, state and local taxes, charges and assessments payable by Borrower. Borrower believes that its tax returns (if any) properly reflect the income and taxes of Borrower for the periods covered thereby, subject only to reasonable adjustments required by the Internal Revenue Service or other applicable tax authority upon audit. To Borrower's knowledge, there are no pending or proposed special or other assessments for public improvements or other similar matters affecting the Property, nor are there any contemplated improvements to the Property that may result in such special or other assessments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.26. <u>Solvency</u>**. Borrower (a) has not entered into the transaction or any Loan Document with the actual intent to hinder, delay, or defraud any creditor, and (b) received reasonably equivalent value in exchange for its obligations under the Loan Documents. As of the date of this Agreement, Borrower is solvent after giving effect to all borrowings contemplated by the Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.27. <u>Federal Reserve Regulations</u>**. 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 Regulations T, U or X of the Board of Governors of the Federal Reserve System.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.28. <u>Bank Holding Company</u>**. Borrower is not a "bank holding company" or a direct or indirect subsidiary of a "bank holding company" as defined in the Bank Holding Company Act of 1956, as amended, or Regulation Y thereunder of the Board of Governors of the Federal Reserve System.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.29. <u>No Other Debt</u>**. Borrower has not borrowed or received debt financing (other than permitted pursuant to this Agreement) that has not been heretofore repaid in full.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.30. <u>Investment Company Act</u>**. 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; or (b) subject to any other federal or state law or regulation which purports to restrict or regulate its ability to borrow money.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.31. <u>Full and Accurate Disclosure</u>**. To Borrower's knowledge, no information contained in this Agreement, the other Loan Documents, or any written statement furnished by or on behalf of Borrower pursuant to the terms of this Agreement contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements contained herein or therein not misleading in light of the circumstances under which they were made. There is no fact or circumstance presently known to Borrower

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which has not been disclosed to Administrative Agent and which materially adversely affects, or is reasonably likely to materially adversely affect, the Property, Borrower or its business, operations or condition (financial or otherwise). The information included in the Beneficial Ownership Certification is true and correct in all respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.32. <u>Reserved</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.33. <u>Management Agreement</u>**. Borrower has delivered to Administrative Agent a true and correct copy of the Management Agreement. The Management Agreement is the only management agreement in existence with respect to the operation or management of the Property. No breach, default or event of default has occurred or is continuing under the Management Agreement, and no fact, circumstance, condition or event has occurred and is continuing which, with the giving of notice or passage of time or both, would constitute or result in a breach, default or event of default thereunder. The Management Agreement is in full force and effect and is valid and enforceable in all respects, subject to the effects of bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors' rights generally.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.34. <u>Material Agreements</u>**. Borrower has delivered to Administrative Agent true and correct copies of all Material Agreements. None of the Material Agreements have been amended or modified except pursuant to a written agreement which has been delivered to Administrative Agent. To Borrower's knowledge, no breach, default or event of default has occurred or is continuing under any Material Agreement, and no fact, circumstance, condition or event has occurred and is continuing which, with the giving of notice or passage of time or both, would constitute or result in a breach, default or event of default thereunder. Each Material Agreement is in full force and effect and is valid and enforceable in all respects, subject to the effects of bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors' rights generally. Borrower is not a party to and neither it nor the Property is bound by any material agreement, document or instrument which is binding upon the Property other than the Loan Documents, the Leases listed on the Rent Roll, the Permitted Encumbrances, the Material Agreements, the Management Agreement, and such party's organizational documents, true, correct and complete copies of which have been delivered to Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.35. <u>Rate Management Agreements</u>**. Borrower has not entered into any Rate Management Agreement in connection with the Loan, except as permitted or required hereunder. On each date on which a Rate Management Agreement is entered into (a) Borrower will be deemed to represent to Administrative Agent and Lenders that Borrower is a Qualified ECP Borrower and (b) each guarantor, if any, of any of Borrower's Swap Obligations that are included as part of the indebtedness and/or obligations the payment and/or performance of which are guaranteed by such guarantor is an "eligible contract participant," as such term is defined in the Commodity Exchange Act. Except in connection with a Secured Rate Management Agreement, the Property shall not be pledged or encumbered in any manner to secure any obligation under any Rate Management Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.36. <u>Customer Identification – USA Patriot Act Notice; OFAC</u>**. Administrative Agent hereby notifies Borrower that pursuant to the requirements of the Patriot Act and Administrative Agent's policies and practices, Administrative Agent is required to obtain, verify and record certain information and documentation that identifies Borrower, which information includes the name and address of Borrower and such other information that will allow Administrative Agent to identify Borrower in accordance with the Patriot Act. Borrower represents and covenants that it is not and will not become a person (individually, a "**Prohibited Person**") listed on the OFAC List or otherwise subject to any other prohibitions or restriction imposed by any Prescribed Laws administered by OFAC (collectively the "**OFAC Rules**"). Borrower represents and covenants that it also (a) is not and will not become owned or controlled by a Prohibited Person, (b) is not acting and will not act for or on behalf of a Prohibited Person, (c) intentionally omitted,

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(d) is not providing and will not provide any material, financial or technological support for or financial or other service to or in support of acts of terrorism for a Prohibited Person. Borrower will not transfer any interest in Borrower to or enter into a Lease with a Prohibited Person. Borrower shall immediately notify Administrative Agent if Borrower has knowledge that Guarantor or any member or beneficial owner of Borrower or Guarantor is or becomes a Prohibited Person or is indicted on or arraigned and held over on charges involving money laundering or predicate crimes to money laundering. Borrower covenants to promptly notify the Administrative Agent of any change in the information provided in the Beneficial Ownership Certification that would result in a change to the list of Borrower's beneficial owners identified therein. Borrower will not enter into any Lease or any other transaction or undertake any activities related to the Loan in violation of the Anti-Money Laundering Laws. Borrower shall (A) not use or permit the use of any proceeds of the Loan in any way that will violate either the OFAC Rules or Anti-Money Laundering Laws, (B) comply and cause all of its subsidiaries to comply with applicable OFAC Rules and Anti-Money Laundering Laws, (C) provide information as Administrative Agent may require from time to time to permit Administrative Agent to satisfy its obligations under the OFAC Rules and/or the Anti-Money Laundering Laws, and (D) not engage in or conspire to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the foregoing. Borrower shall immediately notify Administrative Agent after Borrower obtains actual knowledge that any Tenant is a Prohibited Person or (1) is convicted of, (2) pleads *nolo contendere* to, (3) is indicted on, or (4) is arraigned and held over on charges involving money laundering or predicate crimes to money laundering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.37. <u>Business Loan</u>**. The Loan is solely for business and/or investment purposes, and is not intended for personal, family, household or agricultural purposes. Borrower warrants that the proceeds of the Loan shall be used for commercial purposes and stipulates that the Loan shall be construed for all purposes as a commercial loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.38. <u>Ground Lease</u>**. The Ground Lease is in full force and effect and has not been modified, amended or supplemented other than as disclosed to Administrative Agent, Ground Lease Tenant has the right and authority under the Ground Lease to execute the Security Instrument and to encumber its interest therein. No breach, default or event of default has occurred or is continuing on the part of Ground Lease Tenant or any other Person under the Ground Lease, and no fact, circumstance, condition or event has occurred and is continuing which, with the giving of notice or passage of time or both, would constitute or result in a breach, default or event of default thereunder.

## <u>Section 3.2. Survival of Representations</u>. Borrower agrees that all of the representations and warranties set forth in Section 3.1 and elsewhere in this Agreement are true as of the date hereof and, except for matters which have been disclosed by Borrower and approved by Administrative Agent in writing, at all times thereafter. Notwithstanding the foregoing, any representation and warranty which is by its express terms made as of a specific date shall only be deemed made as of said date. All representations and warranties made in this Agreement or any other Loan Document or in any certificate or other document delivered to Administrative Agent and Lenders pursuant to or in connection with this Agreement shall be deemed to have been relied upon by Administrative Agent and Lenders notwithstanding any investigation heretofore or hereafter made by Administrative Agent and Lenders or on their behalf.
IV. BORROWER COVENANTS

## <u>Section 4.1. Borrower Affirmative Covenants</u>. Borrower hereby covenants and agrees with Administrative Agent and the Lenders that:
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.1. <u>Existence; Compliance With Laws</u>**. 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

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(including Healthcare Permits) and franchises and comply with all Laws applicable to it and the Property, including, without limitation, Prescribed Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.2. <u>Real Estate Taxes and Other Charges</u>**. Borrower shall pay or cause to be paid all Real Estate 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. Borrower shall furnish to Administrative Agent receipts for the payment of the Real Estate Taxes and the Other Charges prior to the date the same shall become delinquent. Borrower shall not permit or suffer and shall promptly discharge any lien or charge against the Property. After prior notice to Administrative Agent, Borrower, at its own expense, may contest by appropriate legal proceeding, conducted in good faith and with due diligence, the amount or validity of any Real Estate Taxes or Other Charges, provided that (i) no Default or Event of Default has occurred and remains uncured; (ii) such proceeding shall be permitted under and be conducted in accordance with all applicable statutes, laws and ordinances; (iii) neither the Property nor any part thereof or interest therein will be in danger of being sold, forfeited, terminated, canceled or lost; (iv) Borrower shall promptly upon final determination thereof pay the amount of any such Real Estate 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 Real Estate Taxes or Other Charges from the Property; and (vi) Borrower shall deposit with Administrative Agent cash, or other security as may be approved in writing by Administrative Agent, in an amount equal to one hundred twenty-five percent (125%) of the contested amount, to insure the payment of any such Real Estate Taxes or Other Charges, together with all interest and penalties thereon. Administrative Agent may pay over any such cash or other security held by Administrative Agent to the claimant entitled thereto at any time when, in the reasonable judgment of Administrative Agent, the entitlement of such claimant is established.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.3. <u>Escrow Accounts</u>**. Borrower shall, commencing upon the occurrence of any Cash Management Period, make insurance and tax escrow deposits in accordance with Article VI hereof. All payments deposited in the escrow account, and all interest accruing thereon, are pledged as additional collateral for the Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.4. <u>Litigation</u>**. Borrower shall give prompt notice to Administrative Agent of any litigation or governmental proceedings pending or threatened against Borrower, which if adversely determined, could result in a Material Adverse Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.5. <u>Access to Property</u>**. Borrower shall permit agents, representatives and employees of Administrative Agent and Lenders to inspect the Property or any part thereof at reasonable hours upon reasonable advance notice, subject to the rights of Tenants under Leases, provided, however, that Administrative Agent and Lenders shall use commercially reasonable efforts to minimize interference to the operations of Tenants at the Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.6. <u>Required Repairs</u>**. Each Borrower shall complete or cause the applicable Tenant to complete if the Tenant is responsible to do so under its Lease, each of the repair items described in <u>Schedule 4.1.6</u> (the "**Required Repairs**") with respect to the Individual Property owned by it (or with respect to the Ground Lease Property, leased by it), each to Administrative Agent's reasonable satisfaction, within the time period for the applicable Required Repairs set forth in <u>Schedule 4.1.6</u>, provided that if any of such repair items cannot reasonably be completed within such time period and Borrower (or the applicable Tenant) is diligently working to complete the same, if requested in writing by Borrower, such completion period may be extended in Administrative Agent's reasonable discretion. Without limiting the generality of the foregoing, Borrower shall complete (or cause the applicable Tenant to complete) the Required Repairs (i) free of any claim for mechanic's, materialmens', or any other liens (subject to Borrower's right to contest such liens as set forth in this Agreement), and in accordance with all applicable Laws, and (ii) in

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all material respects in accordance with the plans and specifications for the Required Repairs approved by Administrative Agent, if any, which approval shall not be unreasonably withheld, conditioned or delayed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.7. <u>Further Assurances</u>**. Borrower shall, at Borrower's sole cost and expense, execute and deliver to Administrative Agent such documents, instruments, certificates, assignments and other writings, and do such other acts necessary or desirable, to evidence, preserve and/or protect the collateral at any time securing or intended to secure the obligations of Borrower under the Loan Documents, or to correct any defect, error or omission in any Loan Document, as Administrative Agent may reasonably require, and 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 Administrative Agent shall reasonably require from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.8. <u>Financial Reporting</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Borrower and Guarantor shall keep and maintain or will cause to be kept and maintained proper and accurate books and records, in accordance with the Accounting Rules, reflecting the financial affairs of each Borrower and Guarantor, respectively. Administrative Agent shall have the right from time to time during normal business hours upon reasonable notice to Borrowers to examine such books and records at the office of Borrowers or other Person maintaining such books and records and to make such copies or extracts thereof as Administrative Agent shall desire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As soon as available, and in any event within one hundred twenty (120) days after the end of each Fiscal Year, Borrowers shall furnish, or cause Guarantor to furnish, to Administrative Agent the audited financial statements of Guarantor, including consolidating balance sheet and income statement schedules (without limitation of the foregoing, such consolidating balance sheet and income statement schedules shall at a minimum include the results of IPCAAF MOB Portfolio II, L.L.C.)**.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) As soon as available, and in any event no later than one hundred twenty (120) days after the end of each Fiscal Year, Borrowers shall furnish to Administrative Agent a copy of the balance sheet of each Borrower and Borrowers on a combined basis as of the last day of the Fiscal Year then ended, the statements of income of each Borrower and Borrowers on a combined basis for the Fiscal Year then ended, and the statements of cash flows of Borrowers on a combined basis for the Fiscal Year then ended, and accompanying notes thereto, each in reasonable detail showing in comparative form the figures for the previous Fiscal Year, with such financial statements being certified by an officer of Borrower to the effect that the financial statements have been prepared in accordance with the Accounting Rules and present fairly in accordance with the Accounting Rules the financial condition of Borrowers as of the close of such Fiscal Year and the results of their operations and cash flows for the Fiscal Year then ended. Together with Borrower's annual financial statements, Borrower shall furnish to Administrative Agent a Compliance Certificate in the form of **Exhibit D**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Borrower shall furnish to Administrative Agent on or before the forty-fifth (45<sup>th</sup>) day after the end of each fiscal quarter (based on Borrower's Fiscal Year), the following items:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) quarterly and year-to-date statements of income and expense prepared for such quarter with respect to each Individual Property and collectively for the Properties, and a comparison of the budgeted income and expenses and the actual income and expenses for the quarter and year to date for each Individual Property and collectively for the Properties, if requested by Administrative Agent, together with a detailed explanation of any variances of more than five percent (5.0%) between budgeted and actual amounts for such period and year to date, and a balance sheet for such quarter for each Borrower and Borrowers on a combined basis (all such statements to be prepared in accordance with the Accounting Rules);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a Compliance Certificate in the form of Exhibit D and otherwise satisfactory to Administrative Agent (including without limitation Borrowers' calculation of the Debt Yield);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a current rent roll for each Individual Property (to the extent there is any change from the previously delivered rent roll); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a current aged receivables report for each Individual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If requested by Administrative Agent, Borrower shall request from each tenant at the Property such tenant's current financial statements and shall provide copies of any such financial statements promptly after receipt by Borrower. Borrower shall use commercially reasonable efforts to obtain such tenant financial statements if requested by Administrative Agent, provided that Borrower shall have no obligation to obtain such financial statements if delivery by the tenant is not required under the applicable Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Borrower shall submit an Annual Budget to Administrative Agent not later than thirty (30) days after the commencement of each Fiscal Year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Borrower shall cause Guarantor to furnish all financial information with respect to Guarantor required by Section 7 of the Guaranty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Borrower shall promptly notify Administrative Agent of any material written notice (which shall include any notice of default, regardless of materiality) received by Borrower from Manager or Ground Lease Lessor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Borrower shall furnish to Administrative Agent, within thirty (30) days after filing, signed copies of Borrower's income tax returns (if applicable), and any requests for extensions thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Borrower shall furnish (or cause each Guarantor to furnish) to Administrative Agent, within ten (10) Business Days after request (or as soon thereafter as may be reasonably possible), (x) such further detailed information with respect to the operation of each Individual Property and the financial affairs of each Borrower and Guarantor as may be reasonably requested by Administrative Agent, and (y) information and documentation reasonably requested by Administrative Agent or any Lender for purposes of compliance with applicable "know your customer" requirements under the PATRIOT Act or other applicable anti-money laundering laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) If Borrower fails to timely furnish Administrative Agent with any of the financial information and reports set forth in this Section 4.1.8 within the required time periods, and such failure shall continue for five (5) Business Days after written notice from Administrative Agent, Administrative Agent shall have the right to hire a certified public accounting firm acceptable to Administrative Agent, to prepare such financial information and reports, on an audited basis. The costs and expenses of such accounting firm shall be paid by Borrower within five (5) Business Days after written demand from Administrative Agent, and, to the extent advanced by Administrative Agent and not reimbursed by Borrower prior to the end of such five (5) Business Day period, shall become, with interest thereon from the date advanced by Administrative Agent at the Default Rate, additional Debt of Borrower secured by the Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.9. <u>Title to the Property</u>**. Borrower will warrant and defend the validity and priority of the Liens of the Security Instrument and the Assignment of Leases on the Property against the claims of all Persons whomsoever, subject only to Permitted Encumbrances.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.10. <u>Estoppel Statements</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Borrower shall within five (5) Business Days after request by Administrative Agent, furnish Administrative Agent with a statement, duly acknowledged and certified, stating (i) the unpaid principal amount of the Note, (ii) the Interest Rate of the Note, (iii) the date installments of interest and/or principal were last paid, (iv) any offsets or defenses to the payment of the Debt, if any, and (v) that this Agreement and the other Loan Documents have not been modified or if modified, giving particulars of such modification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Borrower shall use commercially reasonable efforts to obtain from each Tenant and deliver to Administrative Agent, upon request, but not more than one time per calendar year except during the existence of an Event of Default or in connection with an assignment or participation pursuant to Article IX, an estoppel certificate from each Tenant under any Lease containing the required certifications set forth in the tenant Lease, provided that such certificate may be in the form required under such Lease

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Borrower shall use commercially reasonable efforts to obtain and deliver to Administrative Agent, upon request, but not more than once per calendar year except during the existence of an Event of Default or in connection with an assignment or participation pursuant to Article IX, estoppel certificates from each party under any REA, in form and substance reasonably satisfactory to Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.11. <u>Leases</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Borrower shall not enter into any ground lease of the Property other than the Ground Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Ground Lease shall not be amended, terminated or assigned without the prior written consent of Administrative Agent (with respect to amendments only, such consent not to be unreasonably withheld, conditioned or delayed). Borrower shall observe and perform all of its covenants and obligations under the Ground Lease, subject to any applicable grace or cure periods, and shall enforce the terms of the Ground Lease against the Ground Lease Lessor in a commercially reasonable manner. Borrower will keep the Ground Lease in full force and effect during the term thereof and will promptly notify Administrative Agent of any default thereunder by the other party. Borrower shall promptly send to Administrative Agent copies of any and all written notices, communications or demands sent or received by either party under the Ground Lease and any proposed amendments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Without the prior written consent of Administrative Agent (not to be unreasonably withheld or delayed), Borrower and Borrower's agents shall not (i) enter into any Lease, (ii) modify, renew or amend any Lease (or any guaranty of a Lease), (iii) terminate or surrender any Lease (or any guaranty of a Lease), (iv) consent to the sublease or assignment of any Lease if Borrower has the right to withhold consent to the same, or (v) accept any rental payment more than one (1) month in advance of its due date. Any new Lease or modification or amendment to any existing Lease at the Ground Lease Property shall satisfy any requirements of the Ground Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If requested by Administrative Agent, Borrower shall cause the Tenants under any new Lease to execute and deliver a Subordination, Non-Disturbance and Attornment Agreement in Administrative Agent's form, contemporaneously with the execution of such Lease, with such commercially reasonable changes as may be reasonably acceptable to Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Borrower (i) shall observe and perform the obligations imposed upon the lessor under the Leases; (ii) shall use commercially reasonable efforts to enforce the terms, covenants and conditions contained in the Leases upon the part of the lessee thereunder to be observed or performed; (iii) shall not execute any assignment of lessor's interest in the Leases or the Rents (except as contemplated by the Loan

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Documents); and (iv) shall hold all security deposits under all Leases in accordance with Laws. Borrower shall notify Administrative Agent promptly in writing in the event a Tenant commits a material default under a Lease, or delivers notice that Borrower is in default under such Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Borrower shall deliver, or cause Manager to deliver, to Administrative Agent a copy of (i) any Lease, and any amendment, modification, supplement or termination of any such Lease, executed by Borrower after the date hereof, (ii) a copy of any new Lease marked against the Lease form approved by Administrative Agent, and (iii) any consent to a sublease or assignment of a Lease executed by Borrower after the date hereof, within five (5) Business Days after the execution of such document, and in any event within one (1) Business Day after request from Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Notwithstanding Administrative Agent's consent to the Ground Lease, such consent shall not have the effect of modifying or limiting in any respect the representations or covenants of Borrower set forth in the Loan Documents and in the event of any conflict between the provisions of the Ground Lease and the Loan Documents, the Loan Documents shall control as between Borrower, on the one hand, and Administrative Agent and the Lenders on the other.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.12. <u>Material Agreements</u>**. Borrower shall (a) promptly perform and/or observe all of the material covenants and agreements required to be performed and observed by it under each Material Agreement to which it is a party, and use commercially reasonable efforts to preserve and to keep unimpaired its rights thereunder, (b) promptly notify Administrative Agent in writing of the giving of any notice of any default by any party under any Material Agreement of which it is aware and (c) promptly enforce the performance and observance of all of the material covenants and agreements required to be performed and/or observed by the other party under each Material Agreement to which it is a party in a commercially reasonable manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.13. <u>Intentionally Omitted</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.14. <u>Furnishing Reports</u>**. Upon Administrative Agent's request, Borrower shall provide Administrative Agent with copies of all written inspections, reports, test results and other similar information received by Borrower, which in any way relate to the Property or any part thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.15. <u>Alterations</u>**. Without the prior written consent of Administrative Agent, (i) other than the Required Repairs and tenant improvements at the Cedar Park Property pursuant to a Cedar Park Replacement Lease, and tenant improvements at the Starling Physicians – Kensington Property and the Starling Physicians- Lake Street Property, Borrower shall not make any Material Alterations to the Property, and (ii) none of the buildings, structures or other improvements erected or located on the Property shall be removed, demolished or substantially or structurally altered in any material respect without the prior written consent of Administrative Agent, which shall not be unreasonably withheld, and if required by the terms of the Ground Lease, the prior written consent of Ground Lease Lessor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.16. <u>Business and Operations</u>**. Borrower shall continue to engage in the businesses currently conducted by it as and to the extent the same are necessary for the ownership and leasing of the Property. Borrower shall qualify to do business and will remain in good standing under the laws of each jurisdiction as and to the extent the same are required for the ownership and leasing of the related Property. Borrower shall at all times cause the Properties to be maintained as medical office buildings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.17. <u>Condition of Premises</u>**. Borrower shall keep and maintain, or shall cause to be kept and maintained, the Property in good order, condition and repair, reasonable wear and tear and destruction by casualty excepted, and shall make, as and when the same shall become necessary, all structural and non-structural, exterior and interior, ordinary and extraordinary, foreseen and unforeseen, repairs and

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maintenance necessary or appropriate. Borrower shall not suffer or commit any physical waste upon the Property or any portion thereof. Borrower shall cause all repairs, maintenance, rebuilding, replacement or restoration to be (in the commercially reasonable opinion of Administrative Agent) of substantially equivalent quality. Borrower will not, without the prior written consent of Administrative Agent, 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.18. <u>Appraisals</u>**. Administrative Agent shall have the right to obtain a new or updated Appraisal of the Property from time to time. Borrower shall cooperate with Administrative Agent in this regard. Borrower shall pay the reasonable costs for any such Appraisal upon Administrative Agent's request, provided that Borrower shall not be required to pay for more than one Appraisal for any particular Individual Property during the term of the Loan unless an Event of Default exists or if such Appraisal is otherwise required by another provision of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.19. <u>Bank Accounts</u>**. Borrower shall maintain all of its bank accounts with Deposit Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.20. <u>Invalidity of Loan Documents</u>**. If any of the Loan Documents for any reason, other than a partial or full release in accordance with the terms of the Loan Documents, ceases to be in full force and effect or is declared to be null and void by a court of competent jurisdiction, Administrative Agent shall have the option, by written notice of not less than thirty (30) days, to declare the Debt immediately due and payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.21. <u>Financial Covenants</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Minimum Debt Yield</u>. As of the last day of each calendar quarter, the Debt Yield shall be seven and one-half percent (7.50%) or greater, as evidenced by a Compliance Certificate delivered by Borrower and accepted by Administrative Agent. The foregoing covenant is referred to herein as the "**Minimum Debt Yield Covenant**".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Cure Rights</u>. Borrower may, at its option, cure a breach of the Minimum Debt Yield Covenant under <u>Section 4.1.21(a)</u> as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If the Minimum Debt Yield Covenant is breached for any calendar quarter, then such breach will be an Event of Default unless Borrower exercises its cure rights set forth in this subsection (i), which cure rights shall only be available with respect to the earlier to occur of (x) four (4) consecutive breaches of the Minimum Debt Yield Covenant, and (y) five (5) breaches of the Minimum Debt Yield Covenant in the aggregate (which breaches may be for consecutive or non-consecutive quarters) (i.e., a breach of the Minimum Debt Yield Covenant for a fifth (5<sup>th</sup>) consecutive quarter, or for a sixth (6<sup>th</sup>) quarter (whether consecutive or non-consecutive) in the aggregate will not be curable under this subsection (i)). If the Minimum Debt Yield Covenant is breached for any calendar quarter, then in order to cure such breach, within ten (10) Business Days after the date the financial reports and Compliance Certificate required by <u>Section 4.1.8(d</u>) is due, Borrower shall either deposit cash with Administrative Agent or deliver to Administrative Agent a Qualified Letter of Credit, in each case as additional collateral for the Loan (as applicable, the "**Covenant Deposit**"), in such amount that, if applied to reduce the Principal Balance, would result in a Debt Yield of 7.50%, provided that (1) if the Covenant Deposit is in the form of a Qualified Letter of Credit, then the amount of the Qualified Letter of Credit will be re-sized quarterly to the amount that, if applied to reduce the Principal Balance, would result in a Debt Yield of 7.50%, and (2) with respect to the third, fourth and if applicable fifth breach of the Minimum Debt Yield Covenant, the Covenant Deposit shall be in an amount that, if applied to reduce the Principal Balance, would result in a Debt Yield of 8.25%. Administrative Agent will hold the Covenant

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Deposit as cash collateral, without interest. The Covenant Deposit will be applied to the Principal Balance or refunded to Borrower as hereinafter provided. In addition to the foregoing, in lieu of making the Covenant Deposit, on or before the date the Covenant Deposit would be due hereunder, Borrower may cure such breach of the Minimum Debt Yield Covenant by paying down the Principal Balance by an amount that would cause Borrower to be in compliance with such covenants (subject to the payment of any Prepayment Fee and other amounts due hereunder in connection with such prepayment).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If Borrower does not timely cure the Minimum Debt Yield Covenant by either making the Covenant Deposit (as provided in <u>Section 4.1.21(b)(i)</u>) or paying the amount permitted under <u>Section 4.1.21(b)(i</u>) to be applied to the Principal Balance, or if the Minimum Debt Yield Covenant is breached for any determination period for a fifth (5<sup>th</sup>) consecutive quarter or a sixth (6<sup>th</sup>) quarter in the aggregate (excluding in each case the effect of any Covenant Deposit in the determination of whether Borrower has satisfied the Minimum Debt Yield Covenant), then an Event of Default shall be deemed to have occurred and, as applicable, Administrative Agent may draw on the Qualified Letter of Credit and apply the proceeds thereof and any cash Covenant Deposit to the Debt in such order as Administrative Agent elects. If an Event of Default other than with respect to a breach of the Minimum Debt Yield Covenant occurs at any time, then Administrative Agent may draw on the Qualified Letter of Credit and apply the proceeds thereof and any cash Covenant Deposit to the Debt in such order as Administrative Agent elects. Without limiting any of the foregoing, in no event shall any Covenant Deposit or principal prepayment under <u>Section 4.1.21(b)</u> constitute a cure of any Default or the acceptance of a cure or a waiver by Administrative Agent of any Event of Default other than the failure to satisfy the Minimum Debt Yield Covenant as required in <u>Section 4.1.21(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If the Covenant Deposit has not theretofore been applied to the Debt as a result of the occurrence of an Event of Default or application pursuant to subsection (ii) above, and the Minimum Debt Yield Covenant is complied with (without taking into account the Covenant Deposit in the determination of whether Borrower has satisfied the Minimum Debt Yield Covenant) for two (2) consecutive calendar quarter determination periods, the Covenant Deposit shall be returned to Borrower, provided that no Default or Event of Default then exists.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.22. <u>Post Closing Requirements</u>**. Borrowers shall complete each of the post-closing obligations and/or provide to Administrative Agent each of the documents, instruments, agreements and information listed on Schedule 4.1.22 attached hereto as required by such schedule.

## <u>Section 4.2. Borrower Negative Covenants</u>. Borrower covenants and agrees with Administrative Agent and Lenders that:
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2.1. <u>Due on Sale and Encumbrance; Transfers of Interests</u>**. Without the prior written consent of Administrative Agent, Borrower shall not permit or suffer any Transfer to occur, other than a Permitted Transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2.2. <u>Liens</u>**. Borrower shall not create, incur, assume or suffer to exist any Lien on any portion of the Property except for Permitted Encumbrances, and Borrower shall pay when due all claims and demands of mechanics, materialmen, laborers and others which, if unpaid, might result in a Lien on the Property; provided, however, Borrower may contest the validity of such claims and demands so long as (i) no Event of Default exists, (ii) Borrower notifies Administrative Agent in writing that it intends to contest such claim or demand, (iii) Borrower provides Administrative Agent with an indemnity, bond or other security satisfactory to Administrative Agent assuring the discharge of Borrower's obligations for such claims and demands, including interest and penalties, and (iv) Borrower is diligently contesting the same by

&nbsp;&nbsp;&nbsp;&nbsp;78580509.10 ------

appropriate legal proceedings in good faith and at its own expense and concludes such contest prior to the thirtieth (30<sup>th</sup>) day preceding the earlier to occur of the Maturity Date or the date on which the Property is scheduled to be sold for non-payment. If Borrower shall fail promptly either (i) to discharge any such Lien, or (ii) cause such Lien to be insured or bonded over in the manner provided above, Administrative Agent may, at its election (but shall not be required to), procure the release and discharge of any such claim and any judgment or decree thereon and, further, may in its reasonable discretion effect any settlement or compromise of the same, or may furnish such security or indemnity to the issuer of the Title Insurance Policy, and any amounts so expended by Administrative Agent, including premiums paid or security furnished in connection with the issuance of any surety company bonds, shall be deemed to constitute disbursement of the proceeds of the Loan hereunder. In settling, compromising or discharging any claims for lien, Administrative Agent shall not be required to inquire into the validity or amount of any such claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2.3. <u>Material Changes</u>**. Borrower shall not (i) change its name, state of formation or its principal place of business from the address set forth on the first page of this Agreement without first giving Administrative Agent thirty (30) days' prior notice, or (ii) permit or suffer a material amendment or modification of its organizational documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2.4. <u>Additional Debt; Debt Cancellation</u>**. Borrower shall not incur any debt, secured or unsecured, direct or contingent (including guaranteeing any obligation), other than (a) the Debt, and (b) unsecured trade payables incurred in the ordinary course of business of owning and operating the applicable Individual Property in an amount that is normal and reasonable under the circumstances, provided that such debt, with respect to each Borrower, is in an amount that does not exceed, at any time, a maximum aggregate amount of two percent (2.0%) of the Allocated Loan Amount of the Individual Property owned (or with respect to the Ground Lease Property, leased) by such Borrower, and provided that such debt shall not be evidenced by a note and is paid when due (collectively, the "**Permitted Indebtedness**"). No other debt may be secured by the Property, whether senior, subordinate or pari passu. 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2.5. <u>Affiliate Transactions</u>**. Borrower shall not enter into, or be a party to, any transaction with an Affiliate of Borrower or Guarantor except in the ordinary course of business and on terms which are fully disclosed to Administrative Agent in writing in advance and are no less favorable to Borrower or such Affiliate than would be obtained in a comparable arm's-length transaction with an unrelated third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2.6. <u>Zoning</u>**. Borrower shall not initiate or consent to any zoning reclassification of any portion of the Property or seek any variance under any existing zoning ordinance or use or permit the use of any portion of the Property in any manner that could result in such use becoming a non-conforming use under any zoning ordinance or any other applicable land use law, rule or regulation, without the prior consent of Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2.7. <u>No Joint Assessment</u>**. Borrower shall not suffer, permit or initiate the joint assessment of the Property (i) with any other real property constituting a tax lot separate from the Property, and (ii) with any portion of the Property which may be deemed to constitute personal property, or any other procedure whereby the lien of any taxes which may be levied against such personal property shall be assessed or levied or charged to the Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2.8. <u>ERISA</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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 Administrative Agent and Lenders of any of their rights

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under the Note, this Agreement or the other Loan Documents) to be a non-exempt prohibited transaction under ERISA or Section 4975 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Borrower shall deliver to Administrative Agent such certifications or other evidence from time to time throughout the term of the Loan, as requested by Administrative Agent in its reasonable discretion, that (A) Borrower is not an "employee benefit plan" as defined in Section 3(3) of ERISA, whether or not subject to Title I of ERISA, or a "plan" within the meaning of Section 4975(e)(1) of the Code, whether or not subject to Section 4975 of the Code; (B) Borrower is not subject to any state statute regulating investments of, or fiduciary obligations with respect to, governmental plans as defined in Section 3(32) of ERISA; and (C) one or more of the following circumstances is true:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Equity interests in Borrower are publicly offered securities, within the meaning of the Plan Assets Regulation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Direct or indirect investment in Borrower by "benefit plan investors" is not "significant" (each within the meaning of Section 3(42) of ERISA and the Plan Assets Regulation); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Borrower qualifies as an "operating company" or a "real estate operating company" within the meaning of the Plan Assets Regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Borrower further covenants and agrees to protect, defend, indemnify and hold Administrative Agent and each Lender harmless from and against all losses, costs, damages and expenses (including, without limitation, all reasonable attorneys' fees, excise taxes, and costs of correcting any prohibited transaction or obtaining an appropriate exemption) that Administrative Agent or any Lender may incur as a result of Borrower's breach of this Section. This covenant and indemnity shall survive the extinguishment of the lien of the Security Instrument by foreclosure or action in lieu thereof; furthermore, the foregoing indemnity shall supersede any limitations on Borrower's liability under any of the Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2.9. <u>Distributions</u>**. Other than in connection with a return of equity to investors occurring with respect to the advance of the Loan on the Closing Date, Borrower shall not pay any distributions, dividends or other payments or return any capital contributed or internally generated by the Property (collectively, "**Distributions**") to any of its respective partners, members, owners or shareholders or any other Affiliate or make any distribution of assets, rights, options, obligations or securities to any of its respective partners, members, shareholders or owners or any other Affiliate, provided that Borrower may make Distributions of Monthly Excess Cash Flow if the following conditions are satisfied: (i) no Default or Event of Default exists and such Distribution will not cause a Default or Event of Default to occur, (ii) the Property shall have achieved a Debt Yield of 7.75% or greater for one (1) calendar quarter (which may be the calendar quarter ending September 30, 2021 or any calendar quarter thereafter), as evidenced by a Compliance Certificate delivered by Borrower and accepted by Administrative Agent, and (iii) no Cash Management Period exists.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2.10. <u>Material Agreements</u>**. Borrower shall not, without Administrative Agent's prior written consent: (a) enter into, surrender or terminate any Material Agreement to which it is a party (unless the other party thereto is in material default and the termination of such agreement would be commercially reasonable); or (b) modify, change, supplement, alter or amend, or waive or release any of its rights and remedies under, any Material Agreement to which it is a party in any material respect.

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V. INSURANCE, CASUALTY AND CONDEMNATION

## <u>Section 5.1. Insurance</u>.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1.1. <u>Insurance Policies</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Borrower shall obtain and maintain, or cause to be maintained, insurance for Borrower and the Property providing at least the coverages set forth in <u>Schedule 5.1.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All insurance provided for in Section 5.1.1(a) shall be obtained under valid and enforceable policies (collectively, the "**Policies**" or, in the singular, the "**Policy**") and, to the extent not specified above, shall be subject to the approval of Administrative Agent as to deductibles, loss payees and insureds. Not less than ten (10) Business Days prior to the expiration dates of the Policies theretofore furnished to Administrative Agent, certificates of insurance evidencing the Policies accompanied by evidence satisfactory to Administrative Agent of payment of the premiums then due thereunder (the "**Insurance Premiums**"), shall be delivered by Borrower to Administrative Agent. At any time following the date the Policies are first made available to Borrower from the applicable insurance carrier(s), Borrower shall provide Administrative Agent with insurance carrier certified copies of each of such Policies within ten (10) days of Administrative Agent's written request therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any blanket insurance Policy shall specifically allocate to the Property the amount of coverage from time to time required hereunder and shall otherwise provide the same protection as would a separate Policy insuring only the Property in compliance with the provisions of Section 5.1.1(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If at any time Administrative Agent is not in receipt of written evidence that all insurance required hereunder is in full force and effect, Administrative Agent shall have the right, without notice to Borrower, to take such action as Administrative Agent deems necessary to protect its interest in the Property, Administrative Agent may purchase insurance at Borrower's expense to protect Administrative Agent's interests in the Property and to maintain the insurance required by this Agreement. This insurance may, but need not, protect Borrower's interests. The coverage purchased by Administrative Agent may not pay any claim made by Borrower or any claim that is made against Borrower in connection with the Property or any required insurance policy. Administrative Agent will cancel any insurance purchased by Administrative Agent, but only after Borrower provides Administrative Agent with evidence that Borrower has obtained insurance as required by this Agreement. If Administrative Agent purchases insurance for the Property or insurance otherwise required by this Agreement, Borrower will be responsible for the costs of that insurance, including interest and other charges imposed by Administrative Agent in connection with the placement of the insurance, until the effective date of the cancellation or expiration of the insurance. The costs of the insurance shall be paid by Borrower to Administrative Agent within five (5) days after written notice requesting payment thereof, and until paid shall be secured by the Security Instrument, shall bear interest at the Default Rate and shall be added to the Debt. The cost of the insurance may be more than the cost of insurance Borrower is able to obtain on its own.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1.2. <u>Insurance Company</u>**. The Policies shall be issued by financially sound and responsible insurance companies authorized to do business in the state in which the Property is located and having a rating of "A-:VII" or better as established by A.M. Best's Rating Guide.

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## <u>Section 5.2. Casualty and Condemnation</u>.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.2.1. <u>Property</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If all or any part of the Property is damaged or destroyed by fire or other casualty, Borrower shall give immediate written notice to Administrative Agent and notify and make a claim to the insurance carrier. With respect to any such property loss for which Borrower has an insurance claim that exceeds fifteen percent (15%) of the Allocated Loan Amount of the applicable Individual Property, Borrower hereby authorizes and empowers Administrative Agent, at Administrative Agent's option and reasonable discretion as attorney-in-fact for Borrower, to make proof of loss, to adjust and compromise any claim under insurance policies, to appear in and prosecute any action arising from such insurance policies, to collect and receive insurance proceeds, and to deduct therefrom Administrative Agent's actual expenses incurred in the collection of such proceeds; <u>provided</u>, <u>however</u>, that the foregoing authorization and empowerment of Administrative Agent to act as attorney-in-fact for Borrower shall not become effective until the occurrence and during the continuance of a Default or until such time as Borrower fails to diligently pursue the collection of such insurance proceeds in Administrative Agent's reasonable opinion. The foregoing appointment is irrevocable, coupled with an interest, and continuing so long as the Commitments or Debt remain outstanding, and such rights, powers and privileges shall be exclusive to Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As sole loss payee on all policies of property insurance, Administrative Agent shall receive all insurance proceeds from any property loss, and shall hold the same in an interest-bearing account pending disposition in accordance with this Section. Borrower authorizes Administrative Agent to deduct from such insurance proceeds received by Administrative Agent all of Administrative Agent's actual costs and expenses (including, without limitation, reasonable attorneys' fees) incurred in connection with the collection thereof (the remainder of such insurance proceeds being referred to herein as "**Net Property Proceeds**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Administrative Agent shall cause the Net Property Proceeds from any property loss affecting any Individual Property to be disbursed for the cost of reconstruction of the Individual Property if all of the following conditions are satisfied within ninety (90) days after the applicable property loss: (i) Borrower satisfies Administrative Agent that the estimated cost of repairs and reconstruction shall not exceed fifteen percent (15%) of the Allocated Loan Amount of the applicable Individual Property; (ii) no Tenant shall have the right to terminate its Lease as a result of such property loss, or such right shall have been waived in writing, (iii) Borrower satisfies Administrative Agent that the reconstruction can be completed within a reasonable period of time after such property loss (but in no event later than thirty (30) days prior to the Maturity Date) and that after giving effect to such reconstruction the applicable Individual Property will be restored to its condition and with the same permitted legal use as immediately prior to the property loss; (iv) Borrower satisfies Administrative Agent that the Net Property Proceeds are sufficient to pay all costs of reconstruction, and if insufficient, Borrower deposits with Administrative Agent additional funds to make up such insufficiency; (v) Borrower delivers to Administrative Agent all plans and specifications and construction contracts for the work of reconstruction and such plans and specifications and construction contracts are in form and content reasonably acceptable to Administrative Agent and with a contractor acceptable to Administrative Agent; and (vi) Administrative Agent receives an updated Appraisal (x) which shows an LTV Ratio with respect to the applicable Individual Property (based on such property's Allocated Loan Amount) of no more than 65% and (y) which projects stabilized Net Operating Income (based on the updated Appraisal with respect to the affected Individual Property and based on the most recent Appraisals obtained by Administrative Agent with respect to the other Properties) at a level that will result in a Debt Yield (as calculated by Administrative Agent) of not less than 8.5%, in each case after giving effect to the completion of the reconstruction. The disbursement of Net Property Proceeds pursuant to this clause (c) shall be in accordance with Administrative Agent's customary disbursement procedures and shall not be available during the existence of an Event of Default. Any Net Property

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Proceeds not required to reconstruct the Property shall, at Administrative Agent's election, either be applied to the payment of the Debt (in which case such prepayment will not be subject to payment of any Prepayment Fee) or be delivered to Borrower after the delivery to Administrative Agent of final lien waivers for the work of reconstruction or expiration of the lien period for the work of reconstruction. During the existent of an Event of Default or in the event Borrower is unable to satisfy the conditions set forth in sub-clauses (i) through (vi) hereof by the required date, Administrative Agent, shall have the right (but not the obligation) to apply all Net Property Proceeds held by it to the payment of the Debt (in which case such prepayment will not be subject to payment of any Prepayment Fee).Borrower shall have the obligation to promptly and diligently complete the work of reconstruction necessitated by any property loss and restore the Property to the equivalent of its condition immediately prior to such property loss provided that the applicable Net Property Proceeds are made available to Borrower for such purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding anything to the contrary in this Section 5.2.1, if the San Antonio Specialty Surgery Center Property is damaged or destroyed by fire or other casualty, and at such time Borrower is not permitted to repair or rebuild such Property for the same permitted use in effect as of the Closing Date pursuant to applicable Law, then (i) the Net Property Proceeds will not be made available to Borrower until the applicable zoning code is changed to permit the use of such Property as in effect on the Closing Date, and if the zoning code is not changed to permit such use within ninety (90) days of the occurrence of the applicable casualty (provided that if Borrower has commenced and is diligently pursuing a change to the zoning code, Administrative Agent in its reasonable discretion may extend such period by up to an additional ninety (90) days), then Borrower shall pay to Administrative Agent for application to the Debt (or Administrative Agent shall apply to the Debt if it is holding the Net Property Proceeds), on or before such ninetieth (90th) day after the applicable casualty (or upon the expiration of such longer period reasonably approved by Administrative Agent as set forth above), the greater of (i) the Net Property Proceeds received from the property loss, and (ii) the Allocated Loan Amount applicable to the San Antonio Specialty Surgery Center Property (less the amount of the Net Property Proceeds applied to the Debt by Administrative Agent, if applicable).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.2.2. <u>Condemnation</u>**. Immediately upon receiving written notice of the institution or threatened institution of any proceeding for the condemnation of any Individual Property or any part thereof, Borrower shall notify Administrative Agent. Borrower shall then file or defend its rights thereunder and prosecute the same with due diligence to its final disposition; <u>provided</u>, <u>however</u>, that Borrower shall not enter into any settlement of such proceeding without the prior approval of Administrative Agent. Administrative Agent shall be entitled, at its option, to appear in any such proceeding in its own name, and upon the occurrence and during the continuation of an Event of Default or if Borrower fails to diligently prosecute such proceeding, (a) Administrative Agent shall be entitled, at its option, to appear in and prosecute any such proceeding or to make any compromise or settlement in connection with such condemnation on behalf of Borrower, and (b) Borrower hereby irrevocably constitutes and appoints Administrative Agent as its attorney-in-fact, and such appointment is coupled with an interest, to commence, appear in and prosecute such action or proceeding or to make such compromise or settlement in connection with any such condemnation on its behalf. The foregoing appointment is irrevocable and continuing so long as the Commitments or Debt remain outstanding, and such rights, powers and privileges shall be exclusive to Administrative Agent, its successors and assigns. If an Individual Property or any part thereof is taken or materially diminished in value in connection with such condemnation, or if a consent settlement is entered, by or under threat of such proceeding, the award or settlement payable to Borrower by virtue of its interest in the Individual Property, shall be, and by these presents is, assigned, transferred and set over unto Administrative Agent for the benefit of the Lenders. Any such award or settlement shall be first applied to reimburse Administrative Agent for all actual costs and expenses, including reasonable attorneys' fees, incurred in connection with the collection of such award or settlement. The balance of such award or settlement (the "**Net Condemnation Proceeds**") shall be paid to Administrative Agent for application in the manner set forth in Section 5.2.1 as if such award or settlement constituted insurance proceeds from a

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property loss; <u>provided</u>, <u>however</u>, that Administrative Agent shall have no obligation to make Net Condemnation Proceeds available for construction or reconstruction of the Individual Property unless Administrative Agent has determined that the applicable Individual Property as so constructed or reconstructed after giving effect to the condemnation would have a value that is no less than its value would have been had there been no such condemnation. Borrower shall have the obligation to promptly and diligently complete the work of reconstruction necessitated by any condemnation and restore the applicable Individual Property to the equivalent of its condition immediately prior to such condemnation provided that the applicable Net Condemnation Proceeds are made available to Borrower for such purpose.

VI. RESERVE FUNDS

## <u>Section 6.1. Tax Funds</u>.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.1.1. <u>Deposits of Tax Funds</u>**. Except with respect to Real Estate Taxes that are paid by any Tenant directly to the applicable taxing authority pursuant to such Tenant's Lease (provided that such Lease is in full force and effect and no monetary or material non-monetary default beyond applicable notice and cure periods exists under such Lease), Borrower shall deposit with Administrative Agent in a reserve (the "**Tax Reserve**") an amount equal to one-twelfth of the Real Estate Taxes that Administrative Agent estimates will be payable during the next ensuing twelve (12) months in order to accumulate sufficient funds to pay all such Real Estate Taxes at least ten (10) days prior to their respective due dates. Amounts deposited pursuant to this Section 6.1.1 are referred to herein as the "**Tax Funds**." If at any time Administrative Agent reasonably determines that the Tax Funds will not be sufficient to pay the Real Estate Taxes, Administrative Agent shall notify Borrower of such determination and the monthly deposits for Real Estate Taxes shall be increased by the amount that Administrative Agent reasonably estimates is sufficient to make up the deficiency at least ten (10) days prior to the respective due dates for the Real Estate Taxes; provided that if Borrower receives notice of any deficiency after the date that is ten (10) days prior to the date that Real Estate Taxes are due, Borrower will deposit such amount within one (1) Business Day after its receipt of such notice.

Notwithstanding the foregoing, without waiving any of Borrower's obligations under the Loan Documents to pay Real Estate Taxes, Administrative Agent agrees to defer its right under this Agreement and the other Loan Documents to require monthly deposits of Tax Funds with Administrative Agent unless (a) Borrower fails to pay all Real Estate Taxes due with respect to the Property prior to the due date thereof without the addition of interest, fees or penalty, and to provide Administrative Agent with evidence reasonably satisfactory to Administrative Agent thereof, or (b) a Cash Management Period exists, and until any such Cash Management Period ceases to exist, then in addition to Administrative Agent's other remedies under applicable law and under the Loan Documents, Borrower shall immediately commence making monthly deposits of Tax Funds with Administrative Agent in an amount determined by Administrative Agent in accordance with this Section 6.1.1 for such purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.1.2. <u>Release of Tax Funds</u>**. Administrative Agent shall have the right to apply the Tax Funds to payments of Real Estate Taxes. In making any payment relating to Real Estate Taxes, Administrative Agent may do so according to any bill, statement or estimate procured from the appropriate public office (with respect to Real Estate Taxes) without inquiry into the accuracy of such bill, statement or estimate or into the validity of any tax, assessment, sale, forfeiture, tax lien or title or claim thereof. If the amount of the Tax Funds shall exceed the amounts due for Real Estate Taxes, Administrative Agent shall, in its sole discretion, return any excess to Borrower or credit such excess against future payments to be made to the Tax Funds. Any Tax Funds remaining after the Debt has been paid in full shall be returned to Borrower.

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## <u>Section 6.2. Insurance Funds</u>.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.2.1. <u>Deposits of Insurance Funds</u>**. On each Monthly Payment Date, Borrower shall deposit with Administrative Agent in a reserve (the "**Insurance Reserve**") an amount equal to one-twelfth of the Insurance Premiums that Administrative Agent estimates will be payable for the renewal of the coverage afforded by the Policies upon the expiration thereof in order to accumulate sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to the expiration of the Policies. Amounts deposited pursuant to this Section 6.2.1 are referred to herein as the "**Insurance Funds**." If at any time Administrative Agent reasonably determines that the Insurance Funds will not be sufficient to pay the Insurance Premiums, Administrative Agent shall notify Borrower of such determination and the monthly deposits for Insurance Premiums shall be increased by the amount that Administrative Agent reasonably estimates is sufficient to make up the deficiency at least thirty (30) days prior to expiration of the Policies.

Notwithstanding the foregoing, without waiving any of Borrower's obligations under the Loan Documents to maintain the insurance coverage required pursuant to Section 5.1.1 and pay the related Insurance Premiums, Administrative Agent agrees to defer its right under this Agreement and the other Loan Documents to require monthly deposits of Insurance Funds with Administrative Agent unless (a) Borrower fails (or fails to cause Tenant) to pay all Insurance Premiums due with respect to the Property on or prior to the due date thereof without the addition of interest, fees or penalty, and to provide Administrative Agent with evidence reasonably satisfactory to Administrative Agent thereof, or (b) a Cash Management Period exists, and until any such Cash Management Period ceases to exist, then in addition to Administrative Agent's other remedies under applicable law and under the Loan Documents, Borrower shall immediately commence making monthly deposits of Insurance Funds with Administrative Agent in an amount determined by Administrative Agent in accordance with this Section 6.2.1 for such purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.2.2. <u>Release of Insurance Funds</u>**. Administrative Agent shall have the right to apply the Insurance Funds to payment of Insurance Premiums. In making any payment relating to Insurance Premiums, Administrative Agent may do so according to any bill, statement or estimate procured from the insurer or its agent, without inquiry into the accuracy of such bill, statement or estimate. If the amount of the Insurance Funds shall exceed the amounts due for Insurance Premiums, Administrative Agent shall, in its sole discretion, return any excess to Borrower or credit such excess against future payments to be made to the Insurance Funds. Any Insurance Funds remaining after the Debt has been paid in full shall be returned to Borrower.

## <u>Section 6.3. Leasing Reserve</u>. On the Closing Date, Borrower shall deposit in a reserve with Administrative Agent the amount of $1,200,000.00 (the " Leasing Reserve "). So long as no Event of Default exists, the funds contained in the Leasing Reserve shall be utilized to pay for or reimburse Borrower solely for Approved Leasing Costs incurred under any Cedar Park Replacement Lease. Administrative Agent shall pay for or reimburse Borrower from the Leasing Reserve for the actual Approved Leasing Costs incurred pursuant to a Cedar Park Replacement Lease upon Borrower's providing Administrative Agent with paid receipts, lien waivers, a copy of the Cedar Park Replacement Lease, a copy of the brokerage agreement detailing any commission to be paid and/or the construction budget (detailing the estimated costs and the nature of the tenant improvements), as applicable, and other documentation deemed reasonably necessary by Administrative Agent, with minimum draws of $25,000.00 until the final draw, which draws shall occur no more frequently than once per month.
If Borrower enters into the Cedar Park Replacement Lease, all Approved Leasing Costs incurred under such Lease have been paid in full, the tenant under the Cedar Park Replacement Lease has accepted the leased premises and commenced paying rent under the Cedar Park Replacement Lease (after expiration of any free rent periods), and Administrative Agent has received and approved reasonable evidence of all

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of the foregoing, then so long as no Default, Event of Default or Cash Management Period exists, any funds then remaining in the Leasing Reserve shall be disbursed to Borrower.

## <u>Section 6.4. Application of Reserve Funds</u>. During the existence of an Event of Default, Administrative Agent, at its option, may withdraw funds from the reserves and escrows established pursuant to this Article VI (the " Reserve Funds ") and apply the Reserve Funds to the items for which the Reserve Funds were established or to payment of the Debt in such order, proportion and priority as Administrative Agent may determine in its sole discretion. Administrative Agent's right to withdraw and apply the Reserve Funds shall be in addition to all other rights and remedies provided to Administrative Agent under the Loan Documents. Notwithstanding anything to the contrary herein, in no event shall Administrative Agent be obligated to disburse funds from a Reserve Fund if an Event of Default exists.

## <u>Section 6.5. Security Interest in Reserve Funds</u>.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.5.1. <u>Grant of Security Interest</u>**. Borrower shall be the owner of the Reserve Funds. Borrower hereby pledges, assigns and grants a security interest to Administrative Agent, as security for payment of the Debt and the performance of all other terms, conditions and covenants of the Loan Documents on Borrower's part to be paid and performed, in all of Borrower's right, title and interest in and to the Reserve Funds. The Reserve Funds shall be under the sole dominion and control of Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.5.2. <u>Income Taxes</u>**. Borrower shall report on its federal, state and local income tax returns, if applicable, all interest or income accrued, if any, on the Reserve Funds. The Reserve Funds may be commingled with the general funds of Administrative Agent and shall not constitute trust funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.5.3. <u>Prohibition Against Further Encumbrance</u>**. Borrower shall not, without the prior consent of Administrative Agent, further pledge, assign or grant any security interest in the Reserve Funds 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 Administrative Agent as the secured party, to be filed with respect thereto.

VII. MANAGEMENT AGREEMENT

## <u>Section 7.1. The Management Arrangement</u>. Borrower shall cause Manager to manage the Property in accordance with the Management Agreement. Borrower shall (i) diligently perform and observe all of the terms, covenants and conditions of the Management Agreement on the part of Borrower to be performed and observed, (ii) promptly notify Administrative Agent of any notice to Borrower of any default by Borrower in the performance or observance of any of the terms, covenants or conditions of the Management Agreement on the part of Borrower to be performed and observed, and (iii) promptly deliver to Administrative Agent a copy of each business plan received by it under the Management Agreement. If Borrower shall default in the performance or observance of any material term, covenant or condition of the Management Agreement on the part of Borrower to be performed or observed, then, without limiting Administrative Agent's other rights or remedies under this Agreement or the other Loan Documents, and without waiving or releasing Borrower from any of its obligations hereunder or under the Management Agreement, Administrative Agent shall have the right, but shall be under no obligation, to pay any sums and to perform any act as may be appropriate to cause all the material terms, covenants and conditions of the Management Agreement on the part of Borrower to be performed or observed.

## <u>Section 7.2. Prohibition Against Termination or Modification</u>. Borrower shall not surrender, terminate, cancel, modify, renew or extend the Management Agreement, or enter into any other agreement relating to the management or operation of the Property with Manager or any other Person, or consent to the assignment by the Manager of its interest under the Management Agreement, in each case

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## without the express consent of Administrative Agent, which consent shall not be unreasonably withheld. If at any time Administrative Agent consents to the appointment of a new Manager, such new Manager and Borrower shall, as a condition of Administrative Agent's consent, execute a subordination of the Management Agreement in the form then used by Administrative Agent.

## <u>Section 7.3. Replacement of Manager</u>. Administrative Agent shall have the right to require Borrower to replace the Manager with a Person, which is not an Affiliate of Borrower, chosen by Borrower and reasonably approved by Administrative Agent in accordance with the provisions of Section 7.2 above, upon the occurrence of any one or more of the following events: (i) at any time during the existence of an Event of Default, (ii) if Manager shall be in default under the Management Agreement beyond any applicable notice and cure period, (iii) any "for cause" reason for termination of the Management Agreement pursuant to the terms thereof, including, without limitation, gross negligence, fraud, or willful misconduct, or (iv) the Manager becoming insolvent or a debtor in any bankruptcy or insolvency proceeding. Borrower's failure to appoint an acceptable replacement manager within thirty (30) days after Administrative Agent's request of Borrower to terminate the Management Agreement shall constitute an immediate Event of Default hereunder.
VIII. CASH MANAGEMENT

## <u>Section 8.1. Cash Management Arrangements</u>. Borrower shall at all times cause all Rents to be transmitted directly by tenants of the Property into an Eligible Account (the " Central Account ") established and maintained by Holdings Borrower and reasonably approved by Administrative Agent, at Deposit Bank, as more fully described in the Deposit Account Control Agreement. Without in any way limiting the foregoing, if Borrower or Manager receive any Rents, then (i) such amounts shall be deemed to be collateral for the Loan and shall be held in trust for the benefit, and as the property, of Administrative Agent, (ii) such amounts shall not be commingled with any other funds or property of Borrower or Manager, and (iii) Borrower or Manager shall deposit such amounts into the Central Account within two (2) Business Days of receipt. Funds deposited into the Central Account shall be swept by the Deposit Bank on a daily basis into Borrower's operating account at the Deposit Bank, unless a Cash Management Period is continuing, in which event such funds shall be swept on a daily basis into an Eligible Account at the Deposit Bank controlled by Administrative Agent (the " Deposit Account ") and applied and disbursed in accordance with this Agreement. Funds in the Deposit Account shall be invested at Administrative Agent's discretion only in Permitted Investments. Administrative Agent will also establish subaccounts of the Deposit Account which shall at all times be Eligible Accounts (and may be ledger or book entry accounts and not actual accounts) (such subaccounts are referred to herein as " Subaccounts "). At all times, Administrative Agent may, in its discretion, elect to maintain the deposits and reserves required under this Agreement in an Eligible Account at a bank or other depository selected by Administrative Agent other than the Deposit Bank in which case, all references to the Deposit Account and any Subaccounts hereunder shall be deemed to include such Eligible Account and the subaccounts of any such Eligible Account and all funds in such Eligible Account shall be invested at Administrative Agent's discretion only in Permitted Investments. The Central Account, Deposit Account and any Subaccount will be under the sole dominion and control of Administrative Agent, and except as set forth in the Deposit Account Control Agreement, Borrower shall have no right of withdrawal therefrom. Borrower shall pay for all expenses of opening and maintaining all of the above accounts.

## <u>Section 8.2. Security Deposits</u>. Borrower shall keep and hold all security deposits under Leases in accordance with applicable Legal Requirements and at a separately designated account under Borrower's control at the Deposit Bank so that the security deposits shall not be commingled with any other funds of Borrower (such account, the " Security Deposit Account "). After the occurrence of an Event of Default, Borrower shall, upon Administrative Agent's request, if permitted by applicable Legal Requirements, turn over to Administrative Agent the security deposits (and any interest theretofore earned

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## thereon) under Leases, to be held by Administrative Agent in a Subaccount (the " Security Deposit Subaccount ") subject to the terms of the Leases. Security deposits held in the Security Deposit Subaccount will either be released by Administrative Agent within ten (10) Business Days after the delivery by Borrower to Administrative Agent of a request therefor together with such evidence as Administrative Agent may reasonably request that such security deposit is required to be returned to a tenant pursuant to the terms of a Lease, or may be applied as Rent pursuant to the rights of Borrower under the applicable Lease. Any letter of credit or other instrument that Borrower receives in lieu of a cash security deposit under any Lease entered into after the date hereof shall (i) be maintained in full force and effect in its full amount unless replaced by a cash deposit as hereinabove described and (ii) if permitted pursuant to any Legal Requirements, name Administrative Agent as payee or mortgagee thereunder (or at Administrative Agent's option, be fully assignable to Administrative Agent).

## <u>Section 8.3. Cash Collateral Subaccount</u>. If a Cash Management Period shall have commenced, then on the immediately succeeding Monthly Payment Date and on each Monthly Payment Date thereafter during the continuance of such Cash Management Period, all Available Cash shall be paid to Administrative Agent, which amounts shall be transferred by Administrative Agent into a Subaccount (the " Cash Collateral Subaccount ") as cash collateral for the Debt. Any funds in the Cash Collateral Account and not previously disbursed or applied shall be disbursed to Borrower upon the termination of such Cash Management Period. Administrative Agent on behalf of the Lenders shall have the right, but not the obligation, in its sole and absolute discretion, at any time after a Cash Management Period has existed for four consecutive calendar quarter testing periods, or during the continuance of an Event of Default, to apply all sums then on deposit in the Cash Collateral Subaccount to the Debt, in such order and in such manner as Administrative Agent shall elect in its sole and absolute discretion.

## <u>Section 8.4. Grant of Security Interest; Application of Funds</u>. As security for payment of the Debt and the performance by Borrower of all other terms, conditions and provisions of the Loan Documents, Borrower hereby pledges and assigns to Administrative Agent for the benefit of the Lenders, and grants to Administrative Agent for the benefit of the Lenders a security interest in all of Borrower's right, title and interest in and to all Rents and in and to all payments to or monies held in the Central Account, the Deposit Account, and all Subaccounts created pursuant to this Agreement (collectively, the " Cash Management Accounts "). Borrower hereby grants to Administrative Agent a continuing security interest in, and agrees to hold in trust for the benefit of Administrative Agent, all Rents in its possession prior to the (i) payment of such Rents to Administrative Agent or (ii) deposit of such Rents into the Central Account. Borrower shall not, without obtaining the prior written consent of Administrative Agent, further pledge, assign or grant any security interest in any Cash Management Account, or permit any Lien to attach thereto, or any levy to be made thereon, or any UCC Financing Statements to be filed with respect thereto, except those naming Administrative Agent as the secured party. This Agreement is, among other things, intended by the parties to be a security agreement for purposes of the UCC. During the existence of an Event of Default, Administrative Agent may apply any sums in any Cash Management Account to the Debt in any order and in any manner as Administrative Agent shall elect in Administrative Agent's sole and absolute discretion without seeking the appointment of a receiver and without adversely affecting the rights of Administrative Agent to foreclose the Lien of the Security Instrument or exercise its other rights under the Loan Documents. Cash Management Accounts shall not constitute trust funds and may be commingled with other monies held by Administrative Agent. Provided no Event of Default is continuing, all interest which accrues on the funds in any Cash Management Account shall accrue for the benefit of Borrower and shall be taxable to Borrower and shall be added to and disbursed in the same manner and under the same conditions as the principal sum on which said interest accrued. Upon repayment in full of the Debt, all remaining funds in the Cash Management Accounts, if any, shall be promptly disbursed to Borrower.

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## <u>Section 8.5. Property Cash Flow Allocation</u>.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) During any Cash Management Period, all Rents deposited into the Deposit Account during the immediately preceding calendar month shall be applied on each Monthly Payment Date in the following order of priority:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) First, to make payment into the Tax Reserve pursuant to Section 6.1.1, and into the Insurance Reserve pursuant to Section 6.2.1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Second, to pay the monthly portion of the fees charged by the Deposit Bank, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Third, to Administrative Agent to pay the interest on the Loan due on such Monthly Payment Date (plus, if applicable, interest at the Default Rate and all other amounts, other than those described under other clauses of this Section 8.5(a), then due to Administrative Agent or Lenders under the Loan Documents);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Fourth, funds in an amount equal to the Monthly Operating Expense Budgeted Amount shall be disbursed to Borrower (or to an account designated by Borrower at the Deposit Bank); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Lastly, to make payments in an amount equal to all Available Cash on such Monthly Payment Date into the Cash Collateral Subaccount in accordance with Section 8.3 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The failure of Borrower to make all of the payments required under clauses (i) through (iii) of Section 8.5(a) above in full on each Monthly Payment Date shall constitute an Event of Default under this Agreement; provided, however, if adequate funds are available in the Deposit Account for such payments, the failure by the Deposit Bank to allocate such funds into the appropriate Subaccounts shall not constitute an Event of Default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything to the contrary contained in this Section 8.5, during the existence of an Event of Default, Administrative Agent may apply all Rents deposited into the Deposit Account and other proceeds of repayment to the Debt in such order and in such manner as Administrative Agent shall elect in its sole and absolute discretion.

## <u>Section 8.6. Lease Termination Payments</u>. Borrower shall pay to Administrative Agent for transfer into a Subaccount (the " Rollover Reserve Subaccount ") all Lease Termination Payments received by Borrower. Funds in the Rollover Reserve Subaccount shall be applied, at Administrative Agent's election, towards either (a) subject to the rights of Borrower under the applicable Lease, rent arrearages under such Lease (or to cure any other tenant default under such Lease), (b) debt service shortfalls that may arise as a result of a termination of such Lease (and Borrower hereby authorizes Administrative Agent to disburse to the Lenders any such amounts without any request therefor by Borrower) or (c) funding any Tenant Costs approved by Administrative Agent which are anticipated to occur in connection with the re-tenanting of the space under the Lease that was the subject of such termination; provided, however if (i) the space under the applicable terminated Lease has been re-tenanted and all Tenant Costs incurred and relating thereto have been paid in full (with applicable paid invoices and lien waivers delivered to Administrative Agent), and (ii) the balance of funds in the Rollover Reserve Subaccount relating to such terminated Lease are not needed to pay debt service shortfalls that may arise as a result of the termination of such Lease, as reasonably determined by Administrative Agent, then provided that no Default or Event of Default exists, if requested in writing by Borrower, Administrative Agent shall pay the balance in the Rollover Reserve Subaccount relating to such terminated Lease to Borrower.

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IX. SALE OF LOAN

## <u>Section 9.1. Participants</u>.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Lender shall have the right at its own cost to grant participations (to be evidenced by one or more agreements or certificates of participation) in the portion of the Loan made and/or Commitments held by such Lender at any time and from time to time to one or more other Persons; provided that no such participation shall relieve any Lender of any of its obligations under this Agreement, and, provided, further that no such participant shall have any rights under this Agreement except as provided in this Section, and the Administrative Agent shall have no obligation or responsibility to such participant. Any agreement pursuant to which such participation is granted shall provide that the Lender granting such participation shall retain the sole right and responsibility to enforce the obligations of Borrower under this Agreement and the other Loan Documents including, without limitation, the right to approve any amendment, modification or waiver of any provision of the Loan Documents, except that such agreement may provide that such Lender will not agree to any modification, amendment or waiver of the Loan Documents that would reduce the amount of or postpone any fixed date for payment of any Obligation in which such participant has an interest. Any party to which such a participation has been granted shall have the benefits of Section 2.3.8 and Section 2.3.6 (subject to the requirements and limitations therein, including the requirements under subsections (e), (f) and (g) of Section 2.3.6 (it being understood that the documentation required under subsections (e), (f) and (g) of Section 2.3.6 shall be delivered to the participating Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to Section 9.2; <u>provided</u> that such Participant (A) agrees to be subject to the provisions of Section 2.5 as if it were an assignee under Section 9.2; and (B) shall not be entitled to receive any greater payment under Section 2.3.8 or Section 2.3.6, with respect to any participation, than its participating Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a change in law that occurs after the Participant acquired the applicable participation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Lender that sells a participation shall, acting solely for this purpose as an agent of Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant's interest in the Loans or other obligations under any Loan Document (the "**Participant Register**"); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant's interest in any obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.

## <u>Section 9.2. Assignments</u>.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any Lender may at any time assign to one or more Eligible Assignees all or a portion of such Lender's rights and obligations under this Agreement (including all or a portion of its Commitment and the portion of the Loan at the time owing to it); provided that any such assignment shall be subject to the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Minimum Amounts</u>. (A) In the case of an assignment of the entire remaining amount of the assigning Lender's Commitment and the portion of the Loan at the time owing to it or in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and (B) in any case not described in subsection (a)(i)(A) of

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this Section, the aggregate amount of the Commitment or, if the applicable Commitment is not then in effect, the principal outstanding balance of the portion of the Loan of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Acceptance with respect to such assignment is delivered to the Administrative Agent or, if "Effective Date" is specified in the Assignment and Acceptance, as of the Effective Date) shall not be less than Five Million Dollars ($5,000,000), unless each of the Administrative Agent and, so long as no Default has occurred and is continuing, Borrower otherwise consents (each such consent not to be unreasonably withheld or delayed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Proportionate Amounts</u>. Each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender's rights and obligations under this Agreement with respect to the Loan or the Commitment assigned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Required Consents</u>.No consent shall be required for any assignment except to the extent required by Section 9.2(a)(i)(B) and, in addition:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the consent of Borrower (such consent not to be unreasonably withheld or delayed) shall be required unless (x) a Default or Event of Default has occurred and is continuing at the time of such assignment or (y) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund; provided that Borrower shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the Administrative Agent within five (5) Business Days after having received notice thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required for assignments in respect of the Loan to a Person who is not a Lender, an Affiliate of a Lender or an Approved Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Assignment and Acceptance</u>.The parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Acceptance, together with a processing and recordation fee of $3,500, and the assignee, if it is not a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>No Assignment to Borrower or Parent</u>. No such assignment shall be made to Borrower or any of its Affiliates or subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) <u>No Assignment to Natural Persons</u>.No such assignment shall be made to a natural person.

Subject to acceptance and recording thereof by the Administrative Agent pursuant to Section 9.2(b), from and after the effective date specified in each Assignment and Acceptance, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Acceptance, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Acceptance, be released from its obligations under this Agreement (and, in the case of an Assignment and Acceptance covering all of the assigning Lender's rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of Section 12.13 and Section 12.27 with respect to facts and circumstances occurring prior to the effective date of such assignment. Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this Section shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with Section 9.1.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Register</u>. The Administrative Agent, acting solely for this purpose as an agent of Borrower, shall maintain at one of its offices in Chicago, Illinois, a copy of each Assignment and Acceptance delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts of the Loan owing to, each Lender pursuant to the terms hereof from time to time (the "**Register**"). The entries in the Register shall be conclusive, and Borrower, the Administrative Agent, and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection by Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Pledge of Security Interest</u>. Any Lender may at any time pledge or grant a security interest in all or any portion of its rights under this Agreement and the other Loan Documents to secure obligations of such Lender, including any such pledge or grant to a Federal Reserve Bank, and this Section shall not apply to any such pledge or grant of a security interest; provided that no such pledge or grant of a security interest shall release a Lender from any of its obligations hereunder or substitute any such pledgee or secured party for such Lender as a party hereto; provided further, however, the right of any such pledgee or grantee (other than any Federal Reserve Bank) to further transfer all or any portion of the rights pledged or granted to it, whether by means of foreclosure or otherwise, shall be at all times subject to the terms of this Agreement.

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

## <u>Section 9.3. Disclosure</u>. Administrative Agent and Lenders may, in connection with any assignment or participation or proposed assignment or participation pursuant to Section 9.1 or Section 9.2, disclose to the assignee or participant or proposed assignee or participant, as the case may be, any information relating to Borrower, Guarantor or any of their respective entity Affiliates and not any individual Affiliates except as required for such assignee to conduct its customary "Know Your Customer" requirements or to any aspect of the Loan that has been furnished to Administrative Agent and Lenders by or on behalf of Borrower, Guarantor or any of their respective Affiliates. Prior to releasing any information, relating to the Loan to bank trade publications, Administrative Agent or any Lender, shall obtain the prior written approval of Borrower, which shall not be unreasonably withheld provided such information to consist of deal terms and other information customarily found in such publications.

## <u>Section 9.4. Cooperation</u>. In connection with any such sale, assignment, transfer or participation of the Loan or any portion thereof pursuant to Section 9.1 or Section 9.2 (each such transaction, a " Syndication "), Borrower shall use all reasonable efforts and cooperate, and cause Guarantor to cooperate, fully and in good faith with any Lender and otherwise assist any Lender in consummating any such Syndication, including without limitation (a) providing and causing its advisors to provide Administrative Agent and any Lender upon request all information reasonably deemed necessary by Administrative Agent or such Lender to complete the Syndication, and to prepare an offering memorandum to be used in connection with the initial Syndication, and (b) executing and delivering such amendments to the Loan Documents as may be reasonably requested by Administrative Agent to effect a Syndication, provided that, except as otherwise agreed to by Borrower, no such amendment shall (1) result in any material economic change in the transaction, (2) result in any additional personal liability of Guarantor or any other Person, or (3) materially lessen the rights or materially increase the obligations or liabilities of

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## Borrower provided in the Loan Documents as of the date hereof.Provided that no Event of Default exists, Borrower shall not be responsible for payment of any of Administrative Agent's or any Lender's costs relating to a Syndication.
X. DEFAULTS

## <u>Section 10.1. Events of Default</u>. Each of the following events shall constitute an event of default hereunder (each, an " Event of Default "):
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Payment</u>. (A) any monthly installment of interest due under the Note is not paid within five (5) days of the date when due, (B) the payment of any principal is not paid when due, (C) any other portion of the Debt is not paid within five (5) days of the date when due, or (D) if any of the Real Estate Taxes or Other Charges are not paid when due, in each case whether on the scheduled due date or upon acceleration, maturity or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Insurance</u>. Any of the Policies required under the Loan Documents lapses or ceases to be in full force and effect, or Borrower fails to deliver or cause to be delivered certificates of insurance or certified copies of such Policies within the time periods required by Section 5.1.1(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Breach of Representation or Warranty</u>. Any representation or warranty made by Borrower or Guarantor herein or in any other Loan Document, or in any report, certificate, financial statement or other instrument, agreement or document furnished to Administrative Agent shall have been false or misleading in any material respect as of the date the representation or warranty was made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Voluntary Bankruptcy; Appointment of Receiver, etc</u>. (1) Any Borrower or Guarantor commences a voluntary case under the Bankruptcy Code or any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or consents to the entry of an order for relief in an involuntary case or to the conversion of an involuntary case to a voluntary case under any such law, or takes any action in furtherance of any of the foregoing, or (2) any Borrower or Guarantor seeks or consents to the appointment of a receiver, trustee, custodian, liquidator or other officer having similar powers, for all or a substantial part of the Property or any portion thereof, or any portion of any of its other property; or (3) any Borrower or Guarantor makes a general assignment for the benefit of creditors, or takes any action in furtherance thereof; or (4) any Borrower or Guarantor admits in writing in any legal proceeding its inability to pay, or fails to pay, its debts generally as they become due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Involuntary Bankruptcy; Appointment of Receiver, etc</u>. (1) A court enters a decree or order for relief with respect to any Borrower or Guarantor in an involuntary case under the Bankruptcy Code or any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, which decree or order is not stayed or other similar relief is not granted under any applicable federal or state law; or (2) the occurrence of any of the following events: (i) an involuntary case is commenced against any Borrower or Guarantor under the Bankruptcy Code or any applicable bankruptcy, insolvency or other similar law now or hereafter in effect; or (ii) a decree or order of a court for the appointment of a receiver, trustee, custodian, liquidator, or other officer having similar powers over any Borrower or Guarantor or over all or a substantial part of the Property or any portion thereof, or any portion of any of its other property, is entered, and any Borrower or Guarantor either (x) admits, acquiesces in or fails to timely and diligently contest the allegations thereof, or (y) fails to have the case, petition, proceeding or other action dismissed or discharged within ninety (90) days of the commencement thereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Breach of Certain Provisions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any Borrower breaches or permits or suffers a breach of Section 2.10 (Interest Rate Protection Agreement), Section 4.1.21(a) (Financial Covenant) (subject to the cure rights in Section 4.1.21(b)), 4.2.1 (Transfers), 4.2.2 (Liens), 4.2.3 (Material Changes), or 4.2.8 (ERISA);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any Borrower breaches any representation, warranty or covenant contained in Section 3.1.24 (Single Purpose Entity);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any Borrower fails to comply with the financial reporting requirements of Section 4.1.8 and such failure continues for ten (10) Business Days after notice from Administrative Agent; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Any Borrower fails to perform its obligations under Section 9.4 and such failure continues for five (5) Business Days after notice to Borrower from Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Prescribed Laws</u>. Any Borrower or Guarantor violates or otherwise fails to comply with any Prescribed Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Default Under Other Loan Documents; Rate Management Agreement</u>. There shall be a default by any Borrower or Guarantor under any term, covenant or provision of any other Loan Document beyond any applicable cure periods contained in such Loan Document, including, without limitation, nonpayment by any Borrower of any Rate Management Obligation when due or the breach by any Borrower of any term, provision or condition contained in any Rate Management Agreement (after the expiration of any applicable notice and cure period set forth in such Rate Management Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Invalidity of Loan Documents</u>. Any of the Loan Documents for any reason, other than a partial or full release in accordance with the terms of the Loan Documents, ceases to be in full force and effect or is declared to be null and void by a court of competent jurisdiction, or any Borrower or Guarantor denies that it has any further liability under any Loan Document to which it is party, or gives notice to such effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Change in Control</u>. A change in Control of any Borrower shall occur.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Material Adverse Change</u>. The occurrence of a Material Adverse Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Judgments and Attachments</u>. Any money judgment, writ or warrant of attachment, or similar process involving (1) an amount in any individual case in excess of $100,000, or (2) an amount in the aggregate at any time in excess of $250,000 (in either case not adequately covered by insurance as to which the insurance company has acknowledged coverage) is entered or filed against any Borrower or Guarantor and remains undischarged, unvacated, unbonded, uninsured or unstayed for a period of thirty (30) days or in any event later than five (5) days prior to the date of any proposed sale thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Injunction</u>. Any Borrower is enjoined, restrained or in any way prevented by any court order from constructing or operating any Individual Property and such injunction, restraint or other event is not cured within sixty (60) days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Death, etc</u>. The death, judicial determination of incapacitation, incompetency or analogous judicial determination, dissolution, cessation of existence or felony criminal conviction of any Borrower or Guarantor.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Guarantor</u>. Guarantor ceases to be in compliance with the Guarantor Financial Covenants or Guarantor fails to comply with the financial reporting requirements in the Guaranty and such failure continues for ten (10) Business Days after notice from Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Other Defaults</u>. Any Borrower shall continue to be in Default under any of the other terms, covenants or conditions of this Agreement not specified in this Section 10.1, for ten (10) days after notice to such Borrower from Administrative Agent, 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 Administrative Agent in the case of any other Default; provided, however, that if such non-monetary Default is susceptible of cure, but cannot reasonably be cured within such thirty (30) day period and provided further that such 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 such Borrower in the exercise of due diligence to cure such Default, such additional period not to exceed ninety (90) days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Ground Lease Default</u>. (i) The Ground Lease is terminated by either party or assigned by Ground Lease Tenant, unless such termination, or assignment is approved in writing in advance by the Required Lenders, or (ii) a default by Ground Lease Tenant occurs under the Ground Lease which default is not cured prior to the expiration of any applicable notice and cure period, or (iii) a default by the Ground Lease Lessor occurs under the Ground Lease which default is not cured prior to the expiration of any applicable notice and cure period and such default is likely to result in a Material Adverse Change, or (iv) any of the terms, covenants or conditions of the Ground Lease shall be modified, changed, supplemented, altered, or amended without Required Lenders' prior written consent.

## <u>Section 10.2. Remedies</u>.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.2.1.** When any Event of Default (other than those described in clauses (d) or (e) of Section 10.1 with respect to Borrower) has occurred and is continuing, the Administrative Agent may and at the direction of the Required Lenders shall, exercise any of the following rights and remedies: (a) terminate the remaining Commitments and all other obligations of the Lenders hereunder on the date stated in such notice (which may be the date thereof); (b) declare the principal of and the accrued interest on the Loan to be forthwith due and payable and thereupon the Loan, including both principal and interest thereon, shall be and become immediately due and payable together with all other amounts payable under the Loan Documents without further demand, presentment, protest or notice of any kind, (c) use, set-off and apply against the Debt, to the extent thereof and as permitted by applicable Law, all deposits, funds, letters of credit or other assets in which Administrative Agent has been granted a security interest pursuant to any Loan Document, or (d) any other rights and remedies afforded by this Agreement, any other Loan Document, or at law or in equity. The Administrative Agent, after giving notice to Borrower pursuant to Section 10.1 or this Section 10.2.1, shall also promptly send a copy of such notice to the other Lenders, but the failure to do so shall not impair or annul the effect of such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.2.2.** When any Event of Default described in clauses (d) or (e) of Section 10.1 with respect to Borrower has occurred and is continuing, then the Loan shall immediately become due and payable together with all other amounts payable under the Loan Documents without presentment, demand, protest or notice of any kind, and the obligation of the Lenders to extend further credit pursuant to any of the terms hereof shall immediately terminate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.2.3.** Upon the occurrence of an Event of Default, all or any one or more of the rights, powers, privileges and other remedies available to Administrative Agent against Borrower under this Agreement or any of the other Loan Documents executed and delivered by, or applicable to, Borrower or available to Administrative Agent at law or in equity may be exercised by Administrative Agent at any time and from

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time to time, whether or not all or any of the Debt shall be declared due and payable, and whether or not Administrative Agent shall have commenced any foreclosure proceeding or other action for the enforcement of its rights and remedies under any of the Loan Documents with respect to the Property. Without limiting the generality of the foregoing, if an Event of Default is continuing (i) Administrative Agent 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 Administrative Agent shall remain in full force and effect until Administrative Agent has exhausted all of its remedies against the Property and the Security Instrument has been foreclosed, sold and/or otherwise realized upon in satisfaction of the Debt or the Debt has been paid in full.

## <u>Section 10.3. Right to Cure Defaults</u>. Administrative Agent may, but without any obligation to do so and without notice to or demand on Borrower and without releasing Borrower from any obligation hereunder or being deemed to have cured any Event of Default hereunder, make, do or perform any obligation of Borrower hereunder in such manner and to such extent as Administrative Agent may deem necessary. Administrative Agent 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 for such purposes, and the cost and expense thereof (including reasonable attorneys' fees to the extent permitted by law), with interest as provided in this Section 10.3, shall constitute a portion of the Debt and shall be due and payable to Administrative Agent upon demand. All such costs and expenses incurred by Administrative Agent in remedying such Event of Default or such failed payment or act or in appearing in, defending, or bringing any action or proceeding shall bear interest at the Default Rate, for the period after such cost or expense was incurred until the date of payment to Administrative Agent. All such costs and expenses incurred by Administrative Agent together with interest thereon calculated at the Default Rate shall be deemed to constitute a portion of the Debt and be secured by the liens, claims and security interests provided to Administrative Agent under the Loan Documents and shall be immediately due and payable upon demand by Administrative Agent therefor.
Without limitation of the foregoing, Borrower hereby appoints Administrative Agent as Borrower's lawful attorney in fact with full power of substitution if Administrative Agent so elects, which power of attorney is irrevocable and coupled with an interest, to do any of the following in Borrower's name upon the occurrence of an Event of Default: (i) take possession of the Property and do anything which is necessary or appropriate in its sole judgment to fulfill the obligations of Borrower under this Agreement and the other Loan Documents, including either the right to avail itself of and procure performance of existing contracts or let any contracts with the same contractors or others, (ii) use un-advanced Loan funds or fund which may be reserved, escrowed or set aside for any purposes hereunder at any time, (iii) pay, settle or compromise all existing bills and claims, which may be liens or security interests, or to avoid such bills and claims becoming liens against the Property, (iv) prosecute and defend all actions or proceedings in connection with the Improvements or Property, and (v) take any actions required under a Rate Management Agreement.

## <u>Section 10.4. Remedies Cumulative</u>. The rights, powers and remedies of Administrative Agent under this Agreement shall be cumulative and not exclusive of any other right, power or remedy which Administrative Agent may have against Borrower pursuant to this Agreement or the other Loan Documents, or existing at law or in equity or otherwise. Administrative Agent's rights, powers and remedies may be pursued singly, concurrently or otherwise, at such time and in such order as Administrative Agent may determine in Administrative Agent's sole discretion to the fullest extent permitted by law, without impairing or otherwise affecting the other rights and remedies of Administrative Agent permitted by law or as set forth herein or in any other Loan Document. 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

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## 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.
XI. THE ADMINISTRATIVE AGENT

## <u>Section 11.1. Appointment and Authorization of Administrative Agent</u>. Each Lender hereby appoints BMO Harris Bank N.A. as the Administrative Agent under the Loan Documents and hereby authorizes the Administrative Agent to (a) take such action as Administrative Agent on its behalf and to exercise such powers under the Loan Documents as are delegated to the Administrative Agent by the terms thereof, together with such powers as are reasonably incidental thereto, and (b) exercise all other powers of Lenders as are not made subject to the consent of the Required Lenders or all of the Lenders pursuant to Section 12.4. The Lenders expressly agree that the Administrative Agent is not acting as a fiduciary of the Lenders in respect of the Loan Documents, Borrower or otherwise, and nothing herein or in any of the other Loan Documents shall result in any duties or obligations on the Administrative Agent or any of the Lenders except as expressly set forth herein.

## <u>Section 11.2. Administrative Agent and its Affiliates</u>. The Administrative Agent shall have the same rights and powers under this Agreement and the other Loan Documents as any other Lender and may exercise or refrain from exercising such rights and power as though it were not the Administrative Agent, and the Administrative Agent and its affiliates may accept deposits from, lend money to, and generally engage in any kind of business with Borrower or any Affiliate of Borrower as if it were not the Administrative Agent under the Loan Documents. The term "Lender" as used herein and in all other Loan Documents, unless the context otherwise clearly requires, includes the Administrative Agent in its individual capacity as a Lender (if applicable).

## <u>Section 11.3. Action by Administrative Agent</u>. If the Administrative Agent receives from Borrower a written notice of an Event of Default, the Administrative Agent shall promptly give each of the Lenders written notice thereof. The obligations of the Administrative Agent under the Loan Documents are only those expressly set forth therein. Without limiting the generality of the foregoing, the Administrative Agent shall not be required to take any action hereunder with respect to any Default or Event of Default, except as expressly provided in Section 10.2.1. Upon the occurrence of an Event of Default, the Administrative Agent shall take such action to enforce its Lien on the Collateral and to preserve and protect the Collateral as may be directed by the Required Lenders. Unless and until the Required Lenders give such direction, the Administrative Agent may (but shall not be obligated to) take or refrain from exercising any right or remedy hereunder or under the Loan Documents as Administrative Agent deems appropriate and in the best interest of all the Lenders. In no event, however, shall the Administrative Agent be required to take any action in violation of applicable law or of any provision of any Loan Document, and the Administrative Agent shall in all cases be fully justified in failing or refusing to act hereunder or under any other Loan Document unless it first receives any further assurances of its indemnification from the Lenders that it may require, including prepayment of any related expenses and any other protection it requires against any and all costs, expenses, and liabilities which may be incurred by it by reason of taking or continuing to take any such action. The Administrative Agent shall be entitled to assume that no Default or Event of Default exists unless notified in writing to the contrary by a Lender or Borrower. In all cases in which the Loan Documents do not require the Administrative Agent to take specific action, the Administrative Agent shall be fully justified in using its discretion in failing to take or in taking any action thereunder. Any instructions of the Required Lenders, or of any other group of Lenders called for under the specific provisions of the Loan Documents, shall be binding upon all the Lenders and the holders of the Debt.

## <u>Section 11.4. Consultation with Experts</u>. The Administrative Agent may consult with legal counsel, independent public accountants, and other experts selected by it and shall not be liable for any

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## action taken or omitted to be taken by it in good faith in accordance with the advice of such counsel, accountants or experts.

## <u>Section 11.5. Liability of Administrative Agent; Credit Decision</u>. Neither the Administrative Agent nor any of its directors, officers, agents or employees shall be liable for any action taken or not taken by it in connection with the Loan Documents: (i) with the consent or at the request of the Required Lenders or (ii) in the absence of its own gross negligence or willful misconduct, as determined by a final, non-appealable judgment of a court of competent jurisdiction. Neither the Administrative Agent nor any of its directors, officers, agents or employees shall be responsible for or have any duty to ascertain, inquire into or verify: (i) any statement, warranty or representation made in connection with this Agreement, any other Loan Document or any Loan Advance; (ii) the performance or observance of any of the covenants or agreements of Borrower contained herein or in any other Loan Document; (iii) the satisfaction of any condition specified in Schedule 2.1, except receipt of items required to be delivered to the Administrative Agent; or (iv) the validity, effectiveness, genuineness, enforceability, perfection, value, worth or collectability hereof or of any other Loan Document or of any other documents or writing furnished in connection with any Loan Document or of any Collateral; and the Administrative Agent makes no representation of any kind or character with respect to any such matter mentioned in this sentence. The Administrative Agent may execute any of its duties under any of the Loan Documents by or through employees, agents, and attorneys in fact and shall not be answerable to the Lenders, Borrower, or any other Person for the default or misconduct of any such agents or attorneys in fact selected with reasonable care. The Administrative Agent shall not incur any liability by acting in reliance upon any notice, consent, certificate, other document or statement (whether written or oral) believed by it to be genuine or to be sent by the proper party or parties. In particular and without limiting any of the foregoing, the Administrative Agent shall have no responsibility for confirming the accuracy of any certificate or other document or instrument received by it under the Loan Documents. The Administrative Agent may treat the payee of any Obligation as the holder thereof until written notice of transfer shall have been filed with the Administrative Agent signed by such payee in form satisfactory to the Administrative Agent. Each Lender acknowledges that it has independently and without reliance on the Administrative Agent or any other Lender, and based upon such information, investigations and inquiries as it deems appropriate, made its own credit analysis and decision to extend credit to Borrower in the manner set forth in the Loan Documents. It shall be the responsibility of each Lender to keep itself informed as to the creditworthiness of Borrower and the Administrative Agent shall have no liability to any Lender with respect thereto.

## <u>Section 11.6. Indemnity</u>. The Lenders shall ratably, in accordance with their respective Percentages, indemnify and hold the Administrative Agent, and its directors, officers, employees, agents, and representatives harmless from and against any liabilities, losses, costs or expenses suffered or incurred by it under any Loan Document or in connection with the transactions contemplated thereby, regardless of when asserted or arising, except to the extent they are promptly reimbursed for the same by Borrower and except to the extent that any event giving rise to a claim was caused by the gross negligence or willful misconduct of the party seeking to be indemnified, as determined by a final, non-appealable judgment of a court of competent jurisdiction. The obligations of the Lenders under this Section shall survive termination of this Agreement. The Administrative Agent shall be entitled to offset amounts received for the account of a Lender under this Agreement against unpaid amounts due from such Lender to the Administrative Agent hereunder (whether as fundings of participations, indemnities or otherwise) but shall not be entitled to offset against amounts owed to the Administrative Agent by any Lender arising outside of this Agreement and the other Loan Documents.

## <u>Section 11.7. Resignation of Administrative Agent and Successor Administrative Agent</u>. The Administrative Agent may resign at any time by giving written notice thereof to the Lenders and Borrower. Upon any such resignation of the Administrative Agent, the Required Lenders shall have the right to appoint a successor Administrative Agent. If no successor Administrative Agent shall have been

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## so appointed by the Required Lenders, and shall have accepted such appointment, within thirty (30) days after the retiring Administrative Agent's giving of notice of resignation then the retiring Administrative Agent may, on behalf of the Lenders, appoint a successor Administrative Agent, which may be any Lender hereunder or any commercial bank, or an Affiliate of a commercial bank, having an office in the United States of America and having a combined capital and surplus of at least $200,000,000. Any such successor Administrative Agent appointed by the resigning Administrative Agent shall serve only until such time, if any, as the Required Lenders appoint a successor Administrative Agent as provided above. Upon the acceptance of its appointment as the Administrative Agent hereunder, such successor Administrative Agent shall thereupon succeed to and become vested with all the rights and duties of the retiring Administrative Agent under the Loan Documents, and the retiring Administrative Agent shall be discharged from its duties and obligations thereunder. After any retiring Administrative Agent's resignation hereunder as Administrative Agent, the provisions of this Article XI and all protective provisions of the other Loan Documents shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Administrative Agent, but no successor Administrative Agent shall in any event be liable or responsible for any actions of its predecessor. If the Administrative Agent resigns and no successor is appointed, the rights and obligations of such Administrative Agent shall be automatically assumed by the Required Lenders, and (i) Borrower shall be directed to make all payments due each Lender hereunder directly to such Lender, and (ii) the Administrative Agent's rights in the Collateral Documents shall be assigned without representation, recourse or warranty to the Lenders as their interests may appear.

## <u>Section 11.8. Hedging Liability Arrangements</u>. By virtue of a Lender's execution of this Agreement or an assignment agreement pursuant to Section 9.2, as the case may be, any Affiliate of such Lender with whom Borrower has entered into an agreement creating Rate Management Obligations shall be deemed a Lender party hereto for purposes of any reference in a Loan Document to the parties for whom the Administrative Agent is acting, it being understood and agreed that the rights and benefits of such Affiliate under the Loan Documents consist exclusively of such Affiliate's right to share in payments and collections out of the Collateral and the Guaranty as more fully set forth in Section 2.3.4. Without limiting the generality of the foregoing, (i) each such Lender Affiliate shall, for the avoidance of doubt, be deemed to have agreed to the provisions of Section 11.12 and (ii) no such Lender Affiliate shall have any right to notice of any action or to consent to, direct or object to any action hereunder or under any other Loan Document or otherwise in respect of the Collateral (including the release or impairment of any Collateral). In connection with any such distribution of payments and collections, or any request for the release of the Guaranty and the Administrative Agent's Liens in connection with the termination of the Commitments and the payment in full of the Debt, the Administrative Agent shall be entitled to assume no amounts are due to any Lender or its Affiliate with respect to Rate Management Obligations unless such Lender has notified the Administrative Agent in writing of the amount of any such liability owed to it or its Affiliate prior to such distribution or payment or release of Guaranty and Liens.

## <u>Section 11.9. Designation of Additional Agents</u>. The Administrative Agent shall have the continuing right, for purposes hereof, at any time and from time to time to designate one or more of the Lenders (and/or its or their Affiliates) as "syndication agents," "documentation agents," "book runners," "lead arrangers," "arrangers," or other designations for purposes hereto, but such designation shall have no substantive effect, and such Lenders and their Affiliates shall have no additional powers, duties or responsibilities as a result thereof.

## <u>Section 11.10. Releases; Acquisition and Transfer of Collateral.</u> 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Administrative Agent is hereby irrevocably authorized by each of the Lenders to (i) release any Lien covering any Collateral that is sold, transferred, or otherwise disposed of in accordance with the terms and conditions of this Agreement and the relevant Collateral Documents, (ii) reduce or limit the amount of the indebtedness secured by any particular item of Collateral to an amount not less than the

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estimated value thereof to the extent necessary to reduce mortgage registry, filing and similar tax, (iii) release Liens on the Collateral following termination or expiration of the Commitments and payment in full in cash of the Debt and, if then due, Swap Obligations, or (iv) after foreclosure or other acquisition of title, to sell the Collateral (A) for a purchase price equal to or greater than the Debt (or with respect to any Individual Property, the Allocated Loan Amount of such Individual Property), or (B) if approved by the Required Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If all or any portion of the Collateral is acquired by foreclosure or by deed in lieu of foreclosure, Administrative Agent shall take title to the Collateral in its name or by an Affiliate of Administrative Agent, but for the benefit of all Lenders in their Percentages on the date of the foreclosure sale or recordation of the deed in lieu of foreclosure (the "**Acquisition Date**"). Administrative Agent and all Lenders hereby expressly waive and relinquish any right of partition with respect to any Collateral so acquired. After any Collateral is acquired, Administrative Agent shall appoint and retain one or more persons (individually and collectively, the "**Property Manager**") experienced in the management, leasing, sale and/or disposition of similar properties. After consulting with the Property Manager, Administrative Agent shall prepare a written plan for completion of construction (if required), operation, management, improvement, maintenance, repair, sale and disposition of the Collateral and a budget for the aforesaid, which may include a reasonable management fee payable to Administrative Agent (the "**Business Plan**"). Administrative Agent will deliver the Business Plan not later than the sixtieth (60<sup>th</sup>) day after the Acquisition Date to each Lender with a written request for approval of the Business Plan. If the Business Plan is approved by the Required Lenders, Administrative Agent and the Property Manager shall adhere to the Business Plan until a different Business Plan is approved by the Required Lenders. Administrative Agent may propose an amendment to the Business Plan as it deems appropriate, which shall also be subject to Required Lender approval. If the Business Plan (as may be amended) proposed by Administrative Agent is not approved by the Required Lenders, or if sixty (60) days have elapsed following the Acquisition Date without a Business Plan being proposed by Administrative Agent, any Lender may propose an alternative Business Plan, which Administrative Agent shall submit to all Lenders for their approval. If an alternative Business Plan is approved by the Required Lenders, Administrative Agent may appoint one of the approving Lenders to implement the alternative Business Plan. Notwithstanding any other provision of this Agreement, unless in violation of an approved Business Plan or otherwise in an emergency situation, Administrative Agent shall, subject to clause (a) of this Section 11.10, have the right but not the obligation to take any action in connection with the Collateral (including those with respect to property taxes, insurance premiums, completion of construction, operation, management, improvement, maintenance, repair, sale and disposition), or any portion thereof. Upon demand therefor from time to time, each Lender will contribute its Percentage (based on each Lender's Percentage on the Acquisition Date) of all reasonable costs and expenses incurred by Administrative Agent pursuant to the Business Plan in connection with the construction, operation, management, maintenance, leasing and sale of the Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Administrative Agent shall deliver or cause to be delivered by the managing agent, to each of the Lenders, monthly, an income and expense statement for the Property, and each of the Lenders shall promptly contribute its Percentage (based on each Lender's Percentage on the Acquisition Date) of any operating loss for the Property, and such other expenses and operating reserves as Administrative Agent shall deem reasonably necessary pursuant to the Business Plan. To the extent there is net operating income from the Property, Administrative Agent shall, pursuant to the Business Plan, determine the amount and timing of distributions to the Lenders, if any. All such distributions shall be made to the Lenders in proportion to their respective Commitments as of the Acquisition Date.Lenders acknowledge that if title to the Property is obtained by Administrative Agent or its nominee, or an entity co-owned by the Lenders, the Property will not be held as a permanent investment but will be disposed of as soon as practicable and within a time period consistent with any regulations applicable to national banks for owning real estate.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Upon request by Administrative Agent or Borrower at any time, Lenders will confirm in writing Administrative Agent's authority to sell, transfer or release any such liens of particular types or items of Collateral pursuant to this Section 11.10; provided, however, that (i) Administrative Agent shall not be required to execute any document necessary to evidence such release, transfer or sale on terms that, in Administrative Agent's opinion, would expose Administrative Agent to liability or create any obligation or entail any consequence other than the transfer, release or sale without recourse, representation or warranty, and (ii) such transfer, release or sale shall not in any manner discharge, affect or impair the obligations of Borrower other than those expressly being released.

## <u>Section 11.11. Authorization to Enter into, and Enforcement of, the Collateral Documents</u>. The Administrative Agent is hereby irrevocably authorized by each of the Lenders to execute and deliver the Collateral Documents on behalf of each of the Lenders and their Affiliates and to take such action and exercise such powers under the Collateral Documents as the Administrative Agent considers appropriate, provided the Administrative Agent shall not amend the Collateral Documents unless such amendment is agreed to in writing by the Required Lenders. Each Lender acknowledges and agrees that it will be bound by the terms and conditions of the Collateral Documents upon the execution and delivery thereof by the Administrative Agent. Except as otherwise specifically provided for herein, no Lender (or its Affiliates), other than the Administrative Agent, shall have the right to institute any suit, action or proceeding in equity or at law for the foreclosure or other realization upon any Collateral or for the execution of any trust or power in respect of the Collateral or for the appointment of a receiver or for the enforcement of any other remedy under the Collateral Documents; it being understood and intended that no one or more of the Lenders (or their Affiliates) shall have any right in any manner whatsoever to affect, disturb or prejudice the Lien of the Administrative Agent (or any security trustee therefor) under the Collateral Documents by its or their action or to enforce any right thereunder, and that all proceedings at law or in equity shall be instituted, had, and maintained by the Administrative Agent (or its security trustee) in the manner provided for in the relevant Collateral Documents for the benefit of the Lenders and their Affiliates.

## <u>Section 11.12. Recovery of Erroneous Payments</u>. Notwithstanding anything to the contrary in this Agreement, if at any time Administrative Agent determines (in its sole and absolute discretion) that it has made a payment hereunder in error to any Lender or any counterparty to a Rate Management Agreement, whether or not in respect of any portion of the Debt or Rate Management Obligations due and owing by Borrower at such time, where such payment is a Rescindable Amount, then in any such event, each such Person receiving a Rescindable Amount severally agrees to repay to Administrative Agent forthwith on demand the Rescindable Amount received by such Person in immediately available funds in the currency so received, with interest thereon, for each day from and including the date such Rescindable Amount is received by it to but excluding the date of payment to Administrative Agent, at the greater of the Federal Funds Rate and a rate determined by Administrative Agent in accordance with banking industry rules on interbank compensation. Each Lender and each counterparty to a Rate Management Agreement receiving the benefits of any Loan Document irrevocably waives any and all defenses, including any "discharge for value" (under which a creditor might otherwise claim a right to retain funds mistakenly paid by a third party in respect of a debt owed by another), "good consideration", "change of position" or similar defenses (whether at law or in equity) to its obligation to return any Rescindable Amount. Administrative Agent shall inform each Lender and counterparty to a Rate Management Agreement that received a Rescindable Amount promptly upon determining that any payment made to such Person comprised, in whole or in part, a Rescindable Amount. Each Person's obligations, agreements and waivers under this Section 11.12 shall survive the resignation or replacement of the Administrative Agent, any transfer of rights or obligations by, or the replacement of, a Lender, the termination of the Commitments, the repayment, satisfaction or discharge of the Debt (or any portion thereof) under any Loan Document and/or the repayment, satisfaction or discharge of any Rate Management Obligation (or any portion thereof).

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XII. MISCELLANEOUS

## <u>Section 12.1. Successors and Assigns</u>. 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 Administrative Agent and Lenders. Borrower may not assign or otherwise transfer any of its rights or obligations under any Loan Document, and any such assignment shall be void.

## <u>Section 12.2. Governing Law</u>. This Agreement shall be construed in accordance with and governed by the internal laws (and not the law of conflicts) of the State of Illinois.

## <u>Section 12.3. Jurisdiction, Venue and Consent of Process</u>.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Consent to Jurisdiction</u>. Borrower hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of any United States federal or Illinois state court sitting in Chicago, Illinois, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such Illinois State or, to the extent permitted by law, in such federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement shall affect any right that Administrative Agent and Lenders may otherwise have to bring any action or proceeding relating to this Agreement against Borrower or its properties in the courts of any jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Consent and Waiver of Objection to Venue</u>. Borrower hereby irrevocably and unconditionally agrees that the exclusive venue for any action or proceeding arising out of or relating to this Agreement shall be in any United States federal or Illinois state court sitting in Chicago, Illinois, and any appellate court from any thereof. Borrower hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement in any court referred to in this Section 12.3(b). Borrower hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. Nothing contained in this Section 12.3(b) shall bar, prevent, or prejudice Administrative Agent and Lenders from commencing and maintaining any action or proceeding arising out of or relating to this Agreement in any other court or venue as applicable law may permit or require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Service of Process</u>. BORROWER HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS AND AGREES THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE UPON BORROWER BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, ADDRESSED TO BORROWER AT THE ADDRESS SET FORTH IN SECTION 12.6 OF THIS AGREEMENT AND SERVICE SO MADE SHALL BE DEEMED COMPLETE TEN (10) DAYS AFTER THE SAME HAS BEEN DEEMED RECEIVED.

## <u>Section 12.4. Amendments</u>. Subject to Section 2.2.6, (a) any provision of this Agreement or the other Loan Documents may be amended or waived if, but only if, such amendment or waiver is in writing and is signed by (1) Borrower, (2) the Required Lenders or the Administrative Agent with the consent of the Required Lenders, and (3) if the rights or duties of the Administrative Agent are affected thereby, the Administration Agent; provided that, notwithstanding anything to the contrary in this Agreement, the approval or consent of all of the Lenders shall be required for any amendment or waiver of any of the terms or conditions of the Note, this Agreement or any of the other Loan Documents which would:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) extend the time for any payments of interest or principal, including the Maturity Date (beyond any extension permitted herein);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) waive or forgive the requirement to pay any installment of interest or principal on the Loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) reduce the rate of interest payable by Borrower pursuant to this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) release any material portion of the Collateral granted under the Loan Documents except as required hereunder or thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) release any Borrower, Guarantor or any other guarantor from any of their material obligations with respect to the Loan (subject to Section 2.8, Section 2.9 and Section 2.11); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) modify any of the provisions of this Section 12.4, the definition of "Required Lenders", or any other provision in the Loan Documents specifying the number or percentage of Lenders required to waive, amend or modify any rights thereunder or make any determination or grant any consent thereunder.

In addition, no amendment, waiver or consent shall extend or increase the Commitment of any Lender without the written consent of such Lender (it being understood that a waiver of a Default or Event of Default shall not constitute an extension or increase of any Lender's Commitment).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything to the contrary in Section 12.4(a), Administrative Agent and Lenders shall be entitled to amend (whether pursuant to a separate intercreditor agreement or otherwise) any of the terms, conditions or agreements set forth in Article XI or as to any other matter in the Loan Documents respecting the required number of Lenders to approve or disapprove any matter or to take or refrain from taking any action, without the consent of Borrower or any other Person or the execution by Borrower or any other Person of any such amendment or intercreditor agreement.

## <u>Section 12.5. Delay Not a Waiver</u>. Neither any failure nor any delay on the part of Administrative Agent in insisting upon strict performance of any term, condition, covenant or agreement, or exercising any right, power, remedy or privilege hereunder, or under any other Loan Document, shall operate as or constitute a waiver thereof, nor shall a single or partial exercise thereof preclude any other future exercise, or the exercise of any other right, power, remedy or privilege. In particular, and not by way of limitation, by accepting payment after the due date of any amount payable under this Agreement or any other Loan Document, Administrative Agent shall not be deemed to have waived any right either to require prompt payment when due of all other amounts due under this Agreement or the other Loan Documents, or to declare a default for failure to effect prompt payment of any such other amount. Administrative Agent shall have the right to waive or reduce any time periods that Administrative Agent is entitled to under the Loan Documents in its sole and absolute discretion. 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.

## <u>Section 12.6. Notices</u>.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Notices Generally</u>. Except as provided in paragraph (b), below, all notices and other communications (any of the foregoing, a "**Notice**") required, permitted, or desired to be given hereunder shall be in writing and sent by hand delivery, registered or certified mail, postage prepaid, return receipt requested, or by nationally recognized overnight courier addressed to the party to be so notified at its address hereinafter set forth, or to such other address as such party may hereafter specify in accordance with the

&nbsp;&nbsp;&nbsp;&nbsp;78580509.10 ------

provisions of this Section. Any Notice shall be deemed to have been received: (a) if hand delivered, when delivered, (b) three (3) days after the date such Notice is mailed, or (c) on the next Business Day if sent by an overnight commercial courier, in each case addressed to the parties as follows:

If to Administrative Agent: BMO Harris Bank N.A.

115 S. LaSalle Street, 19W

Chicago, Illinois 60603<br> Attention: Dayle Rains

with a copy to: BMO Harris Bank N.A.

115 S. LaSalle Street, 19W

Chicago, Illinois 60603

Attention: Portfolio Manager/

Inland MOB Portfolio

with a copy to: Polsinelli<br> 150 N. Riverside Plaza, Suite 3000<br> Chicago, Illinois 60606<br> Attention: Douglas L. Noren, Esq.

If to Borrower: IPCAAF MOB Portfolio II, L.L.C.

c/o Inland Private Capital Corporation

2901 Butterfield Road

Oak Brook, Illinois 6023

Attention: Asset Management Department

with a copy to: The Inland Real Estate Group, LLC/

Law Department

2901 Butterfield Road

Oak Brook, Illinois 60523

Attention: General Counsel

If to a Lender: to its address (or e-mail address) set forth in its Administrative Questionnaire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Electronic Communications</u>. Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communication (including e-mail, FpML, and Internet or intranet websites) pursuant to procedures approved by the Administrative Agent. The Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; provided that approval of such procedures may be limited to particular notices or communications. Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender's receipt of an acknowledgement from the intended recipient (such as by the "return receipt requested" function, as available, return e-mail or other written acknowledgement), and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient, at its e-mail address as described in the foregoing clause (i), of notification that such notice or communication is available and identifying the website address therefor; provided that, for both clauses (i) and (ii) above, if such notice, email or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Platform</u>.The Borrower agrees that the Administrative Agent may, but shall not be obligated to, make the Communications (as defined below) available to the Lenders by posting the Communications on the Platform. The Platform (as defined below) is provided "as is" and "as available." The Agent Parties (as defined below) do not warrant the adequacy of the Platform and expressly disclaim liability for errors or omissions in the Communications. No warranty of any kind, express, implied or statutory, including any warranty of merchantability, fitness for a particular purpose, non-infringement of third-party rights or freedom from viruses or other code defects, is made by any Agent Party in connection with the Communications or the Platform. In no event shall the Administrative Agent or any of its Affiliates (collectively, the "**Agent Parties**") have any liability to the Borrower, any Lender or any other Person or entity for damages of any kind, including direct or indirect, special, incidental or consequential damages, losses or expenses (whether in tort, contract or otherwise) arising out of the Borrower's or the Administrative Agent's transmission of communications through the Platform.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Certain Defined Terms</u>. As used in this Section 12.6, the following terms have the following meanings:

"**Communications**" means, collectively, any notice, demand, communication, information, document or other material provided by or on behalf of the Borrower pursuant to any Loan Document or the transactions contemplated therein that is distributed to the Administrative Agent or any Lender by means of electronic communications pursuant to this Section, including through the Platform.

"**Platform**" means Debt Domain, Intralinks, Syndtrak, DebtX or a substantially similar electronic transmission system.

## <u>Section 12.7. Trial by Jury</u>. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

## <u>Section 12.8. Headings</u>. The Article and/or Section headings and the **Table of Contents** in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose.

## <u>Section 12.9. Severability</u>. 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, and to that end, the provisions of this Agreement are declared to be severable.

## <u>Section 12.10. Preferences</u>. Lenders 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 Lenders, which payment or proceeds

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## 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 Lenders.

## <u>Section 12.11. Waiver of Notice</u>. Borrower hereby expressly waives the right to receive any notice from Administrative Agent or Lenders 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 Administrative Agent or Lenders to Borrower.

## <u>Section 12.12. Expenses</u>. Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by Administrative Agent and its Affiliates, including appraisal fees, environmental report fees, inspection fees, closing costs, construction consultant charges, title and escrow charges, the cost of SyndTrak, Intralinks or a similar electronic workspace, and the reasonable fees, charges and disbursements of counsel for Administrative Agent, in connection with the preparation, execution and administration of this Agreement and the other Loan Documents, or any extensions, amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) during the existence of an Event of Default, in connection with the syndication of the Loan, and (iii) all out-of-pocket expenses incurred by Administrative Agent, including the fees, charges and disbursements of any counsel for Administrative Agent, in connection with the enforcement or protection of its rights in connection with this Agreement and the other Loan Documents, including its rights under this Section, or in connection with the Loan made hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of the Loan.

## <u>Section 12.13. Indemnity</u>. Borrower shall indemnify, defend and hold harmless Administrative Agent, each Lender and each of their respective Affiliates, and their respective successors and assigns, including the directors, officers, partners, members, shareholders, participants, employees, agents and advisors (each, an " Indemnified Party "), from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, claims, costs, expenses and disbursements of any kind or nature whatsoever (including the fees and disbursements of counsel for an Indemnified Party), that may be imposed on, incurred by, or asserted against any Indemnified Party (collectively, the " Indemnified Liabilities ") in any manner, relating to or arising out of, in connection with or as a result of: (i) the execution or delivery of this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or under any other Loan Document, or the consummation of the Loan transaction or any other transactions contemplated hereby or under any other Loan Document, (ii) the Loan or the use of the proceeds therefrom, or (iii) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory and regardless of whether any Indemnified Party is a party thereto; provided, however, that Borrower shall not have any obligation to any Indemnified Party hereunder to the extent that such Indemnified Liabilities arose from the gross negligence or willful misconduct of such Indemnified Party, as determined by a final, non-appealable judgment of a court of competent jurisdiction. Any amounts payable to any Indemnified Party by reason of the application of this paragraph shall be payable within five (5) days after demand therefor and shall bear interest at the Default Rate from the date loss or damage is sustained by any Indemnified Party until paid. The obligations and liabilities of Borrower under this Section 12.13 shall survive the term of the Loan and the exercise by Administrative Agent of any of its rights or remedies under the Loan Documents, including the acquisition of the Property by foreclosure or a conveyance in lieu of foreclosure.

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## <u>Section 12.14. Schedules and Exhibits Incorporated</u>. The Schedules and Exhibits annexed hereto are hereby incorporated herein as a part of this Agreement with the same effect as if set forth in the body hereof.

## <u>Section 12.15. No Joint Venture or Partnership; No Third-Party Beneficiaries; Waiver of Consequential Damages.</u> 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.15.1.** Borrower, Administrative Agent and Lenders 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, joint tenancy or fiduciary relationship between Borrower, Administrative Agent and any Lender or to grant Administrative Agent or any Lender any interest in the Property other than that of mortgagee, beneficiary or lender. Without limiting the generality of the foregoing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Administrative Agent and Lenders do not undertake or assume any responsibility or duty to Borrower or any third party to select, review, inspect, supervise, pass judgment upon or inform Borrower of any matter in connection with the Property, and Lenders owe no duty of care to protect Borrower, any Guarantor, Tenant or third party against negligent, faulty, inadequate or defective building or construction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.15.2.** This Agreement and the other Loan Documents are solely for the benefit of Administrative Agent and Lenders and nothing contained in this Agreement or the other Loan Documents shall be deemed to confer upon anyone other than Administrative Agent and Lenders 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 Administrative Agent and Lenders to make the Loan hereunder are imposed solely and exclusively for the benefit of Administrative Agent and Lenders and no other Person shall have standing to require satisfaction of such conditions in accordance with their terms or be entitled to assume that Administrative Agent or Lenders 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. No payment of funds directly to a contractor or subcontractor or provider of services shall be deemed to create any third party beneficiary status or recognition of same by Administrative Agent or Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.15.3.** To the fullest extent permitted by applicable law, Borrower agrees not to assert, and hereby waives, in any legal action or other proceeding, any claim against Administrative Agent or any Lender, on any theory of liability, for special, indirect, consequential, special, exemplary or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, the Loan or the use of the proceeds thereof.

## <u>Section 12.16. Publicity</u>. All news releases, publicity or advertising by Borrower, Administrative Agent, Lenders or their respective Affiliates through any media intended to reach the general public which refers to the Loan Documents or the Loan, Administrative Agent or any Lender, or a Loan purchaser, shall be subject to the prior approval of Administrative Agent and Borrower.

## <u>Section 12.17. Waiver of Offsets/Defenses/Counterclaims</u>. Borrower hereby waives the right to assert a counterclaim, other than a compulsory counterclaim, in any action or proceeding brought against it by Administrative Agent or its agents or otherwise to offset any obligations to make the payments required by the Loan Documents. No failure by Administrative Agent or any Lender to perform any of its obligations hereunder shall be a valid defense to, or result in any offset against, any payments which Borrower is obligated to make under any of the Loan Documents.

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## <u>Section 12.18. Conflict; Construction of Documents; Reliance</u>. In the event of any conflict between the provisions of this Agreement and any of the other Loan Documents, the provisions of this Agreement shall control. The parties hereto acknowledge that they were represented by competent counsel in connection with the negotiation, drafting and execution of the Loan Documents and that such Loan Documents shall not be subject to the principle of construing their meaning against the party which drafted same. Borrower acknowledges that, with respect to the Loan, Borrower shall rely solely on its own judgment and advisors in entering into the Loan without relying in any manner on any statements, representations or recommendations of Administrative Agent, any Lender or any parent, subsidiary or Affiliate of Administrative Agent or any Lender. Administrative Agent 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 Lender or any parent, subsidiary or Affiliate of Administrative Agent or any 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 Administrative Agent's exercise of any such rights or remedies. Borrower acknowledges that Administrative Agent and Lenders engage 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.

## <u>Section 12.19. Brokers and Financial Advisors</u>. 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, other than Newmark Knight & Frank, which shall be paid by Borrower pursuant to a separate agreement. Borrower shall indemnify, defend and hold Administrative Agent and each Lender harmless from and against any and all claims, liabilities, costs and expenses of any kind (including Lender's reasonable attorneys' fees and expenses) in any way relating to or arising from a claim by any Person that such Person acted on behalf of Borrower or Administrative Agent or any Lender in connection with the transactions contemplated herein. The provisions of this Section 12.19 shall survive the expiration and termination of this Agreement and the payment of the Debt.

## <u>Section 12.20. Recourse</u>. Borrower shall be fully liable, on a recourse basis, to Administrative Agent and Lenders for repayment of all amounts due hereunder and under the Loan Documents. Notwithstanding anything to the contrary herein or in any other Loan Document (other than pursuant to the Guaranty and Environmental Indemnity), no constituent partner, member or owner of a direct or indirect interest in Borrower shall have any personal liability for the Debt under this Agreement and/or the other Loan Documents (other than pursuant to the Guaranty and Environmental Indemnity), and Administrative Agent and Lenders expressly waives and releases all right to assert any personal liability for the Debt under the Loan Documents against any constituent partners or members of Borrower and any owner of a direct or indirect interest in Borrower (other than pursuant to the Guaranty and Environmental Indemnity).

## <u>Section 12.21. Prior Agreements</u>. 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, understandings and negotiations among or between such parties, whether oral or written, are superseded by the terms of this Agreement and the other Loan Documents.

## <u>Section 12.22. Joint and Several Liability</u>. If more than one Person has executed this Agreement as "Borrower," the representations, covenants, warranties and obligations of all such Persons hereunder shall be joint and several.

## <u>Section 12.23. Time is of the Essence</u>. Time is of the essence under this Agreement.

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## <u>Section 12.24. Set-Off; Sharing of Set-Off</u>.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In addition to any rights and remedies of Lender provided by this Agreement and by law, each Lender shall have the right, upon the occurrence of an Event of Default, with the prior written consent of Administrative Agent, without prior notice to Borrower, any such notice being expressly waived by Borrower to the extent permitted by applicable law, to set-off and appropriate and apply against such amount any and all deposits (general or special, time or demand, provisional or final), in any currency, and any other credits, indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or contingent, matured or unmatured, at any time held or owing by such Lender or any Affiliate thereof to or for the credit or the account of Borrower. Each Lender agrees promptly to notify Borrower after any such set-off and application made by such Lender; provided that the failure to give such notice shall not affect the validity of such set-off and application.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Lender agrees with each other Lender a party hereto that if such Lender shall receive and retain any payment, whether by set off or application of deposit balances or otherwise, on the Loan in excess of its ratable share of payments on all such Debt then outstanding to the Lenders, then such Lender shall purchase for cash at face value, but without recourse, ratably from each of the other Lenders such amount of the Loan, or participations therein, held by each such other Lenders (or interest therein) as shall be necessary to cause such Lender to share such excess payment ratably with all the other Lenders; provided, however, that if any such purchase is made by any Lender, and if such excess payment or part thereof is thereafter recovered from such purchasing Lender, the related purchases from the other Lenders shall be rescinded ratably and the purchase price restored as to the portion of such excess payment so recovered, but without interest.

## <u>Section 12.25. Records</u>. The unpaid amount of the Loan and the amount of any other credit extended by Lenders to or for the account of Borrower set forth on the books and records of Administrative Agent shall be presumptive evidence of the amount thereof owing and unpaid, but failure to record any such amount on Administrative Agent's books and records shall not limit or affect the obligations of Borrower under the Loan Documents to make payments on the Loan when due.

## <u>Section 12.26. Execution in Counterparts</u>. This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.

## <u>Section 12.27. Survival of Indemnities</u>. All indemnities and other provisions relative to reimbursement to the Lenders of amounts sufficient to protect the yield of the Lenders with respect to the Loan, including, but not limited to, Sections 2.3.6, 2.3.7, 2.3.8, 12.13, and 12.19, shall survive the termination of this Agreement and the other Loan Documents and the payment of the Debt.

## <u>Section 12.28. Acknowledgement and Consent to Bail-In of EEA Financial Institutions</u>. Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the write-down and conversion powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the effects of any Bail-in Action on any such liability, including, if applicable:

&nbsp;&nbsp;&nbsp;&nbsp;78580509.10 ------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a reduction in full or in part or cancellation of any such liability;

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

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

XIII. MULTIPLE BORROWERS

## <u>Section 13.1. Joint and Several Liability</u>. Each Borrower acknowledges, covenants, represents and warrants the following:
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Inducemen</u>t. Each Lender has been induced to make the Loan to Borrowers in part based upon the assurances by each Borrower that each Borrower desires that the Note and the Debt be honored and enforced as separate Debt of each Borrower should the Administrative Agent on behalf of the Lenders desire to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Separate Foreclosures</u>. Each Borrower desires and intends that the Debt under the Note and the other Loan Documents may be enforced separately from the Debt of the other Borrowers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Joint and Several</u>. Notwithstanding the foregoing or anything else in this Agreement or the other Loan Documents to the contrary, the Loan and the other Debt constitute the joint and several obligation of each Borrower and Administrative Agent on behalf of the Lenders may at its option enforce the entire amount of the Loan and the other Debt against any one or more Borrowers. Notwithstanding any provisions of this Agreement or any other Loan Document to the contrary, it is intended that the joint and several nature of the liability of Borrowers for the Debt and the liens and security interests, if any, granted as security for the Debt, not constitute a fraudulent conveyance under the Bankruptcy Code or a fraudulent conveyance or fraudulent transfer under the applicable provisions of any fraudulent conveyance or fraudulent transfer law or similar law of any state, nation or other governmental unit, as in effect from time to time (a "**Fraudulent Conveyance**"). Consequently, if the liability of any Borrower for the Debt, or any liens or security interests granted by any Borrower securing the Debt would, but for the application of this sentence, constitute a Fraudulent Conveyance, the liability of such Borrower and the liens and security interests securing such liability shall be valid and enforceable only to the maximum extent that would not cause such liability or such lien or security interest to constitute a Fraudulent Conveyance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Separate Exercise of Remedies</u>. Administrative Agent on behalf of the Lenders may exercise remedies against any Borrower and its property separately, whether or not Administrative Agent on behalf of the Lenders exercises remedies against any other Borrowers or its property. Administrative Agent on behalf of the Lenders may enforce any Borrower's Debt without enforcing any other Borrowers' Debt. Any failure or inability of Administrative Agent on behalf of the Lenders to enforce any Borrower's Debt shall not in any way limit Administrative Agent's right to enforce the Debt of any other Borrowers. If Administrative Agent on behalf of the Lenders forecloses or exercises similar remedies under any one or more of the Loan Documents, then such foreclosure or similar remedy shall be deemed to reduce the balance of the Debt only to the extent of the net cash proceeds actually realized by Administrative Agent and Lenders from such foreclosure or similar remedy or, if applicable, Administrative Agent's and Lenders' credit bid (net of all expenses incurred in connection with the foreclosure) at such sale, regardless of the

&nbsp;&nbsp;&nbsp;&nbsp;78580509.10 ------

effect of such foreclosure or similar remedy on the Note secured by such Loan Documents under the applicable state law.

## <u>Section 13.2. Waivers</u>.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. Without notice to, or consent by, any Borrowers, and in Administrative Agent and Lenders' sole and absolute discretion and without prejudice to Administrative Agent or Lenders or in any way limiting or reducing each or any Borrower's liability for all of its Debt under this Agreement and the other Loan Documents, Administrative Agent and Lenders may, except as otherwise provided in this Agreement: (a) to the extent permitted under the Loan Documents following an Event of Default, sell, exchange, release or exercise remedies with respect to any or all collateral, (b) accept or reject additional collateral for the Loan or any portion thereof, (c) discharge or release any party or parties liable under the Loan Documents, (d) foreclose or otherwise realize on any collateral, or attempt to foreclose or otherwise realize on any collateral, whether such attempt is successful or unsuccessful, and whether such attempt relates to some or all or only some portion of the collateral, (e) accept or make compositions or other arrangements or file or refrain from filing a claim in any bankruptcy, insolvency or similar proceeding, and (f) credit payments in such manner and order of priority to principal, interest or other Debt as Administrative Agent and Lenders may determine in their reasonable discretion. If Administrative Agent and Lenders perform any of the actions described in this Section, then every Borrowers' liability shall continue in full force and effect even if Administrative Agent's and Lenders' actions impair, diminish or eliminate any Borrower's subrogation, contribution or reimbursement rights (if any) against any other Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Waivers of Rights and Defenses</u>. Each Borrower waives any right to require Administrative Agent or Lenders to (a) proceed against any particular Borrower(s), or any particular collateral or in any particular order of realization, (b) proceed against or exhaust any collateral, or (c) pursue any other right or remedy. Each Borrower agrees that Administrative Agent and Lenders may proceed against each or any Borrower, with respect to the Debt of such Borrower under this Agreement and the other Loan Documents without taking any actions against any other Borrowers and without proceeding against or exhausting any other collateral. Each Borrower agrees that Administrative Agent and Lenders may unqualifiedly exercise (or refrain from exercising) in its sole discretion any or all rights and remedies available to it against any Borrowers without impairing Administrative Agent's and Lenders' rights and remedies in enforcing the Debt of any other Borrowers under this Agreement or the other Loan Documents, under which every Borrowers' liabilities shall remain independent and unconditional. Each Borrower agrees and acknowledges that Administrative Agent and Lenders' exercise of certain of such rights or remedies may affect or eliminate such Borrower's right of subrogation or recovery (if any) against the other Borrowers, and that such Borrower may incur a partially or totally non-reimbursable liability in performing its Debt under the Loan Documents. Without limiting the generality of any other waivers in this Agreement, each Borrower expressly waives any statutory or other right that such Borrower might otherwise have to require Administrative Agent and Lenders to exhaust the collateral held with respect to any other Borrower before Administrative Agent and Lenders may proceed against the collateral owned by such Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Additional Waivers</u>. Each Borrower waives diligence and all demands, protest, presentments and notices of every kind or nature including notices of protest, dishonor, nonpayment, acceptance of the Debt of such Borrower under this Agreement and the other Loan Documents and the creation, renewal, extension, modification or accrual of any such Debt, except that the foregoing shall not be a waiver of any notices from Administrative Agent that are either required by law or by the Loan Documents. No failure or delay on Administrative Agent's or Lenders' part in exercising any power, right or privilege under the Loan Documents shall impair or waive any such power, right or privilege.

## <u>Section 13.3. Full Knowledge</u>. Each Borrower acknowledges that such Borrower has had a full and adequate opportunity to review the Loan Documents, and all underlying facts relating to the transaction

&nbsp;&nbsp;&nbsp;&nbsp;78580509.10 ------

## contemplated by the Loan Documents. Each Borrower agrees that Administrative Agent and Lenders have no duty, whether now or in the future, to disclose to any Borrower any information pertaining to such Borrower, any collateral or the other Borrowers. Each Borrower assumes responsibility for keeping itself informed of the financial condition of each other Borrower, and any and all endorsers and/or guarantors of any instrument or document evidencing all or any part of such other Borrower's Debt, and of all other circumstances bearing upon the risk of nonpayment by such other Borrower of their Debt.

## <u>Section 13.4. Adequate Consideration</u>. Each Borrower acknowledges that such Borrower has received adequate consideration for execution of the Loan Documents to which such Borrower is a party by virtue of Lenders' making the Loan (which benefits each and every Borrower).

## <u>Section 13.5. Rights of Contribution; Subordination</u>. Borrowers hereby agree, as between themselves, that if any Borrower shall pay any obligation of the other Borrowers under the Loan Documents, then such other Borrowers shall, on demand, pay to such Borrower the amount of such excess payment; provided, however, the right of a Borrower to receive such excess payment shall be subordinate and subject in right of payment to the prior payment in full of all the Debt of Borrowers to Lenders under the Loan Documents and no Borrower shall exercise any right or remedy with respect to such excess payment until payment and satisfaction in full of all of such Debt to Lenders. No Borrower requires or expects, and no Borrower is entitled to, any other right of reimbursement against any other Borrowers as consideration for entering into the Loan Documents to which such Borrower is a party. If any amount shall be paid to a Borrower on account of such contribution rights at any time prior to payment in full of the Debt has occurred, such amount shall be held in trust for the benefit of Lenders and shall forthwith be paid to Administrative Agent for the benefit of the Lenders to be applied to the Debt in accordance with the terms of this Agreement.

## <u>Section 13.6. Lender's Disgorgement to Payments</u>. Upon payment of all or any portion of the Loan, every Borrower's Debt under the Loan Documents shall continue and remain in full force and effect if all or any part of such payment is, pursuant to any bankruptcy, insolvency or similar proceeding or otherwise, avoided or recovered directly or indirectly from Lenders as a preference, fraudulent transfer or otherwise, irrespective of (a) any notice of revocation given by such Borrower prior to such avoidance or recovery, or (b) payment in full of the Debt. If, in any such proceeding, any party seeks to require Administrative Agent or Lenders to disgorge or repay any payments previously made by any Borrower to Administrative Agent or Lenders, then such Borrower and/or any other Borrower shall jointly and severally be obligated to pay Administrative Agent and Lenders, as applicable, within ten (10) days after such written request, an amount equal to the amount adjudicated to be disgorged or repaid. This Section 13.6 shall survive repayment of all or any portion of the Debt.
**[NO FURTHER TEXT ON THIS PAGE]**

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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.

**ADMINISTRATIVE AGENT:**

BMO HARRIS BANK N.A., a national banking association, as Administrative Agent

By:<u>/s/ Ryan M Stewart</u> 

Name: <u>Ryan M. Stewart</u>

Title: <u>Director</u>

*Signature Page – Loan Agreement*

78580509.10 ------

**BORROWERS**:

MOB CEDAR PARK, L.L.C.,

MOB 5255 SAN ANTONIO, L.L.C.,

MOB 9157 SAN ANTONIO, L.L.C.,

MOB RALEIGH, L.L.C.,

MOB 1431 HOUSTON, L.L.C.,

MOB 1 NEW BRITAIN, L.L.C.,

MOB 300 NEW BRITAIN, L.L.C.,

MOB OKLAHOMA CITY, L.L.C.,

MOB PEORIA, L.L.C.,

MOB PHOENIX, L.L.C.,

MOB 3855 GILBERT, L.L.C.,

MOB 700 CHANDLER, L.L.C.,

MOB 3686 GILBERT, L.L.C.,

MOB KINGWOOD, L.L.C.,

MOB GARDEN CITY, L.L.C., <br>each a Delaware limited liability company

By: IPCAAF MOB Portfolio II, L.L.C., <br>a Delaware limited liability company, its sole member

By: <u>/s/ Joseph E. Binder</u>

Name: <u>Joseph E. Binder</u>

Title: <u>Executive Vice President</u>

IPCAAF MOB PORTFOLIO II, L.L.C., a Delaware limited liability company

By: <u>/s/ Joseph E. Binder</u>

Name: <u>Joseph E. Binder</u>

Title: <u>Executive Vice President</u>

*Signature Page – Loan Agreement*

78580509.10 ------

**LENDERS**:

**BMO HARRIS BANK N.A.**, a national banking association

By: <u>/s/ Ryan M Stewart</u><br>Name: <u>Ryan M Stewart</u> <br>Title: <u>Director</u>

*Signature Page – Loan Agreement*

78580509.10 ------

**<u>EXHIBIT A</u>**

**<u>LEGAL DESCRIPTION OF PROPERTIES</u>** 

Tract 1:

A 2.688 acre, or 117,077 square feet more or less, said tract being all of Lot 1, Block A, a Replat of Lots 1, 2 & 3 of the Replat of Block "A", Quest Village Section 2 Subdivision, recorded in Document No. 2011065621 of the Plat Records of Williamson County, Texas, in the City of Cedar Park, Williamson County, Texas. Said 2.688 acre tract being more fully described as follows, with bearings based on the north line of Replat of Block "A" Quest Village, Section 2 subdivision recorded in cabinet FF, Slide 262-263 of the Plat Records of Williamson County, Texas:

BEGINNING: At a found 1/2" iron rod with cap marked "Sam", the southwest corner of said Lot 1, the northwest corner of Lot 1, Block A, Quest Village Section 10 Subdivision recorded in Cabinet U, Slides 73-74 of the Plat Records of Williamson County, Texas and a point in the east right of way line of Discovery Boulevard, a 100' right of way recorded in Volume 1806, Page 652 of the Deed Records of Williamson County, Texas;

THENCE: Along and with the west line of said Lot 1 and the east right of way line of said Discovery Boulevard the following calls and distances:

N 20°17'21" W, a distance of 106.40 feet to a found 1/2" iron rod with cap, a point of curvature;

Northwesterly, along a non-tangent curve to the right, said curve having a radial bearing of N 69°29'15" E, a radius of 1117.67 feet, a central angle of 04°10'09", a chord bearing and distance of N 18°25'41" W, 81.31 feet, an arc length of 81.33 feet to a set 1/2" iron rod with yellow cap marked "Pape-Dawson", a point of reverse curvature;

Northwesterly, along a non-tangent curve to the left, said curve having a radial bearing of S 73°50'27" W, a radius of 1217.72 feet, a central angle of 04°10'57", a chord bearing and distance of N 18°15'01" W, 88.87 feet, an arc length of 88.89 feet to a found 1/2" iron rod with cap marked "CS-LTD";

N 20°16'35" W, a distance of 37.37 feet to a found 1/2" iron rod with cap marked "Pape-Dawson", from which a found 1/2" iron rod with cap marked "CS-LTD bears N 20°24'12" W, 0.5 feet;

THENCE : Northeasterly, along a non-tangent curve to the right, along the southeast cut-back of said Discovery Boulevard and R.M. 1431/East Whitestone Boulevard, a 200' right of way recorded in Cabinet M. Slide 42 of the Plat Records of Williamson County, Texas, said curve having a radial bearing of N 69°32'42" E, a radius of 25.22 feet, a central angle of 90°00'41", a chord bearing and distance of N 24°33'02" E, 35.67 feet, an arc length of 39.62 feet to a set 1/2" iron rod with yellow cap marked "Pape-Dawson", from which a found 1/2" iron rod bears N 18°20'52" W, a distance of 0.47';

THENCE: N 69°37'32" E, along and with the north line of said Lot 1 and the south right of way line of R.M. 1431/East Whitestone Boulevard, a distance of 288.07 feet to a found 1/2" iron rod with yellow cap marked "Pape-Dawson", the northeast corner of said Lot 1, a point in the south right of way line of R.M. 1431/East Whitestone Boulevard and the northwest corner of Lot 2, Replat of Block "A" Quest Village Section 2 Subdivision recorded in Cabinet FF, Slides 262-263 of the Plat Records of Williamson County, Texas;

THENCE: S 20°22'18" E, departing the south right of way line of R.M. 1431/East Whitestone Boulevard, along and with the east line of said Lot 1 and the west line of said Lot 2, a distance of 400.45 feet to a found 1/2" iron rod with yellow cap marked "Pape-Dawson", the southeast corner of said Lot 1, the southwest corner of said Lot 2 and a point in the north line of the aforementioned Lot 1, Block A of Quest Subdivision;

THENCE: S 80°29'39" W, along and with the south line of said Lot 1 and the north line of said Lot 1, Block A of Quest Subdivision, a distance of 325.35 feet to the POINT OF BEGINNING and containing 2.688 acres

&nbsp;&nbsp;&nbsp;&nbsp;78580509.10 ------

in the City of Cedar Park, Williamson County, Texas, Said tract being described in accordance with a survey made on the ground and a survey description and map prepared under Job No. 59004-13 by Pape Dawson Engineers, Inc.

Tract 2:

Tract 3:

For Informational Purposes: *Commonly known as: 900 E. Whitestone Blvd., Cedar Park, TX* 

&nbsp;&nbsp;&nbsp;&nbsp;78580509.10 ------

FIRST PARCEL

A certain piece or parcel of land as shown as AREA = 4.97 ACRES" on a map entitled "PROPERTY SURVEY PREPARED FOR INVESTMENT ASSOCIATES 300 KENSINGTON AVENUE NEW BRITAIN & BERLIN, CONNECTICUT SCALE 1" = 30' DATE 4-20-93 SHEET 1 OF 2" prepared by J.R. RUSSO & ASSOCIATES LAND SURVEYORS & PROFESSIONAL ENGINEERS 1 SHOHAM ROAD EAST WINDSOR, CONNECTICUT 06088 623 -0569 which map is on file in the Berlin Land Records and in the New Britain Land Records.

Commencing at a Connecticut Highway Department monument set in the easterly street line of Kensington Avenue which monument marks the intersection of the easterly street line of Kensington Avenue and the New Britain/Berlin Town Line;

Thence running along the easterly street line of Kensington Avenue along a curve to the right having a radius of 1,392.70 feet a distance of 319.45 feet to a point;

Thence running continuing along said Kensington Avenue along a curve to the right having a radius of 25.00 feet a distance of 21.85 feet to a point;

Thence running along the southerly street line of Clinic Drive N 85° 05' 00" a distance of 677.00 feet to a point; Thence running S 4° 55' 00" E a distance of 274.57 feet to a point;

Thence running S 84° 57' 14" W a distance of 134.56 feet to an iron pin;

Thence continuing along land of CSTD Realty Partnership S 85° 03' 26" W a distance of 736.85 feet to the point and place of beginning.

SECOND PARCEL

A certain piece or parcel of land as shown as "AREA 0.32 ACRES" on a map entitled "PROPERTY SURVEY PREPARED FOR INVESTMENT ASSOCIATES 300 KENSINGTON AVENUE NEW BRITAIN & BERLIN, CONNECTICUT SCALE 1" = 30' DATE 4-20-93 SHEET 1 OF 2" prepared by J.R. RUSSO & ASSOCIATES LAND SURVEYORS & PROFESSIONAL ENGINEERS 1 SHOHAM ROAD EAST WINDSOR, CONNECTICUT 06088 623-0569 which map is on file in the Berlin Land Records and in the New Britain Land Records.

Commencing at a point in the southerly street line of Clinic Drive which point marks the northeasterly corner of the herein described premises and the northwesterly corner of land N/F Parthenon Realty Trust;

Thence running along land of said Realty Trust along a curve to the left having a radius of 15.00 feet a distance of 23.56 feet to a point;

Thence running along land of said Realty Trust S 4° 55' 00" E a distance of 259.46 feet to a point;

Thence running S 84° 57' 14" W a distance of 50.00 feet to a point; Thence running N 4° 55' 00" W a distance of 274.57 feet to a point;

Thence running along the southerly street line of Clinic Drive N 85° 05 00" E a distance of 50.00 feet to a point; Thence continuing along said Clinic Drive N 85° 05' 00" E a distance of 15.00 feet to the point and place of beginning.

THIRD PARCEL

A certain piece or parcel of land as shown on a map entitled "PROPERTY SURVEY PREPARED FOR INVESTMENT ASSOCIATES 300 KENSINGTON AVENUE NEW BRITAIN & BERLIN, CONNECTICUT SCALE 1" = 30' DATE 4-20-93 SHEET 2 OF 2" prepared by J.R. RUSSO & ASSOCIATES LAND SURVEYORS & PROFESSIONAL ENGINEERS 1 SHOHAM ROAD EAST WINDSOR, CONNECTICUT 06088 623-0569 which map is on file in the Berlin Land Records and in the New Britain Land Records.

&nbsp;&nbsp;&nbsp;&nbsp;78580509.10 ------

Commencing at a point which marks the intersection of the New Britain/Berlin Town Line with the northeasterly corner of the herein described property, the southeasterly corner of property N/F Albrite Associates Limited Partnership;

Thence running along land N/F City of New Britain Willow Brook Park S 00 0514" W a distance of 462.83 feet to an iron pin;

Thence running S 87° 36' 54" W a distance of 189.72 feet to &Connecticut Highway Department monument;

Thence running N 81° 05' 56" W a distance of 332.35 feet to a point; Thence running N 62° 5416" W a distance of 227.55 feet to a point; Thence running N 52° 58' 41" W a distance of 144.03 feet to a point;

Thence running S 84° 43' 24" W a distance of 45.59 feet to a point, the last five courses and distance being along land N/F State of Connecticut Rte 372 State Highway Line;

Thence running along land N/F CSTD Realty Partnership N 21° 04' 22" W a distance of 160.93 feet to an iron pin;

Thence running along the New Britain/Berlin Town Line and along land N/F Investment Associates, N/F Parthenon Realty Trust, N/F Garden Homes Investment Partnership and N/F Albrite Associates Limited Partnership, in part by each, N 84° 57' 14" E a distance of 943.09 feet to the point and place of beginning.

Together with an Agreement between the City of New Britain and W.I. Ailing dated December 22, 1916 and recorded in the New Britain Land Records in Volume 116, Page 210.

INFORMATIONAL ONLY: known as to 300 Kensington Avenue and 0 High Road, New Britain & Berlin, CT

**"AS SURVEYED" DESCRIPTION:**

FIRST PARCEL

Beginning at an iron pin in the easterly street line of Kensington Avenue which iron pin marks the intersection of the easterly street line of Kensington Avenue and the New Britain/Berlin Town Line; Thence running along the easterly street line of Kensington Avenue along a curve to the right having a radius of 1,392.70 feet, a delta angle of 13º06'03", an arc length of 318.44 feet, a chord bearing of N 28º17'28" E, and a chord distance of 317.75 feet to a point:

Thence running continuing along said Kensington Avenue along a curve to the right having a radius of 25.00 feet, delta angle of 50º10'51" and an arc length of a distance of 21.90 feet to a point;

Thence running along the southerly street line of Clinic Drive N 85° 01' 21" a distance of 678.25 feet to a point;

Thence running S 4° 58' 39" E a distance of 274.87 feet to a point;

Thence running S 85° 07' 21" W a distance of 134.56 feet to a point;

Thence continuing along land now or formerly of Early Childhood Education, LLC S 85° 01' 15" W a distance of 736.68 feet to the point and place of beginning.

SECOND PARCEL

Beginning at a point in the southerly street line of Clinic Drive which point marks the northeasterly corner of the herein described premises and the northwesterly corner of land now or formerly of Parthenon Condominium, Inc;

&nbsp;&nbsp;&nbsp;&nbsp;78580509.10 ------

Thence running the following two (2) courses and distances along land of said Condominium, along a curve to the left having a radius of 15.00 feet a distance of 23.56 feet to a point, and S 4° 58' 39" E a distance of 259.97 feet to a point;

Thence running along other land of Healthcare Portfolio III DST S 85° 07' 21" W a distance of 50.00 feet to a point;

Thence running along other land of Healthcare Portfolio III N 04º 58' 39" W 274.87 feet to a point in the southerly street line of said Clinic Drive:

Thence running along the southerly street line of said Clinic Drive N 85° 01' 21" E a distance of 65.00 feet to the point and place of beginning.

THIRD PARCEL

Beginning at a point which marks the intersection of the New Britain/Berlin Town Line with the northeasterly corner of the herein described property, the southeasterly corner of Land Now or formerly of Positive Place, LLC;

Thence running along land Now or formerly of The City of New Britain Willow Brook Park S 00º 08' 87" W a distance of 462.39 feet to an iron pin in the northerly highway line of Connecticut Route 571;

Thence running the following five (5) courses and distances along said highway line S 87° 36' 31" W a distance of 190.26 feet to a Connecticut Highway Department monument, N 81° 06' 20" W a distance of 332.35 feet to Connecticut Highway Department monument, N 62° 54' 46" W a distance of 227.55 feet to square pin, N 52° 59' 04" W a distance of 144.02 feet to Connecticut Highway Department monument, and S 84º43'00" W 46.01 feet to a point;

Thence running along land now or formerly of Early Childhood Education, LLC N 20° 57' 11" W a distance of 161.26 feet to a point:

Thence running along other land of Healthcare Portfolio III DST N 85º 07' 21" E 185.08 feet to a point;

Thence running along land Now or formerly of Parthenon Condominium, Inc, land now or formerly of One Hundred and Three Clinic Drive, LLC and land now or formerly of said Positive Place, LLC each in part, N 85° 07' 21" E a distance of 758.94 feet to the point and place of beginning.

For Informational Purposes: *Known as to 300 Kensington Avenue and 0 High Road, New Britain & Berlin, CT*

&nbsp;&nbsp;&nbsp;&nbsp;78580509.10 ------

Two certain pieces or parcels of land known as 1 Lake Street and 20 Lake Street in the Town of New Britain, County of Hartford and State of Connecticut, shown as PARCEL "A" and PARCEL "B", on a map entitled "AS-BUILT ONE LAKE STREET GROVE HILL & LAKE ST. NEW BRITAIN, CT SCALE: 1"=40' JANUARY 10, 1992 KRATZERT & JONES CIVIL ENGINEERS - LAND SURVEYORS - SITE PLANNERS MERIDEN-WATERBURY TURNPIKE MILLDALE, CONNECTICUT REV. 8/28/92 REV. 12/1/92 UPDATE 10/8/94 DRAWN BY: S.V.B. CHECKED BY: J.S." (the "Map"), which Map is on file with the New Britain Town Clerk, and which premises are more particularly bounded and described as follows:

FIRST PARCEL

PARCEL "A"

Commencing at a point marking the intersection of the northwesterly terminus of Lake Street and the northwesterly terminus of Grove Hill;

Thence running along the westerly street line of Grove Hill S 06° 03' 34" E a distance of 84.50 feet to a point; Thence running along land N/F Kate McDonough S 83° 56' 38" W a distance of 203.73 feet to a point; Thence running the following courses and distances along land N/F The Stanley Works: N 09° 14' 04"W a distance of 135.00 feet to a point; N 68° 55' 46" E a distance of 48.98 feet to a point; N 83° 20' 36" E a distance of 107.07 feet to a point; N 06° 39' 24" W a distance of 49.39 feet to a point; along a curve to the right having a radius of 5,702.05 feet, a distance of 490.47 feet to a point; along a curve to the right having a radius of 2,264.41 feet, a distance of 82.10 feet to a point; S 06° 07' 22" E a distance of 242.57 feet to a point;

Thence running along land N/F State of Connecticut S 56° 24' 28" W a distance of 28.72 feet to a point in the northerly street line of Lake Street;

Thence running along a curve to the left having a radius of 302.81 feet a distance of 107.45 feet to a point; Thence running S 83° 52' 32" W a distance of 370.90 feet to the point and place of beginning.

TOGETHER WITH an easement in common with The Stanley Works, it successors and assigns, over other land of The Stanley Works, twenty-five (25) feet in width between the westerly boundary of Parcel "A" and Curtis Street and shown on the Map as "25' EASEMENT" and also as "CURTIS STREET EASEMENT PEDESTRIAN AND VEHICULAR INGRESS AND EGRESS IN FAVOR OF THE STANLEY WORKS AND H.G. PARTNERS-NEW BRITAIN LIMITED PARTNERSHIP AND ASSIGNS VOL. 807, PAGE 1162" (the "Curtis Street Easement"). Said Curtis Street Easement shall include the right to enter onto The Stanley Works property to a width of not more than 5 feet on either side of the Curtis Street Easement said right to be exercised only to the extent necessary to perform necessary maintenance and repairs to the Curtis Street Easement and for temporary periods as reasonably necessary to perform such repairs.

TOGETHER with rights contained in an Agreement by and between Investment Associates and CW Group, Inc. dated as of December 8, 1992 and recorded in Volume 1140, Page 54 of the New Britain Land Records.

For Informational Purposes: *Known as 1 LAKE STREET, NEW BRITAIN, CT*

ID: 55000001

SECOND PARCEL

PARCEL "B"

Commencing at a point in the easterly street line of Grove Hill, which point marks the southwest corner of the herein described premises and a northwest corner of land N/F State of Connecticut;

Thence running N 06° 03' 34" W a distance of 223.99 feet to a point;

Thence along a curve to the right having a radius of 20.00 feet a distance of 31.32 feet to a point;

Thence running along the southerly street line of Lake Street N 83° 39' 58" E a distance of 290.07 feet to a point; Thence running the following courses and distances along land N/P State of Connecticut:

S 41°54' 38" E a distance of 55.59 feet to a point;

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along a curve to the right having a radius of 35.00 feet, a distance of 19.89 feet to a point;

S 43° 06' 56" W a distance of 61.30 feet to a point;

S 45° 13' 08" W a distance of 79.27 feet to a point;

S 83° 28 22" W a distance of 104.27 feet to a point;

S 45° 55' 20" W a distance of 151.52 feet to the point and place of beginning.

For Informational Purposes: *Known as 20 LAKE STREET, NEW BRITAIN, CT*

ID: 55000020

The insured premises are also described as follows: 

# 1 Lake Street

Beginning at a point, said point being the south easterly property corner of the parcel herein described and the south westerly property corner of land now or formerly of CW Group INC.;

Thence running S 56°25'01" W 28.72 feet along CT Route 72, to a point;

Thence running along a counter clockwise curve with a radius of 302.81 and a length of 107.54 feet, to a point; thence turning and running S 83°53'35" W 370.90 feet, to a point, thence turning and running S 06°02'47" E 84.50 feet along, each in part, Lake Street and Grove Hill, to a point;

Thence running S 83°57'41" W 203.73 feet along land now or formerly of Investment Associates LLC, to a point;

Thence running N 09°13'01" W 135.00 feet, to a point, thence turning and running N 68°56'49" E 48.98 feet, to a point, thence turning and running N 83°21'39" E 107.07 feet, to a point, thence turning and running N 06°38'21" W 49.39 feet all along land now or formerly of Stanley Black and Decker Inc., to a point;

Thence running along a clockwise curve having a radius of 5702.05 feet and a length of 489.34 feet, along land now or formerly of Boston And Maine Corp. to a point;

Thence running S 06°06'19" E 242.57 feet along land now or formerly of CW Group LLC, to the point of beginning.

#20 Lake Street:

Beginning at a point, said point being the intersection of the easterly streetline of Grove Hill and the northerly highway line of CT Route 72;

Thence running N 06°02'47" W 224.78 feet, to a point, thence turning and running along a clockwise curve having a radius of 20.00 feet and a length of 31.32 feet, to a point, thence turning and running N 83°40'45" E 290.07 feet, to a point, thence turning and running S 42°04'45"E 54.50 feet, to a point, thence turning and running along a clockwise curve having a radius of 33.00 feet and a length of 18.87 feet, to a point, thence turning and running S 45°51'15"W 130.81 feet, to a point, thence turning and running S 45°43'55"W 11.79 feet, to a point, thence turning and running S 83°15'43" W 103.42 feet, to a point, thence turning and running S 45°56'07"W 151.73 feet, all along, each in part, Grove Hill Street, Lake Street and CT Route 72, to the point of beginning.

THIRD PARCEL:

A certain piece or parcel of land, known as Grove Hill; in the City of New Britain, County of Hartford and State of Connecticut, and more particularly described as follows:

Beginning at an iron pin in the Westerly line of Grove Hill, at the Northeast corner of land of John J. Feeney, or assigns, thence running Westerly along the North line of land of said John J. Feeney, 225 feet, more or less, to an iron pin at the Southeast corner of land of The Stanley Works, thence running Northerly along

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the East line of land of The Stanley Works, 60 feet, to an iron pin in the South line of other land of The Stanley Works, thence running Easterly along the South line of said land of The Stanley Works, 225 feet, more or less, to an iron pin in the West lien of Grove Hill, thence running Southerly along the West line of Grove Hill, 60 feet to the place of beginning.

For Informational Purposes: *Known as to 88 Grove Hill, New Britain, CT*

**"AS SURVEYED" DESCRIPTION:**

1 Lake Street

Beginning at a point marking the intersection of the northwesterly terminus of Lake Street and the North westerly terminus of Grove Hill.

Thence running along the westerly street line of Grove Hill S 06° 04' 45" E a distance of 84.50 feet to a point;

Thence running along other land of Healthcare Portfolio III DST S 83° 56' 38'' W a distance of 203.76 feet to a point;

Thence running the following four (4) courses and distances along land now or formerly of Stanley Black & Decker Inc., N 09° 14' 04"W a distance of 135.00 feet to a point, N 68° 55' 46" E a distance of 48.98 feet to a point, N 83° 20' 36" E a distance of 107.07 feet to a point, and N 06° 39' 24" W a distance of 49.39 feet to a point;

Thence running the following two (2) courses and distances along Pan Am Southern, LLC along a curve to the right having a radius of 5,702.05 feet, a delta angle of 4º55'42", an arc length of 490.47 feet, a chord bearing of N70º55'18"E, and a chord distance of 490.32 feet to a point, and along a tangent curve to the right having a radius of having a radius of 2,264.41 feet, a delta angle of 2º04'38" and an arc length of 82.10 feet to a point;

Thence running along land now or formerly of C W Group, Inc S 06° 07' 22" E a distance of 242.56 feet to a point;

Thence running along land of the State of Connecticut, along the highway line of Connecticut Route 72, S 56° 23' 56" W a distance of 28.72 feet to a point in the northerly street line of Lake Street;

Thence running along the northerly street line of Lake Street, a curve to the left having a radius of 302.81 feet, a delta angle of 20º19'52", a chord bearing of N85º57'32"W, a chord distance of 106.89 feet and an arc length of 107.45 feet to a point, and S 83° 52' 32" W a distance of 370.90 feet to the point and place of beginning.

20 Lake Street

Beginning at a point at the intersection of the easterly street line of Grove Hill and the northerly highway line of Connecticut Route 72;

Thence running the following two (2) courses and distances along said easterly street line of Grove Hill N 06°04'45" W 223.97 feet to a point, and along a tangent curve to the right having a radius of 20.00 feet, a delta angle of 89º43'31" and an arc length of 31.32 feet to a point;

Thence running along the northerly street line of Lake Street N 83°38'30" E 290.25 feet, to a point;

Thence running the following five (5) courses and distances along the highway line of Connecticut Route 72, S 41°55'55"E 54.50 feet to a CHD, along a curve to the left having a radius of 33.00 feet, a delta angle of 32º44'56", an arc length of 18.60, a chord bearing of S 25º44'05" W, and a chord distance of 18.60 feet to a CHD, along a curve to the left having a radius of 1,988.04 feet, a delta angle of 3º46'15", an arc length of 130.84 feet, a chord bearing of S 44º00'11" W, a chord distance of 130.82 feet to a point, S 83º24'32" W 103.42 feet to a CHD, and S 45º53'11" W 151.37 feet to the point or place of beginning.

88 Grove Hill

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Beginning at a point in the westerly street line of Grove hill at the intersection of land now or formerly of Seventy Grove Hill Condominium, said point being the southeast corner of the herein described parcel;

Thence running along land now or formerly of said Seventy Grove Hill Condominium S83º56'38" W 225.00 feet to a point;

Thence Running along land now or formerly of Stanley Black & Decker, Inc., N 06º04' 45" W 60.00 feet to a point;

Thence running along said Stanley Black & Decker, Inc., and other land of Healthcare Portfolio III DST each in part N 83º56'38" E 225.00 feet to the point or place of beginning.

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TRACT 1:

All of Unrestricted Reserve "A", Block 1, of STUDEMONT JUNCTION NORTH, a subdivision in Harris County, Texas, according to the map or plat thereof recorded in Film Code No. 679605, Map Records of Harris County, Texas.

TRACT 2:

Non-exclusive easement, created and granted by Declaration of Reciprocal Shared Access Easement, recorded on January 6, 2016 under Clerk's file No. RP-2016-5313, Official Public Records of Harris County, Texas, being more particularly described as follows:

Being a 36 feet wide Access Easement containing 0.0617 acre (2,687 square feet) of land situated in the John Austin Survey, Abstract No. 1, Harris County, Texas, being out of and a portion of a called 11.1961 acre tract of land conveyed to Studemont Venture, L.P. as recorded under Harris County Clerk's File Number (No.) 20130629232, said 0.0617 acre easement being more particularly described as follows (bearings herein are oriented to the Texas State Plane Coordinate System, South Central Zone, NAD 83):

COMMENCING for reference at a found 5/8-inch iron rod marking the intersection of the east Right-of-Way (R.O.W.) line of said Studemont Street (Called 100 feet wide) as recorded in Vol. 3518, Pg. 389 of the Harris County Deed Records with the North R.O.W. line of Summer Street (called 60 feet wide) as recorded in Vol. 3357, Pg. 426 of the Harris County Deed Records and marking the southwest corner of Restricted Reserve "A" of Verde Studemont Replat No 1 and Extension a subdivision plat of record at Film Code No. 643065 of the Harris County Map Records, from which a found SWB monument bears South 66°14' East, 1.27 feet;

THENCE, North 18°52'01" West, departing said intersection, over and across said Studemont Street, a distance of 331.28 feet to a point in the curved west R.O.W. line of said Studemont Street, same being the POINT OF BEGINNING and southeast corner of the herein described easement;

THENCE, departing said west R.O.W. Line, over and across said called 11.1961 acre tract the following three (3) courses;

South 88°19'34" West, a distance of 72.91 feet to a point for the southwest corner of the herein described easement;

North 01°40'26" West, a distance of 36.00 feet to a point for the northwest corner of the herein described easement;

North 88°19'34" East, a distance of 76.56 feet to a point in the aforesaid curved west R.O.W. line, same being the northeast corner of the herein described easement and being in a curve to the left;

THENCE, Southerly, an arc distance of 36.19 feet along said curve to the left, having a radius of 1,195.92 feet, a central angle of 01°44'01" and a chord which bears South 04°07'27" West, 36.19 feet to the POINT OF BEGINNING and containing 0.0617 acres (2,687 Sq. Ft.) of land.

TRACT 3:

Non-exclusive easements for access and signage, created and granted by Declaration of Reciprocal Easements, Rights, Covenants and Restrictions, recorded on February 27, 2017 under Clerk's file No. RP-2017-80837, Official Public Records of Harris County, Texas.

For Informational Purposes: *Commonly known as: 1431 Studemont Street, Houston, TX*

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**For Tax Map ID(s): 132184200**

TRACT 1:

A tract of land in the Northwest Quarter (NW/4) of Section Twenty-seven (27), Township Eleven (11) North, Range Three (3) West of the Indian Meridian and Part of SHARTEL SOUTH ADDITION, an Addition to the City of Oklahoma City, Oklahoma County, Oklahoma, according to the recorded plat thereof, more particularly described as follows: Beginning at a point in the intersection center line of Cleo Avenue on said plat, 10 feet West of the West line of Shields Boulevard running North 00°39'40" East (North Record) and parallel with the West line of Shields Boulevard a distance of 135.00 feet; thence North 89°41'09" West (West Record) a distance of 150.00 feet; thence North 00°39'40" East (North Record) a distance of 200.00 feet; thence North 89°41'09" West (West Record) along the South line of South 56th Street a distance of 420.00 feet to a point in the center line of Oklahoma Avenue; thence South 00°39'40" West (South Record) down center of Oklahoma Avenue a distance of 335.00 feet; thence South 89°41'09" East (due East Record) along the center line of Cleo Avenue a distance of 570.00 feet to the point of beginning.

LESS AND EXCEPT:

A tract of land in the Northwest Quarter (NW/4) of Section Twenty-seven (27), Township Eleven (11) North, Range Three (3) West of the Indian Meridian, and Part of SHARTEL SOUTH ADDITION, an Addition to the City of Oklahoma City, Oklahoma County, Oklahoma, according to the recorded plat thereof, more particularly described as follows: Beginning at a point in the intersection center line of Cleo Avenue on said plat, 10 feet West of the West line of Shields Boulevard running North 00°39'40" East (North Record) and parallel with the West line of Shields Boulevard a distance of 135 .00 feet; thence North 89°41'09" West (West Record) a distance of 150.00 feet; thence South 00°39'40" West (South Record) a distance of 135.00 feet; thence South 89°41'09" East (East Record) a distance of 150.00 feet to the point of beginning.

TRACT 2:

TOGETHER WITH EASEMENT RIGHTS as set out in Easement Agreement by and between Surgical Hospital of South Oklahoma City, L. L. C., and Steve M. Howard and Delbert E. Warren, dated December 21, 1995 and recorded December 29, 1995 in Book 6835, Page 502, over and across the following described property: A tract of land in the Northwest Quarter (NW/4) of Section Twenty-seven (27), Township Eleven (11) North, Range Three (3) West of the Indian Meridian, and Part of SHARTEL SOUTH ADDITION, an Addition to the City of Oklahoma City, Oklahoma County, according to the recorded plat thereof, more particularly described as follows: Beginning at a point in the intersection center line of Cleo Avenue on said plat, 10 feet West of the West line of Shields Boulevard running North 00°39'40" East (North Record) and Parallel with the West line of Shields Boulevard a distance of 135 feet; thence North 89°41'09" West (West Record) 150 feet; thence South 00°39'40" West (South Record) 135 feet; thence South 8°41'09" East (East Record) 150 feet to the point of beginning.

For Informational Purposes: *Commonly known as: 100 S.E. 59*<sup>th</sup> *Street, Oklahoma City, OK*

*Tax Parcel: 132184200*

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Lot 47, New City Block 14862, Network.com Replat, in the City of San Antonio, Bexar County, Texas, according to plat recorded in Volume 9576, Page 212, Deed and Plat Records, Bexar County, Texas.

TOGETHER WITH RIGHTS set out in that Roadway Construction and Maintenance Agreement recorded in Volume 11198, Page 2274, Official Public Records of Real Property of Bexar County, Texas, and that Assignment and Assumption of Agreement recorded in Volume 13092, Page 2261, Real Property Records, Bexar County, Texas,

TOGETHER WITH RIGHTS set out in that Declaration of Drainage Easements, Covenants and Conditions recorded in Volume 11198, Page 2290, Official Public Records of Real Property of Bexar County, Texas, and Assignment and Assumption of Easement recorded in Volume 13092, Page 2261, Real Property Records, Bexar County, Texas.

For Informational Purposes: *Commonly known as: 5255 Prue Road, San Antonio, TX*

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THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE COUNTY OF MARICOPA, STATE OF ARIZONA, AND IS DESCRIBED AS FOLLOWS:

PARCEL NO. 1:

Lot 2, of SUNTECH CENTER, according to the plat of record in the office of the County Recorder of Maricopa County, Arizona, recorded in Book 334 of Maps, Page 3; Certificate of Corrections recorded September 11, 1989 in 89-421110 of Official Records; recorded October 3, 1989 in 89-460512, of Official Records and recorded November 22, 1989 in 89- 540157, of Official Records.

PARCEL NO. 2:

Easements for parking, ingress and egress set forth in Development Agreement with Easements, Conditions and Restrictions recorded in 91-141119, of Official Records, and First Amendment to Development Agreement with Easements, conditions and Restrictions recorded in 92-0738047, of Official Records and Second Amendment to Development Agreement with Easements, Conditions and Restrictions recorded in 96-0887158, of Official Records.

PARCEL NO. 3: Easement for ingress and egress set forth in Reciprocal Easement Agreement recorded in 92-0019761, of Official Records.

For Informational Purposes: *Commonly known as: 700 West Warner Rd., Chandler, AZ*

*Tax Parcel: 302-27-926*

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THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE COUNTY OF MARICOPA, STATE OF ARIZONA, AND IS DESCRIBED AS FOLLOWS:

Tract 1:

Units 117 through 120, Building 5, of MERCY POINT MEDICAL CENTER, a Condominium, according to Amended and Restated Condominium Declaration for Mercy Point Medical Center, a Condominium, recorded in Document No. 2007-1019271, re-recorded in Document No. 2009-756471, and First Amendment to Amended and Restated Condominium Declaration for Mercy Point Medical Center, a Condominium recorded in Document No. 2007-1019272, and per map recorded in Book 932 of Maps, Page 34, in the office of the County Recorder of Maricopa County, Arizona;

TOGETHER WITH a proportionate interest in and to the Common Elements, as set forth in said Condominium Declaration and as shown on said plat.

Tract 2:

Easement rights created under that certain Roadway & Access Easement recorded in Document No. 2009-129241, in the office of the County Recorder of Maricopa County, Arizona.

For Informational Purposes: *Commonly known as: 3855 South Val Vista Dr., Gilbert, AZ*

*Tax Parcel: 304-53-323; 304-53-324; 304-53-325; 304-53-326*

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THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE COUNTY OF MARICOPA, STATE OF ARIZONA, AND IS DESCRIBED AS FOLLOWS:

PARCEL 1:

Parcel 2, of FINAL PLAT OF IRONWOOD CANCER AND RESEARCH CENTERS, according to the plat of record in Book 1167 of Maps, page 4, records of Maricopa County, Arizona.

PARCEL 2:

Easements appurtenant to Parcel 1 as set forth in Declaration of Establishment of Covenants, Conditions and Restrictions and Grant of Reciprocal Easements recorded February 26, 2009 in Recording No. 2009-0169276.

PARCEL 3:

A non-exclusive easement restricting the No Build Area as set forth in No Build Restrictive Easement recorded February 18, 2014 in Recording No. 2014-0102321, records of Maricopa County, Arizona.

For Informational Purposes: *Commonly known as: 3686 South Rome St., Gilbert, AZ*

*Tax Parcel: 304-53-551*

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THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE COUNTY OF MARICOPA, STATE OF ARIZONA, AND IS DESCRIBED AS FOLLOWS:

PARCEL NO. 1:

Lot 1, of LAKE PLEASANT MEDICAL CENTER AND DENARO CORPORATE CENTER, according to Book 1085 of Maps, page 28, records of Maricopa County, Arizona.

PARCEL NO. 2:

An Easement for ingress and egress as granted in Cross Access, Parking and Easement Agreement, recorded February 13, 2018, in Recording No. 2018-0110869, records of Maricopa County, Arizona.

For Informational Purposes: *Commonly known as: 10230 W. Happy Valley Pkwy., Peoria, AZ*

*Tax Parcel: 201-17-554*

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THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE COUNTY OF MARICOPA, STATE OF ARIZONA, AND IS DESCRIBED AS FOLLOWS:

PARCEL NO. 1:

A PORTION OF TRACT 1, BLOCK 5 OF STATE PLAT NO. 44 DESERT RIDGE WEST AS SHOWN ON TRACT MAP RECORDED IN BOOK 454 OF MAPS, PAGE 25, MARICOPA COUNTY RECORDS, LYING WITHIN THE SOUTH HALF OF SECTION 19, TOWNSHIP 4 NORTH, RANGE 4 EAST OF THE GILA AND SALT RIVER MERIDIAN, MARICOPA COUNTY, ARIZONA, MORE PARTICULARLY DESCRIBED AS FOLLOWS:

COMMENCING AT A FOUND REBAR WITH A 2 INCH ALUMINUM CAP STAMPED PUMMER LS 33321 AT THE NORTHWEST CORNER OF SAID TRACT 1, FROM WHICH A FOUND REBAR WITH A 2 INCH ALUMINUM CAP STAMPED PUMMER 33321 AT THE SOUTHWEST CORNER OF SAID TRACT 1 BEARS SOUTH 00 DEGREES 17 MINUTES 00 SECONDS EAST (BASIS OF BEARING), A DISTANCE OF 599.58 FEET;

THENCE SOUTH 84 DEGREES 10 MINUTES 00 SECONDS EAST, ALONG THE NORTHERLY LINE OF SAID TRACT 1, A DISTANCE OF 319.10 FEET;

THENCE DEPARTING PERPENDICULAR TO SAID NORTHERLY LINE, SOUTH 05 DEGREES 50 MINUTES 00 SECONDS WEST, A DISTANCE OF 40.24 FEET TO THE POINT OF BEGINNING;

THENCE SOUTH 84 DEGREES 10 MINUTES 00 SECONDS EAST, A DISTANCE OF 956.94 FEET TO THE BEGINNING OF A NON-TANGENT CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS POINT THAT BEARS NORTH 41 DEGREES 14 MINUTES 17 SECONDS WEST, A DISTANCE OF 937.48 FEET;

THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 01 DEGREE 12 MINUTES 20 SECONDS, AN ARC LENGTH OF 19.73 FEET TO THE BEGINNING OF A COMPOUND CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 1360.23 FEET;

THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 05 DEGREES 37 MINUTES 46 SECONDS, AN ARC LENGTH OF 133.65 FEET TO A NON-TANGENT CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS POINT THAT BEARS NORTH 35 DEGREES 49 MINUTES 24 SECONDS WEST, A DISTANCE OF 7082.04 FEET;

THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 01 DEGREE 59 MINUTES 34 SECONDS, AN ARC LENGTH OF 246.30 FEET;

THENCE SOUTH 56 DEGREES 10 MINUTES 10 SECONDS WEST, A DISTANCE OF 345.41 FEET TO THE SOUTH LINE OF SAID TRACT 1;

THENCE SOUTH 89 DEGREES 42 MINUTES 56 SECONDS WEST ALONG SAID SOUTH LINE, A DISTANCE OF 452.40 FEET;

THENCE DEPARTING SAID SOUTH LINE, NORTH 56 DEGREES 10 MINUTES 10 SECONDS EAST, A DISTANCE OF 136.15 FEET;

THENCE NORTH 00 DEGREES 17 MINUTES 00 SECONDS WEST, A DISTANCE OF 450.32 FEET TO THE POINT OF BEGINNING.

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PARCEL NO. 2:

THE BENEFICIAL EASEMENTS, AS SET FORTH IN THE DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR DESERT RIDGE COMMERCIAL CORE, RECORDED IN DOCUMENT NO. 2000-0555236, RECORDS OF MARICOPA COUNTY, ARIZONA.

PARCEL NO. 3:

THE BENEFICIAL EASEMENTS, AS SET FORTH IN THE DECLARATION OF EASEMENTS, COVENANTS, CONDITIONS AND RESTRICTIONS, RECORDED IN DOCUMENT NO. 20080075379, FIRST AMENDMENT TO DECLARATION OF EASEMENTS, COVENANTS, CONDITIONS AND RESTRICTION RECORDED IN DOCUMENT NO. 2011-1072896, SECOND AMENDMENT TO DECLARATION OF EASEMENTS, COVENANTS, CONDITIONS AND RESTRICTIONS RECORDED IN DOCUMENT NO. 20140248442, AND THIRD AMENDMENT TO DECLARATION OF EASEMENTS, COVENANTS, CONDITIONS AND RESTRICTIONS RECORDED IN DOCUMENT NO. 20180432605, RECORDS OF MARICOPA COUNTY, ARIZONA.

For Informational Purposes: *Commonly known as: 4375 E. Irma Ln., Phoenix, AZ*

*Tax Parcel: 212-38-001Z*

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Lying and being situate in Wake County, NC, and being more particularly described as follows:

All that certain real property located on the southern side of Carl Sandburg Court in the City of Raleigh, Wake County, North Carolina, said real property being more particularly described as all of Lot 1, containing approximately 2.84 acres, as shown and described on a plat entitled "Property of Parkway Urology, PA - Recombination Plat" prepared by John A. Edwards & Company and recorded in Book of Maps 2012, page 285, in the Office of the Register of Deeds of Way County North Carolina, and being part of the lands conveyed to Parkway Urology, P.A. by deeds recorded in Book 14694, at pages 2535 and 2543, in the Office of the Register of Deeds of Wake County, North Carolina.

**<u>ALSO DESCRIBED AS:</u>** 

BEGINNING AT AN EXISTING IRON PIPE ON THE EASTERN RIGHT OF WAY OF SUNNYBROOK ROAD, SAID POINT BEING THE SOUTHWEST CORNER OF LOT 1 AS SHOWN IN BOOK OF MAPS 2012, PAGE 285; THENCE FORM SAID POINT OF BEGINNING ALONG SAID RIGHT OF WAY FOR 2 CALLS, NORTH 00° 57' 17" WEST FOR A DISTANCE OF 185.23 FEET TO A POINT; THENCE NORTH 44° 07' 41" EAST; FOR A DISTANCE OF 35.40 FEET TO AN EXISTING IRON PIPE ON THE SOUTHERN RIGHT OF WAY OF CARL SANDBURG COURT; THENCE ALONG SAID RIGHT OF WAY FOR 3 CALLS, NORTH 88° 56' 41" EAST FOR A DISTANCE OF 379.88 FEET TO AN EXISTING IRON PIPE; THENCE NORTH 88° 59' 16" EAST FOR A DISTANCE OF 66.36 FEET TO AN EX MAGNETIC NAIL, SAID POINT BEING THE BEGINNING OF A CURVE TO THE RIGHT, HAVING A RADIUS OF 1684.51 FEET, A CHORD OF 21.54 FEET, BEARING NORTH 89° 21' 15" EAST; THENCE ALONG THE ARC OF SAID CURVE A LENGTH OF 21.54 FEET TO A POINT; THENCE LEAVING SAID RIGHT OF WAY, SOUTH 01° 00' 55" EAST FOR A DISTANCE OF 211.21 FEET TO AN EXISTING IRON PIPE; THENCE SOUTH 53° 39' 12" EAST FOR A DISTANCE OF 71.47 FEET TO AN EXISTING IRON PIPE; THENCE SOUTH 01° 00' 55" EAST FOR A DISTANCE OF 151.71 FEET TO AN EXISTING IRON PIPE; THENCE NORTH 60° 23" 56" WEST FOR A DISTANCE OF 66.20 FEET TO AN EXISTING IRON PIPE; THENCE NORTH 54° 27' 11" WEST FOR A DISTANCE OF 43.02 FEET TO AN EXISTING IRON PIPE; THENCE NORTH 65° 05' 13" WEST FOR A DISTANCE OF 44.16 FEET TO AN EXISTING IRON PIPE; THENCE NORTH 31° 56' 54" WEST FOR A DISTANCE OF 19.29 FEET TO AN EXISTING IRON PIPE; THENCE NORTH 24° 55' 46" WEST FOR A DISTANCE OF 9.54 FEET TO AN EXISTING IRON PIPE; THENCE NORTH 00° 57' 17" WEST FOR A DISTANCE OF 92.60 FEET TO AN EXISTING IRON PIPE; THENCE SOUTH 88° 54' 22" WEST FOR A DISTANCE OF 404.95 FEET TO AN EXISTING IRON PIPE; SAID IRON PIPE BEING THE POINT OF BEGINNING AND CONTAINING 2.8431 AC OR 123,847 S.F.

For Informational Purposes: *Commonly known as: 117 Sunnybrook Road, Raleigh, NC*

*Tax Parcel: 0000410317-2020-2020-000000*

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A 1.731 acre, or 75,395 square feet more or less, tract of land being the remainder of Lot 6, Block 2, New City Block 14702, OAKLAND ESTATES, in the City of San Antonio, Bexar County, Texas, according to plat recorded in Volume 980, Pages 281A-281B, Deed and Plat Records, Bexar County, Texas, and being that tract described in deed to 9157 Huebner, Ltd. recorded in Volume 7117, Page 696 of the Official Public Records of Bexar County, Texas, out of the J. Alemeda Survey No. 81, Abstract 26, in the City of San Antonio, Bexar County, Texas.

For Informational Purposes: *Commonly known as: 9157 Huebner Road, San Antonio, TX*

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Lot 47, New City Block 14862, Network.com Replat, in the City of San Antonio, Bexar County, Texas, according to plat recorded in Volume 9576, Page 212, Deed and Plat Records, Bexar County, Texas.

TOGETHER WITH RIGHTS set out in that Roadway Construction and Maintenance Agreement recorded in Volume 11198, Page 2274, Official Public Records of Real Property of Bexar County, Texas, and that Assignment and Assumption of Agreement recorded in Volume 13092, Page 2261, Real Property Records, Bexar County, Texas,

TOGETHER WITH RIGHTS set out in that Declaration of Drainage Easements, Covenants and Conditions recorded in Volume 11198, Page 2290, Official Public Records of Real Property of Bexar County, Texas, and Assignment and Assumption of Easement recorded in Volume 13092, Page 2261, Real Property Records, Bexar County, Texas.

For Informational Purposes: *Commonly known as: 5255 Prue Road, San Antonio, TX*

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TRACT 1:

A TRACT OR PARCEL CONTAINING 3.095 ACRES OR 134,819 SQUARE FEET OF LAND BEING OUT OF UNRESTRICTED RESERVE "A", BLOCK 1, MAIN STREET KINGWOOD RECORDED UNDER FILM CODE NO. 671134 HARRIS COUNTY MAP RECORDS (H.C.M.R.), AND A CALLED 33.7103 ACRE TRACT OF LAND CONVEYED TO MAIN STREET KINGWOOD, LTD. RECORDED UNDER HARRIS COUNTY CLERK'S FILE (H.C.C.F.) NO. 20140512169, SITUATED IN THE J.W. ASBURY SURVEY, ABSTRACT NO. 91, HARRIS COUNTY, TEXAS, WITH SAID 3.095 ACRE TRACT BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS, WITH ALL BEARINGS BASED ON THE TEXAS STATE PLANE COORDINATE SYSTEM, SOUTH CENTRAL ZONE (NAD 83):

BEGINNING AT CAPPED <sup>3</sup>/4-INCH IRON ROD FOUND ON THE SOUTH LINE OF A CALLED 6.527 ACRE TRACT OF LAND CONVEYED TO HARRIS COUNTY FLOOD CONTROL DISTRICT RECORDED UNDER H.C.C.F NO. H361520, AND MARKING THE NORTHWEST CORNER OF UNRESTRICTED RESERVE "A", BLOCK 1, KINGS CROSSING SECTION NINE, REPLAT NO. 1 RECORDED UNDER F.C. NO. 674217 H.C.M.R., THE NORTHEAST CORNER OF SAID UNRESTRICTED RESERVE "A" OF MAIN STREET KINGWOOD, AND THE HEREIN DESCRIBED TRACT;

THENCE, SOUTH 09 DEG. 31 MIN. 45 SEC. WEST, ALONG THE WEST LINE OF SAID UNRESTRICTED RESERVE "A" OF KINGS CROSSING, AND THE EAST LINE OF SAID UNRESTRICTED RESERVE "A" OF MAIN STREET KINGWOOD, A DISTANCE OF 179.71 FEET TO A CAPPED <sup>3</sup>/4- INCH IRON ROD FOUND AT THE BEGINNING OF A TANGENT CURVE TO THE LEFT;

THENCE, WITH SAID TANGENT CURVE TO THE LEFT, CONTINUING ALONG THE WEST LINE OF SAID UNRESTRICTED RESERVE "A" OF KINGS CROSSING, AND THE EAST LINE OF SAID UNRESTRICTED RESERVE "A" OF MAIN STREET KINGWOOD, HAVING A RADIUS OF 1,630.00 FEET, A CENTRAL ANGLE OF 07 DEG. 22 MIN. 49 SEC., AN ARC LENGTH OF 209.96 FEET, AND A CHORD BEARING AND DISTANCE OF SOUTH 05 DEG. 50 MIN. 20 SEC. WEST - 209.82 FEET TO A CAPPED 5/8" IRON ROD STAMPED "WINDROSE LAND SERVICES" SET MARKING THE SOUTHEAST CORNER OF THE HEREIN DESCRIBED TRACT;

THENCE, OVER AND ACROSS SAID UNRESTRICTED RESERVE "A" OF MAIN STREET KINGWOOD, THE FOLLOWING COURSES AND DISTANCES:

NORTH 89 DEG. 20 MIN. 48 SEC. WEST A DISTANCE OF 55.61 FEET TO A CAPPED 5/8" IRON ROD STAMPED "WINDROSE LAND SERVICES" SET FOR AN INTERIOR CORNER OF THE HEREIN DESCRIBED TRACT;

SOUTH 01 DEG. 22 MIN. 28 SEC. WEST A DISTANCE OF 4.65 FEET TO A CAPPED 5/8" IRON ROD STAMPED "WINDROSE LAND SERVICES" SET FOR A SOUTHEAST CORNER OF THE HEREIN DESCRIBED TRACT;

SOUTH 89 DEG. 59 MIN. 38 SEC. WEST A DISTANCE OF 240.08 FEET TO A CAPPED 5/8" IRON ROD STAMPED "WINDROSE LAND SERVICES" SET FOR AN INTERIOR CORNER OF THE HEREIN DESCRIBED TRACT;

SOUTH, A DISTANCE OF 19.00 FEET TO A CAPPED 5/8" IRON ROD STAMPED "WINDROSE LAND SERVICES" SET FOR A SOUTHEAST CORNER OF THE HEREIN DESCRIBED TRACT;

WEST, A DISTANCE OF 53.07 FEET TO A CAPPED 5/8" IRON ROD STAMPED "WINDROSE LAND SERVICES" SET MARKING THE SOUTHWEST CORNER OF THE HEREIN DESCRIBED TRACT AND THE BEGINNING OF A CURVE TO THE RIGHT;

WITH SAID CURVE TO THE RIGHT, HAVING A RADIUS OF 600.54 FEET, A CENTRAL ANGLE OF 07 DEG. 26 MIN. 09 SEC., AN ARC LENGTH OF 77.94 FEET, AND A CHORD BEARING AND DISTANCE OF NORTH 15 DEG. 22 MIN. 54 SEC. EAST - 77.88 FEET TO A CAPPED 5/8" IRON ROD STAMPED "WINDROSE LAND SERVICES" SET AT THE BEGINNING OF A REVERSE CURVE TO THE LEFT; WITH

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SAID REVERSE CURVE TO THE LEFT, HAVING A RADIUS OF 222.08 FEET, A CENTRAL ANGLE OF 18 DEG. 00 MIN. 36 SEC., AN ARC LENGTH OF 69.81 FEET, AND A CHORD BEARING AND DISTANCE OF NORTH 11 DEG. 35 MIN. 52 SEC. EAST - 69.52 FEET TO A CAPPED 5/8" IRON ROD STAMPED "WINDROSE LAND SERVICES" SET AT THE BEGINNING OF A REVERSE CURVE TO THE RIGHT;

WITH SAID REVERSE CURVE TO THE RIGHT, HAVING A RADIUS OF 4,678.60 FEET, A CENTRAL ANGLE OF 03 DEG. 08 MIN. 52 SEC., AN ARC LENGTH OF 257.05 FEET, AND A CHORD BEARING AND DISTANCE OF NORTH 00 DEG. 05 MIN. 14 SEC. EAST - 257.02 FEET TO A CAPPED 5/8" IRON ROD STAMPED "WINDROSE LAND SERVICES" SET ON THE SOUTH LINE OF SAID 6.527 ACRE TRACT, AND THE NORTH LINE OF SAID UNRESTRICTED RESERVE "A" OF MAIN STREET KINGWOOD, AND MARKING THE NORTHWEST CORNER OF THE HEREIN DESCRIBED TRACT;

THENCE, NORTH 83 DEG. 36 MIN. 38 SEC. EAST, ALONG THE COMMON LINE OF SAID 6.527 ACRE TRACT AND RESTRICTED RESERVE "A" OF MAIN STREET KINGWOOD, A DISTANCE OF 108.74 FEET TO A CAPPED <sup>3</sup>/4-INCH IRON ROD FOUND AT THE BEGINNING OF A TANGENT CURVE TO THE RIGHT;

THENCE, WITH SAID TANGENT CURVE TO THE RIGHT, CONTINUING ALONG SAID COMMON LINE, HAVING A RADIUS OF 1,035.00 FEET, A CENTRAL ANGLE OF 14 DEG. 15 MIN. 28 SEC., AN ARC LENGTH OF 257.55 FEET, AND A CHORD BEARING AND DISTANCE OF SOUTH 89 DEG. 15 MIN. 39 SEC. EAST - 256.89 FEET TO THE PLACE OF BEGINNING AND CONTAINING 3.095 ACRES OR 134,819 SQUARE FEET OF LAND.

TRACT 2:

Easement and signage rights, created and granted by instrument entitled Declaration of Restrictive Covenants and Reservation of Easement, recorded on October 26, 2018 in Clerk's File No. RP-2018-489889, Official Public Records of Harris County, Texas.

For Informational Purposes: *Commonly known as: 4533 Kingwood Drive, Kingwood, TX*

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ALL that certain plot, piece or parcel of land, situate, lying and being in the Incorporated Village of Garden City, Town of Hempstead, County of Nassau and State of New York, bounded and described as follows:

BEGINNING at a point on the southerly side of Seventh Street, distant 150 feet easterly from the corner formed by the intersection of the southerly side of Seventh Street with the easterly side of Franklin Avenue;

RUNNING THENCE easterly along the southerly side of Seventh Street, 50 feet;

THENCE southerly along a line forming an interior angle of 89° 46' 30" with the southerly side of Seventh Street, 113.67 feet to the Incorporated Village of Garden City Parking Field;

THENCE westerly along said last mentioned land parallel with the southerly side of Seventh Street, 50 feet;

THENCE northerly along a line forming an interior angle of 90° 13' 30" with the southerly side of Seventh Street, 113.67 feet to the southerly side of Seventh Street, the point or place of BEGINNING.

For Informational Purposes: *Commonly known as: 224 Seventh Street, Garden City, NY*

*For Information Only Section 34 Block 91 Lot 120.*

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**<u>EXHIBIT B</u>**

**<u>ASSIGNMENT AND ACCEPTANCE</u>**

Dated _____________, _____

Reference is made to the Loan Agreement dated as of September 30, 2021 (as extended, renewed, amended or restated from time to time, the "**Loan Agreement**") among MOB Cedar Park, L.L.C., MOB 5255 San Antonio, L.L.C., MOB 9157 San Antonio, L.L.C., MOB Raleigh, L.L.C., MOB 1431 Houston, L.L.C., MOB 1 New Britain, L.L.C., MOB 300 New Britain, L.L.C., MOB Oklahoma City, L.L.C., MOB Peoria, L.L.C., MOB Phoenix, L.L.C., MOB 3855 Gilbert, L.L.C., MOB 700 Chandler, L.L.C., MOB 3686 Gilbert, L.L.C., MOB Kingwood, L.L.C., MOB Garden City, L.L.C., and IPCAAF MOB Portfolio II, L.L.C., each a Delaware limited liability company, the Guarantors party thereto, the Lenders thereto, and BMO Harris Bank N.A., as Administrative Agent (the "**Administrative Agent**"). Terms defined in the Loan Agreement are used herein with the same meaning.

______________________________________________________ (the "**Assignor**") and _________________________ (the "**Assignee**") agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1. The Assignor hereby sells and assigns to the Assignee, and the Assignee hereby purchases and assumes from the Assignor, the amount and specified percentage interest shown on <u>Annex I</u> hereto of the Assignor's rights and obligations under the Loan Agreement as of the Effective Date (as defined below), including, without limitation, the Assignor's Commitments as in effect on the Effective Date and the portion of the Loan, if any, owing to the Assignor on the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2. The Assignor (i) represents and warrants that it is the legal and beneficial owner of the interest being assigned by it hereunder and that such interest is free and clear of any adverse claim, lien, or encumbrance of any kind; (ii) makes no representation or warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with the Loan Agreement or the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Agreement or any other instrument or document furnished pursuant thereto; and (iii) makes no representation or warranty and assumes no responsibility with respect to the financial condition of Borrower or the performance or observance by Borrower of any of their respective obligations under the Loan Agreement or any other instrument or document furnished pursuant thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3. The Assignee (i) confirms that it has received a copy of the Loan Agreement, together with copies of the most recent financial statements delivered to the Lenders pursuant to **Section 4.1.8** thereof and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and Acceptance; (ii) agrees that it will, independently and without reliance upon the Administrative Agent, the Assignor or any other Lender and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Agreement; (iii) appoints and authorizes the Administrative Agent to take such action as Administrative Agent on its behalf and to exercise such powers under the Loan Agreement and the other Loan Documents as are delegated to the Administrative Agent by the terms thereof, together with such powers as are reasonably incidental thereto; (iv) agrees that it will perform in accordance with their terms all of the obligations which by the terms of the Loan Agreement are required to be performed by it as a Lender; and (v) specifies as its lending office (and address for notices) the offices set forth on its Administrative Questionnaire.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4. As consideration for the assignment and sale contemplated in Annex I hereof, the Assignee shall pay to the Assignor on the Effective Date in Federal funds the amount agreed upon between them. It is understood that commitment and/or letter of credit fees accrued to the Effective Date with respect to the interest assigned hereby are for the account of the Assignor and such fees accruing from, and including, the Effective Date are for the account of the Assignee. Each of the Assignor and the Assignee hereby agrees that if it receives any amount under the Loan Agreement which is for the account of the other party hereto, it shall receive the same for the account of such other party to the extent of such other party's interest therein and shall promptly pay the same to such other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5. The effective date for this Assignment and Acceptance shall be ___________ (the "**Effective Date**"). Following the execution of this Assignment and Acceptance, it will be delivered to the Administrative Agent for acceptance and recording by the Administrative Agent and, if required, Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6. Upon such acceptance and recording, as of the Effective Date, (i) the Assignee shall be a party to the Loan Agreement and, to the extent provided in this Assignment and Acceptance, have the rights and obligations of a Lender thereunder and (ii) the Assignor shall, to the extent provided in this Assignment and Acceptance, relinquish its rights and be released from its obligations under the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7. Upon such acceptance and recording, from and after the Effective Date, the Administrative Agent shall make all payments under the Loan Agreement in respect of the interest assigned hereby (including, without limitation, all payments of principal, interest and commitment fees with respect thereto) to the Assignee. The Assignor and Assignee shall make all appropriate adjustments in payments under the Loan Agreement for periods prior to the Effective Date directly between themselves.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8. This Assignment and Acceptance shall be governed by, and construed in accordance with, the laws of the State of Illinois.

[Remainder of page intentionally left blank. Signature pages follow.]

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**[Assignor Lender]**

By:_________________________________

Name_______________________________

Title________________________________

**[Assignee Lender]**

By:_________________________________

Name_______________________________

Title________________________________

Accepted and consented this

&nbsp;&nbsp;&nbsp;&nbsp;____ day of _____________

**[Insert Name of Borrower]**

By:

Name

Title

Accepted and consented to by the Administrative

Agent this ___ day of ________

**BMO Harris Bank N.A.**,

as Administrative Agent

By:

Name

Title

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**Annex I**

**to Assignment and Acceptance**

The assignee hereby purchases and assumes from the assignor the following interest in and to all of the Assignor's rights and obligations under the Loan Agreement as of the effective date.

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| | | |
|:---|:---|:---|
| Aggregate Commitment/Loan For All Lenders | Amount of Commitment/Loan Assigned | Percentage Assigned of Commitment/Loan |
| $_____________ | $_____________ | _____% |

---

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**<u>EXHIBIT C</u>**

**<u>FORM OF NOTE</u>**

PROMISSORY NOTE

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$___________ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chicago, Illinois<br>________, 202___ |

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FOR VALUE RECEIVED _________________________, a _______________, as maker, having its principal place of business at ____________ ("**Borrower**"), hereby unconditionally promises to pay to ______________________, as lender, or its registered assigns, having an address at _________________________ ("**Lender**"), or at such other place as the holder hereof may from time to time designate in writing, the principal sum of ________________________________ AND NO/100 DOLLARS ($____________), in lawful money of the United States of America, with interest thereon to be computed from the date of this Promissory Note (this "**Note**") at the Interest Rate, and to be paid in arrears in accordance with the terms of this Note and that certain Loan Agreement dated the date hereof among Borrower, BMO Harris Bank, N.A., a national banking association, as Administrative Agent, sole lead arranger and sole lead bookrunner, and as lender, and the other lenders party thereto from time to time (as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time, the "**Loan Agreement**"). All capitalized terms not defined herein shall have the respective meanings set forth in the Loan Agreement.

**ARTICLE 1. PAYMENT TERMS**

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

**ARTICLE 2. DEFAULT AND ACCELERATION**

The Debt shall become immediately due and payable at the option of Lender upon the occurrence of an Event of Default or as otherwise set forth in the Loan Agreement.

**ARTICLE 3. LOAN DOCUMENTS**

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

**ARTICLE 4. SAVINGS CLAUSE**

Notwithstanding anything to the contrary, (a) all agreements and communications between Borrower and Lender are hereby and shall automatically be limited so that, after taking into account all amounts deemed interest, the interest contracted for, charged or received by Lender shall never exceed the maximum lawful rate or amount, (b) in calculating whether any interest exceeds the lawful maximum, all

78580509.10 ------

such interest shall be amortized, prorated, allocated and spread over the full amount and term of all principal indebtedness of Borrower to Lender, and (c) if through any contingency or event, Lender receives or is deemed to receive interest in excess of the lawful maximum, any such excess shall be deemed to have been applied toward payment of the principal of any and all then outstanding indebtedness of Borrower to Lender, or if there is no such indebtedness, shall immediately be returned to Borrower.

**ARTICLE 5. NO ORAL CHANGE**

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

**ARTICLE 6. WAIVERS**

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

**ARTICLE 7. TRANSFER**

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

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**ARTICLE 8. RECOURSE**

The provisions of Section 12.20 of the Loan Agreement are hereby incorporated by reference into this Note to the same extent and with the same force as if fully set forth herein.

**ARTICLE 9. GOVERNING LAW**

**THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF ILLINOIS, WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES. BORROWER AND LENDER (BY ITS ACCEPTANCE HEREOF) HEREBY IRREVOCABLY SUBMIT TO THE JURISDICTION OF ANY COURT OF COMPETENT JURISDICTION LOCATED IN THE CITY OF CHICAGO AND STATE OF ILLINOIS IN CONNECTION WITH ANY PROCEEDING ARISING OUT OF OR RELATING TO THIS NOTE AND THE OTHER LOAN DOCUMENTS.**

**ARTICLE 10. NOTICES**

All notices or other written communications hereunder shall be delivered in accordance with Section 12.6 of the Loan Agreement.

[NO FURTHER TEXT ON THIS PAGE]

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

By:_______________________________

Name: ____________________________

Title: _____________________________

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**<u>EXHIBIT D</u>**

**<u>FORM OF COMPLIANCE CERTIFICATE</u>**

MOB Cedar Park, L.L.C., MOB 5255 San Antonio, L.L.C., MOB 9157 San Antonio, L.L.C., MOB Raleigh, L.L.C., MOB 1431 Houston, L.L.C., MOB 1 New Britain, L.L.C., MOB 300 New Britain, L.L.C., MOB Oklahoma City, L.L.C., MOB Peoria, L.L.C., MOB Phoenix, L.L.C., MOB 3855 Gilbert, L.L.C., MOB 700 Chandler, L.L.C., MOB 3686 Gilbert, L.L.C., MOB Kingwood, L.L.C., MOB Garden City, L.L.C., and IPCAAF MOB Portfolio II, L.L.C.

**Compliance Certificate**

To: BMO Harris Bank N.A. as Administrative Agent under, and the Lenders parties to, the Loan Agreement described below

This Compliance Certificate is furnished to the Administrative Agent and the Lenders pursuant to that certain Loan Agreement dated as of September 30, 2021, among us (as extended, renewed, amended or restated from time to time, the "**Loan Agreement**"). Unless otherwise defined herein, the terms used in this Compliance Certificate have the meanings ascribed thereto in the Loan Agreement.

The undersigned hereby certifies that:

1. I am the duly elected ____________ of ___________________________________;

2. I have reviewed the terms of the Loan Agreement and I have made, or have caused to be made under my supervision, a detailed review of the transactions and conditions of the Borrower during the accounting period covered by the attached financial statements.

3. The examinations described in paragraph 2 did not disclose, and I have no knowledge of, the existence of any condition or the occurrence of any event which constitutes a Default or Event of Default during or at the end of the accounting period covered by the attached financial statements or as of the date of this Compliance Certificate, except as follows: ____________. Without limitation of the foregoing, as of the date of this certificate, no Distributions (as defined in Section 4.2.9 of the Loan Agreement) have been made in violation of Section 4.2.9.

4. The financial statements required by Section 4.1.8 of the Loan Agreement and being furnished to you concurrently with this Compliance Certificate are true, correct and complete as of the date and for the periods covered thereby.

5. Schedule I hereto sets forth financial data and computations evidencing the Borrower's calculation of the Debt Yield, all of which data and computations are, to my knowledge, true, complete and correct and have been made in accordance with the relevant Sections of the Loan Agreement.

The foregoing certifications, together with the computations set forth in Schedule I hereto and the financial statements delivered with this Certificate in support hereof, are made and delivered this ______ day of __________________ 20___.

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[Insert Name of Borrower]

By

Name

Title

78580509.10 ------

**Schedule I**

**to Compliance Certificate**

 **MOB Cedar Park, L.L.C., MOB 5255 San Antonio, L.L.C., MOB 9157 San Antonio, L.L.C., MOB Raleigh, L.L.C., MOB 1431 Houston, L.L.C., MOB 1 New Britain, L.L.C., MOB 300 New Britain, L.L.C., MOB Oklahoma City, L.L.C., MOB Peoria, L.L.C., MOB Phoenix, L.L.C., MOB 3855 Gilbert, L.L.C., MOB 700 Chandler, L.L.C., MOB 3686 Gilbert, L.L.C., MOB Kingwood, L.L.C., MOB Garden City, L.L.C., and IPCAAF MOB Portfolio II, L.L.C.**

**Debt Yield**

 **Calculations**

**for Loan Agreement dated as of September 30, 2021**

Calculations as of _____________, _______

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78580509.10 ------

**<u>EXHIBIT E</u>**

**<u>SURVEY REQUIREMENTS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Requirements</u>. The survey shall be made in accordance with, and meet the requirements of, the certification below by a registered professional engineer or registered professional land surveyor. The description shall be a single metes and bounds perimeter description of the entire land, and a separate metes and bounds description of the perimeter of each constituent tract or parcel out of the land. The total acreage and square footage of the land and each constituent tract or parcel of the land shall be certified. If the land has been recorded on a map or plat as part of an abstract or subdivision, all survey lines must be shown, and all lot and block lines (with distances and bearings) and numbers, must be shown. The date of any revisions subsequent to the initial survey prepared pursuant to these requirements must also be shown.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Certification</u>. The certification for the property description and the map or plat shall be addressed to Administrative Agent for the Lenders, Borrower and the Title Company, signed by the surveyor (a registered professional land surveyor or registered professional engineer), bearing current date, registration number, and seal, and shall be in the following form or its substantial equivalent:

To BMO Harris Bank N.A., as a Lender and as Administrative Agent for the Lenders, _________________________, as Borrower, and _______________________, as Title Company:

This is to certify that this map or plat and the survey on which it is based were made in accordance with the 2021 Minimum Standard Detail Requirements for ALTA/NSPS Land Title Surveys, jointly established and adopted by ALTA and NSPS, and includes Items 1, 2, 3, 4 (in square feet or acres), 6, 8, 13, 14, 16, 17, 18, 19 and 20, and if buildings are located on the land, optional items 7(a), 7(b)(l), 7(c), and 9, and 10(a) of Table A thereof. The field work was completed on___________________________.

Date of Plat or Map: ______________________

(Surveyor's signature, printed name and seal with Registration/License Number)

78580509.10 ------

**<u>EXHIBIT F</u>**

**<u>Form of Request for Loan Extension</u>** 

BMO Harris Bank N.A., as Administrative Agent

115 S. LaSalle Street, 19W<br>Chicago, Illinois 60603

Ladies and Gentlemen:

Reference is hereby made to that certain Loan Agreement dated as of September 30, 2021 (as amended from time to time, the "**Loan Agreement**"), between BMO Harris Bank N.A., as Administrative Agent for itself and such other co-lenders party thereto and MOB Cedar Park, L.L.C., MOB 5255 San Antonio, L.L.C., MOB 9157 San Antonio, L.L.C., MOB Raleigh, L.L.C., MOB 1431 Houston, L.L.C., MOB 1 New Britain, L.L.C., MOB 300 New Britain, L.L.C., MOB Oklahoma City, L.L.C., MOB Peoria, L.L.C., MOB Phoenix, L.L.C., MOB 3855 Gilbert, L.L.C., MOB 700 Chandler, L.L.C., MOB 3686 Gilbert, L.L.C., MOB Kingwood, L.L.C., MOB Garden City, L.L.C., and IPCAAF MOB Portfolio II, L.L.C., each a Delaware limited liability company (collectively, "**Borrower**"). Capitalized terms not otherwise defined herein shall have the respective meanings ascribed to such terms in the Loan Agreement.

Borrower hereby exercises Borrower's option set forth in Section 2.3.3 of the Loan Agreement to extend the Maturity Date of the Loan from _____ to _____. Borrower hereby certifies that there exists no Default or Event of Default under the Loan Documents, and all representations and warranties of Borrower in the Loan Agreement are true and correct. Borrower further certifies that all conditions precedent to such extension have been satisfied, including without limitation, the following:

(a) Upon the earlier of (i) delivery of written notice by Administrative Agent to Borrower that all conditions for the extension of the Maturity Date as set forth in Section 2.3.3 have been met (or waived) and (ii) the first day of the applicable Extension Period, Borrower shall pay to Administrative Agent an extension fee in an amount equal to 0.10% of the Principal Balance.

(b) The Debt Yield is at least 8.5%, calculated as of the last day of the calendar month immediately preceding the date of this notice.

(d) The LTV Ratio is not greater than 62% as of the first day of such Extension Period.

(e) The WALT for all of the Properties (calculated in the aggregate) is four (4) years or greater.

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Each Borrower certifies that the statements made in this Borrower's Certificate and any documents submitted herewith and identified herein are true and has duly caused this Borrower's Certificate to be signed on its behalf by the undersigned, thereunto duly authorized.

___________________________<br>By: <br>Name: <br>Title:

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**<u>EXHIBIT G</u>**

**<u>FORM OF JOINDER AGREEMENT</u>**

This JOINDER AGREEMENT (this "**Agreement**") is made as of this [ ] day of [ ], 202[ ] (the "**Effective Date**"), by and among each of the entities listed on Exhibit A attached hereto (collectively, the "**Existing Borrowers**") and BMO HARRIS BANK N.A., a national banking association, as Administrative Agent ("**Administrative Agent**") and each of the entities listed on Exhibit B attached hereto (individually and/or collectively, the "**Joining Borrower**").

RECITALS

WHEREAS, the Existing Borrowers, Administrative Agent and BMO Harris Bank N.A., as the initial lender (together with such other lenders that may be a party to the Loan Agreement from time to time, the "**Lenders**") entered into (i) that certain Loan Agreement, dated as of September 30, 2021 (as amended, joined, restated, supplemented or otherwise modified from time to time, the "**Loan Agreement**"), and (ii) each other document listed on <u>Schedule 1</u> hereto (together with the Loan Agreement, as amended, joined, restated, supplemented or otherwise modified from time to time, the "**Loan Documents**");

WHEREAS, in connection with a Partial Substitution in accordance with the terms of the Loan Agreement, the parties hereto each desire to add the Joining Borrower as a Borrower under the Loan Documents, as set forth in this Agreement; and

WHEREAS, the parties hereto agree that as of the Effective Date (as defined below), the Joining Borrower shall be a Borrower under the Loan Documents, as more specifically provided herein.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Defined Terms</u>. Any terms capitalized but not otherwise defined herein shall have the respective meanings set forth in the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Joinder to Loan Agreement</u>. Without relieving the Existing Borrowers of any of their obligations and liabilities under the Loan Agreement, effective as of the Effective Date, the Joining Borrower joins in and agrees to be bound by all of the terms and provisions of the Loan Agreement and in each instance become a party to the Loan Agreement as a "Borrower" thereunder with the same effect as if it was an original signatory to the Loan Agreement. The Joining Borrower hereby expressly assumes all obligations and liabilities of "Borrower" under the Loan Agreement. The Joining Borrower hereby agrees that this Agreement may be attached to the Loan Agreement. All obligations of the Existing Borrowers and the Joining Borrower pursuant to the Loan Agreement shall be joint and several.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Joinder to Note</u>. Without relieving the Existing Borrowers of any of their obligations and liabilities under the Note, effective as of the Effective Date, the Joining Borrower

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joins in and agrees to be bound by all of the terms and provisions of the Note and in each instance become a party to the Note as a co-borrower and co-obligor thereunder and maker thereof with the same effect as if it was an original signatory to the Note. The Joining Borrower hereby expressly assumes all obligations and liabilities of "Borrower" under the Note. All obligations of the Existing Borrowers and the Joining Borrower pursuant to the Note shall be joint and several.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Joinder to Other Loan Documents</u>. Without relieving the Existing Borrowers of any of their obligations and liabilities under the other Loan Documents to which they are a party, effective as of the Effective Date, the Joining Borrower joins in and agrees to be bound by all of the terms and provisions of the Loan Documents to which the Existing Borrowers are a party (excluding the Security Instrument and Assignment of Leases and Rents to which the Existing Borrowers are a party (other than any Security Instrument and Assignment of Leases and Rents to which Joining Borrower is a party) (collectively, the "**Joined Loan Documents**")) and in each instance become a party to the Joined Loan Documents as a co-borrower thereunder with the same effect as if it was an original signatory to the Joined Loan Documents. The Joining Borrower hereby expressly assumes all obligations and liabilities of a co-borrower under the Joined Loan Documents and a co-indemnitor with respect to the Environmental Indemnity, including any terms relating to (a) the grant of a security interest in the Property, (b) the compliance with all covenants as set forth in the Loan Agreement and each other Joined Loan Document, (c) indemnities applicable to a Borrower and (d) each Event of Default set forth in Section 10.1 of the Loan Agreement. The Joining Borrower hereby makes each of the covenants and agreements made by a Borrower under the Loan Agreement and each other Joined Loan Document, as if each such covenant was set forth herein, *mutatis mutandis*. All obligations of the Existing Borrowers and the Joining Borrowers pursuant to the Joined Loan Documents shall be joint and several. **[Note: the DACA may need to be amended to add the Joining Borrower / Joining Borrower account]**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Representations</u>. Each Existing Borrower hereby represents and warrants to Administrative Agent and Lenders that the representations and warranties made by each Borrower in the Loan Documents (including, without limitation, Article III of the Loan Agreement and Section 1 of the Environmental Indemnity) are true and correct in all material respects, in each case, as of the date hereof, excluding representations and warranties that were made as of a specific date, and subject to any changes in facts or circumstances permitted to have occurred, or not prohibited from having occurred, pursuant to the terms of the Loan Documents (in which case such change of facts and circumstances are set forth on Schedule 2 attached hereto, which such schedule contains reference to the applicable representation(s) and warranty(ies) or sets forth any exceptions to such representations and warranties). Except as described in the Exception Report attached hereto as <u>Schedule 2</u>, Joining Borrower hereby makes, with respect to itself and the individual Property of such Joining Borrower (each, the "**Joining Individual Property**"), as of the date hereof (unless such representation or warranty is made on and as of the Closing Date under the Loan Agreement, in which case, as of the date hereof), all of the representations and warranties that are applicable to an individual Borrower that are set forth in the Loan Documents (including, without limitation, Article III of the Loan Agreement and Section 1 of the Environmental Indemnity), which representations are true and correct in all respects, in each case, as of the date hereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Amendment to Exhibits and Schedules to the Loan Agreement</u>. [ ]<sup>1</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Effective Date</u>. This Agreement shall become effective on the first date on which the parties hereto have duly executed this Agreement and Guarantor has duly executed the Reaffirmation of Guaranty in the form attached hereto (such date being the "**Effective Date**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Borrower Certification</u>. The Joining Borrower shall have delivered a certification, in form reasonably satisfactory to Administrative Agent, attaching a true, correct and accurate copy of the rent roll for the Joining Individual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>No Default</u>. The Existing Borrowers and the Joining Borrower hereby certify that no Default or Event of Default exists and is continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Joining Borrower</u>. The Joining Borrower's exact legal name is correctly set forth in the first paragraph of this Agreement. On the Effective Date, the Joining Borrower's principal place of business is located at [ ]. On the Effective Date, the Joining Borrower's jurisdiction of organization is the State of Delaware, Joining Borrower is in good standing in the State of Delaware, and the Joining Borrower is qualified to do business and is in good standing in the State of [______________]. <u>Schedule 3</u> attached hereto sets forth as of the Effective Date the ownership structure for the Borrower and each of its direct equity holders and is true and correct in all respects as of the Effective Date and shall replace Schedule 3.1.1 to the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Joint and Several Liability</u>. Notwithstanding anything in the Loan Documents to the contrary, each Borrower hereby acknowledges and agrees that Borrowers are jointly and severally liable to Administrative Agent and Lenders pursuant to Article XIII of the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Further Assurances</u>. The parties hereto shall each take any and all further actions and execute and deliver any and all such further documents and undertakings as are necessary or reasonably requested by the other party to effectuate the purposes of this Agreement in accordance with the Loan Agreement. The undertakings set forth in this <u>Section 12</u> shall survive the execution and delivery of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Fees and Expenses</u>. Borrowers agree to pay to Administrative Agent all reasonable third-party out-of-pocket fees, costs and expenses incurred by Administrative Agent in connection with this Agreement (including reasonable out-of-pocket fees, costs and expenses of Administrative Agent's legal counsel incurred in connection with this Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Limited Effect</u>. Except as expressly supplemented by this Agreement, each of the Loan Documents shall continue in full force and effect in accordance with its terms. Reference to this Agreement need not be made in any Loan Document or any other instrument or document executed in connection therewith or herewith, or in any certificate, letter or communication issued or made pursuant to, or with respect to, any Loan Document, any reference in any of such items to any Loan Document being sufficient to refer to such Loan Document as supplemented hereby.

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<sup>1</sup> Note: schedules to be updated as necessary.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Successors and Assigns</u>. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>GOVERNING LAW</u>. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF ILLINOIS IN ACCORDANCE WITH SECTION 12.2 OF THE LOAN AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Counterparts</u>. This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. Signatures by facsimile or by electronic mail delivery of an electronic version (e.g., .pdf or .tif file) of an executed signature page shall bind the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Notices</u>. The parties hereto acknowledge and agree that the address of Joining Borrower and Existing Borrower for receiving notices and for all other purposes of the Loan Documents is the same as set forth for the Borrower in Section 12.6 of the Loan Agreement.

[Signature page to follow]

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IN WITNESS WHEREOF, the parties hereto have caused their duly authorized officers to execute this Agreement as of the date first above written.

**ADMINISTRATIVE AGENT:**

BMO HARRIS BANK N.A., a national banking association, as Administrative Agent

By:

Name:

Title:

**EXISTING BORROWERS:**

[________], a [________]

By:

Name:

Title:

**JOINING BORROWER:**

[________], a [________]

By:

Name:

Title:

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**REAFFIRMATION OF GUARANTY**

The undersigned (on behalf of itself and its successors and assigns) hereby acknowledges and approves the foregoing Joinder Agreement and reaffirms its obligations under that certain Guaranty, dated as of September 30, 2021 and that certain Environmental Indemnity Agreement, dated as of September 30, 2021 (collectively, the "**Guaranty Agreements**") and agrees that such Guaranty Agreements and its obligations thereunder shall continue and remain in full force and affect in accordance with its terms with respect to each Borrower and their respective Individual Property as well as from and after the date hereof, the Joining Borrower and the Joining Individual Property. Any terms capitalized but not otherwise defined shall have the respective meanings set forth in the Joinder Agreement.

Dated: [ ]

**<u>GUARANTOR</u>:**

**Inland Private Capital Corporation**, a Delaware corporation

By:

Name: _________________________________

Title:

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**<u>EXHIBIT A (to Form of Joinder)</u>**

**<u>Existing Borrowers</u>**

MOB Cedar Park, L.L.C.

MOB 5255 San Antonio, L.L.C.

MOB 9157 San Antonio, L.L.C.

MOB Raleigh, L.L.C.

MOB 1431 Houston, L.L.C.

MOB 1 New Britain, L.L.C.

MOB 300 New Britain, L.L.C.

MOB Oklahoma City, L.L.C.

MOB Peoria, L.L.C.

MOB Phoenix, L.L.C.

MOB 3855 Gilbert, L.L.C.

MOB 700 Chandler, L.L.C.

MOB 3686 Gilbert, L.L.C.

MOB Kingwood, L.L.C.

MOB Garden City, L.L.C., and

IPCAAF MOB Portfolio II, L.L.C.,

each a Delaware limited liability company

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**<u>EXHIBIT B (to Form of Joinder)</u>**

**<u>Joining Borrowers</u>**

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**<u>SCHEDULE 1 (to Form of Joinder)</u>**

**LOAN DOCUMENTS**

[All Loan Documents are dated as of September 30, 2021 unless otherwise indicated below.]

Schedule 1-1

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**<u>SCHEDULE 2 (to Form of Joinder)</u>**

**<u>Exception Report</u>**

Schedule 2-1

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**<u>SCHEDULE 3 (to Form of Joinder)</u>**

**<u>Organizational Chart</u>**

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**<u>SCHEDULE 1</u>**

**<u>Index of Other Definitions</u>**

"<u>Acquisition Date</u>" – Section 11.10(b)

"<u>Affected Lender</u>" - Section 2.5

"<u>Borrower</u>" – Introductory Paragraph

"<u>Business Plan</u>" - Section 11.10(b)

"<u>Cash Collateral Subaccount</u>" – Section 8.3

"<u>Cash Management Accounts</u>" – Section 8.4

"<u>Central Account</u>" - Section 8.1

"<u>Deposit Account</u>" - Section 8.1

"<u>Distributions</u>" - Section 4.2.9

"<u>ERISA</u>" - Section 3.1.7.

"<u>Event of Default</u>" - Section 10.1

"<u>Extension Period</u>" – Section 2.3.3

"<u>First Extended Maturity Date</u>" – Section 2.3.3

"<u>Future Commitment</u>" – Section 2.6(e)

"<u>Indemnified Liabilities</u>" - Section 12.13

"<u>Indemnified Party</u>" - Section 12.13

"<u>Insurance Funds</u>" – Section 6.2.1

"<u>Insurance Reserve</u>" – Section 6.2.1

"<u>Insurance Premiums</u>" - Section 5.1.1(b)

"<u>Interest Rate Cap Agreement</u>" – Section 2.10

"<u>Late Charge</u>" - Section 2.3.1(c)

"<u>Leasing Reserve</u>" – Section 6.3

"<u>Lending Office</u>" - Section 2.7

"<u>LIBOR Breakage Fee</u>" - Section 2.3.7

"<u>Net Property Proceeds</u>" - Section 5.2.1(b)

"<u>Net Condemnation Proceeds</u>" – Section 5.2.2

"<u>Note</u>" - Section 2.1.3

"<u>Notice</u>" - Section 12.6

"<u>OFAC Rules</u>" - Section 3.1.35

"<u>Partial Release</u>" – Section 2.8

"<u>Partial Substitution</u>" – Section 2.9

"<u>Participant Register</u>" - Section 9.1(b)

"<u>Permitted Indebtedness</u>" - Section 4.2.4

"<u>Plan Assets Regulation</u>" - Section 3.1.7

"<u>Policies</u>" - Section 5.1.1(b)

"<u>Prepayment Fee</u>" – Section 2.4

"<u>Prohibited Person</u>" - Section 3.1.36

"<u>Property Manager</u>" – Section 11.10(b)

"<u>Register</u>" – Section 9.2(b)

"<u>Replacement Borrower</u>" – Section 2.9

"<u>Replacement Individual Property</u>" – Section 2.9

"<u>Replacement Property Documents</u>" – Schedule 2.1B

"<u>Reserve Funds</u>" – Section 6.4

"<u>Rollover Reserve Subaccount</u>" – Section 8.6

"<u>Second Extended Maturity Date</u>" – Section 2.3.3

"<u>Security Deposit Account</u>" - Section 8.2

Schedule 1 - 1

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"<u>Security Deposit Subaccount</u>" – Section 8.2

"<u>Special Advance</u>" - Section 2.6(c)

"<u>Subaccounts</u>" – Section 8.1

"<u>Syndication</u>" - Section 9.4

"<u>Tax Funds</u>" – Section 6.1.1

"<u>Tax Reserve</u>" – Section 6.1.1

"<u>Term Sheet</u>" – Section 4.1.11(e)

Schedule 1 - 2

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**<u>SCHEDULE 2</u>**

<u>SCHEDULE OF LENDERS</u>

BMO Harris Bank N.A., as Lender: Commitment Amount: $122,655,000.00

Percentage: 100%

Schedule 2 - 1

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**<u>SCHEDULE 2.1</u>**

**<u>CLOSING CONDITIONS</u>**

**A. <u>CLOSING CONDITIONS PRECEDENT</u>** 

Lenders' obligation to open the Loan shall be subject to Administrative Agent's receipt, review, approval and/or confirmation of the following, at Borrower's cost and expense, each in form and content satisfactory to Administrative Agent in its reasonable discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Appraisal</u>. The Loan Amount shall not exceed 65.0% of the "as-is" appraised value of the Properties as evidenced by a third-party appraisal reviewed and accepted by Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Equity</u>: Evidence reasonably satisfactory to Administrative Agent that Borrowers' cash equity invested in the Properties is not less than $66,045,000.00.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Loan Documents</u>. The Loan Documents, executed by Borrower and, as applicable, Guarantor and each other party thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Title Insurance Policy</u>. ALTA (or equivalent) mortgagee policies of title insurance with respect to each Individual Property in the aggregate maximum amount of the Loan, with reinsurance and endorsements as Administrative Agent may require, containing no exceptions to title (printed or otherwise) which are unacceptable to Administrative Agent, and insuring that the Security Instrument is a first-priority Lien on each Individual Property and related collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Survey</u>. A current ALTA/ACSM land title survey of each Individual Property, dated or updated to a date not earlier than thirty (30) days prior to the date hereof, certified to Administrative Agent and the issuer of Administrative Agent's title insurance, prepared by a licensed surveyor acceptable to Administrative Agent and such Title Company, and conforming to **Exhibit E** hereto or Administrative Agent's current standard survey requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Insurance</u>. Evidence of insurance as required by this Agreement, and conforming in all respects to the requirements of Administrative Agent, for which the premiums have been fully prepaid with endorsements satisfactory to Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Organizational Documents</u>. All documents evidencing the formation, organization, valid existence, good standing, and due authorization of and for Borrower and Guarantor and the authorization for the execution, delivery, and performance of the Loan Documents by Borrower and Guarantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Legal Opinions</u>. Legal opinions issued by counsel for Borrower and Guarantor, covering due authorization, execution and delivery and enforceability of the Loan Documents and also containing such other legal opinions as Administrative Agent shall require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Searches</u>. Current bankruptcy, federal tax lien and judgment searches and searches of all Uniform Commercial Code financing statements filed in each place UCC Financing Statements are to be filed hereunder, demonstrating the absence of adverse claims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Litigation</u>. Evidence that no litigation or proceedings shall be pending or threatened which could or might cause a Material Adverse Change with respect to Borrower, Guarantor or the Property.

Schedule 2.1 - 1

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Environmental Report</u>. A current Phase I Environmental Report (and, if requested by Administrative Agent, a current Phase II Environmental Report), with respect to the Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Property Condition Report</u>. A current property condition report with respect to each Individual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Rent Roll and Leases</u>. A current rent roll of the Property, which Borrower shall represent and warrant is true and correct. Such rent roll shall include the following information: (a) tenant names; (b) unit/suite numbers; (c) area of each demised premises and total area of the Property (stated in net rentable square feet); (d) rental rate (including escalations) (stated in gross amount and in amount per net rentable square foot per year); (e) lease term (commencement, expiration and renewal options); (f) expense pass-throughs; (g) cancellation/termination provisions; and (h) security deposit. In addition, Borrower shall provide Administrative Agent with a copy of the standard lease form to be used by Borrower in leasing space in the Property, and true and correct copies of all Leases of the Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Management Agreement</u>. A copy of the Management Agreement, certified by Borrower as being true, correct and complete.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Financial Statements</u>. Current annual financial statements of Borrower, the Guarantor, and such other persons or entities connected with the Loan as Administrative Agent may request, each in form and substance and certified by such individual as acceptable to Administrative Agent. Borrower and the Guarantor shall provide such other additional financial information as Administrative Agent reasonably requires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Flood Hazard</u>. Evidence that the Property is not located in an area designated by the Secretary of Housing and Urban Development as a special flood hazard area, or flood hazard insurance acceptable to Administrative Agent in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Reserve Deposits</u>. Borrower's deposit with Administrative Agent of the amount required by Administrative Agent under <u>Article VI</u> to fund any required escrows or reserves.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Zoning</u>. Evidence indicating compliance of each Individual Property with applicable zoning requirements acceptable to Administrative Agent, including a zoning analysis and compliance report from a zoning company acceptable to Administrative Agent and an ALTA 3.2 06 endorsement to the Title Insurance Policy or, if not available in the applicable State, a legal opinion as to compliance of the applicable Individual Property with zoning and land use laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Costs and Expenses</u>. Payment of Administrative Agent's costs and expenses in underwriting, documenting, and closing the transaction, including fees and expenses of Administrative Agent's inspecting engineers, consultants, and outside counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Ground Lease</u>. The Ground Lease, the Ground Lease Estoppel, and Borrower's Ground Lease Assumption and Ground Lease Lessor's consent thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Estoppels and SNDAs</u>. Estoppel certificates and subordination, non-disturbance and attornment agreements from tenants and other third parties, as requested by Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>Tenant Direction Letters</u>. Copies of tenant direction letters to be sent to the Tenants.

Schedule 2.1 - 2

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. <u>Representations and Warranties</u>. The representations and warranties contained in this Loan Agreement and in all other Loan Documents are true and correct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. <u>No Default</u>. No Default or Event of Default shall have occurred or exist.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. <u>Fee Letter</u>. All fees due and payable under the Fee Letter shall have been paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. <u>PML Report</u>. If required by Administrative Agent with respect to an Individual Property, a probable maximum loss report, which shall address (A) the probable maximum loss that is likely to be sustained by the Individual Property in the event of an earthquake or other seismic casualty at or affecting the Individual Property, and (B) likelihood and likely intensity of an earthquake or other seismic casualty at or affecting the Individual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27. <u>Beneficial Ownership Certification</u>. If Borrower qualifies as a "legal entity customer" under the Beneficial Ownership Regulation, a Beneficial Ownership Certification in relation to Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28. <u>Additional Documents</u>. Such other documents or items as Administrative Agent or its counsel may require.

B. **<u>PARTIAL SUBSTITUTION CONDITIONS PRECEDENT</u>**

Administrative Agent's and each Lender's obligation to approve a Partial Substitution shall be subject to Administrative Agent's receipt, review, approval and/or confirmation of the following, at Borrower's cost and expense, each in form and content satisfactory to Administrative Agent in its sole discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Appraisal</u>. After giving effect to the Partial Substitution, the Principal Balance shall not exceed 65.0% of the "as-is" appraised value of the Properties as evidenced by a third-party appraisal of the Replacement Individual Property and the most recent Appraisals of the other Properties, in each case reviewed and accepted by Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Replacement Property Documents</u>. The original remaining Borrowers (with respect to the Joinder Agreement), the Replacement Borrower and Guarantor, as applicable, shall have executed and delivered to Administrative Agent the following documents (the "**Replacement Property Documents**"): (i) a Joinder Agreement in the form of **Exhibit G** attached hereto; (ii) a Security Instrument and an Assignment of Leases with respect to the Replacement Individual Property, each in the same form in all material respects as the Security Instrument and the Assignment of Leases executed and delivered by the Borrowers for the Properties (with such changes for local law requirements as reasonably determined by Administrative Agent), (iii) if applicable, a "Recycled SPE Certificate" in the form required by Administrative Agent, and (iv) a Reaffirmation of Guaranty from Guarantor, in form satisfactory to Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Title Insurance Policy</u>. An ALTA (or equivalent) mortgagee policy of title insurance in the amount of the allocated loan amount for such Replacement Individual Property, as reasonably determined by Administrative Agent, with reinsurance and endorsements as Administrative Agent may require, containing no exceptions to title (printed or otherwise) which are unacceptable to Administrative Agent, containing such endorsements to the policy and to the policy obtained for the other Properties (including a "tie-in endorsement) reasonably required by Administrative Agent, and insuring that the Security Instrument is a first-priority Lien on the Replacement Individual Property and related collateral.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Survey</u>. A current ALTA/ACSM land title survey of the Replacement Individual Property, dated or updated to a date not earlier than thirty (30) days prior to the date of the Partial Substitution, certified to Administrative Agent and the Title Company, prepared by a licensed surveyor acceptable to Administrative Agent and such Title Company, and conforming to Exhibit E hereto or Administrative Agent's current standard survey requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Insurance</u>. Evidence of insurance for the Replacement Individual Property and the Replacement Borrower as required by this Agreement, and conforming in all respects to the requirements of Administrative Agent, for which the premiums have been fully prepaid with endorsements satisfactory to Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Organizational Documents</u>. All documents evidencing the formation, organization, valid existence, good standing, and due authorization of and for Replacement Individual Borrower and Guarantor and the authorization for the execution, delivery, and performance of the Replacement Property Documents by Borrower and Guarantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Legal Opinions</u>. Legal opinions issued by counsel for Borrower and Guarantor, covering due authorization, execution and delivery and enforceability of the Replacement Property Documents and also containing such other legal opinions as Administrative Agent shall require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Searches</u>. Current bankruptcy, federal tax lien and judgment searches and searches of all Uniform Commercial Code financing statements filed in each place UCC Financing Statements are to be filed hereunder, and any other searches reasonably required by Administrative Agent, in each case demonstrating the absence of any material adverse claims, as determined by Administrative Agent in its reasonable judgment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Litigation</u>. Evidence that no litigation or proceedings shall be pending or threatened against Replacement Borrower, Guarantor or the Replacement Individual Property which could or might cause a Material Adverse Change with respect to Replacement Borrower, Guarantor or the Property. The Partial Substitution shall not violate any order, judgment or decree of any court or other authority or any provision of law or regulation applicable to Administrative Agent or any Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Environmental Report</u>. A current Phase I Environmental Report (and, if requested by Administrative Agent, a current Phase II Environmental Report), with respect to the Replacement Individual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Property Condition Report</u>. A current property condition report with respect to the Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Rent Roll and Leases</u>. A current rent roll of the Individual Replacement Property, which Replacement Borrower shall represent and warrant is true and correct. Such rent roll shall include the following information: (a) tenant names; (b) unit/suite numbers; (c) area of each demised premises and total area of the Individual Replacement Property (stated in net rentable square feet); (d) rental rate (including escalations) (stated in gross amount and in amount per net rentable square foot per year); (e) lease term (commencement, expiration and renewal options); (f) expense pass throughs; (g) cancellation/termination provisions; an (h) security deposit. In addition, Replacement Borrower shall provide Administrative Agent with a copy of the standard lease form to be used by Replacement Borrower in leasing space in the Individual Replacement Property, true and correct copies of all leases of the Individual Replacement Property, and such other financial statements, leasing reports, and other reports relating to the Replacement Borrower or the Replacement Individual Property requested by Administrative Agent.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Management Agreement</u>. A copy of the Management Agreement for the Individual Replacement Property, certified by Replacement Borrower as being true, correct and complete.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Financial Statements</u>. Current annual financial statements of Replacement Borrower, the Guarantor, and such other persons or entities connected with the Loan as Administrative Agent may request, each in form and substance and certified by such individual as acceptable to Administrative Agent. Replacement Borrower and Guarantor shall provide such other additional financial information as Administrative Agent reasonably requires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Flood Hazard</u>. Evidence that the Individual Replacement Property is not located in an area designated by the Secretary of Housing and Urban Development as a special flood hazard area, or flood hazard insurance acceptable to Administrative Agent in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Reserve Deposits</u>. Borrower's deposit with Administrative Agent of the amount reasonably required by Administrative Agent to fund any required escrows or reserves contemplated under Article VI hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Zoning</u>. Evidence indicating compliance of the Replacement Individual Property with applicable zoning requirements acceptable to Administrative Agent, including a zoning analysis and compliance report from a zoning company acceptable to Administrative Agent and an ALTA 3.2 06 endorsement to the Title Insurance Policy or, if not available in the State, a legal opinion as to compliance of the Replacement Individual Property with zoning and land use laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Ground Lease</u>. If the Replacement Individual Property is subject to a ground lease, Administrative Agent and Lenders shall have approved the ground lease in their sole discretion, and Administrative Agent shall have received such estoppel certificates, recognition agreements and other documents relating to such ground lease as required by Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Estoppels and SNDAs</u>. Estoppel certificates and subordination, non-disturbance and attornment agreements from tenants and other third parties at the Replacement Individual Property, as requested by Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Tenant Direction Letters</u>. Copies of tenant direction letters to be sent to the Tenants at the Replacement Individual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>PML Report</u>. If required by Administrative Agent, a probable maximum loss report with respect to the Replacement Individual Property, which shall address (A) the probable maximum loss that is likely to be sustained by the Replacement Individual Property in the event of an earthquake or other seismic casualty at or affecting the Replacement Individual Property, and (B) likelihood and likely intensity of an earthquake or other seismic casualty at or affecting the Replacement Individual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>On-site Inspection</u>. If requested by Administrative Agent, Administrative Agent shall have performed an on-site inspection of the Replacement Individual Property and shall be satisfied with the results thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) <u>Costs and Expenses</u>. Borrowers shall pay all of Administrative Agent's costs and expenses in documenting and closing the Partial Substitution, including reasonable attorneys' fees; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) <u>Beneficial Ownership Certification</u>. If Replacement Borrower qualifies as a "legal entity customer" under the Beneficial Ownership Regulation, a Beneficial Ownership Certification in relation to Replacement Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) <u>Additional Documents</u>. Administrative Agent shall have received such other agreements, instruments, documents, certificates or items as Administrative Agent or its counsel may reasonably require.

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**<u>SCHEDULE 3.1.1</u>**

**<u>ORGANIZATIONAL CHART</u>**

(attached)

Schedule 3.1.1 - 1

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![img106812731_1.jpg](img106812731_1.jpg)

Schedule 3.1.1 - 2

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**<u>SCHEDULE 3.1.22</u>**

**<u>RENT ROLLS</u>**

See attached.

Schedule 3.1.22 - 1

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**<u>SCHEDULE 3.1.24</u>**

**<u>DEFINITION OF SPECIAL PURPOSE ENTITY</u>**

A "**Special Purpose Entity**" means a corporation, limited partnership or limited liability company which at all times since its formation and at all times thereafter:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) was and will be organized solely for the purpose of owning one or more of the Individual Properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) has not engaged and will not engage in any business unrelated to the ownership of the Individual Property that it owns;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) has not had and will not have any assets other than those related to the Individual Property that it owns;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) has not engaged, sought or consented to and will not engage in, seek or consent to any dissolution, winding up, liquidation, consolidation, division, merger, asset sale (except as expressly permitted by this Agreement), transfer of partnership or membership interests or the like, or amendment of its limited partnership agreement, articles of incorporation, articles of organization, certificate of formation or operating agreement (as applicable);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) has remained and will remain solvent; and has maintained and will maintain adequate capital in light of its contemplated business operations, provided, however, the foregoing shall not require any such constituent party of such Person to make any additional capital contributions thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) has not failed and will not fail to correct any known misunderstanding regarding the separate identity of such entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) has maintained and will maintain its accounts, books and records separate from any other Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) will file its own tax returns (except to the extent that such Person is treated as a "disregarded entity" for tax purposes or is not required to file tax returns under applicable law);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) has maintained and will maintain its books, records, resolutions and agreements as official records;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) has not commingled and will not commingle its funds or assets with those of any other Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) has held and will hold its assets in its own name;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) has conducted and will conduct its business in its name only, and has not and will not use any trade name (provided that advertisements using the name of the Property in lieu of the Borrower shall not constitute conducting business in another name);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) has maintained and will maintain its financial statements, accounting records and other entity documents separate from any other Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) has paid and will pay its own liabilities, including the salaries of its own employees, out of its own funds and assets;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) has observed and will observe all partnership, corporate or limited liability company formalities, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi) has maintained and will maintain an arm's-length relationship with its Affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii) has and will have no indebtedness other than the Permitted Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii) has not and will not assume or guarantee or become obligated for the debts of any other Person or hold out its credit as being available to satisfy the obligations of any other Person except for the Loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xix) has not and will not acquire obligations or securities of its partners, members or shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) has allocated and will allocate fairly and reasonably shared expenses, including shared office space, and uses separate invoices and checks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxi) except in connection with the Loan, has not pledged and will not pledge its assets for the benefit of any other Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxii) has held itself out and identified itself, and will hold itself out and identify itself, as a separate and distinct entity under its own name and not as a division or part of any other Person;

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxiv) has not made and will not make loans to any Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxv) has not identified and will not identify its partners, members or shareholders, or any Affiliate of any of them, as a division of it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxvi) has not entered into or been a party to, and will not enter into or be a party to, any transaction with its partners, members, shareholders or Affiliates except in the ordinary course of its business and on terms which are intrinsically fair and are no less favorable to it than would be obtained in a comparable arm's-length transaction with an unrelated third party; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxvii) has and will have no obligation to indemnify its partners, officers, directors, or members, as the case may be, or has such an obligation that is fully subordinated to the Debt and will not constitute a claim against it if cash flow in excess of the amount required to pay the Debt is insufficient to pay such obligation.

Schedule 3.1.24 - 2

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**<u>SCHEDULE 4.1.6</u>**

**<u>REQUIRED REPAIRS</u>**

![img106812731_2.gif](img106812731_2.gif)

Schedule 4.1.6 - 1

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**<u>SCHEDULE 4.1.22</u>**

**<u>POST-CLOSING REQUIREMENTS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. If Borrower or Holdings Borrower enter into an Interest Rate Cap Agreement pursuant to Section 2.10(b), Borrower shall or shall cause Holdings Borrower to cause the counterparty to the Interest Rate Cap Agreement ("**Rate Cap Provider**") to deliver to Administrative Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) within five (5) Business Days of the date of the Interest Rate Cap Agreement, an original signature of Rate Cap Provider to the Interest Rate Protection Agreement Acknowledgment executed in connection with the Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) within ten (10) Business Days of the date of the Interest Rate Cap Agreement, an original authorization and enforceability opinion with respect to Rate Cap Provider and the "rate cap confirmation" issued with respect to the Loan ("**Confirmation**"), in form and substance reasonably acceptable to Administrative Agent in its discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) within five (5) Business Days of the date of the Interest Rate Cap Agreement, a copy of the signed Confirmation, in form and substance reasonably acceptable to Administrative Agent in its discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) within five (5) Business Days of the date of the Interest Rate Cap Agreement, if credit support is required to satisfy the terms of this Agreement with respect to the Confirmation, a copy of the guaranty ("**RC Guaranty**") executed by the credit support provider ("**CS Provider**") in connection with such credit support.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) within fifteen (15) Business Days of the date of the Interest Rate Cap Agreement, if credit support is required to satisfy the terms of this Agreement with respect to the Confirmation, an original authorization and enforceability opinion with respect to the RC Guaranty and the CS Provider, in form and substance reasonably acceptable to Administrative Agent in its discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Within forty-five (45) days after the Closing Date, Borrower will deliver written evidence reasonably satisfactory to Administrative Agent that the outstanding fire code violations at the Starling Physicians – Kensington Property and the Starling Physicians – Lake Street Property have been cured in accordance with applicable Law.

Schedule 4.1.22 - 1

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**<u>SCHEDULE 5.1.1</u>**

**<u>INSURANCE</u>** 

**<u>SECTION I. GENERAL INSURANCE REQUIREMENTS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. **PROPERTY INSURANCE** Upon request, and prior to the Closing Date, Borrower's insurance broker is to evidence, on Accord 28 or equivalent, the following coverage in place or to be in place at close of this transaction: Comprehensive "all risk" (Special Form) insurance on the Improvements and the personal property at the Property (A) in an amount equal to one hundred percent (100%) of the "Full Replacement Cost," which for purposes of this Agreement shall mean the cost new with no depreciation (exclusive of costs of excavations, foundations, underground utilities and footings); (B) containing an Agreed Amount Endorsement with respect to the Improvements and personal property at the Property waiving all co insurance provisions, if applicable; and (C) providing for no deductible in excess of Twenty Five Thousand and No/100 Dollars ($25,000), or as approved in writing by Administrative Agent or Administrative Agent's consultant, for all such insurance coverage. Such insurance shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) All Borrowers and guarantors are to be scheduled as Named Insured;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all property policies must include a Loss Payee provision naming Administrative Agent and providing thirty (30) days' notice of cancellation (ten (10) days' notice for non-payment), in accordance with ISO's Lenders' Loss Payable provision CP1218 or equivalent; furthermore a waiver of subrogation or additional insured provision favoring Administrative Agent must be provided or included in the policy terms and conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) A) business income and rental value insurance at a limit equal to the projected rental and other income in an amount equal to twelve (12) months of gross income from the Property received and an extended period of indemnity 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 twelve (12) months from the date that the Property is repaired or replaced and operations are resumed, whichever first occurs; the amount of such loss of rents/business income insurance shall be determined prior to the date hereof and at least once each year thereafter based on Borrower's reasonable estimate of the gross income from the Property for the succeeding twelve (12) month period. B) All proceeds payable to Borrower will be tendered to Administrative Agent pursuant to this Section which shall be held by Administrative Agent and shall be applied to the obligations secured by the Loan Documents from time to time due and payable hereunder and under the Note; provided, however, that nothing herein contained shall be deemed to relieve Borrower of its obligations to pay the Debt secured by the Loan Documents on the respective dates of payment provided for in the Note and the other Loan Documents except to the extent such amounts are actually paid out of the proceeds of such loss of rents/business income insurance. Administrative Agent, acting reasonably, may request longer periods of indemnity depending on the size of the building(s) and its anticipated repair or replacement at the time of the review;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Borrower shall obtain: (x) if any portion of the Improvements is currently or at any time in the future located in federally designated FEMA flood zone A, B, V or X-Shaded, flood hazard insurance may be required in an amount equal to either (1) the full replacement cost of the Improvements (including contents), or (2) the Principal Balance of the Note, or (3) such lesser amount as Administrative Agent shall reasonably require with deductibles consistent with industry standards; (y) furthermore, if any portion of the Improvements is or at any time in the future is located in federally designated flood zone A or V and Administrative Agent will be mortgagee of

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&nbsp;&nbsp;&nbsp;&nbsp;78580509.10 ------

the Improvements (including contents) flood insurance is required as per the National Flood Insurance Reform Act of 1994 and other key legislation that governs the National Flood Insurance Program (NFIP). The declarations page of the policy, or a copy of the application and premium payment, must be received, reviewed and approved by Administrative Agent's designated Compliance Officer prior to Closing Date. If this is not received, closing and funding of the Loan may be delayed. If banking regulations dictate additional requirements or documentation, Borrower will be advised;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) if Property is located in an area with a high degree of seismic activity earthquake insurance in amounts and in form and substance satisfactory to Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) property coverage for ordinance and law to cover (A) included within the policy limit with respects to the undamaged portion, (B) demolition and debris removal, and (C) increased cost of construction, in limits approved in writing by Administrative Agent, (D) Ordinance or Law – Increased Period of Restoration in accordance with CP1531 or equivalent. In the event the Property is legal non-conforming use, Administrative Agent, acting reasonably, may request zoning protection coverage as is available in the current insurance market where the Property is deemed to be legal but non-conforming;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) equipment breakdown to be a covered peril at the full policy limit or in amounts as shall be reasonably required by Administrative Agent on terms consistent with the commercial property insurance policy; if coverage is provided on a separate policy, both policies must include a Joint Loss Agreement provision;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) at all times during which structural construction, repairs or alterations are being made with respect to the Improvements, and only if the Property coverage form does not otherwise apply, builder's risk insurance in accordance with Section I. Property Insurance will be in force;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) no windstorm and hail exclusion, including with respects to Named Storm, on properties located, all anywhere in of Florida and/or 25 miles of the coastline of TX, LA, MS, AL, GA, NC & SC and hail; if coverage is excluded a separate policy covering the excluded exposure(s) is required at a limit acceptable to Administrative Agent or its representative;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) there shall be no exclusion for sinkholes in Borrower's insurance policy if the Property is located in any of the following States: Florida, Texas, Alabama, Missouri, Kentucky, Tennessee or Pennsylvania;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) there shall be no exclusion for mine subsidence if the Property is located in any of the following States: Illinois, Ohio, Kentucky or West Virginia; if coverage is excluded a separate policy covering the excluded exposure(s) is required at a limit acceptable to Administrative Agent or its representative; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) contain coverage for the perils of certified and non-certified acts of terrorism on terms (including amounts) consistent with those required hereunder at all times during the term of the Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. **CASUALTY INSURANCE** Upon request, and prior to the Closing Date, Borrower's insurance broker is to evidence, on Accord 25 or equivalent, the following coverage in place or to be in place at close of this transaction: (A) Commercial general liability insurance in accordance with ISO occurrence form CG0001 or its equivalent, with a minimum combined single limit of liability $1,000,000 per occurrence, a per project/location general aggregate limit of $2,000,000 and a products and completed

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&nbsp;&nbsp;&nbsp;&nbsp;78580509.10 ------

operations aggregate limit of $2,000,000 with additional limits provided by an Excess or Umbrella Liability policy per iv. below; (B) to continue at not less than the aforesaid limit until required to be changed by Administrative Agent 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 legal contracts including the indemnities contained in Section 12.13 of this Agreement to the extent the same is available; Administrative Agent must be named as an Additional Insured in accordance with Additional Insured ISO provision CG2026 or equivalent and contain a waiver of subrogation provision favoring BMO Harris Bank N.A and participating Lenders, waiving the insurer' or insurer's rights of subrogation. Such insurance shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) at all times during which structural construction, repairs or alterations are being made with respect to the Improvements, and only if the general liability coverage form as described above does not otherwise apply, owner's protective liability insurance covering claims not covered by or under the terms or provisions of a commercial general liability insurance policy will be maintained;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) liquor liability or "dramshop" insurance or other liability insurance required in connection with the sale of alcoholic beverages, if applicable, at a limit of liability acceptable to Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) contain a deductible no greater $25,000 or no greater than reasonably acceptable to BMO or its representatives and consistent with industry standards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) shall contain no change to the severability clause in ISO form CG0001 or equivalent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) insurer to provide 30 days written notice of cancellation or termination thereof, to Administrative Agent (with the exception of cancellation due to non-payment of premium for which 10 days statutory notice of cancellation may apply);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) motor vehicle liability coverage for all owned, if any, hired, and non-owned vehicles, written on ISO form CA0001 or equivalent, containing minimum limits per occurrence, of One Million and No/100 Dollars ($1,000,000);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) contain a deductible no greater $25,000 or no greater than reasonably acceptable to Administrative Agent or its representatives and consistent with industry standards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) insurer to provide 30 days written notice of cancellation or termination thereof, to Administrative Agent (with the exception of cancellation due to non-payment of premium for which 10 days statutory notice of cancellation may apply);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) workers' compensation, subject to the statutory limits of the state in which the Property is located, and employer's liability insurance at limits of $500,000 bodily injury each accident, $500,000 bodily injury by disease each employee and $500,000 bodily injury by disease policy limit or as reasonably required based on any work or operations on or about the Property or elsewhere, or in connection with the Property and its operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) contain a deductible no greater $25,000 or no greater than reasonably acceptable to BMO or its representatives and consistent with industry standards;

Schedule 5.1.1 - 3

&nbsp;&nbsp;&nbsp;&nbsp;78580509.10 ------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) insurer to provide 30 days written notice of cancellation or termination thereof, to Administrative Agent (with the exception of cancellation due to non-payment of premium for which 10 days statutory notice of cancellation may apply);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) (A) umbrella liability insurance on an occurrence for a combined limit of $5,000,000 per occurrence, $5,000,000 general aggregate limit including and a products and completed operations coverage at a per project/location aggregate limit of $5,000,000 or as required by Administrative Agent; (B) to continue at not less than the aforesaid limit until required to be changed by Administrative Agent by reason of changed economic conditions making such protection inadequate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) upon thirty (30) days' notice, such other reasonable property or casualty insurance and in such reasonable amounts as Administrative Agent from time to time may request against such other insurable hazards which at the time are commonly insured against for property and operations similar to the Property and operations located in or around the region in which the Property is located.

Schedule 5.1.1 - 4

&nbsp;&nbsp;&nbsp;&nbsp;78580509.10 ------

**SCHEDULE 6**

**<u>ALLOCATED LOAN AMOUNTS</u>**

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;**Borrower** | &nbsp;&nbsp;&nbsp;**Property** | **Allocated Loan Amount**  |
| &nbsp;&nbsp;&nbsp;MOB Cedar Park, L.L.C. | &nbsp;&nbsp;&nbsp;Baylor Scott & White Emergency | $7280000 |
| &nbsp;&nbsp;&nbsp;MOB 300 New Britain, L.L.C. | &nbsp;&nbsp;&nbsp;Starling Physicians – Kensington | $5395000 |
| &nbsp;&nbsp;&nbsp;MOB 1 New Britain, L.L.C. | &nbsp;&nbsp;&nbsp;Starling Physicians - Lake Street | $6695000 |
| &nbsp;&nbsp;&nbsp;MOB 1431 Houston, L.L.C. | &nbsp;&nbsp;&nbsp;Memorial Hermann Convenient Care Center | $22815000 |
| &nbsp;&nbsp;&nbsp;MOB Oklahoma City, L.L.C. | &nbsp;&nbsp;&nbsp;Surgical Hospital of OK | $10075000 |
| &nbsp;&nbsp;&nbsp;MOB 700 Chandler, L.L.C. | &nbsp;&nbsp;&nbsp;Ironwood Physicians 3 | $1950000 |
| &nbsp;&nbsp;&nbsp;MOB 3855 Gilbert, L.L.C. | &nbsp;&nbsp;&nbsp;Ironwood Physicians 5 - Gilbert | $2535000 |
| &nbsp;&nbsp;&nbsp;MOB 3686 Gilbert, L.L.C. | &nbsp;&nbsp;&nbsp;Ironwood Physicians 4 - Gilbert | $10790000 |
| &nbsp;&nbsp;&nbsp;MOB Peoria, L.L.C. | &nbsp;&nbsp;&nbsp;Honor Health | $6890000 |
| &nbsp;&nbsp;&nbsp;MOB Phoenix, L.L.C. | &nbsp;&nbsp;&nbsp;Banner Health | $8580000 |
| &nbsp;&nbsp;&nbsp;MOB Raleigh, L.L.C. | &nbsp;&nbsp;&nbsp;UNC Rex Cancer Center | $4745000 |
| &nbsp;&nbsp;&nbsp;MOB 9157 San Antonio, L.L.C. | &nbsp;&nbsp;&nbsp;Medical Center Ophthalmology Associates | $5005000 |
| &nbsp;&nbsp;&nbsp;MOB 5255 San Antonio, L.L.C. | &nbsp;&nbsp;&nbsp;San Antonio Specialty Surgery Center | $6370000 |
| &nbsp;&nbsp;&nbsp;MOB Kingwood, L.L.C. | &nbsp;&nbsp;&nbsp;Memorial Hermann Convenient Care Center | $14560000 |
| &nbsp;&nbsp;&nbsp;MOB Garden City, L.L.C. | &nbsp;&nbsp;&nbsp;NYU Langone Radiology | $8970000 |

---

Schedule 6 - 1

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**SCHEDULE 7**

**<u>REAs</u>**

**<u>Baylor Scott & White Emergency (Cedar Park, TX):</u>**

Declaration of Restrictions and Easements dated January 15, 2009, recorded in Document No. 2009003900, Official Public Records of Williamson County, Texas and that certain Restrictive Covenant, Development and Operating Agreement dated January 15, 2009, recorded in Document No. 2009003901, Official Public Records of Williamson County, Texas.

**<u>Memorial Hermann (Houston, TX):</u>**

Declaration of Reciprocal Shared Access Easement, recorded on January 6, 2016 under Clerk's File No. RP-2016-5313, Official Public Records of Harris County, Texas.

Declaration of Reciprocal Easements, Rights, Covenants and Restrictions, recorded on February 27, 2017 under Clerk's file No. RP-2017-80837, Official Public Records of Harris County, Texas.

**<u>Surgical Hospital (Oklahoma City, OK):</u>**

Terms and conditions of Easement Agreement dated December 21, 1995, by and between Surgical Hospital of South Oklahoma City, L.L.C., and Steve M. Howard and Delbert E. Warren, recorded in Book 6835, Page 502.

**<u>San Antonio Specialty (San Antonio, TX):</u>**

Roadway Construction and Maintenance Agreement recorded in Volume 11198, Page 2274, Official Public Records of Real Property of Bexar County, Texas, and that Assignment and Assumption of Agreement recorded in Volume 13092, Page 2261, Real Property Records, Bexar County, Texas.

Declaration of Drainage Easements, Covenants and Conditions recorded in Volume 11198, Page 2290, Official Public Records of Real Property of Bexar County, Texas, and Assignment and Assumption of Easement recorded in Volume 13092, Page 2261, Real Property Records, Bexar County, Texas.

**<u>Memorial Hermann (Kingwood, TX):</u>**

Declaration of Restrictive Covenants and Reservation of Easement, recorded on October 26, 2018 in Clerk's File No. RP-2018-489889, Official Public Records of Harris County, Texas.

Declaration of Covenants, Conditions, Restrictions for Commerce Lakes recorded in OR Book 44060, Page 1397.

**<u>Ironwood Physicians 3 700 West Warner Rd., Chandler, AZ</u>**

 Development Agreement with Easements, Conditions and Restrictions Recording No: Document No 91-141119, as amended.

 Reciprocal Easement Agreement - Recording No: 92-019761. Shared drive easement.

 Declaration of Covenants and Restrictions - Document No 96-0617723.

 Declaration of CCRs for Suntech Business Park **-** 84-254785.

Schedule 7 - 1

78580509.10 ------

**<u>Ironwood Physicians 5 – Gilbert 3855 South Val Vista Dr., Gilbert, AZ</u>**

 Roadway & Access Easement - 2009-129241.

 Amended and Restated Condominium Declaration for Mercy Point Medical Center - 2007-1019271, as amended.

**<u>Ironwood Physicians 4 – Gilbert 3686 South Rome St., Gilbert, AZ</u>**

 Declaration of Establishment of Covenants, Conditions and Restrictions and Grant of Reciprocal Easements **-** 2009-0169276. Reciprocal easements, assessments, use restrictions.

**<u>Honor Health 10230 W. Happy Valley Pkwy., Peoria, AZ</u>**

 Cross Access, Parking and Easement Agreement – 20180110869.

**<u>Banner Health 4375 E. Irma Ln., Phoenix, AZ</u>**

 "Master Declaration" - Declaration of Covenants, Conditions, Restrictions and Easements for Desert Ridge, Phoenix, Arizona - 1994-0106341, as amended.

 "Subsidiary Declaration" / "Core Declaration" - Declaration of Covenants, Conditions, Restrictions and Easements for Desert Ridge Commercial Core - 2000-0555236, as amended.

 Restrictive Covenant - 2004-1399937.

<u></u> "Project Declaration" - Declaration of Easements, Covenants, Conditions and Restrictions - 2008-0075379, as amended.

Schedule 7 - 2

78580509.10 ------

**SCHEDULE 8**

**<u>LIST OF INDIVIDUAL PROPERTIES AND OWNERS</u>**

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| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Borrower** | &nbsp;&nbsp;&nbsp;**Property** | **Address** | **City** | **State** |
| &nbsp;&nbsp;&nbsp;MOB Cedar Park, L.L.C.<br>| &nbsp;&nbsp;&nbsp;Baylor Scott & White Emergency | 900 East Whitestone Blvd. | Cedar Park | TX |
| &nbsp;&nbsp;&nbsp;MOB 300 New Britain, L.L.C.<br>| &nbsp;&nbsp;&nbsp;Starling Physicians - Kensington | 300 Kensington Ave. | New Britain | CT |
| &nbsp;&nbsp;&nbsp;MOB 1 New Britain, L.L.C.<br>| &nbsp;&nbsp;&nbsp;Staring Physicians - Lake Street | One Lake St | New Britain | CT |
| &nbsp;&nbsp;&nbsp;MOB 1431 Houston, L.L.C.<br>| &nbsp;&nbsp;&nbsp;Memorial Hermann Convenient Care Center | 1431 Studemont St. | Houston | TX |
| &nbsp;&nbsp;&nbsp;MOB Oklahoma City, L.L.C.<br>| &nbsp;&nbsp;&nbsp;Surgical Hospital of OK | 100 S.E. 59th St. | Oklahoma City | OK |
| &nbsp;&nbsp;&nbsp;MOB 700 Chandler, L.L.C.<br>| &nbsp;&nbsp;&nbsp;Ironwood Physicians 3 | 700 West Warner Rd. | Chandler | AZ |
| &nbsp;&nbsp;&nbsp;MOB 3855 Gilbert, L.L.C.<br>| &nbsp;&nbsp;&nbsp;Ironwood Physicians 5 - Gilbert | 3855 South Val Vista Dr. | Gilbert | AZ |
| &nbsp;&nbsp;&nbsp;MOB 3686 Gilbert, L.L.C. | &nbsp;&nbsp;&nbsp;Ironwood Physicians 4 - Gilbert | 3686 South Rome St. | Gilbert | AZ |
| &nbsp;&nbsp;&nbsp;MOB Peoria, L.L.C. | &nbsp;&nbsp;&nbsp;Honor Health | 10230 W Happy Valley Pkwy. | Peoria | AZ |
| &nbsp;&nbsp;&nbsp;MOB Phoenix, L.L.C.<br>| &nbsp;&nbsp;&nbsp;Banner Health | 4375 E. Irma Ln | Phoenix | AZ |
| &nbsp;&nbsp;&nbsp;MOB Raleigh, L.L.C.<br>| &nbsp;&nbsp;&nbsp;UNC Rex Cancer Center | 117 Sunnybrook Rd. | Raleigh | NC |
| &nbsp;&nbsp;&nbsp;MOB 9157 San Antonio, L.L.C. | &nbsp;&nbsp;&nbsp;Medical Center Ophthalmology Associates | 9157 Huebner Rd. | San Antonio | TX |
| &nbsp;&nbsp;&nbsp;MOB 5255 San Antonio, L.L.C.<br>| &nbsp;&nbsp;&nbsp;San Antonio Specialty Surgery Center | 5255 Prue Rd. | San Antonio | TX |
| &nbsp;&nbsp;&nbsp;MOB Kingwood, L.L.C. | &nbsp;&nbsp;&nbsp;Memorial Hermann Convenient Care Center | 4533 Kingwood Dr. | Kingwood | TX |
| &nbsp;&nbsp;&nbsp;MOB Garden City, L.L.C. | &nbsp;&nbsp;&nbsp;NYU Langone Radiology | 224 7th St. | Garden City | NY |

---

Schedule 8 - 1

78580509.10 ------

**SCHEDULE 9**

**<u>Example of Calculation of Weighted Average Lease Term</u>**

![img106812731_3.gif](img106812731_3.gif)

Schedule 9 - 1

&nbsp;&nbsp;&nbsp;&nbsp;DOCPROPERTY "CUS_DocIDChunk0" 78580509.10

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## Exhibit 10.20

**Exhibit 10.20**

**First AMENDMENT TO <br><u>LOAN AGREEMENT</u>**

THIS FIRST AMENDMENT TO LOAN AGREEMENT (as amended, restated, replaced, supplemented or otherwise modified from time to time, this "**Amendment**"), dated as of August 1, 2022 (the "**Effective Date**"), between BMO HARRIS BANK N.A., a national banking association, having an address at 320 South Canal Street, 15th Floor, Chicago, Illinois 60606, as Administrative Agent and the Lender, and MOB Cedar Park, L.L.C., MOB 5255 San Antonio, L.L.C., MOB 9157 San Antonio, L.L.C., MOB Raleigh, L.L.C., MOB 1431 Houston, L.L.C., MOB 1 New Britain, L.L.C., MOB 300 New Britain, L.L.C., MOB Oklahoma City, L.L.C., MOB Peoria, L.L.C., MOB Phoenix, L.L.C., MOB 3855 Gilbert, L.L.C., MOB 700 Chandler, L.L.C., MOB 3686 Gilbert, L.L.C., MOB Kingwood, L.L.C., MOB Garden City, L.L.C., and IPCAAF MOB Portfolio II, L.L.C., each a Delaware limited liability company (individually or collectively, as the context shall require, "**Borrower**" and collectively, the "**Borrowers**"), having an address at 2901 Butterfield Road, Oak Brook, Illinois 60523.

**<u>R E C I T A L S</u>:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.Borrowers, Administrative Agent and Lender entered into a Loan Agreement dated as of September 30, 2021 (as amended from time to time, the "**Loan Agreement**"), whereby Lender has made a loan to Borrower (the "**Loan**") in the principal amount of up to $122,655,000.00 subject to and in accordance with the terms and conditions set forth in the Loan Agreement. The Loan is evidenced by the Promissory Note dated September 30, 2021 (as amended from time to time, the "**Note**") made by Borrowers payable to BMO Harris Bank N.A., the repayment of which is secured by, among other things, certain mortgages, deeds of trust and deeds to secure debt (collectively, the "**Security Instrument**"), each dated September 30, 2021. All capitalized terms not otherwise defined herein shall have the meanings set forth in the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.Borrowers, Administrative Agent and Lender have agreed to amend the Loan Agreement as more particularly set forth herein.

**NOW**, **THEREFORE**, in consideration of the foregoing Recitals, the mutual covenants contained in this Amendment, and for good and valuable consideration, the receipt and sufficiency of which hereby are acknowledged, the parties hereto agree as follows:

1.**<u>Incorporation of Recitals</u>**. The recitals set forth above are hereby incorporated herein by reference as if the same were fully set forth herein.

2.**<u>Representations</u>**. Borrowers represent and warrant to Administrative Agent and Lender that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)No Event of Default has occurred under the Loan Agreement or the Loan Documents, and upon the execution and delivery of this Amendment, no event or condition will exist which, with the giving of notice or the passage of time, or both, would give rise to an Event of Default under the Loan Agreement or Loan Documents.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All of the representations and warranties of Borrower in the Loan Agreement and the Loan Documents are true and complete on the date hereof in all material respects with the same force and effect as if made on such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Borrower has no offsets or defenses to any amounts currently due under the Note or to any current obligations under the Loan Agreement or any other Loan Documents, and the Loan Agreement and Loan Documents are all in full force and effect. Borrower currently has no defenses, claims or setoffs to the enforcement by Administrative Agent and Lender of the Loan Agreement and Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Borrower has the full right, power and authority to execute, deliver and carry out the terms and provisions of this Amendment and the documents and instruments to be executed and delivered by Borrower pursuant to this Amendment. The execution, delivery and performance of this Amendment and all of the documents and instruments to be executed and delivered pursuant hereto have received all necessary approvals, if any, and do not contravene any law or any contractual restrictions binding on Borrower, or constitute a default or create a lien under (i) the limited liability company agreement of Borrower, or (ii) any note, instrument, lease, indenture, mortgage, agreement, document or other obligation of or binding upon Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) This Amendment and the documents and instruments executed and delivered pursuant hereto by Borrower constitute the legal, valid and binding obligation of Borrower, enforceable against Borrower in accordance with their respective terms, except only as enforceability may be subject to applicable bankruptcy, reorganization, moratorium and similar laws affecting the rights of creditors generally.

3.**<u>Amendments to Loan Agreement</u>**. As of the Effective Date, the Loan Agreement is hereby amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) The following terms are hereby deleted from Section 1.1 of the Loan Agreement: "Adjusted LIBOR Rate", "Early Opt-in Election", "LIBOR Index Rate", "LIBOR Rate", "LIBOR Rate Loan", "London Banking Day", "Reserve Percentage", "Term SOFR Event", and "Term SOFR Notice".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) The following terms are hereby added to Section 1.1 of the Loan Agreement, or if applicable, amended and restated as follows:

"<u>Applicable Margin</u>" means, as of any date of determination, if the Loan is then (x) a SOFR Loan, two and ten one hundredths percent (2.10%), or (y) an Alternative Base Rate Loan, one and ten one hundredths percent (1.10%).

"<u>Available Tenor</u>" means as of any date of determination and with respect to the then-current Benchmark, as applicable, (x) if such Benchmark is a term rate, any tenor for such Benchmark (or component thereof) that is or may be used for determining the length of an interest period pursuant to this Agreement or (y) otherwise, any payment period for interest calculated with reference to such Benchmark (or component thereof) that is or may be used

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for determining any frequency of making payments of interest calculated with reference to such Benchmark, in each case, as of such date and not including, for the avoidance of doubt, any tenor for such Benchmark that is then-removed from the definition of "Interest Period" pursuant to Section 2.2.6.

"<u>Benchmark</u>" means initially, the Term SOFR Rate; provided that if a Benchmark Transition Event has occurred with respect to the Term SOFR Rate or the then-current Benchmark, then "Benchmark" means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to <u>Section 2.2.6</u>.

"<u>Benchmark Replacement</u>" means either of the following to the extent selected by Administrative Agent in its sole discretion,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Daily Simple SOFR; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the sum of: (i) the alternate benchmark rate that has been selected by the Administrative Agent giving due consideration to (A) any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Body or (B) any evolving or then-prevailing market convention for determining a benchmark rate as a replacement to the then-current Benchmark for Dollar-denominated syndicated credit facilities and (ii) the related Benchmark Replacement Adjustment.

If the Benchmark Replacement as determined pursuant to clause (a) or (b) above would be less than the Floor, the Benchmark Replacement will be deemed to be the Floor for the purposes of this Agreement and the other Loan Documents.

"<u>Benchmark Replacement Adjustment</u>" means with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Administrative Agent giving due consideration to (a) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body or (b) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for Dollar-denominated syndicated credit facilities.

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"<u>Benchmark Replacement Conforming Changes" or "Conforming Changes</u>" means with respect to either the use or administration of Term SOFR or the use, administration, adoption or implementation of any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of "Alternative Base Rate," the definition of "Business Day," the definition of "Interest Period," the definition of "U.S. Government Securities Business Day", the timing and frequency of determining rates and making payments of interest, the timing of borrowing requests or prepayment, conversion or continuation notices, the applicability and length of lookback periods, the applicability of breakage provisions, and other technical, administrative or operational matters), made known by the Administrative Agent, to the Borrowers, in writing if practicable, that the Administrative Agent decides, in the exercise of its commercially reasonable discretion, is appropriate to reflect the adoption and implementation of any such rate or to permit the use and administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent reasonably decides that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent reasonably determines that no market practice for the administration of any such rate exists, in such other manner of administration as the Administrative Agent reasonably decides is necessary in connection with the administration of this Agreement and the other Loan Documents).

"<u>Benchmark Replacement Date</u>" means the earliest to occur of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in the case of clause (a) or (b) of the definition of "Benchmark Transition Event", the later of (i) the date of the public statement or publication of information referenced therein and (ii) the date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases to provide all Available Tenors of such Benchmark (or such component thereof); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of clause (c) of the definition of "Benchmark Transition Event", the first date on which such Benchmark (or the published component used in the calculation thereof) has been determined and announced by or on behalf of the administrator of such Benchmark (or such component thereof) or the regulatory supervisor for the administrator of such Benchmark (or such component thereof) to be no longer representative or not to comply with the International Organization of Securities Commissions (IOSCO) Principles for Financial Benchmarks; provided, that such non-representativeness or non-compliance will be determined by reference to the most recent statement or publication referenced in such clause (c) and even if any Available Tenor of such Benchmark (or such component thereof) continues to be provided on such date.

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For the avoidance of doubt, the "Benchmark Replacement Date" will be deemed to have occurred in the case of clause (a) or (b) with respect to any Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published component used in the calculation thereof).

"<u>Benchmark Transition Event"</u> means the occurrence of one or more of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that such administrator has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof), permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof), the Federal Reserve Board, the Federal Reserve Bank of New York, an insolvency official with jurisdiction over the administrator for such Benchmark (or such component), a resolution authority with jurisdiction over the administrator for such Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark (or such component), which states that the administrator of such Benchmark (or such component) has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof) permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used in the calculation thereof) or the regulatory supervisor for the administrator of such Benchmark (or such component thereof) announcing that all Available Tenors of such Benchmark (or such component thereof) are no longer, or as of a specified future date will no longer be, representative or do not, or as a specified future date will not, comply with the International Organization of Securities Commissions (IOSCO) Principles for Financial Benchmarks.

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For the avoidance of doubt, a "Benchmark Transition Event" will be deemed to have occurred with respect to any Benchmark if a public statement or publication of information set forth above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof).

"<u>Benchmark Unavailability Period</u>" means the period (if any) (a) beginning at the time that a Benchmark Replacement Date has occurred if, at such time, no Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with Section 2.2.6 and (b) ending at the time that a Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with Section 2.2.6.

"<u>FRB</u>" means **t**he Board of Governors of the Federal Reserve System of the United States.

"<u>Interest Rate</u>" means, subject to the provisions of Section 2.2.6, a variable rate per annum equal to the sum of (a) the Term SOFR Rate, or the Alternative Base Rate, as the case may be plus (b) the Applicable Margin, increasing or decreasing with each increase or decrease in the Term SOFR Rate, or the Alternative Base Rate, as the case may be (as and when the Term SOFR Rate or the Alternative Base Rate change as described herein).

"<u>NYFRB</u>" means the Federal Reserve Bank of New York.

"<u>Periodic Term SOFR Determination Day</u>" has the meaning specified in the definition of "Term SOFR Rate".

"<u>Relevant Governmental Body</u>" means the FRB and/or the NYFRB, or a committee officially endorsed or convened by the FRB and/or the NYFRB, or any successor thereto.

"<u>SOFR</u>" means a rate equal to the secured overnight financing rate as administered by the NYFRB or a successor administrator of the secured overnight financing rate.

"<u>SOFR Loan</u>" means a Loan bearing interest based on the Term SOFR Rate.

"<u>Term SOFR</u>" or "<u>Term SOFR Rate</u>" means the one month forward-looking rate per annum based on SOFR published by the Term SOFR Administrator two (2) U.S. Government Securities Business Days prior to the first day of such Interest Period (such day, the "Periodic Term SOFR Determination Day"); provided, however, that if as of 5:00 p.m. (New York City time) on any Periodic Term SOFR Determination Day the Term SOFR Rate has not

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been published by the Term SOFR Administrator and a Benchmark Replacement Date with respect to the Term SOFR Rate has not occurred, then the Term SOFR Rate will be the Term SOFR Rate as published by the Term SOFR Administrator on the first preceding U.S. Government Securities Business Day for which such Term SOFR Rate was published by the Term SOFR Administrator so long as such first preceding U.S. Government Securities Business Day is not more than three (3) U.S. Government Securities Business Days prior to such Periodic Term SOFR Determination Day, provided that, if the Term SOFR Rate determined as provided shall ever be less than the Floor, then the Term SOFR Rate shall be deemed to be the Floor.

"<u>Term SOFR Administrator</u>" means CME Group Benchmark Administration Limited (CBA) (or a successor administrator of the Term SOFR Rate selected by the Administrative Agent in its reasonable discretion).

"<u>Unadjusted Benchmark Replacement</u>" means the applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment.

"<u>U.S. Government Securities Business Day</u>" means any day except for (i) a Saturday, (ii) a Sunday or (iii) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) The following is hereby added as Section 1.5 of the Loan Agreement:

"Section 1.5. <u>Interest Rates</u>. The Administrative Agent does not warrant or accept responsibility for, and shall not have any liability with respect to (a) the continuation of, administration of, submission of, calculation of or any other matter related to the Benchmark, any component definition thereof or rates referred to in the definition thereof, or any alternative, successor or replacement rate thereto (including any Benchmark Replacement), including whether the composition or characteristics of any such alternative, successor or replacement rate (including any Benchmark Replacement) will be similar to, or produce the same value or economic equivalence of, or have the same volume or liquidity as, the Benchmark or any other Benchmark prior to its discontinuance or unavailability, or (b) the effect, implementation or composition of any Conforming Changes. The Administrative Agent and its affiliates or other related entities may engage in transactions that affect the calculation of the Benchmark, any alternative, successor or replacement rate (including any Benchmark Replacement) and/or any relevant adjustments thereto, in each case, in a manner adverse to the Borrower. The Administrative Agent may select information sources or services in its reasonable discretion to ascertain the Benchmark or any other Benchmark, in each case pursuant to the terms of this Agreement, and shall have no liability to the Borrower, any Lender or any other person or entity for damages of any kind, including direct or indirect, special, punitive, incidental or consequential damages, costs, losses or expenses (whether in tort,

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contract or otherwise and whether at law or in equity), for any error or calculation of any such rate (or component thereof) provided by any such information source or service."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) The following is hereby added to the end of Section 2.2.3 of the Loan Agreement:

"Administrative Agent shall determine each interest rate applicable to the Loans hereunder, and its determination thereof shall be conclusive and binding except in the case of manifest error. In connection with the use or administration of the Term SOFR Rate, the Administrative Agent will have the right to make Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Loan Document. Administrative Agent will promptly notify the Borrower and the Lenders of the effectiveness of any Conforming Changes in connection with the use or administration of Term SOFR."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) In Section 2.2.4 of the Loan Agreement, all references to "LIBOR Rate Loan" are hereby changed to "SOFR Loan".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) Section 2.2.5 is hereby replaced with the following:

"2.2.5. <u>Inability to Determine Rates</u>. If on or prior to the first day of any Interest Period at any time during which the Loan is a SOFR Loan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Administrative Agent reasonably determines (which determination shall be conclusive and binding on Borrower) that the Term SOFR Rate cannot be determined pursuant to the definition thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Administrative Agent reasonably determines (which determination shall be conclusive and binding on Borrower) that the introduction of or any change in or in the interpretation of any law, rule, regulation or guideline (whether or not having the force of law), makes it unlawful, or any central bank or other Governmental Authority asserts that it is unlawful, for Lenders to continue or maintain the Loan as a SOFR Loan, or to convert the Loan into a SOFR Loan of a certain duration; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Required Lenders advise Administrative Agent that SOFR as determined by Administrative Agent will not adequately and fairly reflect the cost to such Lenders of funding their SOFR Loans for such Interest Period,

then Administrative Agent shall forthwith give written notice thereof to Borrower and the Lenders, whereupon until Administrative Agent notifies Borrower that the circumstances giving rise to such suspension no longer exist, the obligations of the Lenders to make SOFR Loans shall be suspended, and the Loan shall automatically convert into an Alternative Base Rate Loan as of the date set forth by Administrative Agent."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) Section 2.2.6 of the Loan Agreement is hereby replaced with the following:

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"2.2.6. <u>Effect of Benchmark Transition Event</u>. Notwithstanding anything to the contrary herein or in any other Loan Document (and any interest rate swap agreement shall be deemed not to be a "Loan Document" for the purposes of this <u>Section 2.2.6</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Benchmark Replacement</u>. Notwithstanding anything to the contrary herein or in any other Loan Document, if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred prior any setting of the then-current Benchmark, then (x) if a Benchmark Replacement is determined in accordance with clause (1) of the definition of "Benchmark Replacement" for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Loan Document in respect of such Benchmark setting and subsequent Benchmark settings without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document and (y) if a Benchmark Replacement is determined in accordance with clause (2) of the definition of "Benchmark Replacement" for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Loan Document in respect of any Benchmark setting at or after 5:00 p.m. (New York City time) on the fifth (5th) Business Day after the date notice of such Benchmark Replacement is provided to the Lenders without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document so long as the Administrative Agent has not received, by such time, written notice of objection to such Benchmark Replacement from Lenders comprising the Required Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Benchmark Replacement Conforming Changes</u>*.* In connection with the use, administration, adoption or implementation of a Benchmark Replacement, the Administrative Agent will have the right, in the exercise of its commercially reasonable discretion, to make Conforming Changes from time to time, with written notice to the Borrowers if practicable, and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Notice Standards for Decisions and Determination</u>*.* The Administrative Agent will promptly notify in writing if practicable the Borrower and the Lenders of (i) the implementation of any Benchmark Replacement and (ii) the effectiveness of any Conforming Changes in connection with the use, administration, adoption or implementation of a Benchmark Replacement. The Administrative Agent will promptly notify the Borrower of the removal or reinstatement of any tenor of a Benchmark pursuant to <u>Section 2.2.6</u>. Any determination, decision or election that may be made by the Administrative Agent or, if applicable, any Lender (or group of Lenders) pursuant to this <u>Section 2.2.6</u>, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action or any selection, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and

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without consent from any other party to this Agreement or any other Loan Document, except, in each case, as expressly required pursuant to this <u>Section 2.2.6</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Unavailability of Tenor of Benchmark.</u> Notwithstanding anything to the contrary herein or in any other Loan Document, at any time (including in connection with the implementation of a Benchmark Replacement), (i) if the then-current Benchmark is a term rate (including the Term SOFR Rate) and either (A) any tenor for such Benchmark is not displayed on a screen or other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion or (B) the administration of such Benchmark or the regulatory supervisor for the administrator of such Benchmark has provided a public statement or publication of information announcing that any tenor for such Benchmark is not or will not be representative or in compliance with or aligned with the International Organization of Securities Commissions (IOSCO) Principles for Financial Benchmarks, then the Administrative Agent may modify the definition of "Interest Period" (or any similar or analogous definition) for any Benchmark settings at or after such time to remove such unavailable, non-representative, non-compliant or non-aligned tenor and (ii) if a tenor that was removed pursuant to clause (i) above either (A) is subsequently displayed on a screen or information service for a Benchmark (including a Benchmark Replacement) or (B) is not or will not be representative or in compliance with or aligned with the International Organization of Securities Commissions (IOSCO) Principles for Financial Benchmarks for a Benchmark (including a Benchmark Replacement), then the Administrative Agent may modify the definition of "Interest Period" (or any similar or analogous definition) for all Benchmark settings at or after such time to reinstate such previously removed tenor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)<u>Benchmark Unavailability Period</u>. Upon the Borrower's receipt of notice of the commencement of a Benchmark Unavailability Period, the Borrower may revoke any pending request for a SOFR borrowing of, conversion to or continuation of SOFR Loans to be made, converted or continued during any Benchmark Unavailability Period and, failing that, the Borrower will be deemed to have converted any such request into a request for a borrowing of or conversion to Alternative Base Rate Loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H) In Section 2.3.7 of the Loan Agreement, all references to "LIBOR Rate Loan" are hereby changed to "SOFR Loan", all references to "LIBOR Rate" are hereby changed to "Term SOFR Rate", and all references to "LIBOR Breakage Fee" are hereby changed to "Breakage Fee". All references in the Loan Agreement to "LIBOR Breakage Fee" or "LIBOR Breakage Costs" shall mean the "Breakage Fees".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) In Section 2.3.8 (a)(i) of the Loan Agreement, the phrase "(except any reserve requirement reflected in the Adjusted LIBOR Rate)" is hereby deleted and a period (".") is added after "any Lender").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(J) In Section 2.6(c) of the Loan Agreement, the reference to "LIBOR Rate Loan" is hereby changed to "SOFR Loan".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(K) In Section 2.7 of the Loan Agreement, all references to "LIBOR Rate Loans" are hereby changed to "SOFR Loans".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(L) In Section 2.10(b)(ii) of the Loan Agreement, the reference to "LIBOR Rate" is hereby changed to "Term SOFR Rate".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(M) Section 12.6 of the Loan Agreement is hereby amended to change the notice address for Lender to the following:

If to Administrative Agent: BMO Harris Bank N.A.

320 South Canal Street, 15<sup>th</sup> Floor

Chicago, Illinois 60603<br> Attention: Dayle Rains

with a copy to: BMO Harris Bank N.A.

320 South Canal Street, 15<sup>th</sup> Floor

Chicago, Illinois 60606

Attention: Portfolio Manager/

Inland MOB Portfolio

with a copy to: Polsinelli<br> 150 N. Riverside Plaza, Suite 3000<br> Chicago, Illinois 60606<br> Attention: Douglas L. Noren, Esq.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(N) Any other references in the Loan Agreement and other Loan Documents to (i) "LIBOR" or "LIBOR Rate" shall mean the "Term SOFR Rate", and (ii) "LIBOR Rate Loans" shall mean "SOFR Loans".

4.**<u>Requirements</u>**. The effectiveness of this Amendment shall be subject to Administrative Agent's receipt, review, approval and/or confirmation of the following on the date hereof, at Borrower's cost, each in form and content satisfactory to Administrative Agent in its reasonable discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Reaffirmation</u>. The Reaffirmation, executed by Guarantors, in the form attached hereto as **Exhibit A.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Rate Management Agreements.</u> Any swap agreement and Interest Rate Cap Agreement entered into by Borrower or Holdings Borrower pursuant to Section 2.10 of the Loan Agreement shall be amended to take into account that the Interest Rate is based on the Term SOFR Rate pursuant this Amendment, which amendment shall be in form reasonably satisfactory to Administrative Agent, and such Rate Management Agreements shall otherwise continue to satisfy the requirements of Section 2.10 of the Loan Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Fees and Costs</u>. Borrower shall pay all costs and expenses of any kind or nature of Administrative Agent related to this Amendment and related documents, including, without limitation, Administrative Agent's attorneys' fees and out-of-pocket costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Authority</u>. Borrower shall deliver or cause to be delivered to Administrative Agent such organizational and authority documents as reasonably required by Administrative Agent in connection with this Amendment, including, without limitation, certified copies of its formation documents (or a certificate of no change from the formation documents delivered to Administrative Agent as of the Closing Date), good standing certificates, resolutions, incumbency certificates and officer's certificates, each in form and substance reasonably satisfactory to Administrative Agent.

5.**<u>Ratification</u>**. Except as amended and modified herein, the Loan Documents remain unmodified and in full force and effect and are hereby ratified and confirmed. Administrative Agent and Lender shall continue to have all of the rights and remedies as provided in the Loan Documents, as amended and modified hereby or pursuant hereto, and all of Administrative Agent's and Lender's liens and security interests shall continue in its collateral, whether now existing or acquired or arising hereafter. Upon the effectiveness of this Amendment, each reference in the Loan Agreement to "the Agreement," "hereunder," "herein," "hereof," or words of like import referring to the Loan Agreement shall mean and be a reference to the Loan Agreement as amended and modified hereby, and all references in the other Loan Documents to the Loan Agreement shall mean such document as amended hereby or pursuant hereto. THE PARTIES HERETO HAVE ENTERED INTO THIS AMENDMENT SOLELY TO AMEND THE TERMS OF THE LOAN AGREEMENT. THE PARTIES DO NOT INTEND THIS AMENDMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY TO BE, AND THIS AMENDMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL NOT BE CONSTRUED TO BE, A NOVATION OF ANY OF THE OBLIGATIONS OWING BY THE BORROWERS OR GUARANTOR UNDER OR IN CONNECTION WITH THE LOAN AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS.

6.**<u>No Waiver</u>**. Borrower's execution, delivery and performance of this Amendment and any other documents in connection with this Amendment shall not establish a custom or course of dealing or waive, limit or condition the rights and remedies of Administrative Agent and Lender under the Loan Agreement or any other Loan Document and applicable law, all of which rights and remedies Administrative Agent and Lender expressly reserve.

7.**<u>No Joint Venture</u>**. Borrower hereby acknowledges, agrees and confirms that notwithstanding any other provision of this Amendment or any other Loan Document, neither Administrative Agent nor Lender is a partner, joint venturer, alter-ego, manager, controlling person or other business associate or participant of any kind of Borrower, and neither Administrative Agent nor Lender intends to ever assume any such status.

8.**<u>Waiver and Release of Claims</u>**. Borrower acknowledges and agrees that Borrower does not have any offsets, defenses, claims or counterclaims against Administrative Agent or Lenders or their past and present officers, directors, managers, employees, partners, agents, shareholders, members, trustees, predecessors, successors, and assigns (the "**Released Parties**") with respect to the Loan or the Loan Documents as of the date hereof, and to the extent Borrower has any such

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claims, Borrower hereby voluntarily and knowingly forever releases, discharges, waives and relinquishes any and all claims, demands, causes of action of every kind and nature whatsoever, whether in law, in equity, known or unknown, against the Released Parties existing on or before the date of this Amendment that relate to, arise out of or otherwise are in connection with: the Loan, the Loan Documents or transactions contemplated thereby or any actions or omissions in connection therewith.

9.**<u>Lien Status</u>**. None of this Amendment, nor any other documents or instruments delivered in connection herewith, constitutes the creation of a new loan or the extinguishment of the debt evidenced by the Note, nor will they in any way affect or impair the lien of the Security Instrument or the other Loan Documents, which Borrower hereby acknowledges to be a valid and existing first priority lien on the Property and on any other collateral described therein. Borrower agrees that the lien of the Security Instrument continues to be in full force and effect, unaffected and unimpaired by this Amendment, and that said lien shall so continue as a first priority lien until the Debt is fully discharged.

10.**<u>Miscellaneous</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)This Amendment shall be governed by, and shall be construed and enforced in accordance with, the laws of the State of Illinois, without regard to conflicts of laws principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)If any provision of this Amendment is adjudicated to be invalid, illegal or unenforceable, in whole or in part, it will be deemed omitted to that extent and all other provisions of this Amendment will remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)This Amendment shall be binding upon and inure to the benefit of the parties and their respective legal representatives, successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)This Amendment may be executed in one or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. Signature pages may be detached from such counterparts and reattached to form one original document. Delivery of an executed counterpart of a signature page of this Amendment by telecopier or other electronic transmission (which shall include *"PDF"* or *"TIFF"* format) shall be as effective as delivery of a manually executed counterpart of this Amendment.

**[SIGNATURES ON FOLLOWING PAGE]**

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**IN WITNESS WHEREOF**, the parties hereto have executed this Amendment as of the date first above written.

**<u>BORROWERS</u>:**

MOB CEDAR PARK, L.L.C.,

MOB 5255 SAN ANTONIO, L.L.C.,

MOB 9157 SAN ANTONIO, L.L.C.,

MOB RALEIGH, L.L.C.,

MOB 1431 HOUSTON, L.L.C.,

MOB 1 NEW BRITAIN, L.L.C.,

MOB 300 NEW BRITAIN, L.L.C.,

MOB OKLAHOMA CITY, L.L.C.,

MOB PEORIA, L.L.C.,

MOB PHOENIX, L.L.C.,

MOB 3855 GILBERT, L.L.C.,

MOB 700 CHANDLER, L.L.C.,

MOB 3686 GILBERT, L.L.C.,

MOB KINGWOOD, L.L.C.,

MOB GARDEN CITY, L.L.C., <br>each a Delaware limited liability company

By: IPCAAF MOB Portfolio II, L.L.C., <br>a Delaware limited liability company, its sole member

By: <u>/s/ Joseph E. Binder</u> 

Name: <u>Joseph E. Binder</u>

Title: <u>Executive Vice President</u> 

IPCAAF MOB PORTFOLIO II, L.L.C., a Delaware limited liability company

By: /s/ Joseph E. Binder

Name: Joseph E. Binder

Title: Executive Vice President

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**<u>ADMINISTRATIVE AGENT and LENDER</u>**:

**BMO HARRIS BANK N.A.**,

a national banking association

By: <u>/s/ Kyle Dickelman</u> <br>Name: <u>Kyle Dickelman</u> <br>Title: <u>Vice President</u> 

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**<u>EXHIBIT A</u>**

**<u>REAFFIRMATION OF GUARANTY AGREEMENTS</u>**

Reference is hereby made to (i) that certain Loan Agreement dated as of September 30, 2021, as amended by First Amendment to Loan Agreement, dated as of the date hereof (the "**First Amendment**"), between MOB Cedar Park, L.L.C., MOB 5255 San Antonio, L.L.C., MOB 9157 San Antonio, L.L.C., MOB Raleigh, L.L.C., MOB 1431 Houston, L.L.C., MOB 1 New Britain, L.L.C., MOB 300 New Britain, L.L.C., MOB Oklahoma City, L.L.C., MOB Peoria, L.L.C., MOB Phoenix, L.L.C., MOB 3855 Gilbert, L.L.C., MOB 700 Chandler, L.L.C., MOB 3686 Gilbert, L.L.C., MOB Kingwood, L.L.C., MOB Garden City, L.L.C., and IPCAAF MOB Portfolio II, L.L.C., each a Delaware limited liability company (collectively, the "**Borrowers**"), and BMO Harris Bank N.A., as Administrative Agent and a Lender (as amended from time to time, the "**Loan Agreement**"), and (ii) the following documents: the Guaranty and the Environmental Indemnity (as each such term is defined in the Loan Agreement, and collectively, the "**Guaranty Agreements**").

The undersigned hereby consents to the First Amendment and hereby acknowledges and agrees that the Guaranty Agreements to which it is a party are each ratified and confirmed, shall continue in full force and effect and that the undersigned, as of the date hereof, has no claims, defenses, off-sets or counterclaims to or against the enforcement of such agreements in accordance with their respective terms by Administrative Agent and Lenders.

(Signatures on Following Page)

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Dated: as of August 1, 2022

**<u>GUARANTOR</u>:**

**Inland Private Capital Corporation**, a Delaware corporation

By: <u>/s/ Joseph E. Binder</u> 

Name: <u>Joseph E. Binder</u> 

Title: <u>Executive Vice President</u> 

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## Exhibit 10.21

**Exhibit 10.21**

**sECOND AMENDMENT TO <br><u>LOAN AGREEMENT</u>**

THIS SECOND AMENDMENT TO LOAN AGREEMENT (as amended, restated, replaced, supplemented or otherwise modified from time to time, this "**Amendment**"), dated as of October 24, 2023 (the "**Effective Date**"), between BMO BANK N.A., a national banking association (as successor to BMO Harris Bank N.A.), having an address at 320 South Canal Street, 15th Floor, Chicago, Illinois 60606, as Administrative Agent and the Lender, and MOB Cedar Park, L.L.C., MOB 5255 San Antonio, L.L.C., MOB 9157 San Antonio, L.L.C., MOB Raleigh, L.L.C., MOB 1431 Houston, L.L.C., MOB 1 New Britain, L.L.C., MOB 300 New Britain, L.L.C., MOB Oklahoma City, L.L.C., MOB Peoria, L.L.C., MOB Phoenix, L.L.C., MOB 3855 Gilbert, L.L.C., MOB 700 Chandler, L.L.C., MOB 3686 Gilbert, L.L.C., MOB Kingwood, L.L.C., MOB Garden City, L.L.C., and IPCAAF MOB Portfolio II, L.L.C., each a Delaware limited liability company (individually or collectively, as the context shall require, "**Borrower**" and collectively, the "**Borrowers**"), having an address at 2901 Butterfield Road, Oak Brook, Illinois 60523.

**<u>R E C I T A L S</u>:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.Borrowers, Administrative Agent and Lender entered into a Loan Agreement dated as of September 30, 2021, as amended by First Amendment to Loan Agreement, dated as of August 1, 2022 (as amended from time to time, the "**Loan Agreement**"), whereby Lender has made a loan to Borrower (the "**Loan**") in the principal amount of up to $122,655,000.00 subject to and in accordance with the terms and conditions set forth in the Loan Agreement. The Loan is evidenced by the Promissory Note dated September 30, 2021 (as amended from time to time, the "**Note**") made by Borrowers payable to BMO Harris Bank N.A., the repayment of which is secured by, among other things, certain mortgages, deeds of trust and deeds to secure debt (collectively, the "**Security Instrument**"), each dated September 30, 2021. All capitalized terms not otherwise defined herein shall have the meanings set forth in the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.Borrowers, Administrative Agent and Lender have agreed to amend the Loan Agreement as more particularly set forth herein.

**NOW**, **THEREFORE**, in consideration of the foregoing Recitals, the mutual covenants contained in this Amendment, and for good and valuable consideration, the receipt and sufficiency of which hereby are acknowledged, the parties hereto agree as follows:

1.**<u>Incorporation of Recitals</u>**. The recitals set forth above are hereby incorporated herein by reference as if the same were fully set forth herein.

2.**<u>Representations</u>**. Borrowers represent and warrant to Administrative Agent and Lender that:

(a)No Event of Default has occurred under the Loan Agreement or the Loan Documents, and upon the execution and delivery of this Amendment, no event or condition will exist which, with the giving of notice or the passage of time, or both, would give rise to an Event of Default under the Loan Agreement or Loan Documents.

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(b) All of the representations and warranties of Borrower in the Loan Agreement and the Loan Documents are true and complete on the date hereof in all material respects with the same force and effect as if made on such date.

(c) Borrower has no offsets or defenses to any amounts currently due under the Note or to any current obligations under the Loan Agreement or any other Loan Documents, and the Loan Agreement and Loan Documents are all in full force and effect. Borrower currently has no defenses, claims or setoffs to the enforcement by Administrative Agent and Lender of the Loan Agreement and Loan Documents.

(d) Borrower has the full right, power and authority to execute, deliver and carry out the terms and provisions of this Amendment and the documents and instruments to be executed and delivered by Borrower pursuant to this Amendment. The execution, delivery and performance of this Amendment and all of the documents and instruments to be executed and delivered pursuant hereto have received all necessary approvals, if any, and do not contravene any law or any contractual restrictions binding on Borrower, or constitute a default or create a lien under (i) the limited liability company agreement of Borrower, or (ii) any note, instrument, lease, indenture, mortgage, agreement, document or other obligation of or binding upon Borrower.

(e) This Amendment and the documents and instruments executed and delivered pursuant hereto by Borrower constitute the legal, valid and binding obligation of Borrower, enforceable against Borrower in accordance with their respective terms, except only as enforceability may be subject to applicable bankruptcy, reorganization, moratorium and similar laws affecting the rights of creditors generally.

3.**<u>Consent to Transfer</u>**. Administrative Agent and Lenders consent to the Transfer or Transfers resulting in Inland Real Estate Investment Corporation being the sole initial stockholder of the Inland Fund (as defined below).

4.**<u>Amendments to Loan Agreement</u>**. As of the Effective Date, the Loan Agreement is hereby amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) <u>Inland Fund</u>. The definition of "Inland Fund" in Section 1.1 of the Loan Agreement is hereby amended and restated as follows:

"**Inland Fund**" means IPC Alternative Real Estate Income Trust, Inc., a Maryland corporation (formerly known as Inland Private Capital Alternative Assets Fund, LLC, a Delaware limited liability company)."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) <u>Permitted Transfers</u>. Subsection (h) and (i) of the definition of "Permitted Transfer" in Section 1.1 of the Loan Agreement are hereby amended and restated as follows:

"(h) any issuance or Transfer of [NTD: Now that the Inland Fund is a corporation, this concept of LLC interests is not applicable. If BMO prefers to keep it, that's fine.] capital stock in the Inland Fund pursuant to a public or private offering of securities, provided that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the conditions set forth in clause (b) above are satisfied; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Inland Real Estate Investment Corporation, a Delaware corporation ("**IREIC**") shall directly or indirectly continue to Control the Inland Fund, including indirectly by providing management services pursuant to an advisory agreement with the Inland Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any Transfer of common stock in the Inland Fund to limited partners in the Operating Partnership in exchange for the redemption of limited partnership interests in the Operating Partnership pursuant to the Amended and Restated Limited Partnership Agreement of IPC Alternative Real Estate Operating Partnership, LP, as the same may be amended or restated from time to time, provided that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the conditions set forth in clause (b) above are satisfied; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) IREIC shall directly or indirectly continue to Control the Inland Fund, including indirectly by providing management services pursuant to an advisory agreement with the Inland Fund."

5.**<u>Requirements</u>**. The effectiveness of this Amendment shall be subject to Administrative Agent's receipt, review, approval and/or confirmation of the following on the date hereof, at Borrower's cost, each in form and content satisfactory to Administrative Agent in its reasonable discretion:

(a)<u>Reaffirmation</u>. The Reaffirmation, executed by Guarantors, in the form attached hereto as **Exhibit A.**

(b)<u>Fees and Costs</u>. Borrower shall pay all costs and expenses of any kind or nature of Administrative Agent related to this Amendment and related documents, including, without limitation, Administrative Agent's attorneys' fees and out-of-pocket costs.

(c)<u>Transfer Documents</u>. Borrower shall deliver or cause to be delivered all documents effectuating the Transfer described in Section 3 hereof and the change of the name and status of Inland Fund, and such other documents relating to the transactions contemplated by this Amendment as reasonably requested by Administrative Agent.

(d)<u>Authority</u>. Borrower shall deliver or cause to be delivered to Administrative Agent such organizational and authority documents as reasonably required by Administrative Agent in connection with this Amendment.

6.**<u>Ratification</u>**. Except as amended and modified herein, the Loan Documents remain unmodified and in full force and effect and are hereby ratified and confirmed. Administrative Agent and Lender shall continue to have all of the rights and remedies as provided in the Loan Documents, as amended and modified hereby or pursuant hereto, and all of Administrative Agent's and Lender's liens and security interests shall continue in its collateral, whether now existing or acquired or arising hereafter. Upon the effectiveness of this Amendment, each reference in the Loan Agreement to "the Agreement," "hereunder," "herein," "hereof," or words of like import referring to the Loan Agreement shall mean and be a reference to the Loan Agreement as amended and modified hereby, and all references in the other Loan Documents to the Loan Agreement shall mean such document as amended hereby or pursuant hereto. THE PARTIES HERETO HAVE

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ENTERED INTO THIS AMENDMENT SOLELY TO AMEND THE TERMS OF THE LOAN AGREEMENT. THE PARTIES DO NOT INTEND THIS AMENDMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY TO BE, AND THIS AMENDMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL NOT BE CONSTRUED TO BE, A NOVATION OF ANY OF THE OBLIGATIONS OWING BY THE BORROWERS OR GUARANTOR UNDER OR IN CONNECTION WITH THE LOAN AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS.

7.**<u>No Waiver</u>**. Borrower's execution, delivery and performance of this Amendment and any other documents in connection with this Amendment shall not establish a custom or course of dealing or waive, limit or condition the rights and remedies of Administrative Agent and Lender under the Loan Agreement or any other Loan Document and applicable law, all of which rights and remedies Administrative Agent and Lender expressly reserve.

8.**<u>No Joint Venture</u>**. Borrower hereby acknowledges, agrees and confirms that notwithstanding any other provision of this Amendment or any other Loan Document, neither Administrative Agent nor Lender is a partner, joint venturer, alter-ego, manager, controlling person or other business associate or participant of any kind of Borrower, and neither Administrative Agent nor Lender intends to ever assume any such status.

9.**<u>Waiver and Release of Claims</u>**. Borrower acknowledges and agrees that Borrower does not have any offsets, defenses, claims or counterclaims against Administrative Agent or Lenders or their past and present officers, directors, managers, employees, partners, agents, shareholders, members, trustees, predecessors, successors, and assigns (the "**Released Parties**") with respect to the Loan or the Loan Documents as of the date hereof, and to the extent Borrower has any such claims, Borrower hereby voluntarily and knowingly forever releases, discharges, waives and relinquishes any and all claims, demands, causes of action of every kind and nature whatsoever, whether in law, in equity, known or unknown, against the Released Parties existing on or before the date of this Amendment that relate to, arise out of or otherwise are in connection with: the Loan, the Loan Documents or transactions contemplated thereby or any actions or omissions in connection therewith.

10.**<u>Lien Status</u>**. None of this Amendment, nor any other documents or instruments delivered in connection herewith, constitutes the creation of a new loan or the extinguishment of the debt evidenced by the Note, nor will they in any way affect or impair the lien of the Security Instrument or the other Loan Documents, which Borrower hereby acknowledges to be a valid and existing first priority lien on the Property and on any other collateral described therein. Borrower agrees that the lien of the Security Instrument continues to be in full force and effect, unaffected and unimpaired by this Amendment, and that said lien shall so continue as a first priority lien until the Debt is fully discharged.

11.**<u>Miscellaneous</u>**.

(a)This Amendment shall be governed by, and shall be construed and enforced in accordance with, the laws of the State of Illinois, without regard to conflicts of laws principles.

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(b)If any provision of this Amendment is adjudicated to be invalid, illegal or unenforceable, in whole or in part, it will be deemed omitted to that extent and all other provisions of this Amendment will remain in full force and effect.

(c)This Amendment shall be binding upon and inure to the benefit of the parties and their respective legal representatives, successors and assigns.

(d)This Amendment may be executed in one or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. Signature pages may be detached from such counterparts and reattached to form one original document. Delivery of an executed counterpart of a signature page of this Amendment by telecopier or other electronic transmission (which shall include *"PDF"* or *"TIFF"* format) shall be as effective as delivery of a manually executed counterpart of this Amendment.

**[SIGNATURES ON FOLLOWING PAGE]**

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**IN WITNESS WHEREOF**, the parties hereto have executed this Amendment as of the date first above written.

**<u>BORROWERS</u>:**

MOB CEDAR PARK, L.L.C.,

MOB 5255 SAN ANTONIO, L.L.C.,

MOB 9157 SAN ANTONIO, L.L.C.,

MOB RALEIGH, L.L.C.,

MOB 1431 HOUSTON, L.L.C.,

MOB 1 NEW BRITAIN, L.L.C.,

MOB 300 NEW BRITAIN, L.L.C.,

MOB OKLAHOMA CITY, L.L.C.,

MOB PEORIA, L.L.C.,

MOB PHOENIX, L.L.C.,

MOB 3855 GILBERT, L.L.C.,

MOB 700 CHANDLER, L.L.C.,

MOB 3686 GILBERT, L.L.C.,

MOB KINGWOOD, L.L.C.,

MOB GARDEN CITY, L.L.C., <br>each a Delaware limited liability company

By: IPCAAF MOB Portfolio II, L.L.C., <br>a Delaware limited liability company, its sole member

By: <u>/s/ Joseph E. Binder</u>

Name: <u>Joseph E. Binder</u>

Title: <u>Executive Vice President</u>

IPCAAF MOB PORTFOLIO II, L.L.C., a Delaware limited liability company

By: <u>/s/ Joseph E. Binder</u>

Name: <u>Joseph E. Binder</u>

Title: <u>Executive Vice President</u>

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**<u>ADMINISTRATIVE AGENT and LENDER</u>**:

**BMO BANK N.A.**,

a national banking association

By: <u>/s/ Kyle Dickelman</u><br>Name: <u>Kyle Dickelman</u><br>Title: <u>Vice President</u>

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**<u>EXHIBIT A</u>**

**<u>REAFFIRMATION OF GUARANTY AGREEMENTS</u>**

Reference is hereby made to (i) that certain Loan Agreement dated as of September 30, 2021, as amended by First Amendment to Loan Agreement, dated as of August 1, 2022, and as amended by Second Amendment to Loan Agreement, dated as of the date hereof (the "**Second Amendment**"), between MOB Cedar Park, L.L.C., MOB 5255 San Antonio, L.L.C., MOB 9157 San Antonio, L.L.C., MOB Raleigh, L.L.C., MOB 1431 Houston, L.L.C., MOB 1 New Britain, L.L.C., MOB 300 New Britain, L.L.C., MOB Oklahoma City, L.L.C., MOB Peoria, L.L.C., MOB Phoenix, L.L.C., MOB 3855 Gilbert, L.L.C., MOB 700 Chandler, L.L.C., MOB 3686 Gilbert, L.L.C., MOB Kingwood, L.L.C., MOB Garden City, L.L.C., and IPCAAF MOB Portfolio II, L.L.C., each a Delaware limited liability company (collectively, the "**Borrowers**"), and BMO Bank N.A. (as successor to BMO Harris Bank N.A.), as Administrative Agent and a Lender (as amended from time to time, the "**Loan Agreement**"), and (ii) the following documents: the Guaranty and the Environmental Indemnity (as each such term is defined in the Loan Agreement, and collectively, the "**Guaranty Agreements**").

The undersigned hereby consents to the Second Amendment and hereby acknowledges and agrees that the Guaranty Agreements to which it is a party are each ratified and confirmed, shall continue in full force and effect and that the undersigned, as of the date hereof, has no claims, defenses, off-sets or counterclaims to or against the enforcement of such agreements in accordance with their respective terms by Administrative Agent and Lenders.

(Signatures on Following Page)

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Dated: as of October 24, 2023

**<u>GUARANTOR</u>:**

**Inland Private Capital Corporation**, a Delaware corporation

By: <u>/s/ Joseph E. Binder</u>

Name: <u>Joseph E. Binder</u>

Title: <u>Executive Vice President</u>

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## Exhibit 10.22

**Exhibit 10.22**

**<u>JOINDER AGREEMENT & THIRD AMENDMENT TO LOAN AGREEMENT</u>**

This JOINDER AGREEMENT & THIRD AMENDMENT TO LOAN AGREEMENT (this "**Agreement**") is made as of this 23rd day of February, 2024, by and among each of the entities listed on <u>Exhibit A</u> attached hereto (collectively, the "**Existing Borrowers**") and BMO BANK N.A., a national banking association, as Administrative Agent (as successor to BMO Harris Bank N.A.) (together with its successors and assigns, "**Administrative Agent**") on behalf of itself and the Lenders, and [MOB West Jordan, L.L.C., a Delaware limited liability company] (the "**Joining Borrower**" and, together with the Existing Borrowers, the "**Borrower**").

RECITALS

WHEREAS, the Existing Borrowers, Administrative Agent and BMO Bank N.A., as the initial lender (together with such other lenders that may be a party to the Loan Agreement from time to time, the "**Lenders**") are parties to (i) that certain Loan Agreement, dated as of September 30, 2021 as amended by that certain First Amendment to Loan Agreement dated as of August 1, 2022, and as further amended by that certain Second Amendment to Loan Agreement dated as of October 23, 2023 (as amended, joined, restated, supplemented or otherwise modified from time to time, the "**Loan Agreement**"), and (ii) each other document listed on <u>Schedule 1</u> hereto (together with the Loan Agreement, as amended, joined, restated, supplemented or otherwise modified from time to time, the "**Loan Documents**"), whereby Lenders made a loan to Existing Borrowers in the principal amount of up to $122,655,000.00 (the "**Loan**");

WHEREAS, Joining Borrower is an affiliate of the Existing Borrowers under common indirect ownership and the Joining Borrower benefited from and will continue to benefit from the Loan;

WHEREAS, in connection with Borrower's ability to continue to satisfy certain financial and other covenants set forth in the Loan Agreement, the parties hereto each desire to add the Joining Borrower as a Borrower under the Loan Documents, as set forth in this Agreement; and

WHEREAS, the parties hereto agree that as of the Effective Date (as defined below), the Joining Borrower shall be a Borrower under the Loan Documents, as more specifically provided herein.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Defined Terms</u>. Any terms capitalized but not otherwise defined herein shall have the respective meanings set forth in the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Joinder to Loan Agreement</u>. Without relieving the Existing Borrowers of any of their obligations and liabilities under the Loan Agreement, effective as of the Effective Date, the Joining Borrower joins in and agrees to be bound by all of the terms and provisions of the Loan Agreement and in each instance become a party to the Loan Agreement as a "Borrower" thereunder with the same effect as if it was an original signatory to the Loan Agreement. The Joining Borrower hereby expressly assumes all obligations and liabilities of "Borrower" under the Loan Agreement.

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The Joining Borrower hereby agrees that this Agreement may be attached to the Loan Agreement. All obligations of the Existing Borrowers and the Joining Borrower pursuant to the Loan Agreement shall be joint and several.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Joinder to Note</u>. Without relieving the Existing Borrowers of any of their obligations and liabilities under the Note, effective as of the Effective Date, the Joining Borrower joins in and agrees to be bound by all of the terms and provisions of the Note and in each instance become a party to the Note as a co-borrower and co-obligor thereunder and maker thereof with the same effect as if it was an original signatory to the Note. The Joining Borrower hereby expressly assumes all obligations and liabilities of "Borrower" under the Note. All obligations of the Existing Borrowers and the Joining Borrower pursuant to the Note shall be joint and several.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<u>Joinder to Other Loan Documents</u>. Without relieving the Existing Borrowers of any of their obligations and liabilities under the other Loan Documents to which they are a party, effective as of the Effective Date, the Joining Borrower joins in and agrees to be bound by all of the terms and provisions of the Loan Documents to which the Existing Borrowers are a party (excluding the Security Instrument and Assignment of Leases and Rents to which the Existing Borrowers are a party (other than any Security Instrument and Assignment of Leases and Rents to which Joining Borrower is a party) (collectively, the "**Joined Loan Documents**")) and in each instance become a party to the Joined Loan Documents as a co-borrower thereunder with the same effect as if it was an original signatory to the Joined Loan Documents. The Joining Borrower hereby expressly assumes all obligations and liabilities of a co-borrower under the Joined Loan Documents and a co-indemnitor with respect to the Environmental Indemnity, including any terms relating to (a) the grant of a security interest in the Property, (b) the compliance with all covenants as set forth in the Loan Agreement and each other Joined Loan Document, (c) indemnities applicable to a Borrower and (d) each Event of Default set forth in Section 10.1 of the Loan Agreement. The Joining Borrower hereby makes each of the covenants and agreements made by a Borrower under the Loan Agreement and each other Joined Loan Document, as if each such covenant was set forth herein, *mutatis mutandis*. All obligations of the Existing Borrowers and the Joining Borrowers pursuant to the Joined Loan Documents shall be joint and several.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.<u>Representations</u>. Each Existing Borrower hereby represents and warrants to Administrative Agent and Lenders that the representations and warranties made by each Borrower in the Loan Documents to which it is a party (including, without limitation, Article III of the Loan Agreement and Section 1 of the Environmental Indemnity) are true and correct in all material respects, in each case, as of the date hereof, excluding representations and warranties that were made as of a specific date, and subject to any changes in facts or circumstances permitted to have occurred, or not prohibited from having occurred, pursuant to the terms of the Loan Documents (in which case such change of facts and circumstances are set forth on Schedule 2 attached hereto, which such schedule contains reference to the applicable representation(s) and warranty(ies) or sets forth any exceptions to such representations and warranties). Except as described in the Exception Report attached hereto as <u>Schedule 2</u>, Joining Borrower hereby makes, with respect to itself and the individual Property of such Joining Borrower (the "**Joining Individual Property**"), as of the date hereof (unless such representation or warranty is made on and as of the Closing Date under the Loan Agreement, in which case, as of the date hereof), all of the representations and warranties that are applicable to an individual Borrower that are set forth in the Loan Documents (including, without limitation, Article III of the Loan Agreement and Section 1 of the

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Environmental Indemnity), which representations are true and correct in all respects, in each case, as of the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.<u>Amendment to Exhibits and Schedules to the Loan Agreement</u>. As of the Effective Date, (a) <u>Exhibit A</u> (Legal Description of the Property) attached to the Loan Agreement is hereby supplemented with the legal description of the Joining Individual Property as set forth on <u>Exhibit A Supplement to the Loan Agreement</u> attached hereto and (b) <u>Schedule 8</u> (List of Individual Properties and Owners) attached to the Loan Agreement is hereby deleted in its entirety and replaced with <u>Schedule 8 to the Loan Agreement</u> attached hereto:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.<u>Definitions</u>. As of the Effective Date, the following definitions as set forth in Section 1.1 of the Loan Agreement are hereby deleted in their entirety and replaced with the following, as applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)"**<u>Assignment of Interest Rate Cap Agreement</u>**. that certain Assignment of Interest Rate Cap Agreement, dated as of the date hereof, by Holdings Borrower in favor of Administrative Agent, as assignee, for the benefit of the Lenders, and consented to by the Counterparty to the Interest Rate Cap Agreement, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)"**<u>Deposit Bank</u>**: BMO Bank N.A., a national banking association, in its capacity as agent under the Deposit Account Control Agreement and any successor Eligible Institution thereto."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)"**<u>Ground Lease</u>**: Collectively, (I) that certain Arizona State Department Commercial Lease No. 03-109554-99 dated as of June 15, 2004, by and between The State of Arizona, as Trustee, through the State Land Commissioner, as landlord, and NPP1, LLC, an Arizona limited liability company, as tenant; as assigned to Ryan Desert Ridge, LLC, a Minnesota limited liability company pursuant to that certain Assignment and Assumption of Lease dated November 30, 2004, and recorded on November 30, 2004, as Instrument No. 2004-1399939 in the Official Records of Maricopa County ("**Official Records**"); as further assigned to Ryan Companies US, Inc., a Minnesota corporation pursuant to that certain Assignment and Assumption of Lease dated December 22, 2004, and recorded on December 22, 2004, as Instrument No. 2004-1507842 in the Official Records; as amended by that certain Amendment to Arizona State Department Commercial Lease No. 03-109554-99 dated December 3, 2007, and recorded on December 4, 2007, as Instrument No. 2007-1279677 in the Official Records; as further amended by that certain Amendment to Arizona State Land Department Commercial Lease No. 03-109554-99 dated April 16, 2014; as further assigned to 4425 East Irma Lane, LLC, a Delaware limited liability company pursuant to that certain Assignment and Assumption of Lease dated March 23, 2017, as further assigned to Arizona Healthcare DST, a Delaware statutory trust pursuant to that certain Assignment and Assumption of Lease dated June 6, 2018; and as further

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assigned to MOB Phoenix, L.L.C. ("**Phoenix Borrower**") pursuant to that certain Assignment and Assumption of Lease dated on or about the date hereof ("**Borrower's Ground Lease Assumption**") (collectively, the "**Phoenix Ground Lease**"); and (II) that certain Ground Lease dated as of October 8, 2015, by and between Jordan Valley Medical Center, LP, a Delaware limited partnership (as predecessor-in-interest to Catholic Health Initiatives Colorado, a Colorado nonprofit corporation), as lessor, and MOB West Jordan, L.L.C., a Delaware limited liability company (as successor by merger to Healthcare Portfolio II DST, a Delaware statutory trust) ("**Jordan Valley Borrower**"), assignee of RW JVCC, LLC, a Utah limited liability company, as lessee, pursuant to that certain Assignment and Assumption of Leases dated as of January 23, 2017 (collectively, the "**Jordan Valley Ground Lease**")."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)"**<u>Ground Lease Estoppel</u>**: that certain (I) Ground Lease Estoppel Certificate, dated as of September 2, 2021, by Phoenix Ground Lease Lessor in favor of Phoenix Borrower and Administrative Agent and (II) Ground Lease Estoppel Certificate, dated as of [_________], 2024, by Jordan Valley Ground Lease Lessor in favor of Jordan Valley Borrower and Administrative Agent."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)"**<u>Ground Lease Lessor</u>**: Collectively and/or individually as the context may require, (I) State of Arizona, as Trustee, through the State Land Commissioner ("**Phoenix Ground Lease Lessor**") and (II) Jordan Valley Medical Center, LP a Delaware limited partnership ("**Jordan Valley Ground Lease Lessor**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)"**<u>Ground Lease Property</u>**: Collectively and/or individually as the context may require, (I) the Individual Property leased by Phoenix Borrower pursuant to the Phoenix Ground Lease and located at 4375 E. Irma Lane, Phoenix, Arizona, and (II) the Individual Property leased by Jordan Valley Borrower pursuant to the Jordan Valley Ground Lease and located at 3592 West 9000 South, West Jordan, Utah 84088."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)"**<u>Ground Lease Tenant</u>**: Collectively and/or individually as the context may require, (I) Phoenix Borrower and (II) Jordan Valley Borrower."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)"**<u>Property</u>**: individually or collectively, as the context requires, each Individual Property or the Individual Properties, comprised in the aggregate of sixteen (16) medical office buildings containing approximately 443,637 square feet of space, but excluding any Individual Property that is subject to a Partial Release pursuant to <u>Section 2.8</u> from and after the date of such Partial Release, and including any property that is a Replacement Individual Property pursuant to <u>Section 2.9</u> from and after the date of such Partial Substitution."

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.<u>Release of Individual Properties</u>. Notwithstanding anything to the contrary in Section 2.8 of the Loan Agreement, the Joining Borrower and the Joining Individual Property may only be released from the Loan Documents and the Lien of the applicable Security Instrument encumbering the Joining Individual Property upon the prior written consent of the Administrative Agent in its sole and absolute discretion (including, without limitation, subject to such conditions as determined by the Administrative Agent in its sole discretion, including a partial repayment of the Loan, payment of the Prepayment Fee (if applicable) and any other requirements of Administrative Agent).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.<u>Effective Date</u>. This Agreement shall become effective on the first date on which the parties hereto have duly executed this Agreement and Guarantor has duly executed the Reaffirmation of Guaranty in the form attached hereto (such date being the "**Effective Date**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.<u>Borrower Certification</u>. Joining Borrower hereby certifies to Administrative Agent, that the rent roll for the Joining Individual Property attached hereto as <u>Exhibit B</u> is true, correct and accurate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.<u>No Default</u>. The Existing Borrowers and the Joining Borrower hereby certify that no Default or Event of Default exists and is continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.<u>Joining Borrower</u>. The Joining Borrower's exact legal name is correctly set forth in the first paragraph of this Agreement. On the Effective Date, the Joining Borrower's principal place of business is located at 2901 Butterfield Road, Oak Brook, Illinois 60523. On the Effective Date, the Joining Borrower's jurisdiction of organization is the State of Delaware, Joining Borrower is in good standing in the State of Delaware, and the Joining Borrower is qualified to do business and is in good standing in the State of Utah. <u>Schedule 3</u> attached hereto sets forth as of the Effective Date the ownership structure for the Borrower and each of its direct equity holders and is true and correct in all respects as of the Effective Date and shall replace Schedule 3.1.1 to the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.<u>Joint and Several Liability</u>. Notwithstanding anything in the Loan Documents to the contrary, each Borrower hereby acknowledges and agrees that Borrowers are jointly and severally liable to Administrative Agent and Lenders pursuant to Article XIII of the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.<u>Further Assurances</u>. The parties hereto shall each take any and all further actions and execute and deliver any and all such further documents and undertakings as are necessary or reasonably requested by the other party to effectuate the purposes of this Agreement in accordance with the Loan Agreement. The undertakings set forth in this <u>Section 14</u> shall survive the execution and delivery of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.<u>Fees and Expenses</u>. Borrowers agree to pay to Administrative Agent all reasonable third-party out-of-pocket fees, costs and expenses incurred by Administrative Agent in connection with this Agreement (including reasonable out-of-pocket fees, costs and expenses of Administrative Agent's legal counsel incurred in connection with this Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.<u>Limited Effect</u>. Except as expressly supplemented by this Agreement, each of the Loan Documents shall continue in full force and effect in accordance with its terms. Reference to this Agreement need not be made in any Loan Document or any other instrument or document

------

executed in connection therewith or herewith, or in any certificate, letter or communication issued or made pursuant to, or with respect to, any Loan Document, any reference in any of such items to any Loan Document being sufficient to refer to such Loan Document as supplemented hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.<u>Successors and Assigns</u>. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.<u>GOVERNING LAW</u>. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF ILLINOIS IN ACCORDANCE WITH SECTION 12.2 OF THE LOAN AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.<u>Counterparts</u>. This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. Signatures by facsimile or by electronic mail delivery of an electronic version (e.g., .pdf or .tif file) of an executed signature page shall bind the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.<u>Notices</u>. The parties hereto acknowledge and agree that the address of Joining Borrower and Existing Borrower for receiving notices and for all other purposes of the Loan Documents is the same as set forth for the Borrower in Section 12.6 of the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.<u>Ratification</u>. Except as amended and modified herein, the Loan Documents remain unmodified and in full force and effect and are hereby ratified and confirmed. Administrative Agent and Lender shall continue to have all of the rights and remedies as provided in the Loan Documents, as amended and modified hereby or pursuant hereto, and all of Administrative Agent's and Lender's liens and security interests shall continue in its collateral, whether now existing or acquired or arising hereafter. Upon the effectiveness of this Amendment, each reference in the Loan Agreement to "the Agreement," "hereunder," "herein," "hereof," or words of like import referring to the Loan Agreement shall mean and be a reference to the Loan Agreement as amended and modified hereby, and all references in the other Loan Documents to the Loan Agreement shall mean such document as amended hereby or pursuant hereto. THE PARTIES HERETO HAVE ENTERED INTO THIS AGREEMENT SOLELY TO AMEND THE TERMS OF THE LOAN AGREEMENT. THE PARTIES DO NOT INTEND THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY TO BE, AND THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL NOT BE CONSTRUED TO BE, A NOVATION OF ANY OF THE OBLIGATIONS OWING BY ANY BORROWER OR GUARANTOR UNDER OR IN CONNECTION WITH THE LOAN AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS. The Existing Borrowers and Joining Borrowers, as of the date hereof, have no claims, defenses, off-sets or counterclaims to or against the enforcement of the Loan Documents in accordance with their respective terms by Administrative Agent and Lenders.

[Signature page to follow]

------

IN WITNESS WHEREOF, the parties hereto have caused their duly authorized officers to execute this Agreement as of the date first above written.

**ADMINISTRATIVE AGENT (on behalf of itself and the Lenders):**

BMO BANK N.A., a national banking association, as Administrative Agent

By: <u>/s/ Kyle Dickelman</u> <br> Name: <u>Kyle Dickelman</u> <br>Title: <u>Vice President</u> 

[*Signatures continue on following page*.]

------

**EXISTING BORROWERS:**

MOB Cedar Park, L.L.C.,

MOB 5255 San Antonio, L.L.C.,

MOB 9157 San Antonio, L.L.C.,

MOB Raleigh, L.L.C.,

MOB 1431 Houston, L.L.C.,

MOB 1 New Britain, L.L.C.,

MOB 300 New Britain, L.L.C.,

MOB Oklahoma City, L.L.C.,

MOB Peoria, L.L.C.,

MOB Phoenix, L.L.C.,

MOB 3855 Gilbert, L.L.C.,

MOB 700 Chandler, L.L.C.,

MOB 3686 Gilbert, L.L.C.,

MOB Kingwood, L.L.C., and

MOB Garden City, L.L.C.,

each a Delaware limited liability company

By: IPCAAF MOB Portfolio II, L.L.C., a Delaware limited liability company, its sole member

By: <u>/s/ Joseph E. Binder</u>

Name: <u>Joseph E. Binder</u><br>Title: <u>Executive Vice President</u> 

IPCAAF MOB PORTFOLIO II, L.L.C, a Delaware limited liability company

By: <u>/s/ Joseph E. Binder</u>

Name: <u>Joseph E. Binder</u>

Title: <u>Executive Vice President</u> 

[*Signatures continue on following page*.]

------

**JOINING BORROWER:**

MOB WEST JORDAN, L.L.C., a Delaware limited liability company

By: IPCAAF MOB Portfolio II, L.L.C., a Delaware limited liability company, its sole member

By: <u>/s/ Joseph E. Binder</u>

Name: <u>Joseph E. Binder</u>

Title: <u>Executive Vice President</u>

------

**<u>REAFFIRMATION OF GUARANTY</u>**

The undersigned (on behalf of itself and its successors and assigns) hereby acknowledges and approves the foregoing Joinder Agreement & Third Amendment to Loan Agreement and reaffirms its obligations under that certain Guaranty, dated as of September 30, 2021 and that certain Environmental Indemnity Agreement, dated as of September 30, 2021 (collectively, the "**Guaranty Agreements**") and agrees that such Guaranty Agreements and its obligations thereunder shall continue and remain in full force and affect in accordance with its terms with respect to each Borrower and their respective Individual Property as well as from and after the date hereof, the Joining Borrower and the Joining Individual Property. Any terms capitalized but not otherwise defined shall have the respective meanings set forth in the Joinder Agreement. The undersigned, as of the date hereof, has no claims, defenses, off-sets or counterclaims to or against the enforcement of the Guaranty Agreements in accordance with their respective terms by Administrative Agent and Lenders, and agrees to be bound by the Joinder Agreement and Third Amendment to Loan Agreement. Although the undersigned has been informed of the matters set forth herein and has acknowledged and agreed to the same, the undersigned understands that Administrative Agent and Lenders do not have any obligation to inform the undersigned of such matters in the future or to seek the undersigned's acknowledgment or agreement to future amendments, waivers or consents, and nothing herein creates such a duty.

Dated: February 23, 2024

**<u>GUARANTOR</u>:**

**INLAND PRIVATE CAPITAL CORPORATION**, a Delaware corporation

By: <u>/s/ Joseph E. Binder</u> <br> Name: <u>Joseph E. Binder</u><br> Title: <u>Executive Vice President</u>

------

**<u>Exhibit A Supplement to the Loan Agreement</u>**

**<u>Legal Description of the Individual Joining Property</u>**

PARCEL 1: (27-05-251-025)

LOT 1, JORDAN VALLEY MEDICAL CENTER, ACCORDING TO THE OFFICIAL PLAT THEREOF AS RECORDED NOVEMBER 3, 2015 AS ENTRY NUMBER 12164134 IN BOOK 2015P AT PAGE 252 IN THE OFFICE OF THE SALT LAKE COUNTY RECORDER.

ALSO KNOWN AS: A PART OF THE NORTHEAST QUARTER OF SECTION 5, TOWNSHIP 3 SOUTH, RANGE 1 WEST, SALT LAKE BASE & MERIDIAN, U.S. SURVEY WEST JORDAN CITY, SALT LAKE COUNTY, UTAH;

BEGINNING AT A POINT WHICH IS 2537.92 FEET NORTH 89°13'35" WEST ALONG THE SECTION LINE AND 956.13 FEET NORTH 0°46'23" EAST FROM THE EAST QUARTER CORNER OF SAID SECTION 5, AND RUNNING THENCE DUE NORTH 106.77 FEET; THENCE DUE EAST 61.72 FEET; THENCE DUE NORTH 17.44 FEET; THENCE DUE EAST 50.08 FEET; THENCE DUE SOUTH 17.44 FEET; THENCE DUE EAST 84.37 FEET; THENCE DUE SOUTH 106.77 FEET; THENCE DUE WEST 196.17 FEET TO THE POINT OF BEGINNING.

PARCEL 1A:

NON-EXCLUSIVE EASEMENTS FOR INGRESS AND EGRESS FOR ACCESS, PARKING AND DRAINAGE, ACCEPTANCE AND RETENTION OF STORM WATER AND OTHER NATURALLY OCCURRING SURFACE WATERS AS DISCLOSED IN THE EASEMENT AGREEMENT DATED OCTOBER 8, 2015 AND RECORDED OCTOBER 12, 2015 AS ENTRY NO. 12149319 IN BOOK 10369 AT PAGE 5143. SAID EASEMENT AGREEMENT HAVING BEEN AMENDED BY THE FIRST AMENDMENT TO EASEMENT AGREEMENT DATED JANUARY 23, 2017 AND RECORDED FEBRUARY 1, 2017 AS ENTRY NUMBER 12467137 IN BOOK 10525 AT PAGE 9160.<br>

PARCEL 1B:<br>NON-EXCLUSIVE EASEMENTS FOR INGRESS AND EGRESS FOR ACCESS, PARKING AND DRAINAGE, ACCEPTANCE AND RETENTION OF STORM WATER AND OTHER NATURALLY OCCURRING SURFACE WATERS AS DISCLOSED IN THE EASEMENT AGREEMENT DATED OCTOBER 8. 2015 AND RECORDED OCTOBER 23, 2015 AS ENTRY NO. 12156790 IN BOOK 10372 AT PAGE 9107.<br>

PARCEL 1C:<br>A MUTUAL, RECIPROCAL, AND NON-EXCLUSIVE EASEMENT AND RIGHT-OF-WAY FOR PARKING USE AS DISCLOSED IN THE RECIPROCAL GRANT OF PARKING EASEMENT DATED DECEMBER 19, 1983 AND RECORDED DECEMBER 29, 1983 AS ENTRY NO. 3886627 IN BOOK 5518 AT PAGE 2199 AND RE-RECORDED MARCH 19, 1984 AS ENTRY NUMBER 3918077, IN BOOK 5539 AT PAGE 2760.<br>

SITUATE IN SALT LAKE COUNTY, STATE OF UTAH.

91996503.4 ------

**<u>Schedule 8 to the Loan Agreement</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Borrower** | &nbsp;&nbsp;&nbsp;**Property** | **Address** | **City** | **State** |
| &nbsp;&nbsp;&nbsp;MOB Cedar Park, L.L.C.<br>| &nbsp;&nbsp;&nbsp;Baylor Scott & White Emergency | 900 East Whitestone Blvd. | Cedar Park | TX |
| &nbsp;&nbsp;&nbsp;MOB 300 New Britain, L.L.C.<br>| &nbsp;&nbsp;&nbsp;Starling Physicians - Kensington | 300 Kensington Ave. | New Britain | CT |
| &nbsp;&nbsp;&nbsp;MOB 1 New Britain, L.L.C.<br>| &nbsp;&nbsp;&nbsp;Staring Physicians - Lake Street | One Lake St | New Britain | CT |
| &nbsp;&nbsp;&nbsp;MOB 1431 Houston, L.L.C.<br>| &nbsp;&nbsp;&nbsp;Memorial Hermann Convenient Care Center | 1431 Studemont St. | Houston | TX |
| &nbsp;&nbsp;&nbsp;MOB Oklahoma City, L.L.C.<br>| &nbsp;&nbsp;&nbsp;Surgical Hospital of OK | 100 S.E. 59th St. | Oklahoma City | OK |
| &nbsp;&nbsp;&nbsp;MOB 700 Chandler, L.L.C.<br>| &nbsp;&nbsp;&nbsp;Ironwood Physicians 3 | 700 West Warner Rd. | Chandler | AZ |
| &nbsp;&nbsp;&nbsp;MOB 3855 Gilbert, L.L.C.<br>| &nbsp;&nbsp;&nbsp;Ironwood Physicians 5 - Gilbert | 3855 South Val Vista Dr. | Gilbert | AZ |
| &nbsp;&nbsp;&nbsp;MOB 3686 Gilbert, L.L.C. | &nbsp;&nbsp;&nbsp;Ironwood Physicians 4 - Gilbert | 3686 South Rome St. | Gilbert | AZ |
| &nbsp;&nbsp;&nbsp;MOB Peoria, L.L.C. | &nbsp;&nbsp;&nbsp;Honor Health | 10230 W Happy Valley Pkwy. | Peoria | AZ |
| &nbsp;&nbsp;&nbsp;MOB Phoenix, L.L.C.<br>| &nbsp;&nbsp;&nbsp;Banner Health | 4375 E. Irma Ln | Phoenix | AZ |
| &nbsp;&nbsp;&nbsp;MOB Raleigh, L.L.C.<br>| &nbsp;&nbsp;&nbsp;UNC Rex Cancer Center | 117 Sunnybrook Rd. | Raleigh | NC |
| &nbsp;&nbsp;&nbsp;MOB 9157 San Antonio, L.L.C. | &nbsp;&nbsp;&nbsp;Medical Center Ophthalmology Associates | 9157 Huebner Rd. | San Antonio | TX |
| &nbsp;&nbsp;&nbsp;MOB 5255 San Antonio, L.L.C.<br>| &nbsp;&nbsp;&nbsp;San Antonio Specialty Surgery Center | 5255 Prue Rd. | San Antonio | TX |
| &nbsp;&nbsp;&nbsp;MOB Kingwood, L.L.C. | &nbsp;&nbsp;&nbsp;Memorial Hermann Convenient Care Center | 4533 Kingwood Dr. | Kingwood | TX |
| &nbsp;&nbsp;&nbsp;MOB Garden City, L.L.C. | &nbsp;&nbsp;&nbsp;NYU Langone Radiology | 224 7th St. | Garden City | NY |
| &nbsp;&nbsp;&nbsp;MOB West Jordan, L.L.C. | &nbsp;&nbsp;&nbsp;Jordan Valley Medical Center | 3592 West 9000 South | West Jordan | UT |

---

91996503.4 ------

**<u>EXHIBIT A (to Joinder)</u>**

**<u>Existing Borrowers</u>**

MOB Cedar Park, L.L.C.

MOB 5255 San Antonio, L.L.C.

MOB 9157 San Antonio, L.L.C.

MOB Raleigh, L.L.C.

MOB 1431 Houston, L.L.C.

MOB 1 New Britain, L.L.C.

MOB 300 New Britain, L.L.C.

MOB Oklahoma City, L.L.C.

MOB Peoria, L.L.C.

MOB Phoenix, L.L.C.

MOB 3855 Gilbert, L.L.C.

MOB 700 Chandler, L.L.C.

MOB 3686 Gilbert, L.L.C.

MOB Kingwood, L.L.C.

MOB Garden City, L.L.C., and

IPCAAF MOB Portfolio II, L.L.C.,

each a Delaware limited liability company

91996503.4 ------

**<u>EXHIBIT B (to Joinder)</u>**

**<u>Rent Roll for Joining Individual Property</u>**

See attached.

91996503.4 ------

**<u>SCHEDULE 1 (to Joinder)</u>**

**LOAN DOCUMENTS OTHER THAN LOAN AGREEMENT**

All Loan Documents are dated as of September 30, 2021 unless otherwise indicated below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Promissory Note;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Environmental Indemnity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Fee Letter; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.All other documents now or heretofore executed and/or delivered by the Existing Borrowers in connection with the Loan, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.

Schedule 1-1

91996503.4 ------

**<u>SCHEDULE 2 (to Joinder)</u>**

**<u>Exception Report</u>**

On January 17, 2024, a notice of default was delivered to Surgical Hospital of Oklahoma, L.L.C., an Oklahoma limited liability company, as Tenant under that certain Amended and Restated Lease Agreement dated March 15, 2017 ("Lease") arising from Tenant's failure to fulfill its obligation to pay rent when due under the Lease.

Schedule 2-1

91996503.4 ------

**<u>SCHEDULE 3 (to Joinder)</u>**

**<u>Organizational Chart</u>**

See attached.

Schedule 3-1

91996503.3 ------

![img128977235_0.jpg](img128977235_0.jpg)

Structure Diagram As of 1/31/2024 IPC Alternative Real Estate Advisor, LLC ("Business Manager")

a Delaware LLC Indirect subsidiary of Inland Real Estate Investment Corporation IPC Alternative Real Estate Income Trust, Inc. ("Fund") a Maryland corporation General Partner of the OP Ownership held by stockholders Operated under the direction of its board of directors Except as otherwise shown hereon, at the time of the financing, there will be no foreign investor with direct/indirect ownership of any Borrower in excess of 10% and no foreign or domestic investor with direct/indirect ownership of any Borrower in excess of 20%. Limited Partners Unit Holders IPC Alternative Real Estate Operating Partnership, LP ("OP") a Delaware limited partnership IPCAAF MOB Portfolio I, L.L.C. ("HoldCo I") a Delaware LLC OP as its Sole Member IPCAAF MOB Portfolio II, L.L.C. ("HoldCo II") a Delaware LLC OP as its Sole Member BMO BANK N.A., a national banking association together with its participants, successors and assigns Special Purpose Entity Borrowers Wholly Owned by HoldCo II\*

MOB Cedar Park, L.L.C.; MOB 5255 San Antonio, L.L.C.; MOB 9157 San Antonio, L.L.C.; MOB Raleigh, L.L.C.; MOB 1431 Houston, L.L.C.; MOB 1 New Britain, L.L.C.; MOB 300 New Britain, L.L.C.; MOB Oklahoma City, L.L.C.; MOB Peoria, L.L.C.; MOB Phoenix, L.L.C.; MOB 3855 Gilbert, L.L.C.; MOB 700 Chandler, L.L.C.; MOB 3686 Gilbert, L.L.C.; MOB Kingwood, L.L.C.; MOB Garden City, L.L.C.; MOB West Jordan, L.L.C.

------

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION**

I, Denise C. Kramer, certify that:

1. I have reviewed this Annual Report on Form 10-K of **IPC Alternative Real Estate Income Trust, Inc**.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
|  | /s/ Denise C. Kramer |
| Name: | Denise C. Kramer |
| Title: | Chief Executive Officer<br>(Principal Executive Officer) |
| Date: | March 18, 2026 |

---

------

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION**

I, Jerry Kyriazis, certify that:

1. I have reviewed this Annual Report on Form 10-K of **IPC Alternative Real Estate Income Trust, Inc.**;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
|  | /s/ Jerry Kyriazis |
| Name: | Jerry Kyriazis |
| Title: | Chief Financial Officer |
|  | (Principal Financial Officer and Principal Accounting Officer) |
| Date: | March 18, 2026 |

---

------

## Exhibit 32.1

**Exhibit 32.1**

**Certification Pursuant to**

**18 U.S.C. Section 1350, as Adopted Pursuant to**

**Section 906 of the Sarbanes-Oxley Act of 2002**

In connection with the Annual Report on Form 10-K of **IPC Alternative Real Estate Income Trust, Inc.** (the "Company") for the fiscal year ended December 31, 2025, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), Denise C. Kramer, Chief Executive Officer of the Company, certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of her knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
| Date: March 18, 2026 | By: | /s/ Denise C. Kramer |
|  | Name: | Denise C. Kramer |
|  | Title: | Chief Executive Officer |
|  |  | (Principal Executive Officer) |

---

This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended. A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

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## Exhibit 32.2

**Exhibit 32.2**

**Certification Pursuant to**

**18 U.S.C. Section 1350, as Adopted Pursuant to**

**Section 906 of the Sarbanes-Oxley Act of 2002**

In connection with the Annual Report on Form 10-K of **IPC Alternative Real Estate Income Trust, Inc.** (the "Company") for the fiscal year ended December 31, 2025, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), Jerry Kyriazis, Chief Financial Officer of the Company, certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of his knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

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| | | |
|:---|:---|:---|
| Date: March 18, 2026 | By: | /s/ Jerry Kyriazis |
|  | Name: | Jerry Kyriazis |
|  | Title: | Chief Financial Officer |
|  |  | (Principal Financial Officer and Principal Accounting Officer) |

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This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended. A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

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